Gencor Releases Third Quarter Fiscal 2020 Results
Gencor Industries (GENC) reported net revenues of $22.9 million for the quarter ending June 30, 2020, an increase from $18.8 million in the previous year. Net income rose to $4.3 million ($0.29 per diluted share), compared to $2.4 million ($0.17 per diluted share) in Q2 2019. Although gross margins decreased to 23.5% from 25.2% due to more revenue from lower-margin plant and equipment sales, operating income surged by 44.1% to $2.0 million. The company's cash and marketable securities totalled $124.2 million at June 30, 2020, with no debt outstanding.
- Net revenues increased by 21.7% year-over-year, reflecting strong demand.
- Operating income rose by 44.1% to $2.0 million, indicating improved profitability.
- Net income increased to $4.3 million, showcasing resilience in challenging market conditions.
- Cash and marketable securities totaled $124.2 million with no debt, providing financial stability.
- Gross margins decreased to 23.5% from 25.2%, affecting overall profitability.
- Net income for nine months fell to $6.2 million from $10.2 million in the prior year, indicating a year-over-year decline.
ORLANDO, Fla., Aug. 06, 2020 (GLOBE NEWSWIRE) -- Gencor Industries, Inc. (Nasdaq: GENC) announced today net revenues of
For the quarter ended June 30, 2020, the Company had non-operating income of
For the nine months ended June 30, 2020 the Company reported net revenue of
At June 30, 2020, the Company had
The Company’s backlog was
John Elliott, Gencor’s CEO, stated, “Gencor performed well in this challenging market environment associated with the COVID-19 pandemic. We continue to demonstrate the operating durability of our business as well as our ability to achieve solid profitability and cash flow. While there is still significant uncertainty around demand, the shape of the economic recovery and the continued impact of the pandemic, we are encouraged by the results we have achieved in the first six months of the calendar year.
Third quarter fiscal 2020 revenues were well above third quarter of fiscal 2019. Production and deliveries were minimally affected by COVID-19-related precautions in the current quarter.
The FAST Act is scheduled to expire in September 2020. Currently there is no replacement or extension of the FAST Act. While the economic outlook remains uncertain, by producing in line with customer demand and aggressively managing costs, I am confident Gencor will successfully navigate these challenging times.”
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 Income (Unaudited) | |||||||||||||
| | For the Quarters Ended June 30, | For the Nine Months Ended June 30, | |||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||
| Net revenue | |||||||||||||
| Costs and expenses: | |||||||||||||
| Production costs | 17,555,000 | 14,098,000 | 49,920,000 | 47,267,000 | |||||||||
| Product engineering and development | 849,000 | 881,000 | 2,304,000 | 2,427,000 | |||||||||
| Selling, general and administrative | 2,522,000 | 2,471,000 | 7,465,000 | 7,135,000 | |||||||||
| 20,926,000 | 17,450,000 | 59,689,000 | 56,829,000 | ||||||||||
| Operating income | 2,014,000 | 1,398,000 | 7,274,000 | 10,016,000 | |||||||||
| Other income (expense), net: | |||||||||||||
| Interest and dividend income, net of fees | 512,000 | 567,000 | 1,907,000 | 1,608,000 | |||||||||
| Net realized and unrealized gains (losses) on marketable securities | 2,888,000 | 1,090,000 | (1,465,000) | 1,147,000 | |||||||||
| Other | (10,000) | - | (20,000) | - | |||||||||
| 3,390,000 | 1,657,000 | 422,000 | 2,755,000 | ||||||||||
| Income before income tax expense | 5,404,000 | 3,055,000 | 7,696,000 | 12,771,000 | |||||||||
| Income tax expense | 1,082,000 | 611,000 | 1,540,000 | 2,554,000 | |||||||||
| Net income | |||||||||||||
| Basic Income per Common Share: | |||||||||||||
| Net income per share | |||||||||||||
| Diluted Income per Common Share: | |||||||||||||
| Net income per share | |||||||||||||
| GENCOR INDUSTRIES, INC. Condensed Consolidated Balance Sheets | |||||
| June 30, | September 30, | ||||
| 2020 | 2019 | ||||
| ASSETS | (Unaudited) | ||||
| Current Assets: | |||||
| Cash and cash equivalents | |||||
| Marketable securities at fair value (cost and | 105,675,000 | 105,322,000 | |||
| Accounts receivable, less allowance for doubtful accounts of June 30, 2020 and | 1,609,000 | 1,603,000 | |||
| Costs and estimated earnings in excess of billings | 10,064,000 | 13,838,000 | |||
| Inventories, net | 24,562,000 | 25,366,000 | |||
| Prepaid expenses and other current assets | 1,649,000 | 499,000 | |||
| Total Current Assets | 162,123,000 | 156,930,000 | |||
| Property and equipment, net | 8,391,000 | 8,389,000 | |||
| Other assets | 53,000 | 53,000 | |||
| Total Assets | |||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
| Current Liabilities: | |||||
| Accounts payable | |||||
| Customer deposits | 2,651,000 | 1,918,000 | |||
| Accrued expenses and other current liabilities | 2,694,000 | 2,660,000 | |||
| Total Current Liabilities | 7,434,000 | 6,485,000 | |||
| Deferred and other income taxes | 1,306,000 | 3,372,000 | |||
| Total Liabilities | 8,740,000 | 9,857,000 | |||
| 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; | |||||
| 12,287,337 shares issued and outstanding at June 30, 2020 and 12,277,337 shares issued and outstanding at September 30, 2019 | 1,229,000 | 1,228,000 | |||
| Class B Stock, par value $.10 per share; 6,000,000 shares authorized; | |||||
| 2,318,857 shares issued and outstanding at June 30, 2020 and 2,308,857 shares issued and outstanding at September 30, 2019 | 232,000 | 231,000 | |||
| Capital in excess of par value | 12,313,000 | 12,159,000 | |||
| Retained earnings | 148,053,000 | 141,897,000 | |||
| Total Shareholders’ Equity | 161,827,000 | 155,515,000 | |||
| 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 Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, and Part II, Item 1A, “Risk Factors” in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, and the following sections of the Company’s Annual Report on Form 10-K for the year ended September 30, 2019: (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.
Eric Mellen, Chief Financial Officer
407-290-6000
FAQ
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