Gentex Corp. (GNTX, Financial) filed Quarterly Report for the period ended 2009-06-30.
Gentex Corporation is an international company that provides high-quality products to the worldwide automotive industry and North American fire protection market. The Company develops manufactures and markets proprietary electro-optic products including interior and exterior electrochromic automatic-dimming Night Vision Safety automotive rearview mirrors that dim in proportion to the amount of headlight glare from trailing vehicle headlamps and an extensive line of fire protection products for commercial applications. Gentex Corp. has a market cap of $2.07 billion; its shares were traded at around $15.04 with a P/E ratio of 62.7 and P/S ratio of 3.3. The dividend yield of Gentex Corp. stocks is 2.9%. Gentex Corp. had an annual average earning growth of 10% over the past 10 years. GuruFocus rated Gentex Corp. the business predictability rank of 3-star.
Operating Expenses. Engineering, research and development (E, R & D) expenses for the current quarter decreased 16% and approximately $2,177,000 when compared with the same quarter last year, primarily due to reduced employee compensation expense. Selling, general and administrative expenses decreased 14% and approximately $1,398,000, for the current quarter, when compared with the same quarter last year, primarily due to reduced employee compensation expense and foreign exchange rates. Foreign exchange rates accounted for approximately four percentage points of the decrease in selling, general and administrative expenses.
Net Sales. Net sales for the six months ended June 30, 2009 decreased by approximately $137,289,000, or 39%, when compared with the same period last year. Net sales of the Companys automotive mirrors decreased by approximately $135,711,000, or 40% period over period, as auto-dimming mirror unit shipments decreased by 42% from approximately 8,080,000 in the first six months of 2008 to approximately 4,703,000 in the first six months of 2009. The decrease was primarily due to lower light vehicle production levels globally. Unit shipments to customers in North America decreased by 53% during the first six months of 2009 versus the same period in 2008, primarily due to lower light vehicle production levels. Mirror unit shipments to automotive customers outside North America decreased by 35% period over period, primarily due to lower light vehicle production levels in Asia and Europe. Net sales of the Companys fire protection products decreased 14% period over period, primarily due to the weak commercial construction market.
Operating Expenses. For the six months ended June 30, 2009, engineering, research and development expenses decreased 14% and approximately $3,533,000, when compared with the same period last year, primarily due to reduced employee compensation expense. Selling, general and administrative expenses decreased 13% and approximately $2,590,000 for the six months ended June 30, 2009, when compared with the same period last year, primarily due to reduced employee compensation expense and foreign exchange rates. Foreign exchange rates accounted for approximately four percentage points of the decrease in selling, general and administrative expenses.
Cash flow from operating activities for the six months ended June 30, 2009, decreased approximately $22,794,000 to approximately $49,538,000, compared with approximately $72,331,000, for the same period last year, primarily due to the decrease in net income, partially offset by a decrease in inventory and prepaid expenses. Capital expenditures for the six months ended June 30, 2009, were $11,457,000, compared with $28,593,000 for the same period last year, primarily due to reduced production equipment purchases.
Management considers the Companys working capital and long-term investments totaling approximately $487,596,000 as of June 30, 2009, together with internally generated cash flow and an unsecured $5,000,000 line of credit from a bank, to be sufficient to cover anticipated cash needs for the next year and for the foreseeable future.
Read the The complete ReportGNTX is in the portfolios of PRIMECAP Management.
Gentex Corporation is an international company that provides high-quality products to the worldwide automotive industry and North American fire protection market. The Company develops manufactures and markets proprietary electro-optic products including interior and exterior electrochromic automatic-dimming Night Vision Safety automotive rearview mirrors that dim in proportion to the amount of headlight glare from trailing vehicle headlamps and an extensive line of fire protection products for commercial applications. Gentex Corp. has a market cap of $2.07 billion; its shares were traded at around $15.04 with a P/E ratio of 62.7 and P/S ratio of 3.3. The dividend yield of Gentex Corp. stocks is 2.9%. Gentex Corp. had an annual average earning growth of 10% over the past 10 years. GuruFocus rated Gentex Corp. the business predictability rank of 3-star.
Highlight of Business Operations:
Net Sales. Net sales for the second quarter of 2009 decreased by approximately $53,150,000, or 31%, when compared with the second quarter last year. Net sales of the Companys automotive mirrors decreased by approximately $52,606,000, or 32%, in the second quarter of 2009, when compared with the second quarter last year, primarily due to lower light vehicle production levels globally. Auto-dimming mirror unit shipments decreased 33% from approximately 3,913,000 in the second quarter 2008 to approximately 2,610,000 in the current quarter. Unit shipments to customers in North America for the current quarter decreased by 49% compared with the second quarter of the prior year, primarily due to lower light vehicle production levels. Mirror unit shipments for the current quarter to automotive customers outside North America decreased by 24% compared with the second quarter in 2008, primarily due to lower light vehicle production levels in Asia and Europe. Net sales of the Companys fire protection products decreased 10% for the current quarter versus the same quarter of last year, primarily due to the weak commercial construction market.Operating Expenses. Engineering, research and development (E, R & D) expenses for the current quarter decreased 16% and approximately $2,177,000 when compared with the same quarter last year, primarily due to reduced employee compensation expense. Selling, general and administrative expenses decreased 14% and approximately $1,398,000, for the current quarter, when compared with the same quarter last year, primarily due to reduced employee compensation expense and foreign exchange rates. Foreign exchange rates accounted for approximately four percentage points of the decrease in selling, general and administrative expenses.
Net Sales. Net sales for the six months ended June 30, 2009 decreased by approximately $137,289,000, or 39%, when compared with the same period last year. Net sales of the Companys automotive mirrors decreased by approximately $135,711,000, or 40% period over period, as auto-dimming mirror unit shipments decreased by 42% from approximately 8,080,000 in the first six months of 2008 to approximately 4,703,000 in the first six months of 2009. The decrease was primarily due to lower light vehicle production levels globally. Unit shipments to customers in North America decreased by 53% during the first six months of 2009 versus the same period in 2008, primarily due to lower light vehicle production levels. Mirror unit shipments to automotive customers outside North America decreased by 35% period over period, primarily due to lower light vehicle production levels in Asia and Europe. Net sales of the Companys fire protection products decreased 14% period over period, primarily due to the weak commercial construction market.
Operating Expenses. For the six months ended June 30, 2009, engineering, research and development expenses decreased 14% and approximately $3,533,000, when compared with the same period last year, primarily due to reduced employee compensation expense. Selling, general and administrative expenses decreased 13% and approximately $2,590,000 for the six months ended June 30, 2009, when compared with the same period last year, primarily due to reduced employee compensation expense and foreign exchange rates. Foreign exchange rates accounted for approximately four percentage points of the decrease in selling, general and administrative expenses.
Cash flow from operating activities for the six months ended June 30, 2009, decreased approximately $22,794,000 to approximately $49,538,000, compared with approximately $72,331,000, for the same period last year, primarily due to the decrease in net income, partially offset by a decrease in inventory and prepaid expenses. Capital expenditures for the six months ended June 30, 2009, were $11,457,000, compared with $28,593,000 for the same period last year, primarily due to reduced production equipment purchases.
Management considers the Companys working capital and long-term investments totaling approximately $487,596,000 as of June 30, 2009, together with internally generated cash flow and an unsecured $5,000,000 line of credit from a bank, to be sufficient to cover anticipated cash needs for the next year and for the foreseeable future.
Read the The complete ReportGNTX is in the portfolios of PRIMECAP Management.
