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GENERACⓇ® Generac Reports Record Second Quarter 2021 Results July 28 , 2021 Continued elevated demand and strong execution across the business drives exceptional revenue and earnings growth ; 2021 outlook further increased WAUKESHA , Wis . , July 28 , 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 second quarter ended June 30 , 2021 and provided an update on its outlook for the full year 2021 . Second Quarter 2021 Highlights • Net sales increased 68 % to a record $ 920 million during the second quarter of 2021 as compared to $ 547 million in the prior - year second quarter . Core sales growth , which excludes both the impact of acquisitions and foreign currency , increased approximately 64 % . • Residential product sales grew 76 % to $ 600 million as compared to $ 341 million last year . • Commercial & Industrial ( “ C & l ” ) product sales increased 64 % to $ 254 million as compared to $ 155 million in the prior year . • Net income attributable to the Company during the second quarter was $ 127 million , or $ 2.01 per share , as compared to $ 66 million , or $ 1.02 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 $ 2.39 per share , as compared to $ 88 million , or $ 1.40 per share , in the second quarter of 2020 . • Adjusted EBITDA before deducting for noncontrolling interests , as defined in the accompanying reconciliation schedules , was a record $ 218 million , or 23.7 % of net sales , as compared to $ 123 million , or 22.5 % of net sales , in the prior year . • Cash flow from operations was $ 122 million , a record for the second quarter of a year , as compared to $ 102 million in the prior year . Free cash flow , as defined in the accompanying reconciliation schedules , was also a second quarter record at $ 96 million as compared to $ 89 million for 2020. The increase in cash flow was primarily due to higher net income in the current year quarter , which was partially offset by a higher level of income taxes paid and capital expenditures in the current year relative to the prior year quarter . • On June 1st , the Company closed on the acquisition of Deep Sea Electronics Limited , an advanced controls designer and manufacturer headquartered in Hunmanby , United Kingdom . • On July 2nd , the Company closed on the acquisition of Chilicon Power , LLC ( “ Chilicon ” ) . Based in California , Chilicon is a designer and provider of grid - interactive microinverter and monitoring solutions for the solar market . • The Company achieved a significant milestone by starting production of home standby generators at its new manufacturing facility in Trenton , South Carolina in early July . " Second quarter results were again exceptional with broad - based growth of 68 % leading to all - time record revenue of $ 920 million . We are particularly proud of achieving this tremendous top - line growth along with a record level of adjusted EBITDA despite numerous supply chain challenges , " said Aaron Jagdfeld , President and Chief Executive Officer . " Shipments of home standby generators were almost double compared to the prior year due to incredible demand for these products and our successful capacity - expansion efforts . Our PWRcell® energy storage systems were also up dramatically compared to the prior year as well as sequentially as these products continued to gain important traction in the rapidly expanding clean energy market . Additionally , shipments of C & l products were up significantly over the prior year as we continue to see demand recover across a number of markets and geographies from the prior - year pandemic lows , with growth of these products now solidly above 2019 levels . " Jagdfeld continued , " We recently announced two strategic acquisitions we believe will enable us to expand our capabilities and accelerate our strategy to continue Generac's transition into an energy technology solutions company . In June , we closed on the acquisition of Deep Sea Electronics , which will improve our expertise and bandwidth for advanced systems controls and help us more quickly develop our product roadmap for the future . In early July , we further added to our suite of clean energy solutions by entering the large and growing microinverter market for solar applications with the acquisition of Chilicon Power . " Additional Second Quarter 2021 Consolidated Highlights Gross profit margin was 36.9 % as compared to 38.2 % in the prior - year second quarter . The current quarter's margin performance was impacted by higher input costs relating to raw materials , labor , logistics and plant start - up costs , which was partially offset by improved pricing along with favorable overhead absorption from higher sales volumes . Operating expenses increased $ 37.4 million , or 31.3 % , as compared to the second quarter of 2020. The increase was primarily driven by higher