Waukesha-based Generac Holdings Inc. capped a record fiscal year with strong net income in the fourth quarter.
The generator manufacturer reported quarterly net income of $267.1 million, or $3.91 per share, up from $18.8 million, or 28 cents per share, in the same period a year ago.
The fourth quarter of 2011 included $38.8 million of net sales from Magnum Products, which was acquired on Oct. 3.
"Generac achieved a number of important accomplishments during 2011, highlighted by a record level of revenue and strong profitability following the major power outage events that occurred across the country during the second half of the year," said Aaron Jagdfeld, president and chief executive officer of Generac.
"Our significant investment during the past decade in new product development, scaling of operations and expanding distribution capabilities enabled us to respond rapidly to the major outage events this year, driving robust shipments of residential products during the third and fourth quarters of 2011. I am very proud of both our employees and our distribution partners for their ability to respond quickly to the significant increase in demand and meet our customers’ needs in a timely and efficient manner. We expect the impact of these events on our residential product demand to continue into 2012 as we take advantage of the increased awareness and distribution in the affected areas,” Jagdfeld said. “We also closed on the strategic and accretive acquisition of Magnum Products in the fourth quarter of 2011. We are very pleased with the initial progress of the acquisition as Magnum’s financial results have exceeded our initial expectations. Both companies share a lean operating culture and strong brand reputation. I am particularly excited about the potential for cross-selling opportunities as the combined company can now offer both Generac and Magnum products into their respective end markets. Our integration is proceeding on plan and we increasingly believe the acquisition will prove to be an attractive use of shareholder capital."
