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GENERAC Generac Reports Record First Quarter 2021 Results April 29 , 2021 2021 outlook substantially increased due to broad - based strength across the business driven by further acceleration of residential product demand , recovering C & l markets , and strong operational execution WAUKESHA , Wis . , April 29 , 2021 ( GLOBE NEWSWIRE ) -- Generac Holdings Inc. ( NYSE : GNRC ) ( " Generac " or the " Company " ) , a leading global designer and manufacturer of energy technology solutions and other power products , today reported financial results for its first quarter ended March 31 , 2021 and provided an update on its outlook for the full year 2021 . First Quarter 2021 Highlights • Net sales increased 70 % to a record $ 807 million during the first quarter of 2021 as compared to $ 476 million in the prior - year first quarter . Core sales growth , which excludes both the impact of acquisitions and foreign currency , increased approximately 67 % . • Residential product sales more than doubled to $ 542 million as compared to $ 258 million last year , representing a 110 % increase . • Commercial & Industrial ( " C & I " ) product sales increased 18 % to $ 202 million as compared to $ 172 million in the prior year . • Net income attributable to the Company during the first quarter was $ 149 million , or $ 2.33 per share , as compared to $ 44 million , or $ 0.68 per share , for the same period of 2020 . • . Adjusted net income attributable to the Company , as defined in the accompanying reconciliation schedules , was a record $ 153 million , or $ 2.38 per share , as compared to $ 55 million , or $ 0.87 per share , in the first quarter of 2020 . Adjusted EBITDA before deducting for noncontrolling interests , as defined in the accompanying reconciliation schedules , was a record $ 214 million , or 26.5 % of net sales , as compared to $ 86 million , or 18.1 % of net sales , in the prior year . • Cash flow from operations was $ 153 million , a record for the first quarter of a year , as compared to $ 11 million in the prior year . Free cash flow , as defined in the accompanying reconciliation schedules , was a record for a first quarter of $ 126 million as compared to ( $ 1 million ) for 2020. The substantially higher cash flow was primarily due to higher net income and a lower level of working capital investment in the current year quarter , which was partially offset by higher capital expenditures relative to the prior year quarter . • The Company is increasing its full - year 2021 net sales guidance to now be approximately 40 to 45 % growth compared to the prior year , which is an increase from the 25 to 30 % previously expected . Adjusted EBITDA margin , before deducting for non - controlling interests , is now expected to be approximately 24.5 to 25.5 % , which is an increase from the 24.0 to 25.0 % previously expected . " Our first quarter results continue to demonstrate the power of Generac's business model and the fantastic execution by our team as our revenue grew at a tremendous 70 % rate to over $ 800 million , driving a significant increase in adjusted EBITDA margins . The revenue performance represents an all - time record despite the seasonally lower first - quarter time period , " said Aaron Jagdfeld , President and Chief Executive Officer . " Growth was broad based led by a dramatic increase for home standby generators that more than doubled compared to prior year given the powerful mega trends that are driving incredible demand for these products . " Ⓡ Jagdfeld continued , " Shipments of our PWRcell energy storage systems also grew at a significant rate as compared to the prior year , and with the considerable momentum we have in the marketplace , we are increasing our outlook for these products for the remainder of the year . Shipments of C & I products returned to growth in the quarter , increasing at a strong rate as demand is recovering at a faster pace than previously expected across a number of markets and geographies . With the impact from the major outages in Texas along with further capacity expansion actions for home standby , and with demand strengthening broadly across the rest of the business , we are substantially increasing our full year revenue and earnings outlook for 2021. " Additional First Quarter 2021 Consolidated Highlights Gross profit margin improved 370 basis points to 39.9 % compared to 36.2 % in the prior - year first quarter . The increase was primarily driven by favorable sales mix from significantly higher shipments of residential products , along with improved pricing and overhead absorption from higher sales volumes . These favorable impacts were partially offset by the onset of higher input costs primarily relating to raw materials , labor , freight and logistics costs . Operating expenses increased $ 23.2 million , or 21.2 % , as compared to the first quarter of 2020. The increase was primarily driven by higher variable expenses from the significant increase in sales volumes , higher employee costs and incentive compensation , and the impact of acquisitions . These increases were partially offset by a reduction in controllable operating expenses .