Showing posts with label CorePower Series. Show all posts
Showing posts with label CorePower Series. Show all posts

Tuesday, February 14, 2012

Outdoor Power Equipment Goes Gas-Free: Makes Way to Wind Energy


February 9 -- You know the drill.  The familiar buzzing sound of a weed wacker combined with either the smell of gasoline or that super long power cable that's covered in grass shavings.  Not any more.

A father and son team, Matt Jore and Lincoln Jore, Core Outdoor Power, created new gas-free motor technology, called Conductor Optimized Rotary (CORE™) combined with a hybrid power cell to go in their new line of gas-free emission-free outdoor power equipment – a hedge trimmer, lawn mower, blower and back pack blower. They call it intelligent technology to replace gas.

What does the new gas-free motor technology mean for portable outdoor power equipment?

Well a couple of things. One, the Outdoor Power Equipment (OPE) market for portable or handheld moving products is around $15B. Second, zero emissions, less noise with no loss of power to trim or blow – all of that inside of a market ready for a makeover.

Lincoln Jore, President and Founder, Core Outdoor Power, has been quoted in the past saying the OPE market has missed the mark on developing alternative energy products that meet performance expectations. He believes the company is onto something with their new gas-free product line and he might be right.

The hybrid power cell in the CORE motor technology makes it capable of storing and delivering large amounts of power in a very small package. Combining these technologies together creates an environmentally clean line of products capable of consuming a large portion of that $15B outdoor power equipment market, which has historically been dominated by two-cycle gas engines.

Yes, there are other OPE companies making green lines, but Jore says the advantage of CORE’s gas-free system comes from the marriage of those two technologies: the CORE motor technology and the lithium-based hybrid power cell.

“Our motors are capable of hitting very high power levels in a very compact package,” said Jore. “We use heavy duty circuit boards and permanent magnets rather than wire windings and iron laminations used in conventional motors. This gives our products considerably higher performance.”

The first application of their technology is in the OPE market, but the company sees other applications as well, such as in the wind energy sector with wind turbines. Jore believes they can leverage the CORE motor technology in a wind turbine power generation system at Boulder Wind Power in Colorado for residential and commercial deployments.

Boulder Wind recently received $34M in funding from Molycorp, Inc. (NYSE:MCP) and venture capital firm NEA.  Molycorp is the Western hemisphere’s only producer of rare earth oxides (REO) and the largest REO producer outside of China.  NEA is a key investment player in the clean energy, IT and health care spaces with more than $11 billion in committed capital.

“The technology allows utility-scale power levels in the multi-megawatt range, so both commercial and residential markets are served,” said Jore. “The ultimate goal of Boulder Wind is to offer a CORE generator that allows for the lowest cost energy to all end users, both residential and commercial.”

Jore admits there are always barriers to entry in every market, but states that any technology must be reliable, efficient, and cost-effective to penetrate the wind energy markets. “We believe our technology, which is a direct-drive gearless power generator, enjoys these characteristics and feel it’s a natural extension and application of the technology.”

Thursday, November 11, 2010

Generac Reports Third Quarter 2010 Earnings

WAUKESHA, WISCONSIN, (November 4, 2010) - Generac Holdings Inc., a leading designer and manufacturer of backup power generation products, today reported financial results for its third quarter ended September 30, 2010.

Third Quarter 2010 Highlights

- Net sales increased year-over-year by 11.4% to $160.7 million as compared to $144.3 million in the third quarter of 2009.

- Net income increased year-over-year by 60.6% to $23.0 million as compared to $14.3 million for the third quarter of 2009; Adjusted net income increased 35.3% to $36.7 million from $27.1 million in the third quarter of 2009.

- Net cash provided by operating activities improved 50.0% year-over-year, from $24.3 million to $36.5 million during the third quarter 2010.

- Diluted net income per common share was $0.34 per share; Adjusted diluted net income per common share was $0.55 per share.

- The Company successfully launched its new economy home standby product, CorePowerTM Series, establishing a new lower opening price for the category.

"Despite the difficult operating environment which persisted throughout the third quarter of 2010, we achieved a double digit year-over-year increase in net sales, driven by increased sales for both our residential and industrial products.

Although we have not had the benefit of major outage activity this summer, improved industrial market conditions and our ability to expand distribution and create awareness for our residential products have helped us drive strong revenue growth in our business." said Aaron Jagdfeld, President and Chief Executive Officer of Generac.

Residential product sales of $101.0 million increased 12.6% in the third quarter 2010 from $89.7 million in the third quarter last year. This year-over-year increase was driven primarily by our marketing programs for home standby generators, continued expansion of our residential products distribution network, and a shift towards in-season buying.

Industrial and commercial product sales of $49.6 million in the third quarter increased 7.6% from $46.0 million for the comparable period in 2009. This increase was driven by an improvement in our focused end markets and expansion of our distribution.

The Company has also announced the following strategic initiatives designed to improve Generac's long-term growth profile:

- In October 2010, the Company announced it had reached a licensing agreement with Honeywell to be the exclusive licensee of Honeywell branded standby and portable generators. By leveraging Generac's product offering and support network, the Honeywell brand will provide incremental access to underpenetrated channels for the Company including security and HVAC.

- At the recent 2011 Green Industry and Equipment (GIE) Expo in Louisville, KY, the Company announced plans to re-enter the market for residential and contractor grade pressure washers, allowing it to leverage its existing customer base, supply-chain and engineering expertise.

Overall, gross profit margin increased sequentially to 41.9% from 39.0% in the second quarter 2010, but was down from 44.7% in the same period last year.The year-over-year decline in gross margins was mostly attributable to increased commodity costs versus prior year and a higher mix of lower kilowatt residential products sold during the current quarter compared to the prior year quarter.

Operating expenses for the third quarter of 2010 increased 10.9% to $37.6 million compared to $33.9 million in third quarter of 2009. The year-over-year increase in operating expenses was attributable to increased administrative costs related to operating as a public company, non-cash stock compensation expenses, higher engineering and product development costs, and higher variable operating expenses on higher net sales versus prior year.

Adjusted EBITDA of $45.7 million was relatively flat compared to $46.1 million in the third quarter of 2009.Interest expense decreased in the third quarter of 2010 to $6.5 million, compared to $17.2 million in the same period last year due to debt repayments, lower LIBOR rates, and the termination of certain interest rate swap agreements. 

Free cash flow generation remained strong, improving 51.1% year-over-year to $35.2 million during the third quarter 2010 from $23.3 million in the third quarter of 2009.

OUTLOOK
Mr. Jagdfeld concluded, "As we close out 2010, we expect to see continued year-over-year strength from our industrial and commercial products as demand in those markets continues to improve. However, more than offsetting this improvement, we see our fourth quarter 2010 residential product sales down year-over-year as certain customers have approached seasonal stocking for lower kilowatt products more conservatively this year versus last year.Despite this, we remain confident in our longer term growth initiatives including new product launches, continued expansion of our distribution network and our entry into new geographies and markets that will continue to drive sales growth and significant cash flow generation for our business."