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Gentex Reports Fourth Quarter and Year End 2013 Financial Results

Gentex Reports Fourth Quarter and Year End 2013 Financial Results 
ZEELAND, MI -- (Marketwired) -- 01/29/14 --  Gentex Corporation
(NASDAQ: GNTX), the Zeeland, Michigan-based manufacturer of
automotive automatic-dimming rearview mirrors, automotive
electronics, dimmable aircraft windows, and fire protection products,
today reported financial results for the fourth quarter and calendar
year ended December 31, 2013. 
For the fourth quarter of 2013, the Company's net sales were $326.8
million, up 26% compared with net sales of $260.3 million in the
fourth quarter of 2012. For calendar year 2013, the Company's net
sales increased 7% to $1.17 billion compared to $1.10 billion for
calendar year 2012. 
The gross profit margin in the fourth quarter of 2013 was 39.4%,
compared with a gross profit margin of 34.2% in the fourth quarter of
2012, due to improvements in product mix, the impact of the
HomeLink(R) acquisition, the Company's ability to leverage fixed
overhead costs, and purchasing cost reductions, which were partially
offset by annual customer price reductions. The gross profit margin
for calendar year 2013 was 36.8%, compared with a gross profit margin
of 33.9% for calendar year 2012, primarily due to improvements in
product mix and purchasing cost reductions, which were partially
offset by annual customer price reductions. 
Net income for the fourth quarter of 2013 was $69.9 million, up 76%
compared with net income of $39.6 million in the fourth quarter of
2012. Net income in calendar year 2013 was $222.9 million, up 32%
compared with net income of $168.6 million in calendar year 2012. 
Earnings per diluted share in the fourth quarter of 2013 were $0.48,
an increase of $0.20 compared with earnings per diluted share of
$0.28 in the fourth quarter of 2012. Earnings per diluted share were
$1.55 for calendar year 2013 compared with $1.17 for calendar year
2012. 
"Gentex is excited by the continuation of the strong improvements in
our gross profit margin and continued discipline in our operating
expenses over the last several quarters," said Gentex Chairman of the
Board, and Chief Executive Officer, Fred Bauer. "These improvements
are driven by an overall improvement in the core mirror business, the
first full quarter of combined results from the HomeLink acquisition,
and HomeLink integration that is running slightly ahead of the
Company's original projections," continued Bauer. 
Mirror Unit Shipments and Net Sales 
Automotive mirror unit shipments in the fourth quarter of 2013
increased 17% compared with the fourth quarter of 2012. Automotive
net sales in the fourth quarter of 2013 were $320.3 million, up 26%
compared with automotive net sales of $254.6 million in the fourth
quarter of 2012. Automotive mirror unit shipments for calendar year
2013 increased 10% compared to calendar year 2012. Automotive net
sales for calendar year 2013 were $1.14 billion, up 6% compared with
automotive net sales of $1.07 billion in calendar year 2012. 
"It's our directive at Gentex to achieve profitable growth, whether
organically or acquired, in spite of challenges like those we faced
in 2013, with vehicle production flat to down in Europe, Japan, and
Korea," said Mark Newton, Gentex Senior Vice President, "and we're
doing it, as demonstrated by our growth in sales, the 5.2 percentage
point increase in gross profit margin quarter over quarter, and the
2.9 percentage point increase in gross profit margin year over year.
We are expected to manage this growth in spite of challenges, and to
do so with sound expense management at the same time, and we're doing
that too," continued Newton. 
Other net sales for dimmable aircraft windows and fire protection
products in the fourth quarter of 2013 were $6.5 million, up 12%
compared with $5.8 million in the fourth quarter of 2012, and for
calendar year 2013 were $27.9 million, up 23% compared with $22.6
million for calendar year 2012. 
Future Estimates 
The Company's forecasts for light vehicle production for each of the
following periods in 2014 compared with the same periods in 2013 are
based on the IHS Automotive January 2014, forecast for light vehicle
production in North America, Europe, Japan and Korea. 


 
                                                                            
    Light Vehicle Production (per IHS Automotive's January light vehicle    
                             production forecast)                           
                                (in Millions)                               
                       1st      1st             Calendar Calendar           
                     Quarter  Quarter             Year     Year             
Region                2014     2013    % Change   2014     2013    % Change 
------------------- -------- -------- --------- -------- -------- ----------
North America           4.27     4.01        6%     16.8     16.2        4% 
Europe                  5.03     4.82        4%     19.6     19.3        2% 
Japan and Korea         3.60     3.34        8%     12.7     13.5       (6)%

 
Based on the January 2014 IHS production forecast and current
forecasted product mix, the Company estimates that net sales in the
first quarter of 2014 will increase approximately 20% compared to the
first quarter of 2013 and estimates the gross profit margin to be
approximately 39%. 
The Company also estimates that E, R&D expense for the first quarter
of 2014 will increase 10 - 15% compared with E, R&D in the first
quarter of 2013. S, G&A expense is estimated to increase 20 - 25%
compared with the first quarter of 2013. 
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",
"goal", "hope", "may", "plan", "project", "will", 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; changes in consumer and
customer preferences for our products; our ability to be awarded new
business; continued uncertainty in pricing negotiations with
customers; loss of business from increased competition; customer
bankruptcies or divestiture of customer brands; fluctuation in
vehicle production schedules; changes in product mix; raw material
shortages; 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 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;
negative impact of any governmental investigations and associated
litigations including securities litigations relating to the conduct
of our business; integration of the newly acquired HomeLink business
operations; retention of the newly acquired customers of the HomeLink
business; and expansion of product offerings including those
incorporating HomeLink technology. 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 SEC. 
Fourth Quarter Conference Call 
A conference call related to this news release will be simulcast live
on the Internet beginning at 10:30 a.m. EST today, January 29, 2014.
To access that call, go to www.gentex.com and select the "Audio
Webcast" icon on the bottom of the page. Other conference calls
hosted by the Company will also be available at that site in the
future. 
About The Company 
Founded in 1974, Gentex Corporation (NASDAQ: GNTX) is a supplier of
automatic-dimming rearview mirrors and electronics to the automotive
industry, dimmable aircraft windows for aviation markets, and fire
protection products to the fire protection market. Visit the
Company's web site at www.gentex.com. 


 
                                                                            
                             GENTEX CORPORATION                             
                       AUTO-DIMMING MIRROR SHIPMENTS                        
                                (Thousands)                                 
                                                                            
                         Three Months Ended          Twelve Months ended    
                            December 31,                December 31,        
                       2013     2012   % Change    2013     2012   % Change 
                     -------- -------- --------  -------- -------- -------- 
North American                                                              
 Interior Mirrors       1,961    1,928        2%    7,858    7,726        2%
North American                                                              
 Exterior Mirrors         548      445       23%    2,179    1,736       26%
                     -------- -------- --------  -------- -------- -------- 
  Total North                                                               
   American Mirror                                                          
   Units                2,509    2,372        6%   10,038    9,462        6%
International                                                               
 Interior Mirrors       2,987    2,414       24%   11,493   10,355       11%
International                                                               
 Exterior Mirrors       1,180      919       28%    4,673    4,015       16%
                     -------- -------- --------  -------- -------- -------- 
  Total                                                                     
   International                                                            
   Mirror Units         4,167    3,333       25%   16,167   14,370       13%
Total Interior                                                              
 Mirrors                4,948    4,342       14%   19,351   18,081        7%
Total Exterior                                                              
 Mirrors                1,728    1,363       27%    6,853    5,751       19%
                     -------- -------- --------  -------- -------- -------- 
  Total Auto-Dimming                                                        
   Mirror Units         6,676    5,705       17%   26,204   23,832       10%
                     ======== ======== ========  ======== ======== ======== 

 
Note: Percent change and amounts may not total due to rounding. 


 
                                                                            
                                                                            
                                                                            
                     GENTEX CORPORATION AND SUBSIDIARIES                    
                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME                
                                                                            
                         Three Months Ended     Twelve Months ended December
                            December 31,                    31,             
                         2013         2012          2013           2012     
                     ------------ ------------ -------------- --------------
Net Sales            $326,769,678 $260,349,122 $1,171,864,171 $1,099,559,521
  Cost of Goods Sold  198,075,383  171,230,430    741,131,269    726,740,962
                     ------------ ------------ -------------- --------------
    Gross profit      128,694,295   89,118,692    430,732,902    372,818,559
                                                                            
  Engineering,                                                              
   Research &                                                               
   Development         19,840,611   18,561,953     76,495,051     85,003,602
  Selling, General &                                                        
   Administrative      13,218,027   11,738,057     49,496,038     48,359,725
  Litigation                                                                
   Settlement                  --    5,000,000             --      5,000,000
                     ------------ ------------ -------------- --------------
  Income from                                                               
   operations          95,635,657   53,818,682    304,741,813    234,455,232
  Other Income          8,502,281    4,653,819     23,322,230     15,170,368
                     ------------ ------------ -------------- --------------
Income before Income                                                        
 Taxes                104,137,938   58,472,501    328,064,043    249,625,600
Provision for Income                                                        
 Taxes                 34,256,914   18,873,867    105,134,094     81,038,760
                     ------------ ------------ -------------- --------------
Net Income           $ 69,881,024 $ 39,598,634 $  222,929,949 $  168,586,840
                     ============ ============ ============== ==============
                                                                            
Earnings Per Share                                                          
  Basic              $       0.48 $       0.28 $         1.55 $         1.18
  Diluted            $       0.48 $       0.28 $         1.55 $         1.17
Weighted Average                                                            
 Shares                                                                     
  Basic               144,344,829  142,151,791    143,460,018    143,097,530
  Diluted             145,756,809  142,588,023    144,274,171    143,968,031
                                                                            
Cash Dividends                                                              
 Declared per Share  $       0.14 $       0.13 $         0.56 $         0.52
                                                                            
                                                                            
                                                                            
                     GENTEX CORPORATION AND SUBSIDIARIES                    
                    CONDENSED CONSOLIDATED BALANCE SHEETS                   
                                              December 31,     December 31, 
                                                  2013             2012     
                                            ---------------  ---------------
ASSETS                                                                      
Cash and Short-Term Investments             $   309,591,724  $   450,481,520
Other Current Assets                            291,594,518      294,181,520
                                            ---------------  ---------------
Total Current Assets                            601,186,242      744,663,040
                                                                            
Plant and Equipment - Net                       357,021,225      349,938,172
                                                                            
Goodwill                                        307,365,845               --
Long-Term Investments                           107,005,522      141,834,034
Patents and Other Assets                        391,509,600       29,256,089
                                            ---------------  ---------------
Total Other Assets                              805,880,967      171,090,123
                                                                            
                                            ---------------  ---------------
Total Assets                                $ 1,764,088,434  $ 1,265,691,335
                                            ===============  ===============
                                                                            
LIABILITIES AND SHAREHOLDERS' INVESTMENT                                    
Current Liabilities                         $   119,980,414  $    87,957,442
Long-Term Debt                                  265,625,000               --
Deferred Income Taxes                            50,879,337       56,773,337
Shareholders' Investment                      1,327,603,683    1,120,960,556
                                            ---------------  ---------------
Total Liabilities & Shareholders'                                           
 Investment                                 $ 1,764,088,434  $ 1,265,691,335
                                            ===============  ===============

  
Investor & Media Contact Information:
Gentex Corporation
616-772-1590 x5117 
 
 
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