ORLANDO, Fla., July 25, 2025 (GLOBE NEWSWIRE) -- Gencor Industries, Inc. (the "Company" or "Gencor") (NYSE American: GENC) announced today net revenue for the quarter ended December 31, 2024 of $31,416,000 increased 20.7% over net revenue for the quarter ended December 31, 2023 of $26,018,000. Revenue from contract equipment sales recognized over time increased significantly and was slightly offset by a decrease in parts sales. As a percent of sales, gross profit margins were 27.6% in the quarter ended December 31, 2024, compared to 29.0% in the quarter ended December 31, 2023 due to a smaller contribution of parts sales to total sales in the quarter ended December 31, 2024.
Product engineering and development expenses decreased $124,000 to $677,000 for the quarter ended December 31, 2024, as compared to $801,000 for the quarter ended December 31, 2023, due to lower headcount. Selling, general and administrative ("SG&A") expenses increased slightly to $3,367,000 for the quarter ended December 31, 2024, compared to $3,350,000 for the quarter ended December 31, 2023.
The Company had operating income of $4,624,000 for the quarter ended December 31, 2024 as compared to $3,383,000 for the quarter ended December 31, 2023. The increased operating income was due primarily to higher net revenues for the quarter ended December 31, 2024.
For the quarter ended December 31, 2024, the Company had net other income of $534,000 compared to $2,235,000 for the quarter ended December 31, 2023. Higher yields negatively impacted the value of our bond holdings. Included in net other income for the quarter ended December 31, 2024 were net realized and unrealized losses on marketable securities of ($455,000) compared to net realized and unrealized gains of $1,519,000 for the quarter ended December 31, 2023.
The effective income tax rates for the quarters ended December 31, 2024 and December 31, 2023 were 26.0% and 23.0%, respectively. Net income for the quarter ended December 31, 2024 was $3,817,000, or $0.26 per basic and diluted common share, compared to net income of $4,326,000, or $0.30 per basic and diluted common share for the quarter ended December 31, 2023.
At December 31, 2024, the Company had $130.1 million of cash and cash equivalents and marketable securities compared to $115.4 million at September 30, 2024. Net working capital was $186.5 million at December 31, 2024 compared to $182.2 million at September 30, 2024. The Company had no short-term or long-term debt outstanding at December 31, 2024.
The Company's backlog was $54.4 million at December 31, 2024 compared to $61.3 million at December 31, 2023.
Gencor Industries, Inc. is a diversified heavy machinery manufacturer for the production of highway construction materials and equipment and environmental control machinery and equipment used in a variety of applications.
| GENCOR INDUSTRIES, INC. Condensed Consolidated Income Statements For the Quarters Ended December 31, 2024 and 2023 (Unaudited) | ||||||
| 2024 | 2023 | |||||
| Net revenue | $ | 31,416,000 | $ | 26,018,000 | ||
| Cost of goods sold | 22,748,000 | 18,484,000 | ||||
| Gross profit | 8,668,000 | 7,534,000 | ||||
| Operating expenses: | ||||||
| Product engineering and development | 677,000 | 801,000 | ||||
| Selling, general and administrative | 3,367,000 | 3,350,000 | ||||
| Total operating expenses | 4,044,000 | 4,151,000 | ||||
| Operating income | 4,624,000 | 3,383,000 | ||||
| Other income, net: | ||||||
| Interest and dividend income, net of fees | 989,000 | 716,000 | ||||
| Realized and unrealized gains (losses) on marketable securities, net | (455,000 | ) | 1,519,000 | |||
| Total other income, net | 534,000 | 2,235,000 | ||||
| Income before income tax expense | 5,158,000 | 5,618,000 | ||||
| Income tax expense | 1,341,000 | 1,292,000 | ||||
| Net income | $ | 3,817,000 | $ | 4,326,000 | ||
| Net income per common share - basic and diluted | $ | 0.26 | $ | 0.30 | ||
| GENCOR INDUSTRIES, INC. Condensed Consolidated Balance Sheets | ||||||
| ASSETS | December 31, 2024 (Unaudited) | September 30, 2024 | ||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 39,972,000 | $ | 25,482,000 | ||
| Marketable securities at fair value (cost of $89,550,000 at December 31, 2024 and $88,777,000 at September 30, 2024) | 90,133,000 | 89,927,000 | ||||
| Accounts receivable, less allowance for credit losses of $425,000 at December 31, 2024 and $390,000 at September 30, 2024 | 3,596,000 | 1,980,000 | ||||
| Contract assets | 7,921,000 | 9,339,000 | ||||
| Inventories, net | 59,668,000 | 63,762,000 | ||||
| Prepaid expenses | 1,825,000 | 2,352,000 | ||||
| Total current assets | 203,115,000 | 192,842,000 | ||||
| Property and equipment, net | 11,169,000 | 11,472,000 | ||||
| Deferred income taxes | 3,572,000 | 3,424,000 | ||||
| Other long-term assets | 294,000 | 383,000 | ||||
| Total Assets | $ | 218,150,000 | $ | 208,121,000 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 3,720,000 | $ | 2,001,000 | ||
| Customer deposits | 7,407,000 | 5,018,000 | ||||
| Contract liabilities | 2,157,000 | - | ||||
| Accrued expenses | 3,136,000 | 3,255,000 | ||||
| Current operating lease liabilities | 241,000 | 330,000 | ||||
| Total current liabilities | 16,661,000 | 10,604,000 | ||||
| Unrecognized tax benefits | 1,531,000 | 1,376,000 | ||||
| Total liabilities | 18,192,000 | 11,980,000 | ||||
| Commitments and contingencies | ||||||
| Shareholders' equity: | ||||||
| Preferred stock, par value $.10 per share; 300,000 shares authorized; none issued | - | - | ||||
| Common stock, par value $.10 per share; 15,000,000 shares authorized; | ||||||
| 12,338,845 shares issued and outstanding at December 31, 2024 and September 30, 2024 | 1,234,000 | 1,234,000 | ||||
| Class B Stock, par value $.10 per share; 6,000,000 shares authorized; | ||||||
| 2,318,857 shares issued and outstanding at December 31, 2024 and September 30, 2024 | 232,000 | 232,000 | ||||
| Capital in excess of par value | 12,590,000 | 12,590,000 | ||||
| Retained earnings | 185,902,000 | 182,085,000 | ||||
| Total shareholders' equity | 199,958,000 | 196,141,000 | ||||
| Total Liabilities and Shareholders' Equity | $ | 218,150,000 | $ | 208,121,000 | ||
Caution Concerning Forward Looking Statements - This press release and our other communications and statements may contain certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements about the Company's beliefs, plans, objectives, goals, expectations, estimates, projections and intentions. These statements are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond the Company's control. The Company's actual results may differ materially from those set forth in the Company's forward-looking statements depending on a variety of important factors, including the financial condition of the Company's customers, changes in the economic and competitive environments, demand for the Company's products and the timing and consequences of the delays in the Company's regaining compliance with its SEC filing obligations. In addition, the impact of (i) the U.S. government's recent tariff announcements, (ii) the invasion by Russia into Ukraine, and (iii) the conflict between Israel and Hamas, including hostilities involving Iran, as well as actions taken by other countries, including the U.S., in response to such tariff announcements and conflicts, could result in a disruption in our supply chain and higher costs of our products. The words "may," "could," "should," "would," "believe," "anticipate," "estimate," "expect," "intend," "plan," "target," "goal," and similar expressions are intended to identify forward-looking statements.
For information concerning these factors and related matters, see the following sections of the Company's Annual Report on Form 10-K for the year ended September 30, 2024: (a) Part I, Item 1A, "Risk Factors" and (b) Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations". However, other factors besides those referenced could adversely affect the Company's results, and you should not consider any such list of factors to be a complete set of all potential risks or uncertainties. Any forward-looking statements made by the Company herein speak as of the date of this press release. The Company does not undertake to update any forward-looking statements, except as required by law.
Unless the context otherwise indicates, all references in this press release to the "Company," "Gencor," "we," "us," or "our," or similar words are to Gencor Industries, Inc. and its subsidiaries.
| Contact: | Eric Mellen, Chief Financial Officer |
| 407-290-6000 |
