Gencor Releases Third Quarter Fiscal 2022 Results
Gencor Industries reported net revenues of $29.6 million for Q3 2022, up from $24.9 million in Q3 2021. Despite increased sales, gross margins declined to 19.2% from 22.5% year-over-year due to higher manufacturing costs. Operating income rose to $2.2 million from $1.2 million amidst reduced expenses. However, the company faced a net loss of $1.0 million compared to $2.3 million profit last year, mainly due to significant investment losses in a challenging economic context. Cash and marketable securities totaled $110.6 million.
- Net revenues increased by 19% year-over-year, reflecting strong sales performance.
- Operating income rose to $2.2 million, indicating improved operational efficiency.
- Backlog increased to $40.2 million, suggesting strong future demand.
- Gross margins decreased to 19.2%, impacted by rising manufacturing costs.
- Net loss of $1.0 million reported, a significant decline from last year's profit.
- Non-operating expenses of $3.4 million reflect investment losses in declining equity markets.
ORLANDO, Fla., Aug. 12, 2022 (GLOBE NEWSWIRE) -- Gencor Industries, Inc. (the “Company” or “Gencor”) (NYSE American: GENC) announced today net revenues of
Product engineering and development expenses decreased
Operating income increased from
For the quarter ended June 30, 2022, the Company had net non-operating expense of
The effective income tax rate for the quarter ended June 30, 2022 was a benefit of
For the nine months ended June 30, 2022 the Company had net revenue of
At June 30, 2022, the Company had
The Company’s backlog was
Marc Elliott, Gencor’s President, commented, “Our sales were up across the board in the fiscal third quarter and for the nine months, when compared to similar periods in fiscal year 2021. Despite delays in Federal highway funding from the Infrastructure Investment and Jobs Act (IIJA) that were expected to begin in 2022, overall, Gencor delivered another solid quarter from operations, under a challenging business environment. Revenues increased
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 Statements of Operations (Unaudited) | |||||||||||||
| For the Quarters Ended June 30, | For the Nine Months Ended June 30, | ||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||
| Net revenue | $ | 29,647,000 | $ | 24,919,000 | $ | 80,407,000 | $ | 65,235,000 | |||||
| Cost of goods sold | 23,968,000 | 19,314,000 | 64,831,000 | 50,504,000 | |||||||||
| Gross profit | 5,679,000 | 5,605,000 | 15,576,000 | 14,731,000 | |||||||||
| Operating expenses: | |||||||||||||
| Product engineering and development | 951,000 | 1,176,000 | 3,219,000 | 3,089,000 | |||||||||
| Selling, general and administrative | 2,577,000 | 3,202,000 | 9,340,000 | 10,235,000 | |||||||||
| Total operating expenses | 3,528,000 | 4,378,000 | 12,559,000 | 13,324,000 | |||||||||
| Operating income | 2,151,000 | 1,227,000 | 3,017,000 | 1,407,000 | |||||||||
| Other income (expense), net: | |||||||||||||
| Interest and dividend income, net of fees | 304,000 | 306,000 | 877,000 | 1,437,000 | |||||||||
| Net realized and unrealized gains (losses) on marketable securities, net | (3,693,000 | ) | 1,386,000 | (4,758,000 | ) | 4,873,000 | |||||||
| Other | (1,000 | ) | - | (139,000 | ) | - | |||||||
| Total other income (expense), net | (3,390,000 | ) | 1,692,000 | (4,020,000 | ) | 6,310,000 | |||||||
| Income (loss) before income tax expense (benefit) | (1,239,000 | ) | 2,919,000 | (1,003,000 | ) | 7,717,000 | |||||||
| Income tax expense (benefit) | (224,000 | ) | 584,000 | (153,000 | ) | 1,543,000 | |||||||
| Net income (loss) | $ | (1,015,000 | ) | $ | 2,335,000 | $ | (850,000 | ) | $ | 6,174,000 | |||
| Basic Income (Loss) per Common Share: | |||||||||||||
| Net income (loss) per share | $ | (0.07 | ) | $ | 0.16 | $ | (0.06 | ) | $ | 0.42 | |||
| Diluted Income (Loss) per Common Share: | |||||||||||||
| Net income (loss) per share | $ | (0.07 | ) | $ | 0.16 | $ | (0.06 | ) | $ | 0.42 | |||
| GENCOR INDUSTRIES, INC. Condensed Consolidated Balance Sheets | |||||
| ASSETS | June 30, 2022 (Unaudited) | September 30, 2021 | |||
| Current assets: | |||||
| Cash and cash equivalents | $ | 19,474,000 | $ | 23,232,000 | |
| Marketable securities at fair value (cost of | 91,116,000 | 94,976,000 | |||
| Accounts receivable, less allowance for doubtful accounts of | 4,198,000 | 2,622,000 | |||
| Costs and estimated earnings in excess of billings | 1,366,000 | 1,903,000 | |||
| Inventories, net | 48,244,000 | 41,888,000 | |||
| Prepaid expenses and other current assets | 3,720,000 | 2,202,000 | |||
| Total current assets | 168,118,000 | 166,823,000 | |||
| Property and equipment, net | 11,919,000 | 11,801,000 | |||
| Deferred and other income taxes | 783,000 | - | |||
| Other long-term assets | 550,000 | 838,000 | |||
| Total Assets | $ | 181,370,000 | $ | 179,462,000 | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | $ | 5,001,000 | $ | 3,105,000 | |
| Customer deposits | 7,436,000 | 5,244,000 | |||
| Accrued expenses | 1,997,000 | 2,645,000 | |||
| Current operating lease liabilities | 413,000 | 393,000 | |||
| Total current liabilities | 14,847,000 | 11,387,000 | |||
| Deferred and other income taxes | - | 394,000 | |||
| Non-current operating lease liabilities | 84,000 | 392,000 | |||
| Total liabilities | 14,931,000 | 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 June 30, 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 June 30, 2022 and September 30, 2021 | 232,000 | 232,000 | |||
| Capital in excess of par value | 12,590,000 | 12,590,000 | |||
| Retained earnings | 152,383,000 | 153,233,000 | |||
| Total shareholders’ equity | 166,439,000 | 167,289,000 | |||
| Total Liabilities and Shareholders’ Equity | $ | 181,370,000 | $ | 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.
Contact:
Eric Mellen, Chief Financial Officer
407-290-6000
FAQ
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