Gencor Releases Second Quarter Fiscal 2022 Results
Gencor Industries, Inc. (Nasdaq: GENC) reported net revenues of $30.7 million for Q2 2022, a significant increase of 43.6% compared to $21.4 million in Q2 2021. Despite this revenue growth, gross margins declined to 20.2% from 28.8% year-over-year due to rising manufacturing costs. Net income fell to $0.4 million ($0.03 per diluted share) from $2.3 million ($0.16 per diluted share). The company held $117.1 million in cash and marketable securities while maintaining a backlog of $44.9 million.
- Net revenues increased by 43.6% year-over-year.
- Operating income rose to $1.9 million, up from $1.2 million.
- Gross margins decreased from 28.8% to 20.2%.
- Net income declined from $2.3 million to $0.4 million.
- Non-operating expenses showed a significant loss of $1.3 million compared to a gain of $1.6 million in the prior year.
ORLANDO, Fla., May 13, 2022 (GLOBE NEWSWIRE) -- Gencor Industries, Inc. (Nasdaq: GENC) announced today net revenues of
Product engineering and development expenses decreased
Operating income increased from
For the quarter ended March 31, 2022, the Company had net non-operating expense of
The effective income tax rate for the quarter ended March 31, 2022 was
For the six months ended March 31, 2022 the Company had net revenue of
At March 31, 2022, the Company had
The Company’s backlog was
Marc Elliott, Gencor’s President, commented, “Gencor delivered solid second quarter results considering the current challenging business environment. Revenues increased
Every employee at Gencor is focused on overcoming the current supply chain challenges to minimize delivery interruptions to our customers. The recent World of Asphalt show in March generated very positive feedback from our loyal customers following a prolonged pandemic and virtually dormant tradeshow circuit. We continue to see strong interest across all our product lines and are optimistic that Gencor will benefit from the Federal infrastructure bill in the coming years.”
Gencor Industries, Inc. 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 Income Statements (Unaudited) | |||||||||||||
| For the Quarters Ended March 31, | For the Six Months Ended March 31, | ||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||
| Net revenue | $ | 30,654,000 | $ | 21,352,000 | $ | 50,760,000 | $ | 40,316,000 | |||||
| Cost of goods sold | 24,462,000 | 15,206,000 | 40,863,000 | 31,189,000 | |||||||||
| Gross profit | 6,192,000 | 6,146,000 | 9,897,000 | 9,127,000 | |||||||||
| Operating expenses: | |||||||||||||
| Product engineering and development | 920,000 | 1,069,000 | 2,269,000 | 1,914,000 | |||||||||
| Selling, general and administrative | 3,364,000 | 3,838,000 | 6,763,000 | 7,032,000 | |||||||||
| Total operating expenses | 4,284,000 | 4,907,000 | 9,032,000 | 8,946,000 | |||||||||
| Operating income | 1,908,000 | 1,239,000 | 865,000 | 181,000 | |||||||||
| Other income (expense), net: | |||||||||||||
| Interest and dividend income, net of fees | 296,000 | 327,000 | 573,000 | 1,130,000 | |||||||||
| Net realized and unrealized gains (losses) on marketable securities, net | (1,488,000 | ) | 1,294,000 | (1,065,000 | ) | 3,488,000 | |||||||
| Other | (137,000 | ) | - | (137,000 | ) | - | |||||||
| (1,329,000 | ) | 1,621,000 | (629,000 | ) | 4,618,000 | ||||||||
| Income before income tax expense | 579,000 | 2,860,000 | 236,000 | 4,799,000 | |||||||||
| Income tax expense | 140,000 | 572,000 | 71,000 | 960,000 | |||||||||
| Net income | $ | 439,000 | $ | 2,288,000 | $ | 165,000 | $ | 3,839,000 | |||||
| Basic income per common share | $ | 0.03 | $ | 0.16 | $ | 0.01 | $ | 0.26 | |||||
| Diluted income per common share | $ | 0.03 | $ | 0.16 | $ | 0.01 | $ | 0.26 | |||||
| GENCOR INDUSTRIES, INC. Condensed Consolidated Balance Sheets | |||||
| ASSETS | March 31, 2022 (Unaudited) | September 30, 2021 | |||
| Current assets: | |||||
| Cash and cash equivalents | $ | 22,571,000 | $ | 23,232,000 | |
| Marketable securities at fair value (cost of | 94,501,000 | 94,976,000 | |||
| Accounts receivable, less allowance for doubtful accounts of March 31, 2022 and | 3,924,000 | 2,622,000 | |||
| Costs and estimated earnings in excess of billings | 1,629,000 | 1,903,000 | |||
| Inventories, net | 47,222,000 | 41,888,000 | |||
| Prepaid expenses and other current assets | 3,756,000 | 2,202,000 | |||
| Total current assets | 173,603,000 | 166,823,000 | |||
| Property and equipment, net | 12,205,000 | 11,801,000 | |||
| Other long-term assets | 711,000 | 838,000 | |||
| Total Assets | $ | 186,519,000 | $ | 179,462,000 | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | $ | 5,741,000 | $ | 3,105,000 | |
| Customer deposits | 10,286,000 | 5,244,000 | |||
| Accrued expenses | 2,442,000 | 2,645,000 | |||
| Current operating lease liabilities | 407,000 | 393,000 | |||
| Total current liabilities | 18,876,000 | 11,387,000 | |||
| Deferred and other income taxes | - | 394,000 | |||
| Non-current operating lease liabilities | 189,000 | 392,000 | |||
| Total liabilities | 19,065,000 | 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 March 31, 2022 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 March 31, 2022 and September 30, 2021 | 232,000 | 232,000 | |||
| Capital in excess of par value | 12,590,000 | 12,590,000 | |||
| Retained earnings | 153,398,000 | 153,233,000 | |||
| Total shareholders’ equity | 167,454,000 | 167,289,000 | |||
| Total Liabilities and Shareholders’ Equity | $ | 186,519,000 | $ | 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, 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
What were Gencor Industries' earnings for Q2 2022?
How did Gencor Industries' revenues change in Q2 2022?
What is the current backlog for Gencor Industries?
What financial challenges did Gencor face in Q2 2022?
