Gentex Reports Record Fourth Quarter and Year
ZEELAND, Mich., Jan. 24 Gentex Corporation,
the Zeeland, Michigan-based manufacturer of automatic-dimming rearview mirrors
and commercial fire protection products, today reported record revenues and
net income for the fourth quarter and year ended December 31, 2000.
The Company achieved record fourth quarter revenues of $74.9 million, a
14 percent increase over the fourth quarter of 1999 when the Company reported
revenues of $65.5 million. Net income in the 2000 fourth quarter increased
four percent to $17.8 million, or 24 cents per share, compared with net income
of $17.2 million, or 23 cents per share in 1999.
For the year ended December 31, 2000, Gentex reported record net income of
$70.5 million, or 93 cents per share, on a 13 percent increase in revenues to
$297.4 million. The Company reported net income of $64.9 million, or 86 cents
per share, on revenues of $262.1 million in 1999.
"We are pleased that we were able to post a positive year-over-year
comparison in a tough automotive environment," said Gentex Executive Vice
President Kenneth La Grand. "Gentex was one of very few auto suppliers able
to accomplish increased sales and earnings from internal growth in the fourth
quarter of 2000."
La Grand attributed the positive year-over-year comparison to strong
shipments of exterior mirror units for pick ups and sport utility vehicles in
North America, and overall strong unit shipments in Japan and Europe.
"Gentex is a unique company. There currently is a relatively low
application rate for our mirrors worldwide and they are optional (versus
standard) equipment on many vehicle models. When automakers cut production on
light vehicles, we are impacted to the extent that they cut production on
vehicle models that offer our mirror. To date, our mirrors have been offered
on the more popular vehicles and we haven't been as severely impacted by
vehicle production cuts.
"In addition, our international mirror unit shipments are an increasing
part of our total shipments, and the international portion has been growing at
a faster rate than the North American segment. We expect the rate of growth
in international shipments over the near-term to continue to outpace the
growth rate in North America," concluded La Grand.
North American light vehicle production declined by about seven percent in
the fourth quarter of 2000 compared to the same period in 1999, and was up
slightly when comparing calendar 2000 to calendar 1999.
The Company's light-emitting diode (LED) technology, announced in December
1999, continues to progress.
"The facilities required for the new prototype microelectronics line are
more involved than what we initially believed and are taking longer to put in
place. Pilot production LED samples from this line should be available to key
customers and partners in the second half of 2001," said La Grand.
The Company is conducting engineering development with select automotive
customers for the Orca(TM) LED power package. Simultaneously, strategic
dialogues with potential alliance partners in the lighting industry, LED
component industry and LED chip industry continue.
Total Night Vision Safety(TM) (NVS(R)) Mirror shipments to automotive
customers in 2000 increased to a record 1.7 million and 6.8 million units for
the fourth quarter and year, respectively, compared with 1.5 million and
6.0 million units for the same 1999 periods.
"Based on recent industry expectations for North American light vehicle
industry production of approximately 16.4 million units in calendar year 2001,
we currently expect only slight growth in automotive unit shipments in the
first quarter of 2001 as compared with the same period in 2000, but still
anticipate approximately 15 percent growth for all of calendar 2001 compared
with calendar 2000," said La Grand. (**)
Unit shipments of NVS Mirrors to automakers outside North America
increased by 31 and 39 percent for the 2000 fourth quarter and year,
respectively. Shipments to offshore customers represented 36 percent of total
unit shipments in 2000.
Revenues in the Fire Protection Products Group decreased one percent in
the fourth quarter of 2000 compared with the same 1999 quarter. For the year
ended December 31, 2000, fire protection revenues were up two percent to
$21.6 million compared with $21.1 million in 1999.
GENTEX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
December 31,
2000 1999
Net Sales $74,854,105 $65,501,788
Costs and Expenses
Cost of Goods Sold 43,077,959 36,290,871
Research & Development 4,509,342 3,476,483
Selling, General & Administrative 4,696,934 3,402,923
Other Expense (Income) (3,772,013) (3,013,241)
Total Costs and Expenses 48,512,222 40,157,036
Income Before Income Taxes 26,341,883 25,344,752
Provision for Income Taxes 8,562,000 8,171,000
Net Income $17,779,883 $17,173,752
Earnings Per Share
Basic $0.24 $0.23
Diluted $0.24 $0.23
Weighted Average Shares:
Basic 74,202,960 73,312,353
Diluted 75,165,697 74,828,696
Year Ended
December 31,
2000 1999
Net Sales $297,420,802 $262,155,498
Costs and Expenses
Cost of Goods Sold 172,467,846 148,820,129
Research & Development 16,900,659 13,755,318
Selling, General & Administrative 17,641,306 14,057,560
Other Expense (Income) (14,112,075) (10,693,265)
Total Costs and Expenses 192,897,736 165,939,742
Income Before Income Taxes 104,523,066 96,215,756
Provision for Income Taxes 33,979,000 31,352,000
Net Income $70,544,066 $64,863,756
Earnings Per Share
Basic $0.95 $0.89
Diluted $0.93 $0.86
Weighted Average Shares:
Basic 73,941,256 72,999,601
Diluted 75,518,133 74,996,314
CONDENSED CONSOLIDATED BALANCE SHEETS
Dec. 31, Dec. 31,
2000 1999
ASSETS
Cash and Short-Term Investments $138,442,550 $94,733,629
Other Current Assets 52,113,300 43,481,955
Total Current Assets 190,555,850 138,215,584
Plant and Equipment - Net 81,919,668 71,338,053
Long-Term Investments and Other
Assets 155,653,175 128,119,133
Total Assets $428,128,693 $337,672,770
LIABILITIES AND SHAREHOLDERS'
INVESTMENT
Current Liabilities $19,691,252 $16,470,211
Long-Term Debt 0 0
Deferred Income Taxes 6,333,880 4,151,143
Shareholders' Investment 402,103,561 317,051,416
Total Liabilities & Shareholders'
Investment $428,128,693 $337,672,770
