Name: Generac Holdings Inc. (NYSE:GNRC) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Generac Holdings Inc., consolidated income statement

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net sales	3,737,184)	2,485,200)	2,204,336)	2,023,464)	1,672,445)
Costs of goods sold	(2,377,102)	(1,527,546)	(1,406,584)	(1,298,424)	(1,090,328)
Gross profit	1,360,082)	957,654)	797,752)	725,040)	582,117)
Selling and service	(319,020)	(246,373)	(217,683)	(191,887)	(171,755)
Research and development	(104,303)	(80,251)	(68,394)	(50,019)	(42,925)
General and administrative	(144,272)	(118,233)	(109,017)	(103,841)	(87,512)
Acquisition related costs	(21,465)	(1,411)	(1,851)	—)	—)
Amortization of intangibles	(49,886)	(32,280)	(28,644)	(22,112)	(28,861)
Operating expenses	(638,946)	(478,548)	(425,589)	(367,859)	(331,053)
Income from operations	721,136)	479,106)	372,163)	357,181)	251,064)
Interest expense	(32,953)	(32,991)	(41,544)	(40,956)	(42,667)
Investment income	1,415)	2,182)	2,767)	1,893)	298)
Loss on extinguishment of debt	(831)	—)	(926)	(1,332)	—)
Loss on pension settlement	—)	—)	(10,920)	—)	—)
Other, net	2,759)	(2,106)	(1,933)	(5,710)	(4,007)
Other expense, net	(29,610)	(32,915)	(52,556)	(46,105)	(46,376)
Income before provision for income taxes	691,526)	446,191)	319,607)	311,076)	204,688)
Provision for income taxes	(134,957)	(98,973)	(67,299)	(69,856)	(43,553)
Net income	556,569)	347,218)	252,308)	241,220)	161,135)
Net (income) loss attributable to noncontrolling interests	(6,075)	3,358)	(301)	(2,963)	(1,749)
Net income attributable to Generac Holdings Inc.	550,494)	350,576)	252,007)	238,257)	159,386)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Financial performance from 2017 to 2021 is characterized by aggressive top-line growth and significant expansion in net profitability. Net sales increased from $1.67 billion in 2017 to $3.74 billion in 2021, representing a substantial upward trajectory, with the most pronounced acceleration occurring between 2020 and 2021.

Revenue and Gross Profitability: Net sales grew consistently year-over-year, culminating in a 50% increase in the final year of the period. Gross profit followed a similar trajectory, rising from $582 million in 2017 to $1.36 billion in 2021. The gross margin remained relatively stable, though it peaked in 2020 at approximately 38.5% before moderating slightly to 36.4% in 2021, suggesting a strong ability to maintain pricing power despite scaling operations.
Operating Expense Management: Operating expenses increased in absolute terms, growing from $331 million in 2017 to $639 million in 2021. However, these costs grew at a slower rate than net sales, indicating positive operating leverage. Research and development expenditures more than doubled over the period, increasing from $42.9 million to $104.3 million, highlighting a strategic commitment to product innovation. Acquisition-related costs emerged as a notable factor in 2021, reaching $21.5 million, which indicates an increase in inorganic growth activity.
Operating and Net Income Trends: Income from operations showed robust growth, increasing from $251 million in 2017 to $721 million in 2021. This expansion was driven by the combination of rising sales and controlled operating expenses. Net income attributable to the parent company followed this trend, ascending from $159 million in 2017 to $550 million in 2021. The net profit margin improved significantly over the five-year period, reflecting enhanced operational efficiency.
Non-Operating Items and Taxation: Interest expenses remained relatively contained, actually decreasing from $42.7 million in 2017 to $33 million in 2021, which suggests a strengthening balance sheet or a reduction in debt reliance relative to the size of the business. Provision for income taxes increased in alignment with pre-tax income, rising from $43.6 million in 2017 to $135 million in 2021.

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