• Generac Reports First Quarter 2023 Results

    Source: Nasdaq GlobeNewswire / 03 May 2023 05:00:37   America/Chicago

    WAUKESHA, Wis., May 03, 2023 (GLOBE NEWSWIRE) -- Generac Holdings Inc. (NYSE: GNRC) (“Generac” or the “Company”), a leading global designer and manufacturer of energy technology solutions and other power products, today reported financial results for its first quarter ended March 31, 2023 and provided an update on its outlook for the full year 2023.

    First Quarter 2023 Highlights

    • Net sales decreased 22% to $888 million during the first quarter of 2023 as compared to $1.14 billion in the prior-year first quarter. Core sales, which excludes both the impact of acquisitions and foreign currency, decreased approximately 24%.
      • Residential product sales declined 46% to $419 million as compared to $777 million last year.
      • Commercial & Industrial (“C&I”) product sales increased 30% to $363 million as compared to $279 million in the prior year.
    • Net income attributable to the Company during the first quarter was $12 million, or $0.05 per share, as compared to $114 million, or $1.57 per share, for the same period of 2022.
    • Adjusted net income attributable to the Company, as defined in the accompanying reconciliation schedules, was $39 million, or $0.63 per share, as compared to $128 million, or $1.98 per share, in the first quarter of 2022.
    • Adjusted EBITDA before deducting for noncontrolling interests, as defined in the accompanying reconciliation schedules, was $100 million, or 11.3% of net sales, as compared to $196 million, or 17.3% of net sales, in the prior year.
    • On February 1st, the Company closed on the acquisition of REFU Storage Systems, a developer and supplier of battery storage hardware products, advanced software, and platform services for commercial and industrial applications, headquartered in Pfullingen, Germany.
    • On March 8th, the Company purchased the remaining 20% minority ownership interest in Pramac, bringing the Company’s total ownership to 100%. Headquartered in Italy, Pramac is a designer and manufacturer of stationary, mobile and portable generators along with energy storage solutions sold through a broad distribution network across the world. The Company’s initial majority ownership position was acquired in 2016.

    “As expected, first quarter sales were down year-over-year due to a challenging prior year comparison related to the significant excess backlog for home standby products as we entered 2022,” said Aaron Jagdfeld, President and Chief Executive Officer. “In addition, residential product sales in the current year quarter were impacted by elevated levels of field inventory for home standby generators and a decline in clean energy products as we continue to expand our distribution network. However, power outage activity in the quarter was well above the long-term average, helping drive significant year-over-year growth for home standby in-home consultations and a meaningful reduction in field inventory levels for these products. Our global C&I product sales were at all-time highs in the quarter and exceeded our expectations with strength across all channels domestically and most regions internationally. As a result of these factors, we are maintaining our full-year 2023 net sales and adjusted EBITDA margin guidance.”

    Additional First Quarter 2023 Consolidated Highlights

    Gross profit margin was 30.7% as compared to 31.8% in the prior-year first quarter. This margin performance was primarily due to the significant impact of unfavorable sales mix, partially offset by the realization of previously implemented pricing actions and lower input costs.

    Operating expenses increased $22.0 million, or 10.7%, as compared to the first quarter of 2022 primarily driven by increased marketing, promotion, and employee costs, certain legal and regulatory expenses, and the impact of recurring operating expenses from recent acquisitions.

    Provision for income taxes for the current year quarter was $7.9 million, or an effective tax rate of 35.7%, as compared to $28.6 million, or a 19.7% effective tax rate, for the prior year. The increase in the effective tax rate was primarily due to a lower benefit from equity compensation on a low pre-tax earnings base in the current year quarter as compared to the prior year.

    Cash flow used in operations was $(18.6) million during the first quarter, as compared to $(10.1) million in the prior year. Free cash flow, as defined in the accompanying reconciliation schedules, was $(41.7) million as compared to $(36.8) million in the first quarter of 2022. The modest decline in free cash flow in the current year quarter was primarily due to lower operating earnings and a $36 million one-time cash tax payment for tax planning related to a recent acquisition, mostly offset by lower investment in working capital as compared to the prior year.

    Business Segment Results

    Domestic Segment

    Domestic segment total sales (including inter-segment sales, as disclosed in the accompanying schedule) decreased 26% to $720.0 million as compared to $974.9 million in the prior year quarter, with the impact of acquisitions contributing approximately 3% revenue growth for the quarter. The decline in core sales was driven primarily by lower home standby and clean energy product shipments. This decline was partially offset by strong growth in C&I product sales across all channels, highlighted by national rental equipment, industrial distributors, telecom, and other direct customers for “beyond standby” applications.

    Adjusted EBITDA for the segment was $67.7 million, or 9.4% of total sales, as compared to $170.4 million in the prior year, or 17.5% of total sales. This margin performance was primarily driven by unfavorable sales mix and reduced operating leverage on lower shipments. Additionally, the impact of acquisitions and continued energy technology growth investments negatively affected margins during the quarter. These impacts were partially offset by previously implemented pricing actions and lower input costs.

    International Segment

    International segment total sales (including inter-segment sales, as disclosed in the accompanying schedule) increased 17% to $216.5 million as compared to $185.4 million in the prior year quarter, with the net impact of acquisitions and foreign currency contributing approximately 2% net headwind to revenue growth for the quarter. The core sales growth for the segment was driven primarily by strength in our European operations.

    Adjusted EBITDA for the segment, before deducting for noncontrolling interests, was $32.4 million, or 15.0% of total sales, as compared to $26.0 million, or 14.0% of total sales, in the prior year. This strong margin performance was primarily driven by favorable price/cost dynamics and improved operating leverage on higher sales volumes.

    Updated 2023 Outlook

    Due to ongoing strength in leading indicators of demand for home standby generators and significant backlog for C&I products, the Company is maintaining its full-year 2023 net sales guidance. Consistent with the prior outlook, shipments of residential products are still expected to remain soft during the second quarter as home standby field inventory levels continue to normalize, with a return to year-over-year sales growth in the second half of the year partially offsetting the expected first half decline. In addition, our outlook for C&I product sales to grow at a mid to high-single digit rate during the year remains unchanged. Accordingly, the Company continues to expect full-year net sales to decline between -6 to -10% as compared to the prior year, which includes approximately 1 to 2% of net favorable impact from acquisitions and foreign currency.

    Additionally, the Company continues to expect net income margin, before deducting for non-controlling interests, to be approximately 7.5 to 8.5% for the full-year 2023. The corresponding adjusted EBITDA margin is still expected to be approximately 17.0 to 18.0% and disproportionately weighted towards the second half of the year.

    Operating and free cash flow generation is expected to return to strong levels for the full year, with conversion of adjusted net income to free cash flow expected to be well over 100%.

    Conference Call and Webcast

    Generac management will hold a conference call at 10:00 a.m. EDT on Wednesday, May 3, 2023 to discuss first quarter 2023 operating results. The conference call can be accessed at the following link: https://register.vevent.com/register/BIff9bb98e6aa7405b94d6f836a70bd366. Individuals that wish to listen via telephone will be given dial-in information.

    The conference call will also be webcast simultaneously on Generac's website (http://www.generac.com), accessed under the Investor Relations link. The webcast link will be made available on the Company’s website prior to the start of the call within the Events section of the Investor Relations website.

    Following the live webcast, a replay will be available on the Company’s website for 12 months.

    About Generac

    Generac is a leading energy technology company that provides backup and prime power systems for home and industrial applications, solar + battery storage solutions, smart home energy management devices and energy services, advanced power grid software platforms and engine- & battery-powered tools and equipment. Founded in 1959, Generac introduced the first affordable backup generator and later created the category of automatic home standby generator. The company is committed to sustainable, cleaner energy products poised to revolutionize the 21st century electrical grid.  

    Forward-looking Information

    Certain statements contained in this news release, as well as other information provided from time to time by Generac Holdings Inc. or its employees, may contain forward looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Forward-looking statements give Generac's current expectations and projections relating to the Company's financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate," "estimate," "expect," "forecast," "project," "plan," "intend," "believe," "confident," "may," "should," "can have," "likely," "future," “optimistic” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events.

    Any such forward looking statements are not guarantees of performance or results, and involve risks, uncertainties (some of which are beyond the Company's control) and assumptions. Although Generac believes any forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect Generac's actual financial results and cause them to differ materially from those anticipated in any forward-looking statements, including:

    • frequency and duration of power outages impacting demand for our products;
    • fluctuations in cost and quality of raw materials required to manufacture our products;
    • availability of both labor and key components from our manufacturing operations and global supply chain, including single-sourced components and contract manufacturers, needed in producing our products;  
    • the possibility that the expected synergies, efficiencies and cost savings of our acquisitions will not be realized, or will not be realized within the expected time period;
    • the risk that our acquisitions will not be integrated successfully;
    • the impact on our results of possible fluctuations in interest rates, foreign currency exchange rates, commodities, product mix, logistics costs and regulatory tariffs;
    • difficulties we may encounter as our business expands globally or into new markets;
    • our dependence on our distribution network;
    • our ability to remain competitive by investing in, developing or adapting to changing technologies and manufacturing techniques, as well as protecting our intellectual property rights;
    • loss of our key management and employees;
    • increase in product and other liability claims or recalls;
    • failures or security breaches of our networks, information technology systems, or connected products;
    • changes in laws and regulations regarding environmental, health and safety, product compliance, or international trade that affect our products, operations, or customer demand;
    • significant legal proceedings, claims, lawsuits or government investigations; and
    • changes in durable goods spending by consumers and businesses or other macroeconomic conditions, impacting demand for our products.

    Should one or more of these risks or uncertainties materialize, Generac's actual results may vary in material respects from those projected in any forward-looking statements. In the current environment, some of the above factors have materialized and may cause actual results to vary from these forward-looking statements.  A detailed discussion of these and other factors that may affect future results is contained in Generac's filings with the U.S. Securities and Exchange Commission (“SEC”), particularly in the Risk Factors section of the 2022 Annual Report on Form 10-K and in its periodic reports on Form 10-Q. Stockholders, potential investors and other readers should consider these factors carefully in evaluating the forward-looking statements.

    Any forward-looking statement made by Generac in this press release speaks only as of the date on which it is made.  Generac undertakes no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

    Non-GAAP Financial Metrics

    Core Sales

    The Company references core sales to further supplement Generac's condensed consolidated financial statements presented in accordance with U.S. GAAP. Core sales excludes the impact of acquisitions and fluctuations in foreign currency translation. Management believes that core sales facilitates easier and more meaningful comparison of net sales performance with prior and future periods.

    Adjusted EBITDA

    To supplement our condensed consolidated financial statements presented in accordance with U.S. GAAP, the Company provides the computation of Adjusted EBITDA attributable to the Company, which is defined as net income before noncontrolling interest adjusted for the following items: interest expense, depreciation expense, amortization of intangible assets, income tax expense, certain non-cash gains and losses including purchase accounting and contingent consideration adjustments, share-based compensation expense, losses on extinguishment of debt, certain transaction costs and credit facility fees, business optimization expenses, certain specific provisions, and adjusted EBITDA attributable to noncontrolling interests, as set forth in the reconciliation table below.  

    Adjusted Net Income

    To further supplement Generac's condensed consolidated financial statements presented in accordance with U.S. GAAP, the Company provides a summary to show the computation of adjusted net income attributable to the Company. Adjusted net income attributable to the Company is defined as net income before noncontrolling interests adjusted for the following items: amortization of intangible assets, amortization of deferred financing costs and original issue discount related to the Company's debt, intangible impairment charges, certain transaction costs and other purchase accounting adjustments, losses on extinguishment of debt, business optimization and other charges, certain specific provisions, certain other non-cash gains and losses, and adjusted net income attributable to non-controlling interests.

    Free Cash Flow

    In addition, we reference free cash flow to further supplement Generac's condensed consolidated financial statements presented in accordance with U.S. GAAP. Free cash flow is defined as net cash provided by operating activities, plus proceeds from beneficial interests in securitization transactions, less expenditures for property and equipment, and is intended to be a measure of operational cash flow taking into account additional capital expenditure investment into the business.

    The presentation of this additional information is not meant to be considered in isolation of, or as a substitute for, results prepared in accordance with U.S. GAAP.  Please see the accompanying Reconciliation Schedules and our SEC filings for additional discussion of the basis for Generac's reporting of Non-GAAP financial measures, which includes why the Company believes these measures provide useful information to investors and the additional purposes for which management uses the non-GAAP financial information.

    SOURCE: Generac Holdings Inc.

    CONTACT:
    Michael W. Harris
    Senior Vice President – Corporate Development & Investor Relations
    (262) 506-6064
    InvestorRelations@generac.com

     
    Generac Holdings Inc.
    Condensed Consolidated Statements of Comprehensive Income
    (U.S. Dollars in Thousands, Except Share and Per Share Data)
    (Unaudited)
        
     Three Months Ended March 31,
      2023   2022 
        
    Net sales$887,910  $1,135,856 
    Costs of goods sold 615,411   775,108 
    Gross profit 272,499   360,748 
        
    Operating expenses:   
    Selling and service 100,688   98,243 
    Research and development 41,820   39,744 
    General and administrative 59,685   41,972 
    Amortization of intangibles 25,823   26,054 
    Total operating expenses 228,016   206,013 
    Income from operations 44,483   154,735 
        
    Other (expense) income:   
    Interest expense (22,995)  (9,554)
    Investment income 688   77 
    Other, net (166)  246 
    Total other expense, net (22,473)  (9,231)
        
    Income before provision for income taxes 22,010   145,504 
    Provision for income taxes 7,849   28,608 
    Net income 14,161   116,896 
    Net income attributable to noncontrolling interests 1,731   3,038 
    Net income attributable to Generac Holdings Inc.$12,430  $113,858 
        
        
    Net income attributable to common shareholders per common share - basic:$0.06  $1.61 
    Weighted average common shares outstanding - basic: 61,556,044   63,449,380 
        
    Net income attributable to common shareholders per common share - diluted:$0.05  $1.57 
    Weighted average common shares outstanding - diluted: 62,294,447   64,828,819 
        
    Comprehensive income attributable to Generac Holdings Inc.$35,362  $122,365 
        


    Generac Holdings Inc.
    Condensed Consolidated Balance Sheets
    (U.S. Dollars in Thousands, Except Share and Per Share Data)
    (Unaudited)
        
     March 31, December 31,
      2023   2022 
    Assets   
    Current assets:   
    Cash and cash equivalents$137,365  $132,723 
    Accounts receivable, less allowance for credit losses of $28,660 and $27,664 at March 31, 2023 and December 31, 2022, respectively 490,384   522,458 
    Inventories 1,438,296   1,405,384 
    Prepaid expenses and other assets 119,729   121,783 
    Total current assets 2,185,774   2,182,348 
        
    Property and equipment, net 490,143   467,604 
        
    Customer lists, net 202,556   206,987 
    Patents and technology, net 445,333   454,757 
    Other intangible assets, net 37,633   41,719 
    Tradenames, net 225,198   227,251 
    Goodwill 1,426,332   1,400,880 
    Deferred income taxes 8,320   12,746 
    Operating lease and other assets 189,843   175,170 
    Total assets$5,211,132  $5,169,462 
        
    Liabilities and stockholders’ equity   
    Current liabilities:   
    Short-term borrowings$64,093  $48,990 
    Accounts payable 426,191   446,050 
    Accrued wages and employee benefits 48,088   45,741 
    Accrued product warranty 80,902   89,141 
    Other accrued liabilities 273,039   349,389 
    Current portion of long-term borrowings and finance lease obligations 18,029   12,733 
    Total current liabilities 910,342   992,044 
        
    Long-term borrowings and finance lease obligations 1,527,355   1,369,085 
    Deferred income taxes 110,447   125,691 
    Operating lease and other long-term liabilities 317,795   312,916 
    Total liabilities 2,865,939   2,799,736 
        
    Redeemable noncontrolling interest 3,814   110,471 
        
    Stockholders’ equity:   
    Common stock, par value $0.01, 500,000,000 shares authorized, 73,052,760 and 72,701,275 shares issued at March 31, 2023 and December 31, 2022, respectively 731   728 
    Additional paid-in capital 1,042,786   1,016,138 
    Treasury stock, at cost, 10,855,203 and 11,284,350 shares at March 31, 2023 and December 31, 2022, respectively (779,533)  (808,491)
    Excess purchase price over predecessor basis (202,116)  (202,116)
    Retained earnings 2,319,638   2,316,224 
    Accumulated other comprehensive loss (42,343)  (65,102)
    Stockholders’ equity attributable to Generac Holdings Inc. 2,339,163   2,257,381 
    Noncontrolling interests 2,216   1,874 
    Total stockholders’ equity 2,341,379   2,259,255 
    Total liabilities and stockholders’ equity$5,211,132  $5,169,462 
        


    Generac Holdings Inc. 
    Condensed Consolidated Statements of Cash Flows 
    (U.S. Dollars in Thousands) 
    (Unaudited) 
         
     Three Months Ended March 31, 
      2023   2022  
    Operating activities    
    Net income$14,161  $116,896  
    Adjustment to reconcile net income to net cash used in operating activities:    
    Depreciation 14,128   12,407  
    Amortization of intangible assets 25,823   26,054  
    Amortization of original issue discount and deferred financing costs 954   637  
    Deferred income taxes (10,712)  (49,156) 
    Share-based compensation expense 10,334   8,827  
    Loss (gain) on disposal of assets 30   (571) 
    Other noncash charges (160)  (6,446) 
    Net changes in operating assets and liabilities, net of acquisitions:    
    Accounts receivable 33,925   (66,510) 
    Inventories (23,820)  (147,250) 
    Other assets (5,576)  2,253  
    Accounts payable (24,488)  26,363  
    Accrued wages and employee benefits 1,630   (21,558) 
    Other accrued liabilities (53,790)  102,015  
    Excess tax benefits from equity awards (998)  (14,103) 
    Net cash used in operating activities (18,559)  (10,142) 
         
    Investing activities    
    Proceeds from sale of property and equipment 84   1,864  
    Proceeds from sale of investment    1,308  
    Proceeds from beneficial interests in securitization transactions 795   1,573  
    Contribution to equity method investment    (2,921) 
    Expenditures for property and equipment (23,977)  (28,200) 
    Purchase of long-term investment (2,000)    
    Acquisition of business, net of cash acquired (16,188)  (999) 
    Net cash used in investing activities (41,286)  (27,375) 
         
    Financing activities    
    Proceeds from short-term borrowings 19,515   136,664  
    Proceeds from long-term borrowings 267,869   110,000  
    Repayments of short-term borrowings (5,080)  (124,609) 
    Repayments of long-term borrowings and finance lease obligations (113,573)  (1,737) 
    Payment of contingent consideration (479)    
    Purchase of additional ownership interest (104,844)    
    Taxes paid related to equity awards (4,710)  (34,620) 
    Proceeds from the exercise of stock options 4,975   9,903  
    Net cash provided by financing activities 63,673   95,601  
         
    Effect of exchange rate changes on cash and cash equivalents 814   600  
         
    Net increase in cash and cash equivalents 4,642   58,684  
    Cash and cash equivalents at beginning of period 132,723   147,339  
    Cash and cash equivalents at end of period$137,365  $206,023  
         


    Generac Holdings Inc.
    Segment Reporting and Product Class Information
    (U.S. Dollars in Thousands)
    (Unaudited)
                
     Total Sales by Reportable Segment
     Three Months Ended March 31, 2023 Three Months Ended March 31, 2022
     External Net Sales Intersegment Sales Total Sales External Net Sales Intersegment Sales Total Sales
    Domestic$704,386 $15,607  $719,993  $964,674 $10,270  $974,944 
    International 183,524  32,942   216,466   171,182  14,250   185,432 
    Intercompany elimination -  (48,549)  (48,549)    (24,520)  (24,520)
    Total net sales$887,910 $-  $887,910  $1,135,856 $-  $1,135,856 
                
                
                
     External Net Sales by Product Class        
     Three Months Ended March 31,      
     2023 2022        
    Residential products$418,863 $776,944         
    Commercial & industrial products 362,990  278,728         
    Other 106,057  80,184         
    Total net sales$887,910 $1,135,856         
                
     Adjusted EBITDA        
     Three Months Ended March 31,      
     2023 2022        
    Domestic$67,662 $170,421         
    International 32,413  25,992         
    Total adjusted EBITDA (1)$100,075 $196,413         
                
    (1) See reconciliation of Adjusted EBITDA to Net income attributable to Generac Holdings Inc. on the following reconciliation schedule.
                


    Generac Holdings Inc.
    Reconciliation Schedules
    (U.S. Dollars in Thousands, Except Share and Per Share Data)
    (Unaudited)
        
    Net income to Adjusted EBITDA reconciliation   
     Three Months Ended March 31,
     2023 2022
        
    Net income attributable to Generac Holdings Inc.$12,430  $113,858 
    Net income attributable to noncontrolling interests 1,731   3,038 
    Net income 14,161   116,896 
    Interest expense 22,995   9,554 
    Depreciation and amortization 39,951   38,461 
    Provision for income taxes 7,849   28,608 
    Non-cash write-down and other adjustments (1) (3,160)  (7,792)
    Non-cash share-based compensation expense (2) 10,334   8,827 
    Transaction costs and credit facility fees (3) 1,091   989 
    Business optimization and other charges (4) 1,100   1,159 
    Provision for regulatory charges (5) 5,800   - 
    Other (46)  (289)
    Adjusted EBITDA 100,075   196,413 
    Adjusted EBITDA attributable to noncontrolling interests 3,133   3,425 
    Adjusted EBITDA attributable to Generac Holdings Inc.$96,942  $192,988 
        
    (1) Includes gains/losses on disposals of assets and sales of certain investments, unrealized mark-to-market adjustments on commodity contracts, certain foreign currency related adjustments, and certain purchase accounting and contingent consideration adjustments. A full description of these and the other reconciliation adjustments contained in these schedules is included in Generac's SEC filings.
        
    (2) Represents share-based compensation expense to account for stock options, restricted stock and other stock awards over their respective vesting periods.
        
    (3) Represents transaction costs incurred directly in connection with any investment, as defined in our credit agreement, equity issuance or debt issuance or refinancing, together with certain fees relating to our senior secured credit facilities.
        
    (4) Represents severance and other non-recurring restructuring charges.
        
    (5) The amount recorded in the first quarter 2023 represents a provision of $5.8 million for a pending matter with the Consumer Product Safety Commission concerning the imposition of penalty fines for allegedly failing to timely submit a report under the Consumer Product Safety Act in relation to certain portable generators that were subject to a voluntary recall previously announced on July 29, 2021.
        
    Net income to Adjusted net income reconciliation   
     Three Months Ended March 31,
     2023 2022
        
    Net income attributable to Generac Holdings Inc.$12,430  $113,858 
    Net income attributable to noncontrolling interests 1,731   3,038 
    Net income 14,161   116,896 
    Amortization of intangible assets 25,823   26,054 
    Amortization of deferred finance costs and original issue discount 954   637 
    Transaction costs and other purchase accounting adjustments (6) 718   (5,756)
    (Gain)/loss attributable to business or asset dispositions (7) (119)  (229)
    Business optimization and other charges (4) 1,100   1,159 
    Provision for regulatory charges (5) 5,800    
    Tax effect of add backs (8) (7,131)  (9,256)
    Adjusted net income 41,306   129,505 
    Adjusted net income (loss) attributable to noncontrolling interests 1,861   1,355 
    Adjusted net income attributable to Generac Holdings Inc.$39,445  $128,150 
        
    Adjusted net income attributable to Generac Holdings Inc. per   
    common share - diluted:$0.63  $1.98 
    Weighted average common shares outstanding - diluted: 62,294,447   64,828,819 
        
    (6) Represents transaction costs incurred directly in connection with any investment, as defined in our credit agreement, equity issuance or debt issuance or refinancing, and certain purchase accounting and contingent consideration adjustments.
        
    (7) Represents gains and losses attributable to the disposition of a business or assets occurring in other than ordinary course, as defined in our credit agreement.
        
    (8) In the third quarter of 2022, management determined that certain add-backs in 2022 should be reported net of tax. Add-backs in the first quarter of 2022 were not reported net of tax, and we reported adjusted net income attributable to Generac Holdings Inc. for the first quarter ended 2022 of $135,271 or $2.09. Taking into account the tax effect on certain add-backs, the revised reported adjusted net income attributable to Generac Holdings Inc. for the first quarter ended 2022 is $128,150 or $1.98.
        
    Free Cash Flow Reconciliation   
     Three Months Ended March 31,
     2023 2022
        
    Net cash used in operating activities$(18,559) $(10,142)
    Proceeds from beneficial interests in securitization transactions 795   1,573 
    Expenditures for property and equipment (23,977)  (28,200)
    Free cash flow$(41,741) $(36,769)
        

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