Gentex Reports Record Revenues and Net Income for First Quarter
ZEELAND, Mich., April 20 -- 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 first quarter ended March 31, 2004.
The Company achieved its all-time quarterly sales record in the first quarter of 2004 with revenues of $129.3 million, a 12 percent increase over revenues of $115.3 million reported in the first quarter last year. Record net income of $29.8 million, or 38 cents per share, for the first quarter of 2004 increased by 15 percent compared with net income of $25.9 million, or 34 cents per share, in the comparable 2003 quarter.
"We are very pleased that we posted good growth for the first quarter of 2004," said Gentex Executive Vice President Garth Deur. "The continued top- line growth was primarily due to higher mirror unit shipments and the continuing recognition in the marketplace of the auto-dimming mirror as an important automotive safety feature. That top-line sales growth translated into bottom-line earnings growth for that reason as well as continued manufacturing efficiencies and improved capacity utilization."
The newest electronic feature from Gentex is SmartBeam(TM), the intelligent high-beam headlamp control system that the Company has developed over a period of many years. General Motors and DaimlerChrysler recently showed the first vehicles to debut with the SmartBeam system at the New York Auto Show. Both the Cadillac STS and the Jeep Grand Cherokee will offer SmartBeam as an option for the 2005 model year.
"We continue to invest significant effort and dollars into the development of SmartBeam, and continue to believe that it will be a popular feature with consumers. In December 2003, J.D. Power and Associates released the results of its 2003 U.S. Automotive Emerging Technologies Study and SmartBeam ranked #1 with consumers based on the product's capabilities and estimated pricepoint," said Deur.
The Company expects its auto-dimming mirror unit shipments to increase by approximately 15 percent for all of calendar 2004, according to Deur. That rate of increase takes into account a two percent year-over-year increase in light vehicle production in North America and a two percent decline in production in Western Europe. The current full-year light vehicle production numbers forecasted by J.D. Power are 16.1 million units in North America, 16.1 million units in Western Europe and 22.9 million units in the Asia/Pacific region.
Total auto-dimming mirror unit shipments for the first quarter of 2004 increased by 18 percent to 2,982,000, compared with 2,535,000 units for the same quarter in 2003. Total automotive revenues in the first quarter of 2004 increased by 12 percent to $123.7 million, compared with the same quarter last year.
Auto-dimming mirror unit shipments to offshore and North American customers increased by 25 percent and 11 percent, respectively, in the first quarter of 2004 compared with the first quarter of 2003. During the first quarter of 2004, light vehicle production in North America was down one percent compared with the same quarter last year. Light vehicle production declined by two percent in Western Europe and increased by 11 percent in the Asia/Pacific region, compared with the same quarter last year.
Revenues in the Company's Fire Protection Products Group increased by nine percent in the first quarter of 2004 to $5.6 million, compared with the first quarter last year.
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, Honda, Hyundai, Infiniti, Isuzu, Kia Motors, Land Rover, Lexus, Mazda, Mitsubishi, Nissan, Opel, PSA, Renault Samsung, MG Rover, Rolls Royce, SsangYong Motors, Toyota, Volkswagen and Volvo Car Corporation. 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 and France; 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.
AUTO-DIMMING MIRROR UNIT SHIPMENTS
(Thousands)
1st Quarter ended March 31, %
2004 2003 Change
Domestic Interior 1,070 955 12%
Domestic Exterior 462 424 9%
Total Domestic Units 1,533 1,379 11%
Offshore Interior 1,066 802 33%
Offshore Exterior 383 354 8%
Total Offshore Units 1,450 1,156 25%
Total Interior Mirrors 2,137 1,757 22%
Total Exterior Mirrors 846 778 9%
Total Mirror Units 2,982 2,535 18%
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
March 31,
2004 2003
Net Sales $129,327,548 $115,308,564
Costs and Expenses
Cost of Goods Sold 74,443,276 67,192,569
Engineering, Research & Development 7,443,288 6,207,736
Selling, General & Administrative 6,745,121 5,526,676
Other Expense (Income) (3,474,612) (2,000,955)
Total Costs and Expenses 85,157,073 76,926,026
Income Before Provision
for Income Taxes 44,170,475 38,382,538
Provision for Income Taxes 14,355,000 12,474,000
Net Income $29,815,475 $25,908,538
Earnings Per Share
Basic $0.39 $0.34
Diluted $0.38 $0.34
Cash Dividends Declared per Share $0.15 $0.00
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
March 31, Dec 31,
2004 2003
ASSETS
Cash and Short-Term Investments $452,739,976 $393,606,656
Other Current Assets 102,343,037 91,742,675
Total Current Assets 555,083,013 485,349,331
Plant and Equipment - Net 127,759,195 126,806,882
Long-Term Investments and Other Assets 123,589,949 150,373,553
Total Assets $806,432,157 $762,529,766
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities $67,733,999 $50,480,480
Long-Term Debt 0 0
Deferred Income Taxes 19,161,672 18,405,955
Shareholders' Investment 719,536,486 693,643,331
Total Liabilities &
Shareholders' Investment $806,432,157 $762,529,766