Gencor Releases Third Quarter Fiscal 2024 Results

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].