GNTX ($30-$33*New Yearly High) P/E 36 In Line with Estimates, Sees
early signs of improvement in 2nd half of 2001.
Tuesday July 17, 11:59 am Eastern Time
Press Release
SOURCE: Gentex Corporation
Gentex Reports Financial Results for the Second Quarter of 2001
ZEELAND, Mich., July 17 /PRNewswire/ -- Gentex Corporation (Nasdaq: GNTX - news), the Zeeland, Michigan-based manufacturer of automatic-dimming rearview mirrors and commercial fire protection products, today reported financial results for the second quarter and six months ended June 30, 2001.
For the second quarter of 2001, the Company reported net income of $16.2 million, or 21 cents per share, on record second quarter revenues of $77.1 million. In the comparable 2000 quarter, the Company reported net income of $18.4 million, or 24 cents per share, on revenues of $76.8 million.
For the first six months of 2001, net income was $33.4 million, or 44 cents per share, on record revenues of $156.5 million. For the comparable 2000 period, Gentex reported net income of $36.9 million, or 49 cents per share, on revenues of $150.6 million.
``We had a tough second quarter, but we are seeing early signs of improvement for the second half of calendar 2001,'' said Gentex Executive Vice President Kenneth La Grand. ``We expect to have unit shipment growth of approximately 15 percent during the second half of the year, based on the current J.D. Power forecast for light vehicle production for calendar 2001.
``Based on all of the new business we have booked, including mirrors for mid-size vehicles such as the Toyota Camry, we believe that beyond calendar 2001 we will move closer to our historic growth rate of 20+ percent. Over the next several months, we will announce the commencement of mirror shipments for a number of new vehicles, including at least two more mid-size models.''
La Grand said that the Company's net income continues to be impacted by increased investment in research and development and selling expenses.
``We continue to pay a short-term earnings penalty due to the significant investments we are making in research and development for programs that will produce potentially significant revenues two to three years from now. However, we manage for the long term at Gentex, and will continue to invest in research and development in areas where we see significant growth prospects,'' said La Grand.
He said that the increased selling expenses are primarily due to building the necessary customer support infrastructure at the Company's sales and engineering offices in Europe and Japan. La Grand said that the Company has significant new business opportunities in those overseas markets and that Gentex is making the investments to ensure that it can support a higher level of new business.
Total Night Vision Safety(TM)(NVS®) Mirror shipments in the second quarter of 2001 were nearly 1.8 million, an approximate three percent increase over the approximately 1.7 million units reported in the same 2000 quarter. For the first six months of 2001, total unit shipments reached a record 3.6 million, a five percent increase over the first six months of 2000.
The Company's Fire Protection Products Group reported a decrease in revenues of about one percent for the second quarter and an increase of one percent for the first six months of 2001, compared with the same periods last year.
Certain matters discussed in this news release, including earnings, unit sale and growth rate projections and estimates, 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 (some of which are outlined in the Company's Form 10-K filed with the Securities and Exchange Commission and other interim reports) and future events may affect the Company's actual results, and may cause those results to differ materially from those expressed in this news release. Furthermore, Gentex undertakes no obligation to update, amend, or clarify forward-looking statements whether as a result of new information, future events, or otherwise.
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(TM) (NVS®) 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 OEM customers include Audi, Bentley, BMW, Daewoo, DaimlerChrysler, Fiat, Ford, General Motors, Hyundai, Infiniti, Kia Motors, Lexus, Mitsubishi, Nissan, Opel, Porsche, Rover, Rolls Royce, Samsung Motors, SsangYong Motors and Toyota. Gentex aftermarket/distributor customers include Gulf States Toyota Distributors, Mito Corporation, Southeast Toyota Distributors, Subaru Distributors NE and Toyota Motor Sales USA.
Founded in 1974, Gentex operates out of four facilities in Zeeland, Michigan; an automotive sales office in Livonia, Michigan; automotive sales and engineering subsidiaries in Germany, Japan, the United Kingdom and France; and four 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 Six Months Ended
June 30, June 30,
2001 2000 2001 2000
Net Sales $77,074,568 $76,755,923 $156,471,374 $150,632,461
Costs and Expenses
Cost of Goods
Sold 46,710,921 44,635,685 94,382,078 86,005,307
Research &
Development 5,325,034 4,256,066 10,225,844 8,129,999
Selling, General &
Administrative 4,780,327 4,501,495 9,704,414 8,640,635
Other Expense
(Income) (3,736,538) (3,879,509) (7,395,746) (6,834,700)
Total Costs and
Expenses 53,079,744 49,513,737 106,916,590 95,941,241
Income Before Provision
for Income
Taxes 23,994,824 27,242,186 49,554,784 54,691,220
Provision for
Income Taxes 7,799,000 8,882,000 16,106,000 17,781,000
Net Income $16,195,824 $18,360,186 $33,448,784 $36,910,220
Earnings Per Share
Basic $0.22 $0.25 $0.45 $0.50
Diluted $0.21 $0.24 $0.44 $0.49
Weighted Average Shares:
Basic 74,677,817 73,897,916 74,521,573 73,715,860
Diluted 75,865,525 75,688,794 75,701,341 75,653,305
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
June 30, Dec. 31,
2001 2000
ASSETS
Cash and Short-Term Investments $168,543,458 $138,442,550
Other Current Assets 48,974,588 52,113,300
Total Current Assets 217,518,046 190,555,850
Plant and Equipment - Net 102,038,780 81,919,668
Long-Term Investments and Other Assets 150,493,285 155,653,175
Total Assets $470,050,111 $428,128,693
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities $21,049,364 $19,691,252
Long-Term Debt 0 0
Deferred Income Taxes 6,197,773 6,333,880
Shareholders' Investment 442,802,974 402,103,561
Total Liabilities & Shareholders'
Investment $470,050,111 $428,128,693
SOURCE: Gentex Corporation |
