Generac Holdings Inc (GNRC) Q1 2020 Earnings Call Transcript

Generac Holdings Inc (GNRC) Q1 2020 Earnings Call Transcript

I would now like to hand the conference over to your speaker today, Mike Harris, Vice President of Corporate Development and Investor Relations.. With me today is Aaron Jagdfeld, President and Chief Executive Officer; and York Ragen, Chief Financial Officer.. Overall, net sales were a record for the first quarter and met expectations, led by strong core growth in residential products of approximately 9%.. We are pleased that shipments of our PWRcell energy storage system met our expectations after the first full quarter of its commercial launch in December.. The strong performance within residential products was mostly offset by lower-than-expected shipments for domestic mobile products and continued weakness in international markets following the onset of the COVID-19 pandemic, which has triggered a significant decline in demand in certain end markets that we serve.. On a year-over-year basis, net sales increased 1% during the first quarter of 2020 as compared to the very strong prior year first quarter, where overall revenue growth was 18%.. Gross margin expanded 170 basis points compared to the prior year, and adjusted EBITDA margin was 18.1% as both exceeded our expectations primarily due to favorable mix from higher-than-expected shipments of residential products.. We are closely watching