☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 59-0933147 | |
(State or other jurisdiction | (IRS Employer Identification No.) |
Title of Each Class | Trading Symbol(s) | Name of Exchange on which registered | ||
Common Stock ($.10 Par Value) | GENC | NASDAQ Global t |
Large accelerated filer | ☐ | Accelerated Filer | |||||||
Non-accelerated Filer | Smaller Reporting Company | ||||||||
Emerging Growth Company | ☐ |
Class | Outstanding at 10 | |
Common stock, $.10 par value | ||
Class B stock, $.10 par value | 2,318,857 shares |
Index | Page | |||||||||||
Part I. | ||||||||||||
Item 1. | Financial Statements | |||||||||||
Condensed Consolidated Balance Sheets – March 31, 2021 (Unaudited) and September 30, 2020 | 4 | |||||||||||
Condensed Consolidated Statements of Operations – Quarters and Six Months Ended March 31, 2021 and 2020 (Unaudited) | 5 | |||||||||||
6 | ||||||||||||
7 | ||||||||||||
8 | ||||||||||||
Item 2. | ||||||||||||
15 | ||||||||||||
Item 3. | ||||||||||||
21 | ||||||||||||
Item 4. | ||||||||||||
21 | ||||||||||||
Part II. | ||||||||||||
Item 1. | ||||||||||||
22 | ||||||||||||
Item 1A. | ||||||||||||
22 | ||||||||||||
Item 6. | ||||||||||||
Exhibits | 22 | |||||||||||
23 |
Item 1. | Financial Statements |
March 31, 2021 (Unaudited) | September 30, 2020 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 29,417,000 | $ | 35,584,000 | ||||
Marketable securities at fair value (cost of $91,159,000 at March 31, 2021 and $89,514,000 at September 30, 2020) | 93,646,000 | 89,498,000 | ||||||
Accounts receivable, less allowance for doubtful accounts of $373,000 at March 31, 2021 and $442,000 at September 30, 2020 | 3,543,000 | 1,992,000 | ||||||
Costs and estimated earnings in excess of billings | 0 | 6,405,000 | ||||||
Inventories, net | 38,104,000 | 27,090,000 | ||||||
Prepaid expenses | 1,204,000 | 1,189,000 | ||||||
Total current assets | 165,914,000 | 161,758,000 | ||||||
Property and equipment, net | 12,252,000 | 8,341,000 | ||||||
Other long-term assets | 1,054,000 | 995,000 | ||||||
Total Assets | $ | 179,220,000 | $ | 171,094,000 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 2,697,000 | $ | 1,728,000 | ||||
Customer deposits | 6,026,000 | 3,853,000 | ||||||
Accrued expenses | 3,134,000 | 2,605,000 | ||||||
Current operating lease liabilities | 412,000 | 328,000 | ||||||
Total current liabilities | 12,269,000 | 8,514,000 | ||||||
Deferred and other income taxes | 1,247,000 | 746,000 | ||||||
Non-current operating lease liabilities | 589,000 | 614,000 | ||||||
Total liabilities | 14,105,000 | 9,874,000 | ||||||
Commitments and contingencies | 0 | 0 | ||||||
Shareholders’ equity: | ||||||||
Preferred stock, par value $.10 per share; 300,000 shares authorized; NaN issued | 0 | 0 | ||||||
Common stock, par value $.10 per share; 15,000,000 shares authorized; 12,298,337 shares and 12,287,337 shares issued and outstanding at March 31, 2021 and September 30, 2020, respectively | 1,230,000 | 1,229,000 | ||||||
Class B Stock, par value $.10 per share; 6,000,000 shares authorized; 2,318,857 shares issued and outstanding at March 31, 2021 and September 30, 2020 | 232,000 | 232,000 | ||||||
Capital in excess of par value | 12,386,000 | 12,331,000 | ||||||
Retained earnings | 151,267,000 | 147,428,000 | ||||||
Total shareholders’ equity | 165,115,000 | 161,220,000 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 179,220,000 | $ | 171,094,000 | ||||
June 30, 2020 | September 30, 2019 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 18,564,000 | $ | 10,302,000 | ||||
Marketable securities at fair value (cost $105,388,000 at June 30, 2020 and $104,176,000 at September 30, 2019) | 105,675,000 | 105,322,000 | ||||||
Accounts receivable, less allowance for doubtful accounts of $419,000 at June 30, 2020 and $459,000 at September 30, 2019 | 1,609,000 | 1,603,000 | ||||||
Costs and estimated earnings in excess of billings | 10,064,000 | 13,838,000 | ||||||
Inventories, net | 24,562,000 | 25,366,000 | ||||||
Prepaid expenses and other current assets | 1,649,000 | 499,000 | ||||||
Total Current Assets | 162,123,000 | 156,930,000 | ||||||
Property and equipment, net | 8,391,000 | 8,389,000 | ||||||
Other assets | 53,000 | 53,000 | ||||||
Total Assets | $ | 170,567,000 | $ | 165,372,000 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 2,089,000 | $ | 1,907,000 | ||||
Customer deposits | 2,651,000 | 1,918,000 | ||||||
Accrued expenses and other current liabilities | 2,694,000 | 2,660,000 | ||||||
Total Current Liabilities | 7,434,000 | 6,485,000 | ||||||
Deferred and other income taxes | 1,306,000 | 3,372,000 | ||||||
Total Liabilities | 8,740,000 | 9,857,000 | ||||||
Commitments and contingencies | ||||||||
Shareholders’ equity: | ||||||||
Preferred stock, par value $.10 per share; 300,000 shares authorized; NaN issued | — | — | ||||||
Common stock, par value $.10 per share; 15,000,000 shares authorized; | 1,229,000 | 1,228,000 | ||||||
Class B Stock, par value $.10 per share; 6,000,000 shares authorized; | 232,000 | 231,000 | ||||||
Capital in excess of par value | 12,313,000 | 12,159,000 | ||||||
Retained earnings | 148,053,000 | 141,897,000 | ||||||
Total Shareholders’ Equity | 161,827,000 | 155,515,000 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 170,567,000 | $ | 165,372,000 | ||||
For the Quarters Ended March 31, | For the Six Months Ended March 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net revenue | $ | 21,352,000 | $ | 25,993,000 | $ | 40,316,000 | $ | 44,023,000 | ||||||||
Cost of goods sold | 15,206,000 | 18,655,000 | 31,189,000 | 32,365,000 | ||||||||||||
Gross profit | 6,146,000 | 7,338,000 | 9,127,000 | 11,658,000 | ||||||||||||
Operating expenses: | ||||||||||||||||
Product engineering and development | 1,069,000 | 689,000 | 1,914,000 | 1,455,000 | ||||||||||||
Selling, general and administrative | 3,838,000 | 2,561,000 | 7,032,000 | 4,943,000 | ||||||||||||
Total operating expenses | 4,907,000 | 3,250,000 | 8,946,000 | 6,398,000 | ||||||||||||
Operating income (loss) | 1,239,000 | 4,088,000 | 181,000 | 5,260,000 | ||||||||||||
Other income (expense), net: | ||||||||||||||||
Interest and dividend income, net of fees | 327,000 | 763,000 | 1,130,000 | 1,395,000 | ||||||||||||
Net realized and unrealized gains (losses) on marketable securities, net | 1,294,000 | (5,670,000 | ) | 3,488,000 | (4,353,000 | ) | ||||||||||
Other | 0 | 0 | 0 | (10,000 | ) | |||||||||||
1,621,000 | (4,907,000 | ) | 4,618,000 | (2,968,000 | ) | |||||||||||
Income (loss) before income tax expense (benefit) | 2,860,000 | (819,000 | ) | 4,799,000 | 2,292,000 | |||||||||||
Income tax expense (benefit) | 572,000 | (164,000 | ) | 960,000 | 458,000 | |||||||||||
Net income (loss) | $ | 2,288,000 | $ | (655,000 | ) | $ | 3,839,000 | $ | 1,834,000 | |||||||
Basic Income (Loss) per Common Share | $ | 0.16 | $ | (0.04 | ) | $ | 0.26 | $ | 0.13 | |||||||
Diluted Income (Loss) per Common Share | $ | 0.16 | $ | (0.04 | ) | $ | 0.26 | $ | 0.12 | |||||||
For the Quarters Ended June 30, | For the Nine Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net revenue | $ | 22,940,000 | $ | 18,848,000 | $ | 66,963,000 | $ | 66,845,000 | ||||||||
Costs and expenses: | ||||||||||||||||
Production costs | 17,555,000 | 14,098,000 | 49,920,000 | 47,267,000 | ||||||||||||
Product engineering and development | 849,000 | 881,000 | 2,304,000 | 2,427,000 | ||||||||||||
Selling, general and administrative | 2,522,000 | 2,471,000 | 7,465,000 | 7,135,000 | ||||||||||||
20,926,000 | 17,450,000 | 59,689,000 | 56,829,000 | |||||||||||||
Operating income | 2,014,000 | 1,398,000 | 7,274,000 | 10,016,000 | ||||||||||||
Other income (expense), net: | ||||||||||||||||
Interest and dividend income, net of fees | 512,000 | 567,000 | 1,907,000 | 1,608,000 | ||||||||||||
Net realized and unrealized gains (losses) on marketable securities | 2,888,000 | 1,090,000 | (1,465,000 | ) | 1,147,000 | |||||||||||
Other | (10,000 | ) | — | (20,000 | ) | — | ||||||||||
3,390,000 | 1,657,000 | 422,000 | 2,755,000 | |||||||||||||
Income before income tax expense | 5,404,000 | 3,055,000 | 7,696,000 | 12,771,000 | ||||||||||||
Income tax expense | 1,082,000 | 611,000 | 1,540,000 | 2,554,000 | ||||||||||||
Net income | $ | 4,322,000 | $ | 2,444,000 | $ | 6,156,000 | $ | 10,217,000 | ||||||||
Basic Income per Common Share: | ||||||||||||||||
Net income per share | $ | 0.30 | $ | 0.17 | $ | 0.42 | $ | 0.70 | ||||||||
Diluted Income per Common Share: | ||||||||||||||||
Net income per share | $ | 0.29 | $ | 0.17 | $ | 0.42 | $ | 0.69 | ||||||||
Common Stock | Class B Stock | Capital in Excess of | Retained Earnings | Total Shareholders’ Equity | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Par Value | ||||||||||||||||||||||||
September 30, 2019 | 12,277,337 | $ | 1,228,000 | 2,308,857 | $ | 231,000 | $ | 12,159,000 | $ | 141,897,000 | $ | 155,515,000 | ||||||||||||||||
Net income | — | — | — | — | — | 2,489,000 | 2,489,000 | |||||||||||||||||||||
Stock-based compensation | — | — | — | — | 18,000 | — | 18,000 | |||||||||||||||||||||
December 31, 2019 | 12,277,337 | 1,228,000 | 2,308,857 | 231,000 | 12,177,000 | 144,386,000 | 158,022,000 | |||||||||||||||||||||
Net loss | — | — | — | — | — | (655,000 | ) | (655,000 | ) | |||||||||||||||||||
Stock-based compensation | — | — | — | — | 17,000 | — | 17,000 | |||||||||||||||||||||
March 31, 2020 | 12,277,337 | 1,228,000 | 2,308,857 | 231,000 | 12,194,000 | 143,731,000 | 157,384,000 | |||||||||||||||||||||
Net income | — | — | — | — | — | 4,322,000 | 4,322,000 | |||||||||||||||||||||
Stock-based compensation | — | — | — | — | 18,000 | — | 18,000 | |||||||||||||||||||||
Stock options exercised | 10,000 | 1,000 | 10,000 | 1,000 | 101,000 | — | 103,000 | |||||||||||||||||||||
June 30, 2020 | 12,287,337 | $ | 1,229,000 | 2,318,857 | $ | 232,000 | $ | 12,313,000 | $ | 148,053,000 | $ | 161,827,000 | ||||||||||||||||
For the Six Months Ended March 31, 2021 | ||||||||||||||||||||||||||||
Common Stock | Class B Stock | Capital in Excess of Par Value | Retained Earnings | Total Shareholders’ Equity | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
September 30, 2020 | 12,287,337 | $ | 1,229,000 | 2,318,857 | $ | 232,000 | $ | 12,331,000 | $ | 147,428,000 | $ | 161,220,000 | ||||||||||||||||
Net income | — | — | — | — | — | 1,551,000 | 1,551,000 | |||||||||||||||||||||
December 31, 2020 | 12,287,337 | $ | 1,229,000 | 2,318,857 | $ | 232,000 | $ | 12,331,000 | $ | 148,979,000 | $ | 162,771,000 | ||||||||||||||||
Net income | — | — | — | — | — | 2,288,000 | 2,288,000 | |||||||||||||||||||||
Stock options exercised | 11,000 | 1,000 | — | — | 55,000 | — | 56,000 | |||||||||||||||||||||
March 31, 2021 | 12,298,337 | $ | 1,230,000 | 2,318,857 | $ | 232,000 | $ | 12,386,000 | $ | 151,267,000 | $ | 165,115,000 | ||||||||||||||||
For the Six Months Ended March 31, 2020 | ||||||||||||||||||||||||||||
Common Stock | Class B Stock | Capital in Excess of Par Value | Retained Earnings | Total Shareholders’ Equity | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
September 30, 2019 | 12,277,337 | $ | 1,228,000 | 2,308,857 | $ | 231,000 | $ | 12,159,000 | $ | 141,897,000 | $ | 155,515,000 | ||||||||||||||||
Net income | — | — | — | — | — | 2,489,000 | 2,489,000 | |||||||||||||||||||||
Stock-based compensation | — | — | — | — | 18,000 | — | 18,000 | |||||||||||||||||||||
December 31, 2019 | 12,277,337 | $ | 1,228,000 | 2,308,857 | $ | 231,000 | $ | 12,177,000 | $ | 144,386,000 | $ | 158,022,000 | ||||||||||||||||
Net loss | — | — | — | — | — | (655,000 | ) | (655,000 | ) | |||||||||||||||||||
Stock-based compensation | — | — | — | — | 17,000 | — | 17,000 | |||||||||||||||||||||
March 31, 2020 | 12,277,337 | $ | 1,228,000 | 2,308,857 | $ | 231,000 | $ | 12,194,000 | $ | 143,731,000 | $ | 157,384,000 | ||||||||||||||||
Common Stock | Class B Stock | Capital in Excess of | Retained Earnings | Total Shareholders’ Equity | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Par Value | ||||||||||||||||||||||||
September 30, 2018 | 12,252,337 | $ | 1,225,000 | 2,288,857 | $ | 229,000 | $ | 11,862,000 | $ | 131,701,000 | $ | 145,017,000 | ||||||||||||||||
Net income | — | — | — | — | — | 313,000 | 313,000 | |||||||||||||||||||||
Stock-based compensation | — | — | — | — | 17,000 | — | 17,000 | |||||||||||||||||||||
December 31, 2018 | 12,252,337 | 1,225,000 | 2,288,857 | 229,000 | 11,879,000 | 132,014,000 | 145,347,000 | |||||||||||||||||||||
Net income | — | — | — | — | — | 7,460,000 | 7,460,000 | |||||||||||||||||||||
Stock-based compensation | — | — | — | — | 18,000 | — | 18,000 | |||||||||||||||||||||
March 31, 2019 | 12,252,337 | 1,225,000 | 2,288,857 | 229,000 | 11,897,000 | 139,474,000 | 152,825,000 | |||||||||||||||||||||
Net income | — | — | — | — | — | 2,444,000 | 2,444,000 | |||||||||||||||||||||
Stock-based compensation | — | — | — | — | 18,000 | — | 18,000 | |||||||||||||||||||||
June 30, 2019 | 12,252,337 | $ | 1,225,000 | 2,288,857 | $ | 229,000 | $ | 11,915,000 | $ | 141,918,000 | $ | 155,287,000 |
2021 | 2020 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 3,839,000 | $ | 1,834,000 | ||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||
Purchase of marketable securities | (54,048,000 | ) | (73,393,000 | ) | ||||
Proceeds from sale and maturity of marketable securities | 53,067,000 | 72,181,000 | ||||||
Change in value of marketable securities | (3,167,000 | ) | 4,259,000 | |||||
Deferred and other income taxes | 501,000 | (2,863,000 | ) | |||||
Depreciation and amortization | 1,210,000 | 831,000 | ||||||
Provision for doubtful accounts | 25,000 | 25,000 | ||||||
Stock-based compensation | — | 35,000 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | (1,576,000 | ) | (788,000 | ) | ||||
Costs and estimated earnings in excess of billings | 6,405,000 | 5,046,000 | ||||||
Inventories (excluding the effect of the Blaw-Knox acquisition) | (629,000 | ) | (1,697,000 | ) | ||||
Prepaid expenses | (15,000 | ) | (1,645,000 | ) | ||||
Accounts payable | 969,000 | 2,473,000 | ||||||
Customer deposits | 2,173,000 | 2,795,000 | ||||||
Accrued expenses | 529,000 | 61,000 | ||||||
Total adjustments | 5,444,000 | 7,320,000 | ||||||
Cash flows provided by operating activities | 9,283,000 | 9,154,000 | ||||||
Cash flows from investing activities: | ||||||||
Acquisition of Blaw- Knox assets | (13,777,000 | ) | — | |||||
Capital expenditures | (1,729,000 | ) | (718,000 | ) | ||||
Cash flows used in investing activities | (15,506,000 | ) | (718,000 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from stock option exercises | 56,000 | — | ||||||
Cash flows provided by financing activities | 56,000 | — | ||||||
Net increase (decrease) in cash and cash equivalents | (6,167,000 | ) | 8,436,000 | |||||
Cash and cash equivalents at: | ||||||||
Beginning of year | 35,584,000 | 10,302,000 | ||||||
End of year | $ | 29,417,000 | $ | 18,738,000 | ||||
Non-cash investing and financing activities: | ||||||||
Operating lease right-of-use | $ | 254,000 | $ | — | ||||
Operating lease liabilities | $ | 254,000 | $ | — |
For the Nine Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
Cash flows from operations: | ||||||||
Net income | $ | 6,156,000 | $ | 10,217,000 | ||||
Adjustments to reconcile net income to cash flows provided by operating activities: | ||||||||
Purchases of marketable securities | (112,668,000 | ) | (152,063,000 | ) | ||||
Proceeds from sale and maturity of marketable securities | 110,805,000 | 152,678,000 | ||||||
Change in fair value of marketable securities | 1,510,000 | (1,324,000 | ) | |||||
Deferred income taxes | (2,066,000 | ) | (25,000 | ) | ||||
Depreciation and amortization | 1,244,000 | 1,188,000 | ||||||
Provision for doubtful accounts | 50,000 | 100,000 | ||||||
Stock-based compensation | 53,000 | 53,000 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | (56,000 | ) | (589,000 | ) | ||||
Costs and estimated earnings in excess of billings | 3,774,000 | (8,622,000 | ) | |||||
Inventories | 804,000 | (1,781,000 | ) | |||||
Prepaid expenses and other current assets | (1,150,000 | ) | 959,000 | |||||
Accounts payable | 182,000 | 756,000 | ||||||
Customer deposits | 733,000 | (2,101,000 | ) | |||||
Accrued expenses and other current liabilities | 34,000 | 577,000 | ||||||
Total adjustments | 3,249,000 | (10,194,000 | ) | |||||
Cash flows provided by operating activities | 9,405,000 | 23,000 | ||||||
Cash flows used in investing activities: | ||||||||
Capital expenditures | (1,246,000 | ) | (1,600,000 | ) | ||||
Cash flows used in investing activities | (1,246,000 | ) | (1,600,000 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from stock option exercises | 103,000 | — | ||||||
Cash flows provided by financing activities | 103,000 | — | ||||||
Net increase (decrease) in cash | 8,262,000 | (1,577,000 | ) | |||||
Cash at: | ||||||||
Beginning of period | 10,302,000 | 8,012,000 | ||||||
End of period | $ | 18,564,000 | $ | 6,435,000 | ||||
Fair Value Measurements | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Equities | $ | 12,089,000 | $ | — | $ | — | $ | 12,089,000 | ||||||||
Mutual Funds | 3,983,000 | — | — | 3,983,000 | ||||||||||||
Exchange-Traded Funds | 7,140,000 | — | — | 7,140,000 | ||||||||||||
Corporate Bonds | — | 38,058,000 | — | 38,058,000 | ||||||||||||
Government Securities | 33,789,000 | — | — | 33,789,000 | ||||||||||||
Cash and Money Funds | 10,616,000 | — | — | 10,616,000 | ||||||||||||
$ | 67,617,000 | $ | 38,058,000 | $ | — | $ | 105,675,000 | |||||||||
Fair Value Measurements | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Equities | $ | 20,423,000 | $ | — | $ | — | $ | 20,423,000 | ||||||||
Mutual Funds | 13,238,000 | — | — | 13,238,000 | ||||||||||||
Exchange-Traded Funds | 16,552,000 | — | — | 16,552,000 | ||||||||||||
Corporate Bonds | — | 25,169,000 | — | 25,169,000 | ||||||||||||
Government Securities | 16,000,000 | — | — | 16,000,000 | ||||||||||||
Cash and Money Funds | 2,264,000 | — | — | 2,264,000 | ||||||||||||
Total | $ | 68,477,000 | $ | 25,169,000 | $ | — | $ | 93,646,000 | ||||||||
Fair Value Measurements | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Equities | $ | 10,412,000 | $ | — | $ | — | $ | 10,412,000 | ||||||||
Mutual Funds | 3,987,000 | — | — | 3,987,000 | ||||||||||||
Exchange-Traded Funds | 5,163,000 | — | — | 5,163,000 | ||||||||||||
Corporate Bonds | — | 38,690,000 | — | 38,690,000 | ||||||||||||
Government Securities | 45,171,000 | — | — | 45,171,000 | ||||||||||||
Cash and Money Funds | 1,899,000 | — | — | 1,899,000 | ||||||||||||
$ | 66,632,000 | $ | 38,690,000 | $ | — | $ | 105,322,000 | |||||||||
Fair Value Measurements | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Equities | $ | 11,949,000 | $ | — | $ | — | $ | 11,949,000 | ||||||||
Mutual Funds | 9,595,000 | — | — | 9,595,000 | ||||||||||||
Exchange-Traded Funds | 10,344,000 | — | — | 10,344,000 | ||||||||||||
Corporate Bonds | — | 27,877,000 | — | 27,877,000 | ||||||||||||
Government Securities | 16,147,000 | — | — | 16,147,000 | ||||||||||||
Cash and Money Funds | 13,586,000 | — | — | 13,586,000 | ||||||||||||
Total | $ | 61,621,000 | $ | 27,877,000 | $ | — | $ | 89,498,000 | ||||||||
June 30, | September 30, | |||||||
Raw materials | $ | 15,090,000 | $ | 14,158,000 | ||||
Work in process | 580,000 | 1,397,000 | ||||||
Finished goods | 8,852,000 | 9,811,000 | ||||||
Used equipment | 40,000 | — | ||||||
$ | 24,562,000 | $ | 25,366,000 | |||||
March 31, 2021 | September 30, 2020 | |||||||
Raw materials | $ | 24,884,000 | $ | 14,607,000 | ||||
Work in process | 5,942,000 | 3,633,000 | ||||||
Finished goods | 7,238,000 | 8,810,000 | ||||||
Used equipment | 40,000 | 40,000 | ||||||
$ | 38,104,000 | $ | 27,090,000 | |||||
June 30, | September 30, | |||||||
Costs incurred on uncompleted contracts | $ | 13,792,000 | $ | 18,707,000 | ||||
Estimated earnings | 5,555,000 | 9,063,000 | ||||||
19,347,000 | 27,770,000 | |||||||
Billings to date | 9,283,000 | 13,932,000 | ||||||
Costs and estimated earnings in excess of billings | $ | 10,064,000 | $ | 13,838,000 | ||||
March 31, 2021 | September 30, 2020 | |||||||
Costs incurred on uncompleted contracts | $ | 7,192,000 | $ | 10,390,000 | ||||
Estimated earnings | 2,631,000 | 4,680,000 | ||||||
9,823,000 | 15,070,000 | |||||||
Billings to date | 9,823,000 | 8,665,000 | ||||||
Costs and estimated earnings in excess of billings | $ | 0 | $ | 6,405,000 | ||||
Quarter Ended June 30, | Nine Months Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net Income | $ | 4,322,000 | $ | 2,444,000 | $ | 6,156,000 | $ | 10,217,000 | ||||||||
Common Shares: | ||||||||||||||||
Weighted average common shares outstanding | 14,601,000 | 14,541,000 | 14,592,000 | 14,541,000 | ||||||||||||
Effect of dilutive stock options | 118,000 | 164,000 | 125,000 | 163,000 | ||||||||||||
Diluted shares outstanding | 14,719,000 | 14,705,000 | 14,717,000 | 14,704,000 | ||||||||||||
Basic: | ||||||||||||||||
Net earnings per share | $ | 0.30 | $ | 0.17 | $ | 0.42 | $ | 0.70 | ||||||||
Diluted: | ||||||||||||||||
Net earnings per share | $ | 0.29 | $ | 0.17 | $ | 0.42 | $ | 0.69 | ||||||||
Quarter Ended March 31, | Six Months Ended March 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net Income (Loss) | 2,288,000 | $ | (655,000 | ) | $ | 3,839,000 | $ | 1,834,000 | ||||||||
Common Shares: | ||||||||||||||||
Weighted average common shares outstanding | 14,614,000 | 14,586,000 | 14,611,000 | 14,586,000 | ||||||||||||
Effect of dilutive stock options | 133,000 | — | 129,000 | 128,000 | ||||||||||||
Diluted shares outstanding | 14,747,000 | 14,586,000 | 14,740,000 | 14,714,000 | ||||||||||||
Basic: | ||||||||||||||||
Net income (loss) per share | $ | 0.16 | $ | (0.04 | ) | $ | 0.26 | $ | 0.13 | |||||||
Diluted: | ||||||||||||||||
Net income (loss) per share | $ | 0.16 | $ | (0.04 | ) | $ | 0.26 | $ | 0.12 | |||||||
Quarter Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Equipment sales recognized over time | $ | 10,350,000 | $ | 7,844,000 | $ | 32,269,000 | $ | 36,203,000 | ||||||||
Equipment sales recognized at a point in time | 8,995,000 | 6,747,000 | 20,946,000 | 17,190,000 | ||||||||||||
Parts and component sales | 2,671,000 | 2,870,000 | 10,492,000 | 10,387,000 | ||||||||||||
Freight revenue | 822,000 | 1,312,000 | 2,926,000 | 2,744,000 | ||||||||||||
Other | 102,000 | 75,000 | 330,000 | 321,000 | ||||||||||||
Net revenue | $ | 22,940,000 | $ | 18,848,000 | $ | 66,963,000 | $ | 66,845,000 | ||||||||
Quarter Ended March 31, | Six Months Ended March 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Equipment sales recognized over time | $ | 3,870,000 | $ | 9,829,000 | $ | 8,002,000 | $ | 21,919,000 | ||||||||
Equipment sales recognized at a point in time | 9,565,000 | 10,044,000 | 19,701,000 | 11,951,000 | ||||||||||||
Parts and component sales | 6,830,000 | 4,675,000 | 10,761,000 | 7,821,000 | ||||||||||||
Freight revenue | 1,147,000 | 1,201,000 | 1,892,000 | 2,104,000 | ||||||||||||
Other | (60,000 | ) | 244,000 | (40,000 | ) | 228,000 | ||||||||||
Net revenue | $ | 21,352,000 | $ | 25,993,000 | $ | 40,316,000 | $ | 44,023,000 | ||||||||
March 31, 2021 | September 30, 2020 | |||||||
Operating lease ROU asset included in other long-term assets | $ | 1,001,000 | $ | 942,000 | ||||
Current operating lease liability | 412,000 | 328,000 | ||||||
Non-current operating lease liability | 589,000 | 614,000 | ||||||
Weighted average remaining lease term (in years) | 2.50 | 2.92 | ||||||
Weighted average discount rate used in calculating ROU asset | 4.0 | % | 4.0 | % |
Fiscal Year | Annual Lease Payments | |||
2021 (remaining 6 months) | $ | 233,000 | ||
2022 | 419,000 | |||
2023 | 400,000 | |||
Total | 1,052,000 | |||
Less interest | (51,000 | ) | ||
Present value of lease liabilities | $ | 1,001,000 | ||
Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
Item 4. |
Item 1. |
Item 1A. |
Item 6. |
Exhibit 31.1 | Certification of Chief Executive Officer Pursuant to Rule 13a – 14(a) of the Securities Exchange Act of 1934, as amended | |
Exhibit 31.2 | Certification of Chief Financial Officer Pursuant to Rule 13a – 14(a) of the Securities Exchange Act of 1934, as amended | |
Exhibit 32 | Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U. S. C. Section 1350 | |
Exhibit 101.1 | Interactive Data File | |
101.INS | XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
101.SCH | XBRL Schema Document | |
101.CAL | XBRL Calculation Linkbase Document | |
101.DEF | XBRL Definition Linkbase Document | |
101.LAB | XBRL Label Linkbase Document | |
101.PRE | XBRL Presentation Linkbase Document | |
104 | The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended |
GENCOR INDUSTRIES, INC. |
/s/ John E. Elliott |
John E. Elliott |
Chief Executive Officer |
/s/ Eric E. Mellen |
Eric E. Mellen |
Chief Financial Officer |
(Principal Financial and Accounting Officer) |