Gencor Industries Inc. has a market cap of $56.94 million; its shares were traded at around $7.17 with a P/E ratio of 237 and P/S ratio of 0.95.
Highlight of Business Operations:Net revenues for the quarters ended December 31, 2011 and December 31, 2010 were $6,864,000 and $7,785,000, respectively. Revenues were down from prior year as bookings in the current period were placed later in the quarter as compared to 2010. The Companys operations are concentrated in the asphalt-related business and are typically subject to a seasonal slow-down during the third and fourth quarters of the calendar year.
The Companys working capital (defined as current assets less current liabilities) was equal to $91.0 million at December 31, 2011 and $89.8 million at September 30, 2011. For the quarter ended December 31, 2011, inventory and customer deposits increased as the Company received orders for several asphalt plants during the quarter ended December 31, 2011 and began manufacturing for delivery during the first and second quarters of calendar 2012. Costs and estimated earnings in excess of billings was down due to the timing of production and revenue recognition for projects under the percentage-of-completion contracts which were booked late in the current quarter as compared to projects in progress at September 30, 2011. Accounts payable increased due to an increase in inventories.
Return allowances, which reduce product revenue, are estimated using historical experience. The Companys customers may qualify for certain cash rebates generally based on the level of sales attained during a twelve-month period. Provisions for these rebates, as well as estimated returns and allowances and other adjustments are provided for in the same period the related sales are recorded.
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