☒ | 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 | |
of incorporation or organization) | Identification No.) |
Title of Each Class | Trading Symbol(s) | Name of Exchange on which registered | ||
Common Stock ($.10 Par Value) | GENC | NASDAQ Global |
Large accelerated filer | ☐ | Accelerated Filer | ☐ | |||
Non-accelerated Filer | Smaller Reporting Company | |||||
Emerging Growth Company | ☐ |
Class | Outstanding at May 10, 2022 | |
Common stock, $.10 par value | 12,338,845 shares | |
Class B stock, $.10 par value | 2,318,857 shares |
Index | Page | |||||||
Part I. | ||||||||
Item 1. | ||||||||
4 | ||||||||
5 | ||||||||
6 | ||||||||
7 | ||||||||
8 | ||||||||
Item 2. | 15 | |||||||
Item 3. | 21 | |||||||
Item 4. | 21 | |||||||
Part II. | ||||||||
Item 1. | Legal Proceedings | 22 | ||||||
Item 1A. | Risk Factors | 22 | ||||||
Item 6. | Exhibits | 22 | ||||||
23 |
Item 1. Financial Statements |
March 31, 2021 (Unaudited) | September 30, 2020 | March 31, 2022 (Unaudited) | September 30, 2021 | |||||||||||||
ASSETS | ASSETS | |||||||||||||||
Current assets: | Current assets: | |||||||||||||||
Cash and cash equivalents | $ | 29,417,000 | $ | 35,584,000 | $ | 22,571,000 | $ | 23,232,000 | ||||||||
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 | ||||||||||||||
Marketable securities at fair value (cost of $94,746,000 at March 31, 2022 and $93,690,000 at September 30, 2021) | 94,501,000 | 94,976,000 | ||||||||||||||
Accounts receivable, less allowance for doubtful accounts of $349,000 at March 31, 2022 and $321,000 at September 30, 2021 | 3,924,000 | 2,622,000 | ||||||||||||||
Costs and estimated earnings in excess of billings | 0 | 6,405,000 | 1,629,000 | 1,903,000 | ||||||||||||
Inventories, net | 38,104,000 | 27,090,000 | 47,222,000 | 41,888,000 | ||||||||||||
Prepaid expenses | 1,204,000 | 1,189,000 | ||||||||||||||
Prepaid expenses and other current assets | 3,756,000 | 2,202,000 | ||||||||||||||
Total current assets | 165,914,000 | 161,758,000 | 173,603,000 | 166,823,000 | ||||||||||||
Property and equipment, net | 12,252,000 | 8,341,000 | 12,205,000 | 11,801,000 | ||||||||||||
Other long-term assets | 1,054,000 | 995,000 | 711,000 | 838,000 | ||||||||||||
Total Assets | $ | 179,220,000 | $ | 171,094,000 | $ | 186,519,000 | $ | 179,462,000 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||
Current liabilities: | Current liabilities: | |||||||||||||||
Accounts payable | $ | 2,697,000 | $ | 1,728,000 | $ | 5,741,000 | $ | 3,105,000 | ||||||||
Customer deposits | 6,026,000 | 3,853,000 | 10,286,000 | 5,244,000 | ||||||||||||
Accrued expenses | 3,134,000 | 2,605,000 | 2,442,000 | 2,645,000 | ||||||||||||
Current operating lease liabilities | 412,000 | 328,000 | 407,000 | 393,000 | ||||||||||||
Total current liabilities | 12,269,000 | 8,514,000 | 18,876,000 | 11,387,000 | ||||||||||||
Deferred and other income taxes | 1,247,000 | 746,000 | 0 | 394,000 | ||||||||||||
Non-current operating lease liabilities | 589,000 | 614,000 | 189,000 | 392,000 | ||||||||||||
Total liabilities | 14,105,000 | 9,874,000 | 19,065,000 | 12,173,000 | ||||||||||||
Commitments and contingencies | 0 | 0 | 0 | 0 | ||||||||||||
Shareholders’ equity: | 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 | ||||||||||||||
Preferred stock, par value $.10 per share; 300,000 shares authorized; 0ne issued | 0— | 0— | ||||||||||||||
Common stock, par value $.10 per share; 15,000,000 shares authorized; 12,338,845 shares issued and outstanding at March 31, 2022 and September 30, 2021 | 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 March 31, 2022 and September 30, 2021 | 232,000 | 232,000 | ||||||||||||||
Capital in excess of par value | 12,386,000 | 12,331,000 | 12,590,000 | 12,590,000 | ||||||||||||
Retained earnings | 151,267,000 | 147,428,000 | 153,398,000 | 153,233,000 | ||||||||||||
Total shareholders’ equity | 165,115,000 | 161,220,000 | 167,454,000 | 167,289,000 | ||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 179,220,000 | $ | 171,094,000 | $ | 186,519,000 | $ | 179,462,000 | ||||||||
For the Quarters Ended March 31, | For the Six Months Ended March 31, | For the Quarters Ended March 31, | For the Six Months Ended March 31, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Net revenue | $ | 21,352,000 | $ | 25,993,000 | $ | 40,316,000 | $ | 44,023,000 | $ | 30,654,000 | $ | 21,352,000 | $ | 50,760,000 | $ | 40,316,000 | ||||||||||||||||
Cost of goods sold | 15,206,000 | 18,655,000 | 31,189,000 | 32,365,000 | 24,462,000 | 15,206,000 | 40,863,000 | 31,189,000 | ||||||||||||||||||||||||
Gross profit | 6,146,000 | 7,338,000 | 9,127,000 | 11,658,000 | 6,192,000 | 6,146,000 | 9,897,000 | 9,127,000 | ||||||||||||||||||||||||
Operating expenses: | Operating expenses: | |||||||||||||||||||||||||||||||
Product engineering and development | 1,069,000 | 689,000 | 1,914,000 | 1,455,000 | 920,000 | 1,069,000 | 2,269,000 | 1,914,000 | ||||||||||||||||||||||||
Selling, general and administrative | 3,838,000 | 2,561,000 | 7,032,000 | 4,943,000 | 3,364,000 | 3,838,000 | 6,763,000 | 7,032,000 | ||||||||||||||||||||||||
Total operating expenses | 4,907,000 | 3,250,000 | 8,946,000 | 6,398,000 | 4,284,000 | 4,907,000 | 9,032,000 | 8,946,000 | ||||||||||||||||||||||||
Operating income (loss) | 1,239,000 | 4,088,000 | 181,000 | 5,260,000 | ||||||||||||||||||||||||||||
Operating income | 1,908,000 | 1,239,000 | 865,000 | 181,000 | ||||||||||||||||||||||||||||
Other income (expense), net: | Other income (expense), net: | |||||||||||||||||||||||||||||||
Interest and dividend income, net of fees | 327,000 | 763,000 | 1,130,000 | 1,395,000 | 296,000 | 327,000 | 573,000 | 1,130,000 | ||||||||||||||||||||||||
Net realized and unrealized gains (losses) on marketable securities, net | 1,294,000 | (5,670,000 | ) | 3,488,000 | (4,353,000 | ) | (1,488,000 | ) | 1,294,000 | (1,065,000 | ) | 3,488,000 | ||||||||||||||||||||
Other | 0 | 0 | 0 | (10,000 | ) | (137,000 | ) | — | (137,000 | ) | — | |||||||||||||||||||||
1,621,000 | (4,907,000 | ) | 4,618,000 | (2,968,000 | ) | (1,329,000 | ) | 1,621,000 | (629,000 | ) | 4,618,000 | |||||||||||||||||||||
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 | |||||||||||||||||||||||||||
Income before income tax expense | 579,000 | 2,860,000 | 236,000 | 4,799,000 | ||||||||||||||||||||||||||||
Income tax expense | 140,000 | 572,000 | 71,000 | 960,000 | ||||||||||||||||||||||||||||
Net income (loss) | $ | 2,288,000 | $ | (655,000 | ) | $ | 3,839,000 | $ | 1,834,000 | |||||||||||||||||||||||
Net income | $ | 439,000 | $ | 2,288,000 | $ | 165,000 | $ | 3,839,000 | ||||||||||||||||||||||||
Basic Income (Loss) per Common Share | $ | 0.16 | $ | (0.04 | ) | $ | 0.26 | $ | 0.13 | |||||||||||||||||||||||
Basic income per common share | $ | 0.03 | $ | 0.16 | $ | 0.01 | $ | 0.26 | ||||||||||||||||||||||||
Diluted Income (Loss) per Common Share | $ | 0.16 | $ | (0.04 | ) | $ | 0.26 | $ | 0.12 | |||||||||||||||||||||||
Diluted income per common share | $ | 0.03 | $ | 0.16 | $ | 0.01 | $ | 0.26 | ||||||||||||||||||||||||
For the Six Months Ended March 31, 2022 | ||||||||||||||||||||||||||||
Common Stock | Class B Stock | Capital in Excess of | Retained | Total Shareholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Par Value | Earnings | Equity | ||||||||||||||||||||||
September 30, 2021 | 12,338,845 | $ | 1,234,000 | 2,318,857 | $ | 232,000 | $ | 12,590,000 | $ | 153,233,000 | $ | 167,289,000 | ||||||||||||||||
Net loss | — | — | — | — | — | (274,000 | ) | (274,000 | ) | |||||||||||||||||||
December 31, 2021 | 12,338,845 | $ | 1,234,000 | 2,318,857 | $ | 232,000 | $ | 12,590,000 | $ | 152,959,000 | $ | 167,015,000 | ||||||||||||||||
Net income | — | — | — | — | — | 439,000 | 439,000 | |||||||||||||||||||||
March 31, 2022 | 12,338,845 | $ | 1,234,000 | 2,318,857 | $ | 232,000 | $ | 12,590,000 | $ | 153,398,000 | $ | 167,454,000 | ||||||||||||||||
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 | ||||||||||||||||
For the Six Months Ended March 31, 2021 | ||||||||||||||||||||||||||||
Common Stock | Class B Stock | Capital in Excess of | Retained | Total Shareholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Par Value | Earnings | Equity | ||||||||||||||||||||||
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 | ||||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 3,839,000 | $ | 1,834,000 | $ | 165,000 | $ | 3,839,000 | ||||||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||||||||||
Purchase of marketable securities | (54,048,000 | ) | (73,393,000 | ) | (68,803,000 | ) | (54,048,000 | ) | ||||||||
Proceeds from sale and maturity of marketable securities | 53,067,000 | 72,181,000 | 68,043,000 | 53,067,000 | ||||||||||||
Change in value of marketable securities | (3,167,000 | ) | 4,259,000 | 1,235,000 | (3,167,000 | ) | ||||||||||
Deferred and other income taxes | 501,000 | (2,863,000 | ) | (456,000 | ) | 501,000 | ||||||||||
Depreciation and amortization | 1,210,000 | 831,000 | 1,299,000 | 1,210,000 | ||||||||||||
Provision for doubtful accounts | 25,000 | 25,000 | 75,000 | 25,000 | ||||||||||||
Stock-based compensation | — | 35,000 | ||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||
Changes in assets and liabilities, excluding the initial effects of business acquisitions: | ||||||||||||||||
Accounts receivable | (1,576,000 | ) | (788,000 | ) | (1,377,000 | ) | (1,576,000 | ) | ||||||||
Costs and estimated earnings in excess of billings | 6,405,000 | 5,046,000 | 274,000 | 6,405,000 | ||||||||||||
Inventories (excluding the effect of the Blaw-Knox acquisition) | (629,000 | ) | (1,697,000 | ) | ||||||||||||
Prepaid expenses | (15,000 | ) | (1,645,000 | ) | ||||||||||||
Inventories | (5,334,000 | ) | (629,000 | ) | ||||||||||||
Prepaid expenses and other current assets | (1,554,000 | ) | (15,000 | ) | ||||||||||||
Accounts payable | 969,000 | 2,473,000 | 2,636,000 | 969,000 | ||||||||||||
Customer deposits | 2,173,000 | 2,795,000 | 5,042,000 | 2,173,000 | ||||||||||||
Accrued expenses | 529,000 | 61,000 | (200,000 | ) | 529,000 | |||||||||||
Total adjustments | 5,444,000 | 7,320,000 | 880,000 | 5,444,000 | ||||||||||||
Cash flows provided by operating activities | 9,283,000 | 9,154,000 | 1,045,000 | 9,283,000 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Acquisition of Blaw- Knox assets | (13,777,000 | ) | — | |||||||||||||
Acquisition of Blaw-Knox assets | — | (13,777,000 | ) | |||||||||||||
Capital expenditures | (1,729,000 | ) | (718,000 | ) | (1,706,000 | ) | (1,729,000 | ) | ||||||||
Cash flows used in investing activities | (15,506,000 | ) | (718,000 | ) | (1,706,000 | ) | (15,506,000 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from stock option exercises | 56,000 | — | — | 56,000 | ||||||||||||
Cash flows provided by financing activities | 56,000 | — | — | 56,000 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | (6,167,000 | ) | 8,436,000 | |||||||||||||
Net decrease in cash and cash equivalents | (661,000 | ) | (6,167,000 | ) | ||||||||||||
Cash and cash equivalents at: | ||||||||||||||||
Beginning of year | 35,584,000 | 10,302,000 | ||||||||||||||
Beginning of period | 23,232,000 | 35,584,000 | ||||||||||||||
End of year | $ | 29,417,000 | $ | 18,738,000 | ||||||||||||
End of period | $ | 22,571,000 | $ | 29,417,000 | ||||||||||||
Non-cash investing and financing activities: | ||||||||||||||||
Operating lease right-of-use | $ | 254,000 | $ | — | $ | — | $ | 254,000 | ||||||||
Operating lease liabilities | $ | 254,000 | $ | — | $ | — | $ | 254,000 |
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 | $ | 19,998,000 | $ | 0 | $ | 0 | $ | 19,998,000 | ||||||||
Mutual Funds | 10,130,000 | 0 | 0 | 10,130,000 | ||||||||||||
Exchange-Traded Funds | 9,849,000 | 0 | 0 | 9,849,000 | ||||||||||||
Corporate Bonds | 0 | 24,022,000 | 0 | 24,022,000 | ||||||||||||
Government Securities | 27,960,000 | 0 | 0 | 27,960,000 | ||||||||||||
Cash and Money Funds | 2,542,000 | 0 | 0 | 2,542,000 | ||||||||||||
Total | $ | 70,479,000 | $ | 24,022,000 | $ | 0 | $ | 94,501,000 | ||||||||
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 | ||||||||
Fair Value Measurements | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Equities | $ | 14,734,000 | $ | 0 | $ | 0 | $ | 14,734,000 | ||||||||
Mutual Funds | 10,357,000 | 0 | 0 | 10,357,000 | ||||||||||||
Exchange-Traded Funds | 9,458,000 | 0 | 0 | 9,458,000 | ||||||||||||
Corporate Bonds | 0 | 24,853,000 | 0 | 24,853,000 | ||||||||||||
Government Securities | 30,999,000 | 0 | 0 | 30,999,000 | ||||||||||||
Cash and Money Funds | 4,575,000 | 0 | 0 | 4,575,000 | ||||||||||||
Total | $ | 70,123,000 | $ | 24,853,000 | $ | 0 | $ | 94,976,000 | ||||||||
March 31, 2021 | September 30, 2020 | March 31, 2022 | September 30, 2021 | |||||||||||||
Raw materials | $ | 24,884,000 | $ | 14,607,000 | $ | 29,847,000 | $ | 25,858,000 | ||||||||
Work in process | 5,942,000 | 3,633,000 | 7,858,000 | 6,280,000 | ||||||||||||
Finished goods | 7,238,000 | 8,810,000 | 9,517,000 | 9,730,000 | ||||||||||||
Used equipment | 40,000 | 40,000 | 0 | 20,000 | ||||||||||||
$ | 38,104,000 | $ | 27,090,000 | $ | 47,222,000 | $ | 41,888,000 | |||||||||
March 31, 2021 | September 30, 2020 | |||||||||||||||
March 31, 2022 | September 30, 2021 | |||||||||||||||
Costs incurred on uncompleted contracts | $ | 7,192,000 | $ | 10,390,000 | $ | 19,501,000 | $ | 11,483,000 | ||||||||
Estimated earnings | 2,631,000 | 4,680,000 | 5,875,000 | 4,395,000 | ||||||||||||
9,823,000 | 15,070,000 | 25,376,000 | 15,878,000 | |||||||||||||
Billings to date | 9,823,000 | 8,665,000 | 23,747,000 | 13,975,000 | ||||||||||||
Costs and estimated earnings in excess of billings | $ | 0 | $ | 6,405,000 | $ | 1,629,000 | $ | 1,903,000 | ||||||||
Quarter Ended March 31, | Six Months Ended March 31, | Quarter Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Net Income (Loss) | 2,288,000 | $ | (655,000 | ) | $ | 3,839,000 | $ | 1,834,000 | ||||||||||||||||||||||||
Net Income | $ | 439,000 | $ | 2,288,000 | $ | 165,000 | $ | 3,839,000 | ||||||||||||||||||||||||
Common Shares: | ||||||||||||||||||||||||||||||||
Weighted average common shares outstanding | 14,614,000 | 14,586,000 | 14,611,000 | 14,586,000 | 14,658,000 | 14,614,000 | 14,658,000 | 14,611,000 | ||||||||||||||||||||||||
Effect of dilutive stock options | 133,000 | — | 129,000 | 128,000 | 0 | 133,000 | 0 | 129,000 | ||||||||||||||||||||||||
Diluted shares outstanding | 14,747,000 | 14,586,000 | 14,740,000 | 14,714,000 | 14,658,000 | 14,747,000 | 14,658,000 | 14,740,000 | ||||||||||||||||||||||||
Basic: | ||||||||||||||||||||||||||||||||
Net income (loss) per share | $ | 0.16 | $ | (0.04 | ) | $ | 0.26 | $ | 0.13 | |||||||||||||||||||||||
Net income per share | $ | 0.03 | $ | 0.16 | $ | 0.01 | $ | 0.26 | ||||||||||||||||||||||||
Diluted: | ||||||||||||||||||||||||||||||||
Net income (loss) per share | $ | 0.16 | $ | (0.04 | ) | $ | 0.26 | $ | 0.12 | |||||||||||||||||||||||
Net income per share | $ | 0.03 | $ | 0.16 | $ | 0.01 | $ | 0.26 | ||||||||||||||||||||||||
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 | ||||||||
Quarter Ended March 31, | Six Months Ended March 31, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Equipment sales recognized over time | $ | 10,998,000 | $ | 3,870,000 | $ | 20,772,000 | $ | 8,002,000 | ||||||||
Equipment sales recognized at a point in time | 10,475,000 | 9,565,000 | 14,673,000 | 19,701,000 | ||||||||||||
Parts and component sales | 7,381,000 | 6,830,000 | 12,824,000 | 10,761,000 | ||||||||||||
Freight revenue | 1,495,000 | 1,147,000 | 2,079,000 | 1,892,000 | ||||||||||||
Other | 305,000 | (60,000 | ) | 412,000 | (40,000 | ) | ||||||||||
Net revenue | $ | 30,654,000 | $ | 21,352,000 | $ | 50,760,000 | $ | 40,316,000 | ||||||||
March 31, 2021 | September 30, 2020 | March 31, 2022 | September 30, 2021 | |||||||||||||
Operating lease ROU asset included in other long-term assets | $ | 1,001,000 | $ | 942,000 | $ | 596,000 | $ | 785,000 | ||||||||
Current operating lease liability | 412,000 | 328,000 | 407,000 | 393,000 | ||||||||||||
Non-current operating lease liability | 589,000 | 614,000 | 189,000 | 392,000 | ||||||||||||
Weighted average remaining lease term (in years) | 2.50 | 2.92 | 1.50 | 2.00 | ||||||||||||
Weighted average discount rate used in calculating ROU asset | 4.0 | % | 4.0 | % | 4.0 | % | 4.0 | % |
Fiscal Year | Annual Lease Payments | Annual Lease Payments | ||||||
2021 (remaining 6 months) | $ | 233,000 | ||||||
2022 | 419,000 | |||||||
2022 (remaining 6 months) | $ | 210,000 | ||||||
2023 | 400,000 | 398,000 | ||||||
2024 | 6,000 | |||||||
Total | 1,052,000 | 614,000 | ||||||
Less interest | (51,000 | ) | (18,000 | ) | ||||
Present value of lease liabilities | $ | 1,001,000 | $ | 596,000 | ||||
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Item 3. Quantitative and Qualitative Disclosures about Market Risk |
Item 4. Controls and Procedures |
Item 1. Legal Proceedings |
Item 1A. Risk Factors |
Concerns over inflation, geopolitical issues, global financial markets and the COVID-19 pandemic have led to increased economic instability and expectations of slower global economic growth. Our business may be adversely affected by any such economic instability or unpredictability. Russia’s invasion of Ukraine and related sanctions has led to increased oil and natural gas prices. Such sanctions and disruptions to the global economy may lead to additional inflation and may disrupt the global supply chain and could have a material adverse effect on our ability to secure supplies. The increased cost of oil, along with increased or prolonged periods of inflation, would likely increase our costs in the form of higher wages, further inflation on supplies and equipment necessary to operate our business. There is a risk that one or more of our suppliers could be negatively affected by global economic instability, which could adversely affect our ability to operate efficiently and timely complete our operational goals. | Item 6. Exhibits |
Exhibit 31.1 | Certification of | |
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 | |
Exhibit 101.1 | Interactive Data File | |
Exhibit 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 | |
Exhibit 101.SCH | XBRL Schema Document | |
Exhibit 101.CAL | XBRL Calculation Linkbase Document | |
Exhibit 101.DEF | XBRL Definition Linkbase Document | |
Exhibit 101.LAB | XBRL Label Linkbase Document | |
Exhibit 101.PRE | XBRL Presentation Linkbase Document | |
Exhibit 104 | The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, |
GENCOR INDUSTRIES, INC. |
/s/ |
Marc G. Elliott |
May |
/s/ Eric E. Mellen |
Eric E. Mellen |
Chief Financial Officer |
(Principal Financial and Accounting Officer) |
May |