Gentex Reports Record First Quarter Revenues and Net Income
14 April 1999
Gentex Reports Record First Quarter Revenues and Net Income
ZEELAND, Mich., April 14 -- 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, 1999.
The Company achieved an all-time sales record in the first quarter of 1999
with revenues of $65.6 million, a 15 percent increase over revenues of
$57.0 million reported in the first quarter last year. Net income of
$16.7 million, or 22 cents per share, for the first quarter of 1999 increased
by 34 percent compared with net income of $12.5 million, or 17 cents per
share, in the comparable 1998 quarter. All per share amounts reported are
diluted, and reflect the two-for-one stock split in June 1998.
"While our automotive unit shipments increased in accordance with our
expectations, our yields on certain mirror products continued to be better
than expected, contributing to higher profitability," said Gentex Executive
Vice President Kenneth La Grand. He said that the better yields are
attributable to the ongoing effects of in-house coating equipment and
processes implemented by the Company beginning in the second quarter of 1998.
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 1999 could increase by about 20-25 percent to
approximately six million units, compared with the 4.9 million units the
Company shipped in 1998.
"We're looking for another good year in 1999," said La Grand. "And, we
have increased our R&D investment to ensure the success of a number of
potential new mirror programs with sophisticated electronic features that
could significantly add to our sales volume within the next twelve months."
La Grand said that mirror unit shipments to offshore auto customers
increased by 11 percent compared with the first quarter of 1998. Shipments to
customers in North America increased by 20 percent, while North American light
vehicle production increased by eight percent. 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 1999 were
1,490,000, compared with 1,268,000 units for the same quarter in 1998. Total
exterior mirror units shipped for the 1999 first quarter were 519,000 compared
with 381,000 for the first quarter of 1998. Unit shipments to auto customers
outside North America were 417,000 for the first quarter of 1999, compared
with 375,000 for the same 1998 quarter.
Revenues in the Fire Protection Products Group increased by about two
percent in the first quarter of 1999, due to increased sales of certain of the
Company's audible and visual signals.
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(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. Revenues from the sale of automatic-dimming mirrors represent
about 91 percent of total Company revenues.
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, Daewoo,
DaimlerChrysler, Fiat, Ford, General Motors, Gulf States Toyota, Hyundai,
Infiniti, Kia Motors, Lexus, Nissan, Opel, Porsche, Rolls Royce, Samsung,
Southeast Toyota Distributors and Toyota.
Founded in 1974, Gentex operates out of three facilities in Zeeland,
Michigan; an automotive sales office in Livonia, Michigan; automotive sales
and engineering subsidiaries in Germany and Japan; 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.
GENTEX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three Months Ended
March 31,
1999 1998
Net Sales $65,618,190 $56,979,402
Costs and Expenses
Cost of Goods Sold 36,624,710 34,340,509
Research & Development 3,291,327 2,579,229
Selling, General & Administrative 3,414,208 3,036,013
Other Expense (Income) (2,468,739) (1,551,632)
Total Costs and Expenses 40,861,506 38,404,119
Income Before Provision
for Income Taxes 24,756,684 18,575,283
Provision for Income Taxes 8,047,000 6,074,000
Net Income $16,709,684 $12,501,283
Earnings Per Share
Basic $0.23 $0.18
Diluted $0.22 $0.17
Weighted Average Shares:
Basic 72,412,314 71,125,196
Diluted 74,688,492 73,356,376
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
March 31, Dec 31,
1999 1998
ASSETS
Cash and Short-Term Investments $104,025,281 $74,062,623
Other Current Assets 43,677,133 41,294,796
Total Current Assets 147,702,414 115,357,419
Plant and Equipment - Net 59,756,404 59,359,885
Long-Term Investments and Other Assets 77,645,583 80,172,254
Total Assets $285,104,401 $254,889,558
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities $25,355,987 $14,846,890
Long-Term Debt 0 0
Deferred Income Taxes 2,603,060 3,034,450
Shareholders' Investment 257,145,354 237,008,218
Total Liabilities &
Shareholders' Investment $285,104,401 $254,889,558
Note: All earnings per share amounts and weighted daily average shares
outstanding reflect the 2-for-1 stock split effected in the form of a 100%
common stock dividend effective on June 22, 1998.