Generac Holdings Inc. (NYSE:GNRC)

The financial data reveals several notable trends and patterns over the five-year period ending December 31, 2021.

Revenue and Profitability

Net sales demonstrated consistent growth each year, rising from approximately $1.67 billion in 2017 to $3.74 billion in 2021. This represents a substantial increase, particularly between 2020 and 2021. Correspondingly, gross profit increased steadily, moving from $582 million in 2017 to $1.36 billion in 2021, reflecting improved scale and possibly enhanced operational efficiency.

Cost Structure

Costs of goods sold increased in absolute terms each year, aligned with the rise in sales, growing from about $1.09 billion in 2017 to $2.38 billion in 2021. Selling and service expenses, research and development costs, and general and administrative expenses all exhibited upward trends, indicating investments in market reach, innovation, and corporate management consistent with business expansion. Notably, acquisition related costs appeared starting in 2019 and increased sharply in 2021 to over $21 million, which may point to strategic acquisitions impacting expenses.

Operating Expenses and Income

Total operating expenses rose from $331 million in 2017 to $639 million in 2021, driven by increases across all subcategories. Despite these rising expenses, income from operations grew robustly from $251 million to $721 million over the same period, demonstrating strong operational leverage and profitability improvements.

Interest and Other Income/Expenses

Interest expense slightly decreased over the years, from $42.7 million in 2017 to approximately $33 million in 2021, suggesting some reduction in debt cost or balance. Investment income remained relatively low but positive throughout. Losses related to extinguishment of debt and pension settlements were sporadic and diminished by 2021. Other net expenses decreased in magnitude and even reversed to a positive figure in 2021, which may reflect improved non-operating activities or one-time gains.

Income Taxes and Net Income

Income before taxes increased markedly from $205 million in 2017 to nearly $692 million in 2021. The provision for income taxes rose correspondingly, from $43.6 million to $135 million, maintaining a relatively stable effective tax rate. Net income attributable to the company grew substantially from $159 million in 2017 to $550 million in 2021, highlighting strong overall profitability growth. Minor fluctuations in net income attributable to noncontrolling interests were observed but had limited impact on the primary net income figures.

Overall, the data indicates that the entity experienced strong revenue growth and improved profitability over the five-year period. Operating costs increased but were outpaced by revenue gains, leading to higher operating income. Financial management appears effective with controlled interest expenses and manageable tax obligations. The notable jump in acquisition related costs in 2021 may warrant further scrutiny to understand its long-term impact, but it did not adversely affect net income growth in that year.