Gentex Reports First Quarter 2022 Financial Results
Gentex Corporation (NASDAQ: GNTX) reported first-quarter 2022 net sales of $468.3 million, down from $483.7 million in Q1 2021, affected by a 5% global decline in light vehicle production. Gross profit margin was 34.3%, a decrease from 37.9% a year ago, due to rising material and labor costs. Net income fell to $87.5 million from $113.5 million in Q1 2021, with EPS at $0.37 compared to $0.46. The company anticipates a 9% increase in light vehicle production for 2022, while navigating ongoing supply chain challenges and inflationary pressures.
- Forecasted revenue growth of 15% - 20% in 2023 compared to 2022 revenue guidance.
- FDM Launch for 12th and 13th OEM, increasing total nameplates to 70.
- Net sales decreased by $15.4 million compared to Q1 2021.
- Gross margin declined by 3.6 percentage points year-over-year.
- Operating expenses rose by 15% to $57.1 million.
- Auto-dimming mirror unit shipments decreased by 7% year-over-year.
ZEELAND, Mich., April 22, 2022 (GLOBE NEWSWIRE) -- Gentex Corporation (NASDAQ: GNTX), a leading supplier of digital vision, connected car, dimmable glass and fire protection technologies, today reported financial results for the three months ended March 31, 2022.
1st Quarter 2022 Summary
- Net sales of
$468.3 million - Gross profit margin of
34.3% - Net income of
$87.5 million - 2.44 million shares repurchased during the quarter
- FDM Launch for 12th and 13th OEM
- 5 New Nameplate Launches for FDM bringing total nameplates to 70
For the first quarter of 2022, the Company reported net sales of
For the first quarter of 2022, the gross margin was
Operating expenses during the first quarter of 2022 increased by
Income from operations for the first quarter of 2022 was
During the first quarter of 2022, the Company had an effective tax rate of
Net income was
Earnings per diluted share for the first quarter of 2022 were
Automotive net sales in the first quarter of 2022 were
Other net sales in the first quarter of 2022, which includes dimmable aircraft windows and fire protection products, was
Share Repurchases
During the first quarter of 2022, the Company repurchased 2.44 million shares of its common stock at an average price of
Future Estimates
The Company’s current forecasts for light vehicle production for the second quarter 2022, and full years 2022 and 2023, are based on the mid-April 2022 IHS Markit forecast for light vehicle production in North America, Europe, Japan/Korea and China. Light vehicle production in these markets is expected to be flat for the second quarter of 2022, versus light vehicle production for the second quarter of 2021. For calendar year 2022, light vehicle production in these markets is forecasted to increase
Light Vehicle Production (per IHS Markit mid-April light vehicle production forecast) | |||||||||||||
(in Millions) | |||||||||||||
Region | Q2 2022 | Q2 2021 | % Change | Calendar Year 2023 | Calendar Year 2022 | Calendar Year 2021 | 2023 vs 2022 % Change | 2022 vs 2021 % Change | |||||
North America | 3.59 | 3.19 | 13 | % | 16.49 | 14.75 | 13.05 | 12 | % | 13 | % | ||
Europe | 3.98 | 4.14 | (4 | )% | 18.31 | 16.49 | 13.02 | 11 | % | 27 | % | ||
Japan and Korea | 2.84 | 2.75 | 3 | % | 11.76 | 11.36 | 10.88 | 4 | % | 4 | % | ||
China | 5.50 | 5.79 | (5 | )% | 26.94 | 24.63 | 24.84 | 9 | % | (1 | )% | ||
Total Light Vehicle Production | 15.91 | 15.87 | — | % | 73.50 | 67.23 | 61.79 | 9 | % | 9 | % |
Based on this light vehicle production forecast, the Company is making no changes to its previously provided guidance for calendar year 2022 as shown in the table below.
2022 Guidance | |
Item | Amount |
Revenue | |
Gross Margin | |
Operating Expenses | |
Tax Rate | |
Capital Expenditures | |
Depreciation & Amortization |
Additionally, based on the Company’s forecasts for light vehicle production for calendar year 2023, the Company still expects calendar year 2023 revenue growth of approximately
“While we are optimistic given the sales level achieved during the first quarter and what we expect to be increased revenue levels throughout the remainder of the year, we have also seen increased levels of volatility in customer orders in recent weeks, stemming from the electronics supply chain shortages and OEM shut-downs. The Company has devoted significant resources to product re-engineering that has allowed us to maintain consistent supply to our customers and cleared the path for better revenue levels throughout 2022 and 2023. While the inflationary aspects of our business will continue to be a challenge over the next several quarters, we believe our recipe of out-growth versus the underlying vehicle production market will create record sales levels that will allow us to leverage our overhead to help offset some of the cost increases we have seen recently. We believe that this combination of record level sales when combined with our consistent and disciplined capital allocation philosophy will result in excellent shareholder returns over the next several years,” concluded Downing.
Safe Harbor for Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements contained in this communication that are not purely historical are forward-looking statements. Forward-looking statements give the Company’s current expectations or forecasts of future events. These forward-looking statements generally can be identified by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “future,” “goal,” “guidance,” “hope,” “intend,” “may,” “opinion,” “optimistic,” “plan,” “poised,” “predict,” “project,” “should,” “strategy,” “target,” “will,” and variations of such words and similar expressions. Such statements are subject to risks and uncertainties that are often difficult to predict and beyond the Company’s control, and could cause the Company’s results to differ materially from those described. These risks and uncertainties include, without limitation: changes in general industry or regional market conditions; changes in consumer and customer preferences for our products (such as cameras replacing mirrors and/or autonomous driving); our ability to be awarded new business; continued uncertainty in pricing negotiations with customers and suppliers; loss of business from increased competition; changes in strategic relationships; customer bankruptcies or divestiture of customer brands; fluctuation in vehicle production schedules (including the impact of customer employee strikes); changes in product mix; raw material and other supply shortages; labor shortages, supply chain constraints and disruptions; our dependence on information systems; higher raw material, fuel, energy and other costs; unfavorable fluctuations in currencies or interest rates in the regions in which we operate; costs or difficulties related to the integration and/or ability to maximize the value of any new or acquired technologies and businesses; changes in regulatory conditions; warranty and recall claims and other litigation and customer reactions thereto; possible adverse results of pending or future litigation or infringement claims; changes in tax laws; import and export duty and tariff rates in or with the countries with which we conduct business; negative impact of any governmental investigations and associated litigation including securities litigation relating to the conduct of our business; the length and severity of the COVID-19 (coronavirus) pandemic, including its impact across our business on demand, operations, and the global supply chain. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made.
The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law or the rules of the NASDAQ Global Select Market. Accordingly, any forward-looking statement should be read in conjunction with the additional information about risks and uncertainties identified under the heading “Risk Factors” in the Company’s latest Form 10-K and Form 10-Q filed with the SEC, which risks and uncertainties now include the impacts of COVID-19 (coronavirus) pandemic and supply chain constraints that have affected, and will continue to affect, general economic and industry conditions, customers, suppliers, and the regulatory environment in which the Company operates. Includes content supplied by IHS Markit Light Vehicle Production Forecast of April 19, 2022 (http://www.gentex.com/forecast-disclaimer).
First Quarter Conference Call
A conference call related to this news release will be simulcast live on the internet beginning at 9:30 a.m. ET, April 22, 2022. The dial-in number to participate in the call is 844-389-8658, passcode 9781438. Participants may listen to the call via audio streaming at www.gentex.com or by visiting https://edge.media-server.com/mmc/p/aoo6v993. A webcast replay will be available approximately 24 hours after the conclusion of the call at http://ir.gentex.com/events-and-presentations/upcoming-past-events.
About the Company
Founded in 1974, Gentex Corporation (The NASDAQ Global Select Market: GNTX) is a leading supplier of digital vision, connected car, dimmable glass and fire protection technologies. Visit the Company’s web site at www.gentex.com.
Contact Information:
Gentex Investor & Media Contact
Josh O'Berski
(616)772-1590 x5814
GENTEX CORPORATION
AUTO-DIMMING MIRROR SHIPMENTS
(Thousands)
Three Months Ended March 31, | ||||||
2022 | 2021 | % Change | ||||
North American Interior Mirrors | 2,161 | 2,073 | 4 | % | ||
North American Exterior Mirrors | 1,461 | 1,493 | (2 | )% | ||
Total North American Mirror Units | 3,623 | 3,566 | 2 | % | ||
International Interior Mirrors | 5,087 | 5,779 | (12 | )% | ||
International Exterior Mirrors | 2,293 | 2,436 | (6 | )% | ||
Total International Mirror Units | 7,380 | 8,215 | (10 | )% | ||
Total Interior Mirrors | 7,248 | 7,852 | (8 | )% | ||
Total Exterior Mirrors | 3,755 | 3,929 | (4 | )% | ||
Total Auto-Dimming Mirror Units | 11,003 | 11,780 | (7 | )% |
Note: Percent change and amounts may not total due to rounding.
GENTEX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) | ||||||
Three Months Ended March 31, | ||||||
2022 | 2021 | |||||
Net Sales | $ | 468,250,776 | $ | 483,724,839 | ||
Cost of Goods Sold | 307,838,816 | 300,424,671 | ||||
Gross Profit | 160,411,960 | 183,300,168 | ||||
Engineering, Research & Development | 31,974,987 | 27,652,081 | ||||
Selling, General & Administrative | 25,131,068 | 21,914,386 | ||||
Operating Expenses | 57,106,055 | 49,566,467 | ||||
Income from Operations | 103,305,905 | 133,733,701 | ||||
Other Income | (10,494 | ) | 1,533,035 | |||
Income before Income Taxes | 103,295,411 | 135,266,736 | ||||
Provision for Income Taxes | 15,766,785 | 21,815,866 | ||||
Net Income | $ | 87,528,626 | $ | 113,450,870 | ||
Earnings Per Share(1) | ||||||
Basic | $ | 0.37 | $ | 0.47 | ||
Diluted | $ | 0.37 | $ | 0.46 | ||
Cash Dividends Declared per Share | $ | 0.120 | $ | 0.120 | ||
(1) Earnings Per Share has been adjusted to exclude the portion of net income allocated to participating securities as a result of share-based payment awards. |
GENTEX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) | |||||
March 31, 2022 | December 31, 2021 | ||||
ASSETS | |||||
Cash and Cash Equivalents | $ | 279,708,413 | $ | 262,311,670 | |
Short-Term Investments | 6,891,621 | 5,423,612 | |||
Accounts Receivable, net | 281,461,678 | 249,794,906 | |||
Inventories | 362,736,521 | 316,267,442 | |||
Other Current Assets | 24,733,040 | 39,178,119 | |||
Total Current Assets | 955,531,273 | 872,975,749 | |||
Plant and Equipment - Net | 468,409,064 | 464,121,676 | |||
Goodwill | 313,928,914 | 313,960,209 | |||
Long-Term Investments | 175,824,026 | 207,693,147 | |||
Intangible Assets | 234,229,803 | 239,189,627 | |||
Patents and Other Assets | 32,459,405 | 33,450,758 | |||
Total Other Assets | 756,442,148 | 794,293,741 | |||
Total Assets | $ | 2,180,382,485 | $ | 2,131,391,166 | |
LIABILITIES AND SHAREHOLDERS' INVESTMENT | |||||
Current Liabilities | $ | 239,223,172 | $ | 181,656,100 | |
Other Non-current Liabilities | 12,190,413 | 11,746,599 | |||
Shareholders' Investment | 1,928,968,900 | 1,937,988,467 | |||
Total Liabilities & Shareholders' Investment | $ | 2,180,382,485 | $ | 2,131,391,166 |
FAQ
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