Generac Holdings Inc. (GNRC) Q1 2023 Earnings Call Transcript

Generac Holdings Inc. (NYSE:GNRC) Q1 2023 Earnings Conference Call May 3, 2023 10:00 AM ET

Company Participants

Mike Harris - SVP, Corporate Development and IR

Aaron Jagdfeld - President and CEO

York Ragen - CFO

Conference Call Participants

Tommy Moll - Stephens Inc.

Michael Halloran - Baird

Jeff Hammond - KeyBanc Markets

Christopher Glynn - Oppenheimer

Mark Strouse - JPMorgan

Jerry Revich - Goldman Sachs

Joseph Osha - Guggenheim

Kashy Harrison - Piper Sandler

George Gianarikas - Canaccord Genuity

Donovan Schafer - Northland Capital Markets

Praneeth Satish - Wells Fargo

Jordan Levy - Truist Securities

Operator

Good day, and thank you for standing by. Welcome to the First Quarter 2023 Generac Holdings Inc. Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session [Operator Instructions]. Please be advised that today's conference is being recorded.

And I would now like to hand the conference over to your speaker today, Mr. Mike Harris, Senior VP, Corporate Development and Investor Relations. Sir, please go ahead.

Mike Harris

Good morning. And welcome to our first 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 US GAAP measures is available in our earnings release and SEC filings.

I will now turn the call over to Aaron.

Aaron Jagdfeld

Thanks, Mike. Good morning, everyone. And thank you for joining us today.

Our first quarter net sales adjusted EBITDA and adjusted EPS were higher than expected, primarily due to continued strong shipments of our commercial and industrial products globally. Adjusted EBITDA margins were also better than expected due to favorable price cost dynamics. Additionally, field inventory levels of home standby generators declined at a rate consistent with our expectations in the quarter.