SOURCE: Gentex Corporation

Gentex Corporation

January 28, 2016 08:00 ET

Gentex Reports Fourth Quarter and Year End 2015 Financial Results

ZEELAND, MI--(Marketwired - Jan 28, 2016) -  Gentex Corporation (NASDAQ: GNTX), the Zeeland, Michigan-based manufacturer of automotive automatic-dimming rearview mirrors, automotive electronics, dimmable aircraft windows, and fire protection products, today reported financial results for the fourth quarter and calendar year ended December 31, 2015.

4th Quarter and Calendar Year 2015 Highlights

  • Unit shipment growth of 17% quarter over quarter and 14% year over year
  • Revenue growth of 16% quarter over quarter and 12% year over year
  • Gross Margin increased from 38.4% to 40.2% quarter over quarter
  • Net Income increased by 25% quarter over quarter and 10% year over year
  • Earnings per Diluted Share increased by 25% quarter over quarter to $.30 per diluted share and increased by 10% year over year to $1.08 per diluted share
  • 1.8 million shares repurchased during the quarter and 6.7 million shares repurchased during the year

For the fourth quarter of 2015, the Company is pleased to report net sales of $405.6 million, an increase of 16% compared to net sales of $350.4 million for the fourth quarter of 2014. The increase was primarily due to a 17% increase in auto-dimming interior and exterior rearview mirror shipments on a quarter over quarter basis. For calendar year 2015, the Company's net sales increased 12% to $1.54 billion compared to $1.38 billion for calendar year 2014 as a result of a 14% increase in auto-dimming interior and exterior mirror unit shipments.

The gross profit margin in the fourth quarter of 2015 was 40.2% compared with a gross profit margin of 38.4% in the fourth quarter of 2014. The improvement in gross profit margin was primarily due to purchasing cost reductions and the Company's ability to leverage fixed overhead costs, which were partially offset by annual customer price reductions. The gross profit margin for calendar year 2015 was 39.1%, compared with a gross profit margin of 39.2% for calendar year 2014. Gross profit margin was primarily impacted by annual customer price reductions and foreign currency fluctuations, which were offset by purchasing cost reductions and product mix.

Net income for the fourth quarter of 2015 was $88.4 million, up 25% compared with net income of $71.0 million in the fourth quarter of 2014. Net income in calendar year 2015 was $318.5 million, up 10% compared with net income of $288.6 million in calendar year 2014.

Earnings per diluted share in the fourth quarter of 2015 were $0.30, compared with earnings per diluted share of $0.24 in the fourth quarter of 2014. Earnings per diluted share were $1.08 for calendar year 2015, compared with $0.98 for calendar year 2014, which reflects the December 31, 2014 stock split, effected in the form of a 100% stock dividend.

Automotive auto-dimming unit shipments in the fourth quarter of 2015 increased 17% compared with the fourth quarter of 2014 and for calendar year 2015 increased 14% compared to calendar year 2014. Automotive net sales in the fourth quarter of 2015 were $395.9 million, up 16% compared with $342.4 million in the fourth quarter of 2014, and for calendar year 2015 were $1.51 billion, up 12% compared with $1.34 billion in calendar year 2014.

Other net sales, which include dimmable aircraft windows and fire protection products, were $9.7 million in the fourth quarter of 2015, up 22% compared with $8.0 million in the fourth quarter of 2014, and for calendar year 2015 were $36.7 million, up 4% compared with $35.4 million in calendar year 2014.

Share Repurchases

The Company repurchased approximately 1.8 million shares of its common stock during the fourth quarter of 2015 and for the year ended December 31, 2015, the Company repurchased approximately 6.7 million shares of its common stock pursuant to its previously announced share repurchase plan. As of December 31, 2015, the Company has approximately 4.6 million shares remaining available for repurchase in the plan. The Company intends to continue to repurchase additional shares of its common stock in the future depending on macroeconomic issues, market trends and other factors that the Company deems appropriate.

Future Estimates

The Company's forecasts for light vehicle production for calendar year 2016 and 2017 are based on the IHS Automotive January 2016 forecast for light vehicle production in North America, Europe, Japan and Korea. Based on the following light vehicle production forecasts, the Company is also giving 2016 and 2017 production, annual guidance for 2016 and revenue guidance for 2017:

   
Light Vehicle Production (per IHS Automotive January light vehicle production forecast)  
(in Millions)  
Region Calendar Year 2017   Calendar Year 2016   Calendar Year 2015   2017 vs. 2016 % Change     2016 vs. 2015 % Change  
North America 18.5   18.2   17.5   2 %   4 %
Europe 21.7   21.2   20.9   2 %   1 %
Japan and Korea 13.1   13.3   13.2   (2 )%   1 %
Total Light Vehicle Production 53.3   52.7   51.6   1 %   2 %
                       
2016 Guidance
Revenue $1.64 - $1.72 billion
Gross Margin 38.5% - 39.5%
Operating Expenses (E, R&D and S, G&A) $152 - $160 million
Tax Rate 31.5% - 32.5%
Capital Expenditures $115 - $130 million
Depreciation & Amortization $90 - $100 million

In addition to calendar year 2016 guidance, the Company is also providing forward revenue guidance for calendar year 2017. Based on the IHS Automotive January 2016 forecast for light vehicle production in North America, Europe, Japan and Korea for calendar year 2017, the Company currently expects 2017 revenue growth, over and above the foregoing 2016 revenue estimates of approximately 6 - 10%.

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", "goal", "hope", "may", "plan", "project", "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; our ability to be awarded new business; continued uncertainty in pricing negotiations with customers; loss of business from increased competition; customer bankruptcies or divestiture of customer brands; fluctuation in vehicle production schedules; changes in product mix; raw material shortages; 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 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; negative impact of any governmental investigations and associated litigations including securities litigations relating to the conduct of our business. 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.

Fourth Quarter Conference Call

A conference call related to this news release will be simulcast live on the Internet beginning at 10:30 a.m. EST today, January 28, 2016. The dial-in number to participate in the call is 888-556-4997, passcode 482168. Participants may listen to the call via audio streaming via the link in the lower left corner of www.gentex.com or by visiting https://www.webcaster4.com/Webcast/Page/611/12570. Previous conference calls hosted by the Company are available at http://ir.gentex.com/WebcastArchives.

About The Company
Founded in 1974, Gentex Corporation (NASDAQ: GNTX) is a supplier of automatic-dimming rearview mirrors and electronics to the automotive industry, dimmable aircraft windows for aviation markets, and fire protection products to the fire protection market. Visit the Company's web site at www.gentex.com.

   
   
GENTEX CORPORATION  
AUTO-DIMMING MIRROR SHIPMENTS  
(Thousands)  
 
Three Months Ended
December 31,
    Twelve Months ended
December 31,
 
  2015   2014   %
 Change
    2015   2014   %
 Change
 
North American Interior Mirrors 2,198   2,053   7 %   8,649   8,201   5 %
North American Exterior Mirrors 872   652   34 %   3,335   2,443   37 %
  Total North American Mirror Units 3,070   2,705   13 %   11,984   10,644   13 %
International Interior Mirrors 3,966   3,249   22 %   14,868   13,028   14 %
International Exterior Mirrors 1,519   1,347   13 %   6,133   5,368   14 %
  Total International Mirror Units 5,485   4,596   19 %   21,002   18,396   14 %
Total Interior Mirrors 6,164   5,303   16 %   23,517   21,228   11 %
Total Exterior Mirrors 2,392   1,998   20 %   9,468   7,812   21 %
  Total Auto-Dimming Mirror Units 8,555   7,301   17 %   32,985   29,040   14 %
                           
Note: Percent change and amounts may not total due to rounding.  
                           
                           
                           
GENTEX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 
  Three Months Ended
December 31,
 
Twelve Months ended
December 31,
  2015   2014   2015   2014
Net Sales $ 405,592,635   $ 350,410,939   $ 1,543,617,706   $ 1,375,501,159
  Cost of Goods Sold   242,349,123     215,737,971     939,841,654     836,611,464
    Gross profit   163,243,512     134,672,968     603,776,052     538,889,695
                       
  Engineering, Research & Development   22,984,663     21,780,497     88,392,919     84,175,738
  Selling, General & Administrative   13,596,366     14,277,108     56,616,694     55,879,783
  Income from operations   126,662,483     98,615,363     458,766,439     398,834,174
                         
  Other Income   2,013,168     5,404,427     4,825,017     16,492,316
Income before Income Taxes   128,675,651     104,019,790     463,591,456     415,326,490
                       
Provision for Income Taxes   40,280,095     33,044,911     145,121,597     126,721,911
Net Income $ 88,395,556   $ 70,974,879   $ 318,469,859   $ 288,604,579
                       
Earnings Per Share                      
  Basic $ 0.30   $ 0.24   $ 1.09   $ 0.99
  Diluted $ 0.30   $ 0.24   $ 1.08   $ 0.98
Weighted Average Shares                      
  Basic   291,456,906     292,742,146     293,096,212     290,952,123
  Diluted   294,339,680     296,163,669     296,237,899     294,299,359
                       
Cash Dividends Declared per Share $ 0.085   $ 0.08   $ 0.335   $ 0.31
                       
                       
                       
GENTEX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
 
    December 31, 2015   December 31, 2014
ASSETS            
Cash and Short Term Investments   $ 551,557,527   $ 497,430,825
Other Current Assets     432,451,265     359,206,869
Total Current Assets     984,008,792     856,637,694
             
Plant and Equipment - Net     412,720,270     373,390,992
             
Goodwill     307,365,845     307,365,845
Long-Term Investments     95,156,539     114,642,567
Intangible Assets     327,575,000     346,875,000
Patents and Other Assets     21,846,482     23,627,931
Total Other Assets     751,943,866     792,511,343
             
Total Assets   $ 2,148,672,928   $ 2,022,540,029
             
LIABILITIES AND SHAREHOLDERS' INVESTMENT            
Current Liabilities   $ 131,006,546   $ 133,431,163
Long-Term Debt     225,625,000     258,125,000
Deferred Income Taxes     69,524,621     59,571,421
Shareholders' Investment     1,722,516,761     1,571,412,445
Total Liabilities & Shareholders' Investment   $ 2,148,672,928   $ 2,022,540,029

Contact Information

  • Contact Information:
    Gentex Investor Relations
    616-772-1590 x5814