• Gencor Releases Second Quarter Fiscal 2019 Results

    来源: Nasdaq GlobeNewswire / 03 五月 2019 07:00:01   America/New_York

    ORLANDO, Fla., May 03, 2019 (GLOBE NEWSWIRE) -- Gencor Industries, Inc. (Nasdaq: GENC) announced today net revenues of $26.7 million for the quarter ended March 31, 2019 compared to $30.8 million for the quarter ended March 31, 2018.  Gross margins increased 880 basis points to 37.2% for the quarter ended March 31, 2019 from 28.4% for the quarter ended March 31, 2018, as a result of the Company’s cost management and operational improvements implemented over the past few years, along with an improved pricing environment and an increase in parts sales. Product engineering and development expenses increased $65,000 to $823,000 for the quarter ended March 31, 2019. Selling, general and administrative (“SG&A”) expenses decreased $447,000 to $2,474,000 for the quarter ended March 31, 2019. Reduced sales commissions and advertising and trade show expenses resulted in the decrease in SG&A expenses.  Operating income for the quarter ended March 31, 2019 was up 30% to $6.6 million compared with $5.1 million for the quarter ended March 31, 2018.

    For the quarter ended March 31, 2019, the Company had non-operating income of $2.7 million compared to non-operating expense of $0.3 million for the quarter ended March 31, 2018.  Included in non-operating income for the quarter ended March 31, 2019 were net realized and unrealized gains on marketable securities of $2,204,000, due to the increase in the domestic equity markets in the second quarter of fiscal 2019.  The effective income tax rate for the quarter ended March 31, 2019 was 20.0% versus 20.9% for the quarter ended March 31, 2018 reflecting the lower corporate tax rates to comply with the recently enacted U.S. tax law, Tax Cuts and Jobs Act (“TCJA”). Net income for the quarter ended March 31, 2019 was up 98% to $7.5 million, or $0.51 per diluted share, compared with net income of $3.8 million, or $0.26 per diluted share for the quarter ended March 31, 2018.

    For the six months ended March 31, 2019 the Company had net revenue of $48.0 million and net income of $7.8 million ($0.53 per diluted share) versus net revenue of $54.0 million and net income of $6.1 million ($0.41 per diluted share) for the six months ended March 31, 2018.

    At March 31, 2019, the Company had $114.7 million of cash and marketable securities compared to $112.1 million at September 30, 2018. Net working capital was $143.8 million at March 31, 2019.  The Company had no short-term or long-term debt outstanding at March 31, 2019.

    The Company’s backlog was $24.2 million at March 31, 2019 compared to $45.6 million at March 31, 2018.

    John Elliott, Gencor’s CEO, commented, “Second quarter activity levels were moderately lower compared to the second quarter of fiscal 2018, when we realized record quarterly revenues of $30.8 million.  Although revenues were lower, we were able to achieve record gross margins and operating margins in the quarter and first half of fiscal 2019. 

    Our profit improvement was the result of a favorable pricing environment, stable steel prices, solid execution in production, and continued effective cost management.

    Gencor’s business has normalized from the record volumes in fiscal 2018.  Our customers are busy and benefitting from both the FAST Act and the numerous states that have increased their infrastructure funding and spending. We anticipate asphalt plant orders to follow the seasonal pattern of prior years where a majority of the plant sales occurred in the fall and winter months.

    Gencor received a higher than normal level of interest at the World of Asphalt show in February.  We expect to close a couple of the quotes in the next few months.

    We have been developing a new product line which should expand our customer base and geographic reach in the future. I am proud of the hard work and dedication of our Gencor employees that delivered these solid results. We continue to identify opportunities to improve our execution and remain focused on delivering strong performance.”

    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
    March 31,
     For the Six Months Ended
    March 31,
     2019 2018  2019 2018 
            
    Net revenue$26,670,000 $30,829,000  $47,997,000 $53,951,000 
    Costs and expenses:       
    Production costs 16,759,000  22,059,000   33,169,000  40,098,000 
    Product engineering and development 823,000  758,000   1,546,000  1,458,000 
    Selling, general and administrative 2,474,000  2,921,000   4,664,000  5,613,000 
      20,056,000  25,738,000   39,379,000  47,169,000 
            
    Operating income 6,614,000  5,091,000   8,618,000  6,782,000 
            
    Other income (expense), net:       
    Interest and dividend income, net of fees 507,000  383,000   1,041,000  676,000 
    Net realized and unrealized gains (losses) on marketable securities 2,204,000  (719,000)  57,000  (558,000)
    Other -  3,000   -  7,000 
      2,711,000  (333,000)  1,098,000  125,000 
            
    Income before income tax expense 9,325,000  4,758,000   9,716,000  6,907,000 
    Income tax expense 1,865,000  994,000   1,943,000  797,000 
    Net income$7,460,000 $3,764,000  $7,773,000 $6,110,000 
            
    Basic Income per Common Share:       
    Net income per share$0.51 $0.26  $0.53 $0.42 
            
    Diluted Income per Common Share:       
    Net income per share$0.51 $0.26  $0.53 $0.41 
            
     


    GENCOR INDUSTRIES, INC.
    Condensed Consolidated Balance Sheets 
        
     March 31, September 30,
     2019 2018
    ASSETS(Unaudited)  
    Current Assets:   
    Cash and cash equivalents$11,586,000 $8,012,000
    Marketable securities at fair value (cost $103,629,000 at March 31, 2019 
    and $103,751,000 at September 30, 2018)
     103,156,000  104,058,000
    Accounts receivable, less allowance for doubtful accounts of $285,000 at
    March 31, 2019 and $313,000 at September 30, 2018
     2,412,000  993,000
    Costs and estimated earnings in excess of billings 14,013,000  11,900,000
    Inventories, net 20,139,000  18,214,000
    Prepaid expenses and other current assets 926,000  1,904,000
    Total Current Assets 152,232,000  145,081,000
        
    Property and equipment, net 8,366,000  7,889,000
    Other assets 53,000  53,000
    Total Assets$160,651,000 $153,023,000
     

    LIABILITIES AND SHAREHOLDERS’ EQUITY
       
    Current Liabilities:   
    Accounts payable$2,155,000 $1,838,000
    Customer deposits 4,020,000  4,563,000
    Accrued expenses 2,287,000  2,085,000
    Total Current Liabilities 8,462,000  8,486,000
        
    Deferred and other income taxes 2,202,000  2,358,000
    Total Liabilities 10,664,000  10,844,000
        
    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;   
    12,252,337 shares issued and outstanding at March 31, 2019 and 
    September 30, 2018
     1,225,000  1,225,000
    Class B Stock, par value $.10 per share; 6,000,000 shares authorized;   
    2,288,857 shares issued and outstanding at March 31, 2019 and
    September 30, 2018
     229,000  229,000
    Capital in excess of par value 11,897,000  11,862,000
    Retained earnings 136,636,000  128,863,000
    Total Shareholders’ Equity 149,987,000  142,179,000
    Total Liabilities and Shareholders’ Equity$160,651,000 $153,023,000
        

    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, 2018; (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

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