Fourth Quarter and Calendar Year 2023 Highlights:
Fourth Quarter 2023
Net sales of
Gross profit margin of 34.5%, a 330 basis point improvement compared to the fourth quarter of 2022
Income from operations of
Net income of
Earnings per diluted share of
Calendar Year 2023
Net sales of
Gross profit margin of 33.2%, a 140 basis point improvement as compared to calendar year 2022
Income from operations of
Net income of
Earnings per diluted share of
Full Display Mirror ('FDM') shipments of 2.44 million units, a 45% increase compared to calendar year 2022
Cash returned to shareholders of
Fourth Quarter 2023
For the fourth quarter of 2023, the Company reported net sales of
The gross margin in the fourth quarter of 2023 was 34.5%, compared with a gross margin of 31.2% in the fourth quarter of 2022. The increase in gross margin in the fourth quarter of 2023 was positively impacted by recurring price increases to customers and one-time cost recoveries, which together positively impacted the gross margin by approximately 100 basis points on a quarter over quarter basis. Additional improvements in gross margin compared to the fourth quarter of 2022 came from the higher sales levels, improved leverage on overhead expenses, purchasing cost reductions, lower inbound freight expenses, and some improvements in overtime-related costs. 'The fourth quarter of 2023 produced significant year over year gross margin improvements, as well as a sequential improvement in gross margin compared to the third quarter of 2023. Our team has done an excellent job of working with our customers to execute both temporary and permanent price increases to help offset the inflationary cost environment that has negatively impacted Gentex over the last two years,' said Gentex President and CEO,
Operating expenses during the fourth quarter of 2023 were up 18% to
Income from operations for the fourth quarter of 2023 was
During the fourth quarter of 2023, the Company had an effective tax rate of 13.9%, which was driven by benefits from the foreign derived intangible income deduction, discrete benefits from stock-based compensation as well as by provision-to-return adjustments.
In the fourth quarter of 2023, net income was
Earnings per diluted share in the fourth quarter of 2023 were
Calendar Year 2023
For calendar year 2023, the Company's net sales were
For calendar year 2023, the gross margin was 33.2%, compared to a gross margin of 31.8% for calendar year 2022. Gross margin improved for the year by 140 basis points primarily due to price increases and cost recoveries, lower freight costs, product mix, and improved overhead leverage created by the growth in revenue.
For calendar year 2023, operating expenses increased 11% to
For calendar year 2023, the Company's effective tax rate was 15.2%, compared to an effective tax rate of 13.8% for calendar year 2022. The increase in the tax rate in 2023 was primarily driven by a reduced benefit from the foreign derived intangible income deduction compared to 2022.
Net income for calendar year 2023 was
Earnings per diluted share for calendar year 2023 were
Segment Sales
Automotive net sales during the fourth quarter of 2023 were
Other net sales in the fourth quarter of 2023, which includes dimmable aircraft windows and fire protection products, were
Share Repurchases
The Company repurchased 2.2 million shares of its common stock during the fourth quarter of 2023, at an average price of
Future Estimates
The Company's current forecasts for light vehicle production for calendar year 2024 and 2025 are based on the S&P Global Mobility
Based on the following light vehicle production forecasts for 2024 and 2025, the Company is providing certain annual guidance for 2024 and revenue guidance for 2025:
Light Vehicle Production (per S&P Global Mobility mid-January light vehicle production forecast)
(in Millions)
Region Calendar Year
2025 Calendar Year
2024 Calendar Year
2023 2025 vs. 2024
% Change 2024 vs. 2023
% Change
North America 16.2 15.8 15.6 3 % 1 %
Europe 17.5 17.4 17.8 1 % (2)%
Japan andKorea 11.8 12.2 12.7 (3)% (4)%
China 30.1 28.9 28.9 4 % - %
Total Light Vehicle Production 75.6 74.3 75.0 2 % (1)%
2024 Guidance
Revenue$2.45 -$2.55 Billion
Gross Margin 34% - 35%
Operating Expenses (E,R&D and S,G&A)$295 -$305 million
Estimated Annual Tax Rate 16% - 18%
Capital Expenditures$225 -$250 million
Depreciation & Amortization$95 -$105 million
Additionally, based on the
'Calendar year 2023 turned out to be a remarkable year for the Company, and was the first time that Gentex has exceeded
Safe Harbor for Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements contained in this communication that are not purely historical are forward-looking statements. Forward-looking statements give the Company's current expectations or forecasts of future events. These forward-looking statements generally can be identified by the use of words such as 'anticipate,' 'believe,' 'could,' 'estimate,' 'expect,' 'forecast,' 'future,' 'goal,' 'guidance,' 'hope,' 'intend,' 'likely', 'may,' 'opinion,' 'optimistic,' 'plan,' 'poised,' 'predict,' 'project,' 'should,' 'strategy,' 'target,' 'will,' 'work to,' and variations of such words and similar expressions. Such statements are subject to risks and uncertainties that are often difficult to predict and beyond the Company's control, and could cause the Company's results to differ materially from those described. These risks and uncertainties include, without limitation: changes in general industry or regional market conditions, including the impact of inflation; changes in consumer and customer preferences for our products (such as cameras replacing mirrors and/or autonomous driving); our ability to be awarded new business; continued uncertainty in pricing negotiations with customers and suppliers; loss of business from increased competition; changes in strategic relationships; customer bankruptcies or divestiture of customer brands; fluctuation in vehicle production schedules (including the impact of customer employee strikes); changes in product mix; raw material and other supply shortages; labor shortages, supply chain constraints and disruptions; our dependence on information systems; higher raw material, fuel, energy and other costs; unfavorable fluctuations in currencies or interest rates in the regions in which we operate; costs or difficulties related to the integration and/or ability to maximize the value of any new or acquired technologies and businesses; changes in regulatory conditions; warranty and recall claims and other litigation and customer reactions thereto; possible adverse results of pending or future litigation or infringement claims; changes in tax laws; import and export duty and tariff rates in or with the countries with which we conduct business; negative impact of any governmental investigations and associated litigation including securities litigation relating to the conduct of our business; and force majeure events. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law or the rules of the NASDAQ Global Select Market. Accordingly, any forward-looking statement should be read in conjunction with the additional information about risks and uncertainties identified under the heading 'Risk Factors' in the Company's latest Form 10-K and Form 10-Q filed with the
Fourth Quarter Conference Call
A conference call related to this news release will be simulcast live on the Internet beginning at
About the Company
Founded in 1974,
Contact Information:
Gentex Investor & Media Contact
(616)772-1590 x5814
AUTO-DIMMING MIRROR SHIPMENTS
(Thousands)
Three Months Ended
December 31 , Twelve Months ended
2023 2022 %
Change 2023 2022 %
Change
North American Interior Mirrors 2,068 1,939 7 % 9,213 8,384 10 %
North American Exterior Mirrors 1,769 1,454 22 % 6,781 5,986 13 %
Total North American Mirror Units 3,837 3,393 13 % 15,993 14,369 11 %
International Interior Mirrors 5,410 5,020 8 % 22,554 20,303 11 %
International Exterior Mirrors 3,109 2,591 20 % 12,048 9,516 27 %
Total International Mirror Units 8,519 7,611 12 % 34,602 29,819 16 %
Total Interior Mirrors 7,478 6,959 7 % 31,767 28,686 11 %
Total Exterior Mirrors 4,878 4,045 21 % 18,828 15,502 21 %
Total Auto-Dimming Mirror Units 12,357 11,004 12 % 50,596 44,188 15 %
Note: Percent change and amounts may not total due to rounding.
GENTEX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
Twelve Months ended
2023 2022 2023 2022
Net Sales$ 589,132,396 $ 493,647,571 $ 2,299,215,044 $ 1,918,958,043
Cost of Goods Sold 385,763,291 339,813,384 1,536,585,036 1,309,143,858
Gross profit 203,369,105 153,834,187 762,630,008 609,814,185
Engineering, Research & Development 41,534,646 34,935,068 154,359,700 133,308,804
Selling, General & Administrative 29,059,971 24,781,407 112,539,255 106,499,255
Income from operations 132,774,488 94,117,712 495,731,053 370,006,126
Other Income 3,127,638 1,339,617 9,250,121 (283,050 )
Income before Income Taxes 135,902,126 95,457,329 504,981,174 369,723,076
Provision for Income Taxes 18,957,931 9,289,000 76,577,902 50,965,724
Net Income$ 116,944,195 $ 86,168,329 $ 428,403,272 $ 318,757,352
Earnings Per Share(1)
Basic$ 0.50 $ 0.37 $ 1.84 $ 1.36
Diluted$ 0.50 $ 0.37 $ 1.84 $ 1.36
Cash Dividends Declared per Share$ 0.12 $ 0.12 $ 0.480 $ 0.480
(1) Earnings Per Share has been adjusted to exclude the portion of net income allocated to participating securities as a result of share-based payment awards
GENTEX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31, 2023 December 31, 2022
ASSETS
Cash and Cash Equivalents$ 226,435,019 $ 214,754,638
Short-Term Investments 14,356,476 23,007,385
Accounts Receivable, net 321,809,868 276,493,752
Inventories 402,473,028 404,360,270
Other Current Assets 32,663,762 30,036,331
Total Current Assets 997,738,153 948,652,376
Plant and Equipment - Net 652,877,672 550,033,036
Goodwill 340,105,631 313,807,494
Long-Term Investments 299,080,876 202,331,983
Intangible Assets 214,005,910 219,360,910
Deferred Tax Asset 41,113,759 25,528,700
Patents and Other Assets 66,515,551 67,515,425
Total Other Assets 960,821,727 828,544,512
Total Assets$ 2,611,437,552 $ 2,327,229,924
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities$ 271,608,976 $ 250,552,752
Other Non-current Liabilities 27,311,507 10,884,351
Shareholders' Investment 2,312,517,069 2,065,792,821
Total Liabilities &Shareholders' Investment $ 2,611,437,552 $ 2,327,229,924
Primary Logo
Source:
https://ir.gentex.com/news-releases/news-release-details/gentex-reports-fourth-quarter-and-year-end-2023-financial
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