Gentex Reports Record Third Quarter Results
ZEELAND, Mich., Oct. 15, 2003 -- Gentex Corporation, the Zeeland, Michigan-based manufacturer of automatic-dimming rearview mirrors and commercial fire protection products, today reported financial results for the third quarter and nine months ended September 30, 2003.
The Company reported an 11 percent increase in revenues to a third-quarter record of $112.9 million for the quarter ended September 30, 2003, and a 20 percent increase in net income to a third-quarter record of $25.7 million, or 33 cents per diluted share. In the comparable 2002 quarter, the Company reported revenues of $101.5 million and net income of $21.4 million, or 28 cents per diluted share.
For the first nine months of 2003, the Company reported a 20 percent increase in revenues to a record $345.1 million, and a 26 percent increase in net income to a record $77.7 million, or $1.01 per diluted share. For the comparable 2002 period, Gentex reported revenues of $287.9 million and net income of $61.7 million, or 81 cents per diluted share.
"We had another very good quarter and are on track to deliver excellent performance for the rest of the year," said Gentex Executive Vice President Garth Deur. "During the third quarter, we demonstrated our ability to grow our auto-dimming mirror business, despite declines in light vehicle production in North America and Western Europe of about five percent each."
Deur said that he believes the Company will show mirror unit shipment growth in the fourth quarter of approximately 15 to 20 percent compared with the fourth quarter of 2002.
"Achieving that rate of growth in the fourth quarter puts us on the path to achieve a 15 percent growth rate in unit shipments for all of calendar 2003," said Deur.
The Company utilizes the light vehicle production forecasting services of J.D. Power and Associates, and its current forecasts for light vehicle production for calendar 2003 are approximately 16.0 million units for North America, 16.0 million for Western Europe and 20.3 million units for the Asia/Pacific region. For the fourth quarter of 2003, J.D. Power is forecasting light vehicle production of 4.0 million units in North America; 3.9 million units in Western Europe; and 5.1 million units in the Asia/Pacific region.
Automotive revenues increased by 11 percent to $107.0 million in the third quarter and by 21 percent to $328.1 million for the first nine months of 2003 compared with the same periods last year. Fire Protection revenues increased by six percent to $5.9 million in the third quarter and by three percent to $17.0 million for the first nine months of 2003 compared with the same prior year periods.
Night Vision Safety(TM) (NVS(R)) Mirror unit shipments to customers in North America increased by seven percent in the third quarter and by 10 percent for the first nine months of 2003 compared with the same 2002 periods. North American light vehicle production decreased by about five percent in the third quarter and four percent for the first nine months of calendar 2003 compared with the same periods last year.
Unit shipments to offshore customers increased by 19 percent in the third quarter and 23 percent for the first nine months of 2003, compared with the same periods last year. The higher growth in offshore unit shipments is primarily attributable to increased vehicle penetration in the European and Asia-Pacific regions.
Total Night Vision Safety(TM) (NVS(R)) Mirror shipments in the third quarter were approximately 2.5 million, a 12 percent increase over the approximately 2.2 million units reported in the same period last year. For the first nine months of 2003, total unit shipments reached a record 7.5 million, a 15 percent increase over the 6.5 million units shipped during the first nine months of 2002.
Certain matters discussed in this news release, including 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 1:30 p.m. Eastern Daylight Savings Time today. To access that call, go to www.gentex.com and select "Investor Information" and "Audio Archives." Other 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 interior and exterior automatic-dimming automotive rearview mirrors that utilize proprietary electrochromic technology to dim in proportion to the amount of headlight glare from trailing vehicle headlamps. More than 95 percent of the Company's revenue is derived from the sale of those products to the world automotive industry.
Gentex was the first company in the world to successfully develop and produce a commercial automatic-dimming rearview mirror. After more than 15 years of supplying these products in the highly competitive global automotive industry, the Company remains the leading supplier of these mirrors. Gentex OEM customers include Acura, Audi, Bentley, BMW, DaimlerChrysler, Fiat, Ford, General Motors, Honda, Hyundai, Infiniti, Isuzu, Kia Motors, Lexus, Mazda, Mitsubishi, Nissan, Opel, Renault Samsung, Rover, Rolls Royce, SsangYong Motors, Toyota, Volkswagen and Volvo Car Corporation.
Founded in 1974, Gentex has its manufacturing facilities in Zeeland, Michigan, and automotive sales and engineering offices in Detroit, Michigan; Germany, Japan, the United Kingdom, France and Korea. The Company is recognized for its quality products; for its proprietary manufacturing skills and equipment and 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.
GENTEX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three Months Ended
September 30,
2003 2002
Net Sales $112,878,954 $101,516,275
Costs and Expenses
Cost of Goods Sold 65,793,563 60,820,878
Engineering, Research &
Development 6,944,138 5,974,215
Selling, General & Administrative 5,693,743 5,142,636
Other Expense (Income) (3,597,615) (2,164,715)
Total Costs and Expenses 74,833,829 69,773,014
Income Before Provision
for Income Taxes 38,045,125 31,743,261
Provision for Income Taxes 12,364,000 10,316,000
Net Income $25,681,125 $21,427,261
Earnings Per Share
Basic $0.34 $0.28
Diluted $0.33 $0.28
Weighted Average Shares:
Basic 76,348,527 75,688,349
Diluted 77,568,861 76,585,241
(unaudited)
Nine Months Ended
September 30,
2003 2002
Net Sales $345,104,850 $287,911,087
Costs and Expenses
Cost of Goods Sold 201,621,876 172,959,610
Engineering, Research &
Development 19,462,760 17,183,818
Selling, General & Administrative 17,310,739 15,426,934
Other Expense (Income) (8,370,527) (9,056,029)
Total Costs and Expenses 230,024,848 196,514,333
Income Before Provision
for Income Taxes 115,080,002 91,396,754
Provision for Income Taxes 37,400,000 29,705,500
Net Income $77,680,002 $61,691,254
Earnings Per Share
Basic $1.02 $0.82
Diluted $1.01 $0.81
Weighted Average Shares:
Basic 76,106,950 75,379,342
Diluted 77,067,148 76,521,515
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
Sept 30, Dec 31,
2003 2002
ASSETS
Cash and Short-Term Investments $385,726,313 $215,650,801
Other Current Assets 93,416,465 61,147,608
Total Current Assets 479,142,778 276,798,409
Plant and Equipment - Net 124,947,036 124,982,665
Long-Term Investments and Other
Assets 119,094,265 207,391,593
Total Assets $723,184,079 $609,172,667
LIABILITIES AND SHAREHOLDERS'
INVESTMENT
Current Liabilities $47,407,935 $29,060,035
Long-Term Debt 0 0
Deferred Income Taxes 13,972,998 6,472,270
Shareholders' Investment 661,803,146 573,640,362
Total Liabilities & Shareholders'
Investment $723,184,079 $609,172,667
NVS MIRROR UNIT SHIPMENTS
(Thousands)
Third Quarter Nine Months Ended
Ended September 30, September 30,
2003 2002 % Change 2003 2002 % Change
Domestic Interior 913 843 8% 2,836 2,627 8%
Domestic Exterior 434 412 5% 1,293 1,143 13%
Total Domestic Units 1,348 1,256 7% 4,130 3,769 10%
Foreign Interior 774 710 9% 2,378 2,047 16%
Foreign Exterior 353 241 47% 1,036 723 43%
Total Foreign Units 1,127 951 19% 3,414 2,770 23%
Total Interior Mirrors 1,688 1,553 9% 5,215 4,674 12%
Total Exterior Mirrors 787 653 21% 2,329 1,866 25%
Total Mirror Units 2,475 2,206 12% 7,544 6,540 15%
Note: Certain prior year amounts have been reclassified to conform with the current year presentation. Amounts may not total due to rounding.
Company News On-Call: http://www.prnewswire.com/comp/354175.html