Gencor Industries(US:GENC)2025-12-09 21:06Financial Performance - Gencor Industries, Inc. reported net revenue of $115,437,000 for the year ended September 30, 2025, an increase of 2% from $113,166,000 in 2024[168]. - Gross profit for the same period was $31,713,000, slightly up from $31,327,000, resulting in a gross margin of approximately 27.5%[168]. - Operating income increased to $14,018,000 in 2025, compared to $13,687,000 in 2024, reflecting a growth of 2.4%[168]. - Net income rose to $15,661,000, a 7.6% increase from $14,558,000 in the previous year, with net income per share increasing to $1.07 from $0.99[168]. - Net revenue for the year ended September 30, 2025, was $115,437,000, an increase of 2.0% from $113,166,000 in 2024[205]. Assets and Liabilities - Total assets as of September 30, 2025, were $222,596,000, up from $208,121,000 in 2024, marking a growth of 6.9%[166]. - Current assets increased to $206,541,000 in 2025, compared to $192,842,000 in 2024, representing a growth of 7.1%[166]. - The company reported total liabilities of $10,794,000, a decrease from $11,980,000 in 2024, indicating a reduction of 9.8%[166]. - Shareholders' equity increased to $211,802,000 in 2025, up from $196,141,000 in 2024, reflecting an increase of 8%[166]. - The total fair value of the Company's assets measured at fair value as of September 30, 2025, was $109,714,000, compared to $89,927,000 in 2024, marking an increase of 22%[193][195]. Inventory and Allowances - The Company has an estimated allowance for slow-moving and obsolete inventories of approximately $15.57 million as of September 30, 2025[146]. - The allowance for slow-moving and obsolete inventories increased to $15,569,000 in 2025 from $13,331,000 in 2024, indicating a rise of 16.7%[201]. - Net inventories decreased to $53,503,000 in 2025 from $63,762,000 in 2024, a reduction of 16.1%[229]. - The allowance for credit losses increased to $434,000 in 2025 from $390,000 in 2024, a rise of 11.3%[217]. Cash Flow and Taxation - Cash and cash equivalents at the end of the year were $26,587,000, compared to $25,482,000 at the end of 2024, showing a growth of 4.3%[172]. - The company experienced a net cash provided by operating activities of $3,068,000 in 2025, down from $9,291,000 in 2024, indicating a decrease of 67%[172]. - Total current income tax expense for 2025 was $5,091,000, slightly up from $5,053,000 in 2024[233]. - The effective income tax rate for fiscal 2025 was 22.5%, a decrease from 29.8% in fiscal 2024[239]. - Total income taxes paid in fiscal 2025 were $4,076,000, down from $7,860,000 in fiscal 2024[1]. Employment and Operations - The Company has 318 full-time employees as of September 30, 2025[34]. - The Company manufactures and sells asphalt plants and related equipment, with a focus on environmentally friendly process technology[15]. - The majority of orders for the Company's asphalt plants and pavers are typically received between October and February, with significant shipments occurring prior to June[16]. - The Company is engaged in product engineering and development to create more energy-efficient and environmentally friendly equipment[23]. - The Company believes it manufactures the highest quality equipment in the industry, focusing on performance reliability and after-the-sale technical support[27]. Market and Sales - The Company has been involved in a series of acquisitions since 1985, expanding its product lines and market presence[17]. - The Company’s products are marketed through Company-employed sales representatives and independent dealers[28]. - Equipment sales recognized over time increased to $50,980,000 in 2025 from $45,786,000 in 2024, representing an increase of 9.5%[205]. - Contract assets increased to $12,208,000 in 2025 from $9,339,000 in 2024, reflecting a growth of 30.1%[207]. - Accounts receivable related to contracts with customers for equipment sales decreased to $80,000 in 2025 from $163,000 in 2024, a decline of 51.0%[209]. Risk and Compliance - The Company maintains cash accounts in various domestic financial institutions, which may exceed federally insured limits, indicating a potential concentration of credit risk[198]. - The Company evaluates inventory for obsolescence annually, with adjustments made based on the age of inventory, including a 50% reduction for items three to four years old[200]. - The Company’s marketable securities include investments in cash and money funds, mutual funds, exchange-traded funds, corporate bonds, and government securities, exposing it to various market risks[198]. - The Company adopted ASU 2025-05 for estimating expected credit losses, which did not have a material impact on the consolidated financial statements[183]. - The Company is currently evaluating the impact of ASU 2023-09 on its consolidated financial statements and related disclosures, which may enhance transparency in income tax disclosures[179].