
Core Viewpoint - Gencor Industries, Inc. reported a decrease in net revenue and operating income for the quarter ended March 31, 2025, compared to the same period in 2024, primarily due to lower revenues and increased material costs, although net other income showed improvement [1][3][4]. Financial Performance - Net revenue for the quarter ended March 31, 2025, was $38.204 million, a decrease of 6.1% from $40.676 million in the same quarter of 2024 [1]. - Gross profit margin was 29.7% for the quarter ended March 31, 2025, down from 30.3% in the same quarter of 2024, attributed to higher material costs [1]. - Operating income decreased to $6.480 million for the quarter ended March 31, 2025, compared to $7.072 million for the same quarter in 2024 [3]. - Net income for the quarter ended March 31, 2025, was $6.095 million, or $0.42 per share, compared to $6.222 million, or $0.42 per share, for the same quarter in 2024 [5]. Expense Management - Product engineering and development expenses decreased by $212,000 to $681,000 for the quarter ended March 31, 2025, due to reduced headcount [2]. - Selling, general and administrative expenses decreased to $4.192 million for the quarter ended March 31, 2025, from $4.357 million in the same quarter of 2024, due to lower commissions on reduced revenues [2]. Other Income and Taxation - Net other income for the quarter ended March 31, 2025, was $1.756 million, up from $1.008 million in the same quarter of 2024, with realized and unrealized gains on marketable securities contributing $598,000 compared to $205,000 in the prior year [4]. - The effective income tax rate increased to 26.0% for the quarter ended March 31, 2025, from 23.0% in the same quarter of 2024 [5]. Six-Month Performance - For the six months ended March 31, 2025, net revenue was $69.620 million, compared to $66.694 million for the same period in 2024 [6]. - Net income for the six months ended March 31, 2025, was $9.912 million, or $0.68 per share, down from $10.548 million, or $0.72 per share, for the same period in 2024 [6]. Balance Sheet Highlights - As of March 31, 2025, the company had $143.7 million in cash and cash equivalents and marketable securities, an increase from $115.4 million at September 30, 2024 [7]. - Net working capital was $193.2 million at March 31, 2025, compared to $182.2 million at September 30, 2024 [7]. - The company's backlog decreased to $27.8 million at March 31, 2025, from $50.4 million at the same time in 2024 [7]. Management Commentary - The President of Gencor expressed satisfaction with the overall performance, highlighting a significant increase in revenues for the first quarter, despite a slight decline in the second quarter [8].