Gencor Releases Fourth Quarter and Fiscal Year 2016 Results
December 02 2016 - 8:00AM
Gencor Industries, Inc., (NASDAQ:GENC) announced today net revenue
for the quarter ended September 30, 2016 increased 79.3% to $14.8
million compared to $8.2 million for the quarter ended September
30, 2015. Gross margin as a percentage of net revenue
increased 80.3% to 24.7% for the quarter ended September 30, 2016
from 13.7% for the quarter ended September 30, 2015. The
increase in gross margin was due to increased production resulting
in better overhead absorption.
Income from operations for the quarter ended
September 30, 2016 was $1.0 million compared to loss of $(1.0)
million for the quarter ended September 30, 2015. The Company had
non-operating income of $0.3 million for the quarter ended
September 30, 2016 compared to a non-operating loss of $(3.1)
million for the quarter ended September 30, 2015. The Company had a
tax benefit of ($0.4) million for the quarter ended September 30,
2016 compared to a tax benefit of $(1.9) million for the quarter
ended September 30, 2015. Net income for the quarter ended
September 30, 2016 was $1.7 million ($0.12 per basic and diluted
share) compared to a net loss of $(2.2) million ($(0.15) per basic
and diluted share) for the quarter ended September 30,
2015.
Net revenue for the year ended September 30,
2016 increased 78.4% to $70.0 million compared to $39.2 million for
the year ended September 30, 2015. Gross margin as a percentage of
net revenue increased to 25.0% for the year ended September 30,
2016 from 19.1% for the year ended September 30, 2015. The Company
had operating income for the year ended September 30, 2016 of $7.8
million compared to an operating loss of $(0.8) million for the
year ended September 30, 2015.
The Company had non-operating income of $1.6
million for the year ended September 30, 2016 compared to a
non-operating loss of $(2.8) million for the year ended September
30, 2015. The effective income tax rate for fiscal 2016 was 25.1%
versus a tax benefit of (48.7%) in fiscal 2015. The Company’s net
income was $7.0 million ($0.49 per basic share and $0.48 per
diluted share) for the year ended September 30, 2016, compared to a
net loss of $(1.8) million ($(0.13) per basic and diluted share)
for the year ended September 30, 2015.
At September 30, 2016 the Company had $104.1
million in cash and marketable securities, an increase of $8.6
million over the September 30, 2015 balance of $95.5 million. Net
working capital was $115.2 million at September 30, 2016. The
Company has no short or long term debt.
E.J. Elliott, Gencor’s Chairman, commented, “Our
industry has been rejuvenated and Gencor’s results are reflecting
it. Our fourth quarter 2016 revenues increased 79% which is
on top of a 68% increase in revenues in the fourth quarter
2015. What is typically our slowest quarter from a revenue
perspective, this year we experienced an improvement. Orders
came in throughout the summer and customers were requesting
deliveries into the fall and early winter months.
“Gencor managed the 78% growth in fiscal 2016
revenues with good cost discipline. This resulted in an
increase in both gross margins and operating margins for the
quarter and fiscal year. Operating margins of 11% in fiscal
2016 reflect a significant improvement over recent years. Net
profit margins of 10% in fiscal 2016 were also notable.
“Backlog going into fiscal year 2017 reflects an
improved order flow which we expect to continue as the FAST Act has
provided the secured funding that the industry needs. Our backlog
at September 30, 2016 of $43 million represents a 131% increase
from a year ago. Order inquiry for our equipment across all
regions of the country continues to be promising.
“Our efficient operations and cost discipline
should result in fiscal 2017 operating margins that continue to
reflect the margin improvements we realized in fiscal 2016.
“In fiscal 2016 Gencor increased manufacturing
headcount by 30% and continues to actively hire to meet production
demands at both our Iowa and Florida facilities.”
Gencor Industries is a diversified heavy
machinery manufacturer for the production of highway construction
materials, synthetic fuels and environmental control machinery and
equipment used in a variety of applications.
Caution Concerning Forward Looking Statements -
This press release and our other communications and statements may
contain “forward-looking statement,” including statement about our
beliefs, plans, objectives, goals, expectations, estimates,
projections and intentions. These statements are subject to
significant risks and uncertainties and are subject to change based
on various factors, many of which are beyond our control. The
words “may,” “could,” “should,” “would,” “believe,” “anticipate,”
“estimate,” “expect,” “intend,” “plan,” “target,” “goal,” and
similar expressions are intended to identify forward-looking
statements. All forward-looking statements, by their nature,
are subject to risks and uncertainties. Our actual future
results may differ materially from those set forth in our forward
looking statements. For information concerning these factors
and related matters, see our Annual Report on Form 10-K for the
year ended September 30, 2016: (a) “Risk Factors” in Part I, Item
1A and (b) “Management’s Discussion and Analysis of Financial
Position and Results of Operations” in Part II, Item 7.
However, other factors besides those referenced could adversely
affect our results, and you should not consider any such list of
factors to be a complete set of all potential risks or
uncertainties. Any forward-looking statements made by us
herein speak as of the date of the press release. We do not
undertake to update any forward-looking statement, except as
required by law.
Contact: Eric Mellen, Chief Financial Officer
407-290-6000
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