UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of the Securities Exchange Act of 1934
Date of Report:
(Date of earliest event reported)
(Exact name of registrant as specified in its charter)
(Address of principal executive offices) (Zip Code)
(Registrant’s telephone number, including area code)
| (State or other jurisdiction of incorporated or organization) |
Commission File Number |
(I.R.S. Employer Identification No.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered or to be registered pursuant to Section 12(b) of the Act
| Title of Each Class |
Trading Symbol(s) |
Name of Exchange on which registered | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02. | Results of Operations and Financial Condition. |
On December 13, 2023 Gencor Industries, Inc. issued a press release announcing its financial results for the full year and fourth quarter of fiscal 2023. A copy of the press release is attached as Exhibit 99.1.
The information in this Form 8-K and the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
| Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits
| 99.1 | Earnings Release dated December 13, 2023 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| GENCOR INDUSTRIES, INC. | ||||||
| December 13, 2023 | By: | /s/ Marc G. Elliott | ||||
| Marc G. Elliott, President | ||||||
| December 13, 2023 | By: | /s/ Eric E. Mellen | ||||
| Eric E. Mellen, Chief Financial Officer | ||||||
Index to Exhibits
| Exhibit |
Description | |
| 99.1 | Earnings Release dated December 13, 2023 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |
Exhibit 99.1
GENCOR RELEASES FOURTH QUARTER AND FISCAL YEAR 2023 RESULTS
December 13, 2023 (PRIME NEWSWIRE)—Gencor Industries, Inc. (the “Company” or “Gencor”) (NYSE American: GENC) announced today net revenue for the fourth quarter of 2023 of $20.9 million compared to $23.1 million for the quarter ended September 30, 2022. The change in net revenue reflects reduced shipments on point-in-time contract orders due to timing of customer shipments. Gross profit as a percentage of net revenue was 31.7% for the quarter ended September 30, 2023, an increase from 21.5% for the quarter ended September 30, 2022, due to increased parts sales at higher margins, improved efficiency, absorption, and favorable price realization.
Operating income for the quarter ended September 30, 2023 was $2.7 million compared to $1.2 million for the quarter ended September 30, 2022. The Company had net non-operating income of $0.9 million for the quarter ended September 30, 2023 compared to net non-operating expense of $(1.8) million for the quarter ended September 30, 2022. The Company’s income tax expense was $0.5 million for the quarter ended September 30, 2023 compared to an income tax benefit of $(1.2) million for the quarter ended September 30, 2022. Net income for the quarter ended September 30, 2023 was $3.1 million compared to $0.5 million for the quarter ended September 30, 2022.
Net revenue for the year ended September 30, 2023 increased to $105.1 million from $103.5 million for the year ended September 30, 2022. Gross profit margin was 27.6% in fiscal 2023, an increase from 19.9% in fiscal 2022 due to increased parts sales and improved efficiency, absorption and favorable price realization.
Product engineering and development expenses decreased by $0.9 million to $3.5 million for the year ended September 30, 2023, as compared to $4.3 million for the year ended September 30, 2022 due primarily to reduced headcount and improved efficiency. Selling, general and administrative (“SG&A”) expenses increased slightly to $12.2 million for the year ended September 30, 2023, compared to $12.1 million for the year ended September 30, 2022. Increased SG&A expenses related to trade shows were offset by reduced professional fees.
The Company had operating income for the year ended September 30, 2023 of $13.4 million compared to $4.2 million for the year ended September 30, 2022. The increase in operating income was due to improved gross profit margins and reduced operating expenses. The Company had net non-operating income of $5.4 million for the year ended September 30, 2023 compared to net non-operating expense of $(5.9) million for the year ended September 30, 2022. Interest income for the year ended September 30, 2023 as compared to the prior year increased due to higher rates earned on fixed income investments coupled with the Company reallocating a majority of its holdings in equities to fixed income in January 2023. Net realized and unrealized gains on marketable securities were $3.2 million for the year ended September 30, 2023 versus net realized and unrealized losses of $(7.0) million for the year ended September 30, 2022. The higher gains in fiscal 2023 were due to a stronger domestic stock market.
The effective income tax rate for fiscal 2023 was 21.9% versus (78.0%) in fiscal 2022.
Net income for the year ended September 30, 2023 was $14.7 million ($1.00 per basic and diluted share) versus a net loss of $(0.4) million ($(0.03) per basic and diluted share) for the year ended September 30, 2022.
At September 30, 2023, the Company had $101.3 million in cash and marketable securities, an increase of $2.4 million over the September 30, 2022 balance of $98.9 million. The Company’s working capital was $164.8 million at September 30, 2023 versus $150.1 million at September 30, 2022. The Company has no short-term or long-term debt.
The Company’s backlog was $57.8 million at December 1, 2023 compared to $43.2 million at December 1, 2022.
Marc Elliott, Gencor’s President, stated, “We kicked-off our fiscal 2024 selling season with very strong demand and sales of our equipment which have remained steady. As a result, our backlog has increased well above historic norms and sales inquiries continue to be elevated, giving confidence that we should continue to benefit from incremental U.S. government infrastructure funding.
Our fourth quarter revenue of $20.9 million was reflective of a moderate decrease from the prior year due to timing of shipments and customer delays unrelated to the Company. Nevertheless, overall total revenues for fiscal 2023 were higher than fiscal 2022 as business remained solid.
Gross profit margin in the fourth quarter and for the fiscal year 2023 also increased significantly due to solid execution in manufacturing, and continued effective cost management efforts. We remain optimistic for the remainder of fiscal 2024 as we continue on our mission of delivering the highest quality products and services to our customers.”
Gencor Industries is a diversified heavy machinery manufacturer for the production of highway construction materials and equipment and environmental control machinery and equipment used in a variety of applications.
GENCOR INDUSTRIES, INC.
Consolidated Statements of Operations
For the Years Ended September 30, 2023 and 2022
(Unaudited)
| 2023 | 2022 | |||||||
| Net revenue |
$ | 105,075,000 | $ | 103,479,000 | ||||
| Cost of goods sold |
76,038,000 | 82,935,000 | ||||||
|
|
|
|
|
|||||
| Gross profit |
29,037,000 | 20,544,000 | ||||||
| Operating expenses: |
||||||||
| Product engineering and development |
3,458,000 | 4,325,000 | ||||||
| Selling, general and administrative |
12,154,000 | 12,052,000 | ||||||
|
|
|
|
|
|||||
| Total operating expenses |
15,612,000 | 16,377,000 | ||||||
|
|
|
|
|
|||||
| Operating income |
13,425,000 | 4,167,000 | ||||||
| Other income (expense), net: |
||||||||
| Interest and dividend income, net of fees |
2,108,000 | 1,305,000 | ||||||
| Realized and unrealized gains (losses) on marketable securities, net |
3,243,000 | (7,009,000 | ) | |||||
| Other |
— | (156,000 | ) | |||||
|
|
|
|
|
|||||
| 5,351,000 | (5,860,000 | ) | ||||||
|
|
|
|
|
|||||
| Income (loss) before income tax expense (benefit) |
18,776,000 | (1,693,000 | ) | |||||
| Income tax expense (benefit) |
4,110,000 | (1,321,000 | ) | |||||
|
|
|
|
|
|||||
| Net income (loss) |
$ | 14,666,000 | $ | (372,000 | ) | |||
|
|
|
|
|
|||||
| Basic earnings (loss) per common share |
$ | 1.00 | $ | (0.03 | ) | |||
|
|
|
|
|
|||||
| Diluted earnings (loss) per common share |
$ | 1.00 | $ | (0.03 | ) | |||
|
|
|
|
|
|||||
GENCOR INDUSTRIES, INC.
Consolidated Balance Sheets
As of September 30, 2023 and 2022
(Unaudited)
| 2023 | 2022 | |||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 17,031,000 | $ | 9,581,000 | ||||
| Marketable securities at fair value (cost of $85,514,000 at September 30, 2023 and $94,879,000 at September 30, 2022) |
84,252,000 | 89,300,000 | ||||||
| Accounts receivable, less allowance for doubtful accounts of $545,000 at September 30, 2023 and $370,000 at September 30, 2022 |
2,467,000 | 2,996,000 | ||||||
| Costs and estimated earnings in excess of billings |
1,508,000 | 2,118,000 | ||||||
| Inventories, net |
71,527,000 | 55,815,000 | ||||||
| Prepaid expenses |
2,169,000 | 2,669,000 | ||||||
|
|
|
|
|
|||||
| Total current assets |
178,954,000 | 162,479,000 | ||||||
|
|
|
|
|
|||||
| Property and equipment, net |
13,246,000 | 13,491,000 | ||||||
| Deferred and other income taxes |
3,167,000 | 2,893,000 | ||||||
| Other long-term assets |
381,000 | 450,000 | ||||||
|
|
|
|
|
|||||
| Total Assets |
$ | 195,748,000 | $ | 179,313,000 | ||||
|
|
|
|
|
|||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ | 3,269,000 | $ | 4,251,000 | ||||
| Customer deposits |
6,815,000 | 5,864,000 | ||||||
| Accrued expenses |
3,753,000 | 1,885,000 | ||||||
| Current operating lease liabilities |
328,000 | 390,000 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
14,165,000 | 12,390,000 | ||||||
| Non-current operating lease liabilities |
— | 6,000 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
14,165,000 | 12,396,000 | ||||||
|
|
|
|
|
|||||
| Commitments and contingencies |
||||||||
| Shareholders’ equity: |
||||||||
| Preferred stock, par value $.10 per share; 300,000 shares authorized; none issued |
— | — | ||||||
| Common stock, par value $.10 per share; 15,000,000 shares authorized; 12,338,845 shares issued and outstanding at September 30, 2023 and 2022 |
1,234,000 | 1,234,000 | ||||||
| Class B Stock, par value $.10 per share; 6,000,000 shares authorized; 2,318,857 shares issued and outstanding at September 30, 2023 and 2022 |
232,000 | 232,000 | ||||||
| Capital in excess of par value |
12,590,000 | 12,590,000 | ||||||
| Retained earnings |
167,527,000 | 152,861,000 | ||||||
|
|
|
|
|
|||||
| Total shareholders’ equity |
181,583,000 | 166,917,000 | ||||||
|
|
|
|
|
|||||
| Total Liabilities and Shareholders’ Equity |
$ | 195,748,000 | $ | 179,313,000 | ||||
|
|
|
|
|
|||||
Caution Concerning Forward Looking Statements—This press release and our other communications and statements may contain certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), 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 Company’s actual future results may differ materially from those set forth in the Company’s forward-looking statements depending on a variety of important factors, including the financial condition of the Company’s customers, changes in the economic and competitive environments and demand for the Company’s products. In addition, on February 24, 2022, Russian forces invaded Ukraine. The impact to Ukraine as well as actions taken by other countries, including new and stricter sanctions imposed by the U.S. and other countries and companies against officials, individuals, regions, and industries in Russia, and actions taken by Russia and certain other countries in response to such sanctions, could result in a disruption in our supply chain and higher costs of our products. The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “goal,” and similar expressions are intended to identify forward-looking statements.
For information concerning these factors and related matters, see the following sections of the Company’s Annual Report on Form 10-K for the year ended September 30, 2023: (a) Part I, Item 1A, “Risk Factors” and (b) Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”. 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 press release. The Company does not undertake to update any forward-looking statements, except as required by law.
Unless the context otherwise indicates, all references in this press release to the “Company,” “Gencor,” “we,” “us,” or “our,” or similar words are to Gencor Industries, Inc. and its subsidiaries.
| Contact: |
Eric Mellen, Chief Financial Officer | |
|
407-290-6000 |
Document and Entity Information |
Dec. 13, 2023 |
|---|---|
| Cover [Abstract] | |
| Entity Registrant Name | GENCOR INDUSTRIES INC |
| Amendment Flag | false |
| Entity Central Index Key | 0000064472 |
| Document Type | 8-K |
| Document Period End Date | Dec. 13, 2023 |
| Entity Address, Address Line One | 5201 North Orange Blossom Trail |
| Entity Address, City or Town | Orlando |
| Entity Address, State or Province | FL |
| Entity Address, Postal Zip Code | 32810 |
| City Area Code | (407) |
| Local Phone Number | 290-6000 |
| Entity Incorporation State Country Code | DE |
| Entity File Number | 001-11703 |
| Entity Tax Identification Number | 59-0933147 |
| Written Communications | false |
| Soliciting Material | false |
| Pre Commencement Tender Offer | false |
| Pre Commencement Issuer Tender Offer | false |
| Security 12b Title | Common Stock ($.10 Par Value) |
| Trading Symbol | GENC |
| Security Exchange Name | NYSEAMER |
| Entity Emerging Growth Company | false |
&PO7W)E;',O=V]R:V)O;VLN>&UL+G)E;'-02P$"% ,4 " !: M@8U799!YDAD! #/ P $P @ &E$@ 6T-O;G1E;G1?5'EP =97-=+GAM;%!+!08 "0 ) #X" #O$P ! end