10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10 – K

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Fiscal Year Ended September 30, 2014

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File No. 001-11703

GENCOR INDUSTRIES, INC.

Incorporated in the	I.R.S. Employer Identification
State of Delaware	No. 59-0933147

5201 North Orange Blossom Trail

Orlando, Florida 32810

Registrant’s Telephone Number, Including Area Code: (407) 290-6000

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

Common Stock ($.10 Par Value)

SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act    ¨  Yes    x  No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15 (d) of the Act    ¨  Yes    x  No

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    x  Yes    ¨  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    x  Yes    ¨  No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer” and “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act (check one):

Large Accelerated Filer	¨	Accelerated Filer	¨
Non-Accelerated Filer	¨  (Do not check if a smaller reporting Company)	Smaller Reporting Company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ¨  Yes    x  No

The aggregate market value of the common equity held by non-affiliates computed by reference to the price at which the common equity was last sold as of the last business day of the most recently completed second fiscal quarter was $69,389,200.

Indicate the number of shares outstanding of each of the Registrant’s classes of Common Stock, as of the latest practicable date: 8,010,132 shares of Common Stock ($.10 par value) and 1,509,238 shares of Class B Stock ($.10 par value) as of December 2, 2014.

DOCUMENTS INCORPORATED BY REFERENCE

Part III of this Form 10-K is incorporated by reference from the Registrant’s 2015 Proxy Statement for the Annual Meeting of the Stockholders.

Introductory Note: Caution Concerning Forward-Looking Statements

This annual report on Form 10-K (“Report”) and the Company’s other communications and statements may contain “forward-looking statements,” including statements about the Company’s 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 the Company’s 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. The Company’s actual future results may differ materially from those set forth in the Company’s forward-looking statements. For information concerning these factors and related matters, see “Risk Factors” in Part I, Item 1A in this Report, and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 in this Report. However, other factors besides those referenced could adversely affect the Company’s 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 the Company herein speak as of the date of this Report. The Company does not undertake to update any forward-looking statement, except as required by law.

PART I

ITEM 1. BUSINESS

General

Gencor Industries, Inc. and its subsidiaries (the “Company”, “Gencor”, “we”, “us” or “our”) is a leading manufacturer of heavy machinery used in the production of highway construction materials, synthetic fuels, and environmental control equipment. The Company’s products are manufactured in two facilities in the United States. The Company’s products are sold through a combination of Company sales representatives and independent dealers and agents located throughout the world.

The Company designs, manufactures and sells machinery and related equipment used primarily for the production of asphalt and highway construction materials. The Company’s principal core products include asphalt plants, combustion systems and fluid heat transfer systems. The Company believes that its technical and design capabilities, environmentally friendly process technology, and wide range of products have enabled it to become a leading producer of highway construction materials, synthetic fuels and environmental control equipment worldwide. The Company believes it has the largest installed base of asphalt production plants in the United States.

Because the Company’s products are sold primarily to the highway construction industry, the business is seasonal in nature. Traditionally, the Company’s customers do not purchase new equipment for shipment during the summer and fall months to avoid disrupting their peak season for highway construction and repair work. The majority of orders for the Company’s products are typically received between October and February, with a significant volume of shipments occurring prior to June. The principal factors driving demand for the Company’s products are the level of government funding for domestic highway construction and repair, infrastructure development in emerging economies, the need for spare parts, and a trend towards larger plants resulting from industry consolidation.

In 1968, the Company was formed by the merger of Mechtron Corporation with General Combustion, Inc. and Genco Manufacturing, Inc. The new entity reincorporated in Delaware in 1969 and adopted the name Mechtron

2

International Corporation in 1970. In 1985, the Company began a series of acquisitions into related fields starting with the Beverley Group Ltd. in the United Kingdom (the “UK”). Hy-Way Heat Company, Inc. and the Bituma Group were acquired in 1986. In 1987, the Company changed its name to Gencor Industries, Inc. and acquired Davis Line Inc. and its subsidiaries in 1988.

In 1998, the Company entered into agreements with Carbontronics, LLC (“CLLC”) pursuant to which the Company designed, manufactured, sold and installed four synthetic fuel production plants. In addition to payment for the plants, the Company received membership interests in two synthetic fuel entities (“Synfuelcos”). The Synfuelcos derived significant cash flow from the sale of synthetic fuel and tax credits (Internal Revenue Code, Section 29) and consequently distributed significant cash to the Company beginning in 2001 and through 2010.

The tax credit legislation expired at the end of calendar year 2007. Consequently, the four synthetic fuel plants were decommissioned. The plants were sold or transferred to site owners in exchange for a release of all contracted liabilities related to the removal of plants from the sites. Gencor no longer has any position in the Synfuelcos and to the best of our knowledge those entities have been dissolved.

Products

Asphalt Plants. The Company manufactures and produces hot-mix asphalt plants used in the production of asphalt paving materials. The Company also manufactures related asphalt plant equipment, including hot mix storage silos, fabric filtration systems, cold feed bins and other plant components. The Company’s H&B (Hetherington and Berner) product line is the world’s oldest asphalt plant line, first manufactured in 1894. The Company’s subsidiary, Bituma Corporation, formerly known as Boeing Construction Company, developed the first continuous process for asphalt production. Gencor developed and patented the first counter flow drum mix technology, several adaptations of which have become the industry standard, which recaptures and burns emissions and vapors, resulting in a cleaner and more efficient process. The Company also manufactures a very comprehensive range of fully mobile batch plants.

Combustion Systems and Industrial Incinerators. The Company manufactures combustion systems, which are large burners that can transform most solid, liquid or gaseous fuels into usable energy, or burn multiple fuels, alternately or simultaneously. Through its subsidiary General Combustion, the Company has been a significant source of combustion systems for the asphalt and aggregate drying industries since the 1950’s. The Company also manufactures soil remediation machinery, as well as combustion systems for rotary dryers, kilns, fume and liquid incinerators and fuel heaters. The Company believes maintenance and fuel costs are lower for its burners because of their superior design.

Fluid Heat Transfer Systems. The Company’s General Combustion subsidiary also manufactures the Hy-Way heat and Beverley lines of thermal fluid heat transfer systems and specialty storage tanks for a wide array of industry uses. Thermal fluid heat transfer systems are similar to boilers, but use high temperature oil instead of water. Thermal fluid heaters have been replacing steam pressure boilers as the best method of heat transfer for storage, heating and pumping viscous materials (i.e., asphalt, chemicals, heavy oils, etc.) in many industrial and petrochemical applications worldwide. The Company believes the high efficiency design of its thermal fluid heaters can outperform competitive units in many types of process applications.

Product Engineering and Development

The Company is engaged in product engineering and development efforts to expand its product lines and to further develop more energy-efficient and environmentally compatible systems.

Significant developments include the use of cost-effective, non-fossil fuels, biomass (bagasse, municipal solid waste, sludge and wood waste), refuse-derived fuel, coal and coal mixtures, the economical recycling of old asphalt and new designs of environmentally compatible asphalt plants. Product engineering and development activities are directed toward more efficient methods of producing asphalt and lower cost fluid heat transfer systems. In addition, efforts are also focused on developing combustion systems that operate at higher efficiency and offer a higher level of environmental compatibility. The Company also continues to evaluate opportunities in the energy field.

3

Sources of Supply and Manufacturing

Substantially all products and components sold by the Company and its subsidiaries are manufactured and assembled by the Company, except for procured raw materials and hardware. The Company purchases a large quantity of steel, raw materials and hardware used to manufacture its products from hundreds of suppliers and is not dependent on any single supplier. Periodically, the Company reviews the cost effectiveness of internal manufacturing versus outsourcing its product lines to independent third parties and currently believes it has the internal capability to produce the highest quality product at the lowest cost. This, however, may change from time to time.

Seasonality

The Company is concentrated in the asphalt-related business and subject to a seasonal slow-down during the third and fourth quarters of the calendar year. Traditionally, the Company’s customers do not purchase new equipment for shipment during the summer and fall months to avoid disrupting their peak season for highway construction and repair work. This slow-down often results in lower reported sales and earnings and/or losses during the first and fourth quarters of the Company’s fiscal year.

Competition

The markets for the Company’s products are highly competitive. Within a given product line, the industry remains fairly concentrated, with typically a small number of companies competing for the majority of a product line’s industry sales. The principal competitive factors include technology and overall product design. The Company believes it manufactures the heaviest equipment in the industry. In addition, dependability and reliability of performance, brand recognition, pricing and after-the-sale customer support are significant factors. Management believes its ability to compete depends upon its continual efforts to maintain and improve product performance, availability and dependability, competitively price its products, and provide the best customer support and service in the industry.

Sales and Marketing

The Company’s products and services are marketed internationally through a combination of Company employed sales representatives and independent dealers and agents.

Sales Backlog

The Company’s manufacturing processes allow for a relatively short turnaround from the order date to shipment date of usually less than ninety days. Therefore, the size of the Company’s backlog should not be viewed as an indicator of the Company’s annualized revenues or future financial results. The Company’s backlog was approximately $5.5 million and $10.0 million as of December 1, 2014 and December 1, 2013, respectively.

Financial Information about Geographic Areas Reporting Segments

The Company sold its operations in the United Kingdom in June 2009. For a geographic breakdown of revenues and long-term assets see the table captioned Reporting Segments in Note 1 to the Consolidated Financial Statements.

Licenses, Patents and Trademarks

The Company holds numerous patents covering technology and applications related to various products, equipment and systems, and numerous trademarks and trade names registered with the U.S. Patent and Trademark Office and in various foreign countries. In general, the Company depends upon technological capabilities, manufacturing quality control and application know-how, rather than patents or other proprietary rights in the conduct of its business. The Company believes the expiration of any one of these patents, or a group of related patents, would not have a material adverse effect on the overall operations of the Company.

4

Government Regulations

The Company believes its design and manufacturing processes meet all industry and governmental agency standards that may apply to its entire line of products, including all domestic and foreign environmental, structural, electrical and safety codes. The Company’s products are designed and manufactured to comply with U.S. Environmental Protection Agency regulations. Certain state and local regulatory authorities have strong environmental impact regulations. While the Company believes that such regulations have helped, rather than restricted its marketing efforts and sales results, there is no assurance that changes to federal, state, local, or foreign laws and regulations will not have a material adverse effect on the Company’s products and earnings in the future.

Environmental Matters

The Company is subject to various federal, state, local and foreign laws and regulations relating to the protection of the environment. The Company believes it is in material compliance with all applicable environmental laws and regulations. The Company does not expect any material impact on future operating costs as a result of compliance with currently enacted environmental regulations.

Employees

As of September 30, 2014, the Company employed a total of 222 employees. The Company has a collective bargaining agreement covering production and maintenance employees at its Marquette, Iowa facility. The remaining employees are not represented by a labor union or collective bargaining agreement.

Available Information

For further discussion concerning the Company’s business, see the information included in Item 7 (Management’s Discussion and Analysis of Financial Condition and Results of Operations) and Item 8 (Financial Statements and Supplementary Data) of this Report.

The Company makes available free of charge through its web site at www.gencor.com the Company’s Annual Report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all amendments to those reports, if applicable, filed or furnished pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended, as soon as reasonably practicable after the material is electronically filed with or furnished to the Securities and Exchange Commission (“SEC”). The information posted on the web site is not incorporated into this Annual Report on Form 10-K.

5

ITEM 1A. RISK FACTORS

The following risk factors and other information included in this Annual Report on Form 10-K should be carefully considered. The risks and uncertainties described below are not the only ones the Company faces. Additional risks and uncertainties not presently known to the Company, or that the Company presently deems less significant, may also impair the Company’s operations. If any of the following risks actually occur, the Company’s business operating results and financial condition could be materially adversely affected. The order of these risk factors does not reflect their relative importance or likelihood of occurrence.

The business may be adversely affected by the current economic downturn.

The domestic and international economies have experienced a significant downturn. This downturn has been magnified by the tightening of the credit markets. The domestic and international markets may remain depressed for an undeterminable period of time. The Company’s sales to contractors are dependent on construction and infrastructure spending and availability of credit to its customers. Changes in construction and governmental spending have had and could continue to have a material adverse effect on the Company’s results of operations.

The business is affected by the seasonal and cyclical nature of the markets it serves.

The demand for the Company’s products and service is dependent on general economic conditions and more specifically, the commercial construction industry. Adverse economic conditions may cause customers to forego or delay new purchases and rely more on repairing existing equipment thus negatively impacting the Company’s sales and profits. Rising gas and oil prices, increasing steel prices and shortage of qualified workers can have adverse effects on the Company. Market conditions could limit the Company’s ability to raise selling prices to offset increases in inventory costs.

The business is affected by the level of government funding for highway construction in the United States and Canada.

Many contractors depend on funding by federal and state agencies for highway, transit and infrastructure programs. Future legislation may increase or decrease government spending, which, if decreased, could have a negative effect on the Company’s financial condition or results of operations. Federal funding allocated to infrastructure may be decreased in the future.

In fiscal years 2014 and 2013 the Company depended on one customer for a significant portion of its revenue. The loss of this relationship could have adverse consequences on the Company’s future business.

The percentage of the Company’s net revenue that was derived from sales to one customer was 16% in fiscal 2014 and 11% in fiscal 2013.

If the Company fails to comply with requirements relating to internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act, the business could be harmed and its stock price could decline.

Rules adopted by the Securities and Exchange Commission pursuant to Section 404 of the Sarbanes-Oxley Act of 2002 require the Company to assess its internal control over financial reporting annually. The rules governing the standards that must be met for management to assess its internal control over financial reporting are complex. They require significant documentation, testing, and possible remediation of any significant deficiencies in and/or material weaknesses of internal controls in order to meet the detailed standards under these rules. The Company has evaluated its internal control over financial reporting as effective as of September 30, 2014. See Item 9A – Controls and Procedures – Management’s Annual Report on Internal Control over Financial Reporting. Although the Company has evaluated its internal control over financial reporting as effective as of September 30, 2014, in future fiscal years, the Company may encounter unanticipated delays or problems in assessing its internal control over financial reporting as effective or in completing its assessments by the required dates. In addition, the Company cannot assure you that its independent registered public accountants will attest that internal control over financial reporting are effective in future fiscal years. If the Company cannot assess its internal control over financial reporting as effective, investor confidence and share value may be negatively impacted.

6

The Company may be required to reduce its profit margins on contracts on which it uses the percentage-of-completion accounting method.

The Company records revenues and profits on many of its contracts using the percentage-of-completion method of accounting. As a result, revisions made to the estimates of revenues and profits are recorded in the period in which the conditions that require such revisions become known and can be estimated. Although the Company believes that its profit margins are fairly stated and that adequate provisions for losses for its fixed-price contracts are recorded in the financial statements, as required under U.S. generally accepted accounting principles (GAAP), the Company cannot assure you that its contract profit margins will not decrease or its loss provisions will not increase materially in the future.

The Company may encounter difficulties with future acquisitions.

As part of its growth strategy, the Company intends to evaluate the acquisitions of other companies, assets or product lines that would complement or expand the Company’s existing businesses or broaden its customer relationships. Although the Company conducts due diligence reviews of potential acquisition candidates, it may not be able to identify all material liabilities or risks related to potential acquisition candidates. There can be no assurance that the Company will be able to locate and acquire any business, retain key personnel and customers of an acquired business or integrate any acquired business successfully. Additionally, there can be no assurance that financing for any acquisition, if necessary, will be available on acceptable terms, if at all, or that the Company will be able to accomplish its strategic objectives in connection with any acquisition. Although the Company periodically considers possible acquisitions, no specific acquisitions are probable as of the date of this Report on Form 10-K.

Demand for the Company’s products is seasonal and cyclical in nature.

Orders for the Company’s products slow down during the summer and fall months since its customers generally do not purchase new equipment for shipment in their peak season for highway construction and repair work. In addition, demand for the Company’s products depends in part upon the level of capital and maintenance expenditures by the highway construction industry. The highway construction industry historically has been cyclical in nature and vulnerable to general downturns in the economy. Decreases in industry spending could have a material adverse effect upon demand for the Company’s products and negatively impact its business, financial condition, results of operations and the market price of its common stock.

The Company’s marketable securities are comprised of cash and cash equivalents, stocks, mutual funds, bonds, and other similar securities invested through a professional investment management firm and are subject to various risks such as interest rates, markets, and credit.

Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of securities, changes in these risk factors could have a material adverse impact on the Company’s results of operations.

There are and will continue to be quarterly fluctuations of the Company’s operating results.

The Company’s operating results historically have fluctuated from quarter to quarter as a result of a number of factors, including the value, timing and shipment of individual orders and the mix of products sold. Revenues from certain large contracts are recognized using the percentage-of-completion method of accounting. The Company recognizes product revenues upon shipment for the rest of its products. The Company’s asphalt production equipment operations are subject to seasonal fluctuation, which may lower revenues and result in possible losses in the first and fourth fiscal quarters of each year. Traditionally, asphalt producers do not purchase new equipment for shipment during the summer and fall months to avoid disruption of their activities during peak periods of highway construction.

If the Company is unable to attract and retain key personnel, its business could be adversely affected.

The success of the Company will continue to depend substantially upon the efforts, abilities and services of its management team and certain other key employees. The loss of one or more key employees could adversely affect the Company’s operations. The Company’s ability to attract and retain qualified personnel, either through direct hiring, or acquisition of other businesses employing such persons, will also be an important factor in determining its future success.

7

The Company may be required to defend its intellectual property against infringement or against infringement claims of others.

The Company holds numerous patents covering technology and applications related to various products, equipment and systems, and numerous trademarks and trade names registered with the U.S. Patent and Trademark Office and in various foreign countries. There can be no assurance as to the breadth or degree of protection that existing or future patents or trademarks may afford the Company, or that any pending patent or trademark applications will result in issued patents or trademarks, or that the Company’s patents, registered trademarks or patent applications, if any, will be upheld if challenged, or that competitors will not develop similar or superior methods or products outside the protection of any patents issued, licensed or sublicensed to the Company. Although the Company believes that none of its patents, technologies, products or trademarks infringe upon the patents, technologies, products or trademarks of others, it is possible that the Company’s existing patents, trademarks or other rights may not be valid or that infringement of existing or future patents, trademarks or proprietary rights may occur. In the event that the Company’s products are deemed to infringe upon the patent or proprietary rights of others, the Company could be required to modify the design of its products, change the name of its products or obtain a license for the use of certain technologies incorporated into its products. There can be no assurance that the Company would be able to do any of the foregoing in a timely manner, upon acceptable terms and conditions, or at all, and the failure to do so could have a material adverse effect on the Company. In addition, there can be no assurance that the Company will have the financial or other resources necessary to enforce or defend a patent, registered trademark or other proprietary right, and, if the Company’s products are deemed to infringe upon the patents, trademarks or other proprietary rights of others, the Company could become liable for damages, which could also have a material adverse effect on the Company.

The Company may be subject to substantial liability for the products it produces.

The Company is engaged in a business that could expose it to possible liability claims for personal injury or property damage due to alleged design or manufacturing defects in its products. The Company believes that it meets existing professional specification standards recognized or required in the industries in which it operates, and there are no material product liability claims pending against the Company as of the date hereof. Although the Company currently maintains product liability coverage which it believes is adequate for the continued operation of its business, such insurance may prove inadequate or become difficult to obtain or unobtainable in the future on terms acceptable to the Company.

The Company is subject to extensive environmental laws and regulations, and the costs related to compliance with, or the Company’s failure to comply with, existing or future laws and regulations, could adversely affect the business and results of operations.

The Company’s operations are subject to federal, state, local and foreign laws and regulations relating to the protection of the environment. Sanctions for noncompliance may include revocation of permits, corrective action orders, significant administrative or civil penalties and criminal prosecution. The Company’s business involves environmental management and issues typically associated with historical manufacturing operations. To date, the Company’s cost of complying with environmental laws and regulations has not been material, but the fact that such laws or regulations are changed frequently makes predicting the cost or impact of such laws and regulations on the Company’s future operations uncertain.

The loss of one or more of the Company’s raw materials suppliers, or increase in prices, could cause production delays, a reduction of revenues or an increase in costs.

The principal raw materials the Company uses are steel and related products. The Company has no long-term supply agreements with any of its major suppliers. However, the Company has generally been able to obtain sufficient supplies of raw materials for its operations. Although the Company believes that such raw materials are readily available from alternate sources, an interruption in the supply of steel and related products or a substantial increase in the price of any of these raw materials could have a material adverse effect on the Company’s business, financial condition and results of operations.

8

The Company is subject to significant government regulations.

The Company is subject to a variety of governmental regulations relating to the manufacturing of its products. Any failure by the Company to comply with present or future regulations could subject it to future liabilities, or the suspension of production that could have a material adverse effect on the Company’s results of operations. Such regulations could also restrict the Company’s ability to expand its facilities, or could require the Company to acquire costly equipment or to incur other expenses to comply with such regulations. Although the Company believes it has the design and manufacturing capability to meet all industry or governmental agency standards that may apply to its product lines, including all domestic and foreign environmental, structural, electrical and safety codes, there can be no assurance that governmental laws and regulations will not become more stringent over time, imposing greater compliance costs and increasing risks and penalties associated with a violation. The cost to the Company of such compliance to date has not materially affected its business, financial condition or results of operations. There can be no assurance, however, that violations will not occur in the future as a result of human error, equipment failure or other causes. The Company’s customers are also subject to extensive regulations, including those related to the workplace. The Company cannot predict the nature, scope or effect of governmental legislation, or regulatory requirements that could be imposed or how existing or future laws or regulations will be administered, or interpreted. Compliance with more stringent laws or regulations, as well as more vigorous enforcement policies of regulatory agencies, could require substantial expenditures by the Company and could adversely affect its business, financial condition and results of operations.

The Company’s management has effective voting control.

The Company’s officers and directors beneficially own an aggregate of approximately 96.8% of the outstanding shares of the Company’s $.10 par value Class B stock. The Class B stock is entitled to elect 75% (calculated to the nearest whole number, rounding five-tenths to next highest whole number) of the members of its Board of Directors. Further, approval of a majority of the Class B stock is generally required to effect a sale of the Company and certain other corporate transactions. As a result, these shareholders can elect more than a majority of the Board of Directors and exercise significant influence over most matters requiring approval by the Company’s shareholders. This concentration of control may also have the effect of delaying or preventing a change in control.

The issuance of preferred stock may impede a change of control or may be dilutive to existing shareholders.

The Company’s Certificate of Incorporation, as amended, authorizes the Company’s Board of Directors, without shareholder vote, to issue up to 300,000 shares of preferred stock in one or more series and to determine for any series the dividend, liquidation, conversion, voting or other preferences, rights and terms that are senior, and not available, to the holders of the Company’s common stock. Thus, issuances of series of preferred stock could adversely affect the relative voting power, distributions and other rights of the common stock. The issuance of preferred stock could deter or impede a merger, tender offer or other transaction that some, or a majority of the Company’s common shareholders might believe to be in their best interest or in which the Company’s common shareholders might receive a premium for their shares over the then current market price of such shares.

The Company may be required to indemnify its directors and executive officers.

The Company has authority under Section 145 of the Delaware General Corporation Law to indemnify its directors and officers to the extent provided in that statute. The Company’s Certificate of Incorporation, as amended, provides that a director shall not be personally liable to the Company for breach of fiduciary duty as a director, except to the extent such exemption from liability or limitation thereof is not permitted under the Delaware General Corporation Law. The Company’s Bylaws provide in part that it indemnify each of its directors and officers against liabilities imposed upon them (including reasonable amounts paid in settlement) and expenses incurred by them in connection with any claim made against them or any action, suit or proceeding to which they may be a party by reason of their being or having been a director or officer. The Company maintains officer’s and director’s liability insurance coverage. There can be no assurance that such insurance will be available in the future, or that if available, it will be available on terms that are acceptable to the Company. Furthermore, there can be no assurance that the insurance coverage provided will be sufficient to cover the amount of any judgment awarded against an officer or director (either individually or in the aggregate). Consequently, if such judgment exceeds the coverage under the policy, the Company may be forced to pay such difference.

9

The Company enters into indemnification agreements with each of its executive officers and directors containing provisions that may require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as officers or directors (other than liabilities arising from willful misconduct of a culpable nature) and to advance their expenses incurred as a result of any proceeding against them as to which they could be indemnified. Management believes that such indemnification provisions and agreements are necessary to attract and retain qualified persons as directors and executive officers.

The Company does not expect to pay dividends for the foreseeable future.

For the foreseeable future, the Company intends to retain any earnings to finance its business requirements, and it does not anticipate paying any cash dividends on its common stock or Class B stock. Any future determination to pay dividends will be at the discretion of the Company’s Board of Directors and will be dependent upon then existing conditions, including the financial condition and results of operations, capital requirements, contractual restrictions, business prospects, and other factors that the Board of Directors considers relevant.

Competition could reduce revenue from the Company’s products and services and cause it to lose market share.

The Company currently faces strong competition in product performance, price and service. Some of the Company’s national competitors have greater financial, product development and marketing resources than the Company. If competition in the Company’s industry intensifies or if the current competitors enhance their products or lower their prices for competing products, the Company may lose sales or be required to lower the prices it charges for its products. This may reduce revenues from the Company’s products and services, lower its gross margins or cause it to lose market share.

The Company’s quarterly operating results are likely to fluctuate, which may decrease its stock price.

The Company’s quarterly operating results have varied significantly in the past and are likely to vary significantly from quarter to quarter in the future. As a result, the Company’s operating results may fall below the expectations of securities analysts and investors in some quarters, which could result in a decrease in the market price of its common stock. The reasons the Company’s quarterly results may fluctuate include:

• General competitive and economic conditions

• Delays in, or uneven timing in, delivery of customer orders

• The seasonal nature of the industry

• The fluctuations in market value of its securities portfolio

• The introduction of new products by the Company or its competitors

• Product supply shortages

• Reduced demand due to adverse weather conditions

• Expiration or renewal of Federal highway programs, and

• Changes to state or Canadian provincial programs.

Period-to-period comparisons of such items should not be relied on as indications of future performance.

10

The Company’s stock has been, and likely will continue to be, subject to substantial price and volume fluctuations due to a number of factors, many of which will be beyond the Company’s control.

The market price of the Company’s common stock may be significantly affected by various factors such as:

• Quarterly variations in operating results

• Changes in revenue growth rates as a whole or for specific geographic areas or products

• Changes in earnings estimates by market analysts

• The announcement of new products or product enhancements by the Company or its competitors

• Speculation in the press or analyst community, and

• General market conditions or market conditions specific to particular industries.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None

ITEM 2. PROPERTIES

The following table lists the operating properties owned by the Company as of September 30, 2014:

Location	Owned Acreage	Building Square Footage		Principal Function
Marquette, Iowa	72.0		137,000	Offices and manufacturing
Orlando, Florida	27.0		215,000	Corporate offices and manufacturing

ITEM 3. LEGAL PROCEEDINGS

The Company has various litigation and claims, either as a plaintiff or defendant, pending as of the date of this Form 10-K which have occurred in the ordinary course of business, and which may be covered in whole or in part by insurance. Management has reviewed all litigation matters arising in the ordinary course of business and, upon advice of legal counsel, has made provisions, not deemed material, for any estimable losses and expenses of litigation.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There were no matters submitted during the fourth quarter of this fiscal year to a vote of security holders.

11

PART II

ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER’S PURCHASES OF EQUITY SECURITIES

The Company’s stock has been traded on the NASDAQ Global Market under the symbol “GENC” since December 20, 2007.

Following are the high and low closing prices for the Company’s common stock for the periods indicated:

2014	HIGH		LOW
First Quarter	$	9.72	$	8.35
Second Quarter	$	11.62	$	8.96
Third Quarter	$	11.19	$	9.47
Fourth Quarter	$	11.58	$	9.80

2013	HIGH		LOW
First Quarter	$	7.86	$	7.09
Second Quarter	$	7.69	$	7.04
Third Quarter	$	7.30	$	6.90
Fourth Quarter	$	8.85	$	7.09

As of September 30, 2014, there were 260 holders of common stock of record and 5 holders of Class B stock of record. The Company has not paid any dividends during the last two fiscal years and there is no intention to pay cash dividends in the foreseeable future.

EQUITY COMPENSATION PLANS

The following table includes information about the Company’s common stock that may be issued upon exercise of options, warrants and rights under all of the existing equity compensation plans and arrangements previously approved by security holders as of September 30, 2014:

Plan	Number of Securities to be Issued upon Exercise of Outstanding Options, Warrants and Rights		Weighted-average Exercise Price of Outstanding Options, Warrants and Rights		Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans
1997 Stock Option Plan		27,500	$	9.320		—
2009 Incentive Compensation Plan		316,500	$	7.655		642,000	(a)

(a) Includes 160,000 of Class B securities

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COMPARATIVE 5-YEAR CUMULATIVE RETURN GRAPH

The following graph sets forth the cumulative total shareholder return (assuming reinvestment of dividends) to the Company’s shareholders during the five-year period ended September 30, 2014, as well as the Wilshire Small Capitalization Index and the Dow Jones Heavy Construction Index. The stock performance assumes $100 was invested on October 1, 2008.

Comparison of Cumulative Total Return among Gencor Industries, Inc., the

Wilshire Small Capitalization Index and the Dow Jones Heavy Construction Index

With Base Year of 2009:	9/30/2009		9/30/2010		9/30/2011		9/30/2012		9/30/2013		9/30/2014
Gencor Industries, Inc.		100.00		83.02		84.30		86.05		99.77		114.19
DJ Heavy Construction Index		100.00		94.15		82.07		107.70		135.04		128.31
Wilshire Small Cap Index		100.00		109.75		111.95		146.45		181.20		197.15

On December 13, 2014, the Company’s stock was available for trading on the NASDAQ Global Market under the symbol “GENC”.

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ITEM 6. SELECTED FINANCIAL DATA

	Years Ended September 30
	2014			2013		2012		2011			2010
Net Revenue	$	40,017,000		$	48,943,000	$	63,182,000	$	59,692,000		$	55,587,000
Operating Income (Loss)		(26,000	)		2,578,000		393,000		(1,743,000	)		(3,049,000	)
Net Income		3,473,000			6,725,000		4,472,000		224,000			2,969,000
Per Share Data:
Basic – Net Income	$	0.36		$	0.71	$	0.47	$	0.02		$	0.31
Diluted – Net Income	$	0.36		$	0.71	$	0.47	$	0.02		$	0.31

Selected Balance Sheet Data:	September 30
	2014		2013		2012		2011		2010
Current Assets	$	110,619,000	$	108,791,000	$	102,090,000	$	95,424,000	$	99,096,000
Current Liabilities		2,960,000		6,036,000		5,878,000		5,576,000		6,174,000
Total Assets		117,828,000		116,948,000		110,312,000		104,375,000		107,227,000
Long Term Debt		—		—		—		—		—
Shareholders’ Equity		114,175,000		110,428,000		103,460,000		98,799,000		98,528,000

14

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

“Forward-Looking” Information

This Form 10-K contains certain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which represent the Company’s expectations and beliefs, including, but not limited to, statements concerning gross margins, sales of the Company’s products and future financing plans, income from investees and litigation. These statements by their nature involve substantial risks and uncertainties, certain of which are beyond the Company’s control. Actual results may differ materially depending on a variety of important factors, including the financial condition of the Company’s customers, changes in the economic and competitive environments, the performance of the investment portfolio and the demand for the Company’s products.

For information concerning these factors and related matters, see “Risk Factors” in Part I, Item 1A in this Report. However, other factors besides those referenced could adversely affect the Company’s 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 the Company herein speak as of the date of this Report. The Company does not undertake to update any forward-looking statement, except as required by law.

Overview

Gencor Industries, Inc. (the “Company”), is a leading manufacturer of heavy machinery used in the production of highway construction materials, synthetic fuels, and environmental control equipment. The Company’s core products include asphalt plants, combustion systems and fluid heat transfer systems. The Company’s products are manufactured in two facilities in the United States.

Because the Company’s products are sold primarily to the highway construction industry, the business is seasonal in nature. Traditionally, the Company’s customers do not purchase new equipment for shipment during the summer and fall months to avoid disrupting their peak season for highway construction and repair work. The majority of orders for the Company’s products are thus received between October and February, with a significant volume of shipments occurring prior to June. The principal factors driving demand for the Company’s products are the overall economic conditions, the level of government funding for domestic highway construction and repair, infrastructure development in emerging economies, the need for spare parts, fluctuations in the price of crude oil (liquid asphalt as well as fuel costs), and a trend towards larger plants resulting from industry consolidation.

On July 6, 2012, President Obama signed a $118 billion transportation bill, Moving Ahead for Progress in the 21st Century Act (“MAP-21”). MAP-21 included a final three-month extension of the previous SAFETEA-LU bill at then current spending levels combined with a new two-year, $105 billion authorization of the federal highway, transit, and safety programs effective October 1, 2012. The bill provided states with two years of funding to build roads, bridges, and transit systems. On August 8, 2014, President Obama signed a $10.8 billion short-term bill to fund Federal highway and mass-transit programs through May 31, 2015. The level of future domestic highway construction funding is uncertain.

The Canadian government enacted major infrastructure stimulus programs, which benefitted the Company in prior years. In 2007, the Building Canada Plan provided $33 billion in infrastructure funding through 2014. As part of the Building Canada Plan, the Gas Tax Fund was approved in 2009, providing $2 billion in annual infrastructure spending.

Nominal domestic economic growth and the lack of a fully funded, multi-year federal highway bill have resulted in reduced capital equipment purchases within the Company’s served markets. This continues to have an adverse impact on sales and pricing pressures on the Company’s products, resulting in lower revenues and margins.

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In addition to government funding and the overall economic conditions, fluctuations in the price of oil, which is a major component of asphalt mix, may affect the Company’s financial performance. An increase in the price of oil increases the cost of liquid asphalt and could, therefore, decrease demand for asphalt and certain of the Company’s products. Increases in oil prices also drive up the cost of gasoline, which results in increased freight costs. Where possible, the Company will pass increased freight costs on to its customers. However, the Company may not be able to recapture all of the increased costs and thus could have a negative impact on the Company’s financial performance.

Steel is a major component used in manufacturing the Company’s equipment. Fluctuations in the price of steel can have a significant impact on the Company’s financial results. Where possible, the Company will pass on increased steel costs to its customers. However, the Company may not be able to recapture all of the increased steel costs and thus its financial results could be negatively affected.

For the long term, the Company believes the strategy of continuing to invest in product engineering and development and its focus on delivering a high-quality product and superior service will strengthen the Company’s market position when demand for its products rebound. In response to the short-term outlook, the Company has taken aggressive actions to conserve cash, right-size its operations and cost structure, and will continue to do so based on its forecast. These actions included adjustments to workforce, reduced purchases of raw materials and reductions in selling, general, and administrative expenses. The Company continues to review its internal processes to identify inefficiencies and cost reduction opportunities. The Company will continue to scrutinize its relationships with external suppliers to ensure it is achieving the highest quality materials and services at the most competitive cost.

Results of Operations

Year ended September 30, 2014 compared with the year ended September 30, 2013

Net revenues for the year ended September 30, 2014 were $40.0 million, a decrease of 18.2% or $8.9 million from $48.9 million for the year ended September 30, 2013. Net revenues declined from prior year as the domestic highway construction industry continues to remain cautious due to the shortfall in Federal funding of the Highway Trust Fund and the lack of an approved multi-year highway bill after September 30, 2014.

Gross margins for fiscal 2014 were $7.8 million, or 19.5% of net revenues, versus $11.0 million or 22.5% of net revenues in 2013. The gross margin decrease in 2013 was due to overall lower production volumes.

Product engineering and development expenses decreased $291,000 or 17.0% to $1,422,000 in 2014 on reduced headcount and related expenses in line with the lower revenues. Selling, general and administrative expenses decreased $285,000 or 4.2% to $6,427,000 from $6,712,000 in fiscal 2013. The decrease was primarily due to a $393,000 second fiscal quarter recovery of a previously reserved receivable, reduced commission on reduced sales and the timing of professional fees, partially offset by a $750,000 reduction to fiscal 2013 estimated advertising expenses. The Company has historically participated in the construction industry’s triennial CONEXPO-CON/AGG Show (“ConExpo”). The costs associated with the Company’s full-scale ConExpo exhibits have historically been significant. During fiscal 2013, the Company reduced its estimated advertising expenses for the 2014 ConExpo show by $750,000 as management deemed it prudent to curtail such expenditures due to the current condition of the highway construction industry.

Fiscal 2014 had an operating loss of $(26,000) versus operating income of $2,578,000 in fiscal 2013. The reduced operating results in 2014 were due to lower revenues.

As of September 30, 2014 and 2013, the cost basis of the investment portfolio was $85.0 million and $81.2 million, respectively. $2.0 million in cash was transferred from the investment portfolio back into operating cash in fiscal 2013. For the years ended September 30, 2014 and 2013, net investment interest and dividend income (“Investment Income”) was $1.8 million and $2.3 million, respectively. The net realized and unrealized gains on marketable securities were $2.2 million in 2014 versus $1.5 million in 2013. Total cash and investment balance at September 30, 2014 was $94.3 million compared to the September 30, 2013 cash and investment balance of $92.7 million. During the year ended September 30, 2014, the Company recognized in other income a gain of $442,000 on the disposal property in the United Kingdom which was previously used as an operating facility.

16

The effective income tax rate for fiscal 2014 was 21.3% versus a benefit of (6.2%) in fiscal 2013. The Company received favorable IRS rulings on its research and development tax credits (“R&D Credits”) on amended returns filed for tax years 2006 through 2010 (fiscal years 2007 through 2011). In total, the Company received tax refunds of $827,000 related to R&D Credits for tax years 2006 through 2008 and recorded additional R&D Credits of $1,302,000 related to tax years 2009 through 2012 (fiscal years 2010 through 2013). R&D Credits of $2,129,000 are included in the Company’s income tax benefit of $392,000 in the consolidated statement of operations for the year ended September 30, 2013. Of the $1,302,000 in R&D Credits, $497,000 reduced the Company’s current federal income taxes payable for the year ended September 30, 2013 and $805,000 is included as R&D Credits carry-forwards in the net deferred income and other tax liabilities of $484,000 in the consolidated balance sheet as of September 30, 2013. An additional $313,000 of the remaining $805,000 reduced the Company’s current federal income taxes payable for the year ended September 30, 2014, leaving $492,000 in R&D Credits carry-forwards in the net deferred income and other tax liabilities of $693,000 in the consolidated balance sheet as of September 30, 2014.

During fiscal 2014, the Company also received $244,000 of Florida state research and development credits. $65,000 of these credits reduced the Company’s state income taxes payable in fiscal 2014 and $179,000 is included in the net deferred income and other tax liabilities of $693,000 in the consolidated balance sheet as of September 30, 2014. The change in the effective income tax rate between years is primarily due to the R&D Credits recorded in fiscal 2013 (see Note 6 to Consolidated Financial Statements). In addition, the tax rate for fiscal 2014 was negatively impacted by the exclusion of R&D Credits given that Congress has not extended the R&D Credits to 2014 as of September 30, 2014.

Net income for the year ended September 30, 2014 was $3,473,000 or $.36 per diluted share versus $6,725,000 or $.71 per diluted share for the year ended September 30, 2013.

Liquidity and Capital Resources

The Company generates capital resources through operations and returns on its investments.

The Company had no long-term debt outstanding at September 30, 2014 or 2013. The Company does not currently require a credit facility but continues to review and evaluate its needs and options for such a facility.

As of September 30, 2014, the Company has funded $135,000 in cash deposits at insurance companies to cover collateral needs.

As of September 30, 2014, the Company had $7.2 million in cash and cash equivalents, and $87.1 million in marketable securities. The marketable securities are invested through a professional investment management firm. The securities may be liquidated at any time into cash and cash equivalents.

The Company’s backlog was $4.8 million at September 30, 2014 versus $5.4 million at September 30, 2013. The Company’s working capital (defined as current assets less current liabilities) was $107.7 million at September 30, 2014 versus $102.8 million at September 30, 2013. The significant purchases, sales and maturities of marketable securities shown on the consolidated statement of cash flows for the year ended September 30, 2014, reflects the sale of all corporate and municipal bonds in March 2014 and subsequent recurring purchase and sale of United States treasury bills. Costs and estimated earnings in excess of billings increased reflecting the open percentage-of-completion jobs as of September 30, 2014 whereas there were no percentage-of-completion jobs qualifying for revenue recognition as of September 30, 2013. Customer deposits decreased as down payments were applied to completed jobs. Accrued expenses and other decreased $1,121,000, due primarily to the payment of estimated income taxes related to fiscal 2013.

Cash used by operations during the year ended September 30, 2014 was $2,364,000. The cash used for investing activities during the year ended September 30, 2014 of $11,000 included $696,000 related to capital expenditures, primarily manufacturing equipment, net of $685,000 of proceeds related to the sale of the property

17

in the United Kingdom. Cash provided by financing activities of $11,000 related to proceeds from the exercise of stock options. There were no cash disbursements or receipts during the year ended September 30, 2013 related to financing activities.

Critical Accounting Policies, Estimates and Assumptions

The Company believes the following discussion addresses it’s most critical accounting policies, which are those that are most important to the portrayal of the Company’s financial condition and results of operations and require management’s most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Accounting policies, in addition to the critical accounting policies referenced below, are presented in Note 1 to the Consolidated Financial Statements, “Accounting Policies.”

Estimates and Assumptions

In preparing the Consolidated Financial Statements, the Company uses certain estimates and assumptions that may affect reported amounts and disclosures. Estimates and assumptions are used, among other places, when accounting for certain revenue (e.g. contract accounting), expense, and asset and liability valuations. The Company believes that the estimates and assumptions made in preparing the Consolidated Financial Statements are reasonable, but are inherently uncertain. Assumptions may be incomplete or inaccurate and unanticipated events may occur. The Company is subject to risks and uncertainties that may cause actual results to differ from estimated results.

Revenues & Expenses

Revenues from contracts for the design, manufacture and sale of asphalt plants are recognized under the percentage-of-completion method. The percentage-of-completion method of accounting for these contracts recognizes revenue, net of any promotional discounts, and costs in proportion to actual labor costs incurred as compared with total estimated labor costs expected to be incurred during the entire contract. Pre-contract costs are expensed as incurred. Changes to total estimated contract costs or losses, if any, are recognized in the period in which they are determined. Revenue recognized in excess of amounts billed is classified as current assets under “costs and estimated earnings in excess of billings.” The Company anticipates that all incurred costs associated with these contracts at September 30, 2014, will be billed and collected within one year.

Revenues from all other contracts for the design and manufacture of custom equipment, for service and for parts sales, net of any discounts and return allowances, are recorded when the following four revenue recognition criteria are met: product is delivered/ownership is transferred or service is performed, persuasive evidence of an arrangement exists, the selling price is fixed or determinable, and collectability is reasonably assured.

Returns and allowances, which reduce product revenue, are estimated using historical experience. Provisions for estimated returns and allowances and other adjustments are provided for in the same period the related sales are recorded.

Product warranty costs are estimated using historical experience and known issues and are charged to production costs as revenue is recognized.

All product engineering and development costs, and selling, general and administrative expenses are charged to operations as incurred. Provision is made for any anticipated contract losses in the period that the loss becomes evident.

The allowance for doubtful accounts is determined by performing a specific review of all account balances greater than 90 days past due and other higher risk amounts to determine collectability and also adjusting for any known customer payment issues with account balances in the less-than-90-day past due aging buckets. Account balances are charged off against the allowance for doubtful accounts when they are determined to be uncollectable. Any recoveries of account balances previously considered in the allowance for doubtful accounts reduce future additions to the allowance for doubtful accounts.

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Inventories

Inventories are valued at the lower of cost or market, with cost being determined principally by using the last-in, first-out (“LIFO”) method and market defined as replacement cost for raw materials and net realizable value for work in process and finished goods (see Note 2 to Consolidated Financial Statements). Appropriate consideration is given to obsolescence, excessive levels, deterioration, possible alternative uses and other factors in determining net realizable value. The cost of work in process and finished goods includes materials, direct labor, variable costs and overhead. The Company evaluates the need to record inventory adjustments on all inventories, including raw material, work in process, finished goods, spare parts and used equipment. Used equipment acquired by the Company on trade-in from customers is carried at estimated net realizable value. Unless specific circumstances warrant different treatment regarding inventory obsolescence, the cost basis of inventories three to four years old are reduced by 50%, while the cost basis of inventories four to five years old are reduced by 75%, and the cost basis of inventories greater than five years old are reduced to zero. Inventory is typically reviewed for obsolescence on an annual basis computed as of September 30^th, the Company’s fiscal year end. If significant known changes in trends, technology or other specific circumstances that warrant consideration occur during the year, then the impact on obsolescence is considered at that time.

Investments

Marketable debt and equity securities are categorized as trading securities and are thus marked to market and stated at fair value. Fair value is determined using the quoted closing or latest bid prices for Level 1 investments and market standard valuation methodologies for Level 2 investments. Realized gains and losses on investment transactions are determined by specific identification and are recognized as incurred in the consolidated statements of operations. Net unrealized gains and losses are reported in the consolidated statements of operations in the current period and represent the change in the fair value of investment holdings during the period.

Long Lived Asset Impairment

Property and equipment and intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. An impairment loss would be recognized when the carrying amount of an asset exceeds the estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition. The amount of the impairment loss to be recorded is calculated by the excess over its fair value of the asset’s carrying value. Fair value is generally determined using a discounted cash flow analysis.

Inflation

The overall effects of inflation on the Company’s business during the periods discussed have not been significant. The Company monitors the prices it charges for its products and services on an ongoing basis and believes that it will be able to adjust those prices to take into account future changes in the rate of inflation.

Contractual Obligations

The following table summarizes the outstanding borrowings and long-term contractual obligations at September 30, 2014:

	Total		Less than 1 Year		1 – 3 Years
Operating leases	$	39,000	$	24,000	$	15,000

The Company had no long-term or short-term debt as of September 30, 2014. There was no long-term debt facility in place and there were no outstanding letters of credit at September 30, 2014.

Off-Balance Sheet Arrangements

None

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company operates manufacturing facilities and sales offices at two locations in the United States. The Company is subject to business risks inherent in non-U.S. activities, including political and economic uncertainty, import and export limitations, and market risk related to changes in interest rates and foreign currency exchange rates. Periodically, the Company may use derivative financial instruments consisting primarily of interest rate hedge agreements to manage exposures to interest rate changes. The Company’s objective in managing its exposure to changes in interest rates on any future variable rate debt is to limit the impact on earnings and cash flow and reduce overall borrowing costs.

At September 30, 2014 and 2013, the Company had no debt outstanding. At September 30, 2014, there was no credit facility in place. The Company does not currently require a credit facility but continues to evaluate its needs and options for such a facility.

The Company’s marketable securities are invested in stocks, mutual funds, exchange traded funds, government securities and corporate and municipal bonds through a professional investment advisor. Investment securities are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of securities, it is possible that changes in these risk factors could have an adverse material impact on the Company’s results of operations or equity.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

INDEX TO FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULES

GENCOR INDUSTRIES, INC.

	Page
Management Assessment Report		22
Report of Independent Registered Public Accounting Firm		23
Consolidated Balance Sheets as of September 30, 2014 and 2013		24
Consolidated Statements of Operations for the years ended September 30, 2014 and 2013		25
Consolidated Statements of Shareholders’ Equity for the years ended September 30, 2014 and 2013		26
Consolidated Statements of Cash Flows for the years ended September 30, 2014 and 2013		27
Notes to Consolidated Financial Statements		28
Quarterly Financial Information (Unaudited)		39

All other schedules are omitted because they are not applicable or the required information is shown in the consolidated financial statements or notes thereto.

21

GENCOR INDUSTRIES, INC.

MANAGEMENT ASSESSMENT REPORT

The management of Gencor Industries, Inc. (the “Company”) is responsible for establishing and maintaining adequate internal control over financial reporting for the Company. The Company’s internal control system is designed to provide reasonable assurance to the Company’s management and board of directors regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. There are inherent limitations in the effectiveness of all internal control systems no matter how well designed. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to the preparation and presentation of financial statements. Furthermore, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of a change in circumstances or conditions.

In order to ensure that the Company’s internal control over financial reporting is effective, management regularly assesses such controls and did so most recently as of September 30, 2014. This assessment was based on criteria for effective internal control over financial reporting described in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, management believes the Company maintained effective internal control over financial reporting as of September 30, 2014.

22

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of Gencor Industries, Inc.:

We have audited the accompanying consolidated balance sheets of Gencor Industries, Inc. as of September 30, 2014 and 2013, and the related consolidated statements of operations, shareholders’ equity, and cash flows for each of the years in the two-year period ended September 30, 2014. Gencor’s management is responsible for these financial statements. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Gencor Industries, Inc. as of September 30, 2014 and 2013, and the consolidated results of its operations, changes in shareholders’ equity, and its cash flows for each of the years in the two-year period ended September 30, 2014 in conformity with accounting principles generally accepted in the United States of America.

/s/ MOORE STEPHENS LOVELACE, P.A.

MOORE STEPHENS LOVELACE, P.A.

Certified Public Accountants

Orlando, Florida

December 9, 2014

23

Part I. Financial Information

GENCOR INDUSTRIES, INC.

Consolidated Balance Sheets

As of September 30, 2014 and 2013

	2014		2013
ASSETS
Current assets:
Cash and cash equivalents	$	7,193,000	$	9,557,000
Marketable securities at fair value (cost of $84,997,000 at September 30, 2014 and $81,165,000 at September 30, 2013)		87,112,000		83,113,000
Accounts receivable, less allowance for doubtful accounts of $244,000 at September 30, 2014 and $309,000 at September 30, 2013		1,448,000		1,200,000
Costs and estimated earnings in excess of billings		344,000		—
Inventories, net		13,673,000		14,126,000
Prepaid expenses		849,000		795,000
Total current assets		110,619,000		108,791,000
Property and equipment, net		7,141,000		8,079,000
Other assets		68,000		78,000
Total Assets	$	117,828,000	$	116,948,000
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	947,000	$	1,283,000
Customer deposits		324,000		1,943,000
Accrued expenses		1,689,000		2,810,000
Total current liabilities		2,960,000		6,036,000
Deferred and other income taxes		693,000		484,000
Total liabilities		3,653,000		6,520,000
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; 8,010,132 shares and 8,008,632 shares issued and outstanding at September 30, 2014 and 2013, respectively		801,000		801,000
Class B Stock, par value $.10 per share; 6,000,000 shares authorized; 1,509,238 shares issued and outstanding at September 30, 2014 and 2013		151,000		151,000
Capital in excess of par value		10,566,000		10,292,000
Retained earnings		102,657,000		99,184,000
Total shareholders’ equity		114,175,000		110,428,000
Total Liabilities and Shareholders’ Equity	$	117,828,000	$	116,948,000

See accompanying Notes to Consolidated Financial Statements

24

GENCOR INDUSTRIES, INC.

Consolidated Statements of Operations

For the Years Ended September 30, 2014 and 2013

	2014			2013
Net revenue	$	40,017,000		$	48,943,000
Costs and expenses:
Production costs		32,194,000			37,940,000
Product engineering and development		1,422,000			1,713,000
Selling, general and administrative		6,427,000			6,712,000
		40,043,000			46,365,000
Operating income (loss)		(26,000	)		2,578,000
Other income (expense), net:
Interest and dividend income, net of fees		1,787,000			2,281,000
Realized and unrealized gains on marketable securities, net		2,212,000			1,456,000
Other		440,000			18,000
		4,439,000			3,755,000
Income before income taxes		4,413,000			6,333,000
Income tax expense (benefit)		940,000			(392,000	)
Net income	$	3,473,000		$	6,725,000
Basic earnings per common share:
Net income	$	0.36		$	0.71
Diluted earnings per common share:
Net income	$	0.36		$	0.71

See accompanying Notes to Consolidated Financial Statements

25

GENCOR INDUSTRIES, INC.

Consolidated Statements of Shareholders’ Equity

For the Years Ended September 30, 2014 and 2013

	Common Stock				Class B Stock				Capital in Excess of Par Value		Retained Earnings		Total Shareholders’ Equity
	Shares		Amount		Shares		Amount
September 30, 2012		8,008,632	$	801,000		1,509,238	$	151,000	$	10,049,000	$	92,459,000	$	103,460,000
Net income		—		—		—		—		—		6,725,000		6,725,000
Stock-based compensation		—		—		—		—		243,000		—		243,000
September 30, 2013		8,008,632		801,000		1,509,238		151,000		10,292,000		99,184,000		110,428,000
Net income		—		—		—		—		—		3,473,000		3,473,000
Stock-based compensation		—		—		—		—		263,000		—		263,000
Stock options exercised		1,500		—		—		—		11,000		—		11,000
September 30, 2014		8,010,132	$	801,000		1,509,238	$	151,000	$	10,566,000	$	102,657,000	$	114,175,000

See accompanying Notes to Consolidated Financial Statements

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GENCOR INDUSTRIES, INC.

Consolidated Statements of Cash Flows

For the Years Ended September 30, 2014 and 2013

	2014			2013
Cash flows from operations:
Net income	$	3,473,000		$	6,725,000
Adjustments to reconcile net income to cash provided by (used in) operations:
Purchase of marketable securities		(351,062,000	)		(64,516,000	)
Proceeds from sale and maturity of marketable securities		348,845,000			64,068,000
Change in value of marketable securities		(1,782,000	)		(1,290,000	)
Deferred income taxes		209,000			(490,000	)
Depreciation and amortization		1,372,000			1,232,000
Provision for doubtful accounts		60,000			65,000
(Gain) loss on disposal of assets		(413,000	)		25,000
Stock-based compensation		263,000			243,000
Changes in assets and liabilities:
Accounts receivable		(308,000	)		(59,000	)
Costs and estimated earnings in excess of billings		(344,000	)		3,448,000
Inventories		453,000			(2,208,000	)
Prepaid expenses		(54,000	)		(13,000	)
Accounts payable		(336,000	)		(598,000	)
Customer deposits		(1,619,000	)		1,463,000
Accrued expenses and other		(1,121,000	)		(701,000	)
Total adjustments		(5,837,000	)		669,000
Cash flows provided by (used in) operations		(2,364,000	)		7,394,000
Cash flows from investing activities:
Capital expenditures		(696,000	)		(1,198,000	)
Proceeds from sale of property and equipment		685,000			—
Cash flows used in investing activities		(11,000	)		(1,198,000	)
Cash flows from financing activities:
Proceeds from stock option exercises		11,000			—
Cash flows provided by financing activities		11,000			—
Net increase (decrease) in cash		(2,364,000	)		6,196,000
Cash and cash equivalents at:
Beginning of year		9,557,000			3,361,000
End of year	$	7,193,000		$	9,557,000

See accompanying Notes to Consolidated Financial Statements

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GENCOR INDUSTRIES, INC.

Notes to Consolidated Financial Statements

For the Years Ended September 30, 2014 and 2013

NOTE 1 - NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Gencor Industries, Inc. and its subsidiaries (collectively, the “Company”) is a diversified, heavy machinery manufacturer for the production of highway construction materials, synthetic fuels and environmental control machinery and equipment.

These consolidated financial statements include the accounts of Gencor Industries, Inc. and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

New Accounting Pronouncements and Policies

No new accounting pronouncements issued or effective during the fiscal year have had or are expected to have a material impact on the Company’s consolidated financial statements.

Use of Estimates

The preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Earnings per Share (“EPS”)

The consolidated financial statements include basic and diluted earnings per share information. Basic earnings per share are based on the weighted average number of shares outstanding. Diluted earnings per share are based on the sum of the weighted average number of shares outstanding plus common stock equivalents. Weighted-average shares issuable upon the exercise of stock options included in the diluted earnings per share calculation as of September 30, 2014 were 337,000 which equates to 72,000 dilutive common stock equivalents. Weighted-average shares issuable upon the exercise of stock options included in the diluted earnings per share calculation as of September 30, 2013 were 84,000 which equates to 2,000 dilutive common stock equivalents. Weighted-average shares issuable upon the exercise of stock options, which were not included in the diluted earnings per share calculation because they were anti-dilutive, were 8,000 in 2014 and 261,000 in 2013.

The following presents the calculation of the basic and diluted earnings per share for the years ended September 30, 2014 and 2013:

	2014						2013
	Net Income		Shares		EPS		Net Income		Shares		EPS
Basic EPS	$	3,473,000		9,518,000	$	0.36	$	6,725,000		9,518,000	$	0.71
Common stock equivalents				72,000						2,000
Diluted EPS	$	3,473,000		9,590,000	$	0.36	$	6,725,000		9,520,000	$	0.71

Cash Equivalents

Cash equivalents consist of short-term certificates of deposit and deposits in money market accounts with original maturities of three months or less.

Marketable Securities

Marketable debt and equity securities are categorized as trading securities and are thus marked to market and stated at fair value. Fair value is determined using the quoted closing or latest bid prices for Level 1 investments and market

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standard valuation methodologies for Level 2 investments. Realized gains and losses on investment transactions are determined by specific identification and are recognized as incurred in the consolidated statements of operations. Net unrealized gains and losses are reported in the consolidated statements of operations in the current period and represent the change in the fair value of investment holdings during the period.

Fair Value Measurements

The fair value of financial instruments is presented based upon a hierarchy of levels that prioritizes the inputs of valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The fair value of marketable equity securities, mutual funds, exchange-traded funds and government securities are substantially based on quoted market prices (Level 1). Corporate and municipal bonds are valued using market standard valuation methodologies, including: discounted cash flow methodologies, and matrix pricing or other similar techniques. The inputs to these market standard valuation methodologies include, but are not limited to: interest rates, credit standing of the issuer or counterparty, industry sector of the issuer, coupon rate, call provisions, maturity, estimated duration and assumptions regarding liquidity and estimated future cash flows. In addition to bond characteristics, the valuation methodologies incorporate market data, such as actual trades completed, bids and actual dealer quotes, where such information is available. Accordingly, the estimated fair values are based on available market information and judgments about financial instruments (Level 2). Fair values of the Level 2 investments are provided by the Company’s professional investment management firm.

The following table sets forth by level, within the fair value hierarchy, the Company’s assets measured at fair value as of September 30, 2014:

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Equities	$	17,102,000	$	—	$	—	$	17,102,000
Mutual Funds		19,088,000		—		—		19,088,000
Exchange-Traded Funds		1,764,000		—		—		1,764,000
Government Securities		43,999,000		—		—		43,999,000
Cash and Money Funds		5,159,000		—		—		5,159,000
Total	$	87,112,000	$	—	$	—	$	87,112,000

Net unrealized gains and losses recognized during fiscal 2014 on trading securities still held as of September 30, 2014, were $167,000. There were no transfers of investments between Level 1 and Level 2 during the year ended September 30, 2014.

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The following table sets forth by level, within the fair value hierarchy, the Company’s assets measured at fair value as of September 30, 2013:

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Equities	$	12,634,000	$	—	$	—	$	12,634,000
Mutual Funds		28,264,000		—		—		28,264,000
Exchange-Traded Funds		5,162,000		—		—		5,162,000
Corporate Bonds		—		17,376,000		—		17,376,000
Municipal Bonds		—		15,555,000		—		15,555,000
Government Securities		2,000,000		—		—		2,000,000
Cash and Money Funds		2,122,000		—		—		2,122,000
Total	$	50,182,000	$	32,931,000	$	—	$	83,113,000

Net unrealized gains and losses recognized during fiscal 2013 on trading securities still held as of September 30, 2013, were $1,141,000. Estimated interest accrued on the corporate and municipal bond portfolio was $399,000 at September 30, 2013. There were no transfers of investments between Level 1 and Level 2 during the year ended September 30, 2013.

The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the short-term nature of these items.

Foreign Currency Transactions

Gains and losses resulting from foreign currency transactions are included in income and were not significant during the years ended September 30, 2014 and 2013.

Risk Management

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, and accounts receivable. The Company maintains its cash accounts in various domestic financial institutions which may from time to time exceed federally insured limits. Operating cash is retained overnight in non-interest-bearing accounts which allow for offsets to treasury service charges. The marketable securities are invested in money funds, mutual funds, exchange-traded funds (ETF’s), government securities, stocks and corporate and municipal bonds through a professional investment advisor. Investment securities are exposed to various risks, such as interest rate, market and credit risks.

The Company’s customers are not concentrated in any specific geographic region, but are concentrated in the road and highway construction industry. The Company extends limited credit to its customers based upon their credit-worthiness and generally requires a significant up-front deposit before beginning construction and full payment subject to hold-back provisions prior to shipment on complete asphalt plant and component orders. The Company establishes an allowance for doubtful accounts based upon the credit risk of specific customers, historical trends and other pertinent information.

Inventories

Inventories are valued at the lower of cost or market, with cost being determined principally by using the last-in, first-out (“LIFO”) method and market defined as replacement cost for raw materials and net realizable value for work in process and finished goods (see Note 2). Appropriate consideration is given to obsolescence, excessive levels, deterioration, possible alternative uses and other factors in determining net realizable value. The cost of work in process and finished goods includes materials, direct labor, variable costs and overhead. The Company evaluates the need to record inventory adjustments on all inventories, including raw material, work in process, finished goods, spare parts and used equipment. Used equipment acquired by the Company on trade-in from customers is carried at estimated net realizable value. Unless specific circumstances warrant different treatment regarding inventory obsolescence, the cost basis of inventories three to four years old are reduced by 50%, while the cost basis of

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inventories four to five years old are reduced by 75%, and the cost basis of inventories greater than five years old are reduced to zero. Inventory is typically reviewed for obsolescence on an annual basis computed as of September 30, the Company’s fiscal year end. If significant known changes in trends, technology or other specific circumstances that warrant consideration occur during the year, then the impact on obsolescence is considered at that time.

Property and Equipment

Property and equipment are stated at cost (see Note 4). Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the related assets, as follows:

	Years
Land improvements	5
Buildings and improvements	6-40
Equipment	2-10

Impairments

Property and equipment and intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. An impairment loss would be recognized when the carrying amount of an asset exceeds the estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition. The amount of the impairment loss to be recorded is calculated by the excess over its fair value of the asset’s carrying value. Fair value is generally determined using a discounted cash flow analysis. No such impairment loss was recorded during the years ended September 30, 2014 and 2013.

Revenues and Expenses

Revenues from contracts for the design, manufacture and sale of asphalt plants are recognized under the percentage-of-completion method. The percentage-of-completion method of accounting for these contracts recognizes revenue, net of any promotional discounts, and costs in proportion to actual labor costs incurred, as compared with total estimated labor costs expected to be incurred during the entire contract. Pre-contract costs are expensed as incurred. Changes to total estimated contract costs or losses, if any, are recognized in the period in which they are determined. Revenue recognized in excess of amounts billed is classified as current assets under “costs and estimated earnings in excess of billings.” The Company anticipates that all incurred costs associated with these contracts at September 30, 2014, will be billed and collected within one year.

Revenues from all other contracts for the design and manufacture of custom equipment, for service and for parts sales, net of any discounts and return allowances, are recorded when the following four revenue recognition criteria are met: product is delivered or service is performed, persuasive evidence of an arrangement exists, the selling price is fixed or determinable, and collectability is reasonably assured.

The Company’s customers may qualify for certain cash rebates generally based on the level of sales attained during a twelve-month period. Provisions for these rebates, as well as estimated returns and allowances and other adjustments, are provided for in the same period the related sales are recorded. Return allowances, which reduce product revenue, are estimated using historical experience.

Product warranty costs are estimated using historical experience and known issues and are charged to production costs as revenue is recognized.

All product engineering and development costs, and selling, general and administrative expenses are charged to operations as incurred. Provision is made for any anticipated contract losses in the period that the loss becomes evident.

The allowance for doubtful accounts is determined by performing a specific review of all account balances greater than 90 days past due and other higher risk amounts to determine collectability and also adjusting for any known

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customer payment issues with account balances in the less-than-90-day past due aging category. Account balances are charged off against the allowance for doubtful accounts when they are determined to be uncollectable. Any recoveries of account balances previously considered in the allowance for doubtful accounts reduce future additions to the allowance for doubtful accounts.

Shipping and Handling Costs

Shipping and handling costs are included in production costs in the consolidated statements of operations.

Income Taxes

Income taxes are provided for the tax effects of transactions reported in the consolidated financial statements and consist primarily of taxes currently due, plus deferred taxes (see Note 6).

The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns using current tax rates. The Company and its domestic subsidiaries file a consolidated federal income tax return.

Deferred tax assets and liabilities are measured using the rates expected to apply to taxable income in the years in which the temporary differences are expected to reverse and the credits are expected to be used. The effect on deferred tax assets and liabilities of the change in tax rates is recognized in income in the period that includes the enactment date. All available evidence, both positive and negative, is considered to determine whether, based on the weight of that evidence, a valuation allowance is needed for some portion or all of a deferred tax asset. No such valuation allowances were recorded as of September 30, 2014 and 2013.

Comprehensive Income

For the years ended September 30, 2014 and 2013, other comprehensive income is equal to net income.

Reporting Segments

Information concerning principal geographic areas is as follows:

	2014				2013
	Revenues		Long-Term Assets		Revenues		Long-Term Assets
United States	$	40,017,000	$	7,209,000	$	48,943,000	$	7,913,000
United Kingdom		—		—		—		244,000
Total	$	40,017,000	$	7,209,000	$	48,943,000	$	8,157,000

Revenues are attributed to geographic areas based on the location of the assets producing the revenues. Assets associated with the United Kingdom were disposed of during fiscal 2014.

Customers with 10% (or greater) of Net Revenues

As a result of timing and production schedules of a very large contract and resultant revenue recognition, approximately 5% of total net revenue in the quarter ended September 30, 2014 and 4% of total net revenue for the quarter ended September 30, 2013 was from one or more separate U.S. corporate entities ultimately affiliated with a foreign-based global company. For the years ended September 30, 2014 and 2013, this company represented 16% and 11% of total net revenue, respectively.

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NOTE 2 - INVENTORIES, NET

Net inventories consist of the following:

	September 30,
	2014		2013
Raw materials	$	6,097,000	$	6,238,000
Work in process		2,414,000		3,307,000
Finished goods		4,988,000		4,054,000
Used equipment		174,000		527,000
	$	13,673,000	$	14,126,000

At September 30, 2014 and 2013, cost is determined by the last-in, first-out (“LIFO”) method for inventories. The estimated current cost of inventories exceeded their LIFO basis by approximately $5,472,000 and $5,141,000 at September 30, 2014 and 2013, respectively.

NOTE 3 - COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS

Costs and estimated earnings in excess of billings on uncompleted contracts as of September 30, 2014 consisted of the following:

	September 30, 2014
Costs incurred on uncompleted contracts	$	846,000
Estimated earnings		279,000
		1,125,000
Billings to date		781,000
Costs and estimated earnings in excess of billings	$	344,000

There were no costs and estimated earnings in excess of billings on uncompleted contracts as of September 30, 2013.

NOTE 4 - PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

	September 30,
	2014			2013
Land and improvements	$	3,296,000		$	3,540,000
Buildings and improvements		12,875,000			13,184,000
Equipment		8,716,000			8,845,000
		24,887,000			25,569,000
Less: Accumulated depreciation and amortization		(17,746,000	)		(17,490,000	)
Property and equipment, net	$	7,141,000		$	8,079,000

Property and equipment includes approximately $6,190,000 and $6,772,000 of fully depreciated assets, which remained in service during fiscal 2014 and 2013, respectively.

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NOTE 5 - ACCRUED EXPENSES

Accrued expenses consist of the following:

	September 30,
	2014		2013
Payroll and related accruals	$	974,000	$	1,061,000
Warranty and related accruals		368,000		373,000
Professional fees		84,000		280,000
Accrued income taxes payable		—		760,000
Other		263,000		336,000
Accrued expenses	$	1,689,000	$	2,810,000

Other accrued expenses in fiscal 2013 included the estimated advertising costs associated with ConExpo. During fiscal 2013, the Company reduced its estimated advertising expenses for the 2014 ConExpo show by $750,000, as management deemed it prudent to curtail such expenditures due to the current condition of the highway construction industry.

NOTE 6 - INCOME TAXES

The provision for income tax expense consists of:

	Years Ended September 30,
	2014		2013
Current:
Federal	$	667,000	$	(48,000	)
State		65,000		146,000
Total current		732,000		98,000
Deferred
Federal		190,000		(447,000	)
State		18,000		(43,000	)
Total deferred		208,000		(490,000	)
Income tax expense (benefit)	$	940,000	$	(392,000	)

A reconciliation of the federal statutory tax rate to the total tax provision is as follows:

	Years Ended September 30,
	2014			2013
Federal income taxes computed at the statutory rate		34.0	%		34.0	%
State income taxes, net of federal benefit		3.3	%		3.3	%
Research & development tax refunds & credits		(5.6	%)		(33.6	%)
Dividend received deduction		(6.1	%)		(3.0	%)
Domestic international sales corporation benefits		(4.2	%)		(1.8	%)
Tax-exempt interest income		(1.8	%)		(1.4	%)
Other, net		1.7	%		(3.7	%)
Effective income tax rate		21.3	%		(6.2	%)

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Deferred tax assets and liabilities consist of the following:

	September 30,
	2014			2013
Deferred Tax Assets:
Accrued liabilities and reserves	$	288,000		$	338,000
Allowance for doubtful accounts		91,000			115,000
Inventory		186,000			202,000
R&D tax credits carryforwards		671,000			805,000
Non-deductible stock compensation		194,000			178,000
Net operating losses carryforwards		58,000			59,000
Other		24,000			57,000
Gross Deferred Tax Assets		1,512,000			1,754,000
Deferred and Other Tax Liabilities:
Unrealized gain on investments		(798,000	)		(736,000	)
Percentage of completion		(104,000	)		—
Property, plant and equipment		(964,000	)		(1,179,000	)
Unrecognized tax benefits		(300,000	)		(300,000	)
Other		(39,000	)		(23,000	)
Gross Deferred and Other Tax Liabilities		(2,205,000	)		(2,238,000	)
Net Deferred Income and Other Tax Liabilities	$	(693,000	)	$	(484,000	)

Total income taxes paid in fiscal 2014 and 2013 were $1,981,000 and $202,000, respectively.

Generally Accepted Accounting Principles (“GAAP”) prescribes a comprehensive model for the financial recognition, measurement, classification, and disclosure of uncertain tax positions. GAAP contains a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, based on the technical merits of the position. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement.

Significant judgment is required in evaluating the Company’s uncertain tax position and determining the Company’s provision for taxes. Although the Company believes the reserves of unrecognized tax benefits (“UTB’s”) are reasonable, no assurance can be given that the final outcome of these matters will not be different from that which is reflected in the Company’s historical income tax provision and accruals. The Company adjusts these reserves in light of changing facts and circumstances. As of September 30, 2014 and 2013, the Company had UTB’s of $300,000. There were no additional accruals of UTB’s during fiscal years ended September 30, 2014 and 2013.

The Company recognizes interest and penalties accrued related to UTB’s as a component of income tax expense. There were no additional accruals of interest expense nor penalties during fiscal years ended September 30, 2014 and 2013. It is reasonably possible that the amount of the UTB’s with respect to certain unrecognized tax positions will increase or decrease during the next 12 months. The Company does not expect the change to have a material effect on its results of operations or its financial position. The only expected potential reason for change would be the normal expiration of the statute of limitations or the ultimate results stemming from any examinations by taxing authorities. If recognized, the entire amount of UTB’s would have an impact on the Company’s effective tax rate.

The Company received favorable IRS rulings on its research and development tax credits (“R&D Credits”) on amended returns filed for tax years 2006 through 2010 (fiscal years 2007 through 2011). In total, the Company received tax refunds of $827,000 related to R&D Credits for tax years 2006 through 2008 and recorded additional R&D Credits of $1,302,000 related to tax years 2009 through 2012 (fiscal years 2010 through 2013). R&D Credits of $2,129,000 are included in the Company’s income tax benefit of $392,000 in the consolidated statement of operations for the year ended September 30, 2013. Of the $1,302,000 in R&D Credits, $497,000 reduced the Company’s current

35

federal income taxes payable for the year ended September 30, 2013 and $805,000 is included as R&D Credits carry-forwards in the net deferred income and other tax liabilities of $484,000 in the consolidated balance sheet as of September 30, 2013. An additional $313,000 of the remaining $805,000 reduced the Company’s current federal income taxes payable for the year ended September 30, 2014, leaving $492,000 in R&D Credits carryforwards in the net deferred income and other tax liabilities of $693,000 in the consolidated balance sheet as of September 30, 2014. The $492,000 of R&D Credits carryforwards expire in fiscal years 2031 through 2033. The tax rate for fiscal 2014 was negatively impacted by the exclusion of R&D Credits given that Congress has not extended the R&D Credits to 2014 as of September 30, 2014.

During fiscal 2014, the Company also received $244,000 of Florida state research and development credits. $65,000 of these credits reduced the Company’s state income taxes payable in fiscal 2014 and $179,000 is included in the net deferred income and other tax liabilities of $693,000 in the consolidated balance sheet as of September 30, 2014. The $179,000 of Florida state research and development credits carry-forwards expire in fiscal 2019.

The Company files U.S. federal income tax returns, as well as income tax returns in various states. The Company’s U.S. federal income tax returns and most state returns, filed for tax years prior to fiscal year ended September 30, 2010 are no longer subject to examination by taxing authorities due to the expiration of the statute of limitations. The statute of limitations for the Company’s U.S. federal income tax return for the fiscal year ended September 30, 2010 has been extended and will remain open to examination through December 31, 2014.

NOTE 7 - RETIREMENT BENEFITS

The Company has a voluntary 401(k) employee benefit plan, which covers all eligible, domestic employees. The Company makes discretionary matching contributions subject to a maximum level, in accordance with the terms of the plan. The Company charged approximately $156,000 and $148,000 to expense under the provisions of the plan during the fiscal years 2014 and 2013, respectively.

The Company has a collective bargaining agreement covering production and maintenance employees at its Marquette, Iowa facility. Under this agreement, the Company contributed approximately $7,000 in fiscal 2013 to an employee pension fund. The amount contributed by the Company was based on an hourly rate per hours worked up to a maximum of 40 hours per week per employee. The Company’s obligation to contribute to this pension fund ended effective November 1, 2012. The Company has no remaining obligations with respect to this fund. All eligible employees can participate in the voluntary 401(k) employee benefit plan.

NOTE 8 - LONG-TERM DEBT

The Company had no long-term debt outstanding at September 30, 2014 or 2013. The Company does not currently require a credit facility, but continues to evaluate its needs and options for such a facility.

As of September 30, 2014, total cash deposits with insurance companies covering collateral needs were $135,000.

NOTE 9 - COMMITMENTS AND CONTINGENCIES

Leases

The Company leases certain equipment under non-cancelable operating leases. Future minimum rental commitments under these leases at September 30, 2014 totaled $39,000 and are due over the next three years.

Total rental expense for the fiscal years ended September 30, 2014 and 2013 was $193,000 and $276,000, respectively.

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Litigation

The Company has various pending litigation and other claims. Those claims which are made in the ordinary course of business may be covered in whole or in part by insurance, and if found against the Company, management does not believe these matters will have a material effect on the Company’s financial position, results of operations or cash flows. Management has reviewed all litigation matters arising in the ordinary course of business and has made provisions, not deemed material, for any estimable losses and expenses of litigation.

NOTE 10 - SHAREHOLDERS’ EQUITY

Under the Company’s amended certificate of incorporation, certain rights of the holders of the Company’s common stock are modified by shares of Class B stock for as long as such shares shall remain outstanding. During that period, holders of common stock will have the right to elect approximately 25% of the Company’s Board of Directors, and conversely, Class B stock will be entitled to elect approximately 75% of the Company’s Board of Directors. During the period when common stock and Class B stock are outstanding, certain matters submitted to a vote of shareholders will also require approval of the holders of common stock and Class B stock, each voting separately as a class. Common stock and Class B shareholders have equal rights with respect to dividends, preferences, and rights, including rights in liquidation.

NOTE 11 - STOCK-BASED COMPENSATION

The Company maintains stock-based compensation plans, which provide for the issuance of Company stock to certain directors, officers, key employees and affiliates.

On March 17, 2009, the shareholders of the Company approved the 2009 Incentive Compensation Plan (the “2009 Plan”). The 2009 Plan provides that the total number of shares of Company stock that may be subject to the granting of awards under the 2009 Plan (“Awards”) at any time during the term of the 2009 Plan shall be equal to 800,000 shares of common stock and 160,000 shares of Class B stock. The foregoing limit shall be increased, as provided for in the 2009 Plan. Persons eligible to receive Awards under the 2009 Plan include employees, directors, consultants and other persons who provide services to the Company. The 2009 Plan imposes individual limitations on the amount of certain Awards, in part, to comply with Internal Revenue Code, Section 162(m). The Awards can be in the form of stock options, restricted and deferred stock, performance awards and other stock-based awards, as provided for in the 2009 Plan.

On July 1, 2011, 298,000 common stock options were issued to employees under the 2009 Plan. These options vest at 25% per year starting on October 1, 2012 and each year thereafter through October 1, 2015. As long as the employee remains employed by the Company, these options will be exercisable upon vesting and remain exercisable through October 1, 2021. The Company used the Black-Scholes pricing model to estimate the fair value of the options of $941,000 at time of grant. At September 30, 2014, $237,000 of compensation expense remained to be expensed over the next two years. The following assumptions were used to determine the fair value of the stock options at time of grant:

Risk-free interest rate	2.0	%
Expected life of options	10.0 years
Dividend yield	0.0	%
Volatility	34.2	%

On May 28, 2012, 20,000 common stock options were issued to an employee under the 2009 Plan. These options vest at 25% per year starting on May 28, 2013 and each year thereafter through May 28, 2016. As long as the employee remains employed by the Company, these options will be exercisable upon vesting and remain exercisable through October 1, 2021. The Company used the Black-Scholes pricing model to estimate the fair value of the options of $63,000 at time of grant. At September 30, 2014, $27,000 of compensation expense remained to be expensed through May 28, 2016. The following assumptions were used to determine the fair value of the stock options at time of grant:

Risk-free interest rate	2.0	%
Expected life of options	9.4 years
Dividend yield	0.0	%
Volatility	32.7	%

37

As of September 30, 2014, 482,000 shares of Company common stock and 160,000 shares of Class B stock are available for granting of Awards under the 2009 Plan.

The following table summarizes option activity under the 2009 Plan:

	Number of Shares			Average Exercise Price Per Share
Options outstanding at September 30, 2013 and 2012		318,000		$	7.655
Options exercised during fiscal 2014		(1,500	)	$	7.689
Options outstanding at September 30, 2014		316,500		$	7.655

No options were granted, forfeited or cancelled during the year ended September 30, 2014. The weighted average remaining contractual life on the options outstanding as of September 30, 2014 is 7 years under the 2009 Plan.

The 1997 Stock Option Plan (the “1997 Plan”) provided for the issuance of incentive stock options and nonqualified stock options to purchase up to 1,200,000 shares of the Company’s common stock, 1,200,000 shares of the Company’s Class B stock and up to 15% of the authorized common stock of any subsidiary. Under the terms of the 1997 Plan, option holders may tender previously owned shares with a market value equal to the exercise price of the options at exercise date, subject to compensation committee approval. Additionally, option holders may, upon compensation committee approval, surrender shares of stock to satisfy federal withholding tax requirements. Options become exercisable in a manner and on such dates and times, as determined by a committee of the Board of Directors. Options expire not more than ten years from the date of grant. The option holders have no shareholder rights until the date of issuance of a stock certificate for such shares.

As of September 30, 2014, there were no options available for future grants under the 1997 Plan.

The following table summarizes option activity under the 1997 Plan:

	Number of Shares		Exercise Price Per Share
Outstanding at September 30, 2014, 2013 and 2012		27,500	$	9.32

The weighted average remaining contractual life on the options outstanding as of September 30, 2014 is 2 years under the 1997 Plan.

NOTE 12 - RELATED PARTY TRANSACTIONS

Marcar Leasing Corporation (“Marcar”) is engaged in leasing machinery and vehicles to the public and the Company. Marcar is owned by family members of the Company’s chairman. New leases between the Company and Marcar generally provide for equal monthly payments over 48 months. During fiscal 2014 and 2013, the Company made lease payments to Marcar totaling $125,000 and $138,000, respectively.

38

Quarterly Financial Information (Unaudited)

	Quarter Ended
	December 31			March 31		June 30		September 30
2014
Net revenue	$	10,019,000		$	14,541,000	$	10,547,000	$	4,910,000
Production costs		8,487,000			10,851,000		8,266,000		4,590,000
Gross profit		1,532,000			3,690,000		2,281,000		320,000
Production engineering and development		380,000			351,000		352,000		339,000
Selling, general and administrative		1,734,000			1,519,000		1,557,000		1,617,000
Income (loss) from operations		(582,000	)		1,820,000		372,000		(1,636,000	)
Other income (expense), net		1,463,000			1,181,000		2,268,000		(473,000	)
Income (loss) before income tax expense		881,000			3,001,000		2,640,000		(2,109,000	)
Income tax expense (benefit)		435,000			1,100,000		977,000		(1,572,000	)
Net income (loss)	$	446,000		$	1,901,000	$	1,663,000	$	(537,000	)
Net income (loss) – basic earnings (loss) per share	$	0.05		$	0.20	$	0.17	$	(0.06	)
Net income (loss) – diluted earnings (loss) per share	$	0.05		$	0.20	$	0.17	$	(0.06	)
2013
Net revenue	$	4,948,000		$	17,737,000	$	18,690,000	$	7,568,000
Production costs		4,531,000			13,411,000		13,720,000		6,278,000
Gross profit		417,000			4,326,000		4,970,000		1,290,000
Production engineering and development		448,000			454,000		420,000		391,000
Selling, general and administrative		1,959,000			1,984,000		1,867,000		902,000
Income (loss) from operations		(1,990,000	)		1,888,000		2,683,000		(3,000	)
Other income (expense), net		179,000			1,822,000		679,000		1,075,000
Income (loss) before income tax expense		(1,811,000	)		3,710,000		3,362,000		1,072,000
Income tax expense (benefit)		(835,000	)		733,000		873,000		(1,163,000	)
Net income (loss)	$	(976,000	)	$	2,977,000	$	2,489,000	$	2,235,000
Net income (loss) – basic earnings (loss) per share	$	(0.10	)	$	0.31	$	0.26	$	0.24
Net income (loss) – diluted earnings (loss) per share	$	(0.10	)	$	0.31	$	0.26	$	0.24

The net income (loss) per share on a year-to-date calculation may not equal the total of the quarterly calculations due to rounding.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None

39

ITEM 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company’s Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of the design and operation of the Company’s “disclosure controls and procedures” (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) as of the end of the period covered by this Report. Based upon that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that, as of the end of the period covered by this Report, the Company’s disclosure controls and procedures are effective.

Because of inherent limitations, the Company’s disclosure controls and procedures, no matter how well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of such disclosure controls and procedures are met and no evaluation can provide absolute assurance that all control issues and instances of fraud, if any, within the Company has been detected.

As of the end of the period covered by this Report the Company conducted an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s principal executive officer and principal financial officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Exchange Act Rules 13a-15(b). Based on this evaluation, the Company’s principal executive officer and principal financial officer concluded that the Company’s disclosure controls and procedures were effective as of September 30, 2014.

Management’s Annual Report on Internal Control over Financial Reporting

This Annual Report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this Annual Report.

The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) for the Company. The Company’s internal control system is designed to provide reasonable assurance to the Company’s management and board of directors regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. There are inherent limitations in the effectiveness of all internal control systems no matter how well designed. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to the preparation and presentation of financial statements. Furthermore, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of a change in circumstances or conditions.

In order to ensure that the Company’s internal control over financial reporting is effective, management regularly assesses such controls and did so most recently as of September 30, 2014. This assessment was based on criteria for effective internal control over financial reporting described in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, management believes the Company maintained effective internal control over financial reporting as of September 30, 2014.

Changes in Internal Control over Financial Reporting

The Company’s management, including the Chief Executive Officer and Chief Financial Officer, has reviewed the Company’s internal control over financial reporting. There were no changes in the Company’s internal control over financial reporting during the year ended September 30, 2014 that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

None

40

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information required by this Item 10 is incorporated herein by reference to the Company’s Definitive 2015 Proxy Statement for the Annual Meeting of Stockholders.

ITEM 11. EXECUTIVE COMPENSATION

The information required by this Item 11 is incorporated herein by reference to the Company’s Definitive 2015 Proxy Statement for the Annual Meeting of Stockholders.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information required by this Item 12 is incorporated herein by reference to the Company’s Definitive 2015 Proxy Statement for the Annual Meeting of Stockholders.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information required by this Item 13 is incorporated herein by reference to the Company’s Definitive 2015 Proxy Statement for the Annual Meeting of Stockholders.

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

The information required by this Item 14 is incorporated herein by reference to the Company’s Definitive 2015 Proxy Statement for the Annual Meeting of Stockholders.

41

PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a) A listing of financial statements and financial statement schedules filed as part of this Report and which financial statements and schedules are incorporated into this report by reference, is set forth in the “Index to Financial Statements” in Item 8 hereof.

(b) Exhibit Index

EXHIBIT NUMBER	DESCRIPTION	FILED HEREWITH
3.1	Restated Certificate of Incorporation of Company, incorporated by reference to Exhibit 3.1 to Registration No. 33-627
3.2	Amended and Restated By-Laws of Gencor Industries, Inc., incorporated by reference to Exhibit 3.2 to the Company’s Annual Report on Form 10-K for the year ended September 30, 2007
3.3	Certificate of Amendment, changing name of Mechtron International Corporation to Gencor Industries, Inc. and adding a “twelfth” article regarding director liability limitation, incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 1987.
4.1	Form of Common Stock certificate, incorporated by reference to Exhibit 4.1 to Registration No. 33-627.
10.5	Form of Agreement for Nonqualified Stock Options granted in 1986, incorporated by reference to the Annual Report on Form 10-K for the year ended December 31, 1986.
10.11	1997 Stock Option Plan incorporated by reference to Exhibit A to the Company’s Proxy Statement on 14A, filed March 3, 1997.
10.12	First Amendment to the Stock Option Plan Agreement incorporated by reference to Exhibit 10.12 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2006.
10.1	The Company’s 2009 Incentive Compensation Plan, as incorporated by reference to the Company’s 2009 Proxy Statement filed with the Securities and Exchange Commission on Schedule 14A on January 28, 2009
21.1	Subsidiaries of the Registrant	X
23.1	Consent of Independent Registered Public Accountants	X
31.1	Certification of Chief Executive Officer Pursuant to Rule 13a – 14(a) of the Securities Exchange Act of 1934, as amended	X
31.2	Certification of Chief Financial Officer Pursuant to Rule 13a – 14(a) of the Securities Exchange Act of 1934, as amended	X
32.1	Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U. S. C. Section 1350.	X

42

EXHIBIT NUMBER	DESCRIPTION	FILED HEREWITH
101.INS	XBRL Instance Document	X
101.SCH	XBRL Taxonomy Extension Schema	X
101.CAL	XBRL Taxonomy Extension Calculation Linkbase	X
101.DEF	XBRL Taxonomy Extension Definition Linkbase	X
101.LAB	XBRL Taxonomy Extension Label Linkbase	X
101.PRE	XBRL Taxonomy Extension Presentation Linkbase	X

43

SIGNATURES

Pursuant to the requirements of Sections 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: December 9, 2014	GENCOR INDUSTRIES, INC.
	(Registrant)
	/s/ E. J. Elliott
	E. J. Elliott
	Chairman and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. The signatures of Directors constitute a majority of Directors.

/s/ E. J. Elliott		/s/ Marc G. Elliott
E. J. Elliott	December 9, 2014	Marc G. Elliott	December 9, 2014
Chairman and Chief Executive Officer		President
(Principal Executive Officer)
/s/ Eric E. Mellen
Eric E. Mellen	December 9, 2014
Chief Financial Officer
(Principal Financial and Accounting Officer)
/s/ James P. Sharp		/s/ Cort J. Dondero
James P. Sharp	December 9, 2014	Cort J. Dondero	December 9, 2014
Director		Director
/s/ Randolph H. Fields		/s/ David A. Air
Randolph H. Fields	December 9, 2014	David A. Air	December 9, 2014
Director		Director

44

EXHIBITS FILED HEREWITH

Exhibit No.	Description
21.1	Subsidiaries of the Registrant
23.1	Consent of Independent Registered Public Accountants
31.1	Certification of Chief Executive Officer Pursuant to Rule 13a – 14(a) of the Securities Exchange Act of 1934, as amended
31.2	Certification of Chief Financial Officer Pursuant to Rule 13a – 14(a) of the Securities Exchange Act of 1934, as amended
32.1	Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U. S. C. Section 1350.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase

45

EX-21.1

Exhibit 21.1

GENCOR INDUSTRIES, INC. AND SUBSIDIARIES

SUBSIDIARIES OF THE REGISTRANT

All of the operating subsidiaries of Gencor Industries, Inc., a Delaware corporation, listed below are included in the Consolidated Financial Statements:

	State in Which Incorporated	Country in Which Incorporated
General Combustion Corporation	Florida	USA
Bituma-Stor, Inc.	Iowa	USA
Bituma Corporation	Washington	USA
Equipment Services Group, Inc.	Florida	USA
Gencor International Limited	—	British Virgin Islands
Gencor Holdings International Corp.	Florida	USA

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in the Post-Effective Amendment No. 1 to the Registration Statement of Gencor Industries, Inc. on Form S-8 for the registration of 3,556,000 ($.10 par value) shares of its common stock issuable pursuant to its 1992 Stock Option Plan, 1996 Stock Option Agreements and 1997 Stock Option Plan (SEC File Number 333-61769) and in the related prospectus of our report dated December 9, 2014 with respect to the consolidated financial statements of Gencor Industries, Inc. and subsidiaries included in this Annual Report on Form 10-K for the year ended September 30, 2014.

/s/ MOORE STEPHENS LOVELACE, P.A.

MOORE STEPHENS LOVELACE, P.A.

CERTIFIED PUBLIC ACCOUNTANTS

Orlando, Florida

December 9, 2014

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Mr. E.J. Elliott, certify that:

1. I have reviewed this annual report on Form 10-K of Gencor Industries, Inc.;

2. Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;

3. Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;

4. The registrant’s other certifying officers and I, are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15 (f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting, and;

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls.

Date: December 9, 2014	/s/ E. J. Elliott
	E. J. Elliott
	Chairman and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Mr. Eric E. Mellen, certify that:

1. I have reviewed this annual report on Form 10-K of Gencor Industries, Inc.;

2. Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;

3. Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;

4. The registrant’s other certifying officers and I, are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15 (f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting, and;

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls.

Date: December 9, 2014	/s/ Eric E. Mellen
	Eric E. Mellen
	Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Gencor Industries, Inc. (the “Company”) on Form 10-K for the fiscal year ending September 30, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all materials respects, the financial condition and results of operations of the Company.

/s/ E. J. Elliott

E. J. Elliott

Chairman and Chief Executive Officer

December 9, 2014

/s/ Eric E. Mellen

Eric E. Mellen

Chief Financial Officer

December 9, 2014

XML

Accrued Expenses - Accrued Expenses (Detail) (USD $)	Sep. 30, 2014	Sep. 30, 2013
Payables and Accruals [Abstract]
Payroll and related accruals	$ 974,000	$ 1,061,000
Warranty and related accruals	368,000	373,000
Professional fees	84,000	280,000
Accrued income taxes payable		760,000
Other	263,000	336,000
Accrued expenses	$ 1,689,000	$ 2,810,000

XML

Shareholders' Equity - Additional Information (Detail)	12 Months Ended
	Sep. 30, 2014
Common Stock [Member]
Class of Stock [Line Items]
Right of holders to elect company's board of directors	25.00%
Class B Stock [Member]
Class of Stock [Line Items]
Right of holders to elect company's board of directors	75.00%

XML

Long Term Debt - Additional Information (Detail) (USD $)	Sep. 30, 2014	Sep. 30, 2013
Debt Disclosure [Abstract]
Long term debt outstanding	$ 0	$ 0
Total cash deposits with insurance companies covering collateral needs	$ 135,000

XML

Inventories - Net Inventories (Detail) (USD $)	Sep. 30, 2014	Sep. 30, 2013
Inventory, Net [Abstract]
Raw materials	$ 6,097,000	$ 6,238,000
Work in process	2,414,000	3,307,000
Finished goods	4,988,000	4,054,000
Used equipment	174,000	527,000
Inventories, net	$ 13,673,000	$ 14,126,000

XML

Accrued Expenses (Tables)

12 Months Ended

Sep. 30, 2014

Payables and Accruals [Abstract]

Accrued Expenses

Accrued expenses consist of the following:

	September 30,
	2014		2013
Payroll and related accruals	$	974,000	$	1,061,000
Warranty and related accruals		368,000		373,000
Professional fees		84,000		280,000
Accrued income taxes payable		—		760,000
Other		263,000		336,000
Accrued expenses	$	1,689,000	$	2,810,000

XML

Stock-Based Compensation - Fair Value of Stock Options at Time of Grant (Detail)	12 Months Ended
	Sep. 30, 2014
July 1, 2011 Common Stock Options Issued [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	2.00%
Expected life of options	10 years
Dividend yield	0.00%
Volatility	34.20%
May 28, 2012 Common Stock Options Issued [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	2.00%
Expected life of options	9 years 4 months 24 days
Dividend yield	0.00%
Volatility	32.70%

XML

Income Taxes - Reconciliation of the Federal Statutory Tax Rate to the Total Tax Provision (Detail)	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Income Tax Disclosure [Abstract]
Federal income taxes computed at the statutory rate	34.00%	34.00%
State income taxes, net of federal benefit	3.30%	3.30%
Research & development tax refunds & credits	(5.60%)	(33.60%)
Dividend received deduction	(6.10%)	(3.00%)
Domestic international sales corporation benefits	(4.20%)	(1.80%)
Tax-exempt interest income	(1.80%)	(1.40%)
Other, net	1.70%	(3.70%)
Effective income tax rate	21.30%	(6.20%)

XML

Property and Equipment - Property and Equipment (Detail) (USD $)	Sep. 30, 2014	Sep. 30, 2013
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 24,887,000	$ 25,569,000
Less: Accumulated depreciation and amortization	(17,746,000)	(17,490,000)
Property and equipment, net	7,141,000	8,079,000
Land and Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,296,000	3,540,000
Buildings and Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	12,875,000	13,184,000
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 8,716,000	$ 8,845,000

XML

Related Party Transactions - Additional Information (Detail) (Marcar [Member], USD $)	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Marcar [Member]
Related Party Transaction [Line Items]
Minimum lease payment period	48 months
Lease payments to Marcar	$ 125,000	$ 138,000

XML

Commitments and Contingencies - Additional Information (Detail) (USD $)	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]
Future minimum rental commitments	$ 39,000
Future minimum rental commitments due over period	3 years
Total rental expense	$ 193,000	$ 276,000

XML

Costs and Estimated Earnings in Excess of Billings

12 Months Ended

Sep. 30, 2014

Text Block [Abstract]

Costs and Estimated Earnings in Excess of Billings

NOTE 3 - COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS

Costs and estimated earnings in excess of billings on uncompleted contracts as of September 30, 2014 consisted of the following:

	September 30, 2014
Costs incurred on uncompleted contracts	$	846,000
Estimated earnings		279,000
		1,125,000
Billings to date		781,000
Costs and estimated earnings in excess of billings	$	344,000

There were no costs and estimated earnings in excess of billings on uncompleted contracts as of September 30, 2013.

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Income Taxes - Deferred Tax Assets and Liabilities (Detail) (USD $)	Sep. 30, 2014	Sep. 30, 2013
Deferred Tax Assets:
Accrued liabilities and reserves	$ 288,000	$ 338,000
Allowance for doubtful accounts	91,000	115,000
Inventory	186,000	202,000
R&D tax credits carryforwards	671,000	805,000
Non-deductible stock compensation	194,000	178,000
Net operating losses carryforwards	58,000	59,000
Other	24,000	57,000
Gross Deferred Tax Assets	1,512,000	1,754,000
Deferred and Other Tax Liabilities:
Unrealized gain on investments	(798,000)	(736,000)
Percentage of completion	(104,000)
Property, plant and equipment	(964,000)	(1,179,000)
Unrecognized tax benefits	(300,000)	(300,000)
Other	(39,000)	(23,000)
Gross Deferred and Other Tax Liabilities	(2,205,000)	(2,238,000)
Net Deferred Income and Other Tax Liabilities	$ (693,000)	$ (484,000)

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Nature of Operations and Summary of Significant Accounting Policies - Basic and Diluted Earning per Share (Detail) (USD $)	3 Months Ended								12 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2014	Sep. 30, 2013
Earnings Per Share [Abstract]
Net Income	$ (537,000)	$ 1,663,000	$ 1,901,000	$ 446,000	$ 2,235,000	$ 2,489,000	$ 2,977,000	$ (976,000)	$ 3,473,000	$ 6,725,000
Net Income Diluted									$ 3,473,000	$ 6,725,000
Weighted average common shares outstanding									9,518,000	9,518,000
Common Stock Equivalents									72,000	2,000
Diluted shares outstanding									9,590,000	9,520,000
Basic earnings per common share:
Basic earnings per share	$ (0.06)	$ 0.17	$ 0.20	$ 0.05	$ 0.24	$ 0.26	$ 0.31	$ (0.10)	$ 0.36	$ 0.71
Diluted earnings per common share:
Diluted earnings per share	$ (0.06)	$ 0.17	$ 0.20	$ 0.05	$ 0.24	$ 0.26	$ 0.31	$ (0.10)	$ 0.36	$ 0.71

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Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)	3 Months Ended		12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Exercisable stock options, included in the diluted earnings per share calculation			337,000	84,000
Common Stock Equivalents			72,000	2,000
Anit-dilutive exercisable stock options, not included in the diluted earnings per share calculation			8,000	261,000
Net unrealized gains			$ 167,000	$ 1,141,000
Transfers of investments between Level 1 and Level 2	0	0	0	0
Estimated interest accrued		399,000		399,000
Impairment loss recognized on an asset group			0	0
Time for the collection of cost associated with Pre- contract			1 year
Valuation allowance	0	0	0	0
Separate U.S. Corporate Entities Affiliated With A Foreign-Based Global Company [Member] | Revenue [Member]
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Percentage of concentration	5.00%	4.00%	16.00%	11.00%
Three to Four Years Old Inventory [Member]
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Cost basis reduction in inventory, percentage	50.00%		50.00%
Three to Four Years Old Inventory [Member] | Minimum [Member]
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Inventory, time period on the shelf, years			3 years
Three to Four Years Old Inventory [Member] | Maximum [Member]
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Inventory, time period on the shelf, years			4 years
Four to Five Years Old Inventory [Member]
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Cost basis reduction in inventory, percentage	75.00%		75.00%
Four to Five Years Old Inventory [Member] | Minimum [Member]
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Inventory, time period on the shelf, years			4 years
Four to Five Years Old Inventory [Member] | Maximum [Member]
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Inventory, time period on the shelf, years			5 years
Greater Than Five Years Old Inventory [Member]
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Inventory valuation estimate	$ 0		$ 0
Greater Than Five Years Old Inventory [Member] | Minimum [Member]
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Inventory, time period on the shelf, years			5 years

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Income Taxes - Additional Information (Detail) (USD $)	3 Months Ended								12 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2014	Sep. 30, 2013
Income Taxes [Line Items]
Total incomes taxes paid									$ 1,981,000	$ 202,000
Unrecognized tax benefits	300,000				300,000				300,000	300,000
Additional accruals of UTB's									0	0
Additional accruals of interest expense nor penalties									0	0
Income tax expense (benefit)	(1,572,000)	977,000	1,100,000	435,000	(1,163,000)	873,000	733,000	(835,000)	940,000	(392,000)
R&D tax credits carryforwards	671,000				805,000				671,000	805,000
Net deferred income and other tax liabilities	(693,000)				(484,000)				(693,000)	(484,000)
Florida [Member]
Income Taxes [Line Items]
R&D Credits									244,000
Reduction for income taxes payable									(65,000)
R&D tax credits carryforwards	179,000								179,000
Tax Credit Carryforward, Expiration Date									Sep. 30, 2019
Federal [Member]
Income Taxes [Line Items]
R&D Credits										2,129,000
Reduction for income taxes payable									(313,000)	(497,000)
R&D tax credits carryforwards	492,000				805,000				492,000	805,000
Federal [Member] | Tax Years 2006 Through 2010 [Member]
Income Taxes [Line Items]
Tax refunds related to R&D Credits for tax years 2006 through 2008										827,000
Federal [Member] | Tax Years 2009 Through 2012 [Member]
Income Taxes [Line Items]
R&D Credits										$ 1,302,000
Federal [Member] | Earliest Tax Year [Member]
Income Taxes [Line Items]
Tax Credit Carryforward, Expiration Date									Sep. 30, 2031
Federal [Member] | Latest Tax Year [Member]
Income Taxes [Line Items]
Tax Credit Carryforward, Expiration Date									Sep. 30, 2033

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Nature of Operations and Summary of Significant Accounting Policies - Company's Assets Measured at Fair Value (Detail) (USD $)	Sep. 30, 2014	Sep. 30, 2013
Investment Holdings [Line Items]
Total	$ 87,112,000	$ 83,113,000
Equities [Member]
Investment Holdings [Line Items]
Total	17,102,000	12,634,000
Mutual Funds [Member]
Investment Holdings [Line Items]
Total	19,088,000	28,264,000
Exchange-Traded Funds [Member]
Investment Holdings [Line Items]
Total	1,764,000	5,162,000
Government Securities [Member]
Investment Holdings [Line Items]
Total	43,999,000	2,000,000
Cash and Money Funds [Member]
Investment Holdings [Line Items]
Total	5,159,000	2,122,000
Corporate Bonds [Member]
Investment Holdings [Line Items]
Total		17,376,000
Municipal Bonds [Member]
Investment Holdings [Line Items]
Total		15,555,000
Level 1 [Member]
Investment Holdings [Line Items]
Total	87,112,000	50,182,000
Level 1 [Member] | Equities [Member]
Investment Holdings [Line Items]
Total	17,102,000	12,634,000
Level 1 [Member] | Mutual Funds [Member]
Investment Holdings [Line Items]
Total	19,088,000	28,264,000
Level 1 [Member] | Exchange-Traded Funds [Member]
Investment Holdings [Line Items]
Total	1,764,000	5,162,000
Level 1 [Member] | Government Securities [Member]
Investment Holdings [Line Items]
Total	43,999,000	2,000,000
Level 1 [Member] | Cash and Money Funds [Member]
Investment Holdings [Line Items]
Total	5,159,000	2,122,000
Level 2 [Member]
Investment Holdings [Line Items]
Total		32,931,000
Level 2 [Member] | Corporate Bonds [Member]
Investment Holdings [Line Items]
Total		17,376,000
Level 2 [Member] | Municipal Bonds [Member]
Investment Holdings [Line Items]
Total		$ 15,555,000

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Nature of Operations and Summary of Significant Accounting Policies - Estimated Useful Lives of Assets (Detail)	12 Months Ended
	Sep. 30, 2014
Land Improvements [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets	5 years
Buildings and Improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets	6 years
Buildings and Improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets	40 years
Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets	2 years
Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets	10 years

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Inventories

12 Months Ended

Sep. 30, 2014

Inventory Disclosure [Abstract]

Inventories

NOTE 2 - INVENTORIES, NET

Net inventories consist of the following:

	September 30,
	2014		2013
Raw materials	$	6,097,000	$	6,238,000
Work in process		2,414,000		3,307,000
Finished goods		4,988,000		4,054,000
Used equipment		174,000		527,000
	$	13,673,000	$	14,126,000

At September 30, 2014 and 2013, cost is determined by the last-in, first-out (“LIFO”) method for inventories. The estimated current cost of inventories exceeded their LIFO basis by approximately $5,472,000 and $5,141,000 at September 30, 2014 and 2013, respectively.

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Nature of Operations and Summary of Significant Accounting Policies - Revenues and Long-Term Assets Information Concerning Principal Geographic Areas (Detail) (USD $)	3 Months Ended								12 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2014	Sep. 30, 2013
Segment Reporting Information [Line Items]
Net revenues	$ 4,910,000	$ 10,547,000	$ 14,541,000	$ 10,019,000	$ 7,568,000	$ 18,690,000	$ 17,737,000	$ 4,948,000	$ 40,017,000	$ 48,943,000
Long-Term Assets	7,209,000				8,157,000				7,209,000	8,157,000
United States [Member]
Segment Reporting Information [Line Items]
Net revenues									40,017,000	48,943,000
Long-Term Assets	7,209,000				7,913,000				7,209,000	7,913,000
United Kingdom [Member]
Segment Reporting Information [Line Items]
Net revenues									0	0
Long-Term Assets	$ 0				$ 244,000				$ 0	$ 244,000

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Accrued Expenses - Additional Information (Detail) (USD $)	12 Months Ended
	Sep. 30, 2013
Payables and Accruals [Abstract]
Reduction in estimated advertising expenses for the 2014 ConExpo show	$ 750,000

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Quarterly Financial Information (Detail) (USD $)	3 Months Ended								12 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2014	Sep. 30, 2013
Quarterly Financial Information Disclosure [Abstract]
Net revenue	$ 4,910,000	$ 10,547,000	$ 14,541,000	$ 10,019,000	$ 7,568,000	$ 18,690,000	$ 17,737,000	$ 4,948,000	$ 40,017,000	$ 48,943,000
Production costs	4,590,000	8,266,000	10,851,000	8,487,000	6,278,000	13,720,000	13,411,000	4,531,000	32,194,000	37,940,000
Gross profit	320,000	2,281,000	3,690,000	1,532,000	1,290,000	4,970,000	4,326,000	417,000
Production engineering and development	339,000	352,000	351,000	380,000	391,000	420,000	454,000	448,000	1,422,000	1,713,000
Selling, general and administrative	1,617,000	1,557,000	1,519,000	1,734,000	902,000	1,867,000	1,984,000	1,959,000	6,427,000	6,712,000
Income (loss) from operations	(1,636,000)	372,000	1,820,000	(582,000)	(3,000)	2,683,000	1,888,000	(1,990,000)	(26,000)	2,578,000
Other income (expense), net	(473,000)	2,268,000	1,181,000	1,463,000	1,075,000	679,000	1,822,000	179,000	4,439,000	3,755,000
Income (loss) before income tax expense	(2,109,000)	2,640,000	3,001,000	881,000	1,072,000	3,362,000	3,710,000	(1,811,000)	4,413,000	6,333,000
Income tax expense (benefit)	(1,572,000)	977,000	1,100,000	435,000	(1,163,000)	873,000	733,000	(835,000)	940,000	(392,000)
Net income (loss)	$ (537,000)	$ 1,663,000	$ 1,901,000	$ 446,000	$ 2,235,000	$ 2,489,000	$ 2,977,000	$ (976,000)	$ 3,473,000	$ 6,725,000
Basic earnings (loss) per share	$ (0.06)	$ 0.17	$ 0.20	$ 0.05	$ 0.24	$ 0.26	$ 0.31	$ (0.10)	$ 0.36	$ 0.71
Diluted earnings (loss) per share	$ (0.06)	$ 0.17	$ 0.20	$ 0.05	$ 0.24	$ 0.26	$ 0.31	$ (0.10)	$ 0.36	$ 0.71

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Consolidated Balance Sheets (USD $)	Sep. 30, 2014	Sep. 30, 2013
Current assets:
Cash and cash equivalents	$ 7,193,000	$ 9,557,000
Marketable securities at fair value (cost of $84,997,000 at September 30, 2014 and $81,165,000 at September 30, 2013)	87,112,000	83,113,000
Accounts receivable, less allowance for doubtful accounts of $244,000 at September 30, 2014 and $309,000 at September 30, 2013	1,448,000	1,200,000
Costs and estimated earnings in excess of billings	344,000
Inventories, net	13,673,000	14,126,000
Prepaid expenses	849,000	795,000
Total current assets	110,619,000	108,791,000
Property and equipment, net	7,141,000	8,079,000
Other assets	68,000	78,000
Total Assets	117,828,000	116,948,000
Current liabilities:
Accounts payable	947,000	1,283,000
Customer deposits	324,000	1,943,000
Accrued expenses	1,689,000	2,810,000
Total current liabilities	2,960,000	6,036,000
Deferred and other income taxes	693,000	484,000
Total liabilities	3,653,000	6,520,000
Commitments and contingencies
Shareholders' equity:
Preferred stock, par value $.10 per share; 300,000 shares authorized; none issued	0	0
Capital in excess of par value	10,566,000	10,292,000
Retained earnings	102,657,000	99,184,000
Total shareholders' equity	114,175,000	110,428,000
Total Liabilities and Shareholders' Equity	117,828,000	116,948,000
Common Stock [Member]
Shareholders' equity:
Common stock	801,000	801,000
Total shareholders' equity	801,000	801,000
Class B Stock [Member]
Shareholders' equity:
Common stock	151,000	151,000
Total shareholders' equity	$ 151,000	$ 151,000

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Retirement Benefits - Additional Information (Detail) (USD $)	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Compensation and Retirement Disclosure [Abstract]
Retirement benefits expense under the provisions of the plan	$ 156,000	$ 148,000
Company contributed to employee pension fund		7,000
Maximum hours per week considered for contribution	40 hours
Other obligations regarding pension fund	$ 0

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Consolidated Statements of Cash Flows (USD $)	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operations:
Net Income	$ 3,473,000	$ 6,725,000
Adjustments to reconcile net income to cash provided by (used in) operations:
Purchase of marketable securities	(351,062,000)	(64,516,000)
Proceeds from sale and maturity of marketable securities	348,845,000	64,068,000
Change in value of marketable securities	(1,782,000)	(1,290,000)
Deferred income taxes	209,000	(490,000)
Depreciation and amortization	1,372,000	1,232,000
Provision for doubtful accounts	60,000	65,000
(Gain) loss on disposal of assets	(413,000)	25,000
Stock-based compensation	263,000	243,000
Changes in assets and liabilities:
Accounts receivable	(308,000)	(59,000)
Costs and estimated earnings in excess of billings	(344,000)	3,448,000
Inventories	453,000	(2,208,000)
Prepaid expenses	(54,000)	(13,000)
Accounts payable	(336,000)	(598,000)
Customer deposits	(1,619,000)	1,463,000
Accrued expenses and other	(1,121,000)	(701,000)
Total adjustments	(5,837,000)	669,000
Cash flows provided by (used in) operations	(2,364,000)	7,394,000
Cash flows from investing activities:
Capital expenditures	(696,000)	(1,198,000)
Proceeds from sale of property and equipment	685,000
Cash flows used in investing activities	(11,000)	(1,198,000)
Cash flows from financing activities:
Proceeds from stock option exercises	11,000
Cash flows provided by financing activities	11,000
Net increase (decrease) in cash	(2,364,000)	6,196,000
Cash and cash equivalents at:
Beginning of year	9,557,000	3,361,000
End of year	$ 7,193,000	$ 9,557,000

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Costs and Estimated Earnings in Excess of Billings - Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts (Detail) (USD $)	Sep. 30, 2014	Sep. 30, 2013
Costs in Excess of Billings on Uncompleted Contracts or Programs [Abstract]
Costs incurred on uncompleted contracts	$ 846,000
Estimated earnings	279,000
Costs and estimated earnings in excess of billings on uncompleted contracts	1,125,000	0
Costs and estimated earnings in excess of billings on uncompleted contracts	1,125,000	0
Billings to date	781,000
Costs and estimated earnings in excess of billings	$ 344,000

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Inventories (Tables)

12 Months Ended

Sep. 30, 2014

Inventory Disclosure [Abstract]

Net Inventories

Net inventories consist of the following:

	September 30,
	2014		2013
Raw materials	$	6,097,000	$	6,238,000
Work in process		2,414,000		3,307,000
Finished goods		4,988,000		4,054,000
Used equipment		174,000		527,000
	$	13,673,000	$	14,126,000

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Costs and Estimated Earnings in Excess of Billings - Additional Information (Detail) (USD $)	Sep. 30, 2014	Sep. 30, 2013
Costs in Excess of Billings on Uncompleted Contracts or Programs [Abstract]
Costs and estimated earnings in excess of billings on uncompleted contracts	$ 1,125,000	$ 0

XML

Property and Equipment (Tables)

12 Months Ended

Sep. 30, 2014

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment consist of the following:

	September 30,
	2014			2013
Land and improvements	$	3,296,000		$	3,540,000
Buildings and improvements		12,875,000			13,184,000
Equipment		8,716,000			8,845,000
		24,887,000			25,569,000
Less: Accumulated depreciation and amortization		(17,746,000	)		(17,490,000	)
Property and equipment, net	$	7,141,000		$	8,079,000

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Nature of Operations and Summary of Significant Accounting Policies

12 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Nature of Operations and Summary of Significant Accounting Policies

NOTE 1 - NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Gencor Industries, Inc. and its subsidiaries (collectively, the “Company”) is a diversified, heavy machinery manufacturer for the production of highway construction materials, synthetic fuels and environmental control machinery and equipment.

These consolidated financial statements include the accounts of Gencor Industries, Inc. and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

New Accounting Pronouncements and Policies

No new accounting pronouncements issued or effective during the fiscal year have had or are expected to have a material impact on the Company’s consolidated financial statements.

Use of Estimates

The preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Earnings per Share (“EPS”)

The consolidated financial statements include basic and diluted earnings per share information. Basic earnings per share are based on the weighted average number of shares outstanding. Diluted earnings per share are based on the sum of the weighted average number of shares outstanding plus common stock equivalents. Weighted-average shares issuable upon the exercise of stock options included in the diluted earnings per share calculation as of September 30, 2014 were 337,000 which equates to 72,000 dilutive common stock equivalents. Weighted-average shares issuable upon the exercise of stock options included in the diluted earnings per share calculation as of September 30, 2013 were 84,000 which equates to 2,000 dilutive common stock equivalents. Weighted-average shares issuable upon the exercise of stock options, which were not included in the diluted earnings per share calculation because they were anti-dilutive, were 8,000 in 2014 and 261,000 in 2013.

The following presents the calculation of the basic and diluted earnings per share for the years ended September 30, 2014 and 2013:

	2014						2013
	Net Income		Shares		EPS		Net Income		Shares		EPS
Basic EPS	$	3,473,000		9,518,000	$	0.36	$	6,725,000		9,518,000	$	0.71
Common stock equivalents				72,000						2,000
Diluted EPS	$	3,473,000		9,590,000	$	0.36	$	6,725,000		9,520,000	$	0.71

Cash Equivalents

Cash equivalents consist of short-term certificates of deposit and deposits in money market accounts with original maturities of three months or less.

Marketable Securities

Marketable debt and equity securities are categorized as trading securities and are thus marked to market and stated at fair value. Fair value is determined using the quoted closing or latest bid prices for Level 1 investments and market standard valuation methodologies for Level 2 investments. Realized gains and losses on investment transactions are determined by specific identification and are recognized as incurred in the consolidated statements of operations. Net unrealized gains and losses are reported in the consolidated statements of operations in the current period and represent the change in the fair value of investment holdings during the period.

Fair Value Measurements

The fair value of financial instruments is presented based upon a hierarchy of levels that prioritizes the inputs of valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The fair value of marketable equity securities, mutual funds, exchange-traded funds and government securities are substantially based on quoted market prices (Level 1). Corporate and municipal bonds are valued using market standard valuation methodologies, including: discounted cash flow methodologies, and matrix pricing or other similar techniques. The inputs to these market standard valuation methodologies include, but are not limited to: interest rates, credit standing of the issuer or counterparty, industry sector of the issuer, coupon rate, call provisions, maturity, estimated duration and assumptions regarding liquidity and estimated future cash flows. In addition to bond characteristics, the valuation methodologies incorporate market data, such as actual trades completed, bids and actual dealer quotes, where such information is available. Accordingly, the estimated fair values are based on available market information and judgments about financial instruments (Level 2). Fair values of the Level 2 investments are provided by the Company’s professional investment management firm.

The following table sets forth by level, within the fair value hierarchy, the Company’s assets measured at fair value as of September 30, 2014:

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Equities	$	17,102,000	$	—	$	—	$	17,102,000
Mutual Funds		19,088,000		—		—		19,088,000
Exchange-Traded Funds		1,764,000		—		—		1,764,000
Government Securities		43,999,000		—		—		43,999,000
Cash and Money Funds		5,159,000		—		—		5,159,000
Total	$	87,112,000	$	—	$	—	$	87,112,000

Net unrealized gains and losses recognized during fiscal 2014 on trading securities still held as of September 30, 2014, were $167,000. There were no transfers of investments between Level 1 and Level 2 during the year ended September 30, 2014.

The following table sets forth by level, within the fair value hierarchy, the Company’s assets measured at fair value as of September 30, 2013:

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Equities	$	12,634,000	$	—	$	—	$	12,634,000
Mutual Funds		28,264,000		—		—		28,264,000
Exchange-Traded Funds		5,162,000		—		—		5,162,000
Corporate Bonds		—		17,376,000		—		17,376,000
Municipal Bonds		—		15,555,000		—		15,555,000
Government Securities		2,000,000		—		—		2,000,000
Cash and Money Funds		2,122,000		—		—		2,122,000
Total	$	50,182,000	$	32,931,000	$	—	$	83,113,000

Net unrealized gains and losses recognized during fiscal 2013 on trading securities still held as of September 30, 2013, were $1,141,000. Estimated interest accrued on the corporate and municipal bond portfolio was $399,000 at September 30, 2013. There were no transfers of investments between Level 1 and Level 2 during the year ended September 30, 2013.

The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the short-term nature of these items.

Foreign Currency Transactions

Gains and losses resulting from foreign currency transactions are included in income and were not significant during the years ended September 30, 2014 and 2013.

Risk Management

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, and accounts receivable. The Company maintains its cash accounts in various domestic financial institutions which may from time to time exceed federally insured limits. Operating cash is retained overnight in non-interest-bearing accounts which allow for offsets to treasury service charges. The marketable securities are invested in money funds, mutual funds, exchange-traded funds (ETF’s), government securities, stocks and corporate and municipal bonds through a professional investment advisor. Investment securities are exposed to various risks, such as interest rate, market and credit risks.

The Company’s customers are not concentrated in any specific geographic region, but are concentrated in the road and highway construction industry. The Company extends limited credit to its customers based upon their credit-worthiness and generally requires a significant up-front deposit before beginning construction and full payment subject to hold-back provisions prior to shipment on complete asphalt plant and component orders. The Company establishes an allowance for doubtful accounts based upon the credit risk of specific customers, historical trends and other pertinent information.

Inventories

Inventories are valued at the lower of cost or market, with cost being determined principally by using the last-in, first-out (“LIFO”) method and market defined as replacement cost for raw materials and net realizable value for work in process and finished goods (see Note 2). Appropriate consideration is given to obsolescence, excessive levels, deterioration, possible alternative uses and other factors in determining net realizable value. The cost of work in process and finished goods includes materials, direct labor, variable costs and overhead. The Company evaluates the need to record inventory adjustments on all inventories, including raw material, work in process, finished goods, spare parts and used equipment. Used equipment acquired by the Company on trade-in from customers is carried at estimated net realizable value. Unless specific circumstances warrant different treatment regarding inventory obsolescence, the cost basis of inventories three to four years old are reduced by 50%, while the cost basis of inventories four to five years old are reduced by 75%, and the cost basis of inventories greater than five years old are reduced to zero. Inventory is typically reviewed for obsolescence on an annual basis computed as of September 30, the Company’s fiscal year end. If significant known changes in trends, technology or other specific circumstances that warrant consideration occur during the year, then the impact on obsolescence is considered at that time.

Property and Equipment

Property and equipment are stated at cost (see Note 4). Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the related assets, as follows:

	Years
Land improvements	5
Buildings and improvements	6-40
Equipment	2-10

Impairments

Property and equipment and intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. An impairment loss would be recognized when the carrying amount of an asset exceeds the estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition. The amount of the impairment loss to be recorded is calculated by the excess over its fair value of the asset’s carrying value. Fair value is generally determined using a discounted cash flow analysis. No such impairment loss was recorded during the years ended September 30, 2014 and 2013.

Revenues and Expenses

Revenues from contracts for the design, manufacture and sale of asphalt plants are recognized under the percentage-of-completion method. The percentage-of-completion method of accounting for these contracts recognizes revenue, net of any promotional discounts, and costs in proportion to actual labor costs incurred, as compared with total estimated labor costs expected to be incurred during the entire contract. Pre-contract costs are expensed as incurred. Changes to total estimated contract costs or losses, if any, are recognized in the period in which they are determined. Revenue recognized in excess of amounts billed is classified as current assets under “costs and estimated earnings in excess of billings.” The Company anticipates that all incurred costs associated with these contracts at September 30, 2014, will be billed and collected within one year.

Revenues from all other contracts for the design and manufacture of custom equipment, for service and for parts sales, net of any discounts and return allowances, are recorded when the following four revenue recognition criteria are met: product is delivered or service is performed, persuasive evidence of an arrangement exists, the selling price is fixed or determinable, and collectability is reasonably assured.

The Company’s customers may qualify for certain cash rebates generally based on the level of sales attained during a twelve-month period. Provisions for these rebates, as well as estimated returns and allowances and other adjustments, are provided for in the same period the related sales are recorded. Return allowances, which reduce product revenue, are estimated using historical experience.

Product warranty costs are estimated using historical experience and known issues and are charged to production costs as revenue is recognized.

All product engineering and development costs, and selling, general and administrative expenses are charged to operations as incurred. Provision is made for any anticipated contract losses in the period that the loss becomes evident.

The allowance for doubtful accounts is determined by performing a specific review of all account balances greater than 90 days past due and other higher risk amounts to determine collectability and also adjusting for any known customer payment issues with account balances in the less-than-90-day past due aging category. Account balances are charged off against the allowance for doubtful accounts when they are determined to be uncollectable. Any recoveries of account balances previously considered in the allowance for doubtful accounts reduce future additions to the allowance for doubtful accounts.

Shipping and Handling Costs

Shipping and handling costs are included in production costs in the consolidated statements of operations.

Income Taxes

Income taxes are provided for the tax effects of transactions reported in the consolidated financial statements and consist primarily of taxes currently due, plus deferred taxes (see Note 6).

The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns using current tax rates. The Company and its domestic subsidiaries file a consolidated federal income tax return.

Deferred tax assets and liabilities are measured using the rates expected to apply to taxable income in the years in which the temporary differences are expected to reverse and the credits are expected to be used. The effect on deferred tax assets and liabilities of the change in tax rates is recognized in income in the period that includes the enactment date. All available evidence, both positive and negative, is considered to determine whether, based on the weight of that evidence, a valuation allowance is needed for some portion or all of a deferred tax asset. No such valuation allowances were recorded as of September 30, 2014 and 2013.

Comprehensive Income

For the years ended September 30, 2014 and 2013, other comprehensive income is equal to net income.

Reporting Segments

Information concerning principal geographic areas is as follows:

	2014				2013
	Revenues		Long-Term Assets		Revenues		Long-Term Assets
United States	$	40,017,000	$	7,209,000	$	48,943,000	$	7,913,000
United Kingdom		—		—		—		244,000
Total	$	40,017,000	$	7,209,000	$	48,943,000	$	8,157,000

Revenues are attributed to geographic areas based on the location of the assets producing the revenues. Assets associated with the United Kingdom were disposed of during fiscal 2014.

Customers with 10% (or greater) of Net Revenues

As a result of timing and production schedules of a very large contract and resultant revenue recognition, approximately 5% of total net revenue in the quarter ended September 30, 2014 and 4% of total net revenue for the quarter ended September 30, 2013 was from one or more separate U.S. corporate entities ultimately affiliated with a foreign-based global company. For the years ended September 30, 2014 and 2013, this company represented 16% and 11% of total net revenue, respectively.

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Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2014	Sep. 30, 2013
Marketable securities, cost	$ 84,997,000	$ 81,165,000
Accounts receivable, allowance for doubtful accounts	$ 244,000	$ 309,000
Preferred stock, par value	$ 0.10	$ 0.10
Preferred stock, shares authorized	300,000	300,000
Preferred stock, shares issued	0	0
Common Stock [Member]
Common stock, par value	$ 0.10	$ 0.10
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	8,010,132	8,008,632
Common stock, shares outstanding	8,010,132	8,008,632
Class B Stock [Member]
Common stock, par value	$ 0.10	$ 0.10
Common stock, shares authorized	6,000,000	6,000,000
Common stock, shares issued	1,509,238	1,509,238
Common stock, shares outstanding	1,509,238	1,509,238

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Stock-Based Compensation

12 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

NOTE 11 - STOCK-BASED COMPENSATION

The Company maintains stock-based compensation plans, which provide for the issuance of Company stock to certain directors, officers, key employees and affiliates.

On March 17, 2009, the shareholders of the Company approved the 2009 Incentive Compensation Plan (the “2009 Plan”). The 2009 Plan provides that the total number of shares of Company stock that may be subject to the granting of awards under the 2009 Plan (“Awards”) at any time during the term of the 2009 Plan shall be equal to 800,000 shares of common stock and 160,000 shares of Class B stock. The foregoing limit shall be increased, as provided for in the 2009 Plan. Persons eligible to receive Awards under the 2009 Plan include employees, directors, consultants and other persons who provide services to the Company. The 2009 Plan imposes individual limitations on the amount of certain Awards, in part, to comply with Internal Revenue Code, Section 162(m). The Awards can be in the form of stock options, restricted and deferred stock, performance awards and other stock-based awards, as provided for in the 2009 Plan.

On July 1, 2011, 298,000 common stock options were issued to employees under the 2009 Plan. These options vest at 25% per year starting on October 1, 2012 and each year thereafter through October 1, 2015. As long as the employee remains employed by the Company, these options will be exercisable upon vesting and remain exercisable through October 1, 2021. The Company used the Black-Scholes pricing model to estimate the fair value of the options of $941,000 at time of grant. At September 30, 2014, $237,000 of compensation expense remained to be expensed over the next two years. The following assumptions were used to determine the fair value of the stock options at time of grant:

Risk-free interest rate	2.0	%
Expected life of options	10.0 years
Dividend yield	0.0	%
Volatility	34.2	%

On May 28, 2012, 20,000 common stock options were issued to an employee under the 2009 Plan. These options vest at 25% per year starting on May 28, 2013 and each year thereafter through May 28, 2016. As long as the employee remains employed by the Company, these options will be exercisable upon vesting and remain exercisable through October 1, 2021. The Company used the Black-Scholes pricing model to estimate the fair value of the options of $63,000 at time of grant. At September 30, 2014, $27,000 of compensation expense remained to be expensed through May 28, 2016. The following assumptions were used to determine the fair value of the stock options at time of grant:

Risk-free interest rate	2.0	%
Expected life of options	9.4 years
Dividend yield	0.0	%
Volatility	32.7	%

As of September 30, 2014, 482,000 shares of Company common stock and 160,000 shares of Class B stock are available for granting of Awards under the 2009 Plan.

The following table summarizes option activity under the 2009 Plan:

	Number of Shares			Average Exercise Price Per Share
Options outstanding at September 30, 2013 and 2012		318,000		$	7.655
Options exercised during fiscal 2014		(1,500	)	$	7.689
Options outstanding at September 30, 2014		316,500		$	7.655

No options were granted, forfeited or cancelled during the year ended September 30, 2014. The weighted average remaining contractual life on the options outstanding as of September 30, 2014 is 7 years under the 2009 Plan.

The 1997 Stock Option Plan (the “1997 Plan”) provided for the issuance of incentive stock options and nonqualified stock options to purchase up to 1,200,000 shares of the Company’s common stock, 1,200,000 shares of the Company’s Class B stock and up to 15% of the authorized common stock of any subsidiary. Under the terms of the 1997 Plan, option holders may tender previously owned shares with a market value equal to the exercise price of the options at exercise date, subject to compensation committee approval. Additionally, option holders may, upon compensation committee approval, surrender shares of stock to satisfy federal withholding tax requirements. Options become exercisable in a manner and on such dates and times, as determined by a committee of the Board of Directors. Options expire not more than ten years from the date of grant. The option holders have no shareholder rights until the date of issuance of a stock certificate for such shares.

As of September 30, 2014, there were no options available for future grants under the 1997 Plan.

The following table summarizes option activity under the 1997 Plan:

	Number of Shares		Exercise Price Per Share
Outstanding at September 30, 2014, 2013 and 2012		27,500	$	9.32

The weighted average remaining contractual life on the options outstanding as of September 30, 2014 is 2 years under the 1997 Plan.

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Document and Entity Information (USD $)	12 Months Ended
	Sep. 30, 2014	Mar. 31, 2014	Dec. 02, 2014 Common Stock [Member]	Dec. 02, 2014 Class B Stock [Member]
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Sep. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY
Trading Symbol	GENC
Entity Registrant Name	GENCOR INDUSTRIES INC
Entity Central Index Key	0000064472
Current Fiscal Year End Date	--09-30
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding			8,010,132	1,509,238
Entity Public Float		$ 69,389,200

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Related Party Transactions

12 Months Ended

Sep. 30, 2014

Related Party Transactions [Abstract]

Related Party Transactions

NOTE 12 - RELATED PARTY TRANSACTIONS

Marcar Leasing Corporation (“Marcar”) is engaged in leasing machinery and vehicles to the public and the Company. Marcar is owned by family members of the Company’s chairman. New leases between the Company and Marcar generally provide for equal monthly payments over 48 months. During fiscal 2014 and 2013, the Company made lease payments to Marcar totaling $125,000 and $138,000, respectively.

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Consolidated Statements of Operations (USD $)	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Income Statement [Abstract]
Net revenue	$ 40,017,000	$ 48,943,000
Costs and expenses:
Production costs	32,194,000	37,940,000
Product engineering and development	1,422,000	1,713,000
Selling, general and administrative	6,427,000	6,712,000
Total operating expenses	40,043,000	46,365,000
Income (loss) from operations	(26,000)	2,578,000
Other income (expense), net:
Interest and dividend income, net of fees	1,787,000	2,281,000
Realized and unrealized gains on marketable securities, net	2,212,000	1,456,000
Other	440,000	18,000
Other income (expense), net	4,439,000	3,755,000
Income before income taxes	4,413,000	6,333,000
Income tax expense (benefit)	940,000	(392,000)
Net income	$ 3,473,000	$ 6,725,000
Basic earnings per common share:
Basic earnings per share	$ 0.36	$ 0.71
Diluted earnings per common share:
Diluted earnings per share	$ 0.36	$ 0.71

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Income Taxes

12 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 6 - INCOME TAXES

The provision for income tax expense consists of:

	Years Ended September 30,
	2014		2013
Current:
Federal	$	667,000	$	(48,000	)
State		65,000		146,000
Total current		732,000		98,000
Deferred
Federal		190,000		(447,000	)
State		18,000		(43,000	)
Total deferred		208,000		(490,000	)
Income tax expense (benefit)	$	940,000	$	(392,000	)

A reconciliation of the federal statutory tax rate to the total tax provision is as follows:

	Years Ended September 30,
	2014			2013
Federal income taxes computed at the statutory rate		34.0	%		34.0	%
State income taxes, net of federal benefit		3.3	%		3.3	%
Research & development tax refunds & credits		(5.6	%)		(33.6	%)
Dividend received deduction		(6.1	%)		(3.0	%)
Domestic international sales corporation benefits		(4.2	%)		(1.8	%)
Tax-exempt interest income		(1.8	%)		(1.4	%)
Other, net		1.7	%		(3.7	%)
Effective income tax rate		21.3	%		(6.2	%)

Deferred tax assets and liabilities consist of the following:

	Years Ended September 30,
	2014			2013
Deferred Tax Assets:
Accrued liabilities and reserves	$	288,000		$	338,000
Allowance for doubtful accounts		91,000			115,000
Inventory		186,000			202,000
R&D tax credits carryforwards		671,000			805,000
Non-deductible stock compensation		194,000			178,000
Net operating losses carryforwards		58,000			59,000
Other		24,000			57,000
Gross Deferred Tax Assets		1,512,000			1,754,000
Deferred and Other Tax Liabilities:
Unrealized gain on investments		(798,000	)		(736,000	)
Percentage of completion		(104,000	)		—
Property, plant and equipment		(964,000	)		(1,179,000	)
Unrecognized tax benefits		(300,000	)		(300,000	)
Other		(39,000	)		(23,000	)
Gross Deferred and Other Tax Liabilities		(2,205,000	)		(2,238,000	)
Net Deferred Income and Other Tax Liabilities	$	(693,000	)	$	(484,000	)

Total income taxes paid in fiscal 2014 and 2013 were $1,981,000 and $202,000, respectively.

Generally Accepted Accounting Principles (“GAAP”) prescribes a comprehensive model for the financial recognition, measurement, classification, and disclosure of uncertain tax positions. GAAP contains a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, based on the technical merits of the position. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement.

Significant judgment is required in evaluating the Company’s uncertain tax position and determining the Company’s provision for taxes. Although the Company believes the reserves of unrecognized tax benefits (“UTB’s”) are reasonable, no assurance can be given that the final outcome of these matters will not be different from that which is reflected in the Company’s historical income tax provision and accruals. The Company adjusts these reserves in light of changing facts and circumstances. As of September 30, 2014 and 2013, the Company had UTB’s of $300,000. There were no additional accruals of UTB’s during fiscal years ended September 30, 2014 and 2013.

The Company recognizes interest and penalties accrued related to UTB’s as a component of income tax expense. There were no additional accruals of interest expense nor penalties during fiscal years ended September 30, 2014 and 2013. It is reasonably possible that the amount of the UTB’s with respect to certain unrecognized tax positions will increase or decrease during the next 12 months. The Company does not expect the change to have a material effect on its results of operations or its financial position. The only expected potential reason for change would be the normal expiration of the statute of limitations or the ultimate results stemming from any examinations by taxing authorities. If recognized, the entire amount of UTB’s would have an impact on the Company’s effective tax rate.

The Company received favorable IRS rulings on its research and development tax credits (“R&D Credits”) on amended returns filed for tax years 2006 through 2010 (fiscal years 2007 through 2011). In total, the Company received tax refunds of $827,000 related to R&D Credits for tax years 2006 through 2008 and recorded additional R&D Credits of $1,302,000 related to tax years 2009 through 2012 (fiscal years 2010 through 2013). R&D Credits of $2,129,000 are included in the Company’s income tax benefit of $392,000 in the consolidated statement of operations for the year ended September 30, 2013. Of the $1,302,000 in R&D Credits, $497,000 reduced the Company’s current federal income taxes payable for the year ended September 30, 2013 and $805,000 is included as R&D Credits carry-forwards in the net deferred income and other tax liabilities of $484,000 in the consolidated balance sheet as of September 30, 2013. An additional $313,000 of the remaining $805,000 reduced the Company’s current federal income taxes payable for the year ended September 30, 2014, leaving $492,000 in R&D Credits carryforwards in the net deferred income and other tax liabilities of $693,000 in the consolidated balance sheet as of September 30, 2014. The $492,000 of R&D Credits carryforwards expire in fiscal years 2031 through 2033. The tax rate for fiscal 2014 was negatively impacted by the exclusion of R&D Credits given that Congress has not extended the R&D Credits to 2014 as of September 30, 2014.

During fiscal 2014, the Company also received $244,000 of Florida state research and development credits. $65,000 of these credits reduced the Company’s state income taxes payable in fiscal 2014 and $179,000 is included in the net deferred income and other tax liabilities of $693,000 in the consolidated balance sheet as of September 30, 2014. The $179,000 of Florida state research and development credits carry-forwards expire in fiscal 2019.

The Company files U.S. federal income tax returns, as well as income tax returns in various states. The Company’s U.S. federal income tax returns and most state returns, filed for tax years prior to fiscal year ended September 30, 2010 are no longer subject to examination by taxing authorities due to the expiration of the statute of limitations. The statute of limitations for the Company’s U.S. federal income tax return for the fiscal year ended September 30, 2010 has been extended and will remain open to examination through December 31, 2014.

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Accrued Expenses

12 Months Ended

Sep. 30, 2014

Payables and Accruals [Abstract]

Accrued Expenses

NOTE 5 - ACCRUED EXPENSES

Accrued expenses consist of the following:

	September 30,
	2014		2013
Payroll and related accruals	$	974,000	$	1,061,000
Warranty and related accruals		368,000		373,000
Professional fees		84,000		280,000
Accrued income taxes payable		—		760,000
Other		263,000		336,000
Accrued expenses	$	1,689,000	$	2,810,000

Other accrued expenses in fiscal 2013 included the estimated advertising costs associated with ConExpo. During fiscal 2013, the Company reduced its estimated advertising expenses for the 2014 ConExpo show by $750,000, as management deemed it prudent to curtail such expenditures due to the current condition of the highway construction industry.

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Costs and Estimated Earnings in Excess of Billings (Tables)

12 Months Ended

Sep. 30, 2014

Text Block [Abstract]

Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts

Costs and estimated earnings in excess of billings on uncompleted contracts as of September 30, 2014 consisted of the following:

	September 30, 2014
Costs incurred on uncompleted contracts	$	846,000
Estimated earnings		279,000
		1,125,000
Billings to date		781,000
Costs and estimated earnings in excess of billings	$	344,000

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Quarterly Financial Information

12 Months Ended

Sep. 30, 2014

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information

Quarterly Financial Information (Unaudited)

	Quarter Ended
	December 31			March 31		June 30		September 30
2014
Net revenue	$	10,019,000		$	14,541,000	$	10,547,000	$	4,910,000
Production costs		8,487,000			10,851,000		8,266,000		4,590,000
Gross profit		1,532,000			3,690,000		2,281,000		320,000
Production engineering and development		380,000			351,000		352,000		339,000
Selling, general and administrative		1,734,000			1,519,000		1,557,000		1,617,000
Income (loss) from operations		(582,000	)		1,820,000		372,000		(1,636,000	)
Other income (expense), net		1,463,000			1,181,000		2,268,000		(473,000	)
Income (loss) before income tax expense		881,000			3,001,000		2,640,000		(2,109,000	)
Income tax expense (benefit)		435,000			1,100,000		977,000		(1,572,000	)
Net income (loss)	$	446,000		$	1,901,000	$	1,663,000	$	(537,000	)
Net income (loss) – basic earnings (loss) per share	$	0.05		$	0.20	$	0.17	$	(0.06	)
Net income (loss) – diluted earnings (loss) per share	$	0.05		$	0.20	$	0.17	$	(0.06	)
2013
Net revenue	$	4,948,000		$	17,737,000	$	18,690,000	$	7,568,000
Production costs		4,531,000			13,411,000		13,720,000		6,278,000
Gross profit		417,000			4,326,000		4,970,000		1,290,000
Production engineering and development		448,000			454,000		420,000		391,000
Selling, general and administrative		1,959,000			1,984,000		1,867,000		902,000
Income (loss) from operations		(1,990,000	)		1,888,000		2,683,000		(3,000	)
Other income (expense), net		179,000			1,822,000		679,000		1,075,000
Income (loss) before income tax expense		(1,811,000	)		3,710,000		3,362,000		1,072,000
Income tax expense (benefit)		(835,000	)		733,000		873,000		(1,163,000	)
Net income (loss)	$	(976,000	)	$	2,977,000	$	2,489,000	$	2,235,000
Net income (loss) – basic earnings (loss) per share	$	(0.10	)	$	0.31	$	0.26	$	0.24
Net income (loss) – diluted earnings (loss) per share	$	(0.10	)	$	0.31	$	0.26	$	0.24

The net income (loss) per share on a year-to-date calculation may not equal the total of the quarterly calculations due to rounding.

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Commitments and Contingencies

12 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

NOTE 9 - COMMITMENTS AND CONTINGENCIES

Leases

The Company leases certain equipment under non-cancelable operating leases. Future minimum rental commitments under these leases at September 30, 2014 totaled $39,000 and are due over the next three years.

Total rental expense for the fiscal years ended September 30, 2014 and 2013 was $193,000 and $276,000, respectively.

Litigation

The Company has various pending litigation and other claims. Those claims which are made in the ordinary course of business may be covered in whole or in part by insurance, and if found against the Company, management does not believe these matters will have a material effect on the Company’s financial position, results of operations or cash flows. Management has reviewed all litigation matters arising in the ordinary course of business and has made provisions, not deemed material, for any estimable losses and expenses of litigation.

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Retirement Benefits

12 Months Ended

Sep. 30, 2014

Compensation and Retirement Disclosure [Abstract]

Retirement Benefits

NOTE 7 - RETIREMENT BENEFITS

The Company has a voluntary 401(k) employee benefit plan, which covers all eligible, domestic employees. The Company makes discretionary matching contributions subject to a maximum level, in accordance with the terms of the plan. The Company charged approximately $156,000 and $148,000 to expense under the provisions of the plan during the fiscal years 2014 and 2013, respectively.

The Company has a collective bargaining agreement covering production and maintenance employees at its Marquette, Iowa facility. Under this agreement, the Company contributed approximately $7,000 in fiscal 2013 to an employee pension fund. The amount contributed by the Company was based on an hourly rate per hours worked up to a maximum of 40 hours per week per employee. The Company’s obligation to contribute to this pension fund ended effective November 1, 2012. The Company has no remaining obligations with respect to this fund. All eligible employees can participate in the voluntary 401(k) employee benefit plan.

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Long-Term Debt

12 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Long-Term Debt

NOTE 8 - LONG-TERM DEBT

The Company had no long-term debt outstanding at September 30, 2014 or 2013. The Company does not currently require a credit facility, but continues to evaluate its needs and options for such a facility.

As of September 30, 2014, total cash deposits with insurance companies covering collateral needs were $135,000.

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Shareholders' Equity

12 Months Ended

Sep. 30, 2014

Equity [Abstract]

Shareholders' Equity

NOTE 10 - SHAREHOLDERS’ EQUITY

Under the Company’s amended certificate of incorporation, certain rights of the holders of the Company’s common stock are modified by shares of Class B stock for as long as such shares shall remain outstanding. During that period, holders of common stock will have the right to elect approximately 25% of the Company’s Board of Directors, and conversely, Class B stock will be entitled to elect approximately 75% of the Company’s Board of Directors. During the period when common stock and Class B stock are outstanding, certain matters submitted to a vote of shareholders will also require approval of the holders of common stock and Class B stock, each voting separately as a class. Common stock and Class B shareholders have equal rights with respect to dividends, preferences, and rights, including rights in liquidation.

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Inventories - Additional Information (Detail) (USD $)	Sep. 30, 2014	Sep. 30, 2013
Inventory Disclosure [Abstract]
LIFO reserves of inventories	$ 5,472,000	$ 5,141,000

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Stock-Based Compensation - Summary of Option Activity under Stock-Based Compensation Plan (Detail) (USD $)	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
2009 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Options exercised	(1,500)
Number of Shares, Options outstanding	316,500	318,000	318,000
Average Exercise Price Per Share, Options exercised	$ 7.689
Average Exercise Price Per Share, Options outstanding	$ 7.655	$ 7.655	$ 7.655
1997 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Options outstanding	27,500	27,500	27,500
Average Exercise Price Per Share, Options outstanding	$ 9.32	$ 9.32	$ 9.32

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Nature of Operations and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Basic and Diluted Earnings Per Share

The following presents the calculation of the basic and diluted earnings per share for the years ended September 30, 2014 and 2013:

	2014						2013
	Net Income		Shares		EPS		Net Income		Shares		EPS
Basic EPS	$	3,473,000		9,518,000	$	0.36	$	6,725,000		9,518,000	$	0.71
Common stock equivalents				72,000						2,000
Diluted EPS	$	3,473,000		9,590,000	$	0.36	$	6,725,000		9,520,000	$	0.71

Company's Assets Measured at Fair Value

The following table sets forth by level, within the fair value hierarchy, the Company’s assets measured at fair value as of September 30, 2014:

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Equities	$	17,102,000	$	—	$	—	$	17,102,000
Mutual Funds		19,088,000		—		—		19,088,000
Exchange-Traded Funds		1,764,000		—		—		1,764,000
Government Securities		43,999,000		—		—		43,999,000
Cash and Money Funds		5,159,000		—		—		5,159,000
Total	$	87,112,000	$	—	$	—	$	87,112,000

The following table sets forth by level, within the fair value hierarchy, the Company’s assets measured at fair value as of September 30, 2013:

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Equities	$	12,634,000	$	—	$	—	$	12,634,000
Mutual Funds		28,264,000		—		—		28,264,000
Exchange-Traded Funds		5,162,000		—		—		5,162,000
Corporate Bonds		—		17,376,000		—		17,376,000
Municipal Bonds		—		15,555,000		—		15,555,000
Government Securities		2,000,000		—		—		2,000,000
Cash and Money Funds		2,122,000		—		—		2,122,000
Total	$	50,182,000	$	32,931,000	$	—	$	83,113,000

Estimated Useful Lives of Assets

Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the related assets, as follows:

	Years
Land improvements	5
Buildings and improvements	6-40
Equipment	2-10

Revenues and Long-Term Assets Information Concerning Principal Geographic Areas

Information concerning principal geographic areas is as follows:

	2014				2013
	Revenues		Long-Term Assets		Revenues		Long-Term Assets
United States	$	40,017,000	$	7,209,000	$	48,943,000	$	7,913,000
United Kingdom		—		—		—		244,000
Total	$	40,017,000	$	7,209,000	$	48,943,000	$	8,157,000

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Income Taxes (Tables)

12 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Provision for Income Tax Expense

The provision for income tax expense consists of:

	Years Ended September 30,
	2014		2013
Current:
Federal	$	667,000	$	(48,000	)
State		65,000		146,000
Total current		732,000		98,000
Deferred
Federal		190,000		(447,000	)
State		18,000		(43,000	)
Total deferred		208,000		(490,000	)
Income tax expense (benefit)	$	940,000	$	(392,000	)

Reconciliation of the Federal Statutory Tax Rate to the Total Tax Provision

A reconciliation of the federal statutory tax rate to the total tax provision is as follows:

	Years Ended September 30,
	2014			2013
Federal income taxes computed at the statutory rate		34.0	%		34.0	%
State income taxes, net of federal benefit		3.3	%		3.3	%
Research & development tax refunds & credits		(5.6	%)		(33.6	%)
Dividend received deduction		(6.1	%)		(3.0	%)
Domestic international sales corporation benefits		(4.2	%)		(1.8	%)
Tax-exempt interest income		(1.8	%)		(1.4	%)
Other, net		1.7	%		(3.7	%)
Effective income tax rate		21.3	%		(6.2	%)

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities consist of the following:

	Years Ended September 30,
	2014			2013
Deferred Tax Assets:
Accrued liabilities and reserves	$	288,000		$	338,000
Allowance for doubtful accounts		91,000			115,000
Inventory		186,000			202,000
R&D tax credits carryforwards		671,000			805,000
Non-deductible stock compensation		194,000			178,000
Net operating losses carryforwards		58,000			59,000
Other		24,000			57,000
Gross Deferred Tax Assets		1,512,000			1,754,000
Deferred and Other Tax Liabilities:
Unrealized gain on investments		(798,000	)		(736,000	)
Percentage of completion		(104,000	)		—
Property, plant and equipment		(964,000	)		(1,179,000	)
Unrecognized tax benefits		(300,000	)		(300,000	)
Other		(39,000	)		(23,000	)
Gross Deferred and Other Tax Liabilities		(2,205,000	)		(2,238,000	)
Net Deferred Income and Other Tax Liabilities	$	(693,000	)	$	(484,000	)

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Stock-Based Compensation - Additional Information (Detail) (USD $)	12 Months Ended		0 Months Ended	12 Months Ended	0 Months Ended	12 Months Ended			12 Months Ended
	Sep. 30, 2014 2009 Plan [Member]	Sep. 30, 2014 1997 Plan [Member]	Jul. 01, 2011 July 1, 2011 Common Stock Options Issued [Member] 2009 Plan [Member]	Sep. 30, 2014 July 1, 2011 Common Stock Options Issued [Member] 2009 Plan [Member]	May 28, 2012 May 28, 2012 Common Stock Options Issued [Member] 2009 Plan [Member]	Sep. 30, 2014 May 28, 2012 Common Stock Options Issued [Member] 2009 Plan [Member]	Sep. 30, 2014 Common Stock [Member] 2009 Plan [Member]	Mar. 17, 2009 Common Stock [Member] 2009 Plan [Member]	Sep. 30, 2014 Common Stock [Member] 1997 Plan [Member]	Sep. 30, 2014 Class B Stock [Member] 2009 Plan [Member]	Mar. 17, 2009 Class B Stock [Member] 2009 Plan [Member]	Sep. 30, 2014 Class B Stock [Member] 1997 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares granting of awards								800,000	1,200,000		160,000	1,200,000
Common stock options issued to employees	0		298,000		20,000
Options vesting rate			25.00%		25.00%
Options vesting period				Options vest at 25% per year starting on October 1, 2012 and each year thereafter through October 1, 2015		Options vest at 25% per year starting on May 28, 2013 and each year thereafter through May 28, 2016
Options exercisable				Oct. 01, 2021		Oct. 01, 2021
Estimated fair value of options at time of grant			$ 941,000		$ 63,000
Compensation expense remaining to be expensed				$ 237,000		$ 27,000
Shares available for granting		0					482,000			160,000
Remaining contractual life on the options outstanding	7 years	2 years
Number of options, forfeited or cancelled	0
Percentage of common stock to be purchased of authorized common stock of any subsidiary									15.00%
Options expiration period after date of grant									10 years

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Income Taxes - Provision for Income Tax Expense (Detail) (USD $)	3 Months Ended								12 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2014	Sep. 30, 2013
Current:
Federal									$ 667,000	$ (48,000)
State									65,000	146,000
Total current									732,000	98,000
Deferred
Federal									190,000	(447,000)
State									18,000	(43,000)
Total deferred									208,000	(490,000)
Income tax expense (benefit)	$ (1,572,000)	$ 977,000	$ 1,100,000	$ 435,000	$ (1,163,000)	$ 873,000	$ 733,000	$ (835,000)	$ 940,000	$ (392,000)

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Consolidated Statements of Shareholders' Equity (USD $)	Total	Capital in Excess of Par Value [Member]	Retained Earnings [Member]	Common Stock [Member]	Class B Stock [Member]
Beginning balance at Sep. 30, 2012	$ 103,460,000	$ 10,049,000	$ 92,459,000	$ 801,000	$ 151,000
Beginning balance, shares at Sep. 30, 2012				8,008,632	1,509,238
Net Income	6,725,000		6,725,000
Stock-based compensation	243,000	243,000
Ending balance at Sep. 30, 2013	110,428,000	10,292,000	99,184,000	801,000	151,000
Ending balance, shares at Sep. 30, 2013				8,008,632	1,509,238
Net Income	3,473,000		3,473,000
Stock-based compensation	263,000	263,000
Stock options exercised	11,000	11,000
Stock options exercised, shares				1,500
Ending balance at Sep. 30, 2014	$ 114,175,000	$ 10,566,000	$ 102,657,000	$ 801,000	$ 151,000
Ending balance, shares at Sep. 30, 2014				8,010,132	1,509,238

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Property and Equipment

12 Months Ended

Sep. 30, 2014

Property, Plant and Equipment [Abstract]

Property and Equipment

NOTE 4 - PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

	September 30,
	2014			2013
Land and improvements	$	3,296,000		$	3,540,000
Buildings and improvements		12,875,000			13,184,000
Equipment		8,716,000			8,845,000
		24,887,000			25,569,000
Less: Accumulated depreciation and amortization		(17,746,000	)		(17,490,000	)
Property and equipment, net	$	7,141,000		$	8,079,000

Property and equipment includes approximately $6,190,000 and $6,772,000 of fully depreciated assets, which remained in service during fiscal 2014 and 2013, respectively.

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Stock-Based Compensation (Tables)

12 Months Ended

Sep. 30, 2014

2009 Plan [Member]

Option Activity under Stock-Based Compensation Plan

The following table summarizes option activity under the 2009 Plan:

	Number of Shares			Average Exercise Price Per Share
Options outstanding at September 30, 2013 and 2012		318,000		$	7.655
Options exercised during fiscal 2014		(1,500	)	$	7.689
Options outstanding at September 30, 2014		316,500		$	7.655

1997 Plan [Member]

Option Activity under Stock-Based Compensation Plan

The following table summarizes option activity under the 1997 Plan:

	Number of Shares		Exercise Price Per Share
Outstanding at September 30, 2014, 2013 and 2012		27,500	$	9.32

July 1, 2011 Common Stock Options Issued [Member]

Fair Value of Stock Options at Time of Grant

The following assumptions were used to determine the fair value of the stock options at time of grant:

Risk-free interest rate	2.0	%
Expected life of options	10.0 years
Dividend yield	0.0	%
Volatility	34.2	%

May 28, 2012 Common Stock Options Issued [Member]

Fair Value of Stock Options at Time of Grant

The following assumptions were used to determine the fair value of the stock options at time of grant:

Risk-free interest rate	2.0	%
Expected life of options	9.4 years
Dividend yield	0.0	%
Volatility	32.7	%

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Property and Equipment - Additional Information (Detail) (USD $)	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Property, Plant and Equipment [Abstract]
Property and equipment (fully depreciated assets)	$ 6,190,000	$ 6,772,000

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Nature of Operations and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

New Accounting Pronouncements and Policies

New Accounting Pronouncements and Policies

No new accounting pronouncements issued or effective during the fiscal year have had or are expected to have a material impact on the Company’s consolidated financial statements.

Use of Estimates

Use of Estimates

The preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Earnings Per Share ("EPS")

Earnings per Share (“EPS”)

The consolidated financial statements include basic and diluted earnings per share information. Basic earnings per share are based on the weighted average number of shares outstanding. Diluted earnings per share are based on the sum of the weighted average number of shares outstanding plus common stock equivalents. Weighted-average shares issuable upon the exercise of stock options included in the diluted earnings per share calculation as of September 30, 2014 were 337,000 which equates to 72,000 dilutive common stock equivalents. Weighted-average shares issuable upon the exercise of stock options included in the diluted earnings per share calculation as of September 30, 2013 were 84,000 which equates to 2,000 dilutive common stock equivalents. Weighted-average shares issuable upon the exercise of stock options, which were not included in the diluted earnings per share calculation because they were anti-dilutive, were 8,000 in 2014 and 261,000 in 2013.

The following presents the calculation of the basic and diluted earnings per share for the years ended September 30, 2014 and 2013:

	2014						2013
	Net Income		Shares		EPS		Net Income		Shares		EPS
Basic EPS	$	3,473,000		9,518,000	$	0.36	$	6,725,000		9,518,000	$	0.71
Common stock equivalents				72,000						2,000
Diluted EPS	$	3,473,000		9,590,000	$	0.36	$	6,725,000		9,520,000	$	0.71

Cash Equivalents

Cash Equivalents

Cash equivalents consist of short-term certificates of deposit and deposits in money market accounts with original maturities of three months or less.

Marketable Securities

Marketable Securities

Marketable debt and equity securities are categorized as trading securities and are thus marked to market and stated at fair value. Fair value is determined using the quoted closing or latest bid prices for Level 1 investments and market standard valuation methodologies for Level 2 investments. Realized gains and losses on investment transactions are determined by specific identification and are recognized as incurred in the consolidated statements of operations. Net unrealized gains and losses are reported in the consolidated statements of operations in the current period and represent the change in the fair value of investment holdings during the period.

Fair Value Measurements

Fair Value Measurements

The fair value of financial instruments is presented based upon a hierarchy of levels that prioritizes the inputs of valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The fair value of marketable equity securities, mutual funds, exchange-traded funds and government securities are substantially based on quoted market prices (Level 1). Corporate and municipal bonds are valued using market standard valuation methodologies, including: discounted cash flow methodologies, and matrix pricing or other similar techniques. The inputs to these market standard valuation methodologies include, but are not limited to: interest rates, credit standing of the issuer or counterparty, industry sector of the issuer, coupon rate, call provisions, maturity, estimated duration and assumptions regarding liquidity and estimated future cash flows. In addition to bond characteristics, the valuation methodologies incorporate market data, such as actual trades completed, bids and actual dealer quotes, where such information is available. Accordingly, the estimated fair values are based on available market information and judgments about financial instruments (Level 2). Fair values of the Level 2 investments are provided by the Company’s professional investment management firm.

The following table sets forth by level, within the fair value hierarchy, the Company’s assets measured at fair value as of September 30, 2014:

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Equities	$	17,102,000	$	—	$	—	$	17,102,000
Mutual Funds		19,088,000		—		—		19,088,000
Exchange-Traded Funds		1,764,000		—		—		1,764,000
Government Securities		43,999,000		—		—		43,999,000
Cash and Money Funds		5,159,000		—		—		5,159,000
Total	$	87,112,000	$	—	$	—	$	87,112,000

Net unrealized gains and losses recognized during fiscal 2014 on trading securities still held as of September 30, 2014, were $167,000. There were no transfers of investments between Level 1 and Level 2 during the year ended September 30, 2014.

The following table sets forth by level, within the fair value hierarchy, the Company’s assets measured at fair value as of September 30, 2013:

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Equities	$	12,634,000	$	—	$	—	$	12,634,000
Mutual Funds		28,264,000		—		—		28,264,000
Exchange-Traded Funds		5,162,000		—		—		5,162,000
Corporate Bonds		—		17,376,000		—		17,376,000
Municipal Bonds		—		15,555,000		—		15,555,000
Government Securities		2,000,000		—		—		2,000,000
Cash and Money Funds		2,122,000		—		—		2,122,000
Total	$	50,182,000	$	32,931,000	$	—	$	83,113,000

Net unrealized gains and losses recognized during fiscal 2013 on trading securities still held as of September 30, 2013, were $1,141,000. Estimated interest accrued on the corporate and municipal bond portfolio was $399,000 at September 30, 2013. There were no transfers of investments between Level 1 and Level 2 during the year ended September 30, 2013.

The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the short-term nature of these items.

Foreign Currency Transactions

Foreign Currency Transactions

Gains and losses resulting from foreign currency transactions are included in income and were not significant during the years ended September 30, 2014 and 2013.

Risk Management

Risk Management

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, and accounts receivable. The Company maintains its cash accounts in various domestic financial institutions which may from time to time exceed federally insured limits. Operating cash is retained overnight in non-interest-bearing accounts which allow for offsets to treasury service charges. The marketable securities are invested in money funds, mutual funds, exchange-traded funds (ETF’s), government securities, stocks and corporate and municipal bonds through a professional investment advisor. Investment securities are exposed to various risks, such as interest rate, market and credit risks.

The Company’s customers are not concentrated in any specific geographic region, but are concentrated in the road and highway construction industry. The Company extends limited credit to its customers based upon their credit-worthiness and generally requires a significant up-front deposit before beginning construction and full payment subject to hold-back provisions prior to shipment on complete asphalt plant and component orders. The Company establishes an allowance for doubtful accounts based upon the credit risk of specific customers, historical trends and other pertinent information.

Inventories

Inventories

Inventories are valued at the lower of cost or market, with cost being determined principally by using the last-in, first-out (“LIFO”) method and market defined as replacement cost for raw materials and net realizable value for work in process and finished goods (see Note 2). Appropriate consideration is given to obsolescence, excessive levels, deterioration, possible alternative uses and other factors in determining net realizable value. The cost of work in process and finished goods includes materials, direct labor, variable costs and overhead. The Company evaluates the need to record inventory adjustments on all inventories, including raw material, work in process, finished goods, spare parts and used equipment. Used equipment acquired by the Company on trade-in from customers is carried at estimated net realizable value. Unless specific circumstances warrant different treatment regarding inventory obsolescence, the cost basis of inventories three to four years old are reduced by 50%, while the cost basis of inventories four to five years old are reduced by 75%, and the cost basis of inventories greater than five years old are reduced to zero. Inventory is typically reviewed for obsolescence on an annual basis computed as of September 30, the Company’s fiscal year end. If significant known changes in trends, technology or other specific circumstances that warrant consideration occur during the year, then the impact on obsolescence is considered at that time.

Property and Equipment

Property and Equipment

Property and equipment are stated at cost (see Note 4). Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the related assets, as follows:

	Years
Land improvements	5
Buildings and improvements	6-40
Equipment	2-10

Impairments

Impairments

Property and equipment and intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. An impairment loss would be recognized when the carrying amount of an asset exceeds the estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition. The amount of the impairment loss to be recorded is calculated by the excess over its fair value of the asset’s carrying value. Fair value is generally determined using a discounted cash flow analysis. No such impairment loss was recorded during the years ended September 30, 2014 and 2013.

Revenues and Expenses

Revenues and Expenses

Revenues from contracts for the design, manufacture and sale of asphalt plants are recognized under the percentage-of-completion method. The percentage-of-completion method of accounting for these contracts recognizes revenue, net of any promotional discounts, and costs in proportion to actual labor costs incurred, as compared with total estimated labor costs expected to be incurred during the entire contract. Pre-contract costs are expensed as incurred. Changes to total estimated contract costs or losses, if any, are recognized in the period in which they are determined. Revenue recognized in excess of amounts billed is classified as current assets under “costs and estimated earnings in excess of billings.” The Company anticipates that all incurred costs associated with these contracts at September 30, 2014, will be billed and collected within one year.

Revenues from all other contracts for the design and manufacture of custom equipment, for service and for parts sales, net of any discounts and return allowances, are recorded when the following four revenue recognition criteria are met: product is delivered or service is performed, persuasive evidence of an arrangement exists, the selling price is fixed or determinable, and collectability is reasonably assured.

The Company’s customers may qualify for certain cash rebates generally based on the level of sales attained during a twelve-month period. Provisions for these rebates, as well as estimated returns and allowances and other adjustments, are provided for in the same period the related sales are recorded. Return allowances, which reduce product revenue, are estimated using historical experience.

Product warranty costs are estimated using historical experience and known issues and are charged to production costs as revenue is recognized.

All product engineering and development costs, and selling, general and administrative expenses are charged to operations as incurred. Provision is made for any anticipated contract losses in the period that the loss becomes evident.

The allowance for doubtful accounts is determined by performing a specific review of all account balances greater than 90 days past due and other higher risk amounts to determine collectability and also adjusting for any known customer payment issues with account balances in the less-than-90-day past due aging category. Account balances are charged off against the allowance for doubtful accounts when they are determined to be uncollectable. Any recoveries of account balances previously considered in the allowance for doubtful accounts reduce future additions to the allowance for doubtful accounts.

Shipping and Handling Costs

Shipping and Handling Costs

Shipping and handling costs are included in production costs in the consolidated statements of operations.

Income Taxes

Income Taxes

Income taxes are provided for the tax effects of transactions reported in the consolidated financial statements and consist primarily of taxes currently due, plus deferred taxes (see Note 6).

The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns using current tax rates. The Company and its domestic subsidiaries file a consolidated federal income tax return.

Deferred tax assets and liabilities are measured using the rates expected to apply to taxable income in the years in which the temporary differences are expected to reverse and the credits are expected to be used. The effect on deferred tax assets and liabilities of the change in tax rates is recognized in income in the period that includes the enactment date. All available evidence, both positive and negative, is considered to determine whether, based on the weight of that evidence, a valuation allowance is needed for some portion or all of a deferred tax asset. No such valuation allowances were recorded as of September 30, 2014 and 2013.

Comprehensive Income

Comprehensive Income

For the years ended September 30, 2014 and 2013, other comprehensive income is equal to net income.

Reporting Segments

Reporting Segments

Information concerning principal geographic areas is as follows:

	2014				2013
	Revenues		Long-Term Assets		Revenues		Long-Term Assets
United States	$	40,017,000	$	7,209,000	$	48,943,000	$	7,913,000
United Kingdom		—		—		—		244,000
Total	$	40,017,000	$	7,209,000	$	48,943,000	$	8,157,000

Revenues are attributed to geographic areas based on the location of the assets producing the revenues. Assets associated with the United Kingdom were disposed of during fiscal 2014.

Customers with 10% (or greater) of Net Revenues

Customers with 10% (or greater) of Net Revenues

As a result of timing and production schedules of a very large contract and resultant revenue recognition, approximately 5% of total net revenue in the quarter ended September 30, 2014 and 4% of total net revenue for the quarter ended September 30, 2013 was from one or more separate U.S. corporate entities ultimately affiliated with a foreign-based global company. For the years ended September 30, 2014 and 2013, this company represented 16% and 11% of total net revenue, respectively.