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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 27, 2005
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 27, 2005, Gentex Corporation issued a news release announcing results
for the 2004 fourth quarter and year to date. 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
(c) Exhibit
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99.1 - News Release Dated January 27, 2005.
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 27, 2005 GENTEX CORPORATION
(Registrant)
By: /s/ Enoch Jen
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Enoch Jen
Vice President - Finance and
Chief Financial Officer
EXHIBIT INDEX
99.1 News Release Dated January 27, 2005
CONTACT: Connie Hamblin RELEASE: January 27, 2005
(616) 772-1800
GENTEX REPORTS FOURTH QUARTER RESULTS
ZEELAND, Michigan, January 27, 2005 -- Gentex Corporation, 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, 2004.
The Company reported a two percent increase in revenues to a record of
$126.2 million for the quarter ended December 31, 2004. Fourth quarter net
income declined by two percent to $28.6 million compared with $29.1 million in
the fourth quarter last year. Earnings per diluted share were 37 cents in both
fourth quarter periods.
For the calendar year 2004, the Company reported an eight percent increase
in revenues to a record $505.7 million. Net income increased by six percent to
$112.7 million for calendar year 2004 compared with calendar year 2003. Earnings
per diluted share were $1.44 for calendar 2004 compared with $1.37 for calendar
year 2003.
"Despite another challenging quarter, there is evidence of improvement on
the margin side, as we have largely resolved the start-up production issues
associated with new manufacturing processes that we began in the third quarter
of 2004," said Gentex Executive Vice President Garth Deur.
Light vehicle production declines in North America contributed to the
continued weakness during the fourth quarter. While the Company reported a seven
percent overall increase in auto-dimming mirror unit shipments, that growth came
from a 17 percent unit shipment increase to offshore customers. Mirror unit
shipments to customers in North America declined by two percent, as light
vehicle production in that region declined by three percent.
Deur said that he believes that auto-dimming mirror unit shipments will be
flat to five percent higher in the first quarter of 2005 compared with the first
quarter of 2004, and that mirror unit shipments will increase approximately ten
percent for calendar year 2005 compared with calendar year 2004. These estimates
are based on light vehicle production forecasts in the regions to which the
Company ships product, as well as the expected option rates for its mirrors on
prospective vehicle models.
The Company has begun utilizing the light vehicle production forecasting
services of CSM Worldwide, and CSM's current forecasts for light vehicle
production for calendar 2005 are approximately 15.9 million units for North
America, 20.5 million for Europe and 13.1 million for Japan and Korea. For the
first quarter of 2005, CSM is forecasting light vehicle production of 4.0
million units in North America, 5.2 million units in Europe and 3.5 million
units in Japan and Korea. There is no significant difference in the overall
production numbers when comparing CSM's estimates to those of the Company's
previous vendor for the service.
Automotive revenues increased by two percent to $121.0 million in the
fourth quarter and by eight percent to $483.2 million for calendar year 2004
compared with the same periods last year. Fire Protection revenues declined nine
percent to $5.2 million for the fourth quarter and by one percent to $22.5
million for calendar year 2004 compared with the same prior year periods.
Auto-dimming mirror unit shipments to customers in North America declined
by two percent in the fourth quarter and increased by three percent in calendar
year 2004 compared with the same 2003 periods. North American light vehicle
production declined by three percent in the fourth quarter and declined by one
percent for calendar year 2004 compared with the same periods in 2003.
Unit shipments to offshore customers increased by 17 percent in the fourth
quarter and 26 percent for calendar year 2004, compared with the same periods
last year. The higher growth in offshore unit shipments is primarily
attributable to increased vehicle penetration in the European and Asia-Pacific
regions. Light vehicle production in Western Europe declined five percent in the
fourth quarter and by one percent for calendar year 2004 compared with the same
periods in 2003.
Total auto-dimming mirror unit shipments in the fourth quarter were
approximately 2.9 million, a seven percent increase over the same period last
year. For calendar year 2004, total unit shipments reached a record 11.6
million, a 13 percent increase over calendar year 2003.
Certain matters discussed in this news release, including the ability to
take advantage of manufacturing improvements and unit shipment growth rates, are
forward-looking statements which involve certain risks and uncertainties, and
are subject to change based on various market, industry and other important
factors. The Company cautions investors that numerous factors (some of which are
outlined in the Company's Form 10-K filed with the Securities and Exchange
Commission and other interim reports) and future events may affect the Company's
actual results, and may cause those results to differ materially from those
expressed in this news release. Furthermore, Gentex 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 9:30 a.m. Eastern Standard 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.
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 more than 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,
------------------------------- -------------------------------
2004 2003 2004 2003
-------------- -------------- -------------- --------------
Net Sales $ 126,235,803 $ 123,914,515 $ 505,666,335 $ 469,019,365
Costs and Expenses
Cost of Goods Sold 75,531,914 70,896,590 297,920,747 272,518,466
Engineering, Research & Development 8,085,679 7,151,010 30,833,627 26,613,770
Selling, General & Administrative 6,670,249 6,001,114 26,845,748 23,311,853
Other Expense (Income) -5,849,457 -3,218,392 -15,666,305 -11,588,919
-------------- -------------- -------------- --------------
Total Costs and Expenses 84,438,385 80,830,322 339,933,817 310,855,170
-------------- -------------- -------------- --------------
Income Before Income Taxes 41,797,418 43,084,193 165,732,518 158,164,195
Provision for Income Taxes 13,166,000 14,003,000 53,076,000 51,403,000
-------------- -------------- -------------- --------------
Net Income $ 28,631,418 $ 29,081,193 $ 112,656,518 $ 106,761,195
============== ============== ============== ==============
Earnings Per Share
Basic $ 0.37 $ 0.38 $ 1.46 $ 1.39
Diluted $ 0.37 $ 0.37 $ 1.44 $ 1.37
Weighted Average Shares:
Basic 77,442,479 76,633,413 77,160,671 76,584,876
Diluted 78,266,140 78,154,561 78,360,616 77,684,490
CONDENSED CONSOLIDATED BALANCE SHEETS
DEC 31, DEC 31,
2004 2003
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ASSETS
Cash and Short-Term Investments $ 494,880,260 $ 393,606,656
Other Current Assets 97,728,834 91,742,675
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Total Current Assets 592,609,094 485,349,331
Plant and Equipment - Net 135,649,119 126,806,882
Long-Term Investments and Other Assets 128,601,215 150,373,553
-------------- --------------
Total Assets $ 856,859,428 $ 762,529,766
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LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities $ 50,856,258 $ 50,480,480
Long-Term Debt 0 0
Deferred Income Taxes 22,723,198 18,405,955
Shareholders' Investment 783,279,972 693,643,331
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Total Liabilities & Shareholders' Investmen$ 856,859,428 $ 762,529,766
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[LOGO OF GENTEX CORPORATION]
AUTO-DIMMING MIRROR UNIT SHIPMENTS
(Thousands)
FOURTH QUARTER YEAR ENDED
ENDED DECEMBER 31, DECEMBER 31,
----------------------- ---------- ----------------------- ----------
2004 2003 % Change 2004 2003 % Change
---------- ---------- ---------- ---------- ---------- ----------
Domestic Interior 986 1,026 -4% 3,996 3,863 3%
Domestic Exterior 443 436 2% 1,754 1,730 1%
Total Domestic Units 1,429 1,462 -2% 5,750 5,592 3%
Foreign Interior 1,106 891 24% 4,367 3,269 34%
Foreign Exterior 366 363 1% 1,523 1,399 9%
Total Foreign Units 1,471 1,254 17% 5,890 4,668 26%
Total Interior Mirrors 2,091 1,917 9% 8,363 7,132 17%
Total Exterior Mirrors 809 799 1% 3,277 3,128 5%
Total Mirror Units 2,900 2,716 7% 11,640 10,260 13%
Note: Certain prior year amounts have been reclassified to conform with the
current year presentation. Amounts may not total due to rounding.
END OF FILING