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 (Date of earliest event reported):  April 22, 2010

 

 

GENTEX CORPORATION

(Exact name of registrant as specified in its charter)

 

 

 

 

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):

 

£         Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

£         Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

£         Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

£         Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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Section 2 - Financial Information

 

Item 2.02  Results of Operations and Financial Condition.

 

(a)        On April 22, 2010, Gentex Corporation issued a news release announcing financial results for the first quarter ended March 31, 2010.  A copy of the news release is attached as Exhibit 99.1 to this 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, 2010.

 

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.

 

 

 

 

 

 

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EXHIBIT INDEX

 

99.1     News Release Dated April 22, 2010

 

 

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Exhibit 99.1

 

 

 

 

GENTEX REPORTS RECORD NET SALES AND NET INCOME

 

ZEELAND, Michigan, April 22, 2010 -- Gentex Corporation, the Zeeland, Michigan-based manufacturer of automatic-dimming rearview mirrors and commercial fire protection products, today reported record results for the first quarter ended March 31, 2010. 

For the first quarter of 2010, the Company’s record net sales increased by 98 percent to $185.8 million compared with $93.8 million in the first quarter of 2009.  The gross profit margin increased on a year-over-year basis from 23.8 percent in the first quarter of 2009 to 36.9 percent in the first quarter of 2010, primarily due to the Company’s ability to leverage fixed overhead costs due to the 98 percent year-over-year increase in first quarter net sales.

Record income from operations increased by $42.4 million in the first quarter of 2010 to $44.6 million, compared with $2.2 million in the first quarter of 2009, primarily due to the year-over-year increase in the first quarter gross profit margin. 

Other income was $3.1 million in the first quarter of 2010 compared with other expense of $4.6 million in the first quarter last year.  The improvement in the first quarter of 2010 was primarily the result of realized gains on the sale of equity investments in the current quarter, compared with realized losses in the same prior-year period.  There were no other-than-temporary impairment losses in the first quarter of 2010, compared with non-cash charges for other-than-temporary impairment losses on available-for-sale securities of $1.3 million in the first quarter of 2009.

Record net income of $32.5 million in the first quarter of 2010, compared with a net loss of $1.6 million in the first quarter of 2009, was primarily due to increased operating income aided by improved other income.   

Earnings per diluted share were 23 cents in the first quarter of 2010 compared with a loss of one cent per share in the first quarter of 2009. 

“We are pleased to report the best quarter in the Company’s history in terms of net sales, operating income and net income,” said Gentex Chairman of the Board and Chief Executive Officer Fred Bauer.  “To say the least, we are happy to be reporting a quarter like this, given the challenges we faced one year ago at this time.”

Bauer said that the increases in net sales at the Company were driven by improved global automotive industry light vehicle production as well as new business and increased penetration of Rear Camera Display (RCD) Mirrors and SmartBeam®.  The Rear Camera Display Mirrors display high-resolution, color images of the area directly behind the vehicle via an automaker-specified camera.   SmartBeam is the Company’s proprietary high beam headlamp assist system. 

 

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Automatic-dimming mirror unit shipments to offshore customers increased by 93 percent in the first quarter of 2010 compared with the same period last year, primarily due to increased mirror unit shipments to certain European and Asian automakers.  Light vehicle production in Europe increased by 28 percent in the first quarter of 2010, and light vehicle production increased by 49 percent in Japan and Korea in the first quarter of 2010, compared with the same period last year.

Fire Protection net sales decreased by 23 percent to $3.8 million for the first quarter of 2010 compared with the same period last year, primarily due to the continued weak commercial construction market.

 

Future Estimates

 

Gentex Senior Vice President Enoch Jen provided certain guidance for the second quarter of 2010.

“Based on CSM Worldwide’s end-of-March light vehicle production forecast for the second quarter of 2010, we currently expect our net sales in the second quarter of 2010 to increase by 55-65 percent compared with the second quarter of 2009,” said Jen. 

 Jen said that while light vehicle production volumes have continued to improve, he believes that the global automotive market still faces some uncertainty.  CSM is currently forecasting relatively flat sequential vehicle production for all four quarters of 2010 when North America, Europe and Japan and Korea are combined.  He also said that the Company continues to believe that there will be some schedule adjustments as automakers work to balance their inventories with vehicle sales levels.  As such, due to the uncertainties, the Company does not plan to provide full-year 2010 net sales guidance at this time.

The Company’s current second quarter 2010 forecast is based on CSM’s end-of-March forecast for light vehicle production of a 64 percent increase to 2.9 million units for North America; a one percent increase to 4.3 million units for Europe, and an 18 percent increase to 2.9 million units for Japan and Korea. 

CSM’s end-of-March calendar year 2010 forecast for production in North America is a 35 percent increase to 11.5 million light vehicle units; a one percent increase to 16.4 million units for Europe, and a 12 percent increase to 12.2 million units for Japan and Korea, when compared with 2009. 

Based on the Company’s expected net sales for the second quarter of 2010, Jen said that the Company currently expects its gross profit margin for the second quarter of 2010 to be in the same range as the first quarter of 2010.

"In addition, the Company has updated its annual guidance for Rear Camera Display Mirror unit shipments, and we currently believe that those units will nearly double in calendar 2010 compared with calendar 2009," said Jen.  He said that the anticipated change in the expected annual increase in RCD Mirror unit shipments is primarily due to increased take rates on certain domestic vehicle models.  Jen said that the Company's calendar year 2010 guidance for SmartBeam unit shipments remains unchanged, and that the Company continues to expect that SmartBeam unit shipments will increase by 30 to 40 percent in calendar year 2010 compared with calendar year 2009.

 

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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. To access that call, go to www.gentex.com and select the “Audio Webcast” icon in the lower right-hand corner of the page. Other conference calls hosted by the Company will also be available at that site in the future.

 

About the Company

 

      Founded in 1974, Gentex Corporation (The Nasdaq Global Select Market: GNTX) is an international company that provides high-quality products to the worldwide automotive industry and North American fire protection market. Based in Zeeland, Michigan, the Company develops, manufactures and markets interior and exterior automatic-dimming automotive rearview mirrors that utilize proprietary electrochromic technology to dim in proportion to the amount of headlight glare from trailing vehicle headlamps. More than half of the Company’s automatic-dimming interior mirrors are sold with advanced electronic features.  Approximately 97 percent of the Company’s net sales are derived from the sales of auto-dimming mirrors to nearly every major automaker in the world.

 

 

 

 

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GENTEX CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

 

 

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CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

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Note: Certain prior year amounts have been reclassified to conform with the current year presentation.  Percent change and amounts may not total due to rounding.

 

 

End of Filing

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