Gentex(GNTX)

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Gentex(GNTX) - 2024 Q1 - Quarterly Report
2024-05-03 14:17
Part I - Financial Information [Unaudited Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The company's financial position strengthened in Q1 2024, with total assets increasing to $2.71 billion. Net sales grew 7% year-over-year to $590.2 million, driving net income up to $108.2 million. Cash flow from operations remained strong at $129.9 million. The financial statements reflect steady growth, supported by increased automotive product sales and effective cost management [Unaudited Condensed Consolidated Balance Sheets](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $249.0 M | $226.4 M | | Inventories | $436.5 M | $402.5 M | | Total current assets | $1,072.6 M | $997.7 M | | Total assets | $2,713.2 M | $2,611.4 M | | **Liabilities & Equity** | | | | Total current liabilities | $304.4 M | $271.6 M | | Total liabilities | $336.9 M | $298.9 M | | Total shareholders' investment | $2,376.4 M | $2,312.5 M | [Unaudited Condensed Consolidated Statements of Income](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Income) Q1 2024 vs Q1 2023 Income Statement | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $590.2 M | $550.8 M | +7.2% | | Gross Profit | $202.2 M | $174.7 M | +15.7% | | Income from Operations | $129.3 M | $113.3 M | +14.1% | | Net Income | $108.2 M | $97.6 M | +10.9% | | Diluted EPS | $0.47 | $0.42 | +11.9% | | Cash Dividends Declared per Share | $0.120 | $0.120 | 0% | [Unaudited Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) - Comprehensive income for Q1 2024 was $107.3 million, compared to $99.5 million in Q1 2023. The change was driven by higher net income, slightly offset by a net other comprehensive loss of $0.9 million, primarily from foreign currency translation adjustments[15](index=15&type=chunk) [Unaudited Condensed Consolidated Statements of Shareholders' Investment](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Investment) - During Q1 2024, the company repurchased **1.2 million shares** of common stock for $43.0 million and declared dividends of $27.7 million ($0.12 per share). Total shareholders' investment increased from $2.31 billion at the end of 2023 to $2.38 billion as of March 31, 2024, driven by net income of $108.2 million[18](index=18&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 vs Q1 2023 Cash Flow Summary | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $129.9 M | $120.9 M | | Net cash used for investing activities | ($55.1 M) | ($72.4 M) | | Net cash used for financing activities | ($52.2 M) | ($47.8 M) | | **Net increase in cash and cash equivalents** | **$22.6 M** | **$0.7 M** | - Financing activities in Q1 2024 included $41.2 million for common stock repurchases and $27.8 million for dividend payments[20](index=20&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) - Goodwill remained unchanged at $340.1 million as of March 31, 2024. No impairment indicators were observed during the quarter[24](index=24&type=chunk)[25](index=25&type=chunk) - The company's automotive segment continues to be the primary revenue driver, accounting for **97.9%** of total net sales in Q1 2024[69](index=69&type=chunk)[70](index=70&type=chunk) Revenue by Segment (Q1 2024 vs Q1 2023) | Segment | Q1 2024 Revenue | Q1 2023 Revenue | Change | | :--- | :--- | :--- | :--- | | Automotive Products | $577.6 M | $537.4 M | +7.5% | | Other | $12.6 M | $13.3 M | -5.3% | | **Total** | **$590.2 M** | **$550.8 M** | **+7.2%** | Automotive Revenue by Geography (Q1 2024 vs Q1 2023) | Region | Q1 2024 Revenue | Q1 2023 Revenue | Change | | :--- | :--- | :--- | :--- | | U.S. | $165.1 M | $170.8 M | -3.3% | | Japan | $89.0 M | $72.2 M | +23.3% | | Germany | $75.7 M | $80.6 M | -6.1% | | Korea | $53.7 M | $23.5 M | +128.7% | - In November 2023, the company acquired certain technology assets from eSight for approximately $18.9 million in cash and other considerations. These assets, which provide low-vision smart glasses, are part of the 'Other' segment and contributed less than $0.1 million in revenue in Q1 2024[76](index=76&type=chunk)[77](index=77&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In Q1 2024, net sales rose **7%** to $590.2 million, driven by a **7%** increase in automotive sales despite a **2%** decrease in total mirror unit shipments, indicating a richer product mix. Gross margin improved significantly to **34.3%** from **31.7%** YoY, attributed to raw material cost reductions and manufacturing efficiencies. The company maintains a strong financial position, funding capital expenditures and share repurchases with operating cash flow. Guidance for 2024 is reaffirmed, with revenue projected at $2.45-$2.55 billion, and the 2025 revenue forecast is maintained at $2.65-$2.75 billion [Results of Operations (Q1 2024 vs Q1 2023)](index=23&type=section&id=Results%20of%20Operations%20(Q1%202024%20vs%20Q1%202023)) - Net sales increased by **7%** ($39.5 million) in Q1 2024 compared to Q1 2023, primarily driven by a **7%** increase in Automotive net sales[79](index=79&type=chunk)[80](index=80&type=chunk) - Gross profit margin increased from **31.7%** in Q1 2023 to **34.3%** in Q1 2024. This was primarily due to raw material cost reductions (100-150 basis points improvement) and manufacturing efficiencies (100-150 basis points improvement)[83](index=83&type=chunk) - Total operating expenses increased by **19%** ($11.4 million) YoY, mainly due to higher staffing costs and increased engineering, research, and development expenses[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk) Auto-Dimming Mirror Unit Shipments (in thousands) | Mirror Type | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Interior Mirrors | 7,816 | 8,197 | (5)% | | Total Exterior Mirrors | 4,655 | 4,519 | 3% | | **Total Mirror Units** | **12,471** | **12,717** | **(2)%** | [Financial Condition and Liquidity](index=25&type=section&id=Financial%20Condition%20and%20Liquidity) - Cash and cash equivalents increased by $22.6 million during the quarter to $249.0 million, primarily from operating activities, offset by capital expenditures, investments, dividends, and share repurchases[89](index=89&type=chunk) - Inventories increased by $34.0 million to $436.5 million to support forecasted customer demand[92](index=92&type=chunk) - Capital expenditures were $31.9 million in Q1 2024. The company is funding several expansion projects with cash on hand, including a distribution center expansion ($40-$45M), a manufacturing facility expansion ($20-$30M), and an on-site daycare facility ($12-$15M)[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk) - The company has an unsecured revolving credit facility of $250.0 million, which had no outstanding balance as of March 31, 2024[64](index=64&type=chunk) [Business and Product Update](index=26&type=section&id=Business%20and%20Product%20Update) - The company had 31 net new product launches in Q1 2024, with over **60%** being advanced features like HomeLink®, Full Display Mirror®, and outside auto-dimming mirrors[100](index=100&type=chunk) - The Full Display Mirror® is now shipping to sixteen different automaker customers[101](index=101&type=chunk) - The Integrated Toll Module (ITM®) is currently shipping on 11 Audi platforms and to Mercedes on the EQS model[106](index=106&type=chunk) - The company is providing dimmable aircraft windows for the Boeing 787 and 777X, and began production for Airbus aircraft in 2021[107](index=107&type=chunk) - The company acquired technology assets from eSight in late 2023 for advanced low-vision smart glasses, expanding its medical product portfolio[110](index=110&type=chunk) [Outlook](index=31&type=section&id=Outlook) - The company reaffirmed its full-year 2024 guidance and its revenue forecast for 2025[116](index=116&type=chunk)[119](index=119&type=chunk) 2024 Full-Year Guidance | Metric | Guidance Range | | :--- | :--- | | Revenue | $2.45 - $2.55 billion | | Gross Margin | 34% - 35% | | Operating Expenses | $295 - $305 million | | Capital Expenditures | $225 - $250 million | | Annual Tax Rate | 16% - 18% | - Calendar year 2025 revenue is still expected to be approximately $2.65 to $2.75 billion[119](index=119&type=chunk) Light Vehicle Production Forecast (S&P Global Mobility) | Region | 2024 % Change (vs 2023) | 2025 % Change (vs 2024) | | :--- | :--- | :--- | | North America | 2% | 3% | | Europe | (2)% | —% | | Japan and Korea | (5)% | (3)% | | China | 2% | 4% | | **Total** | **—%** | **2%** | [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks including foreign exchange rates, interest rate fluctuations, and general economic conditions. Fluctuating interest rates could impact financial performance through investment values and affect demand for light vehicles. The company's global operations, particularly in automotive manufacturing, are sensitive to uncertain economic conditions, inflation, and supply chain disruptions - The company is subject to market risks from foreign exchange rates, interest rate changes, and global economic conditions that can impact product demand[122](index=122&type=chunk)[123](index=123&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of March 31, 2024, and concluded they are effective. No material changes were made to the internal control over financial reporting during the quarter - As of March 31, 2024, the company's management, including the CEO and CFO, concluded that disclosure controls and procedures are effective[124](index=124&type=chunk) - There were no changes in internal control over financial reporting during Q1 2024 that materially affected, or are reasonably likely to materially affect, these controls[125](index=125&type=chunk) Part II - Other Information [Risk Factors](index=34&type=page&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2023 - No material changes to risk factors from the 2023 Form 10-K were reported[130](index=130&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the first quarter of 2024, the company repurchased **1,200,903 shares** of its common stock at a weighted average price of $35.84 per share, for a total cost of approximately $43 million. As of March 31, 2024, **14.7 million shares** remain authorized for repurchase under the existing plan Q1 2024 Share Repurchase Activity | Period | Total Shares Purchased | Weighted Average Price Paid Per Share | | :--- | :--- | :--- | | January 2024 | 90,006 | $33.81 | | February 2024 | 510,247 | $35.31 | | March 2024 | 600,650 | $36.59 | | **Q1 2024 Total** | **1,200,903** | **$35.84** | - As of March 31, 2024, **14.7 million shares** remained available for repurchase under the company's publicly announced plan[132](index=132&type=chunk) [Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section references the Exhibit Index on page 36, which lists the certifications and XBRL data files submitted with the report
Gentex (GNTX) Q1 Earnings Match Estimates, Increase Y/Y
Zacks Investment Research· 2024-05-01 17:21
Gentex Corporation’s (GNTX) first-quarter 2024 earnings per share (EPS) of 47 cents came in line with the Zacks Consensus Estimate and increased 12% year over year.This Zeeland-based automotive products supplier reported net sales of $590.2 million, which missed the Zacks Consensus Estimate of $600 million but increased 7% from the year-ago period. The company recorded a gross margin of 34.3%, reflecting an increase of 260 basis points from the first quarter of 2023, due to lower raw material costs, higher ...
Gentex(GNTX) - 2024 Q1 - Earnings Call Transcript
2024-04-26 19:08
Financial Data and Key Metrics Changes - Revenue for the first quarter of 2024 increased by 7% year-over-year to $590.2 million, despite a 3% decline in light vehicle production in primary markets [40][41] - Gross margin improved to 34.3%, an increase of 260 basis points compared to the same quarter last year, driven by raw material cost reductions and manufacturing efficiencies [10][11] - Operating income rose by 14% to $129.3 million, while net income increased by 11% to $108.2 million, resulting in earnings per diluted share of $0.47, up 12% [11][12] Business Line Data and Key Metrics Changes - Automotive net sales increased by 7% to $577.6 million, with a 2% decrease in auto-dimming unit shipments [40][141] - The company launched 31 net new nameplates for interior and exterior auto-dimming mirrors and electronic features, marking the highest first-quarter launch rate since 2015 [143] - Advanced features such as full display mirrors, HomeLink, and outside auto-dimming mirrors contributed significantly to revenue growth [143] Market Data and Key Metrics Changes - Light vehicle production in primary markets is forecasted to be flat for 2024, with a slight decline of 1% expected when excluding China [124][47] - The company anticipates a 3% increase in light vehicle production for the second quarter of 2024 compared to the same quarter last year [16] - The company expects calendar year 2025 revenue to be approximately $2.65 billion to $2.75 billion, indicating strong growth potential [17] Company Strategy and Development Direction - The company is focused on expanding product content and introducing new technologies to reduce dependence on light vehicle production [112][58] - Investments in new products and technologies, along with cost optimization initiatives, are critical for margin recovery and stabilization [15][48] - The company is exploring opportunities in the Chinese market and supporting domestic OEMs in their international expansion efforts [82][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue targets for 2024 despite economic uncertainties and potential interest rate risks [20][47] - The company is optimistic about its margin recovery plan and expects to reach a gross margin range of 35%-36% by the end of 2024 [48][96] - Management noted that while there are challenges in the automotive sector, the focus on advanced features and technology will help mitigate risks associated with light vehicle production fluctuations [80][112] Other Important Information - Operating expenses for the first quarter were $72.9 million, up from $61.5 million in the same period last year, primarily due to increased engineering staffing and professional fees [5][113] - The company repurchased 1.2 million shares of common stock at an average price of $35.84 during the first quarter [12] - Cash flow from operations was $129.9 million, compared to $120.9 million in the first quarter of the previous year [13] Q&A Session Summary Question: Updates on full-year FDM volumes - Management reiterated confidence in achieving initial forecasts for FDM volumes, despite some unexpected pullbacks from OEMs [50][56] Question: Gross margin expectations - Management expects to reach the midpoint of the gross margin range by the end of the year, with improvements driven by supplier price reductions and manufacturing efficiencies [26][27] Question: CapEx and timing issues - CapEx for the first quarter was lighter than anticipated due to timing issues, with expectations for heavier spending in the second half of the year [61][137] Question: Opportunities in China - Management highlighted the growing market in China and the potential for supporting domestic OEMs in their international expansion [34][82] Question: Competitive dynamics in advanced features - The company is focused on executing product launches in driver monitoring and cabin monitoring technologies, which are expected to drive future growth [91][93]
Compared to Estimates, Gentex (GNTX) Q1 Earnings: A Look at Key Metrics
Zacks Investment Research· 2024-04-26 14:36
Gentex (GNTX) reported $590.23 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 7.2%. EPS of $0.47 for the same period compares to $0.42 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $600.48 million, representing a surprise of -1.71%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.47.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they ...
Gentex (GNTX) Q1 Earnings Meet Estimates
Zacks Investment Research· 2024-04-26 14:11
Gentex (GNTX) came out with quarterly earnings of $0.47 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this maker of automatic-dimming rearview mirrors and other products would post earnings of $0.44 per share when it actually produced earnings of $0.50, delivering a surprise of 13.64%.Over the last four quarters, the company has surpassed consensus EPS estim ...
Gentex(GNTX) - 2024 Q1 - Quarterly Results
2024-04-26 12:00
Exhibit 99.1 GENTEX REPORTS FIRST QUARTER 2024 FINANCIAL RESULTS ZEELAND, MI -- (GLOBE NEWSWIRE - April 26, 2024) - Gentex Corporation (NASDAQ: GNTX), a leading supplier of digital vision, connected car, dimmable glass and fire protection technologies, today reported financial results for the three months ended March 31, 2024. 1st Quarter 2024 Summary For the first quarter of 2024, the Company reported net sales of $590.2 million, compared to net sales of $550.8 million in the first quarter of 2023, a 7% qu ...
Gentex Reports First Quarter 2024 Financial Results
Newsfilter· 2024-04-26 12:00
ZEELAND, Mich., April 26, 2024 (GLOBE NEWSWIRE) -- Gentex Corporation (NASDAQ: GNTX), a leading supplier of digital vision, connected car, dimmable glass and fire protection technologies, today reported financial results for the three months ended March 31, 2024. 1st Quarter 2024 Summary Net sales of $590.2 million, a new quarterly sales record, and a 7% increase compared to the first quarter of 2023Gross profit margin of 34.3%, an increase of 260 basis points from the first quarter of 2023Income from opera ...
Here's Why Gentex (GNTX) is a Strong Value Stock
Zacks Investment Research· 2024-04-25 14:46
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.It also includes access to the Zacks Style Scores.What are the Zacks Style Scores?Developed along ...
Why Gentex (GNTX) Might Surprise This Earnings Season
Zacks Investment Research· 2024-04-25 14:02
Investors are always looking for stocks that are poised to beat at earnings season and Gentex Corporation (GNTX) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because Gentex is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good ind ...
Ahead of Gentex (GNTX) Q1 Earnings: Get Ready With Wall Street Estimates for Key Metrics
Zacks Investment Research· 2024-04-23 14:21
Analysts on Wall Street project that Gentex (GNTX) will announce quarterly earnings of $0.47 per share in its forthcoming report, representing an increase of 11.9% year over year. Revenues are projected to reach $600.01 million, increasing 8.9% from the same quarter last year.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Before a company reveals its ...