Gencor Releases Second Quarter Fiscal 2016 Results
May 09 2016 - 4:30PM
Gencor Industries, Inc. (Nasdaq:GENC) announced today net revenue
for the quarter ended March 31, 2016 increased 60.5% to $22.1
million from $13.8 million for the quarter ended March 31,
2015. Gross margin was 24.6% for the quarter ended March 31,
2016 compared with 26.4% for the quarter ended March 31,
2015. Selling, general and administrative (“SG&A”)
expenses increased $414,000 to $2,190,000 for the quarter ended
March 31, 2016, from $1,776,000 for the quarter ended March 31,
2015. Increased staffing along with higher sales commissions
contributed to the increased SG&A expenses. Operating income
for the quarter ended March 31, 2016 was $2.9 million compared to
$1.5 million for the quarter ended March 31, 2015.
The Company had non-operating expenses of $(0.3)
million for the quarter ended March 31, 2016 compared to
non-operating income of $0.4 million for the quarter ended March
31, 2015. Net income was $1.6 million, or $0.17 per basic and
diluted share, for the quarter ended March 31, 2016, compared to
$1.2 million, or $0.12 per basic and diluted share, for the quarter
ended March 31, 2015.
For the six months ended March 31, 2016 the
Company had net revenue of $35.3 million and net income of $3.2
million ($0.34 per basic share and $0.33 per diluted share) versus
net revenue of $20.0 million and net income of $0.1 million ($0.01
per basic and diluted share) for the six months ended March 31,
2015.
At March 31, 2016, the Company had $102.2
million of cash and marketable securities compared to $95.5 million
at September 30, 2015. Net working capital was $109.5 million
at March 31, 2016. The Company has no short or long term
debt.
E.J. Elliott, Gencor’s CEO & Chairman, commented, “Revenue
growth in the second quarter and first half of 2016 has been strong
as sales, since the signing of the five year FAST Act, have
exceeded our expectations. The Company’s second quarter’s gross
margins of 24.6% are consistent with first quarter’s gross margins,
reflecting efficient operations and good cost controls. First
half fiscal 2016 revenues of $35.3 million and gross margins of
24.7% represent the Company’s best first half performance since
2008. SG&A increased moderately, primarily due to higher sales
commissions.
Domestic demand for our products continues to be robust.
Customers have begun making inquiries for shipments of our asphalt
plants into 2017. Typically, customers start planning the
purchase of next year’s equipment in the fall. We are hopeful
that many of these opportunities will turn into orders.
With the first half of fiscal 2016 complete and a backlog of
$31.6 million going into the third quarter, I am optimistic that
fiscal 2016 revenues will be up significantly from fiscal
2015. On the cost side, we continue to benefit from tight
controls on costs. This should result in a continued improvement in
operating margins.”
Gencor Industries is a diversified heavy
machinery manufacturer of equipment used in the production of
highway construction materials, synthetic fuels, and environmental
control machinery and equipment used in a variety of industrial
applications.
Caution Concerning Forward Looking Statements -
This press release and our other communications and statements may
contain “forward-looking statements,” including statements 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, 2015; (a) “Risk Factors” in Part I,
Item 1A and (b) “Management’s Discussion and Analysis of
Financial Condition 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 this 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
Gencor Industries (AMEX:GENC)
Historical Stock Chart
From Sep 2024 to Oct 2024
Gencor Industries (AMEX:GENC)
Historical Stock Chart
From Oct 2023 to Oct 2024