/EINPresswire.com/ -- ZEELAND, MI -- (Marketwired) -- 10/21/15 -- Gentex Corporation (NASDAQ: GNTX) the Zeeland, Michigan-based manufacturer of automotive automatic-dimming rearview mirrors, automotive electronics, dimmable aircraft windows, and fire protection products, today reported financial results for the three months ended September 30, 2015.

3rd Quarter 2015 Highlights

• Revenue growth of 11% quarter over quarter
• Gross Margin improved from 38.4% to 39.0% sequentially from the 2nd quarter 2015
• Operating Income increased by 13% quarter over quarter
• Net Income increased by 8% quarter over quarter
• Earnings per Diluted Share increased by 8% quarter over quarter to $.27 per diluted share
• Board authorization of an additional 5 million shares for repurchase plan
• 2.1 million shares repurchased during the quarter
• $26.9 million of debt repaid during the quarter
  
  

For the third quarter of 2015, the Company is pleased to report net sales of $389.8 million, which was an increase of 11% compared to net sales of $350.9 million in the third quarter of 2014. On a quarter over quarter basis, foreign currency fluctuations accounted for approximately 1% of revenue headwind during the third quarter of 2015.

The gross profit margin in the third quarter of 2015 was 39.0%, compared with a gross profit margin of 39.5% in the third quarter of 2014. On a quarter over quarter basis, foreign currency fluctuations accounted for the majority of the reduction in gross profit margin, while annual customer price reductions were essentially offset by purchasing cost reductions. Sequentially, from the second quarter of 2015, the gross margin improved from 38.4%, primarily due to increased purchasing cost reductions and improvements in product mix.

Operating income for the third quarter of 2015 increased 13% to $116.3 million, when compared to operating income of $103.2 million for the third quarter of 2014.

Other income decreased to a loss of $0.2 million in the third quarter of 2015 compared with other income of $0.8 million in the third quarter of 2014, primarily due to increased interest expense as a result of the Company's implemented interest rate swap, combined with lower realized gains on the sale of equity investments during the most recently completed quarter versus the same quarter in the prior year.

Net income for the third quarter of 2015 increased 8% to $78.3 million compared with net income of $72.3 million in the third quarter of 2014.

Earnings per diluted share in the third quarter of 2015 increased 8% to $0.27, compared with earnings per diluted share of $0.25 in the third quarter of 2014, which reflects the December 31, 2014 stock split, effected in the form of a 100% stock dividend.

Automotive net sales in the third quarter of 2015 were $379.9 million, an increase of 11% compared with automotive net sales of $341.8 million in the third quarter of 2014, primarily due to a 15% increase in auto dimming mirror unit shipments quarter over quarter.

Other net sales, which includes dimmable aircraft windows and fire protection products, were $9.9 million, an increase of 9%, in the third quarter of 2015, compared with $9.1 million in the third quarter of 2014.

Share Repurchases
During the third quarter of 2015, the Company repurchased 2.1 million shares of its common stock and through nine months ended September 30, 2015, the Company has repurchased 4.9 million shares. The Company's Board of Directors has also recently authorized the repurchase of up to an additional 5 million shares of the Company's outstanding common stock, under the existing terms of the most recently announced share repurchase plan. As of September 30, 2015, the Company has approximately 6.3 million shares remaining available for repurchase in the plan including the most recent share authorization. The Company intends to continue to repurchase additional shares of its common stock in the future depending on macroeconomic issues, market trends and other factors that the Company deems appropriate.

Debt Repayment
During the third quarter of 2015, the Company paid down $25 million on its revolver loan in addition to its normally scheduled principal repayment on the Company's term loan. The Company may, at its discretion, pay additional principal toward its loans in the future, depending on macroeconomic trends, capital expenditure spending, cash and money market interest rates, the amount of available free cash and other factors that it deems appropriate for timing and amounts of incremental debt repayments.

Future Estimates
The Company's forecasts for light vehicle production for the fourth quarter and calendar year 2015 are based on the IHS Automotive October 2015 forecast for light vehicle production in North America, Europe, Japan and Korea.

    Light Vehicle Production (per IHS Automotive October light vehicle
                            production forecast)
                               (in Millions)

                                                 Calendar Calendar
                                                   Year     Year      %
Region                Q4 2015 Q4 2014 % Change     2015     2014    Change
                      ------- ------- --------   -------- -------- -------
North America            4.31    4.24        2%     17.48    17.03       3%
Europe                   5.05    4.99        1%     20.74    20.15     2.9%
Japan and Korea          3.27    3.38       (3)%    13.12    13.68      (4)%
                      ------- ------- --------   -------- -------- -------
Total Light Vehicle
 Production             12.63   12.61       --%     51.34    50.86       1%

Based on the above light vehicle production forecasts, the Company is providing and updating certain guidance for the fourth quarter and calendar year 2015.

                         2015 Calendar Year Guidance
                                              Annual Guidance
Item                           Updated as of 7/23/15  Updated as of 10/21/15
                               ---------------------  ----------------------
Net Sales                      $1.52 - $1.55 billion  $1.52 - $1.54 billion
Gross Margin                   38.5% - 39.0%          no change
Operating Expenses (E,R&D and
S,G&A)                         $148 - $151 million    $145-147 million
Tax Rate                       31.5% - 32.0%          no change
Capital Expenditures           $95 - $105 million     no change
Depreciation & Amortization    $85 - $90 million      no change

Safe Harbor for Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements contained in this communication that are not purely historical are forward-looking statements. Forward-looking statements give the Company's current expectations or forecasts of future events. These forward-looking statements generally can be identified by the use of words such as "anticipate", "believe", "could", "estimate", "expect", "forecast", "goal", "hope", "may", "plan", "project", "will", and variations of such words and similar expressions. Such statements are subject to risks and uncertainties that are often difficult to predict and beyond the Company's control, and could cause the Company's results to differ materially from those described. These risks and uncertainties include, without limitation, changes in general industry or regional market conditions; changes in consumer and customer preferences for our products; our ability to be awarded new business; continued uncertainty in pricing negotiations with customers; loss of business from increased competition; customer bankruptcies or divestiture of customer brands; fluctuation in vehicle production schedules; changes in product mix; raw material shortages; higher raw material, fuel, energy and other costs; unfavorable fluctuations in currencies or interest rates in the regions in which we operate; costs or difficulties related to the integration of any new or acquired technologies and businesses; changes in regulatory conditions; warranty and recall claims and other litigation and customer reactions thereto; possible adverse results of pending or future litigation or infringement claims; negative impact of any governmental investigations and associated litigations including securities litigations relating to the conduct of our business. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law or the rules of the NASDAQ Global Select Market. Accordingly, any forward-looking statement should be read in conjunction with the additional information about risks and uncertainties identified under the heading "Risk Factors" in the Company's latest Form 10-K and Form 10-Q filed with the SEC.

Third Quarter Conference Call
A conference call related to this news release will be simulcast live on the Internet beginning at 10:30 a.m. EDT today, October 21, 2015. The dial-in number to participate in the call is 888-395-3227, passcode 9515045. Participants may listen to the call via audio streaming at http://www.visualwebcaster.com/event.asp?id=102887. Participants can also access that call by going to www.gentex.com and selecting the "Audio Webcast" icon on the bottom left side of the page. Other conference calls hosted by the Company will also be available at that site in the future.

About The Company
Founded in 1974, Gentex Corporation (The NASDAQ Global Select Market: GNTX) is a supplier of automatic-dimming rearview mirrors and electronics to the automotive industry, dimmable aircraft windows for aviation markets, and fire protection products to the fire protection market. Visit the Company's web site at www.gentex.com.

                             GENTEX CORPORATION
                       AUTO-DIMMING MIRROR SHIPMENTS
                                (Thousands)


                                 Three Months Ended     Nine Months Ended
                                   September 30,          September 30,

                                                %                      %
                                2015   2014   Change   2015   2014   Change
                               ------ ------ -------  ------ ------ -------
North American Interior Mirrors 2,242  2,054       9%  6,451  6,148       5%
North American Exterior Mirrors   871    627      39%  2,462  1,792      37%
                               ------ ------ -------  ------ ------ -------
  Total North American Mirror
   Units                        3,114  2,681      16%  8,913  7,939      12%
International Interior Mirrors  3,669  3,206      14% 10,903  9,778      12%
International Exterior Mirrors  1,541  1,347      14%  4,614  4,022      15%
                               ------ ------ -------  ------ ------ -------
  Total International Mirror
   Units                        5,210  4,553      14% 15,517 13,800      12%
Total Interior Mirrors          5,911  5,259      12% 17,354 15,926       9%
Total Exterior Mirrors          2,412  1,974      22%  7,076  5,813      22%
                               ------ ------ -------  ------ ------ -------
  Total Auto-Dimming Mirror
   Units                        8,324  7,233      15% 24,430 21,739      12%
                               ====== ====== =======  ====== ====== =======

Note: Percent change and amounts may not total due to rounding.

                     GENTEX CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME

                                 (Unaudited)

                        Three Months Ended      Nine Months Ended September
                           September 30,                    30,
                        2015          2014          2015           2014
                    ------------  ------------ -------------- --------------
Net Sales           $389,829,139  $350,913,912 $1,138,025,071 $1,025,090,220

 Cost of Goods Sold  237,932,439   212,288,220    697,492,531    620,873,493
                    ------------  ------------ -------------- --------------
  Gross profit       151,896,700   138,625,692    440,532,540    404,216,727

 Engineering,
  Research &
  Development         21,505,461    21,671,940     65,408,256     62,395,241
 Selling, General &
  Administrative      14,128,619    13,747,925     43,020,328     41,602,675
                    ------------  ------------ -------------- --------------
  Operating Expenses  35,634,080    35,419,865    108,428,584    103,997,916
                    ------------  ------------ -------------- --------------

 Income from
  operations         116,262,620   103,205,827    332,103,956    300,218,811

 Other Income           (214,878)      786,780      2,811,849     11,087,889
                    ------------  ------------ -------------- --------------
Income before Income
 Taxes               116,047,742   103,992,607    334,915,805    311,306,700

Provision for Income
 Taxes                37,715,317    31,655,724    104,841,502     93,677,000
                    ------------  ------------ -------------- --------------

                    ------------  ------------ -------------- --------------
Net Income          $ 78,332,425  $ 72,336,883 $  230,074,303 $  217,629,700
                    ============  ============ ============== ==============

Earnings Per Share
 Basic              $       0.27  $       0.25 $         0.78 $         0.75
 Diluted            $       0.27  $       0.25 $         0.77 $         0.74
Weighted Average
 Shares
 Basic               292,589,866   290,969,434    293,742,028    290,383,296
 Diluted             295,377,478   292,875,952    296,994,572    292,918,052

Cash Dividends
 Declared per Share $      0.085  $       0.08 $         0.25 $         0.23



                     GENTEX CORPORATION AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED BALANCE SHEETS

                                               (Unaudited)
                                              September 30,    December 31,
                                                   2015            2014
                                             --------------- ---------------
ASSETS
Cash and Cash Equivalents                    $   564,528,197 $   497,429,804
Accounts Receivable, net                         208,203,616     168,008,704
Inventories                                      164,604,063     141,757,884
Other Current Assets                              41,867,345      49,441,302
                                             --------------- ---------------
Total Current Assets                             979,203,221     856,637,694

Plant and Equipment - Net                        388,188,954     373,390,992

Goodwill                                         307,365,845     307,365,845
Long-Term Investments                             94,424,586     114,642,567
Intangible Assets                                332,400,000     346,875,000
Patents and Other Assets                          22,428,765      23,627,931
                                             --------------- ---------------
Total Other Assets                               756,619,196     792,511,343

                                             --------------- ---------------
Total Assets                                 $ 2,124,011,371 $ 2,022,540,029
                                             =============== ===============

LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities                          $   181,629,886 $   133,431,163
Long-Term Debt                                   227,500,000     258,125,000
Deferred Income Taxes                             43,785,884      59,571,421
Shareholders' Investment                       1,671,095,601   1,571,412,445
                                             --------------- ---------------
Total Liabilities & Shareholders' Investment $ 2,124,011,371 $ 2,022,540,029
                                             =============== ===============

Contact Information:
Gentex Investor & Media Contact
Josh O'Berski
(616)772-1590 x5814

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