Generac Holdings Inc. (NYSE:GNRC) Q3 2023 Earnings Conference Call November 1, 2023 10:00 AM ET

Company Participants

Kris Rosemann - Senior Manager, Corporate Development and Investor Relations

Aaron Jagdfeld - President and Chief Executive Officer

York Ragen - Chief Financial Officer

Conference Call Participants

Tommy Moll - Stephens Inc

Christopher Glynn - Oppenheimer

Mark Strouse - JPMorgan

Brian Drab - William Blair

George Gianarikas - Canaccord Genuity

Donovan Schafer - Northland Capital Markets

Jon Windham - UBS

Stephen Gengaro - Stifel

Chip Moore - ROTH MKM

Operator

Good day and thank you for standing by. Welcome to the Third Quarter 2023 Generac Holdings Inc. Earnings Call. [Operator Instructions] Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today, Kris Rosemann, Senior Manager, Corporate Development and Investor Relations. Please go ahead.

Kris Rosemann

Good morning and welcome to our third quarter 2023 earnings call. I’d like to thank everyone for joining us this morning. With me today is Aaron Jagdfeld, President and Chief Executive Officer; and York Ragen, Chief Financial Officer.

We will begin our call today by commenting on forward-looking statements. Certain statements made during this presentation as well as other information provided from time-to-time by Generac or its employees may contain forward-looking statements and involve risks and uncertainties that could cause actual results to differ materially from those in these forward-looking statements. Please see our earnings release or SEC filings for a list of words or expressions that identify such statements and the associated risk factors. In addition, we will make reference to certain non-GAAP measures during today’s call. Additional information regarding these measures, including reconciliation to comparable U.S. GAAP measures, is available in our earnings release and SEC filings.

I will now turn the call over to Aaron.

Aaron Jagdfeld

Thanks, Kris. Good morning, everyone and thank you for joining us today. Our third quarter results reflect improving operating performance led primarily by continued strength in C&I product shipments and sequential growth in home standby generator shipments.

Year-over-year, overall net sales decreased 2% to $1.07 billion with core sales declining 4% during the quarter. Residential product sales decreased 15% as compared to the prior year, representing a significant improvement in sales decline from the prior two quarters as field inventory levels of home standby generators continued to decline during the quarter and portable generator sales decreased from a strong prior year comparison that included the impact of Hurricane Ian.