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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549


FORM 8-K


CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934


Date of Report: April 21, 2017


GENTEX CORPORATION
(Exact name of registrant as specified in its charter)

Michigan
0-10235
38-2030505
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
 
 
 
600 North Centennial Street
Zeeland, Michigan
 

49464
(Address of principal executive offices)
 
(Zip Code)

Registrant's telephone number, including area code: (616) 772-1800
_____________________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company    o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    o    





Section 2.
Financial Information

Item 2.02
Results of Operations and Financial Condition.

(a)
On April 21, 2017, Gentex Corporation issued a news release announcing financial results for the first quarter ended March 31, 2017. A copy of the news release is attached as Exhibit 99.1 to the Form 8-K.

The information in this Form 8-K and the attached Exhibit shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

Section 9.    Financial Statements and Exhibits

Item 9.01    Financial Statements and Exhibits.

(d)    Exhibit
    
99.1 – News Release Dated April 21, 2017.


SIGNATURE


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: April 21, 2017            
GENTEX CORPORATION
(Registrant)                


By    /s/ Kevin C. Nash
Kevin C. Nash
Its Vice President - Accounting and Chief Accounting Officer    
    






EXHIBIT INDEX


99.1    News Release Dated April 21, 2017



Exhibit
Exhibit 99.1

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=11538729&doc=3

GENTEX REPORTS FIRST QUARTER 2017 FINANCIAL RESULTS
ZEELAND, MI -- (GLOBE NEWSWIRE - April 21, 2017) - Gentex Corporation (NASDAQ: GNTX) the Zeeland, Michigan-based manufacturer of automotive automatic-dimming rearview mirrors, automotive electronics, dimmable aircraft windows, and fire protection products, today reported financial results for the three months ended March 31, 2017.

1st Quarter 2017 Quarter over Quarter Highlights

Net sales growth of 12% compared to 3% growth in relevant light vehicle production
Income from Operations increased by 11%
Discrete item tax reductions of $5.6 million
Net Income increased by 22%
Earnings per Diluted Share increased by 18% to $0.33 per diluted share
1.5 million shares repurchased during the quarter
$41.9 million of debt repaid during the quarter
For the first quarter of 2017, the Company is pleased to report net sales of $453.5 million, which was an increase of 12% compared to net sales of $405.6 million in the first quarter of 2016. The 12% net sales growth was driven by a 12% quarter over quarter increase in auto-dimming mirror unit shipments while overall automotive light vehicle production, in the Company's primary regions, increased by approximately 3% for the first quarter of 2017 when compared with the same quarter in 2016.
The gross profit margin in the first quarter of 2017 was 38.8%, compared with a gross profit margin of 39.1% in the first quarter of 2016. The quarter over quarter net decrease in the gross profit margin was the result of annual customer price reductions, which was partially offset by purchasing cost reductions and favorable product mix.
Income from operations for the first quarter of 2017 increased 11% to $134.4 million when compared to income from operations of $120.8 million for the first quarter of 2016.
Other income increased to $0.4 million in the first quarter of 2017 compared to a loss of $1.3 million in the first quarter of 2016, due to an increase in investment income and realized gains on the sale of equity investments during the most recently completed quarter as compared to the same quarter last year.



Exhibit 99.1

Net income for the first quarter of 2017 increased 22% to $97.6 million compared with net income of $80.3 million in the first quarter of 2016, driven by the 12% revenue growth, as well as favorable discrete items that impacted the Company's tax provision in the amount of $5.6 million. The favorable discrete tax items included $3.8 million related to a change in tax method and $1.8 million related to newly adopted accounting guidance which impacted the treatment of share-based compensation.
Earnings per diluted share in the first quarter of 2017 increased 18% to $0.33, compared with earnings per diluted share of $0.28 in the first quarter of 2016. The increase was primarily driven by the increase in net income on a quarter over quarter basis.
Automotive net sales in the first quarter of 2017 were $445.6 million, an increase of 13% compared with automotive net sales of $394.0 million in the first quarter of 2016, driven by a 12% increase in auto-dimming mirror unit shipments on a quarter over quarter basis.
Other net sales in the first quarter of 2017, which includes dimmable aircraft windows and fire protection products, were $7.9 million, compared to other sales of $11.6 million in the first quarter of 2016.
Share Repurchases
During the first quarter of 2017, the Company repurchased 1.5 million shares of its common stock. As of March 31, 2017, the Company has approximately 5.3 million shares remaining available for repurchase pursuant to its previously announced share repurchase plan. The Company intends to continue to repurchase additional shares of its common stock in the future depending on macroeconomic issues, market trends and other factors that the Company deems appropriate.
Debt Repayment
During the first quarter of 2017, the Company paid down $40 million on its revolver loan in addition to its normally scheduled principal repayment on the Company's term loan, which in combination was $41.9 million in debt repayment during the quarter. The Company intends to continue to pay additional principal toward its loans in the future, depending on macroeconomic trends, capital expenditure spending, cash and money market interest rates, the amount of available free cash and other factors that it deems appropriate for timing and amounts of incremental debt repayments.





Exhibit 99.1

Future Estimates
The Company’s forecasts for light vehicle production for the 2nd and 3rd quarters of calendar year 2017 and full year 2017 are based on the IHS Automotive April 2017 forecast for light vehicle production in North America, Europe, Japan and Korea.
Light Vehicle Production (per IHS Automotive April light vehicle production forecast)
(in Millions)
Region
2Q 2017
2Q 2016
% Change
 
3Q 2017
3Q 2016
% Change
 
Calendar Year 2017
Calendar Year 2016
% Change
North America
4.60

4.60

 %
 
4.19

4.41

(5
)%
 
17.55

17.83

(2
)%
Europe
5.63

5.90

(5
)%
 
4.81

4.75

1
 %
 
21.89

21.54

2
 %
Japan and Korea
3.23

3.10

4
 %
 
3.32

3.01

10
 %
 
13.31

12.91

3
 %
Total Light Vehicle Production
13.46

13.60

(1
)%
 
12.32

12.17

1
 %
 
52.75

52.28

1
 %
Based on the April 2017 IHS light vehicle production forecast, current forecasted product mix and expense growth estimates, the Company is making no changes to its previous estimates for calendar year 2017 or 2018. However, based on weakening light vehicle production estimates in Europe for the 2nd quarter and in North America in the 3rd quarter, the Company expects its revenue estimates for the 2nd and 3rd quarter of 2017 to be at or around the lower end of its annual guidance range but expects the 4th quarter to return to the higher end of its annual guidance range.

Safe Harbor for Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements contained in this communication that are not purely historical are forward-looking statements. Forward-looking statements give the Company’s current expectations or forecasts of future events. These forward-looking statements generally can be identified by the use of words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “goal”, “hope”, “may”, “plan”, “project”, “will”, and variations of such words and similar expressions. Such statements are subject to risks and uncertainties that are often difficult to predict and beyond the Company’s control, and could cause the Company’s results to differ materially from those described. These risks and uncertainties include, without limitation: changes in general industry or regional market conditions; changes in consumer and customer preferences for our products (such as cameras replacing mirrors and/or autonomous driving); our ability to be awarded new business; continued uncertainty in pricing negotiations



Exhibit 99.1

with customers; loss of business from increased competition; changes in strategic relationships; customer bankruptcies or divestiture of customer brands; fluctuation in vehicle production schedules; changes in product mix; raw material shortages; higher raw material, fuel, energy and other costs; unfavorable fluctuations in currencies or interest rates in the regions in which we operate; costs or difficulties related to the integration and/or ability to maximize the value of any new or acquired technologies and businesses; changes in regulatory conditions; warranty and recall claims and other litigation and customer reactions thereto; possible adverse results of pending or future litigation or infringement claims; changes in tax laws; import and export duty and tariff rates in or with the countries with which we conduct business; and negative impact of any governmental investigations and associated litigations including securities litigations relating to the conduct of our business. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law or the rules of the NASDAQ Global Select Market. Accordingly, any forward-looking statement should be read in conjunction with the additional information about risks and uncertainties identified under the heading “Risk Factors” in the Company’s latest Form 10-K and Form 10-Q filed with the SEC.
First Quarter Conference Call
A conference call related to this news release will be simulcast live on the Internet beginning at 9:30 a.m. ET today, April 21, 2017. The dial-in number to participate in the call is 844-389-8658, passcode 3165193. Participants may listen to the call via audio streaming at www.gentex.com or by visiting http://edge.media-server.com/m/p/xv7n7hx3. A webcast replay will be available approximately 24 hours after the conclusion of the call at http://ir.gentex.com/events-and-presentations/upcoming-past-events.
.








Exhibit 99.1


About The Company
Founded in 1974, Gentex Corporation (The NASDAQ Global Select Market: GNTX) is a supplier of automatic-dimming rearview mirrors and electronics to the automotive industry, dimmable aircraft windows for aviation markets, and fire protection products to the fire protection market. Visit the Company’s web site at www.gentex.com.
Contact Information:
Gentex Investor & Media Contact
Josh O'Berski
(616)772-1590 x5814



Exhibit 99.1


GENTEX CORPORATION
AUTO-DIMMING MIRROR SHIPMENTS
(Thousands)
 
Three Months Ended March 31,
 
2017
 
2016
 
%
 Change
North American Interior Mirrors
2,359

 
2,260

 
4
%
North American Exterior Mirrors
916

 
864

 
6
%
Total North American Mirror Units
3,276

 
3,124

 
5
%
International Interior Mirrors
4,818

 
4,121

 
17
%
International Exterior Mirrors
1,826

 
1,582

 
15
%
Total International Mirror Units
6,643

 
5,703

 
16
%
Total Interior Mirrors
7,177

 
6,381

 
12
%
Total Exterior Mirrors
2,742

 
2,447

 
12
%
Total Auto-Dimming Mirror Units
9,919

 
8,827

 
12
%
Note: Percent change and amounts may not total due to rounding.




Exhibit 99.1

GENTEX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 
(Unaudited)
 
Three Months Ended March 31,
 
2017
 
2016
Net Sales
$
453,535,250

 
$
405,567,786

 
 
 
 
Cost of Goods Sold
277,734,465

 
246,876,998

Gross profit
175,800,785

 
158,690,788

 
 
 
 
Engineering, Research & Development
25,152,257

 
23,091,209

Selling, General & Administrative
16,221,408

 
14,750,589

Operating Expenses
41,373,665

 
37,841,798

 


 


Income from operations
134,427,120

 
120,848,990

 


 


Other Income (Expense)
437,784

 
(1,279,378
)
Income before Income Taxes
134,864,904

 
119,569,612

 
 
 


Provision for Income Taxes
37,308,163

 
39,289,618

 
 
 


Net Income
$
97,556,741

 
$
80,279,994

 
 
 
 
Earnings Per Share
 
 

Basic
$
0.34

 
$
0.28

Diluted
$
0.33

 
$
0.28

Weighted Average Shares
 
 

Basic
287,408,900

 
289,210,621

Diluted
291,479,838

 
291,316,353

 
 
 

Cash Dividends Declared per Share
$
0.090

 
$
0.085





Exhibit 99.1

GENTEX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
 
(Unaudited)
 
 
 
March 31, 2017
 
December 31, 2016
ASSETS
 
 
 
Cash and Cash Equivalents
$
559,645,625

 
$
546,477,075

Short-Term Investments
176,635,803

 
177,021,197

Accounts Receivable, net
249,457,918

 
211,591,745

Inventories
197,088,251

 
189,311,437

Other Current Assets
11,730,076

 
30,587,575

Total Current Assets
1,194,557,673

 
1,154,989,029

 
 
 
 
Plant and Equipment - Net
473,151,849

 
465,822,467

 
 
 
 
Goodwill
307,365,845

 
307,365,845

Long-Term Investments
61,512,162

 
49,894,363

Intangible Assets
303,450,000

 
308,275,000

Patents and Other Assets
23,255,137

 
23,273,129

Total Other Assets
695,583,144

 
688,808,337

 
 
 
 
Total Assets
$
2,363,292,666

 
$
2,309,619,833

 
 
 
 
LIABILITIES AND SHAREHOLDERS' INVESTMENT
 
 
 
Current Liabilities
$
274,355,864

 
$
149,857,979

Long-Term Debt
36,250,000

 
178,125,000

Deferred Income Taxes
77,915,264

 
71,212,620

Shareholders' Investment
1,974,771,538

 
1,910,424,234

Total Liabilities & Shareholders' Investment
$
2,363,292,666

 
$
2,309,619,833