04/15 08:54 Gentex Reports Record First Quarter Revenues and Net Income; NetIncome Increase on Higher Revenues
from moneynet.com
ZEELAND, Mich., April 15 /PRNewswire/ -- Gentex Corporation (Nasdaq: GNTX), the
Zeeland, Michigan-based manufacturer of automatic-dimming rearview mirrors and commercial
fire protection products, today reported record revenues and net income for the first quarter
ended March 31, 1998.
The Company achieved an all-time sales record in the first quarter of 1998 with revenues of
$57.0 million, a 36 percent increase over revenues of $41.9 million reported in the first quarter
last year. Net income of $12.5 million, or 34 cents per share, for the first quarter of 1998
increased by 69% compared with net income of $7.4 million, or 21 cents per share, in the
comparable 1997 quarter. All per share amounts reported are diluted.
"Our automotive unit shipments were very strong in the first quarter, resulting in these
higher-than-expected net earnings," said Gentex Executive Vice President Kenneth La Grand.
"The strong momentum of the 1998 model year that began in August 1997 has carried over into
this new fiscal year."
La Grand said that mirror unit shipments to offshore auto customers increased by 43 percent
compared with the first quarter of 1997, primarily attributable to increased aspheric exterior
mirror sub-assembly shipments for Mercedes-Benz. Shipments to customers in North America
increased by 49 percent, despite nearly flat North American light vehicle production. The higher
mirror unit production for North America was primarily due to interior and exterior mirrors for
light trucks and sport/utility vehicles.
Total automotive mirror unit shipments for the first quarter of 1998 were 1,268,000, compared
with 863,000 units for the same quarter in 1997. Total exterior mirror units shipped for the
1998 first quarter were 381,000 compared with 207,000 for the first quarter of 1997. Unit
shipments to auto customers outside North America were 377,000 for the first quarter of 1998,
compared with 264,000 for the same 1997 quarter.
Revenues in the Fire Protection Products Group decreased by about 5 percent in the first
quarter of 1998, due to lower than expected sales of certain of the Company's audible and
visual signals, and generally light industry sales.
La Grand said that he believes that the coming year holds the potential for continued strong
growth for the Company, and estimated that automotive unit shipments in calendar 1998 could
increase by about 30 percent to approximately five million units, compared with the 3.9 million
units the Company shipped in 1997. He also said that the year-over-year rate of growth in the
second half of 1998 may be moderately lower compared with the growth rate in the first half of
1998, due primarily to major customer new model introductions and expected slower customer
production ramp ups.
Certain matters discussed in this news release are "forward-looking statements" which involve
certain risks and uncertainties, and are subject to change based on various market, industry and
other important factors. The Company cautions investors that numerous factors (as outlined in
the Company's Form 10-K filed with the Securities and Exchange Commission and other
interim reports) in some cases may affect in the future the Company's actual results, and may
cause those results to differ materially from those expressed in this news release.
Gentex Corporation is an international company that provides high-quality products to the
worldwide automotive industry and North American fire protection market. The Company
develops, manufactures and markets proprietary electro-optic products, including interior and
exterior electrochromic, automatic-dimming Night Vision Safety (NVS(R)) automotive rearview
mirrors that dim in proportion to the amount of headlight glare from trailing vehicle headlamps,
and an extensive line of fire protection products for commercial applications.
Gentex was the first company in the world to successfully develop and produce a commercial
electrochromic mirror for the motor vehicle industry. The Company is the leading supplier of
these mirrors to the worldwide automotive industry. Gentex customers include Audi, Bentley,
BMW, Chrysler, Daewoo, Fiat, Ford, General Motors, Gulf States Toyota, Honda, Hyundai,
Infiniti, Kia Motors, Lexus, Mercedes-Benz, Mitsubishi, Nissan, Opel, Porsche, Rolls Royce
and Southeast Toyota Distributors.
Founded in 1974, Gentex operates out of three facilities in Zeeland, Michigan; an automotive
sales and marketing office in Livonia, Michigan; automotive sales and engineering subsidiaries in
Germany and Japan; and five regional U.S. sales offices for the Fire Protection Products Group.
The Company is recognized for its quality products, its application of world class manufacturing
principles, for its commitment to developing and maintaining a highly skilled workforce, and for
encouraging employee ownership of the Company's stock.
GENTEX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three Months Ended
March 31,
1998 1997
Net Sales $56,979,402 $41,902,122
Costs and Expenses
Cost of Goods Sold 34,340,509 27,169,956
Research & Development 2,579,229 2,077,268
Selling, General & Administrative 3,036,013 2,690,391
Other Expense (Income) (1,551,632) (974,771)
Total Costs and Expenses 38,404,119 30,962,844
Income Before Provision
for Income Taxes 18,575,283 10,939,278
Provision for Income Taxes 6,074,000 3,555,000
Net Income $12,501,283 $7,384,278
Earnings Per Share
Basic $0.35 $0.21
Diluted $0.34 $0.21
Weighted Average Shares:
Basic 35,562,598 34,818,212
Diluted 36,678,188 35,745,958
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
March 31, Dec. 31,
1998 1997
ASSETS
Cash and Short-Term Investments $54,463,858 $41,131,383
Other Current Assets 37,480,895 34,788,053
Total Current Assets 91,944,753 75,919,436
Plant and Equipment - Net 52,188,748 42,238,885
Long-Term Investments and Other
Assets 73,824,076 71,624,526
Total Assets $217,957,577 $189,782,847
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities $22,610,109 $14,591,224
Long-Term Debt 0 0
Deferred Income Taxes 2,912,347 1,986,446
Shareholders' Investment 192,435,121 173,205,177
Total Liabilities &
Shareholders' Investment $217,957,577 $189,782,847
SOURCE Gentex Corporation
-0- 04/15/98
/CONTACT: Connie Hamblin of Gentex, 616-772-1800/
/Company News On-Call: prnewswire.com or fax, 800-758-5804, ext. 354175/
/Web site: gentex.com
(GNTX) |
