Gentex Reports Fourth Quarter and Year End 2015 Financial Results
/EINPresswire.com/ -- ZEELAND, MI -- (Marketwired) -- 01/28/16 -- 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 fourth quarter and calendar year ended December 31, 2015.
4th Quarter and Calendar Year 2015 Highlights
- Unit shipment growth of 17% quarter over quarter and 14% year over year
- Revenue growth of 16% quarter over quarter and 12% year over year
- Gross Margin increased from 38.4% to 40.2% quarter over quarter
- Net Income increased by 25% quarter over quarter and 10% year over year
- Earnings per Diluted Share increased by 25% quarter over quarter to $.30 per diluted share and increased by 10% year over year to $1.08 per diluted share
- 1.8 million shares repurchased during the quarter and 6.7 million shares repurchased during the year
For the fourth quarter of 2015, the Company is pleased to report net sales of $405.6 million, an increase of 16% compared to net sales of $350.4 million for the fourth quarter of 2014. The increase was primarily due to a 17% increase in auto-dimming interior and exterior rearview mirror shipments on a quarter over quarter basis. For calendar year 2015, the Company's net sales increased 12% to $1.54 billion compared to $1.38 billion for calendar year 2014 as a result of a 14% increase in auto-dimming interior and exterior mirror unit shipments.
The gross profit margin in the fourth quarter of 2015 was 40.2% compared with a gross profit margin of 38.4% in the fourth quarter of 2014. The improvement in gross profit margin was primarily due to purchasing cost reductions and the Company's ability to leverage fixed overhead costs, which were partially offset by annual customer price reductions. The gross profit margin for calendar year 2015 was 39.1%, compared with a gross profit margin of 39.2% for calendar year 2014. Gross profit margin was primarily impacted by annual customer price reductions and foreign currency fluctuations, which were offset by purchasing cost reductions and product mix.
Net income for the fourth quarter of 2015 was $88.4 million, up 25% compared with net income of $71.0 million in the fourth quarter of 2014. Net income in calendar year 2015 was $318.5 million, up 10% compared with net income of $288.6 million in calendar year 2014.
Earnings per diluted share in the fourth quarter of 2015 were $0.30, compared with earnings per diluted share of $0.24 in the fourth quarter of 2014. Earnings per diluted share were $1.08 for calendar year 2015, compared with $0.98 for calendar year 2014, which reflects the December 31, 2014 stock split, effected in the form of a 100% stock dividend.
Automotive auto-dimming unit shipments in the fourth quarter of 2015 increased 17% compared with the fourth quarter of 2014 and for calendar year 2015 increased 14% compared to calendar year 2014. Automotive net sales in the fourth quarter of 2015 were $395.9 million, up 16% compared with $342.4 million in the fourth quarter of 2014, and for calendar year 2015 were $1.51 billion, up 12% compared with $1.34 billion in calendar year 2014.
Other net sales, which include dimmable aircraft windows and fire protection products, were $9.7 million in the fourth quarter of 2015, up 22% compared with $8.0 million in the fourth quarter of 2014, and for calendar year 2015 were $36.7 million, up 4% compared with $35.4 million in calendar year 2014.
Share Repurchases
The Company repurchased approximately 1.8 million shares of its common stock during the fourth quarter of 2015 and for the year ended December 31, 2015, the Company repurchased approximately 6.7 million shares of its common stock pursuant to its previously announced share repurchase plan. As of December 31, 2015, the Company has approximately 4.6 million shares remaining available for repurchase in the plan. 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.
Future Estimates
The Company's forecasts for light vehicle production for calendar year 2016 and 2017 are based on the IHS Automotive January 2016 forecast for light vehicle production in North America, Europe, Japan and Korea. Based on the following light vehicle production forecasts, the Company is also giving 2016 and 2017 production, annual guidance for 2016 and revenue guidance for 2017:
Light Vehicle Production (per IHS Automotive January light vehicle
production forecast)
(in Millions)
2017 vs. 2016 vs.
Calendar Calendar Calendar 2016 % 2015 %
Region Year 2017 Year 2016 Year 2015 Change Change
--------- --------- --------- -------- --------
North America 18.5 18.2 17.5 2% 4%
Europe 21.7 21.2 20.9 2% 1%
Japan and Korea 13.1 13.3 13.2 (2)% 1%
--------- --------- --------- -------- --------
Total Light Vehicle
Production 53.3 52.7 51.6 1% 2%
2016 Guidance
Revenue $1.64 - $1.72 billion
Gross Margin 38.5% - 39.5%
Operating Expenses (E, R&D and S, G&A) $152 - $160 million
Tax Rate 31.5% - 32.5%
Capital Expenditures $115 - $130 million
Depreciation & Amortization $90 - $100 million
In addition to calendar year 2016 guidance, the Company is also providing forward revenue guidance for calendar year 2017. Based on the IHS Automotive January 2016 forecast for light vehicle production in North America, Europe, Japan and Korea for calendar year 2017, the Company currently expects 2017 revenue growth, over and above the foregoing 2016 revenue estimates of approximately 6 - 10%.
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.
Fourth Quarter Conference Call
A conference call related to this news release will be simulcast live on the Internet beginning at 10:30 a.m. EST today, January 28, 2016. The dial-in number to participate in the call is 888-556-4997, passcode 482168. Participants may listen to the call via audio streaming via the link in the lower left corner of www.gentex.com or by visiting https://www.webcaster4.com/Webcast/Page/611/12570. Previous conference calls hosted by the Company are available at http://ir.gentex.com/WebcastArchives.
About The Company
Founded in 1974, Gentex Corporation (NASDAQ: 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 Twelve Months ended
December 31, December 31,
% %
2015 2014 Change 2015 2014 Change
------- ------- ------- ------- ------- -------
North American Interior
Mirrors 2,198 2,053 7% 8,649 8,201 5%
North American Exterior
Mirrors 872 652 34% 3,335 2,443 37%
------- ------- ------- ------- ------- -------
Total North American
Mirror Units 3,070 2,705 13% 11,984 10,644 13%
International Interior
Mirrors 3,966 3,249 22% 14,868 13,028 14%
International Exterior
Mirrors 1,519 1,347 13% 6,133 5,368 14%
------- ------- ------- ------- ------- -------
Total International
Mirror Units 5,485 4,596 19% 21,002 18,396 14%
Total Interior Mirrors 6,164 5,303 16% 23,517 21,228 11%
Total Exterior Mirrors 2,392 1,998 20% 9,468 7,812 21%
------- ------- ------- ------- ------- -------
Total Auto-Dimming Mirror
Units 8,555 7,301 17% 32,985 29,040 14%
======= ======= ======= ======= ======= =======
Note: Percent change and amounts may not total due to rounding.
GENTEX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Twelve Months ended
December 31, December 31,
2015 2014 2015 2014
------------ ------------ -------------- --------------
Net Sales $405,592,635 $350,410,939 $1,543,617,706 $1,375,501,159
Cost of Goods Sold 242,349,123 215,737,971 939,841,654 836,611,464
------------ ------------ -------------- --------------
Gross profit 163,243,512 134,672,968 603,776,052 538,889,695
Engineering,
Research &
Development 22,984,663 21,780,497 88,392,919 84,175,738
Selling, General &
Administrative 13,596,366 14,277,108 56,616,694 55,879,783
------------ ------------ -------------- --------------
Income from
operations 126,662,483 98,615,363 458,766,439 398,834,174
Other Income 2,013,168 5,404,427 4,825,017 16,492,316
------------ ------------ -------------- --------------
Income before Income
Taxes 128,675,651 104,019,790 463,591,456 415,326,490
Provision for Income
Taxes 40,280,095 33,044,911 145,121,597 126,721,911
------------ ------------ -------------- --------------
Net Income $ 88,395,556 $ 70,974,879 $ 318,469,859 $ 288,604,579
============ ============ ============== ==============
Earnings Per Share
Basic $ 0.30 $ 0.24 $ 1.09 $ 0.99
Diluted $ 0.30 $ 0.24 $ 1.08 $ 0.98
Weighted Average
Shares
Basic 291,456,906 292,742,146 293,096,212 290,952,123
Diluted 294,339,680 296,163,669 296,237,899 294,299,359
Cash Dividends
Declared per Share $ 0.085 $ 0.08 $ 0.335 $ 0.31
GENTEX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2015 2014
-------------- --------------
ASSETS
Cash and Short Term Investments $ 551,557,527 $ 497,430,825
Other Current Assets 432,451,265 359,206,869
-------------- --------------
Total Current Assets 984,008,792 856,637,694
Plant and Equipment - Net 412,720,270 373,390,992
Goodwill 307,365,845 307,365,845
Long-Term Investments 95,156,539 114,642,567
Intangible Assets 327,575,000 346,875,000
Patents and Other Assets 21,846,482 23,627,931
-------------- --------------
Total Other Assets 751,943,866 792,511,343
-------------- --------------
Total Assets $2,148,672,928 $2,022,540,029
============== ==============
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities $ 131,006,546 $ 133,431,163
Long-Term Debt 225,625,000 258,125,000
Deferred Income Taxes 69,524,621 59,571,421
Shareholders' Investment 1,722,516,761 1,571,412,445
-------------- --------------
Total Liabilities & Shareholders' Investment $2,148,672,928 $2,022,540,029
============== ==============
Contact Information:
Gentex Investor Relations
616-772-1590 x5814
