Gentex Reports Record Revenues and Net Income for the Second Quarter
ZEELAND, Mich., July 16 -- 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 second quarter and six months ended June 30, 2003.
For the second quarter of 2003, the Company reported a 22 percent increase in net income to $26.1 million, or 34 cents per share, on record revenues of $116.9 million. In the comparable 2002 quarter, the Company reported net income of $21.3 million, or 28 cents per share, on revenues of $97.3 million.
For the first six months of 2003, net income increased 29 percent to $52.0 million, or 68 cents per share, on record revenues of $232.2 million. For the comparable 2002 period, Gentex reported net income of $40.3 million, or 53 cents per share, on revenues of $186.4 million.
"We had an excellent second quarter, with growth in both unit volume and feature content," said Garth Deur, Gentex executive vice president. "The percentage increase in our exterior mirror product line continues to outpace the growth rates in interior mirrors, as our customers recognize the significant role of exterior mirrors in eliminating glare during nighttime driving."
Deur said that, despite the uncertainties in the economy, he is cautiously optimistic about the last six months of calendar 2003 and that the Company currently is on track for growth in mirror unit shipments this year of approximately 15 percent.
Total Night Vision Safety(TM) (NVS(R)) Mirror shipments in the second quarter of 2003 were 2.5 million units, an approximate 11 percent increase over the approximately 2.3 million units reported in the same 2002 quarter. Total automotive revenues in the second quarter of 2003 increased by 21 percent compared with the same prior year period.
For the first six months of 2003, total unit shipments reached a record 5.1 million, an approximate 17 percent increase over the first six months of 2002. Total automotive revenues in the first six months of 2003 increased by approximately 26 percent compared to the same prior year period.
Revenues in the Company's Fire Protection Products Group increased by four percent in the second quarter to $6.0 million, and increased two percent for the first six months of 2003 to $11.2 million, compared with the same periods last year.
Certain matters discussed in this news release, including unit 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.
Gentex Corporation (The Nasdaq Stock Market: GNTX) 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 Acura, Audi, Bentley, BMW, DaimlerChrysler, Fiat, Ford, General Motors, Hyundai, Infiniti, Isuzu, Kia Motors, Lexus, Mitsubishi, Nissan, Opel, Renault Samsung, Rover, Rolls Royce, SsangYong Motors, Toyota and Volkswagen. Gentex accessory 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.
NVS MIRROR UNIT SHIPMENTS
(Thousands)
Second Quarter Six Months Ended
Ended June 30, June 30,
2003 2002 % Change 2003 2002 % Change
Domestic Interior 968 925 5% 1,923 1,783 8%
Domestic Exterior 434 382 14% 859 731 18%
Total Domestic Units 1,403 1,307 7% 2,782 2,514 11%
Foreign Interior 802 713 12% 1,604 1,338 20%
Foreign Exterior 329 257 28% 683 482 42%
Total Foreign Units 1,131 970 17% 2,287 1,820 26%
Total Interior Mirrors 1,770 1,638 8% 3,527 3,121 13%
Total Exterior Mirrors 764 639 20% 1,542 1,213 27%
Total Mirror Units 2,534 2,278 11% 5,069 4,334 17%
Note: Certain prior year amounts have been reclassified to conform with the current year presentation. Amounts may not total due to rounding.
GENTEX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three Months Ended
June 30,
2003 2002
Net Sales $116,917,332 $97,346,344
Costs and Expenses
Cost of Goods Sold 68,635,744 58,280,926
Engineering, Research & Development 6,310,886 5,623,863
Selling, General & Administrative 6,090,320 5,243,953
Other Expense (Income) (2,771,957) (3,376,165)
Total Costs and Expenses 78,264,993 65,772,577
Income Before Provision
for Income Taxes 38,652,339 31,573,767
Provision for Income Taxes 12,562,000 10,263,000
Net Income $26,090,339 $21,310,767
Earnings Per Share
Basic $0.34 $0.28
Diluted $0.34 $0.28
Weighted Average Shares:
Basic 75,992,364 75,685,015
Diluted 76,878,488 76,619,056
(unaudited)
Six Months Ended
June 30,
2003 2002
Net Sales $232,225,896 $186,394,812
Costs and Expenses
Cost of Goods Sold 135,828,313 112,138,732
Engineering, Research & Development 12,518,622 11,209,603
Selling, General & Administrative 11,616,996 10,284,298
Other Expense (Income) (4,772,912) (6,891,314)
Total Costs and Expenses 155,191,019 126,741,319
Income Before Provision
for Income Taxes 77,034,877 59,653,493
Provision for Income Taxes 25,036,000 19,389,500
Net Income $51,998,877 $40,263,993
Earnings Per Share
Basic $0.68 $0.53
Diluted $0.68 $0.53
Weighted Average Shares:
Basic 75,974,343 75,494,641
Diluted 76,813,994 76,482,761
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
June 30, Dec 31,
2003 2002
ASSETS
Cash and Short-Term Investments $275,012,396 $215,650,801
Other Current Assets 72,162,597 61,147,608
Total Current Assets 347,174,993 276,798,409
Plant and Equipment - Net 125,362,669 124,982,665
Long-Term Investments and Other
Assets 209,596,137 207,391,593
Total Assets $682,133,799 $609,172,667
LIABILITIES AND SHAREHOLDERS'
INVESTMENT
Current Liabilities $33,985,530 $29,060,035
Long-Term Debt 0 0
Deferred Income Taxes 11,946,091 6,472,270
Shareholders' Investment 636,202,178 573,640,362
Total Liabilities & Shareholders'
Investment $682,133,799 $609,172,667
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