Gencor Releases Second Quarter Fiscal 2021 Results
Gencor Industries, Inc. (Nasdaq: GENC) reported net revenues of $21.4 million for Q2 2021, down from $26.0 million in Q2 2020. Gross margins improved to 28.8% compared to 28.2% the previous year. Operating income decreased from $4.1 million to $1.2 million, impacted by costs related to the Blaw-Knox acquisition. However, non-operating income rose to $1.6 million from a loss of $4.9 million. Net income for Q2 2021 was $2.3 million ($0.16 per diluted share), a turnaround from a net loss of $(0.7 million) the previous year. Backlog increased to $42.6 million.
- Gross margins improved to 28.8% from 28.2% year-over-year.
- Net income increased to $2.3 million for Q2 2021, compared to a net loss of $0.7 million in Q2 2020.
- Backlog rose to $42.6 million, up from $24.5 million year-over-year.
- Net revenues decreased to $21.4 million for Q2 2021, down from $26.0 million in Q2 2020.
- Operating income fell to $1.2 million from $4.1 million year-over-year.
- Increased SG&A expenses by $1.3 million to $3.8 million, mainly for the paver line development.
ORLANDO, Fla., May 14, 2021 (GLOBE NEWSWIRE) -- Gencor Industries, Inc. (Nasdaq: GENC) announced today net revenues of
Product engineering and development expenses increased
Operating income decreased from
For the quarter ended March 31, 2021, the Company had non-operating income of
For the six months ended March 31, 2021 the Company had net revenue of
At March 31, 2021, the Company had
The Company’s backlog was
John Elliott, Gencor’s CEO, stated, “Despite higher raw material and associated purchased goods costs, Gencor was able to maintain gross margins in the second quarter. Revenues were modest compared to the second quarter of fiscal 2020 primarily due to a higher portion of revenue recognition from contracts recognized over time in fiscal 2020. Production and deliveries were minimally affected by COVID-19 related precautions in the quarter. Steel prices continued to increase and lead times on purchased goods remain a challenge.
We have experienced a pickup in demand for our equipment since the November 2020 election. Backlog exceeded
Our recently acquired Blaw-Knox brand and associated assets has been successfully moved to a separate manufacturing facility, where production of asphalt pavers has begun. Parts sales for the paver products have been steady. We anticipate continuing to invest in the brand to expand the market for both the equipment and parts sales.”
Gencor Industries is a diversified heavy machinery manufacturer for the production of highway construction materials, synthetic fuels and environmental control machinery and equipment used in a variety of applications.
| GENCOR INDUSTRIES, INC. Condensed Consolidated Statements of Operations (Unaudited) | |||||||||||||
| For the Quarters Ended March 31, | For the Six Months Ended March 31, | ||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||
| Net revenue | |||||||||||||
| Cost of goods sold | 15,206,000 | 18,655,000 | 31,189,000 | 32,365,000 | |||||||||
| Gross profit | 6,146,000 | 7,338,000 | 9,127,000 | 11,658,000 | |||||||||
Operating expenses: | |||||||||||||
| Product engineering and development | 1,069,000 | 689,000 | 1,914,000 | 1,455,000 | |||||||||
| Selling, general and administrative | 3,838,000 | 2,561,000 | 7,032,000 | 4,943,000 | |||||||||
| Total operating expenses | 4,907,000 | 3,250,000 | 8,946,000 | 6,398,000 | |||||||||
| Operating income (loss) | 1,239,000 | 4,088,000 | 181,000 | 5,260,000 | |||||||||
| Other income (expense), net: | |||||||||||||
| Interest and dividend income, net of fees | 327,000 | 763,000 | 1,130,000 | 1,395,000 | |||||||||
| Net realized and unrealized gains (losses) on marketable securities, net | 1,294,000 | (5,670,000 | ) | 3,488,000 | (4,353,000 | ) | |||||||
| Other | - | - | - | (10,000 | ) | ||||||||
| 1,621,000 | (4,907,000 | ) | 4,618,000 | (2,968,000 | ) | ||||||||
| Income (loss) before income tax expense (benefit) | 2,860,000 | (819,000 | ) | 4,799,000 | 2,292,000 | ||||||||
| Income tax expense (benefit) | 572,000 | (164,000 | ) | 960,000 | 458,000 | ||||||||
| Net income (loss) | ) | ||||||||||||
| Basic Income (Loss) per Common Share | ) | ||||||||||||
| Diluted Income (Loss) per Common Share | ) | ||||||||||||
| GENCOR INDUSTRIES, INC. Condensed Consolidated Balance Sheets | ||||||
ASSETS | March 31, 2021 (Unaudited) | September 30, 2020 | ||||
| Current assets: | ||||||
| Cash and cash equivalents | ||||||
| Marketable securities at fair value (cost of | 93,646,000 | 89,498,000 | ||||
| Accounts receivable, less allowance for doubtful accounts of March 31, 2021 and | 3,543,000 | 1,992,000 | ||||
| Costs and estimated earnings in excess of billings | - | 6,405,000 | ||||
| Inventories, net | 38,104,000 | 27,090,000 | ||||
| Prepaid expenses | 1,204,000 | 1,189,000 | ||||
| Total current assets | 165,914,000 | 161,758,000 | ||||
| Property and equipment, net | 12,252,000 | 8,341,000 | ||||
| Other long-term assets | 1,054,000 | 995,000 | ||||
| Total Assets | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | ||||||
| Customer deposits | 6,026,000 | 3,853,000 | ||||
| Accrued expenses | 3,134,000 | 2,605,000 | ||||
| Current operating lease liabilities | 412,000 | 328,000 | ||||
| Total current liabilities | 12,269,000 | 8,514,000 | ||||
Deferred and other income taxes | 1,247,000 | 746,000 | ||||
| Non-current operating lease liabilities | 589,000 | 614,000 | ||||
| Total liabilities | 14,105,000 | 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; | ||||||
| 12,298,337 shares and 12,287,337 shares issued and outstanding at March 31, 2021 and September 30, 2020, respectively | 1,230,000 | 1,229,000 | ||||
| Class B Stock, par value $.10 per share; 6,000,000 shares authorized; | ||||||
| 2,318,857 shares issued and outstanding at March 31, 2021 and September 30, 2020 | 232,000 | 232,000 | ||||
| Capital in excess of par value | 12,386,000 | 12,331,000 | ||||
| Retained earnings | 151,267,000 | 147,428,000 | ||||
| Total shareholders’ equity | 165,115,000 | 161,220,000 | ||||
| Total Liabilities and Shareholders’ Equity | ||||||
Caution Concerning Forward Looking Statements - This press release and our other communications and statements may contain “forward-looking statements,” including statements about our 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 our control. The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “goal,” and similar expressions are intended to identify forward-looking statements. All forward-looking statements, by their nature, are subject to risks and uncertainties. Our actual future results may differ materially from those set forth in our forward-looking statements. For information concerning these factors and related matters, see our Annual Report on Form 10-K for the year ended September 30, 2020; (a) “Risk Factors” in Part I, Item 1A and (b) “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7. However, other factors besides those referenced could adversely affect our 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 us herein speak as of the date of this press release. We do not undertake to update any forward-looking statement, except as required by law.
| Contact: | Eric Mellen, Chief Financial Officer |
| 407-290-6000 |
FAQ
What were Gencor Industries' earnings results for Q2 2021?
How did Gencor's revenue change in Q2 2021?
What is Gencor's current backlog as of March 31, 2021?
What are the key challenges reported by Gencor Industries?
