Gentex Reports Q1 Revenues and Income
15 April 1998
Gentex Reports Record First Quarter Revenues and Net Income; Net Income Increases 69% on Higher Revenues
ZEELAND, Mich., April 15 -- 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, 1998.
The Company achieved an all-time sales record in the first quarter of 1998
with revenues of $57.0 million, a 36 percent increase over revenues of $41.9
million reported in the first quarter last year. Net income of $12.5 million,
or 34 cents per share, for the first quarter of 1998 increased by 69% compared
with net income of $7.4 million, or 21 cents per share, in the comparable 1997
quarter. All per share amounts reported are diluted.
"Our automotive unit shipments were very strong in the first quarter,
resulting in these higher-than-expected net earnings," said Gentex Executive
Vice President Kenneth La Grand. "The strong momentum of the 1998 model year
that began in August 1997 has carried over into this new fiscal year."
La Grand said that mirror unit shipments to offshore auto customers
increased by 43 percent compared with the first quarter of 1997, primarily
attributable to increased aspheric exterior mirror sub-assembly shipments for
Mercedes-Benz. Shipments to customers in North America increased by 49
percent, despite nearly flat North American light vehicle production. The
higher mirror unit production for North America was primarily due to interior
and exterior mirrors for light trucks and sport/utility vehicles.
Total automotive mirror unit shipments for the first quarter of 1998 were
1,268,000, compared with 863,000 units for the same quarter in 1997. Total
exterior mirror units shipped for the 1998 first quarter were 381,000 compared
with 207,000 for the first quarter of 1997. Unit shipments to auto customers
outside North America were 377,000 for the first quarter of 1998, compared
with 264,000 for the same 1997 quarter.
Revenues in the Fire Protection Products Group decreased by about 5
percent in the first quarter of 1998, due to lower than expected sales of
certain of the Company's audible and visual signals, and generally light
industry sales.
La Grand said that he believes that the coming year holds the potential
for continued strong growth for the Company, and estimated that automotive
unit shipments in calendar 1998 could increase by about 30 percent to
approximately five million units, compared with the 3.9 million units the
Company shipped in 1997. He also said that the year-over-year rate of growth
in the second half of 1998 may be moderately lower compared with the growth
rate in the first half of 1998, due primarily to major customer new model
introductions and expected slower customer production ramp ups.
Certain matters discussed in this news release 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 (as outlined in the Company's
Form 10-K filed with the Securities and Exchange Commission and other interim
reports) in some cases may affect in the future the Company's actual results,
and may cause those results to differ materially from those expressed in this
news release.
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 (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 customers include Audi, Bentley, BMW, Chrysler,
Daewoo, Fiat, Ford, General Motors, Gulf States Toyota, Honda, Hyundai,
Infiniti, Kia Motors, Lexus, Mercedes-Benz, Mitsubishi, Nissan, Opel, Porsche,
Rolls Royce and Southeast Toyota Distributors.
Founded in 1974, Gentex operates out of three facilities in Zeeland,
Michigan; an automotive sales and marketing office in Livonia, Michigan;
automotive sales and engineering subsidiaries in Germany and Japan; and five
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.
GENTEX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three Months Ended
March 31,
1998 1997
Net Sales $56,979,402 $41,902,122
Costs and Expenses
Cost of Goods Sold 34,340,509 27,169,956
Research & Development 2,579,229 2,077,268
Selling, General & Administrative 3,036,013 2,690,391
Other Expense (Income) (1,551,632) (974,771)
Total Costs and Expenses 38,404,119 30,962,844
Income Before Provision
for Income Taxes 18,575,283 10,939,278
Provision for Income Taxes 6,074,000 3,555,000
Net Income $12,501,283 $7,384,278
Earnings Per Share
Basic $0.35 $0.21
Diluted $0.34 $0.21
Weighted Average Shares:
Basic 35,562,598 34,818,212
Diluted 36,678,188 35,745,958
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
March 31, Dec. 31,
1998 1997
ASSETS
Cash and Short-Term Investments $54,463,858 $41,131,383
Other Current Assets 37,480,895 34,788,053
Total Current Assets 91,944,753 75,919,436
Plant and Equipment - Net 52,188,748 42,238,885
Long-Term Investments and Other
Assets 73,824,076 71,624,526
Total Assets $217,957,577 $189,782,847
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities $22,610,109 $14,591,224
Long-Term Debt 0 0
Deferred Income Taxes 2,912,347 1,986,446
Shareholders' Investment 192,435,121 173,205,177
Total Liabilities &
Shareholders' Investment $217,957,577 $189,782,847
SOURCE Gentex Corporation