• Gencor Releases Second Quarter Fiscal 2017 Results

    ソース: Nasdaq GlobeNewswire / 05 5 2017 13:01:31   Europe/London

    ORLANDO, Fla., May 05, 2017 (GLOBE NEWSWIRE) -- Gencor Industries, Inc. (Nasdaq:GENC) announced today net revenue for the quarter ended March 31, 2017 increased $448,000 to $22.5 million from $22.1 million for the quarter ended March 31, 2016.  Gross margin was 29.6% for the quarter ended March 31, 2017 compared with 24.6% for the quarter ended March 31, 2016.  Selling, general and administrative expenses decreased $63,000 to $2,127,000 for the quarter ended March 31, 2017, from $2,190,000 for the quarter ended March 31, 2016. Operating income for the quarter ended March 31, 2017 was $4.1 million compared to $2.9 million for the quarter ended March 31, 2016.

    The Company had non-operating income of $0.8 million for the quarter ended March 31, 2017 compared to non-operating expense of $(0.3) million for the quarter ended March 31, 2016.  Net income was $3.4 million, or $0.24 per basic share and $0.23 per diluted share, for the quarter ended March 31, 2017, compared to $1.6 million, or $0.11 per basic and diluted share, for the quarter ended March 31, 2016.

    For the six months ended March 31, 2017 the Company had net revenue of $38.3 million and net income of $4.8 million ($0.33 per basic share and diluted share) versus net revenue of $35.3 million and net income of $3.2 million ($0.22 per basic and diluted share) for the six months ended March 31, 2016.

    At March 31, 2016, the Company had $114.2 million of cash and marketable securities compared to $104.2 million at September 30, 2016.  Net working capital was $120.5 million at March 31, 2017.  The Company has no short or long term debt.

    John E. Elliott, Gencor’s CEO, commented, “We are pleased with the company’s continued strong performance.  We have been expanding our manufacturing production to meet the increasing demand for our equipment, without sacrificing operating income.

    Second quarter net revenues of $22.5 million do not include $4.1 million of revenues that will be recognized in the third quarter.  These revenues include product that was finished but not shipped until April and contracts that did not reach the required percentage of completion level to be recognized in the quarter. 

    Despite higher steel prices, gross margins significantly improved to 29.6% from 24.6%.  The 500 basis point increase is attributable to a more efficient operation and full absorption of overhead.  Operating margins of 18.0% are the highest quarterly margins in the Company’s history.  Gencor is benefiting from a dedicated and well-trained workforce, producing equipment that has a reputation for superior quality.

    The March ConExpo-Con/Agg show was a tremendous success, generating strong leads some of which have closed and others we expect to close.  Backlog of $42.9 million increased 35% year to year and is at the same level we otherwise started the fiscal year.  Historically, backlog declines in our second and third quarters as orders are usually filled and new orders are not received until the fall and early winter months.

    The Company will continue to increase production and efficiency at both of its facilities and augment its workforce over the next few quarters by investing in technology which will enhance production in a number of areas.”

    Gencor Industries is a diversified heavy machinery manufacturer of equipment used in the production of highway construction materials, synthetic fuels, and environmental control machinery and equipment used in a variety of industrial applications. 

    Condensed Consolidated Statements of Income
     For the Quarters Ended
    March 31,
     For the Six Months Ended
    March 31,
     2017 2016  2017 2016
    Net revenue$22,526,000 $22,078,000  $38,309,000 $35,336,000
    Costs and expenses:       
    Production costs 15,869,000  16,637,000   27,502,000  26,613,000
    Product engineering and development 470,000  379,000   886,000  761,000
    Selling, general and administrative 2,127,000  2,190,000   4,317,000  3,975,000
      18,466,000  19,206,000   32,705,000  31,349,000
    Operating income 4,060,000  2,872,000   5,604,000  3,987,000
    Other income (expense), net:       
    Interest and dividend income, net of fees 162,000  204,000   203,000  589,000
    Net realized and unrealized gains (losses) on marketable securities     656,000  (490,000)  1,063,000  103,000
    Other -  1,000   -  2,000
      818,000  (285,000)  1,266,000  694,000
    Income before income tax expense 4,878,000  2,587,000   6,870,000  4,681,000
    Income tax expense 1,463,000  957,000   2,061,000  1,476,000
    Net income$3,415,000 $1,630,000  $4,809,000 $3,205,000
    Basic Income per Common Share:       
    Net income per share *$0.24 $0.11  $0.33 $0.22
    Diluted Income per Common Share:       
    Net income per share *$0.23 $0.11  $0.33 $0.22

             * Prior year adjusted for three-for-two stock split

    Condensed Consolidated Balance Sheets

     March 31, September 30,
     2017 2016
    Current Assets:   
    Cash and cash equivalents$27,036,000 $18,219,000
    Marketable securities at fair value (cost $87,004,000 at March 31, 2017
      and $86,203,000 at September 30, 2016)
     87,204,000  85,938,000
    Accounts receivable, less allowance for doubtful accounts of $217,000 at
      March 31, 2017 and $195,000 at September 30, 2016
     1,692,000  1,110,000
    Costs and estimated earnings in excess of billings 1,680,000  4,921,000
    Inventories, net 14,598,000  11,634,000
    Prepaid expenses and other current assets 1,289,000  1,598,000
    Total Current Assets 133,499,000  123,420,000
    Property and equipment, net 5,054,000  5,239,000
    Other assets 53,000  53,000
    Total Assets$138,606,000 $128,712,000

    Current Liabilities:   
    Accounts payable$3,141,000 $1,443,000
    Customer deposits 7,279,000  4,484,000
    Accrued expenses 2,614,000  2,264,000
    Total Current Liabilities 13,034,000  8,191,000
    Deferred and other income taxes 424,000  316,000
    Total Liabilities 13,458,000  8,507,000
    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;   
    12,130,329 and 12,111,079 shares issued and outstanding at March 31,
     2017 and September 30, 2016, respectively
     1,213,000  1,211,000
    Class B Stock, par value $.10 per share; 6,000,000 shares authorized;   
    2,263,857 shares issued and outstanding 226,000  226,000
    Capital in excess of par value 11,019,000  10,887,000
    Retained earnings 112,690,000  107,881,000
     Total Shareholders’ Equity 125,148,000  120,205,000
     Total Liabilities and Shareholders’ Equity$138,606,000 $128,712,000

    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, 2016; (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.

    Eric Mellen, Chief Financial Officer