Gencor Releases Fourth Quarter and Fiscal Year 2022 Results
Gencor Industries (GENC) reported a 15.5% increase in Q4 2022 net revenue, reaching $23.1 million compared to $20 million in Q4 2021. Gross profit margins improved to 21.5%, up from 17.2% a year earlier, despite rising labor and material costs. The company achieved operating income of $1.2 million, bouncing back from a loss of $0.7 million in Q4 2021. For the fiscal year, net revenue increased by 21.3% to $103.5 million, while net income stood at $0.5 million, a recovery from a net loss of $0.4 million in the prior year. Cash and marketable securities decreased to $98.9 million.
- Q4 2022 net revenue increased 15.5% to $23.1 million.
- Gross profit margin improved to 21.5% from 17.2%.
- Operating income for Q4 was $1.2 million, up from a loss of $0.7 million.
- Fiscal 2022 net revenue rose 21.3% to $103.5 million.
- Q4 2022 net income was $0.5 million, compared to a loss of $0.4 million a year earlier.
- Fiscal 2022 gross profit margin decreased to 19.9% from 21.3% due to higher manufacturing costs.
- Non-operating losses for the year were $(5.9) million compared to income of $5.9 million in the previous year.
- Net loss for the year was $(0.4) million versus net income of $5.8 million in fiscal 2021.
ORLANDO, Fla., Dec. 16, 2022 (GLOBE NEWSWIRE) -- Gencor Industries, Inc. (the “Company” or “Gencor”) (NYSE American: GENC) announced today net revenue for the fourth quarter of 2022 increased
Operating income for the quarter ended September 30, 2022 was
Net revenue for the year ended September 30, 2022 increased
The Company had operating income for the year ended September 30, 2022 of
The effective income tax rate for fiscal 2022 was a benefit of (
Net loss for the year ended September 30, 2022 was
At September 30, 2022, the Company had
The Company’s backlog was
Mr. Marc Elliott, Gencor’s President, stated, “I am pleased with Gencor’s strong fourth quarter performance, with solid improvements in revenues and gross margins as market demand for Gencor’s asphalt plants and components have remained strong. While supply chain and inflation-related challenges have continued throughout the fiscal year, our Company has persevered and our business has grown substantially. While the macro environment is more uncertain in 2023, we remain focused on growth in our markets.
I am optimistic that the passage of last year’s Infrastructure Investment and Jobs Act will provide a catalyst for our markets over the next few years as funding is released. We believe this clarity of guaranteed Federal investment will be essential in accelerating state infrastructure projects.”
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 Statements of Operations For the Years Ended September 30, 2022 and 2021 | |||||||
| 2022 | 2021 | ||||||
| Net revenue | $ | 103,479,000 | $ | 85,278,000 | |||
| Cost of goods sold | 82,935,000 | 67,100,000 | |||||
| Gross profit | 20,544,000 | 18,178,000 | |||||
| Operating expenses: | |||||||
| Product engineering and development | 4,325,000 | 4,278,000 | |||||
| Selling, general and administrative | 12,052,000 | 13,199,000 | |||||
| Total operating expenses | 16,377,000 | 17,477,000 | |||||
| Operating income | 4,167,000 | 701,000 | |||||
| Other income (expense), net: | |||||||
| Interest and dividend income, net of fees | 1,305,000 | 1,762,000 | |||||
| Realized and unrealized gains (losses) on marketable securities, net | (7,009,000 | ) | 4,171,000 | ||||
| Other | (156,000 | ) | - | ||||
| (5,860,000 | ) | 5,933,000 | |||||
| Income (loss) before income tax expense (benefit) | (1,693,000 | ) | 6,634,000 | ||||
| Income tax expense (benefit) | (1,321,000 | ) | 829,000 | ||||
| Net income (loss) | $ | (372,000 | ) | $ | 5,805,000 | ||
| Basic earnings (loss) per common share | $ | (0.03 | ) | $ | 0.40 | ||
| Diluted earnings (loss) per common share | $ | (0.03 | ) | $ | 0.39 | ||
| GENCOR INDUSTRIES, INC. Consolidated Balance Sheets As of September 30, 2022 and 2021 | |||||||
| ASSETS | 2022 | 2021 | |||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 9,581,000 | $ | 23,232,000 | |||
| Marketable securities at fair value (cost of | 89,300,000 | 94,976,000 | |||||
| Accounts receivable, less allowance for doubtful accounts of | 2,996,000 | 2,622,000 | |||||
| Costs and estimated earnings in excess of billings | 2,118,000 | 1,903,000 | |||||
| Inventories, net | 55,815,000 | 41,888,000 | |||||
| Prepaid expenses | 2,669,000 | 2,202,000 | |||||
| Total current assets | 162,479,000 | 166,823,000 | |||||
| Property and equipment, net | 13,491,000 | 11,801,000 | |||||
| Deferred and other income taxes | 2,893,000 | - | |||||
| Other long-term assets | 450,000 | 838,000 | |||||
| Total Assets | $ | 179,313,000 | $ | 179,462,000 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 4,251,000 | $ | 3,105,000 | |||
| Customer deposits | 5,864,000 | 5,244,000 | |||||
| Accrued expenses | 1,885,000 | 2,645,000 | |||||
| Current operating lease liabilities | 390,000 | 393,000 | |||||
| Total current liabilities | 12,390,000 | 11,387,000 | |||||
Deferred and other income taxes | - | 394,000 | |||||
| Non-current operating lease liabilities | 6,000 | 392,000 | |||||
| Total liabilities | 12,396,000 | 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 September 30, 2022 and 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 September 30, 2022 and 2021 | 232,000 | 232,000 | |||||
| Capital in excess of par value | 12,590,000 | 12,590,000 | |||||
| Retained earnings | 152,861,000 | 153,233,000 | |||||
| Total shareholders’ equity | 166,917,000 | 167,289,000 | |||||
| Total Liabilities and Shareholders’ Equity | $ | 179,313,000 | $ | 179,462,000 | |||
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. In addition, on February 24, 2022, Russian forces invaded Ukraine. The impact to Ukraine as well as actions taken by other countries, including new and stricter sanctions imposed by the U.S. and other countries and companies against officials, individuals, regions, and industries in Russia, and actions taken by Russia and certain other countries in response to such sanctions, could result in a disruption in our supply chain and higher costs of our products. 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, 2022: (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
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