☑ | 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 |
Michigan
|
38-2030505
|
||||||||||
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
||||||||||
600 N. Centennial | |||||||||||
Zeeland | |||||||||||
Michigan | 49464 | ||||||||||
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, par value $0.06 per share | GNTX | NASDAQ Global Select Market |
Large accelerated filer
|
☑ |
Accelerated filer
|
☐ | |||||||||||
Non-accelerated filer
|
☐ |
Smaller reporting company
|
☐ | |||||||||||
Emerging growth company
|
☐ |
Class
|
Shares Outstanding, October 18, 2019 | |||||||
Common Stock, $.06 Par Value
|
252,972,254 |
Part I - Financial Information
|
Page
|
||||||||||
Item 1.
|
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Item 2.
|
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Item 3.
|
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Item 4.
|
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Part II - Other Information
|
|||||||||||
Item 1A.
|
|||||||||||
Item 2.
|
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Item 6.
|
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Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||
NET SALES
|
$ | 477,761,417 | $ | 460,253,433 | $ | 1,415,061,768 | $ | 1,380,654,978 | ||||||||||||||||||||||||||||||||||||
COST OF GOODS SOLD
|
297,440,131 | 287,263,147 | 888,558,373 | 862,231,819 | ||||||||||||||||||||||||||||||||||||||||
Gross profit | 180,321,286 | 172,990,286 | 526,503,395 | 518,423,159 | ||||||||||||||||||||||||||||||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||||||||||||||||||||||||||||||
Engineering, research and development | 29,398,725 | 26,888,999 | 85,847,249 | 80,138,722 | ||||||||||||||||||||||||||||||||||||||||
Selling, general & administrative | 22,786,881 | 18,673,376 | 63,019,167 | 55,658,189 | ||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 52,185,606 | 45,562,375 | 148,866,416 | 135,796,911 | ||||||||||||||||||||||||||||||||||||||||
Income from operations | 128,135,680 | 127,427,911 | 377,636,979 | 382,626,248 | ||||||||||||||||||||||||||||||||||||||||
OTHER INCOME (LOSS) | ||||||||||||||||||||||||||||||||||||||||||||
Investment income | 3,353,510 | 3,180,683 | 8,756,638 | 8,062,421 | ||||||||||||||||||||||||||||||||||||||||
Other income (loss), net | 90,323 | (73,979) | 376,983 | 578,655 | ||||||||||||||||||||||||||||||||||||||||
Total other income | 3,443,833 | 3,106,704 | 9,133,621 | 8,641,076 | ||||||||||||||||||||||||||||||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 131,579,513 | 130,534,615 | 386,770,600 | 391,267,324 | ||||||||||||||||||||||||||||||||||||||||
PROVISION FOR INCOME TAXES | 19,681,661 | 19,198,798 | 61,633,712 | 59,658,782 | ||||||||||||||||||||||||||||||||||||||||
NET INCOME | $ | 111,897,852 | $ | 111,335,817 | $ | 325,136,888 | $ | 331,608,542 | ||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE: (1)
|
||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.44 | $ | 0.42 | $ | 1.27 | $ | 1.23 | ||||||||||||||||||||||||||||||||||||
Diluted | $ | 0.44 | $ | 0.42 | $ | 1.26 | $ | 1.22 | ||||||||||||||||||||||||||||||||||||
Cash Dividends Declared per Share | $ | 0.115 | $ | 0.110 | $ | 0.345 | $ | 0.330 | ||||||||||||||||||||||||||||||||||||
(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.
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||||||
Net Income
|
$ | 111,897,852 | $ | 111,335,817 | $325,136,888 | $331,608,542 | |||||||||||||||||||||||||||||
Other comprehensive (loss) income before tax: | |||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | (1,623,102) | (1,174,213) | (1,799,789) | (2,013,638) | |||||||||||||||||||||||||||||||
Unrealized gains on derivatives | — | 16,165 | — | 98,769 | |||||||||||||||||||||||||||||||
Unrealized gains (losses) on debt securities, net | 457,438 | (609,422) | 3,338,762 | (932,953) | |||||||||||||||||||||||||||||||
Other comprehensive (loss) income, before tax | (1,165,664) | (1,767,470) | 1,538,973 | (2,847,822) | |||||||||||||||||||||||||||||||
Income tax impact related to components of other comprehensive income | 96,062 | (124,584) | 701,140 | (175,177) | |||||||||||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | (1,261,726) | (1,642,886) | 837,833 | (2,672,645) | |||||||||||||||||||||||||||||||
Comprehensive Income
|
$ | 110,636,126 | $ | 109,692,931 | $ | 325,974,721 | $ | 328,935,897 |
Common
Stock Shares |
Common
Stock Amount |
Additional
Paid-In Capital |
Retained
Earnings |
Accumulated
Other Comprehensive Income (Loss) |
Total
Shareholders’ Investment |
||||||||||||||||||||||||||||||
BALANCE AS OF JULY 1, 2019 | 254,779,119 | $ | 15,286,747 | $ | 777,238,253 | $ | 1,111,310,014 | $ | 499,221 | $ | 1,904,334,235 | ||||||||||||||||||||||||
Issuance of common stock from stock plan transactions | 1,771,463 | 106,287 | 26,180,774 | — | — | 26,287,061 | |||||||||||||||||||||||||||||
Repurchases of common stock | (3,569,577) | (214,174) | (9,744,945) | (86,665,884) | — | (96,625,003) | |||||||||||||||||||||||||||||
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock | — | — | 5,788,286 | — | — | 5,788,286 | |||||||||||||||||||||||||||||
Dividends declared ($.115 per share)
|
— | — | — | (29,092,442) | — | (29,092,442) | |||||||||||||||||||||||||||||
Net income | — | — | — | 111,897,852 | — | 111,897,852 | |||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (1,261,726) | (1,261,726) | |||||||||||||||||||||||||||||
BALANCE AS OF SEPTEMBER 30, 2019 | 252,981,005 | $ | 15,178,860 | $ | 799,462,368 | $ | 1,107,449,540 | $ | (762,505) | $ | 1,921,328,263 | ||||||||||||||||||||||||
BALANCE AS OF JULY 1, 2018 | 268,923,121 | $ | 16,135,387 | $ | 748,794,815 | $ | 1,157,048,214 | $ | (479,104) | $ | 1,921,499,312 | ||||||||||||||||||||||||
Issuance of common stock from stock plan transactions | 702,296 | 42,138 | 8,340,935 | — | — | 8,383,073 | |||||||||||||||||||||||||||||
Repurchases of common stock | (7,508,249) | (450,495) | (18,545,378) | (153,547,831) | — | (172,543,703) | |||||||||||||||||||||||||||||
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock | — | — | 4,905,626 | — | — | 4,905,626 | |||||||||||||||||||||||||||||
Dividends declared ($.110 per share)
|
— | — | — | (28,832,984) | — | (28,832,984) | |||||||||||||||||||||||||||||
Net income | — | — | — | 111,335,817 | — | 111,335,817 | |||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (1,642,886) | (1,642,886) | |||||||||||||||||||||||||||||
BALANCE AS OF SEPTEMBER 30, 2018 | 262,117,168 | 15,727,030 | 743,495,999 | 1,086,003,216 | (2,121,990) | 1,843,104,255 |
Common
Stock Shares |
Common
Stock Amount |
Additional
Paid-In Capital |
Retained
Earnings |
Accumulated
Other Comprehensive Income (Loss) |
Total
Shareholders’ Investment |
||||||||||||||||||||||||||||||
BALANCE AS OF JANUARY 1, 2019 | 259,328,613 | $ | 15,559,717 | $ | 745,324,144 | $ | 1,102,468,137 | $ | (1,600,338) | $ | 1,861,751,660 | ||||||||||||||||||||||||
Issuance of common stock from stock plan transactions | 5,021,616 | 301,297 | 67,920,578 | — | — | 68,221,875 | |||||||||||||||||||||||||||||
Repurchases of common stock | (11,369,224) | (682,154) | (29,709,788) | (232,371,433) | — | (262,763,375) | |||||||||||||||||||||||||||||
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock | — | — | 15,927,434 | — | — | 15,927,434 | |||||||||||||||||||||||||||||
Dividends declared ($.345 per share)
|
— | — | — | (87,784,052) | — | (87,784,052) | |||||||||||||||||||||||||||||
Net income | — | — | — | 325,136,888 | — | 325,136,888 | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 837,833 | 837,833 | |||||||||||||||||||||||||||||
BALANCE AS OF SEPTEMBER 30, 2019 | 252,981,005 | $ | 15,178,860 | $ | 799,462,368 | $ | 1,107,449,540 | $ | (762,505) | $ | 1,921,328,263 | ||||||||||||||||||||||||
BALANCE AS OF JANUARY 1, 2018 | 280,281,321 | $ | 16,816,879 | $ | 723,510,672 | $ | 1,301,997,327 | $ | 7,193,383 | $ | 2,049,518,261 | ||||||||||||||||||||||||
Issuance of common stock from stock plan transactions | 4,960,412 | 297,625 | 61,082,042 | — | — | 61,379,666 | |||||||||||||||||||||||||||||
Repurchases of common stock | (23,124,565) | (1,387,474) | (54,655,280) | (465,706,871) | — | (521,749,624) | |||||||||||||||||||||||||||||
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock | — | — | 13,558,565 | — | — | 13,558,565 | |||||||||||||||||||||||||||||
Impact of ASU 2016-01 Adoption | — | — | — | 6,642,727 | (6,642,727) | — | |||||||||||||||||||||||||||||
Dividends declared ($.330 per share)
|
— | — | — | (88,538,509) | — | (88,538,509) | |||||||||||||||||||||||||||||
Net income | — | — | — | 331,608,542 | — | 331,608,542 | |||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (2,672,645) | (2,672,647) | |||||||||||||||||||||||||||||
BALANCE AS OF SEPTEMBER 30, 2018 | 262,117,168 | $ | 15,727,030 | $ | 743,495,999 | $ | 1,086,003,216 | $ | (2,121,990) | $ | 1,843,104,255 |
2019 | 2018 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|||||||||||
Net income | $ | 325,136,888 | $ | 331,608,542 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 79,331,513 | 80,748,272 | |||||||||
(Gain) on disposal of assets | (148,376) | (145,777) | |||||||||
Loss on disposal of assets | 495,697 | 26,839 | |||||||||
(Gain) on sale of investments | (593,351) | (1,508,411) | |||||||||
Loss on sale of investments | — | 532,494 | |||||||||
Change in deferred income taxes | 2,189,818 | (5,538,048) | |||||||||
Stock-based compensation expense related to employee stock options, employee stock purchases and restricted stock | 15,927,434 | 13,558,557 | |||||||||
Change in operating assets and liabilities: | |||||||||||
Accounts receivable, net | (39,570,916) | (16,200,315) | |||||||||
Inventories | (13,395,196) | 3,371,546 | |||||||||
Prepaid expenses and other | (2,729,945) | (14,797,969) | |||||||||
Accounts payable | 2,499,481 | 143,514 | |||||||||
Accrued liabilities, excluding dividends declared and short-term debt | 14,797,251 | 6,408,044 | |||||||||
Net cash provided by operating activities | 383,940,298 | 398,207,288 | |||||||||
CASH FLOWS (USED FOR) INVESTING ACTIVITIES: | |||||||||||
Activity in available-for-sale securities: | |||||||||||
Sales proceeds | 57,087,935 | 54,078,232 | |||||||||
Maturities and calls | 9,714,000 | 51,892,136 | |||||||||
Purchases | (66,360,636) | (180,657,259) | |||||||||
Plant and equipment additions | (58,322,472) | (68,771,193) | |||||||||
Proceeds from sale of plant and equipment | 1,937,207 | 194,200 | |||||||||
Decrease in other assets | (3,111,644) | (4,557,125) | |||||||||
Net cash (used for) investing activities | (59,055,610) | (147,821,009) | |||||||||
CASH FLOWS (USED FOR) FINANCING ACTIVITIES: | |||||||||||
Repayment of debt | — | (78,000,000) | |||||||||
Issuance of common stock from stock plan transactions | 68,221,875 | 61,379,666 | |||||||||
Cash dividends paid | (87,217,383) | (87,733,776) | |||||||||
Repurchases of common stock | (262,763,375) | (521,749,624) | |||||||||
Net cash (used for) financing activities | (281,758,883) | (626,103,734) | |||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 43,125,805 | (375,717,455) | |||||||||
CASH AND CASH EQUIVALENTS, beginning of period | 217,025,278 | 569,734,496 | |||||||||
CASH AND CASH EQUIVALENTS, end of period | $ | 260,151,083 | $ | 194,017,041 |
Other Intangible Assets | Gross | Accumulated Amortization | Net | Assumed Useful Life | ||||||||||
Gentex Patents | $ | 37,160,431 | $ | (22,094,953) | $ | 15,065,478 | Various | |||||||
Other Intangible Assets | ||||||||||||||
HomeLink® Trade Names and Trademarks
|
$ | 52,000,000 | $ | — | $ | 52,000,000 | Indefinite | |||||||
HomeLink® Technology
|
180,000,000 | (90,000,000) | 90,000,000 | 12 years | ||||||||||
Existing Customer Platforms | 43,000,000 | (25,800,000) | 17,200,000 | 10 years | ||||||||||
Exclusive Licensing Agreement | 96,000,000 | — | 96,000,000 | Indefinite | ||||||||||
Total Other Intangible Assets | $ | 371,000,000 | $ | (115,800,000) | $ | 255,200,000 | ||||||||
Total Patents & Other Intangible Assets | $ | 408,160,431 | $ | (137,894,953) | $ | 270,265,478 |
Other Intangible Assets
|
Gross
|
Accumulated Amortization
|
Net
|
Assumed Useful Life
|
||||||||||
Gentex Patents
|
$ | 36,737,434 | $ | (21,014,168) | $ | 15,723,266 | Various | |||||||
Other Intangible Assets | ||||||||||||||
HomeLink® Trade Names and Trademarks
|
$ | 52,000,000 | $ | — | $ | 52,000,000 | Indefinite | |||||||
HomeLink® Technology
|
180,000,000 | (78,750,000) | 101,250,000 | 12 years | ||||||||||
Existing Customer Platforms | 43,000,000 | (22,575,000) | 20,425,000 | 10 years | ||||||||||
Exclusive Licensing Agreement
|
96,000,000 | — | 96,000,000 | Indefinite | ||||||||||
Total Other Intangible Assets | $ | 371,000,000 | $ | (101,325,000) | $ | 269,675,000 | ||||||||
Total Patents & Other Intangible Assets | $ | 407,737,434 | $ | (122,339,168) | $ | 285,398,266 |
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||||||||||||
Total as of |
Quoted Prices in
Active Markets for
Identical Assets
|
Significant Other
Observable
Inputs
|
Significant
Unobservable
Inputs
|
||||||||||||||||||||||||||||||||
Description
|
September 30, 2019 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||||
Cash & Cash Equivalents
|
$ | 260,151,083 | $ | 260,151,083 | $ | — | $ | — | |||||||||||||||||||||||||||
Short-Term Investments:
|
|||||||||||||||||||||||||||||||||||
Certificate of Deposit | 150,299,384 | 150,299,384 | — | — | |||||||||||||||||||||||||||||||
Government Securities | 38,163,353 | — | 38,163,353 | — | |||||||||||||||||||||||||||||||
Corporate Bonds | 16,050,560 | — | 16,050,560 | — | |||||||||||||||||||||||||||||||
Municipal Bonds | 1,671,264 | — | 1,671,264 | — | |||||||||||||||||||||||||||||||
Other | 971,726 | 971,726 | — | — | |||||||||||||||||||||||||||||||
Long-Term Investments: | |||||||||||||||||||||||||||||||||||
Corporate Bonds | 42,320,659 | — | 42,320,659 | — | |||||||||||||||||||||||||||||||
Municipal Bonds | 40,467,299 | — | 40,467,299 | — | |||||||||||||||||||||||||||||||
Government Securities | 11,637,510 | — | 11,637,510 | — | |||||||||||||||||||||||||||||||
Total | $ | 561,732,838 | $ | 411,422,193 | $ | 150,310,645 | $ | — |
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||||||||||||
Total as of |
Quoted Prices in
Active Markets for
Identical Assets
|
Significant Other
Observable
Inputs
|
Significant
Unobservable
Inputs
|
||||||||||||||||||||||||||||||||
Description
|
December 31, 2018 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||||
Cash & Cash Equivalents
|
$ | 217,025,278 | $ | 217,025,278 | $ | — | $ | — | |||||||||||||||||||||||||||
Short-Term Investments:
|
|||||||||||||||||||||||||||||||||||
Certificate of Deposit | 150,299,384 | 150,299,384 | — | — | |||||||||||||||||||||||||||||||
Government Securities | 9,176,227 | — | 9,176,227 | — | |||||||||||||||||||||||||||||||
Corporate Bonds | 6,967,700 | — | 6,967,700 | — | |||||||||||||||||||||||||||||||
Other | 2,219,688 | 2,219,688 | — | — | |||||||||||||||||||||||||||||||
Long-Term Investments: | |||||||||||||||||||||||||||||||||||
Corporate Bonds | 60,369,930 | — | 60,369,930 | — | |||||||||||||||||||||||||||||||
Municipal Bonds | 18,025,432 | — | 18,025,432 | — | |||||||||||||||||||||||||||||||
Government Securities | 56,483,720 | — | 56,483,720 | — | |||||||||||||||||||||||||||||||
Total | $ | 520,567,359 | $ | 369,544,350 | $ | 151,023,009 | $ | — |
Unrealized
|
|||||||||||||||||||||||||||||
Cost
|
Gains
|
Losses
|
Market Value
|
||||||||||||||||||||||||||
Short-Term Investments:
|
|||||||||||||||||||||||||||||
Certificate of Deposit | $ | 150,299,384 | $ | — | $ | — | $ | 150,299,384 | |||||||||||||||||||||
Government Securities | 38,067,382 | 97,271 | (1,300) | 38,163,353 | |||||||||||||||||||||||||
Municipal Bonds | 1,673,133 | 13,163 | (15,032) | 1,671,264 | |||||||||||||||||||||||||
Corporate Bonds | 15,955,794 | 94,766 | — | 16,050,560 | |||||||||||||||||||||||||
Other | 971,726 | — | — | 971,726 | |||||||||||||||||||||||||
Long-Term Investments: | |||||||||||||||||||||||||||||
Corporate Bonds | 41,191,483 | 1,130,771 | (1,595) | 42,320,659 | |||||||||||||||||||||||||
Municipal Bonds | 39,170,735 | 1,296,564 | — | 40,467,299 | |||||||||||||||||||||||||
Government Securities | 11,539,947 | 97,563 | — | 11,637,510 | |||||||||||||||||||||||||
Total | $ | 298,869,584 | $ | 2,730,098 | $ | (17,927) | $ | 301,581,755 |
Unrealized | |||||||||||||||||||||||||||||
Cost | Gains | Losses | Market Value | ||||||||||||||||||||||||||
Short-Term Investments:
|
|||||||||||||||||||||||||||||
Certificate of Deposit | $ | 150,299,384 | $ | — | $ | — | $ | 150,299,384 | |||||||||||||||||||||
Government Securities | 9,186,586 | — | (10,359) | 9,176,227 | |||||||||||||||||||||||||
Corporate Bonds | 6,981,305 | — | (13,605) | 6,967,700 | |||||||||||||||||||||||||
Other | 2,219,688 | — | — | 2,219,688 | |||||||||||||||||||||||||
Long-Term Investments: | |||||||||||||||||||||||||||||
Corporate Bonds | 60,659,498 | 50,340 | (339,908) | 60,369,930 | |||||||||||||||||||||||||
Municipal Bonds | 17,840,518 | 184,914 | — | 18,025,432 | |||||||||||||||||||||||||
Government Securities | 56,280,552 | 205,553 | (2,385) | 56,483,720 | |||||||||||||||||||||||||
Total | $ | 303,467,531 | $ | 440,807 | $ | (366,257) | $ | 303,542,081 |
Aggregate Unrealized Losses | Aggregate Fair Value | ||||||||||
Less than one year
|
$ | 17,927 | $ | 10,055,721 | |||||||
Greater than one year
|
— | — | |||||||||
Total
|
$ | 17,927 | $ | 10,055,721 |
Aggregate Unrealized Losses
|
Aggregate Fair Value
|
||||||||||
Less than one year
|
$ | 365,824 | $ | 68,722,980 | |||||||
Greater than one year
|
433 | 3,000,000 | |||||||||
Total
|
$ | 366,257 | $ | 71,722,980 |
Due within one year
|
$ | 206,184,561 | |||
Due between one and five years
|
59,332,380 | ||||
Due over five years
|
35,093,088 | ||||
$ | 300,610,029 |
September 30, 2019 | December 31, 2018 | ||||||||||
Raw materials
|
$ | 158,436,983 | $ | 139,058,541 | |||||||
Work-in-process
|
32,096,512 | 35,386,615 | |||||||||
Finished goods
|
48,143,300 | 50,836,443 | |||||||||
Total Inventory
|
$ | 238,676,795 | $ | 225,281,599 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2019 | 2019 | |||||||||||||||||||||||||
Basic Earnings Per Share | ||||||||||||||||||||||||||
Net Income | $ | 111,897,852 | $ | 325,136,888 | ||||||||||||||||||||||
Less: Allocated to participating securities | 1,389,659 | 3,699,548 | ||||||||||||||||||||||||
Net Income available to common shareholders | $ | 110,508,193 | $ | 321,437,340 | ||||||||||||||||||||||
Basic weighted average shares outstanding | 251,075,859 | 252,811,950 | ||||||||||||||||||||||||
Net Income per share - Basic | $ | 0.44 | $ | 1.27 | ||||||||||||||||||||||
Diluted Earnings Per Share | ||||||||||||||||||||||||||
Allocation of Net Income used in basic computation | $ | 110,508,193 | $ | 321,437,340 | ||||||||||||||||||||||
Reallocation of undistributed earnings | 6,051 | 15,389 | ||||||||||||||||||||||||
Net Income available to common shareholders - Diluted | $ | 110,514,244 | $ | 321,452,729 | ||||||||||||||||||||||
Number of shares used in basic computation | 251,075,859 | 252,811,950 | ||||||||||||||||||||||||
Additional weighted average dilutive common stock equivalents | 1,503,123 | 1,455,901 | ||||||||||||||||||||||||
Diluted weighted average shares outstanding | 252,578,982 | 254,267,851 | ||||||||||||||||||||||||
Net income per share - Diluted | $ | 0.44 | $ | 1.26 | ||||||||||||||||||||||
Shares related to stock plans not included in diluted average common shares outstanding because their effect would be anti-dilutive | 3,054 | 170,386 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||||||
Dividend Yield (1)
|
1.99 | % | 1.99 | % | 2.02 | % | 2.09 | % | |||||||||||||||||||||||||||
Expected volatility (2)
|
24.25 | % | 23.32 | % | 23.84 | % | 26.65 | % | |||||||||||||||||||||||||||
Risk-free interest rate (3)
|
1.55 | % | 2.94 | % | 1.85 | % | 2.78 | % | |||||||||||||||||||||||||||
Expected term of options (years) (4)
|
4.16 | 4.19 | 4.18 | 4.21 | |||||||||||||||||||||||||||||||
Weighted-avg. grant date fair value
|
$4.76 | $4.05 | $4.23 | $4.70 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||
Foreign currency translation adjustments:
|
|||||||||||||||||||||||||||||
Balance at beginning of period | $ | (1,851,574) | $ | (194,395) | $ | (1,674,887) | $ | 645,030 | |||||||||||||||||||||
Other Comprehensive loss before reclassifications
|
(1,623,102) | (1,174,213) | (1,799,789) | (2,013,638) | |||||||||||||||||||||||||
Net current-period change | (1,623,102) | (1,174,213) | (1,799,789) | (2,013,638) | |||||||||||||||||||||||||
Balance at end of period
|
(3,474,676) | (1,368,608) | (3,474,676) | (1,368,608) | |||||||||||||||||||||||||
Unrealized gains (losses) on available-for-sale debt securities: | |||||||||||||||||||||||||||||
Balance at beginning of period
|
2,350,795 | (271,939) | 74,549 | (16,349) | |||||||||||||||||||||||||
Other Comprehensive income (loss) before reclassifications
|
657,128 | (276,010) | 3,106,369 | 33,941 | |||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income
|
(295,752) | (205,433) | (468,747) | (770,974) | |||||||||||||||||||||||||
Net current-period change
|
361,376 | (481,443) | 2,637,622 | (737,033) | |||||||||||||||||||||||||
Balance at end of period
|
2,712,171 | (753,382) | 2,712,171 | (753,382) | |||||||||||||||||||||||||
Unrealized gains on derivatives: | |||||||||||||||||||||||||||||
Balance at beginning of period | — | (12,770) | — | (78,026) | |||||||||||||||||||||||||
Other comprehensive income before reclassifications | — | 114,889 | — | 175,308 | |||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | (102,119) | — | (97,282) | |||||||||||||||||||||||||
Net current-period change | — | 12,770 | — | 78,026 | |||||||||||||||||||||||||
Balance at end of period | — | — | — | — | |||||||||||||||||||||||||
Accumulated other comprehensive loss, end of period
|
$ | (762,505) | $ | (2,121,990) | $ | (762,505) | $ | (2,121,990) |
Details about Accumulated Other Comprehensive Income Components | Amounts Reclassified from Other Comprehensive Income | Affected Line item in the Statement of Consolidated Income | ||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September
June 30,
|
|||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gains on available-for-sale debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Realized gain on sale
of securities |
$ | 374,370 | $ | 260,042 | $ | 593,351 | $ | 975,917 | Other income (loss), net | |||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | (78,618) | (54,609) | (124,604) | (204,943) | Provision for income taxes | |||||||||||||||||||||||||||||||||||||||||||||
$ | 295,752 | $ | 205,433 | $ | 468,747 | $ | 770,974 | Net of tax | ||||||||||||||||||||||||||||||||||||||||||
Unrealized gains on derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||
Realized gain on interest rate swap | $ | — | $ | 129,265 | $ | — | $ | 123,142 | Other income (loss), net | |||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | — | (27,146) | — | (25,860) | Provision for income taxes | |||||||||||||||||||||||||||||||||||||||||||||
$ | — | $ | 102,119 | $ | — | $ | 97,282 | Net of tax | ||||||||||||||||||||||||||||||||||||||||||
Total net reclassifications for the period | $ | 295,752 | $ | 307,552 | $ | 468,747 | $ | 868,256 | Net of tax |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||
Revenue:
|
||||||||||||||||||||||||||||||||
Automotive Products | $ | 464,280,707 | $ | 449,184,447 | $ | 1,376,704,413 | $ | 1,348,395,245 | ||||||||||||||||||||||||
Other | 13,480,710 | 11,068,986 | 38,357,355 | 32,259,733 | ||||||||||||||||||||||||||||
Total | $ | 477,761,417 | $ | 460,253,433 | $ | 1,415,061,768 | $ | 1,380,654,978 | ||||||||||||||||||||||||
Income from operations:
|
||||||||||||||||||||||||||||||||
Automotive Products | $ | 123,342,538 | $ | 124,351,499 | $ | 364,590,462 | $ | 373,071,852 | ||||||||||||||||||||||||
Other | 4,793,142 | 3,076,412 | 13,046,517 | 9,554,396 | ||||||||||||||||||||||||||||
Total | $ | 128,135,680 | $ | 127,427,911 | $ | 377,636,979 | $ | 382,626,248 |
Revenue
|
Three Months Ended September 30, 2019 | Three Months Ended September 30, 2018 | Nine Months Ended September 30, 2019 | Nine Months Ended September 30, 2018 | |||||||||||||||||||
Automotive Products | |||||||||||||||||||||||
U.S.
|
$ | 145,798,028 | $ | 151,229,829 | $ | 431,729,037 | $ | 434,439,455 | |||||||||||||||
Germany | 74,047,596 | 81,621,623 | 225,649,215 | 259,057,369 | |||||||||||||||||||
Japan | 60,641,977 | 55,363,644 | 172,697,963 | 153,843,723 | |||||||||||||||||||
Mexico | 43,884,609 | 28,410,998 | 130,473,702 | 73,868,425 | |||||||||||||||||||
Other | 139,908,497 | 132,558,353 | 416,154,496 | 427,186,273 | |||||||||||||||||||
Total Automotive Products | $ | 464,280,707 | $ | 449,184,447 | $ | 1,376,704,413 | $ | 1,348,395,245 | |||||||||||||||
Other Products (U.S.) | 13,480,710 | 11,068,986 | 38,357,355 | 32,259,733 | |||||||||||||||||||
Total Revenue | $ | 477,761,417 | $ | 460,253,433 | $ | 1,415,061,768 | $ | 1,380,654,978 |
Year ending December 31, | ||||||||
2019 (excluding the nine months ended September 30, 2019) | $ | 361,604 | ||||||
2020 | 575,861 | |||||||
2021 | 143,581 | |||||||
2022 | 57,143 | |||||||
2023 | 11,130 | |||||||
Thereafter | 12,797 | |||||||
Total future minimum lease payments | 1,162,116 | |||||||
Less imputed interest | (20,423) | |||||||
Total | $ | 1,141,693 |
Reported as of September 30, 2019 | ||||||||
Accrued Liabilities | $ | 870,930 | ||||||
Other Non-Current Liabilities | 270,763 | |||||||
Total | $ | 1,141,693 | ||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
North American Interior Mirrors | 2,139 | 2,108 | 1% | 6,571 | 6,636 | (1)% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
North American Exterior Mirrors | 1,412 | 1,103 | 28% | 3,961 | 2,871 | 38% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total North American Mirror Units
|
3,551 | 3,211 | 11% | 10,532 | 9,507 | 11% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
International Interior Mirrors | 5,189 | 5,154 | 1% | 15,785 | 15,801 | —% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
International Exterior Mirrors | 2,101 | 1,864 | 13% | 6,025 | 6,091 | (1)% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total International Mirror Units
|
7,290 | 7,018 | 4% | 21,810 | 21,892 | —% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Interior Mirrors | 7,328 | 7,262 | 1% | 22,356 | 22,437 | —% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Exterior Mirrors | 3,513 | 2,967 | 18% | 9,986 | 8,962 | 11% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Auto-Dimming Mirror Units | 10,841 | 10,229 | 6% | 32,342 | 31,399 | 3% |
September 30, 2019 | December 31, 2018 | ||||||||||
Working Capital
|
$ | 805,191,273 | $ | 681,769,335 | |||||||
Long Term Investments
|
103,025,468 | 137,979,082 | |||||||||
Total
|
$ | 908,216,741 | $ | 819,748,417 |
Issuer Purchase of Equity Securities
|
||||||||||||||||||||||||||
Period
|
Total Number of Shares Purchased |
Weighted
Average Price Paid Per Share
|
Total Number of Shares Purchased As Part of a Publicly Announced Plan or Program | Maximum Number of Shares That May Yet Be Purchased Under the Plan or Program | ||||||||||||||||||||||
January 2019 | 75,001 | 21.42 | 75,001 | 33,766,256 | ||||||||||||||||||||||
February 2019 | 2,499,850 | 20.24 | 2,499,850 | 31,266,406 | ||||||||||||||||||||||
March 2019 | 2,150,087 | 20.49 | 2,150,087 | 29,116,319 | ||||||||||||||||||||||
1st Quarter 2019 Total | 4,724,938 | 20.37 | 4,724,938 | |||||||||||||||||||||||
April 2019 | 240,037 | 23.07 | 240,037 | 28,876,282 | ||||||||||||||||||||||
May 2019 | 1,858,307 | 22.20 | 1,858,307 | 27,017,975 | ||||||||||||||||||||||
June 2019 | 976,365 | 23.64 | 976,365 | 26,041,610 | ||||||||||||||||||||||
2nd Quarter 2019 Total | 3,074,709 | 22.72 | 3,074,709 | |||||||||||||||||||||||
July 2019 | 380,220 | 27.22 | 380,220 | 25,661,390 | ||||||||||||||||||||||
August 2019 | 1,828,442 | 26.69 | 1,828,442 | 23,832,948 | ||||||||||||||||||||||
September 2019 | 1,360,915 | 27.54 | 1,360,915 | 22,472,033 | ||||||||||||||||||||||
3rd Quarter 2019 Total | 3,569,577 | 27.07 | 3,569,577 | |||||||||||||||||||||||
2019 Total | 11,369,224 | 23.11 | 11,369,224 | 22,472,033 |
See Exhibit Index on Page 36
|
GENTEX CORPORATION
|
||||||||||||||
Date:
|
November 1, 2019 |
/s/ Steven R. Downing
|
||||||||||||
Steven R. Downing
|
||||||||||||||
President and Chief Executive Officer
|
||||||||||||||
(Principal Executive Officer) on behalf of Gentex Corporation
|
||||||||||||||
Date:
|
November 1, 2019 |
/s/ Kevin C. Nash
|
||||||||||||
Kevin C. Nash
|
||||||||||||||
Vice President, Finance, Chief Financial Officer and Treasurer
|
||||||||||||||
(Principal Financial Officer and Principal Accounting Officer) on behalf of Gentex Corporation
|
Exhibit No.
|
Description
|
|||||||
10 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32 | ||||||||
101.INS
|
Inline 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
|
Inline XBRL Taxonomy Extension Schema | |||||||
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase | |||||||
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase | |||||||
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase | |||||||
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase |