þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Michigan (State or other jurisdiction of incorporation or organization) |
38-2030505 (I.R.S. Employer Identification No.) |
|
600 N. Centennial, Zeeland, Michigan (Address of principal executive offices) |
49464 (Zip Code) |
* | The registrant has not yet been phased into the interactive data requirements. |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o | |||
(Do not check if smaller reporting company) |
Shares Outstanding | ||
Class | at October 22, 2009 | |
Common Stock, $0.06 Par Value | 137,835,871 |
Item 1. | Consolidated Financial Statements. |
September 30, 2009 | December 31, 2008 | |||||||
(Unaudited) | (Audited) | |||||||
ASSETS |
||||||||
CURRENT ASSETS |
||||||||
Cash and cash equivalents |
$ | 335,829,868 | $ | 294,306,512 | ||||
Short-term investments |
14,170,466 | 29,177,273 | ||||||
Accounts receivable, net |
74,336,716 | 44,528,810 | ||||||
Inventories |
46,678,434 | 54,993,855 | ||||||
Prepaid expenses and other |
23,983,882 | 34,145,509 | ||||||
Total current assets |
494,999,366 | 457,151,959 | ||||||
PLANT AND EQUIPMENT NET |
202,454,289 | 214,951,719 | ||||||
OTHER ASSETS |
||||||||
Long-term investments |
92,844,598 | 81,348,942 | ||||||
Patents and other assets, net |
10,387,322 | 9,650,760 | ||||||
Total other assets |
103,231,920 | 90,999,702 | ||||||
Total assets |
$ | 800,685,575 | $ | 763,103,380 | ||||
LIABILITIES AND SHAREHOLDERS INVESTMENT |
||||||||
CURRENT LIABILITIES |
||||||||
Accounts payable |
$ | 32,221,450 | $ | 19,706,159 | ||||
Accrued liabilities |
41,186,708 | 29,766,279 | ||||||
Total current liabilities |
73,408,158 | 49,472,438 | ||||||
DEFERRED INCOME TAXES |
18,514,914 | 15,034,620 | ||||||
SHAREHOLDERS INVESTMENT |
||||||||
Common stock |
8,270,152 | 8,258,010 | ||||||
Additional paid-in capital |
261,173,973 | 253,821,363 | ||||||
Retained earnings |
424,106,719 | 434,975,514 | ||||||
Other shareholders investment |
15,211,659 | 1,541,435 | ||||||
Total shareholders investment |
708,762,503 | 698,596,322 | ||||||
Total liabilities and
shareholders investment |
$ | 800,685,575 | $ | 763,103,380 | ||||
- 2 -
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
NET SALES |
$ | 155,741,847 | $ | 153,056,570 | $ | 366,915,101 | $ | 501,518,401 | ||||||||
COST OF GOODS SOLD |
101,386,005 | 106,359,938 | 254,454,384 | 333,094,524 | ||||||||||||
Gross profit |
54,355,842 | 46,696,632 | 112,460,717 | 168,423,877 | ||||||||||||
OPERATING EXPENSES: |
||||||||||||||||
Engineering, research and development |
11,955,915 | 13,101,431 | 34,557,839 | 39,236,174 | ||||||||||||
Selling, general
& administrative |
9,296,514 | 10,324,190 | 26,522,075 | 30,139,806 | ||||||||||||
Total operating expenses |
21,252,429 | 23,425,621 | 61,079,914 | 69,375,980 | ||||||||||||
Income from operations |
33,103,413 | 23,271,011 | 51,380,803 | 99,047,897 | ||||||||||||
OTHER INCOME (EXPENSE) |
||||||||||||||||
Investment income |
567,664 | 2,949,412 | 2,627,968 | 10,249,623 | ||||||||||||
Impairment loss on available-for-sale securities |
0 | 0 | (1,290,590 | ) | 0 | |||||||||||
Other, net |
1,911,329 | (3,515,596 | ) | (1,219,762 | ) | (1,110,016 | ) | |||||||||
Total other income (expense) |
2,478,993 | (566,184 | ) | 117,616 | 9,139,607 | |||||||||||
Income before provision
for income taxes |
35,582,406 | 22,704,827 | 51,498,419 | 108,187,504 | ||||||||||||
PROVISION FOR INCOME TAXES |
11,645,552 | 7,558,271 | 16,909,189 | 35,734,452 | ||||||||||||
NET INCOME |
$ | 23,936,854 | $ | 15,146,556 | $ | 34,589,230 | $ | 72,453,052 | ||||||||
EARNINGS PER SHARE: |
||||||||||||||||
Basic |
$ | 0.17 | $ | 0.11 | $ | 0.25 | $ | 0.51 | ||||||||
Diluted |
$ | 0.17 | $ | 0.11 | $ | 0.25 | $ | 0.51 | ||||||||
Cash Dividends Declared per Share |
$ | 0.11 | $ | 0.11 | $ | 0.33 | $ | 0.32 |
- 3 -
2009 | 2008 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net income |
$ | 34,589,230 | $ | 72,453,052 | ||||
Adjustments to reconcile net income to net
cash provided by operating activities: |
||||||||
Depreciation and amortization |
28,895,520 | 27,192,983 | ||||||
(Gain) loss on disposal of assets |
409,489 | 674,471 | ||||||
(Gain) loss on sale of investments |
2,086,250 | 899,317 | ||||||
Impairment loss on available-for-sale securities |
1,290,590 | 0 | ||||||
Deferred income taxes |
(5,208,670 | ) | 2,771,058 | |||||
Stock-based compensation expense related to employee
stock options, employee stock purchases and restricted stock |
6,876,619 | 7,653,209 | ||||||
Excess tax benefits from stock-based compensation |
0 | (62,647 | ) | |||||
Change in operating assets and liabilities: |
||||||||
Accounts receivable, net |
(29,807,906 | ) | (6,762,945 | ) | ||||
Inventories |
8,315,421 | (7,848,893 | ) | |||||
Prepaid expenses and other |
12,264,207 | 503,283 | ||||||
Accounts payable |
12,515,291 | (13,795 | ) | |||||
Accrued liabilities, excluding dividends declared |
11,398,168 | (6,452,290 | ) | |||||
Net cash provided by (used for) operating activities |
83,624,209 | 91,006,803 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Plant and equipment additions |
(16,452,961 | ) | (38,206,068 | ) | ||||
Proceeds from sale of plant and equipment |
10,754 | 11,002 | ||||||
(Increase) decrease in investments |
18,952,520 | 40,273,213 | ||||||
(Increase) decrease in other assets |
336,465 | (774,474 | ) | |||||
Net cash provided by (used for) investing activities |
2,846,778 | 1,303,673 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
Issuance of common stock from
stock plan transactions |
488,133 | 11,693,703 | ||||||
Cash dividends paid |
(45,435,764 | ) | (45,097,502 | ) | ||||
Repurchases of common stock |
0 | (93,352,675 | ) | |||||
Excess tax benefits from stock-based compensation |
0 | 62,647 | ||||||
Net cash provided by (used for) financing activities |
(44,947,631 | ) | (126,693,827 | ) | ||||
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS |
41,523,356 | (34,383,351 | ) | |||||
CASH AND CASH EQUIVALENTS,
beginning of period |
294,306,512 | 317,717,093 | ||||||
CASH AND CASH EQUIVALENTS,
end of period |
$ | 335,829,868 | $ | 283,333,742 | ||||
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(1) | The unaudited condensed consolidated financial statements included herein have been prepared by the Registrant, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations, although the Registrant believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these unaudited condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Registrants 2008 annual report on Form 10-K. |
(2) | In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only a normal and recurring nature, necessary to present fairly the financial position of the Registrant as of September 30, 2009, and the results of operations and cash flows for the interim periods presented. |
(3) | Adoption of New Accounting Standards |
In June 2009, the Financial Accounting Standards Board (FASB) issued authoritative guidance at Accounting Standards Codification (ASC) 105, FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles (ASC 105). The standard establishes FASB Accounting Standards Codification (Codification) as the single source of authoritative U.S. GAAP. Rules and interpretive releases of the U.S. Securities and Exchange Commission (SEC), under authority of federal securities laws, are also sources of authoritative U.S. GAAP for U.S. SEC registrants. ASC 105 is effective for interim or annual financial periods ending after September 15, 2009. All existing accounting standards are superseded as described in this statement. All other accounting literature not included in the Codification is non-authoritative. The adoption of the codification standards, during the current quarter, did not have a material impact on the Companys consolidated financial statements. |
In June 2008, FASB issued authoritative guidance located at ASC 260, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities (ASC 260). The standard states that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two class method. The standard is effective for fiscal years beginning after December 15, 2008. The Company concluded that the adoption of ASC 260 did not have a material impact on its reported basic and diluted earnings per share amounts. |
In May 2009, FASB issued authoritative guidance at ASC 855, Subsequent Events. The standard establishes principles and requirements for subsequent events. The standard also sets forth the period after the balance sheet date during which management shall evaluate events/transactions that may occur for potential recognition or disclosure in its financial statements. The standard is effective for interim or annual financial periods ending after June 15, 2009. The Company has evaluated subsequent events from its interim balance sheet date of September 30, 2009, to November 3, 2009, and concluded that no events/transactions require disclosure or recognition in its consolidated financial statements. |
In April 2009, FASB issued authoritative guidance at ASC 820, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions that are Not Orderly, and Recognition and Presentation of Other-Than-Temporary Impairments. This standard provides additional application guidance and enhanced disclosures about fair value measurements and impairments of securities, which clarifies the objective and method of fair value measurement even when there has been a significant decrease in market activity for the asset being measured. The standard established a new model for measuring other-than-temporary impairments for debt securities, including establishing criteria for when to recognize a write-down through earnings. There was no impact to the Companys consolidated financial statements as a result of the adoption of this standard. |
- 5 -
(3) | Adoption of New Accounting Standards (Continued) |
In September 2009, FASB issued Accounting Standards Update No. 2009-12, Investments in Certain Entities that Calculate Net Asset Value Per Share (or its Equivalent) (ASU 2009-12). ASU 2009-12 amends ASC 820 by providing additional guidance on measuring the fair value of certain alternative investments. The amended guidance is effective for interim or annual financial periods ending after December 15, 2009. The amended guidance is not expected to have an impact on the Companys consolidated financial statements. |
In April 2009, FASB issued authoritative guidance at ASC 825, Interim Disclosures about Fair Value of Financial Instruments. This ASC expands the fair value disclosures required for all financial instruments to interim periods. There was no impact to the consolidated financial statements as a result of the adoption of this ASC. The required disclosures regarding fair value financial instruments are included in Note 4 to the consolidated financial statements. |
(4) | Investments |
FASB issued authoritative guidance at ASC 820, Fair Value Measurements. This standard establishes a framework for measuring the fair value of assets and liabilities. This framework is intended to provide increased consistency in how fair value determinations are made under various existing accounting standards that permit or, in some cases, require estimates of fair-market value. This standard also expands financial statement disclosure requirements about a companys use of fair-value measurements, including the effect of such measure on earnings. |
The Company adopted the provisions of ASC 820 related to its financial assets and liabilities in the first quarter of 2008, and to its non-financial assets and liabilities in the first quarter of 2009, neither of which had a material impact on the Companys consolidated financial position, results of operations or cash flows. The Companys investment securities are classified as available for sale and are stated at fair value based on quoted market prices. Assets or liabilities that have recurring measurements are shown below as of September 30, 2009: |
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Quoted Prices in | ||||||||||||||||
Active Markets | Significant | Significant | ||||||||||||||
for Identical | Other Observable | Unobservable | ||||||||||||||
Total as of | Assets | Inputs | Inputs | |||||||||||||
Description | September 30, 2009 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Cash & Cash Equivalents |
$ | 335,829,868 | $ | 335,829,868 | $ | | $ | | ||||||||
Short-Term Investments |
14,170,466 | 14,170,466 | | | ||||||||||||
Long-Term Investments |
92,844,598 | 92,844,598 | | | ||||||||||||
Net |
$ | 442,844,932 | $ | 442,844,932 | $ | | $ | | ||||||||
The Companys short-term investments primarily consist of Government Securities. Long-term investments primarily consist of marketable equity securities. |
- 6 -
(4) | Investments (continued) |
The amortized cost, unrealized gains and losses, and market value of investment securities are shown as of September 30, 2009: |
Unrealized | ||||||||||||||||
Cost | Gains | Losses | Market value | |||||||||||||
Government Agency |
$ | 14,079,694 | $ | 10,080 | $ | (3,803 | ) | $ | 14,085,971 | |||||||
Certificates of Deposit |
| | | | ||||||||||||
Corporate Bonds |
| | | | ||||||||||||
Other Fixed income |
84,495 | | | 84,495 | ||||||||||||
Equity |
73,442,779 | 19,731,330 | (329,511 | ) | 92,844,598 | |||||||||||
$ | 87,606,968 | $ | 19,741,410 | $ | (333,314 | ) | $ | 107,015,064 | ||||||||
Unrealized losses on investments as of September 30, 2009 (excluding other-than-temporary impairments), are as follows: |
Aggregate Unrealized Losses | Aggregate Fair Value | |||||||
Less than one year |
$ | (333,314 | ) | $ | 13,451,782 | |||
Greater than one year |
| |
ASC 320, Accounting for Certain Investments in Debt and Equity Securities, as amended and interpreted, provides guidance on determining when an investment is other than temporarily impaired. The Company reviews its fixed income and equity investment portfolio for any unrealized losses that would be deemed other-than-temporary and require the recognition of an impairment loss in income. If the cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, the duration and extent to which the fair value is less than cost, and the Companys intent and ability to hold the investments. Management also considers the type of security, related-industry and sector performance, as well as published investment ratings and analyst reports, to evaluate its portfolio. Once a decline in fair value is determined to be other than temporary, an impairment charge is recorded and a new cost basis in the investment is established. If market, industry, and/or investee conditions deteriorate, the Company may incur future impairments. Management considered equity investment losses of $17,909,901 to be other than temporary at December 31, 2008. The Company considered additional equity investment losses of $1,290,590 to be other than temporary at March 31, 2009. Accordingly, the losses were recognized in the consolidated statement of income in their respective reporting periods. No additional equity investment losses were considered to be other than temporary at June 30, 2009 and September 30, 2009. |
Fixed income securities as of September 30, 2009, have contractual maturities as follows: |
Due within one year |
$ | 14,085,971 | ||
Due Between one and five years |
| |||
Due over five years |
|
- 7 -
(5) | Inventories consisted of the following at the respective balance sheet dates: |
September 30, 2009 | December 31, 2008 | |||||||
Raw materials |
$ | 29,289,627 | $ | 36,164,930 | ||||
Work-in-process |
6,458,181 | 6,787,891 | ||||||
Finished goods |
10,930,626 | 12,041,034 | ||||||
$ | 46,678,434 | $ | 54,993,855 | |||||
(6) | The following table reconciles the numerators and denominators used in the calculation of basic and diluted earnings per share (EPS): |
Quarter Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Numerators: |
||||||||||||||||
Numerator for both basic and
diluted EPS, net income |
$ | 23,936,854 | $ | 15,146,556 | $ | 34,589,230 | $ | 72,453,052 | ||||||||
Denominators: |
||||||||||||||||
Denominator for basic EPS,
weighted-average shares
outstanding |
137,216,748 | 140,233,348 | 137,163,501 | 141,913,581 | ||||||||||||
Potentially dilutive shares
resulting from stock plans |
494,110 | 210,304 | 383,209 | 301,412 | ||||||||||||
Denominator for diluted EPS |
137,710,858 | 140,443,652 | 137,546,710 | 142,214,993 | ||||||||||||
Shares related to stock plans not
included in diluted average common
shares outstanding because their
effect would be antidilutive |
7,567,738 | 7,708,950 | 8,601,081 | 6,030,965 |
(7) | Stock-Based Compensation Plans |
At September 30, 2009, the Company had two stock option plans, a restricted stock plan and an employee stock purchase plan. Readers should refer to Note 6 of our consolidated financial statements in our Annual Report on Form 10-K for the calendar year ended December 31, 2008, for additional information related to these stock-based compensation plans. |
The Company recognized compensation expense for share-based payments of $1,911,198 and $5,587,206 for the third quarter and nine months ended September 30, 2009, respectively. Compensation cost capitalized as part of inventory as of September 30, 2009, was $112,970. |
- 8 -
(7) | Stock-Based Compensation Plans (Continued) |
Employee Stock Option Plan |
The fair value of each option grant in the Employee Stock Option Plan was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions for the indicated periods: |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Dividend yield |
2.67 | % | 2.15 | % | 2.59 | % | 2.09 | % | ||||||||
Expected volatility |
39.79 | % | 31.57 | % | 38.72 | % | 30.89 | % | ||||||||
Risk-free interest rate |
2.33 | % | 2.98 | % | 2.18 | % | 2.94 | % | ||||||||
Expected term of options (in years) |
4.26 | 4.31 | 4.25 | 4.31 | ||||||||||||
Weighted-average grant-date fair
value |
$ | 4.18 | $ | 3.77 | $ | 3.39 | $ | 3.77 |
The Company determined that all employee groups exhibit similar exercise and post-vesting termination behavior to determine the expected term. Under the plans, the option exercise price equals the stocks market price on date of grant. The options vest after one to five years, and expire after five to seven years. |
As of September 30, 2009, there was $10,204,667 of unrecognized compensation cost related to share-based payments which is expected to be recognized over the vesting period with a weighted-average period of 4.0 years. |
Non-employee Director Stock Option Plan |
As of September 30, 2009, there was $44,899 of unrecognized compensation cost under this plan related to share-based payments which is expected to be recognized over the balance of the 2009 calendar year. Under the plan, the option exercise price equals the stocks market price on date of grant. The options vest after six months, and expire after ten years. |
Employee Stock Purchase Plan |
In 2003, a new Employee Stock Purchase Plan covering 1,200,000 shares was approved by the shareholders, replacing a prior plan. Under the plan, the Company sells shares at 85% of the stocks market price at date of purchase. Under ASC 718, the 15% discounted value is recognized as compensation expense. |
Restricted Stock Plan |
The Company has a Restricted Stock Plan covering 2,000,000 shares of common stock that was approved by shareholders. The purpose of the Plan is to permit grants of shares, subject to restrictions, to key employees of the Company as a means of retaining and rewarding them for long-term performance and to increase their ownership in the Company. Shares awarded under the plan entitle the shareholder to all rights of common stock ownership except that the shares may not be sold, transferred, pledged, exchanged or otherwise disposed of during the restriction period. The restriction period is determined by the Compensation Committee, appointed by the Board of Directors, but may not exceed ten years. As of September 30, 2009, the .Company had unearned stock-based compensation of $4,446,727 associated with these restricted stock grants. The unearned stock-based compensation related to these grants is being amortized to compensation expense over the applicable restriction periods. Amortization expense from restricted stock grants in the third quarter and nine months ended September 30, 2009, were $516,320 and $1,289,413, respectively. |
(8) | Comprehensive income reflects the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. For the Company, comprehensive income represents net income adjusted for items such as unrealized gains and losses on investments and foreign currency translation adjustments. Comprehensive income (loss) was as follows: |
September 30, 2009 | September 30, 2008 | |||||||
Quarter Ended |
$ | 31,538,084 | $ | 5,550,210 | ||||
Nine Months Ended |
$ | 48,259,454 | $ | 51,081,405 |
- 9 -
(9) | The increase in common stock during the nine months ended September 30, 2009, was primarily due to the issuance of 202,369 shares of the Companys common stock under its stock-based compensation plans. The Company has also recorded a $0.11 per share cash dividend in the first, second and third quarters. The third quarter dividend of approximately $15,162,000, was declared on August 18, 2009, and was paid on October 16, 2009. |
(10) | The Company currently manufactures electro-optic products, including automatic-dimming rearview mirrors for the automotive industry, and fire protection products for the commercial construction industry. The Company also develops and manufactures variably dimmable windows for the aerospace industry and non-auto dimming rearview automotive mirrors with electronic features: |
Quarter Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Revenue: |
||||||||||||||||
Automotive Products |
$ | 151,088,880 | $ | 147,290,164 | $ | 352,245,253 | $ | 484,157,368 | ||||||||
Other |
4,652,967 | 5,766,406 | 14,669,848 | 17,361,033 | ||||||||||||
Total |
$ | 155,741,847 | $ | 153,056,570 | $ | 366,915,101 | $ | 501,518,401 | ||||||||
Income (loss) from Operations: |
||||||||||||||||
Automotive Products |
$ | 33,864,759 | $ | 23,292,326 | $ | 52,855,970 | $ | 99,229,035 | ||||||||
Other |
(761,346 | ) | (21,315 | ) | (1,475,167 | ) | (181,138 | ) | ||||||||
Total |
$ | 33,103,413 | $ | 23,271,011 | $ | 51,380,803 | $ | 99,047,897 | ||||||||
The Other segment includes Fire Protection Products and Dimmable Aircraft Windows. Dimmable Aircraft Windows sales were negligible during the third quarter and nine months ended September 30, 2009, which resulted in a larger loss from operations for the Other category. |
- 10 -
- 11 -
- 12 -
Total Number of | ||||||||
Shares Purchased | Cost of | |||||||
Quarter Ended | (Post-Split) | Shares Purchased | ||||||
March 31, 2003 |
830,000 | $ | 10,246,810 | |||||
September 30, 2005 |
1,496,059 | 25,214,573 | ||||||
March 31, 2006 |
2,803,548 | 47,145,310 | ||||||
June 30, 2006 |
7,201,081 | 104,604,414 | ||||||
September 30, 2006 |
3,968,171 | 55,614,102 | ||||||
December 31, 2006 |
1,232,884 | 19,487,427 | ||||||
March 31, 2007 |
447,710 | 7,328,015 | ||||||
March 31, 2008 | 2,200,752 | 34,619,490 | ||||||
June 30, 2008 | 1,203,560 | 19,043,775 | ||||||
September 30, 2008 | 2,519,153 | 39,689,410 | ||||||
December 31, 2008 | 2,125,253 | 17,907,128 | ||||||
Total |
26,028,171 | $ | 380,900,454 | |||||
- 13 -
- 14 -
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- 16 -
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- 18 -
GENTEX CORPORATION | ||
Date: November 3, 2009
|
/s/ Fred T. Bauer | |
Fred T. Bauer | ||
Chairman and Chief Executive Officer | ||
Date: November 3, 2009
|
/s/ Steven A. Dykman | |
Steven A. Dykman | ||
Vice President Finance, Principal Financial and Accounting Officer |
- 19 -
Exhibit No. | Description | Page | ||||||
3 | (a) | Registrants Restated Articles of Incorporation, adopted on August 20, 2004, were
filed as Exhibit 3(a) to Registrants Report on Form 10-Q dated November 2, 2004,
and the same is hereby incorporated herein by reference. |
||||||
3 | (b) | Registrants Bylaws as amended and restated February 27, 2003, were filed as
Exhibit 3(b)(1) to
Registrants Report on Form 10-Q dated May 5, 2003, and the same are hereby
incorporated herein by reference. |
||||||
4 | (a) | A specimen form of certificate for the Registrants common stock, par value $.06
per share, were filed as part of a Registration Statement on Form S-8
(Registration No. 2-74226C) as Exhibit 3(a), as amended by Amendment No. 3 to such
Registration Statement, and the same is hereby incorporated herein by reference. |
||||||
4 | (b) | Amended and Restated Shareholder Protection Rights Agreement, dated as of March
29, 2001, including as Exhibit A the form of Certificate of Adoption of Resolution
Establishing Series of Shares of Junior Participating Preferred Stock of the
Company, and as Exhibit B the form of Rights Certificate and of Election to
Exercise, was filed as Exhibit 4(b) to Registrants Report on Form 10-Q dated
April 27, 2001, and the same is hereby incorporated herein by reference. |
||||||
10 | (a)(1) | A Lease dated August 15, 1981, was filed as part of a Registration Statement
on Form S-1 (Registration Number 2-74226C) as Exhibit 9(a)(1), and the same is
hereby incorporated herein by reference. |
||||||
10 | (a)(2) | First Amendment to Lease dated June 28, 1985, was filed as Exhibit 10(m) to
Registrants Report on Form 10-K dated March 18, 1986, and the same is hereby
incorporated herein by reference. |
||||||
*10 | (b)(1) | Gentex Corporation Qualified Stock Option Plan (as amended and restated, effective
February 26, 2004) was included in Registrants Proxy Statement dated April 6, 2004, filed with
the Commission on April 6, 2004, which is hereby incorporated herein by reference. |
||||||
*10 | (b)(2) | First Amendment to Gentex Corporation Stock Option Plan (as amended and restated
February 26, 2004) was filed as Exhibit 10(b)(2) to Registrants Report on Form 10-Q dated
August 2, 2005, and the same is hereby incorporated herein by reference. |
||||||
*10 | (b)(3) | Specimen form of Grant Agreement for the Gentex Corporation Qualified Stock Option Plan (as amended and restated, effective February
26, 2004) was filed as Exhibit 10(b)(3) to Registrants Report on Form 10-Q dated November 1, 2005, and the same is hereby
incorporated herein by reference. |
||||||
*10 | (b)(4) | Gentex Corporation Second Restricted Stock Plan was filed as Exhibit 10(b)(2) to Registrants Report on Form 10-Q dated April 27,
2001, and the same is hereby incorporated herein by reference. |
||||||
*10 | (b)(5) | First Amendment to the Gentex Corporation Second Restricted Stock Plan was filed as Exhibit
10(b)(5) to Registrants Report on Form 10-Q dated August 4, 2008, and the same is hereby
incorporated herein by reference. |
||||||
*10 | (b)(6) | Specimen form of Grant Agreement for the Gentex Corporation Restricted Stock Plan, was filed
as Exhibit 10(b)(4) to Registrants Report on Form 10-Q dated November 2, 2004, and the same
is hereby incorporated herein by reference. |
- 20 -
Exhibit No. | Description | Page | ||||||
*10 | (b)(7) | Gentex Corporation 2002 Non-Employee Director Stock Option Plan (adopted March 6, 2002), was filed as Exhibit 10(b)(4) to Registrants
Report on Form 10-Q dated April 30, 2002, and the same is incorporated herein by reference. |
||||||
*10 | (b)(8) | Specimen form of Grant Agreement for the Gentex Corporation 2002 Non-Employee Director
Stock Option Plan, was filed as Exhibit 10(b)(6) to Registrants Report on Form 10-Q dated November 2, 2004, and the same is hereby
incorporated herein by reference. |
||||||
10 | (c) | The form of Indemnity Agreement between Registrant and each of the Registrants directors
and certain officers was filed as Exhibit 10 (e) to Registrants Report on Form 10-Q dated October 31, 2002, and the same is
incorporated herein by reference. |
||||||
31.1 | Certificate of
the Chief Executive Officer of Gentex Corporation pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350). |
22 | ||||||
31.2 | Certificate of
the Chief Financial Officer of Gentex Corporation pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350). |
23 | ||||||
32 | Certificate of the Chief Executive Officer and Chief Financial Officer of Gentex Corporation
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350). |
24 |
* | Indicates a compensatory plan or arrangement. |
- 21 -
1. | I have reviewed this quarterly report on Form 10-Q of Gentex Corporation; | ||
2. | Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; | ||
3. | Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods, presented in this quarterly report; | ||
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures [as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)] and internal control over financial reporting [as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)] for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and |
d) | disclosed in this quarterly report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and; |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: November 3, 2009 | /s/ Fred T. Bauer | |||
Fred T. Bauer | ||||
Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Gentex Corporation; | ||
2. | Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; | ||
3. | Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods, presented in this quarterly report; | ||
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures [as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)] and internal control over financial reporting [as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)] for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and |
d) | disclosed in this quarterly report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and; |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: November 3, 2009 | /s/ Steven A. Dykman | |||
Steven A. Dykman | ||||
Vice President Finance |
(1) | The quarterly report on Form 10-Q for the quarterly period ended September 30, 2009, which this statement accompanies, fully complies with the requirements of Section 13 (a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in this quarterly report on Form 10-Q of the quarterly period ended September 30, 2009, fairly presents, in all material respects, the financial condition and results of operations of Gentex Corporation. |
Dated: November 3, 2009 | GENTEX CORPORATION | |||
By | /s/ Fred T. Bauer | |||
Fred T. Bauer | ||||
Its Chief Executive Officer | ||||
By | /s/ Steven A. Dykman | |||
Steven A. Dykman | ||||
Its Vice President Finance and Chief Financial Officer |