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): January 29,
2008
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):
|
¨
|
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))
|
Section
2 - Financial Information
Item
2.02 Results of Operations and Financial Condition.
On
January 29, 2008, Gentex Corporation issued a news release announcing financial
results for the fourth quarter and year ended December 31, 2007. 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 January 29, 2008.
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.
|
Dated: January
29, 2008
|
|
GENTEX CORPORATION | |
|
|
(Registrant)
|
||
|
By:
|
/s/
Steven A. Dykman
|
||
|
Steven
A. Dykman
|
|||
|
Vice
President – Finance and
|
|||
|
Chief
Financial Officer
|
|||
EXHIBIT
INDEX
|
|
99.1
|
News
Release Dated January 29, 2008.
|
|
CONTACT:
|
Connie
Hamblin
|
RELEASE: January
29,
2008
|
||
|
(616)
772-1800
|
GENTEX
REPORTS RECORD REVENUES AND NET INCOME FOR THE FOURTH QUARTER AND CALENDAR
YEAR
2007
ZEELAND,
Michigan, January 29, 2008 -- Gentex Corporation (“the Company”),(NASDAQ: GNTX),
the Zeeland, Michigan-based manufacturer of automatic-dimming rearview mirrors
and commercial fire protection products, today reported financial results
for
the fourth quarter and year ended December 31, 2007.
The
Company’s net sales increased by 14 percent from $149.6 million in the fourth
quarter of 2006 to a record $170.7 million in the fourth quarter of
2007. Record net income for the fourth quarter ended December 31,
2007, increased by three percent to $31.8 million compared with $30.8 million
in
the fourth quarter last year. The Company’s net income for the fourth
quarter and calendar year 2007 was negatively impacted by the $2.9 million
(pre-tax) litigation judgment related to the Muth litigation in Wisconsin,
as
discussed below. Earnings per diluted share were flat at 22 cents in
the fourth quarter of 2007 compared with same prior-year period in
2006. The Muth litigation judgment negatively impacted the Company’s
net income for the fourth quarter and year ended December 31, 2007, by
approximately $1.9 million (after tax) and earnings per share by approximately
one cent.
For
the year ended December 31, 2007, net sales increased by 14 percent to $653.9
million compared with $572.3 million in the year ended December 31,
2006. Net income for the calendar year 2007 increased by 12 percent
to $122.1 million compared with $108.8 million in calendar year
2006. Earnings per diluted share increased by 16 percent to 85 cents
for the year ended December 31, 2007, compared with 73 cents for the same
period
in calendar 2006.
During
the fourth quarter of 2007, the Company’s quarterly financial results were
negatively impacted by approximately $358,000 (pre-tax, reported in Engineering,
Research and Development Expense) in legal expenses related to litigation
between the Company and K.W. Muth and Muth Mirror Systems LLC (collectively
“Muth”). The litigation, as previously announced, relates to exterior
mirrors with turn signal indicators. A trial took place in Wisconsin
in July 2007, and in December 2007, the Court found that Muth’s patents were
invalid and unenforceable, and that Gentex’s Razor Mirror product does not
infringe the patents in suit. However,
the Court did find that Gentex had breached the agreement between the two
companies and, on January 24, 2008, entered a judgment against Gentex of
$2.9
million. In accordance with generally accepted accounting principles,
the Company recorded a pre-tax charge of $2.9 million in the fourth quarter
of
2007. It is uncertain at this time whether either party will appeal.
(The
$2.9
million judgment was recorded above the operating income line on the Company’s
income statement as “Litigation Judgment”).
“We
are
pleased to report that the Company’s sales continue to grow at a significant
pace, despite the issues related to reduced vehicle production levels at
the
traditional 'Big Three' automakers in North America,” said Gentex Chairman and
Chief Executive Officer Fred Bauer. “Our business strategy many years ago was to
work to diversify our business so that eventually our percentage of business
with each automaker would reflect that automaker’s percentage of global market
share, and we believe that we are on our way to doing that.
“We
also
have an excellent portfolio of very popular, high value-added products to
offer
our customers, and a number of those products are just starting to get some
traction, such as SmartBeam® and the new Rear Camera Display (RCD)
Mirror. Each of those products have incremental average selling
prices that are at least three times higher than the price of one base feature
auto-dimming rearview mirror, and there appears to be significant market
demand
for each,” concluded Bauer.
Gentex
Senior Vice President Enoch Jen said that the Company’s gross margin declined
sequentially from 35.1% in the third quarter to 34.2% in the fourth quarter,
primarily because of the Company’s inability to fully leverage fixed overhead
costs due to approximately 100,000 units that customers canceled at the last
minute during the last two weeks of December 2007, which units primarily
consisted of exterior auto-dimming mirror units for tier one mirror
suppliers. The Company believes that the reduction in orders was
primarily due to year-end inventory adjustments by those tier one exterior
mirror suppliers.
In
addition, in order to meet a large customer’s cost reduction efforts, the
Company granted a price reduction that impacted the fourth quarter of
2007. In separate negotiations with that same customer, the Company
reached an agreement in the ordinary course of business to be that customer’s
sole supplier of RCD Mirrors for model years 2011 to 2015. The
Company has not yet announced any rear camera display business awards with
that
customer at this time.
Automatic-dimming
mirror unit shipments for the fourth quarter of 2007 increased by 13 percent,
but automotive revenues increased by 15 percent due to a richer mix of mirror
products shipped during the quarter. For the fourth quarter of 2007,
unit shipments in North America increased by 16 percent compared with the
fourth
quarter of 2006, primarily due to increased interior automatic-dimming mirror
unit shipments for certain domestic and Asian transplant
automakers. Increased penetration of interior auto-dimming mirrors at
certain of our European and Asian automotive customers was the primary factor
in
achieving an 11 percent increase in the Company’s offshore unit shipments in the
fourth quarter of 2007 compared with the fourth quarter of 2006.
SmartBeam
SmartBeam
is the high beam headlamp assist system that the Company developed and
introduced in the 2005 model year. For the 2007 calendar year, the
Company shipped approximately 304,000 SmartBeam units, which was at the lower
end of guidance, primarily due to production cuts on light vehicles in North
America. Option rates have remained strong at 25-30% on
average. For the 2008 calendar year, we currently expect to ship
approximately 350,000 to 400,000 SmartBeam units. There are a number
of follow-on SmartBeam programs for existing and new customers scheduled
for the
2009 calendar year.
Rear
Camera Display (RCD)
Mirror
The
Company’s RCD Mirror consists of a proprietary liquid crystal display (LCD)
device that shows a panoramic video view of objects behind the vehicle in
real
time. When the vehicle is put in “reverse,” the display illuminates
and automatically appears through the rearview mirror’s reflective surface to
give a high resolution, bright-colored image. The image is generated
by a camera or cameras placed in a protected area at the rear of the
vehicle. When the vehicle is put in “drive,” the display in the
mirror automatically disappears. The ability to automatically have
the display appear through the automatic-dimming mirror’s surface is made
possible by utilizing proprietary “transflective” coatings developed by Gentex
Corporation.
The
RCD
Mirror is currently offered as original equipment as a stand-alone option
on
four Ford and Lincoln programs, as well as on the Kia Mohave for
Korea. The RCD Mirror is also offered on a number of port- or
dealer-installed programs. The Company shipped approximately 65,000
rear camera display units in calendar year 2007, and currently estimates
that it
will ship between 250,000 and 300,000 in calendar year 2008. Based on
the Company’s current forecast, Gentex estimates that RCD Mirror shipments could
more than double in calendar year 2009 compared with calendar year
2008.
The
automakers currently offering Gentex’s RCD mirror are doing so absent any
legislation with respect to expanding the field of view on light vehicles
so
that drivers can detect objects directly behind their vehicles, and made
the
decision to offer the product before any legislation was
pending. There currently is pending legislation, called the “Kids
Transportation Safety Act of 2007,” which passed in the U.S. House of
Representatives and was introduced into the Senate on December 19,
2007. This Bill orders the Secretary of Transportation at the
National Highway Traffic Safety Administration (NHTSA) to initiate rulemaking
to
revise the federal standard to expand the field of view on light vehicles
in the
United States so that drivers can detect objects directly behind
vehicles. The requirements may be met by the use of additional
mirrors, sensors, cameras or other technology. NHTSA has conducted
some independent studies already and appears to be leaning toward the use
of
camera-based systems. The Company believes that the Bill will pass
the U.S. Senate and will be signed into law sometime during
2008. Once it is signed into law, the timeline is approximately seven
years from the date of the initiation of rulemaking by NHTSA until automotive
manufacturers will be required to comply with the rules.
“Based
on
the interest level of current customers and those with whom we have development
programs, absent any legislation, we currently expect early adoption by many
automakers,” said Jen.
Future
Estimates
Gentex
Senior Vice President Enoch Jen provided certain guidance for the first quarter
and calendar year 2008.
“For
the
first quarter and calendar year 2008, we anticipate that our top line growth
will increase by approximately 10 percent over the same prior-year periods,
based on the current forecast for product mix, light vehicle production levels
and take rates,” said Jen.
He
also
said that based on the current forecast, the gross margin in the first quarter
is expected to be in the range of 35 percent. When comparing calendar
year 2007 to calendar year 2006, the Company’s gross margin was flat at 34.8
percent, which is primarily attributable to purchasing cost reductions,
leveraging the Company’s fixed overhead costs, and improved manufacturing
yields, which improvements were offset by annual and other automotive customer
price reductions. The Company’s gross margin for all of calendar year
2008 could improve by 25 to 50 basis points compared with the gross margin
reported for calendar year 2007, primarily depending upon top line growth
and
purchasing cost reductions.
Jen
said
that the Company’s current 2008 forecast is based on CSM’s preliminary
mid-January forecast for light vehicle production in the first quarter of
3.6
million units for North America, 5.6 million units for Europe and 4.0 million
units for Japan and Korea. Based on that same forecast, CSM is
expecting light vehicle production of 14.4 million units for North America,
21.9
million units for Europe and 14.9 million units for Japan and Korea for calendar
year 2008.
Unit
Shipments and
Revenues
Total
auto-dimming mirror unit shipments in the fourth quarter of 2007 were
approximately 3.9 million, a 13 percent increase over the same period last
year. Auto-dimming mirror unit shipments increased by 13 percent to
15.2 million for the year ended December 31, 2007, compared with the same
prior-year period.
Auto-dimming
mirror unit shipments to customers in North America increased by 16 percent
to
approximately 1.7 million in the fourth quarter of 2007 compared with the
same
quarter last year. North American light vehicle production was up one
percent in the fourth quarter of 2007 compared with the same period in
2006. For the year ended December 31, 2007, auto-dimming mirror unit
shipments to customers in North America increased by 10 percent to approximately
6.7 million compared with the same period last year. North American
light vehicle production declined by two percent for the year ended December
31,
2007, compared with the same period in 2006.
Unit
shipments to offshore customers increased by 11 percent to approximately
2.2
million in the fourth quarter of 2007 compared with the same period in 2006.
Light vehicle production in Europe increased by six percent, and production
increased by five percent in Japan and Korea, in the fourth quarter of 2007,
compared with the same prior-year periods. For the year ended
December 31, 2007, auto-dimming mirror unit shipments to offshore customers
increased by 16 percent to approximately 8.5 million compared with the same
period last year. Light vehicle production in Europe increased by six
percent, and production increased by three percent in Japan and Korea for
the
year ended December 31, 2007, compared with the same periods in
2006.
Automotive
revenues increased by 15 percent to $165.3 million in the fourth quarter
of 2007
compared with the same period last year, and increased by 15 percent to $630.1
million for the year ended December 31, 2007, compared with the same period
in
2006. Fire Protection revenues decreased by two percent to $5.5
million for the fourth quarter of 2007 compared with the fourth quarter of
2006,
and were approximately flat at $23.8 million for the year ended December
31,
2007, compared with the same period in 2006.
Non-GAAP
Financial
Measure
The
financial information provided, including earnings, is in accordance with
GAAP.
Still, the Company believes it is useful to provide non-GAAP earnings to
exclude
the effect of Statement of Financial Accounting Standards No. 123(R),
“Share-Based Payment” [FAS 123(R)]. This non-GAAP financial measure allows
investors to evaluate current performance in relation to historic performance
without considering this non-cash charge.
The
Company’s management uses this non-GAAP information internally to help assess
performance in the current period versus historical performance (especially
prior periods where this non-cash charge was not included). Disclosure of
non-GAAP earnings to exclude the effect of FAS 123(R) has economic substance
because the excluded expenses do not represent current or future cash
expenditures.
A
reconciliation of non-GAAP earnings, to exclude the effect of FAS 123(R),
to
GAAP earnings can be found in the attached financial table. The use of non-GAAP
earnings is intended to supplement, not to replace, presentation of GAAP
earnings. Like all non-GAAP financial measures, non-GAAP earnings are subject
to
inherent limitations because all of the expenses required by GAAP are not
included. The limitations are compensated by the fact that non-GAAP earnings
are
not relied on exclusively, but are used to simply supplement GAAP
earnings.
Safe
Harbor
Statement
This
news
release contains forward-looking statements within the meaning of Section
27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act, as amended, that are based on management's belief, assumptions,
current expectations, estimates and projections about the global automotive
industry, the economy, the impact of stock option expenses on earnings, the
ability to leverage fixed manufacturing overhead costs, unit shipment and
revenue growth rates, top line growth rates, gross margins, and the Company
itself. Words like "anticipates," "believes," "confident,"
"estimates," "expects," "forecast," "likely," "plans," "projects," and "should,"
and variations of such words and similar expressions identify forward-looking
statements. These statements do not guarantee future performance and
involve certain risks, uncertainties, and assumptions that are difficult
to
predict with regard to timing, expense, likelihood and degree of
occurrence. These risks include, without limitation, employment and
general economic conditions, the pace of automotive production worldwide,
the
maintenance of the Company’s relative market share, competitive pricing
pressures, currency fluctuations, the financial strength of the Company's
customers, supply chain disruptions, potential sale of OEM business segments
or
suppliers, the mix of products purchased by customers, the ability to continue
to make product innovations, the success of certain newer products (e.g.
SmartBeam®, Z-Nav® and
Rear Camera
Display Mirror), and other risks identified in the Company's filings with
the
Securities and Exchange Commission. Therefore, actual results and
outcomes may materially differ from what is expressed or
forecasted. Furthermore, the Company undertakes no obligation to
update, amend, or clarify forward-looking statements, whether as a result
of new
information, future events, or otherwise.
Fourth
Quarter Conference
Call
A
conference call related to this news release will be simulcast live on the
Internet beginning at 10:30 a.m. Eastern Time 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. Many of the mirrors are sold with advanced
electronic features, and approximately 96 percent of the Company’s revenues are
derived from the sales of auto-dimming mirrors to nearly every major automaker
in the world.
GENTEX
CORPORATION AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
Three
Months Ended
|
Year
Ended
|
|||||||||||||||
|
December
31,
|
December
31,
|
|||||||||||||||
|
2007
|
2006
|
2007
|
2006
|
|||||||||||||
|
Net
Sales
|
$ | 170,722,639 | $ | 149,589,602 | $ | 653,933,236 | $ | 572,267,073 | ||||||||
|
Costs
and Expenses
|
||||||||||||||||
|
Cost
of Goods Sold
|
112,303,124 | 97,493,721 | 426,236,241 | 373,163,484 | ||||||||||||
|
Engineering,
Research & Development
|
12,740,981 | 11,115,661 | 50,715,057 | 41,773,792 | ||||||||||||
|
Selling,
General & Administrative
|
9,068,837 | 7,841,410 | 35,280,846 | 30,882,821 | ||||||||||||
|
Litigation
Judgment
|
2,885,329 | 0 | 2,885,329 | 0 | ||||||||||||
|
Other
Expense (Income)
|
(13,725,745 | ) | (11,756,683 | ) | (40,923,005 | ) | (32,526,622 | ) | ||||||||
|
Total
Costs and Expenses
|
123,272,526 | 104,694,109 | 474,194,468 | 413,293,475 | ||||||||||||
|
Income
Before Income Taxes
|
47,450,113 | 44,895,493 | 179,738,768 | 158,973,598 | ||||||||||||
|
Provision
for Income Taxes
|
15,600,391 | 14,079,519 | 57,608,747 | 50,212,596 | ||||||||||||
|
Net
Income
|
$ | 31,849,722 | $ | 30,815,974 | $ | 122,130,021 | $ | 108,761,002 | ||||||||
|
Earnings
Per Share
|
||||||||||||||||
|
Basic
|
$ | 0.22 | $ | 0.22 | $ | 0.85 | $ | 0.74 | ||||||||
|
Diluted
|
$ | 0.22 | $ | 0.22 | $ | 0.85 | $ | 0.73 | ||||||||
|
Weighted
Average Shares:
|
||||||||||||||||
|
Basic
|
143,995,387 | 142,219,264 | 143,056,704 | 147,950,666 | ||||||||||||
|
Diluted
|
145,188,679 | 142,695,329 | 144,070,297 | 148,494,363 | ||||||||||||
|
Cash
Dividends Declared per Share
|
$ | 0.105 | $ | 0.095 | $ | 0.40 | $ | 0.37 | ||||||||
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
Dec
31,
|
Dec
31,
|
|||||||
|
2007
|
2006
|
|||||||
|
ASSETS
|
||||||||
|
Cash
and Short-Term Investments
|
$ | 397,988,781 | $ | 328,227,710 | ||||
|
Other
Current Assets
|
130,505,167 | 118,650,384 | ||||||
|
Total
Current Assets
|
528,493,948 | 446,878,094 | ||||||
|
Plant
and Equipment - Net
|
205,609,671 | 184,134,373 | ||||||
|
Long-Term
Investments and Other Assets
|
163,919,061 | 154,015,933 | ||||||
|
Total
Assets
|
$ | 898,022,680 | $ | 785,028,400 | ||||
|
LIABILITIES
AND SHAREHOLDERS' INVESTMENT
|
||||||||
|
Current
Liabilities
|
$ | 68,362,705 | $ | 57,362,978 | ||||
|
Long-Term
Debt
|
0 | 0 | ||||||
|
Deferred
Income Taxes
|
22,847,779 | 24,971,133 | ||||||
|
Shareholders'
Investment
|
806,812,196 | 702,694,289 | ||||||
|
Total
Liabilities & Shareholders' Investment
|
$ | 898,022,680 | $ | 785,028,400 | ||||
|
AUTO-DIMMING
MIRROR UNIT SHIPMENTS
(Thousands)
|
||||||||||||||||||||||||
|
Fourth
Quarters
Ended
December 31,
|
Years
Ended
December
31,
|
|||||||||||||||||||||||
|
2007
|
2006
|
%
Change
|
2007
|
2006
|
%
Change
|
|||||||||||||||||||
|
Domestic
Interior
|
1,247 | 1,050 | 19 | % | 4,907 | 4,258 | 15 | % | ||||||||||||||||
|
Domestic
Exterior
|
452 | 414 | 9 | % | 1,768 | 1,784 | -1 | % | ||||||||||||||||
|
Total
Domestic Units
|
1,699 | 1,465 | 16 | % | 6,676 | 6,043 | 10 | % | ||||||||||||||||
|
Foreign
Interior
|
1,589 | 1,359 | 17 | % | 6,093 | 5,168 | 18 | % | ||||||||||||||||
|
Foreign
Exterior
|
574 | 592 | -3 | % | 2,452 | 2,217 | 11 | % | ||||||||||||||||
|
Total
Foreign Units
|
2,163 | 1,952 | 11 | % | 8,545 | 7,385 | 16 | % | ||||||||||||||||
|
Total
Interior Mirrors
|
2,836 | 2,411 | 18 | % | 11,000 | 9,426 | 17 | % | ||||||||||||||||
|
Total
Exterior Mirrors
|
1,026 | 1,006 | 2 | % | 4,220 | 4,001 | 6 | % | ||||||||||||||||
|
Total
Mirror Units
|
3,863
|
3,417 | 13 | % | 15,221 | 13,427 | 13 | % | ||||||||||||||||
Note:
Certain prior year amounts have been reclassified to conform with the current
year presentation. Amounts may not total due to rounding.
GENTEX
CORPORATION AND SUBSIDIARIES
STATEMENTS
OF INCOME RECONCILIATION
NON-GAAP
MEASUREMENT TO GAAP
|
Three
Months Ended December 31, 2007
|
Three
Months Ended December 31, 2006
|
|||||||||||||||||||||||||||||||
|
GAAP
|
Stock
Option Expense
|
(Non-GAAP
Excluding Stock Option Expense)
|
GAAP
|
Stock
Option Expense
|
(Non-GAAP
Excluding Stock Option Expense)
|
GAAP
2007 vs. 2006 % Change
|
Non-GAAP
2007 vs. 2006 % Change
|
|||||||||||||||||||||||||
|
Net
Sales
|
$ | 170,722,639 | $ | 0 | $ | 170,722,639 | $ | 149,589,602 | $ | 0 | $ | 149,589,602 | 14.1 | % | 14.1 | % | ||||||||||||||||
|
Costs
and Expenses
|
||||||||||||||||||||||||||||||||
|
Cost
of Goods Sold
|
112,303,124 | (646,046 | ) | 111,657,078 | 97,493,721 | (582,524 | ) | 96,911,197 | 15.2 | % | 15.2 | % | ||||||||||||||||||||
|
Engineering,
Research & Development
|
12,740,981 | (705,700 | ) | 12,035,281 | 11,115,661 | (621,129 | ) | 10,494,532 | 14.6 | % | 14.7 | % | ||||||||||||||||||||
|
Selling,
General & Administrative
|
9,068,837 | (667,146 | ) | 8,401,691 | 7,841,410 | (577,582 | ) | 7,263,828 | 15.7 | % | 15.7 | % | ||||||||||||||||||||
|
Litigation
Judgment
|
2,885,329 | 0 | 2,885,329 | 0 | 0 | 0 | ||||||||||||||||||||||||||
|
Other
Expense (Income)
|
(13,725,745 | ) | 0 | (13,725,745 | ) | (11,756,683 | ) | 0 | (11,756,683 | ) | 16.7 | % | 16.7 | % | ||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||
|
Total
Costs and Expenses
|
123,272,526 | (2,018,892 | ) | 121,253,634 | 104,694,109 | (1,781,235 | ) | 102,912,874 | 17.7 | % | 17.8 | % | ||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||
|
Income
Before Provision for Income Taxes
|
47,450,113 | 2,018,892 | 49,469,005 | 44,895,493 | 1,781,235 | 46,676,728 | 5.7 | % | 6.0 | % | ||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||
|
Provision
for Income Taxes
|
15,600,391 | 725,609 | 16,326,000 | 14,079,519 | 740,481 | 14,820,000 | 10.8 | % | 10.2 | % | ||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||
|
Net
Income
|
31,849,722 | 1,293,283 | 33,143,005 | $ | 30,815,974 | $ | 1,040,754 | $ | 31,856,728 | 3.4 | % | 4.0 | % | |||||||||||||||||||
|
Year
Ended December 31, 2007
|
Year
Ended December 31, 2006
|
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|
GAAP
|
Stock
Option Expense
|
(Non-GAAP
Excluding Stock Option Expense)
|
GAAP
|
Stock
Option Expense
|
(Non-GAAP
Excluding Stock Option Expense)
|
GAAP
2007 vs. 2006 % Change
|
Non-GAAP
2007 vs. 2006 % Change
|
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|
Net
Sales
|
$ | 653,933,236 | $ | 0 | $ | 653,933,236 | $ | 572,267,073 | $ | 0 | $ | 572,267,073 | 14.3 | % | 14.3 | % | ||||||||||||||||
|
Costs
and Expenses
|
||||||||||||||||||||||||||||||||
|
Cost
of Goods Sold
|
426,236,241 | (2,422,610 | ) | 423,813,631 | 373,163,484 | (2,265,581 | ) | 370,897,903 | 14.2 | % | 14.3 | % | ||||||||||||||||||||
|
Engineering,
Research & Development
|
50,715,057 | (2,616,038 | ) | 48,099,019 | 41,773,792 | (2,502,577 | ) | 39,271,215 | 21.4 | % | 22.5 | % | ||||||||||||||||||||
|
Selling,
General & Administrative
|
35,280,846 | (2,462,844 | ) | 32,818,002 | 30,882,821 | (2,289,977 | ) | 28,592,844 | 14.2 | % | 14.8 | % | ||||||||||||||||||||
|
Litigation
Judgment
|
2,885,329 | 0 | 2,885,329 | 0 | 0 | 0 | ||||||||||||||||||||||||||
|
Other
Expense (Income)
|
(40,923,005 | ) | 0 | (40,923,005 | ) | (32,526,622 | ) | 0 | (32,526,622 | ) | 25.8 | % | 25.8 | % | ||||||||||||||||||
|
Total
Costs and Expenses
|
474,194,468 | (7,501,492 | ) | 466,692,976 | 413,293,475 | (7,058,135 | ) | 406,235,340 | 14.7 | % | 14.9 | % | ||||||||||||||||||||
|
Income
Before Provision for Income Taxes
|
179,738,768 | 7,501,492 | 187,240,260 | 158,973,598 | 7,058,135 | 166,031,733 | 13.1 | % | 12.8 | % | ||||||||||||||||||||||
|
Provision
for Income Taxes
|
57,608,747 | 4,195,253 | 61,804,000 | 50,212,596 | 2,503,404 | 52,716,000 | 14.7 | % | 17.2 | % | ||||||||||||||||||||||
|
Net
Income
|
122,130,021 | 3,306,239 | 125,436,260 | $ | 108,761,002 | $ | 4,554,731 | $ | 113,315,733 | 12.3 | % | 10.7 | % | |||||||||||||||||||