Gencor Industries(GENC) - 2023 Q2 - Quarterly Report

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]