Gentex Reports Record Revenues for the Second Quarter of 1999
14 July 1999
Gentex Reports Record Revenues for the Second Quarter of 1999
ZEELAND, Mich., July 14 -- Gentex Corporation ,
the Zeeland, Michigan-based manufacturer of automatic-dimming rearview mirrors
and commercial fire protection products, today reported record financial
results for the second quarter and six months ended June 30, 1999.
The Company reported record second quarter net income of $16.5 million, or
22 cents per share, on record revenues of $66.9 million for the second quarter
ended June 30, 1999. In the comparable 1998 quarter, the Company reported net
income of $10.8 million, or 15 cents per share, on revenues of $51.4 million.
For the first six months of 1999, net income increased to $33.2 million,
or 44 cents per share, on record revenues of $132.5 million. For the
comparable 1998 period, Gentex reported net income of $23.3 million, or 32
cents per share, on revenues of $108.4 million.
All per share data are diluted and adjusted to reflect the two-for-one
stock split, effected in the form of a 100 percent common stock dividend, on
June 22, 1998.
"We had an excellent second quarter, fueled by strong North American light
vehicle production," said Gentex Executive Vice President Kenneth La Grand.
"Unit shipments to customers in North America increased by 41 percent in the
quarter compared with the second quarter of 1998." La Grand said that unit
shipments to offshore customers also were strong, and increased by 17 percent
in the second quarter.
Total Night Vision Safety(TM)(NVS(R)) Mirror shipments in the second
quarter were 1.5 million, a 34 percent increase over the 1.1 million units
reported in the same 1998 quarter. Exterior mirrors accounted for 500,000 of
the total mirror shipments in the second quarter of 1999, compared with
357,000 units in the same quarter last year.
For the first six months of 1999, total unit shipments reached a record
3.0 million, a 25 percent increase over the first six months of 1998. For
that same six-month period in 1999, exterior mirror shipments were 1.0
million, a 38 percent gain over the 738,000 exterior mirror units shipped
during the first six months of 1998.
North American light vehicle production increased by 12 percent and 10
percent, respectively, for the second quarter and six months ended June 30,
1999, compared with the respective 1998 periods.
The Company's Fire Protection Products Group reported an increase in
revenues of about 3 percent for both the second quarter and first six months
of 1998. La Grand cited increased sales of certain signals and smoke
detectors for the increase, but said that industry sales still are generally
soft.
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
over 90 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, Mitsubishi, Nissan, Opel, Porsche, Rolls Royce,
Samsung, Ssangyong, 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 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 Six Months Ended
June 30, June 30,
1999 1998 1999 1998
Net Sales $66,889,149 $51,371,749 $132,507,339 $108,351,151
Costs and Expenses
Cost of Goods Sold 37,552,621 31,569,068 74,177,330 65,909,577
Research & Development 3,543,158 2,711,514 6,834,485 5,290,743
Selling, General
& Administrative 3,634,323 3,055,195 7,048,531 6,091,208
Other Expense (Income) (2,491,684) (1,971,546) (4,960,423) (3,523,178)
Total Costs
and Expenses 42,238,418 35,364,231 83,099,923 73,768,350
Income Before Provision
for Income Taxes 24,650,731 16,007,518 49,407,416 34,582,801
Provision for Income
Taxes 8,114,000 5,243,000 16,161,000 11,317,000
Net Income $16,536,731 $10,764,518 $33,246,416 $23,265,801
Earnings Per Share
Basic $0.23 $0.15 $0.46 $0.33
Diluted $0.22 $0.15 $0.44 $0.32
Weighted Average Shares:
Basic 72,993,935 71,560,230 72,694,625 71,332,350
Diluted 75,301,775 73,807,749 75,018,638 73,584,918
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
June 30, Dec 31,
1999 1998
ASSETS
Cash and Short-Term Investments $117,417,559 $74,062,623
Other Current Assets 43,723,027 41,294,796
Total Current Assets 161,140,586 115,357,419
Plant and Equipment - Net 64,346,277 59,359,885
Long-Term Investments and Other Assets 80,830,547 80,172,254
Total Assets $306,317,410 $254,889,558
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities $19,652,338 $14,846,890
Long-Term Debt 0 0
Deferred Income Taxes 3,875,540 3,034,450
Shareholders' Investment 282,789,532 237,008,218
Total Liabilities &
Shareholders' Investment $306,317,410 $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.