Gencor Industries(GENC) - 2025 Q3 - Quarterly Results

GENCOR First Quarter Fiscal 2025 Results Financial Performance Summary Gencor's Q1 FY2025 net revenue grew 20.7% to $31.4 million, but net income decreased to $3.8 million due to marketable securities losses Key Financial Metrics | Metric | Q1 FY2025 (ended Dec 31, 2024) | Q1 FY2024 (ended Dec 31, 2023) | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $31,416,000 | $26,018,000 | +20.7% | | Operating Income | $4,624,000 | $3,383,000 | +36.7% | | Net Income | $3,817,000 | $4,326,000 | -11.8% | | EPS (basic and diluted) | $0.26 | $0.30 | -13.3% | - Gross profit margin decreased from 29.0% to 27.6% year-over-year, attributed to a smaller contribution from higher-margin parts sales in the current quarter's revenue mix[1] - Net other income fell sharply to $534,000 from $2,235,000, primarily due to net realized and unrealized losses on marketable securities of ($455,000) compared to gains of $1,519,000 in the prior-year quarter[4] - Product engineering and development expenses decreased by $124,000 due to lower headcount, while SG&A expenses remained relatively flat[2] Financial Position and Backlog Gencor maintained a strong, debt-free balance sheet with $130.1 million in cash and securities, but backlog declined to $54.4 million Financial Position Summary | Financial Position | Dec 31, 2024 | Sep 30, 2024 | | :--- | :--- | :--- | | Cash, Cash Equivalents & Marketable Securities | $130.1 million | $115.4 million | | Net Working Capital | $186.5 million | $182.2 million | - The company had no short-term or long-term debt outstanding as of December 31, 2024[6] - The company's backlog was $54.4 million at December 31, 2024, a decrease from $61.3 million at December 31, 2023[7] Condensed Consolidated Financial Statements Unaudited statements detail Gencor's financial health, highlighting revenue growth, non-operating impacts, and increased assets and equity Condensed Consolidated Income Statements Condensed Consolidated Income Statements (in thousands, except per share data) | (In thousands, except per share data) | Q1 FY2025 | Q1 FY2024 | | :--- | :--- | :--- | | Net revenue | $31,416 | $26,018 | | Gross profit | $8,668 | $7,534 | | Operating income | $4,624 | $3,383 | | Total other income, net | $534 | $2,235 | | Income before income tax expense | $5,158 | $5,618 | | Net income | $3,817 | $4,326 | | Net income per common share | $0.26 | $0.30 | Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets (in thousands) | (In thousands) | Dec 31, 2024 | Sep 30, 2024 | | :--- | :--- | :--- | | Total current assets | $203,115 | $192,842 | | Cash and cash equivalents | $39,972 | $25,482 | | Marketable securities | $90,133 | $89,927 | | Total Assets | $218,150 | $208,121 | | Total current liabilities | $16,661 | $10,604 | | Total liabilities | $18,192 | $11,980 | | Total shareholders' equity | $199,958 | $196,141 | Caution Concerning Forward Looking Statements Forward-looking statements face significant risks from customer financial health, economic conditions, and geopolitical conflicts - Forward-looking statements are subject to change based on factors often beyond the company's control[12] - Key risk factors cited include: - Financial condition of customers - Economic and competitive environments - Demand for products - Impact of U.S. government tariffs - Geopolitical conflicts (Russia/Ukraine, Israel/Hamas) potentially disrupting supply chains and increasing costs[12] - The company directs investors to its Annual Report on Form 10-K for a more detailed discussion of risk factors[13]