Core Viewpoint - Gencor Industries, Inc. reported disappointing financial results for the third quarter of fiscal 2024, with significant declines in both revenue and net income compared to the previous year [9]. Revenue Details - Gencor's revenues for the fiscal third quarter were $25.6 million, reflecting an 8.3% decrease year over year [2]. - The decline in revenues was attributed to lower equipment sales recognized at a point in time and reduced parts and component sales, primarily due to the timing of orders and shipments [2]. - The company's backlog increased to $46.6 million at the end of June 30, 2024, compared to $27.9 million at the end of June 30, 2023 [2]. Segment Performance - Revenue from Equipment sales recognized over time was $11.6 million, up 2.8% from the year-ago quarter [3]. - Equipment sales recognized at a point in time totaled $6.9 million, down 22.8% year over year [4]. - Parts and component sales generated revenues of $5.2 million, down 17.6% from the year-ago quarter [4]. - Freight revenues were $1.6 million, up 39.9% year over year, while Other revenues were $0.2 million, up 67.3% from the year-ago quarter [4]. Profitability Metrics - Gencor's gross profit margin decreased to 23.9% from 26.9% in the year-ago quarter due to lower absorption from reduced production and lower parts sales [5]. - Operating profit for the quarter was $1.9 million, a decrease of 42.3% from the prior-year quarter [7]. - Net income was $2.6 million, down 20.4% from the year-ago quarter [7]. Operating Expenses - Selling, general and administrative expenses increased by 2.4% year over year to $3.3 million [6]. - Product engineering and development expenses declined by 2.5% year over year to $0.8 million [6]. Liquidity and Cash Flow - Gencor ended the third quarter with cash and cash equivalents of $28.8 million, down from $30.2 million at the end of the fiscal second quarter [8]. - Cumulative net cash provided by operating activities was $12.5 million, compared to cumulative net cash used in operating activities of $1.6 million a year ago [8]. Outlook - Despite the dismal top-line and bottom-line results, management expressed optimism about the company's elevated backlog, which is at a historic high for this time of year [10].

Core Viewpoint - Gencor Industries, Inc. reported a decrease in net revenues for the quarter ended June 30, 2024, primarily due to lower equipment sales and reduced parts sales, reflecting delayed shipment timing of orders [1][9]. Financial Performance - Net revenues for the quarter ended June 30, 2024, were $25,551,000, down from $27,877,000 in the same quarter of 2023, a decrease of $2,326,000 [1]. - Gross profit margins decreased to 23.9% in the quarter ended June 30, 2024, compared to 26.9% in the same quarter of 2023, attributed to lower production absorption and parts sales [2]. - Operating income fell from $3,453,000 in the quarter ended June 30, 2023, to $1,993,000 in the quarter ended June 30, 2024, due to lower revenues and reduced gross profit margins [4]. - Net income for the quarter ended June 30, 2024, was $2,558,000, or $0.17 per share, compared to $3,212,000, or $0.22 per share, for the same quarter in 2023 [6]. Expenses - Product engineering and development expenses decreased by $21,000 to $824,000 for the quarter ended June 30, 2024, while selling, general and administrative (SG&A) expenses increased by $76,000 to $3,290,000 [3]. Other Income - The company reported net other income of $1,329,000 for the quarter ended June 30, 2024, compared to $719,000 in the same quarter of 2023, with interest and dividend income increasing due to higher interest rates on cash balances and fixed income investments [5]. Year-to-Date Performance - For the nine months ended June 30, 2024, net revenues were $92,245,000, up from $84,204,000 in the same period of 2023, and net income rose to $13,106,000 from $11,561,000 [7]. Balance Sheet and Cash Position - As of June 30, 2024, the company had $116,585,000 in cash and marketable securities, an increase from $101,283,000 at September 30, 2023, with no short-term or long-term debt outstanding [8]. - The company's backlog reached $46.6 million at June 30, 2024, representing a 67% increase compared to $27.9 million at June 30, 2023, indicating strong future demand [9]. Management Commentary - The President of Gencor noted that the revenue dip was primarily due to timing in revenue recognition, but expressed optimism about future growth driven by strong demand for equipment and robust highway funding [10].

Core Viewpoint - Zacks Investment Research has initiated coverage of Gencor Industries, Inc. (GENC) with an "Outperform" recommendation, highlighting the company's strong growth, operational efficiency, and favorable market positioning in the infrastructure and manufacturing sectors [1] Company Overview - Gencor Industries, based in Orlando, FL, specializes in manufacturing heavy machinery for highway construction, including asphalt pavers and hot mix asphalt plants, leveraging technical and design capabilities along with environmentally friendly technology [2] Financial Performance - Gencor Industries reported a significant growth in quarterly net revenues, which surged by 33.4% year over year, alongside a 27.7% increase in net income, indicating effective scaling of profitability with sales growth [3] - The company's gross profit margin has improved, and operating income has surged by 37%, reflecting enhanced operational efficiency [3] - Gencor's backlog grew by 34.8%, indicating sustained demand for its products and services, which is a critical indicator of future revenues [4] - Financially, GENC is solid with $117.1 million in cash and no debt, providing a strong foundation for future growth [4] Growth Drivers - Key factors driving Gencor Industries' future growth include operational improvements, effective cost management, and strong demand for its products, supported by robust backlog growth suggesting a stable revenue stream [5] Market Positioning - Gencor Industries' stock has significantly outperformed its industry peers and the broader market over the past year, currently trading at low valuation multiples relative to industry standards, presenting a compelling entry point for investors [7] - The company has a modest market capitalization of $297.1 million, indicating potential for growth in a promising but risky market segment [8]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD: From to Commission File Number: 001-11703 GENCOR INDUSTRIES, INC. Delaware 59-0933147 (State or other jurisdiction (IRS Employer of incorporation or organi ...

GENCOR RELEASES SECOND QUARTER FISCAL 2024 RESULTS For the six months ended March 31, 2024 the Company had net revenue of $66,694,000 and net income of $10,548,000 ($0.72 per diluted share) versus net revenue of $56,327,000 and net income of $8,349,000 ($0.57 per diluted share) for the six months ended March 31, 2023. At March 31, 2024, the Company had $117,107,000 of cash and marketable securities compared to $101,283,000 at September 30, 2023. Net working capital was $176,523,000 at March 31, 2024. The Co ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD: From to Commission File Number: 001-11703 GENCOR INDUSTRIES, INC. (State or other jurisdiction of incorporation or organization) Delaware 59-0933147 (IR ...

Financial Performance - Net revenue for the year ended September 30, 2023, was $105,075,000, a 1.5% increase from $103,479,000 in 2022[152]. - Gross profit increased to $29,037,000 in 2023, compared to $20,544,000 in 2022, reflecting a significant improvement in profitability[152]. - Operating income rose to $13,425,000 in 2023, up from $4,167,000 in the previous year, indicating enhanced operational efficiency[152]. - Net income for 2023 was $14,666,000, a substantial recovery from a net loss of $372,000 in 2022[152]. - Basic and diluted earnings per share for 2023 were both $1.00, compared to a loss of $0.03 per share in 2022[163]. - Cash flows provided by operating activities were $10,196,000 in 2023, a turnaround from cash used in operations of $9,135,000 in 2022[156]. Assets and Liabilities - As of September 30, 2023, the Company reported total assets of $195,748,000, an increase from $179,313,000 in 2022, reflecting a growth of approximately 9.5%[150]. - Total current liabilities increased to $14,165,000 from $12,390,000, reflecting a rise of approximately 14.3%[150]. - Shareholders' equity rose to $181,583,000 from $166,917,000, an increase of about 8.8%[150]. - The balance of accrued expenses increased significantly to $3,753,000 in 2023 from $1,885,000 in 2022, a rise of 99%[206]. - The provision for doubtful accounts increased to $290,000 in 2023 from $194,000 in 2022, a growth of 49.5%[191]. Inventory and Supply Chain - Inventories increased significantly to $71,527,000 from $55,815,000, marking a rise of approximately 28.2%[150]. - The allowance for slow-moving and obsolete inventories was estimated at approximately $9,813,000 as of September 30, 2023[141]. - The allowance for slow-moving and obsolete inventories rose to $9,813,000 in 2023 from $8,192,000 in 2022, an increase of 19.8%[203]. - The principal raw material used is carbon steel, and any supply interruptions or price increases could materially affect production and results[51]. Customer Concentration - One customer accounted for 14.8% of net revenue for the year ended September 30, 2023, while no customer accounted for 10% or more of net revenue in the previous year[40]. - Revenue from custom equipment sales contracts for the year ended September 30, 2023, was approximately $34,150,000[145]. - Equipment sales recognized over time decreased to $34,150,000 in 2023 from $37,572,000 in 2022, a decline of 6.4%[181]. Employment and Workforce - The Company has a total of 314 full-time and 3 part-time employees as of September 30, 2023[33]. - The Company faces challenges in hiring skilled production workers, which could adversely impact its financial objectives[76]. - The Company relies on key personnel for its success, and the loss of such employees could adversely affect operations[46]. Environmental Compliance - The Company is subject to various federal, state, local, and foreign environmental laws and regulations, and believes it is in compliance with all applicable regulations[32]. - The Company is subject to extensive environmental laws and regulations, which could lead to significant compliance costs in the future[50]. Competition and Market Conditions - Competition in the industry may reduce revenue and market share, as competitors may have greater resources[64]. - Global economic instability, including inflation and geopolitical issues, may adversely impact the Company's business and financial condition[69]. Acquisitions and Business Strategy - The Company has engaged in a series of acquisitions since 1985 to expand its business, including the acquisition of asphalt paver assets from Volvo in 2020[16]. - The Company acquired Blaw-Knox paver assets on October 1, 2020, with ongoing integration challenges that may affect future performance[73]. Taxation - The company's effective income tax rate for 2023 was 21.9%, compared to a negative rate of 78.0% in 2022[207]. - The Company accrued unrecognized tax benefits (UTBs) of $176,000 in 2023, up from $131,000 in 2022[210]. - Total income taxes paid in fiscal 2023 were $2,300,000, compared to $2,839,000 in fiscal 2022[208]. Cash and Investments - The Company recorded cash and cash equivalents of $17,031,000, up from $9,581,000 in the previous year, representing an increase of approximately 77.5%[150]. - The company maintained a strong cash position with cash and cash equivalents increasing to $17,031,000 at the end of 2023, up from $9,581,000 at the end of 2022[156]. - The Company reported marketable securities valued at $84,252,000, a decrease from $89,300,000 in 2022, indicating a decline of about 5.8%[150]. - Total assets measured at fair value as of September 30, 2023, amounted to $84,252,000, with significant holdings in government securities and corporate bonds[168]. - The company reported net unrealized gains of $4,316,000 on trading securities still held as of September 30, 2023[168]. Capital Expenditures - Capital expenditures for 2023 were $2,746,000, down from $4,516,000 in 2022, indicating a more conservative investment approach[156].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (IRS Employer Identification No.) 5201 North Orange Blossom Trail, Orlando, Florida 32810 (Address of principal executive offices) (Zip Code) (407) 290-6000 (Registrant's telephone nu ...

Financial Performance - Net revenue for the quarter ended March 31, 2023, was $30,501,000, slightly down from $30,654,000 in the same quarter of 2022, while net revenue for the six months ended March 31, 2023, increased to $56,327,000 from $50,760,000, a growth of about 11%[16] - Gross profit for the quarter ended March 31, 2023, was $9,097,000, compared to $6,192,000 in the same quarter of 2022, reflecting a significant increase of approximately 47%[16] - Operating income for the quarter ended March 31, 2023, was $5,161,000, up from $1,908,000 in the same quarter of 2022, indicating a growth of about 171%[16] - Net income for the quarter ended March 31, 2023, was $4,873,000, compared to $439,000 in the same quarter of 2022, representing an increase of approximately 1,110%[16] - For the six months ended March 31, 2023, net sales increased to $56,327,000 from $50,760,000 for the same period in 2022, an increase of $5,567,000[82] - Net income for the six months ended March 31, 2023, was $8,349,000, or $0.57 basic and diluted earnings per share, versus $165,000, or $0.01 basic and diluted earnings per share for the same period in 2022[86] Cash and Assets - Cash and cash equivalents increased to $18,462,000 as of March 31, 2023, from $9,581,000 at September 30, 2022, marking an increase of approximately 93%[13] - As of March 31, 2023, the total fair value of the company's marketable securities was $87,851,000, with Level 1 measurements accounting for $51,076,000 and Level 2 measurements for $36,775,000[32] - The Company had no long-term or short-term debt outstanding as of March 31, 2023, indicating a strong balance sheet[88] - The maximum amount that can be drawn under the irrevocable standby letter of credit is $150,000, which expires in April 2024[89] Liabilities and Equity - Total current liabilities rose to $20,083,000 as of March 31, 2023, compared to $12,390,000 at September 30, 2022, an increase of about 62%[13] - Retained earnings increased to $161,210,000 as of March 31, 2023, up from $152,861,000 at September 30, 2022, reflecting a growth of approximately 5.5%[13] Inventory and Receivables - The company's net inventories increased to $63,803,000 as of March 31, 2023, up from $55,815,000 as of September 30, 2022[36] - Accounts receivable increased by $4,297,000, primarily due to increased paver sales and the timing of parts sales collections[91] - Slow-moving and obsolete inventory allowances were $8,573,000 at March 31, 2023, compared to $8,192,000 at September 30, 2022[36] Customer and Contract Information - Customer deposits related to contracts with customers increased to $12,323,000 as of March 31, 2023, from $5,864,000 at September 30, 2022[53] - Two customers accounted for 12.7% and 11.6% of net revenues during the quarter ended March 31, 2023[40] - The Company's backlog was $37.4 million at March 31, 2023, down from $44.9 million at March 31, 2022, indicating a decrease of approximately 16.6% year-over-year[91] Cash Flow - The company experienced a net increase in cash flows from operating activities to $10,055,000 for the six months ended March 31, 2023, compared to $1,045,000 in the same period of 2022[21] - Cash flows provided by operating activities during the six months ended March 31, 2023, were $10,055,000, reflecting operational efficiency[91] - Cash flows used in investing activities for the six months ended March 31, 2023, were $1,174,000, primarily for capital expenditures related to manufacturing equipment[92] Tax and Non-Operating Income - The effective income tax rates for the quarters ended March 31, 2023, and March 31, 2022, were 24.1% and 24.2%, respectively[81] - The Company had net non-operating income of $1,257,000 for the quarter ended March 31, 2023, compared to a net non-operating expense of $(1,329,000) for the same quarter in 2022[80] Earnings Per Share - The company reported a basic income per common share of $0.33 for the quarter ended March 31, 2023, compared to $0.03 in the same quarter of 2022, indicating a significant increase[16] - Basic net income per share for the quarter ended March 31, 2023, was $0.33, compared to $0.03 for the same quarter in 2022[39]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD: From to Commission File Number: 001-11703 GENCOR INDUSTRIES, INC. Delaware 59-0933147 (State or other jurisdiction of incorporation or organization) (IR ...