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) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | 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. |
(a) | On January 30, 2019, Gentex Corporation issued a news release announcing financial results for the fourth quarter and year ended December 31, 2018. A copy of the news release is attached as Exhibit 99.1 to the Form 8-K. |
• | Full display mirror unit shipments increased 116% to 390,000 units for the year |
• | Gross profit margin improved sequentially to 37.9% for the fourth quarter of 2018, which included incremental tariff headwinds of 20 basis points versus the third quarter of 2018 |
• | Net income for calendar year 2018 was $437.9 million, up 8% compared with net income of $406.8 million in calendar year 2017 |
• | Earnings per diluted share increased 15% from $1.41 in 2017 to $1.62 in 2018 |
• | 3.3 million shares repurchased during the fourth quarter at an average price of $21 per share and 26.4 million shares repurchased during calendar year 2018 at an average price of $22.37 per share |
Light Vehicle Production (per IHS Markit January light vehicle production forecast) | ||||||||||
(in Millions) | ||||||||||
Region | Calendar Year 2020 | Calendar Year 2019 | Calendar Year 2018 | 2020 vs. 2019 % Change | 2019 vs. 2018 % Change | |||||
North America | 16.4 | 16.9 | 17.0 | (3 | )% | (1 | )% | |||
Europe | 22.2 | 21.9 | 21.9 | 1 | % | — | % | |||
Japan and Korea | 12.7 | 13.3 | 13.2 | (5 | )% | 1 | % | |||
China | 28.6 | 27.4 | 27.0 | 4 | % | 1 | % | |||
Total Light Vehicle Production | 79.9 | 79.5 | 79.1 | 1 | % | 1 | % |
2019 Guidance | |
Revenue | $1.83 - $1.93 billion |
Gross Margin | 36% - 37% |
Operating Expenses (E, R&D and S, G&A) | $195 - $200 million |
Estimated Annual Tax Rate | 16% - 18% |
Capital Expenditures | $90 - $100 million |
Depreciation & Amortization | $105 - $115 million |
Three Months Ended December 31, | Twelve Months ended December 31, | ||||||||||||||||
2018 | 2017 | % Change | 2018 | 2017 | % Change | ||||||||||||
North American Interior Mirrors | 2,201 | 2,206 | — | % | 8,838 | 8,899 | (1 | )% | |||||||||
North American Exterior Mirrors | 1,157 | 824 | 40 | % | 4,029 | 3,497 | 15 | % | |||||||||
Total North American Mirror Units | 3,359 | 3,030 | 11 | % | 12,867 | 12,396 | 4 | % | |||||||||
International Interior Mirrors | 5,039 | 4,996 | 1 | % | 20,813 | 19,433 | 7 | % | |||||||||
International Exterior Mirrors | 1,827 | 1,997 | (9 | )% | 7,925 | 7,513 | 5 | % | |||||||||
Total International Mirror Units | 6,866 | 6,992 | (2 | )% | 28,738 | 26,946 | 7 | % | |||||||||
Total Interior Mirrors | 7,240 | 7,202 | 1 | % | 29,651 | 28,332 | 5 | % | |||||||||
Total Exterior Mirrors | 2,984 | 2,821 | 6 | % | 11,954 | 11,010 | 9 | % | |||||||||
Total Auto-Dimming Mirror Units | 10,225 | 10,023 | 2 | % | 41,605 | 39,343 | 6 | % |
Three Months Ended December 31, | Twelve Months ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net Sales | $ | 453,408,719 | $ | 459,570,469 | $ | 1,834,063,697 | $ | 1,794,872,578 | |||||||
Cost of Goods Sold | 281,365,186 | 279,280,443 | 1,143,597,005 | 1,100,344,312 | |||||||||||
Gross profit | 172,043,533 | 180,290,026 | 690,466,692 | 694,528,266 | |||||||||||
Engineering, Research & Development | 26,996,140 | 24,560,492 | 107,134,862 | 99,726,438 | |||||||||||
Selling, General & Administrative | 19,548,094 | 21,735,468 | 75,206,283 | 71,443,476 | |||||||||||
Income from operations | 125,499,299 | 133,994,066 | 508,125,547 | 523,358,352 | |||||||||||
Other Income | 5,280,324 | 4,161,928 | 13,921,400 | 8,438,352 | |||||||||||
Income before Income Taxes | 130,779,623 | 138,155,994 | 522,046,947 | 531,796,704 | |||||||||||
Provision for Income Taxes | 24,505,068 | 7,687,095 | 84,163,850 | 125,004,782 | |||||||||||
Net Income | $ | 106,274,555 | $ | 130,468,899 | $ | 437,883,097 | $ | 406,791,922 | |||||||
Earnings Per Share | |||||||||||||||
Basic | $ | 0.41 | $ | 0.46 | $ | 1.64 | $ | 1.42 | |||||||
Diluted | $ | 0.41 | $ | 0.46 | $ | 1.62 | $ | 1.41 | |||||||
Weighted Average Shares | |||||||||||||||
Basic | 260,860,937 | 282,612,512 | 267,794,786 | 285,864,997 | |||||||||||
Diluted | 262,199,420 | 284,868,220 | 269,877,349 | 288,226,089 | |||||||||||
Cash Dividends Declared per Share | $ | 0.110 | $ | 0.100 | $ | 0.440 | $ | 0.390 |
December 31, 2018 | December 31, 2017 | ||||||
ASSETS | |||||||
Cash and Cash Equivalents | $ | 217,025,278 | $ | 569,734,496 | |||
Short-Term Investments | 169,412,999 | 152,538,054 | |||||
Accounts Receivable, net | 213,537,799 | 231,121,788 | |||||
Inventories | 225,281,599 | 216,765,583 | |||||
Other Current Assets | 25,672,579 | 14,403,902 | |||||
Total Current Assets | 850,930,254 | 1,184,563,823 | |||||
Plant and Equipment - Net | 498,473,766 | 492,479,330 | |||||
Goodwill | 307,365,845 | 307,365,845 | |||||
Long-Term Investments | 137,979,082 | 57,782,418 | |||||
Intangible Assets | 269,675,000 | 288,975,000 | |||||
Patents and Other Assets | 21,010,121 | 20,887,496 | |||||
Total Other Assets | 736,030,048 | 675,010,759 | |||||
Total Assets | $ | 2,085,434,068 | $ | 2,352,053,912 | |||
LIABILITIES AND SHAREHOLDERS' INVESTMENT | |||||||
Current Liabilities | $ | 169,160,919 | $ | 243,647,007 | |||
Long-Term Debt | — | — | |||||
Deferred Income Taxes | 54,521,489 | 58,888,644 | |||||
Shareholders' Investment | 1,861,751,660 | 2,049,518,261 | |||||
Total Liabilities & Shareholders' Investment | $ | 2,085,434,068 | $ | 2,352,053,912 |
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