Gentex Reports Record Third Quarter Revenues and Earnings
13 October 1999
Gentex Reports Record Third Quarter Revenues and Earnings
ZEELAND, Mich., Oct. 13 -- Gentex Corporation ,
the Zeeland, Michigan-based manufacturer of automatic-dimming rearview mirrors
and commercial fire protection products, today reported record financial
results for the third quarter and nine months ended September 30, 1999.
The Company reported a 46 percent increase in net income to $14.4 million,
or 19 cents per share, on record revenues of $64.1 million for the third
quarter ended September 30, 1999. In the comparable 1998 quarter, the Company
reported net income of $9.9 million, or 13 cents per share, on revenues of
$50.0 million.
For the first nine months of 1999, net income increased 44 percent to
$47.7 million, or 64 cents per share, on record revenues of $196.7 million.
For the comparable 1998 period, Gentex reported net income of $33.2 million,
or 45 cents per share, on revenues of $157.9 million.
"Our third quarter was another very good quarter for Gentex," said Gentex
Executive Vice President Kenneth La Grand. "Our auto-dimming mirror unit
shipments were higher than originally expected, primarily due to higher
production in North America of certain sport/utility vehicles. In addition,
unit shipments were also higher on certain mid-size and luxury cars both in
North America and Europe."
Automotive revenues increased by 33 percent in the third quarter and 27
percent for the first nine months of 1999 compared with the same respective
periods last year. Fire Protection revenues increased one percent in the
third quarter and two percent for the first nine months of 1999 compared with
the same 1998 periods. The slower growth in fire protection revenues in the
third quarter of 1999 was primarily due to a slower than expected production
ramp-up of a new signaling product.
Night Vision Safety(TM) (NVS(R)) Mirror unit shipments to customers in
North America increased by 25 percent in the third quarter and by 28 percent
for the first nine months of 1999 compared with the same 1998 periods. North
American light vehicle production increased by approximately 17 percent in the
third quarter of 1999 compared with the same 1998 quarter, and was up by 12
percent for the nine months ended September 30, 1999, compared with the same
1998 period.
Unit shipments to offshore customers increased by 52 percent in the third
quarter and 26 percent for the first nine months of 1999, compared with the
same 1998 periods. The high growth in offshore unit shipments is primarily
attributable to increased volume at Mercedes-Benz, Audi and Toyota.
Total Night Vision Safety(TM) (NVS(R)) Mirror shipments in the third
quarter were 1.4 million, a 34 percent increase over the 1.1 million units
reported in the same 1998 quarter. Exterior mirrors sub-assembly shipments
increased by 29 percent in the third quarter of 1999, accounting for 452,000
of the total mirror shipments in the third quarter of 1999, compared with
351,000 units in the same quarter last year.
For the first nine months of 1999, total unit shipments reached a record
4.4 million, a 28 percent increase over the 3.5 million units shipped during
the first nine months of 1998. For this same 1999 period, exterior mirror
shipments were 1.5 million, a 35 percent gain over the 1.1 million exterior
mirror units shipped during the first nine months of 1998.
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,
DaimlerChrysler, Daewoo, Fiat, Ford, General Motors, Gulf States Toyota
Distributors, Hyundai, Infiniti, Kia Motors, Lexus, Mitsubishi, Nissan, Opel,
Porsche, Rolls Royce, Land Rover, 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 Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
Net Sales $64,146,371 $49,596,221 $196,653,710 $157,947,372
Costs and Expenses
Cost of Goods Sold 38,351,928 30,412,536 112,529,258 96,322,113
Research &
Development 3,444,350 2,861,513 10,278,835 8,152,256
Selling, General &
Administrative 3,606,106 3,044,766 10,654,637 9,135,974
Other Expense
(Income) (2,719,601) (1,407,566) (7,680,024) (4,930,743)
Total Costs and
Expenses 42,682,783 34,911,249 125,782,706 108,679,600
Income Before Provision
for Income Taxes 21,463,588 14,684,972 70,871,004 49,267,772
Provision for Income
Taxes 7,020,000 4,784,000 23,181,000 16,101,000
Net Income $14,443,588 $9,900,972 $47,690,004 $33,166,772
Earnings Per Share
Basic $0.20 $0.14 $0.65 $0.46
Diluted $0.19 $0.13 $0.64 $0.45
Weighted Average Shares:
Basic 73,232,990 71,823,718 72,880,739 71,487,969
Diluted 75,036,282 73,422,512 75,032,658 73,512,644
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
Sept. 30, Dec. 31,
1999 1998
ASSETS
Cash and Short-Term Investments $79,850,751 $74,062,623
Other Current Assets 49,593,009 41,294,796
Total Current Assets 129,443,760 115,357,419
Plant and Equipment - Net 69,999,347 59,359,885
Long-Term Investments and
Other Assets 123,798,719 80,172,254
Total Assets $323,241,826 $254,889,558
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities $24,220,033 $14,846,890
Long-Term Debt 0 0
Deferred Income Taxes 2,944,452 3,034,450
Shareholders' Investment 296,077,341 237,008,218
Total Liabilities &
Shareholders' Investment $323,241,826 $254,889,558