Revenue during the quarter grew 16.65 percent to $417.42 million from $357.83 million in the previous year period. Gross margin for the quarter expanded 28 basis points over the previous year period to 36.92 percent. Total expenses were 81.50 percent of quarterly revenues, down from 92.37 percent for the same period last year. This has led to an improvement of 1087 basis points in operating margin to 18.50 percent.

Operating income for the quarter was $77.23 million, compared with $27.32 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $91.05 million compared with $80.08 million in the prior year period. At the same time, adjusted EBITDA margin contracted 57 basis points in the quarter to 21.81 percent from 22.38 percent in the last year period.

“Overall fourth quarter results provided a strong end to 2016, with organic sales improving over the prior-year and operating and free cash flow achieving quarterly records,” said Aaron Jagdfeld, president and chief executive officer. “Hurricane Matthew drove significant shipments of residential products during the quarter as our team executed well to fulfill the increased demand from this event. We continued to generate a strong level of free cash flow that exceeded $220 million for the year, which allowed us to deploy cash in a variety of strategic ways including acquisitions and certain capital expenditures, as well as paying down debt and returning capital to shareholders.”

GENERAC HOLDINGS projects revenue to grow in the range of 5 percent to 7 percent for the financial year 2017. For the fiscal year 2017, GENERAC HOLDINGS projects adjusted net income to grow at 90 percent.

The company has spent $105.82 million cash to meet investing activities during the year as against cash outgo of $104.33 million in the last year. It has incurred net capital expenditure of $29.11 million on net basis during the year, down 4.71 percent or $1.44 million from year ago.

The company has spent $195.70 million cash to carry out financing activities during the year as against cash outgo of $154.48 million in the last year period.

Cash and cash equivalents stood at $67.27 million as on Dec. 31, 2016, down 41.94 percent or $48.58 million from $115.86 million on Dec. 31, 2015.

Working capital declines
Generac Holdings Inc has witnessed a decline in the working capital over the last year. It stood at $341.57 million as at Dec. 31, 2016, down 23.78 percent or $106.58 million from $448.15 million on Dec. 31, 2015. Current ratio was at 2 as on Dec. 31, 2016, down from 3.10 on Dec. 31, 2015.

Cash conversion cycle (CCC) has decreased to 56 days for the quarter from 67 days for the last year period. Days sales outstanding went up to 27 days for the quarter compared with 23 days for the same period last year.

Days inventory outstanding has decreased to 61 days for the quarter compared with 66 days for the previous year period. At the same time, days payable outstanding went up to 32 days for the quarter from 22 for the same period last year.