Gencor Industries Inc. (GENC) filed Quarterly Report for the period ended 2012-06-30.

Gencor Industries, Inc. (de) has a market cap of $60 million; its shares were traded at around $7.72 with a P/E ratio of 249.7 and P/S ratio of 1.

Highlight of Business Operations:As a result of timing and production schedules of a very large contract and resultant revenue recognition, approximately 44% of total net revenue in the June 30, 2012 quarter and 6% of total net revenue for the June 30, 2011 quarter were from one or more separate U.S. corporate entities ultimately affiliated with a foreign-based global company. For the nine months ended June 30, 2012 and June 30, 2011, this company represented 27% and 7% of total net revenue, respectively.

As a percent of net revenue, gross profit margins increased to 21.4% in the nine months ended June 30, 2012 from 16.7% in the nine months ended June 30, 2011. The improved gross margins in 2012 resulted primarily from sales mix and improved manufacturing efficiencies.

The Company had operating income of $1,775,000 for the nine months ended June 30, 2012 versus an operating loss of $(362,000) for the nine months ended June 30, 2011. The improvement in operating results was due to increased sales and related margins.

As a result of timing and production schedules of a very large contract and resultant revenue recognition, approximately 44% of total net revenue in the June 30, 2012 quarter and 6% of total net revenue for the June 30, 2011 quarter were from one or more separate U.S. corporate entities ultimately affiliated with a foreign-based global company. For the nine months ended June 30, 2012 and June 30, 2011, this company represented 27% and 7% of total net revenue, respectively.

Return allowances, which reduce product revenue, are estimated using historical experience. The Company’s 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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