Gencor Releases First Quarter Fiscal 2022 Results
Gencor Industries (Nasdaq: GENC) reported net revenues of $20.1 million for Q1 FY2022, up from $19.0 million in Q1 FY2021, largely driven by increased parts sales. The gross margin improved to 18.4% compared to 15.7% the previous year. However, the company experienced a net loss of $0.3 million or $(0.02) per share, a drop from net income of $1.6 million or $0.11 per share in 2020. Operating losses decreased slightly while operating expenses rose due to higher development costs. Gencor's backlog increased significantly to $58.0 million.
- Net revenues increased by $1.1 million year-over-year.
- Gross margin improved to 18.4% from 15.7%.
- Backlog rose to $58.0 million, indicating strong customer demand.
- Net loss of $0.3 million in Q1 FY2022 compared to a profit of $1.6 million in Q1 FY2021.
- Operating expenses increased to $4.748 million from $4.039 million.
- Non-operating income dropped to $0.7 million from $3.0 million in the previous year.
ORLANDO, Fla., Feb. 11, 2022 (GLOBE NEWSWIRE) -- Gencor Industries, Inc. (Nasdaq: GENC) (the “Company”) announced today net revenues of
Product engineering and development expenses increased
The Company had an operating loss
For the quarter ended December 31, 2021, the Company had net non-operating income of
The effective income tax rate for the quarters ended December 31, 2021 and December 31, 2020 was
At December 31, 2021, the Company had
The Company’s backlog was
Marc Elliott, Gencor’s President, commented, “We began fiscal 2022 with a strong backlog due to increased customer demand and optimism of the
First quarter revenues of
We are looking forward to exhibiting at the World of Asphalt show in March 2022 and we expect to generate significant interest based on positive market feedback from our loyal customers.”
Gencor Industries is a diversified heavy machinery manufacturer for the production of highway construction materials and equipment and environmental control machinery and equipment used in a variety of applications.
| GENCOR INDUSTRIES, INC. Condensed Consolidated Statements of Operations For the Quarters Ended December 31, 2021 and 2020 (Unaudited) | ||||||
| 2021 | 2020 | |||||
| Net revenue | ||||||
| Cost of goods sold | 16,401,000 | 15,983,000 | ||||
| Gross profit | 3,705,000 | 2,981,000 | ||||
| Operating expenses: | ||||||
| Product engineering and development | 1,349,000 | 845,000 | ||||
| Selling, general and administrative | 3,399,000 | 3,194,000 | ||||
| Total operating expenses | 4,748,000 | 4,039,000 | ||||
| Operating (loss) | (1,043,000) | (1,058,000) | ||||
| Other income (expense), net: | ||||||
| Interest and dividend income, net of fees | 277,000 | 804,000 | ||||
| Realized and unrealized gains on marketable securities, net | 423,000 | 2,193,000 | ||||
| 700,000 | 2,997,000 | |||||
| Income (loss) before income tax expense (benefit) | (343,000) | 1,939,000 | ||||
| Income tax expense (benefit) | (69,000) | 388,000 | ||||
| Net income (loss) | ||||||
| Basic income (loss) per common share | ||||||
| Diluted income (loss) per common share | ||||||
| GENCOR INDUSTRIES, INC. Condensed Consolidated Balance Sheets | |||||
ASSETS | December 31, 2021 (Unaudited) | September 30, 2021 | |||
| Current assets: | |||||
| Cash and cash equivalents | |||||
| Marketable securities at fair value (cost of 2021 and | 95,682,000 | 94,976,000 | |||
| Accounts receivable, less allowance for doubtful accounts of December 31, 2021 and | 3,376,000 | 2,622,000 | |||
| Costs and estimated earnings in excess of billings | 1,225,000 | 1,903,000 | |||
| Inventories, net | 45,734,000 | 41,888,000 | |||
| Prepaid expenses | 3,372,000 | 2,202,000 | |||
| Total current assets | 170,637,000 | 166,823,000 | |||
| Property and equipment, net | 12,051,000 | 11,801,000 | |||
| Other long-term assets | 778,000 | 838,000 | |||
| Total Assets | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | |||||
| Customer deposits | 8,697,000 | 5,244,000 | |||
| Accrued expenses | 2,167,000 | 2,645,000 | |||
| Current operating lease liabilities | 417,000 | 393,000 | |||
| Total current liabilities | 15,736,000 | 11,387,000 | |||
Deferred and other income taxes | 407,000 | 394,000 | |||
| Non-current operating lease liabilities | 308,000 | 392,000 | |||
| Total liabilities | 16,451,000 | 12,173,000 | |||
| Commitments and contingencies | |||||
| Shareholders’ equity: | |||||
| Preferred stock, par value $.10 per share; 300,000 shares authorized; none issued | - | - | |||
| Common stock, par value $.10 per share; 15,000,000 shares authorized; | |||||
| 12,338,845 shares issued and outstanding at December 31, 2021 and September 30, 2021 | 1,234,000 | 1,234,000 | |||
| Class B Stock, par value $.10 per share; 6,000,000 shares authorized; | |||||
| 2,318,857 shares issued and outstanding at December 31, 2021 and September 30, 2021 | 232,000 | 232,000 | |||
| Capital in excess of par value | 12,590,000 | 12,590,000 | |||
| Retained earnings | 152,959,000 | 153,233,000 | |||
| Total shareholders’ equity | 167,015,000 | 167,289,000 | |||
| Total Liabilities and Shareholders’ Equity | |||||
Caution Concerning Forward Looking Statements - This press release and our other communications and statements may contain certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including statements about the Company’s beliefs, plans, objectives, goals, expectations, estimates, projections and intentions. These statements are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond the Company’s control. Actual results may differ materially depending on a variety of important factors, including the financial condition of the Company’s customers, changes in the economic and competitive environments, demand for the Company’s products, the duration and scope of the coronavirus (“COVID-19”) pandemic, actions governments, and businesses take in response to the COVID-19 pandemic, including mandatory business closures; the impact of the pandemic and actions taken on regional economies; the pace of recovery when the COVID-19 pandemic subsides. The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “goal,” and similar expressions are intended to identify forward-looking statements.
For information concerning these factors and related matters, see the following sections of the Company’s Annual Report on Form 10-K for the year ended September 30, 2021: (a) Part I, Item 1A, “Risk Factors” and (b) Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”. However, other factors besides those referenced could adversely affect the Company’s results, and you should not consider any such list of factors to be a complete set of all potential risks or uncertainties. Any forward-looking statements made by the Company herein speak as of the date of this press release. The Company does not undertake to update any forward-looking statements, except as required by law.
Unless the context otherwise indicates, all references in this press release to the “Company,” “Gencor,” “we,” “us,” or “our,” or similar words are to Gencor Industries, Inc. and its subsidiaries.
FAQ
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