10/13 10:36 Gentex Reports Record Third Quarter Revenues and Earnings
From moneynet.com
10/13 10:36 Gentex Reports Record Third Quarter Revenues and Earnings
ZEELAND, Mich., Oct. 13 /PRNewswire/ -- Gentex Corporation (Nasdaq: GNTX), the Zeeland,
Michigan-based manufacturer of automatic-dimming rearview mirrors and commercial fire protection
products, today reported record financial results for the third quarter and nine months ended September
30, 1997.
The Company reported a 37 percent increase in net income to $8.7 million, or 24 cents per share, on
record revenues of $47.0 million for the third quarter ended September 30, 1997. In the comparable
1996 quarter, the Company reported net income of $6.3 million, or 18 cents per share, on revenues of
$36.8 million.
For the first nine months of 1997, net income increased to $24.1 million, or 67 cents per share, on
record revenues of $133.7 million. For the comparable 1996 period, Gentex reported net income of
$16.9 million, or 48 cents per share, on revenues of $111.4 million. Excluding all of the patent litigation
expenses, including a one-time charge in the first quarter of 1996 to settle all of the outstanding patent
litigation, net income for the first nine months of 1996 would have been $20.6 million, or 59 cents per
share.
"We had a record third quarter and nine-month period and are very pleased with the results," said
Gentex Executive Vice President Kenneth La Grand. "A number of variables shifted in the right direction
and contributed to our strong bottom line performance during the quarter, including a slight uptick in the
gross margin (both sequentially and year-over-year) and reduced selling, general and administrative
expense."
La Grand said that unit shipments to automotive customers increased by 32 percent, primarily due to
new interior and exterior mirror programs for domestic customers, as well as continued high-volume
shipments of the new, aspheric exterior mirror sub-assemblies for Mercedes-Benz.
The Company's gross margin improved to 35.6% in the third quarter of 1997 compared with 35.2% in
the second quarter of 1997 and 35.5% in the third quarter of 1996. The effects of temporary start-up
costs and yield losses associated with the aspheric and convex exterior mirror programs, temporary
under-utilization of the Company's new automotive mirror manufacturing facility, and price reductions
not fully offset by productivity improvements continue to affect gross margins.
La Grand also indicated that yields on the Company's new convex and wide-angle "aspheric", exterior
mirrors continue to slowly improve and believes that achieving the target yields is just a matter of time
and experience in making the products. In addition, the new "thin flat glass" exterior auto-dimming mirror
achieved its target yield during the quarter, and now a new target has been established.
Automotive revenues increased by 33 percent in the third quarter and 23 percent for the first nine
months of 1997 compared with the same respective periods last year. Fire protection products sales
decreased 4.4 percent in the third quarter and increased 4.3% for the first nine months of 1997
compared to the same periods last year. The decline in fire protection revenues in the third quarter of
1997 is primarily attributable to a later- than-expected introduction of a new horn/strobe signal product.
NVS(R) Mirror unit shipments to customers in North America increased by 30 percent in the third
quarter and by eight percent for the first nine months of 1997 compared with the same 1996 periods.
Unit shipments to customers outside North America increased by 35 percent in the third quarter and 54
percent for the first nine months of 1997, compared with the same 1996 periods.
Total NVS Mirror shipments in the third quarter were 975,000, a 32 percent increase over the 740,000
units reported in the same 1996 quarter. Exterior mirrors sub-assembly shipments increased by 90
percent in the third quarter of 1997, accounting for 302,000 of the total mirror shipments in the third
quarter of 1997, compared with 159,000 units in the same quarter last year.
For the first nine months of 1997, total unit shipments reached a record 2.7 million, a 20 percent
increase over the first nine months of 1996. For this same 1997 period, exterior mirror shipments were
731,000, a 55 percent gain over the 471,000 exterior mirror units shipped during the first nine months
of 1996.
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. The Company's Automotive Products Group is ISO 9001
registered and is in compliance with QS-9000, quality designations that soon will be required to supply
production or service parts to automakers.
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; an automotive sales and engineering subsidiary in Germany; 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 Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
Net Sales $46,968,427 $36,797,757 $133,743,883 $111,378,551
Costs and Expenses
Cost of Goods
Sold 30,264,933 23,748,882 86,503,617 70,307,979
Research &
Development 2,406,153 1,941,823 6,890,365 5,576,755
Selling, General &
Administrative 2,587,579 2,655,266 8,057,107 9,025,277
Patent Settlement 0 0 0 4,000,000
Other Expense
(Income) (1,131,386) (929,383) (3,340,479) (2,530,563)
Total Costs and
Expenses 34,127,279 27,416,588 98,110,610 86,379,448
Income Before Provision
for Income Taxes 12,841,148 9,381,169 35,633,273 24,999,103
Provision for Income
Taxes 4,174,000 3,048,000 11,581,000 8,096,000
Net Income $8,667,148 $6,333,169 $24,052,273 $16,903,103
Earnings Per Share $0.24 $0.18 $0.67 $0.48
Weighted Daily Average of
Common Shares
Outstanding 36,083,936 35,772,083 35,887,713 35,425,510
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
Sept 30, Dec 31,
1997 1996
ASSETS
Cash and Short-Term Investments $27,588,546 $48,533,977
Other Current Assets 33,427,402 24,161,883
Total Current Assets 61,015,948 72,695,860
Plant and Equipment - Net 39,124,472 31,574,547
Long-Term Investments and Other Assets 75,634,209 36,108,013
Total Assets $175,774,629 $140,378,420
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities $13,788,579 $11,360,917
Long-Term Debt 0 0
Deferred Income Taxes 2,203,096 1,213,862
Shareholders' Investment 159,782,954 127,803,641
Total Liabilities & Shareholders'
Investment $175,774,629 $140,378,420
SOURCE Gentex Corporation
-0- 10/13/97
/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)
CO: Gentex Corporation ST: Michigan IN: AUT SU: ERN |
