Gencor Releases Third Quarter Fiscal 2024 Results
Rhea-AI Summary
Gencor Industries (NYSE American: GENC) reported its Q3 fiscal 2024 results. Net revenues decreased to $25.55 million from $27.88 million in Q3 2023. Gross profit margins fell to 23.9% from 26.9%. Operating income decreased to $1.99 million from $3.45 million. However, net other income increased to $1.33 million from $0.72 million. Net income for Q3 2024 was $2.56 million ($0.17 per share), compared to $3.21 million ($0.22 per share) in Q3 2023.
For the nine months ended June 30, 2024, Gencor reported net revenues of $92.25 million and net income of $13.11 million ($0.89 per share), up from $84.20 million and $11.56 million ($0.79 per share) in the same period last year. The company's backlog reached $46.6 million, a 67% increase from the previous year. Gencor maintains a strong financial position with $116.59 million in cash and marketable securities and no debt.
Positive
- Backlog increased 67% year-over-year to $46.6 million, a historic high for this time of year
- Nine-month net revenues increased to $92.25 million from $84.20 million in the prior year
- Nine-month net income rose 13% to $13.11 million from $11.56 million year-over-year
- Cash and marketable securities increased to $116.59 million from $101.28 million at fiscal year-end
- Company remains debt-free with strong net working capital of $178.97 million
Negative
- Q3 net revenues decreased 8.3% year-over-year to $25.55 million
- Q3 gross profit margins declined to 23.9% from 26.9% in the prior year
- Q3 operating income fell 42.3% to $1.99 million from $3.45 million year-over-year
- Q3 net income decreased 20.4% to $2.56 million from $3.21 million in the prior year
- SG&A expenses increased slightly to $3.29 million from $3.21 million year-over-year
News Market Reaction – GENC
On the day this news was published, GENC declined 15.42%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
ORLANDO, Fla., Aug. 09, 2024 (GLOBE NEWSWIRE) -- Gencor Industries, Inc. (the “Company” or “Gencor”) (NYSE American: GENC) announced today net revenues for the quarter ended June 30, 2024 decreased
As a percent of sales, gross profit margins decreased to
Product engineering and development expenses decreased by
Operating income decreased from
For the quarter ended June 30, 2024, the Company had net other income of
The effective income tax rate for the quarters ended June 30, 2024 and June 30, 2023 was
Net income for the quarter ended June 30, 2024 was
For the nine months ended June 30, 2024 the Company had net revenues of
At June 30, 2024, the Company had
The Company’s backlog was
Marc Elliott, Gencor’s President, commented, “Third quarter fiscal 2024 revenues dipped from the prior year, primarily due to timing of revenue recognition on orders nearing completion. This is positively reflected in our elevated backlog of
Our performance over the first nine months has been strong, with increased revenue and a
Gencor Industries, Inc. is a diversified heavy machinery manufacturer for the production of highway construction materials and equipment and environmental control machinery and equipment used in a variety of applications.
| GENCOR INDUSTRIES, INC. Condensed Consolidated Income Statements (Unaudited) | |||||||||||
| For the Quarters Ended June 30, | For the Nine Months Ended June 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Net revenue | $ | 25,551,000 | $ | 27,877,000 | $ | 92,245,000 | $ | 84,204,000 | |||
| Cost of goods sold | 19,444,000 | 20,365,000 | 66,282,000 | 61,780,000 | |||||||
| Gross profit | 6,107,000 | 7,512,000 | 25,963,000 | 22,424,000 | |||||||
| Operating expenses: | |||||||||||
| Product engineering and development | 824,000 | 845,000 | 2,518,000 | 2,616,000 | |||||||
| Selling, general and administrative | 3,290,000 | 3,214,000 | 10,997,000 | 9,075,000 | |||||||
| Total operating expenses | 4,114,000 | 4,059,000 | 13,515,000 | 11,691,000 | |||||||
| Operating income | 1,993,000 | 3,453,000 | 12,448,000 | 10,733,000 | |||||||
| Other income (expense), net: | |||||||||||
| Interest and dividend income, net of fees | 966,000 | 673,000 | 2,485,000 | 1,731,000 | |||||||
| Net realized and unrealized gains on marketable securities, net | 363,000 | 46,000 | 2,087,000 | 2,700,000 | |||||||
| Total other income (expense), net | 1,329,000 | 719,000 | 4,572,000 | 4,431,000 | |||||||
| Income before income tax expense | 3,322,000 | 4,172,000 | 17,020,000 | 15,164,000 | |||||||
| Income tax expense | 764,000 | 960,000 | 3,914,000 | 3,603,000 | |||||||
| Net income | $ | 2,558,000 | $ | 3,212,000 | $ | 13,106,000 | $ | 11,561,000 | |||
| Net income per common share - basic and diluted | $ | 0.17 | $ | 0.22 | $ | 0.89 | $ | 0.79 | |||
| GENCOR INDUSTRIES, INC. Condensed Consolidated Balance Sheets (Unaudited) | |||||
| ASSETS | June 30, 2024 | September 30, 2023 | |||
| Current assets: | |||||
| Cash and cash equivalents | $ | 28,780,000 | $ | 17,031,000 | |
| Marketable securities at fair value (cost of | 87,805,000 | 84,252,000 | |||
| Accounts receivable, less allowance for credit losses of June 30, 2024 and | 2,923,000 | 2,467,000 | |||
| Costs and estimated earnings in excess of billings | 2,700,000 | 1,508,000 | |||
| Inventories, net | 63,232,000 | 71,527,000 | |||
| Prepaid expenses and other current assets | 531,000 | 2,169,000 | |||
| Total current assets | 185,971,000 | 178,954,000 | |||
| Property and equipment, net | 12,038,000 | 13,246,000 | |||
| Deferred and other income taxes | 3,273,000 | 3,167,000 | |||
| Other long-term assets | 473,000 | 381,000 | |||
| Total Assets | $ | 201,755,000 | $ | 195,748,000 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | $ | 2,346,000 | $ | 3,269,000 | |
| Customer deposits | 2,560,000 | 6,815,000 | |||
| Accrued expenses | 1,740,000 | 3,753,000 | |||
| Current operating lease liabilities | 359,000 | 328,000 | |||
| Total current liabilities | 7,005,000 | 14,165,000 | |||
| Non-current operating lease liabilities | 61,000 | - | |||
| Total liabilities | 7,066,000 | 14,165,000 | |||
| Commitments and contingencies | |||||
| Shareholders’ equity: | |||||
| Preferred stock, par value $.10 per share; 300,000 shares authorized; none issued | - | - | |||
| Common stock, par value $.10 per share; 15,000,000 shares authorized; | |||||
| 12,338,845 shares issued and outstanding at June 30, 2024 and September 30, 2023 | 1,234,000 | 1,234,000 | |||
| Class B Stock, par value $.10 per share; 6,000,000 shares authorized; | |||||
| 2,318,857 shares issued and outstanding at June 30, 2024 and September 30, 2023 | 232,000 | 232,000 | |||
| Capital in excess of par value | 12,590,000 | 12,590,000 | |||
| Retained earnings | 180,633,000 | 167,527,000 | |||
| Total shareholders’ equity | 194,689,000 | 181,583,000 | |||
| Total Liabilities and Shareholders’ Equity | $ | 201,755,000 | $ | 195,748,000 | |
Caution Concerning Forward Looking Statements - This press release and our other communications and statements may contain certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including statements about the Company’s beliefs, plans, objectives, goals, expectations, estimates, projections and intentions. These statements are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond the Company’s control. Actual results may differ materially depending on a variety of important factors, including the financial condition of the Company’s customers, changes in the economic and competitive environments and demand for the Company’s products. In addition, the impact of the invasion by Russia into Ukraine and the conflict between Israel and Hamas, as well as actions taken by other countries, including the U.S., in response to such conflicts, could result in a disruption in our supply chain and higher costs of our products. The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “goal,” and similar expressions are intended to identify forward-looking statements.
For information concerning these factors and related matters, see the following sections of the Company’s Annual Report on Form 10-K for the year ended September 30, 2023: (a) Part I, Item 1A, “Risk Factors” and (b) Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”. However, other factors besides those referenced could adversely affect the Company’s results, and you should not consider any such list of factors to be a complete set of all potential risks or uncertainties. Any forward-looking statements made by the Company herein speak as of the date of this press release. The Company does not undertake to update any forward-looking statements, except as required by law.
Unless the context otherwise indicates, all references in this press release to the “Company,” “Gencor,” “we,” “us,” or “our,” or similar words are to Gencor Industries, Inc. and its subsidiaries.
