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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: January 26, 2006
GENTEX CORPORATION
(Exact Name of Registrant as Specified in Charter)
Michigan 0-10235 38-2030505
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
600 North Centennial Street
Zeeland, Michigan 49464
(Address of principal executive office) (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:
[ ] Written communications pursuant to Rule 425 under the Section
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 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITIONS
On January 26, 2006, Gentex Corporation issued a news release announcing results
for the fourth quarter and year ended December 31, 2005. 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 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibit
99.1 - News Release Dated January 26, 2006.
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 26, 2006 GENTEX CORPORATION
(Registrant)
By: /s/ Enoch Jen
-----------------------------------
Enoch Jen
Vice President - Finance and
Chief Financial Officer
EXHIBIT INDEX
99.1 News Release Dated January 26, 2006.
Exhibit 99.1
CONTACT: Connie Hamblin RELEASE: January 26, 2006
(616) 772-1800
GENTEX REPORTS RECORD REVENUES FOR FOURTH QUARTER
ZEELAND, Michigan, January 26, 2006 -- Gentex Corporation, the Zeeland,
Michigan-based manufacturer of automatic-dimming rearview mirrors and commercial
fire protection products, today reported revenues and net income for the fourth
quarter and year ended December 31, 2005.
The Company reported record revenues for the fourth quarter of 2005 of
$138.3 million, a 10 percent increase over revenues of $126.2 million reported
in the fourth quarter last year. Fourth quarter net income of $29.6 million
increased by three percent compared with net income of $28.6 million in the
comparable 2004 quarter. Earnings per diluted share were 19 cents in the fourth
quarter of 2005 compared with 18 cents in the fourth quarter of 2004. All per
share data reflects the two-for-one stock split effected in the form of a 100
percent common stock dividend that became effective on May 9, 2005.
For calendar year 2005, the Company posted net income of $109.5 million
on revenues of $536.5 million, compared with net income of $112.7 million on
revenues of $505.7 million for calendar year 2004. Earnings per diluted share
were 70 cents for calendar year 2005 compared with 72 cents for calendar 2004.
"2005 will go down as a year of significant accomplishments and
challenges for Gentex," said Gentex Executive Vice President Garth Deur. "Not
only did we continue to grow our business despite a challenging automotive
environment, but we also introduced a number of new product and manufacturing
process technologies."
Mirror unit shipments in North America in the fourth quarter increased
by seven percent while light vehicle production in that market increased by four
percent. The increase in unit shipments in North America was primarily due to
higher shipments to European and Asian transplant automakers, partially offset
by lower-than-forecasted production of SUVs at certain North American
automakers. Unit shipments to offshore automakers increased by 17 percent during
the quarter, primarily due to increased shipments to European automakers. Light
vehicle production declined by one percent in Europe and increased by six
percent in the Japanese and Korean markets in the fourth quarter of 2005
compared with the same quarter last year.
The Company reported a lower-than-expected sequential gross margin in
the fourth quarter, which was primarily attributable to lower than forecasted
sales, a full quarter's worth of the annual customer price reductions that
became effective in the third quarter, and not achieving improvements in
manufacturing processes that would have offset these factors.
"The start-up challenges on certain production lines are taking longer
to work through than the Company previously anticipated and these issues are
making it more difficult for the Company to offset ongoing customer price
reductions," said Deur. "As we indicated last quarter, our people are working
relentlessly to make the required improvements, and we may have been a bit too
optimistic about how quickly some of the issues could be addressed."
Total auto-dimming mirror unit shipments for the fourth quarter of 2005
increased by 12 percent to 3,247,000 units, compared with 2,900,000 units for
the same quarter in 2004. Total automotive revenues in the fourth quarter of
2005 increased by ten percent to $133.0 million, compared with the same quarter
last year.
Total auto-dimming mirror unit shipments for calendar year 2005
increased by eight percent to 12,570,000 units, compared with 11,640,000 units
for calendar year 2004. Total automotive revenues increased by six percent for
calendar year 2005 to $512.8 million, compared with the same period in 2004.
For calendar year 2005, auto-dimming mirror unit shipments in North
America increased by four percent compared with calendar year 2004, while light
vehicle production was flat for the year. Mirror unit shipments to offshore
customers increased by 12 percent in calendar year 2005, compared with calendar
year 2004. During calendar year 2005, light vehicle production was flat in
Europe and increased by five percent in the Japanese and Korean markets,
compared with calendar year 2004.
For the first quarter of 2006, and for calendar year 2006, the Company
estimates that the growth in mirror unit shipments will be approximately ten
percent higher than comparable periods in 2005. This estimate is based on CSM's
light vehicle production forecast for calendar year 2006 of 15.8 million vehicle
units in North America, 19.9 million units in Europe and 13.7 million units in
Japan and Korea.
Revenues in the Company's Fire Protection Products Group increased by
three percent in the fourth quarter of 2005 to $5.3 million, compared with the
fourth quarter last year. For calendar year 2005, fire protection revenues
increased by five percent to $23.7 million.
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 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 (e.g. unit shipment
growth estimates). 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 economic recovery in the U.S. and in international
markets, the pace of automotive production worldwide, the types of products
purchased by customers, competitive pricing pressures, currency fluctuations,
the financial strength of the Company's customers, the mix of products purchased
by customers, the ability to continue to make product innovations, the success
of certain products, 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.
A conference call related to this news release will be simulcast live
on the Internet beginning at 10:30 a.m. Eastern 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.
Founded in 1974, Gentex Corporation (Nasdaq: 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 95 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,
--------------------------------- ---------------------------------
2005 2004 2005 2004
--------------- --------------- --------------- ---------------
Net Sales $ 138,342,912 $ 126,235,803 $ 536,483,974 $ 505,666,335
Costs and Expenses
Cost of Goods Sold 88,517,406 75,531,914 337,843,632 297,920,747
Engineering, Research & Development 9,143,355 8,085,679 35,059,401 30,833,627
Selling, General & Administrative 6,673,179 6,670,249 27,286,404 26,845,748
Other Expense (Income) (9,227,700) (5,849,457) (23,599,974) (15,666,305)
--------------- --------------- --------------- ---------------
Total Costs and Expenses 95,106,240 84,438,385 376,589,463 339,933,817
--------------- --------------- --------------- ---------------
Income Before Income Taxes 43,236,672 41,797,418 159,894,511 165,732,518
Provision for Income Taxes 13,619,000 13,166,000 50,367,000 53,076,000
--------------- --------------- --------------- ---------------
Net Income $ 29,617,672 $ 28,631,418 $ 109,527,511 $ 112,656,518
=============== =============== =============== ===============
Earnings Per Share
Basic $ 0.19 $ 0.18 $ 0.70 $ 0.73
Diluted $ 0.19 $ 0.18 $ 0.70 $ 0.72
Weighted Average Shares:
Basic 155,067,076 154,884,958 155,438,834 154,321,342
Diluted 156,681,350 156,532,280 157,030,624 156,721,232
CONDENSED CONSOLIDATED BALANCE SHEETS
Dec 31, Dec 31,
2005 2004
-------------- --------------
ASSETS
Cash and Short-Term Investments $ 507,013,621 $ 494,880,260
Other Current Assets 111,973,906 97,728,834
-------------- --------------
Total Current Assets 618,987,527 592,609,094
Plant and Equipment - Net 164,030,341 135,649,119
Long-Term Investments and Other
Assets 139,627,934 128,601,215
-------------- --------------
Total Assets $ 922,645,802 $ 856,859,428
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LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities $ 58,088,259 $ 50,856,258
Long-Term Debt 0 0
Deferred Income Taxes 22,962,168 22,723,198
Shareholders' Investment 841,595,375 783,279,972
-------------- --------------
Total Liabilities & Shareholders' Investment $ 922,645,802 $ 856,859,428
============== ==============
Note: All earnings per share amounts and weighted daily average shares
outstanding reflect the 2-for-1 stock split effected in the form of a 100%
common stock dividend effective on May 9, 2005.
AUTO-DIMMING MIRROR UNIT SHIPMENTS
(Thousands)
FOURTH QUARTER YEAR ENDED
ENDED DECEMBER 31, DECEMBER 31,
------------------- -------------------
2005 2004 % CHANGE 2005 2004 % CHANGE
-------- -------- -------- -------- -------- --------
Domestic Interior 1,087 986 10% 4,198 3,996 5%
Domestic Exterior 446 443 1% 1,797 1,754 3%
Total Domestic Units 1,533 1,429 7% 5,995 5,750 4%
Foreign Interior 1,199 1,106 8% 4,726 4,367 8%
Foreign Exterior 515 366 41% 1,849 1,523 21%
Total Foreign Units 1,713 1,471 17% 6,575 5,890 12%
Total Interior Mirrors 2,286 2,091 9% 8,924 8,363 7%
Total Exterior Mirrors 961 809 19% 3,646 3,277 11%
Total Mirror Units 3,247 2,900 12% 12,570 11,640 8%
Note: Certain prior year amounts have been reclassified to conform with the
current year presentation. Amounts may not total due to rounding.
