8-K


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 22, 2016


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)).





Section 2.
Financial Information

Item 2.02
Results of Operations and Financial Condition

(a)
On April 22, 2016, Gentex Corporation issued a news release announcing financial results for the third quarter ended March 31, 2016. 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 22, 2016.


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 22, 2016            
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 22, 2016



Exhibit
Exhibit 99.1


GENTEX REPORTS FIRST QUARTER 2016 FINANCIAL RESULTS
ZEELAND, MI -- (Marketwired - April 22, 2016) - 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, 2016.

1st Quarter 2016 Highlights

Revenue growth of 10% quarter over quarter
Gross Margin improved from 38.8% to 39.1% quarter over quarter
Operating Income increased by 12% quarter over quarter
Earnings per Diluted Share increased by 8% quarter over quarter to $0.28 per diluted share
3.1 million shares repurchased during the quarter
$16.9 million of debt repaid during the quarter
For the first quarter of 2016, the Company is pleased to report net sales of $405.6 million, which was an increase of 10% compared to net sales of $368.9 million in the first quarter of 2015 on a 1% overall increase in automotive light vehicle production on a quarter over quarter basis in the Company's primary markets.
The gross profit margin in the first quarter of 2016 was 39.1%, compared with a gross profit margin of 38.8% in the first quarter of 2015. The primary drivers affecting gross profit margin on a quarter over quarter basis resulted in a net increase in the gross profit margin. Annual customer price reductions were more than offset by purchasing cost reductions and the Company's ability to leverage fixed overhead costs.
Income from operations for the first quarter of 2016 increased 12% to $120.8 million when compared to income from operations of $107.7 million for the first quarter of 2015.
Other income decreased to a loss of $1.3 million in the first quarter of 2016 compared with other income of $0.7 million in the first quarter of 2015, primarily due to realized losses on the sale of equity investments during the most recently completed quarter.
Net income for the first quarter of 2016 increased 4% to $80.3 million compared with net income of $77.2 million in the first quarter of 2015. Net income was impacted by a reduction in Other income of



Exhibit 99.1

approximately $2 million on a quarter over quarter basis. The reduction in Other income was a direct result of underlying performance in equity markets. In addition, the percentage increase in net income on a quarter over quarter basis was impacted by the fact that in the first quarter 2015 the Company realized incremental research and development tax credits of $3.9 million related to the completion of an audit related to calendar years 2010 through 2012. The Company continues to deliver sales growth through the operational lines of the income statement, though prior period tax benefits and poor performance in equity markets had an impact in the first quarter of 2016.
Earnings per diluted share in the first quarter of 2016 increased 8% to $0.28, compared with earnings per diluted share of $0.26 in the first quarter of 2015. As previously stated, earnings per diluted share was positively impacted by $.01 during the first quarter of 2015 by the aforementioned prior period tax benefits.
Automotive net sales in the first quarter of 2016 were $394.0 million, an increase of 9% compared with automotive net sales of $360.6 million in the first quarter of 2015, primarily due to a 11% increase in auto dimming mirror unit shipments quarter over quarter.
Other net sales in the first quarter 2016, which includes dimmable aircraft windows and fire protection products, were $11.6 million, an increase of 39% compared with $8.3 million in the first quarter of 2015, due to a 42% increase in dimmable aircraft window sales and a 36% increase in sales from fire protection products.
Share Repurchases
During the first quarter of 2016, the Company repurchased 3.1 million shares of its common stock. As of March 31, 2016, the Company has approximately 6.4 million shares remaining available for repurchase in the previously announced share repurchase plan including the most recent authorization of 5 million shares in February 2016. 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 2016, the Company paid down $15 million on its revolver loan in addition to its normally scheduled principal repayment on the Company's term loan. The Company may, at its discretion, pay additional principal toward its loans in the future, depending on macroeconomic trends,



Exhibit 99.1

capital expenditure spending, interest rates, the amount of available free cash and other factors that it deems appropriate for timing and amounts of incremental debt repayments.
Future Estimates
The Company’s forecasts for light vehicle production for the second quarter and calendar year 2016 are based on the IHS Automotive April 2016 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
Q2 2016
Q2 2015
% Change
 
Calendar Year 2016
Calendar Year 2015
% Change
North America
4.76

4.53

5
%
 
18.22

17.50

4
%
Europe
5.68

5.47

4
%
 
21.32

20.90

2
%
Japan and Korea
3.31

3.24

2
%
 
13.31

13.25

%
Total Light Vehicle Production
13.75

13.24

4
%
 
52.85

51.65

2
%
Based on the April 2016 IHS production forecast, current forecasted product mix and expense growth estimates, the Company is making no changes to its previous estimates for calendar year 2016 or 2017.
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; our ability to be awarded new business; continued uncertainty in pricing negotiations with customers; loss of business from increased competition; 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;



Exhibit 99.1

unfavorable fluctuations in currencies or interest rates in the regions in which we operate; costs or difficulties related to the integration 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; 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 10:30 a.m. EDT today, April 22, 2016. The dial-in number to participate in the call is 888-505-4375, passcode 1104846. Participants may listen to the call via audio streaming at www.gentex.com or by visiting https://www.webcaster4.com/Webcast/Page/611/14248. A webcast replay will be available approximately 24 hours after the conclusion of the call at http://ir.gentex.com/WebcastArchives.
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,
 
2016
 
2015
 
%
 Change
North American Interior Mirrors
2,260

 
2,025

 
12
%
North American Exterior Mirrors
864

 
740

 
17
%
Total North American Mirror Units
3,124

 
2,765

 
13
%
International Interior Mirrors
4,121

 
3,592

 
15
%
International Exterior Mirrors
1,582

 
1,576

 
%
Total International Mirror Units
5,703

 
5,168

 
10
%
Total Interior Mirrors
6,381

 
5,617

 
14
%
Total Exterior Mirrors
2,447

 
2,316

 
6
%
Total Auto-Dimming Mirror Units
8,827

 
7,933

 
11
%
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,
 
2016
 
2015
Net Sales
$
405,567,786

 
$
368,937,455

 
 
 
 
Cost of Goods Sold
246,876,998

 
225,845,046

Gross profit
158,690,788

 
143,092,409

 
 
 
 
Engineering, Research & Development
23,091,209

 
21,587,551

Selling, General & Administrative
14,750,589

 
13,796,352

Operating Expenses
37,841,798

 
35,383,903

 
 
 
 
Income from operations
120,848,990

 
107,708,506

 


 


Other Income (Expense)
(1,279,378
)
 
709,384

Income before Income Taxes
119,569,612

 
108,417,890

 
 
 


Provision for Income Taxes
39,289,618

 
31,234,449

 
 
 


Net Income
$
80,279,994

 
$
77,183,441

 
 
 
 
Earnings Per Share
 
 
 
Basic
$
0.28

 
$
0.26

Diluted
$
0.28

 
$
0.26

Weighted Average Shares
 
 
 
Basic
289,210,621

 
295,031,431

Diluted
291,316,353

 
298,594,143

 
 
 
 
Cash Dividends Declared per Share
$
0.085

 
$
0.08





Exhibit 99.1

GENTEX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
 
(Unaudited)
March 31, 2016
 
December 31, 2015

ASSETS
 
 
 
Cash and Cash Equivalents
$
626,470,720

 
$
551,557,527

Accounts Receivable, net
223,989,470

 
195,969,400

Inventories
188,624,776

 
174,695,411

Other Current Assets
21,060,564

 
61,786,454

Total Current Assets
1,060,145,530

 
984,008,792

 
 
 
 
Plant and Equipment - Net
414,695,494

 
412,720,270

 
 
 
 
Goodwill
307,365,845

 
307,365,845

Long-Term Investments
71,063,732

 
95,156,539

Intangible Assets
322,750,000

 
327,575,000

Patents and Other Assets
21,291,520

 
21,846,482

Total Other Assets
722,471,097

 
751,943,866

 
 
 
 
Total Assets
$
2,197,312,121

 
$
2,148,672,928

 
 
 
 
LIABILITIES AND SHAREHOLDERS' INVESTMENT
 
 
 
Current Liabilities
$
195,323,204

 
$
131,006,546

Long-Term Debt
208,750,000

 
225,625,000

Deferred Income Taxes
44,283,828

 
69,524,621

Shareholders' Investment
1,748,955,089

 
1,722,516,761

Total Liabilities & Shareholders' Investment
$
2,197,312,121

 
$
2,148,672,928