Gentex Reports Record Fourth Quarter and Year: Fourth Quarter Net Income Increased 43 Percent
Gentex Reports Record Fourth Quarter and Year: Fourth Quarter Net Income Increased 43 Percent
ZEELAND, Mich., Jan. 23 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, 2002.
The Company achieved record fourth quarter revenues of $107.3 million, a
35 percent increase over the fourth quarter of 2001 when the Company reported
revenues of $79.7 million. Net income in the 2002 fourth quarter increased 43
percent to $24.1 million, or 31 cents per share, compared with net income of
$16.8 million, or 22 cents per share in 2001.
For the year ended December 31, 2002, Gentex reported a 32 percent
increase in net income to $85.8 million, or $1.12 per share, on a 27 percent
increase in revenues to $395.3 million. The Company reported net income of
$65.2 million, or 86 cents per share, on revenues of $310.3 million in 2001.
"We are pleased with the positive revenue and earnings results that we
posted for both the fourth quarter and calendar year 2002," said Gentex
Executive Vice President Garth Deur. "Our automotive unit shipments in the
fourth quarter increased by about 21 percent over the same quarter last year
to 2.3 million units, primarily due to strong shipments of interior and
exterior mirrors for light trucks in North America as well as interior mirror
shipments to offshore customers and the transplants in North America for a
number of mid-sized vehicle models."
Total mirror units shipments for calendar year 2002 increased by 23
percent to a record 8.8 million units, compared with the same prior year
period. Automotive revenues increased by 37 percent in the fourth quarter and
by 29 percent for calendar year 2002.
Deur said the Company's growth in revenues continues to outpace its mirror
unit shipment growth due to higher unit shipments of mirrors with significant
electronic content, such as compass and temperature displays, LED turn
signals, HomeLink(R), LED map lamps, etc.
He added that the Company's offshore mirror unit shipments are an
increasing part of total shipments, and that portion has been growing at a
faster rate than the North American segment. Offshore unit shipments
increased by 42 percent in the fourth quarter and by 28 percent for calendar
2002, compared with the same prior year periods.
Deur said that he expects continued strong growth in unit shipments in
calendar 2003.
"Recent J.D. Power expectations for light vehicle industry production in
North America and Western Europe currently project a slight overall decline
for calendar year 2003. Despite the forecasted decline in light vehicle
production, we currently expect good growth in automotive unit shipments in
the first quarter of 2003 as compared with the same period in 2002, and
anticipate approximately 15-20 percent unit growth for all of calendar 2003
compared with calendar 2002, primarily due to increased penetration into new
vehicle models," concluded Deur.(**)
Revenues in the Fire Protection Products Group increased only about two
percent in the fourth quarter of 2002 compared with the same 2001 quarter,
primarily due to a continued decline in construction in the hotel/motel
industry as a result of the terrorist attacks on September 11, 2001. For the
year ended December 31, 2002, fire protection revenues increased about one
percent to $21.0 million compared with 2001.
(**)Certain matters discussed in this news release, including unit sale
and growth rate projections and estimates, are forward-looking statements
which involve certain risks and uncertainties, and are subject to change based
on various market, industry and other important factors. The Company cautions
investors that numerous factors (some of which are outlined in the Company's
Form 10-K filed with the Securities and Exchange Commission and other interim
reports) and future events may affect the Company's actual results, and may
cause those results to differ materially from those expressed in this news
release. Furthermore, Gentex undertakes no obligation to update, amend, or
clarify forward-looking statements whether as a result of new information,
future events, or otherwise.
A conference call related to this news release will be simulcast live on
the Internet beginning at 9:30 a.m. Eastern today. To access that call, go to
http://www.gentex.com and select "Investor Information" and "Audio Archives." Other
quarterly earnings conference calls hosted by the Company will also be
available at that site in the future.
Gentex Corporation is an international company that
provides high-quality products to the worldwide automotive industry and North
American fire protection market. The Company develops, manufactures and
markets proprietary electro-optic products, including interior and exterior
electrochromic, automatic-dimming Night Vision Safety(TM) (NVS(R)) automotive
rearview mirrors that dim in proportion to the amount of headlight glare from
trailing vehicle headlamps, and an extensive line of fire protection products
for commercial applications.
Gentex was the first company in the world to successfully develop and
produce a commercial electrochromic mirror for the motor vehicle industry.
The Company is the leading supplier of these mirrors to the worldwide
automotive industry. Gentex OEM customers include Audi, Bentley, BMW, Daewoo,
DaimlerChrysler, Fiat, Ford, General Motors, Hyundai, Kia Motors, Mitsubishi,
Nissan, Opel, Porsche, Rover, Rolls Royce, SsangYong Motors, Toyota and
Volkswagen. Gentex aftermarket/distributor customers include Gulf States
Toyota Distributors, Mito Corporation, Southeast Toyota Distributors, Subaru
Distributors NE and Toyota Motor Sales USA.
Founded in 1974, Gentex operates out of four facilities in Zeeland,
Michigan; an automotive sales office in Livonia, Michigan; automotive sales
and engineering subsidiaries in Germany, Japan, the United Kingdom, France and
Korea; and four regional U.S. sales offices for the Fire Protection Products
Group. The Company is recognized for its quality products, its application of
world class manufacturing principles, for its commitment to developing and
maintaining a highly skilled workforce, and for encouraging employee ownership
of the Company's stock.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Year Ended
December 31, December 31,
2002 2001 2002 2001
Net Sales $107,347,349 $79,717,439 $395,258,436 $310,304,996
Costs and Expenses
Cost of Goods
Sold 62,651,572 48,233,826 235,611,182 188,301,693
Research &
Development 5,789,209 5,377,179 22,973,027 20,684,996
Selling, General
& Administrative 6,047,132 4,860,388 21,474,066 19,259,065
Other Expense
(Income) (2,816,601) (3,700,410) (11,872,630) (14,558,258)
Total Costs and
Expenses 71,671,312 54,770,983 268,185,645 213,687,496
Income Before
Income Taxes 35,676,037 24,946,456 127,072,791 96,617,500
Provision for
Income Taxes 11,596,000 8,107,000 41,301,500 31,401,000
Net Income $24,080,037 $16,839,456 $85,771,291 $65,216,500
Earnings Per Share
Basic $0.32 $0.22 $1.14 $0.87
Diluted $0.31 $0.22 $1.12 $0.86
Weighted Average
Shares:
Basic 75,913,348 75,095,537 75,515,271 74,778,518
Diluted 76,845,120 75,940,109 76,602,402 75,871,786
CONDENSED CONSOLIDATED BALANCE SHEETS
Dec 31, Dec 31,
2002 2001
ASSETS
Cash and Short-Term Investments $215,650,801 $205,643,737
Other Current Assets 61,147,608 54,214,757
Total Current Assets 276,798,409 259,858,494
Plant and Equipment - Net 124,982,665 110,862,310
Long-Term Investments and Other Assets 207,391,593 136,101,994
Total Assets $609,172,667 $506,822,798
LIABILITIES AND SHAREHOLDERS'
INVESTMENT
Current Liabilities $29,060,035 $20,985,404
Long-Term Debt 0 0
Deferred Income Taxes 6,472,270 6,836,865
Shareholders' Investment 573,640,362 479,000,529
Total Liabilities & Shareholders' Investment $609,172,667 $506,822,798