(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Section 2. | Financial Information |
Item 2.02 | Results of Operations and Financial Condition. |
(a) | On October 18, 2019, Gentex Corporation issued a news release announcing financial results for the third quarter ended September 30, 2019. A copy of the news release is attached as Exhibit 99.1 to the Form 8-K. |
• | Net Sales growth of 4% quarter over quarter versus a 3% quarter over quarter reduction in global light vehicle production volumes |
• | GM strike negatively impacted quarterly net sales by approximately 2% |
• | Gross margin of 37.7% includes tariff impact of 110 basis points |
• | Quarter over quarter earnings per diluted share growth of 5% to $0.44 |
• | 3.6 million shares repurchased during the quarter |
Light Vehicle Production (per IHS Markit mid-October light vehicle production forecast) | |||||||||||||
(in Millions) | |||||||||||||
Region | 4Q 2019 | 4Q 2018 | % Change | Calendar Year 2019 | Calendar Year 2018 | % Change | |||||||
North America | 3.78 | 4.19 | (10 | )% | 16.27 | 16.96 | (4 | )% | |||||
Europe | 5.30 | 5.44 | (3 | )% | 21.21 | 21.99 | (4 | )% | |||||
Japan and Korea | 3.25 | 3.56 | (9 | )% | 13.18 | 13.20 | — | % | |||||
China | 7.06 | 7.12 | (1 | )% | 24.53 | 26.85 | (9 | )% | |||||
Total Light Vehicle Production | 19.39 | 20.31 | (5 | )% | 75.19 | 79.00 | (5 | )% |
2019 Calendar Year Guidance | ||
Annual Guidance | ||
Item | As of 7/19/19 | Updated as of 10/18/19 |
Net Sales | $1.87 - $1.90 billion | $1.84 - $1.87 billion |
Gross Margin | 36.5% - 37.5% | 36.6% - 37.0% |
Operating Expenses (E,R&D and S,G&A) | $195 - $200 million | $198 - $200 million |
Tax Rate | 16.0% - 17.0% | 16.0% - 16.5% |
Capital Expenditures | $90 - $100 million | No Change |
Depreciation & Amortization | $100 - $110 million | $104 - $107 million |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | ||||||||||||
North American Interior Mirrors | 2,139 | 2,108 | 1 | % | 6,571 | 6,636 | (1 | )% | |||||||||
North American Exterior Mirrors | 1,412 | 1,103 | 28 | % | 3,961 | 2,871 | 38 | % | |||||||||
Total North American Mirror Units | 3,551 | 3,211 | 11 | % | 10,532 | 9,507 | 11 | % | |||||||||
International Interior Mirrors | 5,189 | 5,154 | 1 | % | 15,785 | 15,801 | — | % | |||||||||
International Exterior Mirrors | 2,101 | 1,864 | 13 | % | 6,025 | 6,091 | (1 | )% | |||||||||
Total International Mirror Units | 7,290 | 7,018 | 4 | % | 21,810 | 21,892 | — | % | |||||||||
Total Interior Mirrors | 7,328 | 7,262 | 1 | % | 22,356 | 22,437 | — | % | |||||||||
Total Exterior Mirrors | 3,513 | 2,967 | 18 | % | 9,986 | 8,962 | 11 | % | |||||||||
Total Auto-Dimming Mirror Units | 10,841 | 10,229 | 6 | % | 32,342 | 31,399 | 3 | % |
(Unaudited) | (Unaudited) | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net Sales | $ | 477,761,417 | $ | 460,253,433 | $ | 1,415,061,768 | $ | 1,380,654,978 | |||||||
Cost of Goods Sold | 297,440,131 | 287,263,147 | 888,558,373 | 862,231,819 | |||||||||||
Gross Profit | 180,321,286 | 172,990,286 | 526,503,395 | 518,423,159 | |||||||||||
Engineering, Research & Development | 29,398,725 | 26,888,999 | 85,847,249 | 80,138,722 | |||||||||||
Selling, General & Administrative | 22,786,881 | 18,673,376 | 63,019,167 | 55,658,189 | |||||||||||
Operating Expenses | 52,185,606 | 45,562,375 | 148,866,416 | 135,796,911 | |||||||||||
Income from Operations | 128,135,680 | 127,427,911 | 377,636,979 | 382,626,248 | |||||||||||
Other Income | 3,443,833 | 3,106,704 | 9,133,621 | 8,641,076 | |||||||||||
Income before Income Taxes | 131,579,513 | 130,534,615 | 386,770,600 | 391,267,324 | |||||||||||
Provision for Income Taxes | 19,681,661 | 19,198,798 | 61,633,712 | 59,658,782 | |||||||||||
Net Income | $ | 111,897,852 | $ | 111,335,817 | $ | 325,136,888 | $ | 331,608,542 | |||||||
Earnings Per Share(1) | |||||||||||||||
Basic | $ | 0.44 | $ | 0.42 | $ | 1.27 | $ | 1.23 | |||||||
Diluted | $ | 0.44 | $ | 0.42 | $ | 1.26 | $ | 1.22 | |||||||
Weighted Average Shares | |||||||||||||||
Basic | 251,075,859 | 265,607,128 | 252,811,950 | 270,366,996 | |||||||||||
Diluted | 252,578,982 | 267,595,142 | 254,267,851 | 272,733,502 | |||||||||||
Cash Dividends Declared per Share | $ | 0.115 | $ | 0.110 | $ | 0.345 | $ | 0.330 | |||||||
(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. |
(Unaudited) | |||||||
September 30, 2019 | December 31, 2018 | ||||||
ASSETS | |||||||
Cash and Cash Equivalents | $ | 260,151,083 | $ | 217,025,278 | |||
Short-Term Investments | 207,156,287 | 169,412,999 | |||||
Accounts Receivable, net | 253,108,715 | 213,537,799 | |||||
Inventories | 238,676,795 | 225,281,599 | |||||
Other Current Assets | 28,402,524 | 25,672,579 | |||||
Total Current Assets | 987,495,404 | 850,930,254 | |||||
Plant and Equipment - Net | 491,968,638 | 498,473,766 | |||||
Goodwill | 307,365,845 | 307,365,845 | |||||
Long-Term Investments | 103,025,468 | 137,979,082 | |||||
Intangible Assets | 255,200,000 | 269,675,000 | |||||
Patents and Other Assets | 22,241,049 | 21,010,121 | |||||
Total Other Assets | 687,832,362 | 736,030,048 | |||||
Total Assets | $ | 2,167,296,404 | $ | 2,085,434,068 | |||
LIABILITIES AND SHAREHOLDERS' INVESTMENT | |||||||
Current Liabilities | $ | 182,304,131 | $ | 169,160,919 | |||
Other Non-current Liabilities | 6,952,703 | — | |||||
Deferred Income Taxes | 56,711,307 | 54,521,489 | |||||
Shareholders' Investment | 1,921,328,263 | 1,861,751,660 | |||||
Total Liabilities & Shareholders' Investment | $ | 2,167,296,404 | $ | 2,085,434,068 |
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