Gentex Reports Record First Quarter Revenues and Net Income
18 April 2000
Gentex Reports Record First Quarter Revenues and Net Income
ZEELAND, Mich., April 17 Gentex Corporation
(Nasdaq: GNTX), 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, 2000.
The Company achieved an all-time sales record in the first quarter of 2000
with revenues of $73.9 million, a 13 percent increase over revenues of $65.6
million reported in the first quarter last year. Net income of $18.6 million,
or 25 cents per share, for the first quarter of 2000 increased by 11 percent
compared with net income of $16.7 million, or 22 cents per share, in the
comparable 1999 quarter. All per share amounts reported are diluted.
"North American light vehicle production was better than originally
expected, and our yields on certain mirror products continued to be better
than expected, contributing to higher profitablity," said Gentex Executive
Vice President Kenneth La Grand.
"We continue to invest more in research and development as we add
significant electronic content to our auto-dimming mirrors," said Gentex
Executive Vice President Kenneth La Grand. "During the first quarter, we
began shipping the first auto-dimming OnStar(R) mirrors for seven General
Motors vehicle models, and are working with other automakers to designate the
interior electrochromic mirror as the primary driver interface for other in-
vehicle safety, security and information services that include Global
Positioning Systems, cell phones, etc.
"We have also increased selling expense spending to support our sales and
engineering offices overseas. We believe this is necessary to achieve future
goals for growth."
La Grand said that mirror unit shipments to offshore auto customers
increased by 45 percent compared with the first quarter of 1999, while
shipments to customers in North America increased by six percent.
Total automotive mirror unit shipments for the first quarter of 2000 were
1,733,000, compared with 1,490,000 units for the same quarter in 1999. Total
exterior mirror units shipped for the 2000 first quarter were 539,000 compared
with 519,000 for the first quarter of 1999. Unit shipments to auto customers
outside North America were 589,000 for the first quarter of 2000, compared
with 406,000 for the same 1999 quarter.
Revenues in the Fire Protection Products Group increased by about three
percent in the first quarter of 2000.
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 (some of which are outlined
in the Company's Form 10-K filed with the Securities and Exchange Commission
and other interim reports) and future events may affect 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.
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 Audi, Bentley, BMW, Daewoo,
DaimlerChrysler, Fiat, Ford, General Motors, Hyundai, Infiniti, Kia Motors,
Lexus, Mitsubishi, Nissan, Opel, Porsche, Rolls Royce and Toyota. Gentex
aftermarket/distributor 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 and the United Kingdom; 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,
2000 1999
Net Sales $73,876,538 $65,618,190
Costs and Expenses
Cost of Goods Sold 41,369,621 36,624,710
Research & Development 3,873,935 3,291,327
Selling, General & Administrative 4,139,139 3,414,208
Other Expense (Income) (2,955,191) (2,468,739)
Total Costs and Expenses 46,427,504 40,861,506
Income Before Provision
for Income Taxes 27,449,034 24,756,684
Provision for Income Taxes 8,899,000 8,047,000
Net Income $18,550,034 $16,709,684
Earnings Per Share
Basic $0.25 $0.23
Diluted $0.25 $0.22
Weighted Average Shares:
Basic 73,521,804 72,412,314
Diluted 75,617,308 74,688,492
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
March 31, Dec 31,
2000 1999
ASSETS
Cash and Short-Term Investments $110,871,486 $94,733,629
Other Current Assets 52,294,576 43,481,955
Total Current Assets 163,166,062 138,215,584
Plant and Equipment - Net 76,709,555 71,338,053
Long-Term Investments and
Other Assets 134,947,985 128,119,133
Total Assets $374,823,602 $337,672,770
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities $27,196,344 $16,470,211
Long-Term Debt 0 0
Deferred Income Taxes 4,834,558 4,151,143
Shareholders' Investment 342,792,700 317,051,416
Total Liabilities & Shareholders'
Investment $374,823,602 $337,672,770