Michigan | 0-10235 | 38-2030505 | |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |
600 North Centennial Street Zeeland, Michigan | 49464 | ||
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Section 2. | Financial Information |
Item 2.02 | Results of Operations and Financial Condition. |
(a) | On July 20, 2018, Gentex Corporation issued a news release announcing financial results for the second quarter ended June 30, 2018. A copy of the news release is attached as Exhibit 99.1 to the Form 8-K. |
• | Net sales growth of 3% quarter over quarter |
• | Gross Margin increased from the first quarter of 2018 by 90 basis points |
• | Net Income increased 23% quarter over quarter |
• | Earnings per Diluted Share increased 29% quarter over quarter to $0.40 per share |
• | 6.3 million shares repurchased during the quarter at an average price of $23.33 per share |
• | $26.9 million of debt repaid during the quarter |
Light Vehicle Production (per IHS mid-July light vehicle production forecast) | |||||||||||||
(in Millions) | |||||||||||||
Region | 3Q 2018 | 3Q 2017 | % Change | Calendar Year 2018 | Calendar Year 2017 | % Change | |||||||
North America | 4.24 | 3.97 | 7 | % | 17.18 | 17.06 | 1 | % | |||||
Europe | 4.95 | 4.92 | 1 | % | 22.58 | 22.21 | 2 | % | |||||
Japan and Korea | 3.23 | 3.24 | — | % | 13.20 | 13.26 | — | % | |||||
Total Light Vehicle Production | 12.42 | 12.13 | 2 | % | 52.96 | 52.53 | 1 | % |
2018 Calendar Year Guidance | ||
Annual Guidance | ||
Item | As of 4/20/18 | Updated as of 7/20/18 |
Net Sales | $1.89 - $1.97 billion | $1.88 - $1.91 billion |
Gross Margin (includes additional tariff costs) | 38.0% - 39.0% | 37.5% - 38.5% |
Operating Expenses (E,R&D and S,G&A) | $180 - $190 million | $180 - $185 million |
Tax Rate (excluding discrete items) | 15% - 18% | No change |
Capital Expenditures | $115 - $130 million | $110 - $120 million |
Depreciation & Amortization | $105 - $115 million | No change |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2018 | 2017 | % Change | 2018 | 2017 | % Change | ||||||||||||
North American Interior Mirrors | 2,202 | 2,231 | (1 | )% | 4,528 | 4,591 | (1 | )% | |||||||||
North American Exterior Mirrors | 950 | 914 | 4 | % | 1,768 | 1,831 | (3 | )% | |||||||||
Total North American Mirror Units | 3,152 | 3,146 | — | % | 6,296 | 6,422 | (2 | )% | |||||||||
International Interior Mirrors | 5,299 | 4,826 | 10 | % | 10,647 | 9,644 | 10 | % | |||||||||
International Exterior Mirrors | 2,115 | 1,816 | 16 | % | 4,227 | 3,642 | 16 | % | |||||||||
Total International Mirror Units | 7,415 | 6,642 | 12 | % | 14,874 | 13,286 | 12 | % | |||||||||
Total Interior Mirrors | 7,501 | 7,058 | 6 | % | 15,175 | 14,235 | 7 | % | |||||||||
Total Exterior Mirrors | 3,066 | 2,730 | 12 | % | 5,995 | 5,472 | 10 | % | |||||||||
Total Auto-Dimming Mirror Units | 10,567 | 9,788 | 8 | % | 21,170 | 19,707 | 7 | % |
(Unaudited) | (Unaudited) | ||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net Sales | $ | 454,981,440 | $ | 443,139,073 | $ | 920,401,545 | $ | 896,674,323 | |||||||
Cost of Goods Sold | 282,176,968 | 275,931,278 | 574,968,672 | 553,665,743 | |||||||||||
Gross Profit | 172,804,472 | 167,207,795 | 345,432,873 | 343,008,580 | |||||||||||
Engineering, Research & Development | 27,200,465 | 25,243,410 | 53,249,723 | 50,395,667 | |||||||||||
Selling, General & Administrative | 18,921,003 | 16,099,871 | 36,984,813 | 32,321,279 | |||||||||||
Operating Expenses | 46,121,468 | 41,343,281 | 90,234,536 | 82,716,946 | |||||||||||
Income from Operations | 126,683,004 | 125,864,514 | 255,198,337 | 260,291,634 | |||||||||||
Other Income (Expense) | 2,289,774 | 2,079,249 | 5,534,372 | 2,517,033 | |||||||||||
Income before Income Taxes | 128,972,778 | 127,943,763 | 260,732,709 | 262,808,667 | |||||||||||
Provision for Income Taxes | 19,948,796 | 39,407,816 | 40,459,984 | 76,715,979 | |||||||||||
Net Income | $ | 109,023,982 | $ | 88,535,947 | $ | 220,272,725 | $ | 186,092,688 | |||||||
Earnings Per Share | |||||||||||||||
Basic | $ | 0.40 | $ | 0.31 | $ | 0.81 | $ | 0.65 | |||||||
Diluted | $ | 0.40 | $ | 0.31 | $ | 0.80 | $ | 0.64 | |||||||
Weighted Average Shares | |||||||||||||||
Basic | 271,747,049 | 286,722,482 | 273,085,191 | 286,956,367 | |||||||||||
Diluted | 274,122,498 | 289,842,902 | 275,660,418 | 290,538,242 | |||||||||||
Cash Dividends Declared per Share | $ | 0.11 | $ | 0.10 | $ | 0.22 | $ | 0.19 |
(Unaudited) | |||||||
June 30, 2018 | December 31, 2017 | ||||||
ASSETS | |||||||
Cash and Cash Equivalents | $ | 296,699,141 | $ | 569,734,496 | |||
Short-Term Investments | 171,020,806 | 152,538,054 | |||||
Accounts Receivable, net | 239,406,379 | 231,121,788 | |||||
Inventories | 212,375,655 | 216,765,583 | |||||
Other Current Assets | 23,575,408 | 14,403,902 | |||||
Total Current Assets | 943,077,389 | 1,184,563,823 | |||||
Plant and Equipment - Net | 499,673,418 | 492,479,330 | |||||
Goodwill | 307,365,845 | 307,365,845 | |||||
Long-Term Investments | 141,305,695 | 57,782,418 | |||||
Intangible Assets | 279,325,000 | 288,975,000 | |||||
Patents and Other Assets | 21,361,937 | 20,887,496 | |||||
Total Other Assets | 749,358,477 | 675,010,759 | |||||
Total Assets | $ | 2,192,109,284 | $ | 2,352,053,912 | |||
LIABILITIES AND SHAREHOLDERS' INVESTMENT | |||||||
Current Liabilities | $ | 214,434,674 | $ | 243,647,007 | |||
Deferred Income Taxes | 56,175,298 | 58,888,644 | |||||
Shareholders' Investment | 1,921,499,312 | 2,049,518,261 | |||||
Total Liabilities & Shareholders' Investment | $ | 2,192,109,284 | $ | 2,352,053,912 |
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