Gencor Releases Fourth Quarter and Fiscal Year 2021 Results
Gencor Industries, Inc. (NASDAQ: GENC) reported a 91.7% increase in net revenue for Q4 2021, reaching $20.0 million, up from $10.5 million last year. This surge is attributed to enhanced orders prior to the $1.2 trillion Infrastructure Investment and Jobs Act. The company reported a net loss of $0.4 million, a slight improvement from $0.6 million loss in Q4 2020. While gross profit margins slightly declined due to increased costs, Gencor's backlog rose to $53.0 million, indicating robust demand for its products.
- Net revenue increased by 10.1% year-over-year to $85.3 million.
- Significant backlog growth to $53.0 million as of December 1, 2021.
- Improved operating loss reduced to ($0.7) million from ($1.7) million in Q4 2020.
- Non-operating income rose to $5.9 million from $1.1 million in the previous year.
- Gross profit margins declined to 21.3% from 24.5% year-over-year.
- Operating income decreased to $0.7 million from $5.5 million in the previous year.
- Increased costs of manufacturing labor and materials negatively impacted gross margins.
ORLANDO, Fla., Dec. 17, 2021 (GLOBE NEWSWIRE) -- Gencor Industries, Inc., (NASDAQ: GENC) announced today net revenue for the fourth quarter of 2021 increased
Operating loss for the quarter ended September 30, 2021 was (
Net revenue for the year ended September 30, 2021 increased
The Company had operating income for the year ended September 30, 2021 of
The effective income tax rate for fiscal 2021 was
Net income for the year ended September 30, 2021 was
At September 30, 2021, the Company had
The Company’s backlog, which includes orders received through the date of this filing, was
Mr. Marc Elliott, Gencor’s President, stated, “Fiscal 2021 brought on new challenges that Gencor effectively managed through. Similar to most manufacturing companies, we have been navigating through labor constraints, supply chain delays, and steel price inflation that have increased approximately
Market demand for Gencor’s asphalt plants and components remains strong, represented by a significant year-over-year increase in backlog. Our ability to meet the high level of demand is partially constrained by labor and to a lesser degree by supply chain challenges. We are working with our suppliers on material and product availability and costs to mitigate the impact on our customers.
While the economic landscape remains challenging due to the ongoing supply constraints, and significantly higher steel and material costs and a tight labor market, Gencor continues to deliver to ensure that we meet our customers’ equipment needs. We are optimistic that the passage of the
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. Consolidated Income Statements For the Years Ended September 30, 2021 and 2020 | ||||||
| 2021 | 2020 | |||||
| Net revenue | $ | 85,278,000 | $ | 77,420,000 | ||
| Cost of goods sold | 67,100,000 | 58,467,000 | ||||
| Gross profit | 18,178,000 | 18,953,000 | ||||
| Operating expenses: | ||||||
| Product engineering and development | 4,278,000 | 3,061,000 | ||||
| Selling, general and administrative | 13,199,000 | 10,356,000 | ||||
| Total operating expenses | 17,477,000 | 13,417,000 | ||||
| Operating income | 701,000 | 5,536,000 | ||||
| Other income (expense), net: | ||||||
| Interest and dividend income, net of fees | 1,762,000 | 2,321,000 | ||||
| Realized and unrealized gains (losses) on marketable securities, net | 4,171,000 | (1,160,000 | ) | |||
| Other | - | (16,000 | ) | |||
| 5,933,000 | 1,145,000 | |||||
| Income before income tax expense | 6,634,000 | 6,681,000 | ||||
| Income tax expense | 829,000 | 1,150,000 | ||||
| Net income | $ | 5,805,000 | $ | 5,531,000 | ||
| Basic earnings per common share | $ | 0.40 | $ | 0.38 | ||
| Diluted earnings per common share | $ | 0.39 | $ | 0.38 | ||
| GENCOR INDUSTRIES, INC. Consolidated Balance Sheets As of September 30, 2021 and 2020 | |||||
| ASSETS | 2021 | 2020 | |||
| Current assets: | |||||
| Cash and cash equivalents | $ | 23,232,000 | $ | 35,584,000 | |
| Marketable securities at fair value (cost of | 94,976,000 | 89,498,000 | |||
| Accounts receivable, less allowance for doubtful accounts of | 2,622,000 | 1,992,000 | |||
| Costs and estimated earnings in excess of billings | 1,903,000 | 6,405,000 | |||
| Inventories, net | 41,888,000 | 27,090,000 | |||
| Prepaid expenses | 2,202,000 | 1,189,000 | |||
| Total current assets | 166,823,000 | 161,758,000 | |||
| Property and equipment, net | 11,801,000 | 8,341,000 | |||
| Other long-term assets | 838,000 | 995,000 | |||
| Total Assets | $ | 179,462,000 | $ | 171,094,000 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | $ | 3,105,000 | $ | 1,728,000 | |
| Customer deposits | 5,244,000 | 3,853,000 | |||
| Accrued expenses | 2,645,000 | 2,605,000 | |||
| Current operating lease liabilities | 393,000 | 328,000 | |||
| Total current liabilities | 11,387,000 | 8,514,000 | |||
Deferred and other income taxes | 394,000 | 746,000 | |||
| Non-current operating lease liabilities | 392,000 | 614,000 | |||
| Total liabilities | 12,173,000 | 9,874,000 | |||
| 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 and 12,287,337 shares issued and outstanding at September 30, 2021 and 2020, respectively | 1,234,000 | 1,229,000 | |||
| Class B Stock, par value $.10 per share; 6,000,000 shares authorized; 2,318,857 shares issued and outstanding at September 30, 2021 and 2020 | 232,000 | 232,000 | |||
| Capital in excess of par value | 12,590,000 | 12,331,000 | |||
| Retained earnings | 153,233,000 | 147,428,000 | |||
| Total shareholders’ equity | 167,289,000 | 161,220,000 | |||
| Total Liabilities and Shareholders’ Equity | $ | 179,462,000 | $ | 171,094,000 | |
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.
Contact:
Eric Mellen, Chief Financial Officer
407-290-6000
FAQ
What was Gencor's revenue in Q4 2021?
How did Gencor's net income change in 2021?
What factors contributed to Gencor's revenue growth?
What is Gencor's current backlog?
How has Gencor's operating loss changed year-over-year?
