Gencor Industries Inc. (GENC, Financial) filed Quarterly Report for the period ended 2009-12-31.
Gencor Industries Inc. has a market cap of $57.74 million; its shares were traded at around $7.1456 with and P/S ratio of 1.02. GENC is in the portfolios of John Keeley of Keeley Fund Management.
As of December 31, 2009 the cost basis of the Companys investment portfolio was $58.4 million as compared to $56.6 million at September 30, 2009. For the quarter ended December 31, 2009, net investment interest and dividend income from the investment portfolio was $582 as compared to $466 in the 2008 comparable quarter. The net realized and unrealized gains on marketable securities were $168 for the quarter ended December 31, 2009 versus a $2.4 million loss for the quarter ended December 31, 2008. The Companys total cash and investment balance at December 31, 2009 was $65.2 million versus $61.2 million at September 30, 2009.
The Company amended the Credit Agreement on July 23, 2009 (the Third Amendment). The Credit Agreement was set to expire on July 31, 2009, and rather than let it expire, the Company elected to amend the agreement and reduce the amount of the Credit Facility from $20 million to $1.5 million. The Credit Facility also includes a $1.285 million limit on letters of credit, which was reduced from the original $2 million limit. The Company elected to reduce its Credit Facility because it believed the higher amount associated with the original line was not needed. The Company is currently evaluating other options for a new revolving credit facility. Pursuant to the Third Amendment, the Companys Credit Facility shall continue until April 30, 2010, unless terminated sooner. Under the Third Amendment, substantially all representations, warranties, covenants, rights, duties and obligations set forth in the original agreement continue to apply. The interest rate for advances under the Credit Facility at December 31, 2009, was at LIBOR plus 2.0% and subject to change based upon the fixed charge coverage ratio.
As of December 31, 2009, the Company had $5.9 million in cash and cash equivalents, and $59.2 million in marketable securities. The marketable securities are invested through a professional investment advisor. The securities may be liquidated at any time into cash and cash equivalents.
The Companys working capital (defined as current assets less current liabilities) was equal to $88.4 million as of December 31, 2009 and September 30, 2009. Increases in accounts receivable of $966 were offset by reductions in inventories of $1.1 million as the Company received orders for several asphalt plants during the quarter ended December 31, 2009 and began manufacturing for delivery during the first quarter of calendar 2010. Prepaid expenses decreased $924 from the realization of $950 of tax receivables included in prepaid expenses at September 30, 2009. Customer deposits increased $2.7 million related to the asphalt plant orders.
Cash provided by operations during the quarter ended December 31, 2009 was $2.1 million which was primarily driven by reduced inventories, increased customer deposits and realization of the tax receivable. Cash provided by investing activities during the quarter ended December 31, 2009 was $163 related to income from Investees. There were no cash disbursements or receipts related to financing activities during the quarter ended December 31, 2009.
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Gencor Industries Inc. has a market cap of $57.74 million; its shares were traded at around $7.1456 with and P/S ratio of 1.02. GENC is in the portfolios of John Keeley of Keeley Fund Management.
Highlight of Business Operations:
Net sales for the quarter ended December 31, 2009 and 2008 were $11,070 and $19,260, respectively. The decrease in net sales was primarily due to the recessionary economy and the tightening of credit availability during calendar 2009, which resulted in lower unit volume sales and decreased unit selling prices. Sales related to the Companys former United Kingdom operations included in the quarter ended December 31, 2008 were $809. The Company disposed of its operations in the United Kingdom in June 2009. The Companys operations are concentrated in the asphalt-related business and subject to a seasonal slow-down during the third and fourth quarters of the calendar year. The Company cannot predict what impact the current recession will have on future earnings.As of December 31, 2009 the cost basis of the Companys investment portfolio was $58.4 million as compared to $56.6 million at September 30, 2009. For the quarter ended December 31, 2009, net investment interest and dividend income from the investment portfolio was $582 as compared to $466 in the 2008 comparable quarter. The net realized and unrealized gains on marketable securities were $168 for the quarter ended December 31, 2009 versus a $2.4 million loss for the quarter ended December 31, 2008. The Companys total cash and investment balance at December 31, 2009 was $65.2 million versus $61.2 million at September 30, 2009.
The Company amended the Credit Agreement on July 23, 2009 (the Third Amendment). The Credit Agreement was set to expire on July 31, 2009, and rather than let it expire, the Company elected to amend the agreement and reduce the amount of the Credit Facility from $20 million to $1.5 million. The Credit Facility also includes a $1.285 million limit on letters of credit, which was reduced from the original $2 million limit. The Company elected to reduce its Credit Facility because it believed the higher amount associated with the original line was not needed. The Company is currently evaluating other options for a new revolving credit facility. Pursuant to the Third Amendment, the Companys Credit Facility shall continue until April 30, 2010, unless terminated sooner. Under the Third Amendment, substantially all representations, warranties, covenants, rights, duties and obligations set forth in the original agreement continue to apply. The interest rate for advances under the Credit Facility at December 31, 2009, was at LIBOR plus 2.0% and subject to change based upon the fixed charge coverage ratio.
As of December 31, 2009, the Company had $5.9 million in cash and cash equivalents, and $59.2 million in marketable securities. The marketable securities are invested through a professional investment advisor. The securities may be liquidated at any time into cash and cash equivalents.
The Companys working capital (defined as current assets less current liabilities) was equal to $88.4 million as of December 31, 2009 and September 30, 2009. Increases in accounts receivable of $966 were offset by reductions in inventories of $1.1 million as the Company received orders for several asphalt plants during the quarter ended December 31, 2009 and began manufacturing for delivery during the first quarter of calendar 2010. Prepaid expenses decreased $924 from the realization of $950 of tax receivables included in prepaid expenses at September 30, 2009. Customer deposits increased $2.7 million related to the asphalt plant orders.
Cash provided by operations during the quarter ended December 31, 2009 was $2.1 million which was primarily driven by reduced inventories, increased customer deposits and realization of the tax receivable. Cash provided by investing activities during the quarter ended December 31, 2009 was $163 related to income from Investees. There were no cash disbursements or receipts related to financing activities during the quarter ended December 31, 2009.
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