February 2, 2018 (PRIME NEWSWIRE) - Gencor Industries, Inc. (Nasdaq: GENC) announced today net revenues increased 46% to $23.1 million for the quarter ended December 31, 2017 compared to $15.8 million for the quarter ended December 31, 2016.  Gross margins were 22.0% for the quarter ended December 31, 2017 compared to 26.3% for the quarter ended December 31, 2016 as the Company increased its manufacturing overhead to support the significantly higher production, as annual revenues have doubled over the past two years. Product engineering and development expenses increased $284,000 to $700,000 for the quarter ended December 31, 2017 due to increased staffing to meet the higher demands for our engineered products. Selling, general and administrative (“SG&A”) expenses increased $502,000 to $2,692,000 for the quarter ended December 31, 2017. Headcount additions, higher sales commissions and increased advertising and trade show expenses to capitalize on the renewed optimism within the highway construction industry contributed to most of the increase in SG&A expenses. Operating income for the quarter ended December 31, 2017 was $1.7 million compared to $1.5 million for the quarter ended December 31, 2016.

For the quarter ended December 31, 2017, the Company had non-operating income of $0.5 million compared to non-operating income of $0.4 million for the quarter ended December 31, 2016.  The 2017 tax benefit resulted from the adjustment to the net deferred tax liability and applying the lower corporate tax rates to comply with the recently enacted U.S. tax law, Tax Cuts and Jobs Act (“TCJA”). Net income for the quarter ended December 31, 2017 was $2.3 million, or $0.16 per basic and diluted share, compared to net income of $1.4 million, or $0.10 per basic and diluted share for the quarter ended December 31, 2016.

At December 31, 2017, the Company had $113.2 million of cash and marketable securities, an increase of $2.4 million over the September 30, 2017 balance of $110.8 million. Net working capital was $125.0 million at December 31, 2017.  The Company had no short-term or long-term debt outstanding at December 31, 2017.

The Company’s backlog was $50.2 million at December 31, 2017 compared to $40.8 million at December 31, 2016.

John Elliott, Gencor’s CEO, commented, “First quarter revenues of $23.1 million represent the best start to our fiscal year in over twenty years. We have a positive outlook which is supported by favorable market conditions and the recently enacted U.S. tax law legislation: Tax Cuts and Jobs Act.  The Fixing America’s Surface Transportation Act (FAST Act) and plans to increase domestic infrastructure spending at the Federal level have resulted in an increase in asphalt plant orders and quoting activity. We also anticipate being a beneficiary of lower corporate tax rates and the accelerated tax deduction on capital purchases as a domestic manufacturer and purchaser of capital equipment.

We are pleased with our 46% sales increase in the first quarter, which is traditionally our lowest revenue quarter. Our customers continue to place large orders as domestic highway construction spending remains strong. Net income in the quarter was enhanced by the changes to U.S. tax legislation, specifically a reduction in corporate tax rates on deferred tax liabilities and acceleration of tax depreciation on capital expenditures.

In the first quarter gross margins declined as the company increased its manufacturing overhead to support the significantly higher production, as revenues have doubled over the past two years.  The company also accelerated its capital purchases in the first quarter to maximize the tax benefit due to anticipated lower future tax rates. Gencor will continue to invest in its operations to improve efficiencies and meet the strong demand for its products.

Backlog of $50.2 million is 23% higher than the prior year and represents continued optimism from highway contractors that the Federal government and many states are once again focused on investing in America’s infrastructure. We look forward to growth and continue to evaluate opportunities to expand our existing businesses.

In March we will be exhibiting at the 2018 World of Asphalt show where we anticipate significant interest in our products.”

Gencor Industries is a diversified heavy machinery manufacturer for the production of highway construction materials, synthetic fuels and environmental control machinery and equipment used in a variety of applications.

Caution Concerning Forward Looking Statements - This press release and our other communications and statements may contain “forward-looking statements,” including statements about our beliefs, plans, objectives, goals, expectations, estimates, projections and intentions.  These statements are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond our control.  The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “goal,” and similar expressions are intended to identify forward-looking statements.  All forward-looking statements, by their nature, are subject to risks and uncertainties.  Our actual future results may differ materially from those set forth in our forward-looking statements.  For information concerning these factors and related matters, see our Annual Report on Form 10-K for the year ended September 30, 2017; (a) “Risk Factors” in Part I, Item 1A and (b)  “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7.  However, other factors besides those referenced could adversely affect our results, and you should not consider any such list of factors to be a complete set of all potential risks or uncertainties.  Any forward-looking statements made by us herein speak as of the date of this press release.  We do not undertake to update any forward-looking statement, except as required by law.

Contact:               Eric Mellen, Chief Financial Officer

                                407-290-6000

December 6, 2017 (PRIME NEWSWIRE) - Gencor Industries, Inc., (NASDAQ: GENC) announced today net revenue for the quarter ended September 30, 2017 increased 25.4% to $18.6 million compared to $14.8 million for the quarter ended September 30, 2016.  Gross profit as a percentage of net revenue decreased to 19.7% for the quarter ended September 30, 2017 from 24.7% for the quarter ended September 30, 2016 due to competitive pricing on two plants. 

Income from operations for the quarter ended September 30, 2017 was $0.8 million compared to $1.0 million for the quarter ended September 30, 2016. The Company had non-operating income of $0.7 million for the quarter ended September 30, 2017 compared to $0.3 million for the quarter ended September 30, 2016. The Company had tax expense of $0.6 million for the quarter ended September 30, 2017 compared to a tax benefit of $(0.4) million for the quarter ended September 30, 2016.  Net income for the quarter ended September 30, 2017 was $1.0 million ($0.07 per basic and diluted share) compared to $1.7 million ($0.12 per basic and diluted share) for the quarter ended September 30, 2016. 

Net revenue for the year ended September 30, 2017 increased 15.2% to $80.6 million compared to $70.0 million for the year ended September 30, 2016. Gross profit as a percentage of net revenue increased to 26.2% for the year ended September 30, 2017 from 25.0% for the year ended September 30, 2016. The Company had operating income for the year ended September 30, 2017 of $10.2 million compared to $7.8 million for the year ended September 30, 2016.

The Company had non-operating income of $1.9 million for the year ended September 30, 2017 compared to $1.6 million for the year ended September 30, 2016. The effective income tax rate for fiscal 2017 was 30.9% versus 25.1% in fiscal 2016. The Company’s net income was $8.4 million ($0.58 per basic share and $0.57 per diluted share) for the year ended September 30, 2017, compared to $7.0 million ($0.49 per basic share and $0.48 per diluted share) for the year ended September 30, 2016.

At September 30, 2017, the Company had $110.8 million in cash and marketable securities, an increase of $6.7 million over the September 30, 2016 balance of $104.2 million. Net working capital was $124.7 million at September 30, 2017.  The Company has no short- or long-term debt.

John E. Elliott, Gencor’s CEO, stated, “I am pleased with our fiscal 2017 performance.  Our solid financial results continued throughout 2017 with year-over-year revenue growth, gross margin improvement, increased profitability and strong cash generation.        

Our fourth quarter 2017 revenues exceeded $18 million, up significantly from prior years’ fourth quarters.  Revenue growth was attributable to greater demand for our asphalt plants.  Gross margins were lower in the fourth quarter due to pricing on a few strategic projects.  For the year, gross margins increased to 26.2%. Gencor managed 15% growth in fiscal 2017 revenues with solid execution, resulting in an increase in both gross margins and operating margins for the fiscal year.

Underlying demand for our products continues to be strong, positioning us for continued profitable growth as we begin fiscal 2018.  Orders for new asphalt plants were placed throughout the summer and early fall months. Current backlog of $46 million represents a 44% increase from a year ago and a 127% increase from two years ago. Order inquiry for our equipment continues to be strong.

State and local programs that fund infrastructure, including gas tax increases and other ballot initiatives passed over the previous few years are an important part of current public sector highway construction.  These programs, coupled with the FAST Act approved at the federal level, have been the key drivers in Gencor’s improved performance over the past two years.”

Gencor Industries is a diversified heavy machinery manufacturer for the production of highway construction materials, synthetic fuels and environmental control machinery and equipment used in a variety of applications.

Caution Concerning Forward Looking Statements - This press release and our other communications and statements may contain “forward-looking statement,” including statement about our beliefs, plans, objectives, goals, expectations, estimates, projections and intentions.  These statements are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond our control.  The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “goal,” and similar expressions are intended to identify forward-looking statements.  All forward-looking statements, by their nature, are subject to risks and uncertainties.  Our actual future results may differ materially from those set forth in our forward looking statements.  For information concerning these factors and related matters, see our Annual Report on Form 10-K for the year ended September 30, 2017: (a) “Risk Factors” in Part I, Item 1A and (b) “Management’s Discussion and Analysis of Financial Position and Results of Operations” in Part II, Item 7.  However, other factors besides those referenced could adversely affect our results, and you should not consider any such list of factors to be a complete set of all potential risks or uncertainties.  Any forward-looking statements made by us herein speak as of the date of the press release.  We do not undertake to update any forward-looking statement, except as required by law.

Contact: Eric Mellen, Chief Financial Officer

407-290-6000

FOR IMMEDIATE RELEASE:

August 3, 2017 (PRIME NEWSWIRE) - Gencor Industries, Inc. (Nasdaq: GENC) announced today net revenue for the quarter ended June 30, 2017 increased 19.5% to $23.7 million from $19.9 million for the quarter ended June 30, 2016. Gross margin was 28.2% for the quarter ended June 30, 2017 compared with 25.9% for the quarter ended June 30, 2016. Selling, general and administrative expenses increased $280,000 to $2,259,000 for the quarter ended June 30, 2017, from $1,979,000 for the quarter ended June 30, 2016. Operating income for the quarter ended June 30, 2017 was $3.8 million compared to $2.8 million for the quarter ended June 30, 2016.

The Company had net non-operating expense of $72,000 for the quarter ended June 30, 2017 compared to net non-operating income of $563,000 for the quarter ended June 30, 2016. Net income was $2.6 million, or $0.18 per basic share and diluted share, for the quarter ended June 30, 2017, compared to $2.1 million, or $0.15 per basic and diluted share, for the quarter ended June 30, 2016.

For the nine months ended June 30, 2017 the Company had net revenue of $62.1 million and net income of $7.4 million ($0.51 per basic share and $0.50 per diluted share) versus net revenue of $55.2 million and net income of $5.3 million ($0.37 per basic and diluted share) for the nine months ended June 30, 2016.

At June 30, 2017, the Company had $112.4 million of cash and cash equivalents and marketable securities compared to $104.2 million at September 30, 2016. Net working capital was $122.8 million at June 30, 2017. The Company has no short or long term debt. The Company’s backlog was $37.9 million at June 30, 2017, compared to $21.4 million at June 30, 2016.

John E. Elliott, Gencor’s CEO, stated, “Gencor had another solid quarter with revenues up 20%, gross margins of 28%, net margins of 11% and a significant increase in our backlog.

Backlog of $37.9 million entering the fourth quarter increased 77% year to year as we closed a number of opportunities after the ConExpo show. Deliveries of equipment are scheduled for the fall and early winter months. This is atypical, as customers historically require delivery of equipment between late winter and spring.

Current quoting activity for fiscal 2018 is encouraging as it is higher than this time last year. We see solid opportunities across all regions of the US and improving activity in Canada.

Steel prices remained stable in the third quarter and we have not seen signs of higher prices in the fourth quarter. We have increased headcount, focusing on expanding our product offerings, improving our cycle times and addressing increased market demand. We will be making additional investments in technology to expand and improve our production capabilities.”

Gencor Industries is a diversified heavy machinery manufacturer of equipment used in the production of highway construction materials, synthetic fuels, and environmental control machinery and equipment used in a variety of industrial applications.

Caution Concerning Forward Looking Statements - This press release and our other communications and statements may contain “forward-looking statements,” including statements about our beliefs, plans, objectives, goals, expectations, estimates, projections and intentions. These statements are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond our control. The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “goal,” and similar expressions are intended to identify forward-looking statements. All forward-looking statements, by their nature, are subject to risks and uncertainties. Our actual future results may differ materially from those set forth in our forward-looking statements. For information concerning these factors and related matters, see our Annual Report on Form 10-K for the year ended September 30, 2016; (a) “Risk Factors” in Part I, Item 1A and (b) “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7. However, other factors besides those referenced could adversely affect our results, and you should not consider any such list of factors to be a complete set of all potential risks or uncertainties. Any forward-looking statements made by us herein speak as of the date of this press release. We do not undertake to update any forward-looking statement, except as required by law.

Contact: Eric Mellen, Chief Financial Officer

407-290-6000

FOR IMMEDIATE RELEASE:

GENCOR RELEASES SECOND QUARTER FISCAL 2017 RESULTS

May 5, 2017 (PRIME NEWSWIRE) - Gencor Industries, Inc. (Nasdaq: GENC) announced today net revenue for the quarter ended March 31, 2017 increased $448,000 to $22.5 million from $22.1 million for the quarter ended March 31, 2016.  Gross margin was 29.6% for the quarter ended March 31, 2017 compared with 24.6% for the quarter ended March 31, 2016.  Selling, general and administrative expenses decreased $63,000 to $2,127,000 for the quarter ended March 31, 2017, from $2,190,000 for the quarter ended March 31, 2016. Operating income for the quarter ended March 31, 2017 was $4.1 million compared to $2.9 million for the quarter ended March 31, 2016.

The Company had non-operating income of $0.8 million for the quarter ended March 31, 2017 compared to non-operating expense of $(0.3) million for the quarter ended March 31, 2016.  Net income was $3.4 million, or $0.24 per basic share and $0.23 per diluted share, for the quarter ended March 31, 2017, compared to $1.6 million, or $0.11 per basic and diluted share, for the quarter ended March 31, 2016.

For the six months ended March 31, 2017 the Company had net revenue of $38.3 million and net income of $4.8 million ($0.33 per basic share and diluted share) versus net revenue of $35.3 million and net income of $3.2 million ($0.22 per basic and diluted share) for the six months ended March 31, 2016.

At March 31, 2016, the Company had $114.2 million of cash and marketable securities compared to $104.2 million at September 30, 2016.  Net working capital was $120.5 million at March 31, 2017.  The Company has no short or long term debt.

John E. Elliott, Gencor’s CEO, commented, “We are pleased with the company’s continued strong performance.  We have been expanding our manufacturing production to meet the increasing demand for our equipment, without sacrificing operating income.

Second quarter net revenues of $22.5 million do not include $4.1 million of revenues that will be recognized in the third quarter.  These revenues include product that was finished but not shipped until April and contracts that did not reach the required percentage of completion level to be recognized in the quarter.

Despite higher steel prices, gross margins significantly improved to 29.6% from 24.6%.  The 500 basis point increase is attributable to a more efficient operation and full absorption of overhead.  Operating margins of 18.0% are the highest quarterly margins in the Company’s history.  Gencor is benefiting from a dedicated and well-trained workforce, producing equipment that has a reputation for superior quality.

The March ConExpo-Con/Agg show was a tremendous success, generating strong leads some of which have closed and others we expect to close.  Backlog of $42.9 million increased 35% year to year and is at the same level we otherwise started the fiscal year.  Historically, backlog declines in our second and third quarters as orders are usually filled and new orders are not received until the fall and early winter months.

The Company will continue to increase production and efficiency at both of its facilities and augment its workforce over the next few quarters by investing in technology which will enhance production in a number of areas.”

Gencor Industries is a diversified heavy machinery manufacturer of equipment used in the production of highway construction materials, synthetic fuels, and environmental control machinery and equipment used in a variety of industrial applications.

* Prior year adjusted for three-for-two stock split

Caution Concerning Forward Looking Statements - This press release and our other communications and statements may contain “forward-looking statements,” including statements about our beliefs, plans, objectives, goals, expectations, estimates, projections and intentions.  These statements are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond our control.  The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “goal,” and similar expressions are intended to identify forward-looking statements.  All forward-looking statements, by their nature, are subject to risks and uncertainties.  Our actual future results may differ materially from those set forth in our forward-looking statements.  For information concerning these factors and related matters, see our Annual Report on Form 10-K for the year ended September 30, 2016; (a) “Risk Factors” in Part I, Item 1A and (b)  “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7.  However, other factors besides those referenced could adversely affect our results, and you should not consider any such list of factors to be a complete set of all potential risks or uncertainties.  Any forward-looking statements made by us herein speak as of the date of this press release.  We do not undertake to update any forward-looking statement, except as required by law.

Contact:                Eric Mellen, Chief Financial Officer

407-290-6000

FOR IMMEDIATE RELEASE:

GENCOR RELEASES FIRST QUARTER FISCAL 2017 RESULTS

February 3, 2017 (PRIME NEWSWIRE) - Gencor Industries, Inc. (Nasdaq: GENC) announced today net revenues increased 19% to $15.8 million for the quarter ended December 31, 2016 compared to $13.3 million for the quarter ended December 31, 2015.  Gross margins increased to 26.3% for the quarter ended December 31, 2016 from 24.8% for the quarter ended December 31, 2015, due to increased revenues and cost absorption. Product engineering and development expenses increased $34,000 to $416,000 for the quarter ended December 31, 2016 due to increased staffing. Selling, general and administrative (“SG&A”) expenses increased $405,000 to $2,190,000 for the quarter ended December 31, 2016. Headcount additions and higher sales commissions contributed to most of the increase in SG&A expenses. Operating income for the quarter ended December 31, 2016 was $1.5 million or 9.8% of net revenues compared to operating income of $1.1 million or 8.4% of net revenues for the quarter ended December 31, 2015.

For the quarter ended December 31, 2016, the Company had non-operating income of $0.4 million compared to non-operating income of $1.0 million for the quarter ended December 31, 2015.  Net income for the quarter ended December 31, 2016 was $1.4 million, or $0.10 per basic and diluted share, compared to net income of $1.6 million, or $0.11 per basic and diluted share for the quarter ended December 31, 2015.

At December 31, 2016, the Company had $107.0 million of cash and marketable securities, an increase of $2.8 million over the September 30, 2016 balance of $104.2 million. Net working capital was $116.8 million at December 31, 2016.  The Company had no short-term or long-term debt outstanding at December 31, 2016.

The Company’s backlog was $40.8 million at December 31, 2016 compared to $31.2 million at December 31, 2015.

John Elliott, Gencor’s CEO, commented, “Gencor began fiscal 2017 with the largest backlog of asphalt plants and components in the company’s history.  Many of our clients placed orders earlier in anticipation of 2017 construction work and beyond which has resulted in an increase in demand for our products.  Federal funds from the FAST ACT are being dispersed to state departments of transportation and should result in an increase in bidding activity for our domestic customers.

First quarter revenues represent solid growth from the previous year and a 151% increase from two years ago.  Revenues in our first quarter are often significantly lower than our second and third quarters as customers typically do not take delivery of equipment until late winter and spring.

In the first quarter Gencor delivered improved gross margins of 26.3% and managed operational expenses, which resulted in a 140 basis point increase in operating margins to 9.8%.

In January we implemented second shifts at both of our manufacturing facilities and are exploring avenues to significantly expand our production capabilities to meet the anticipated future demand for our products.  Potentially favorable new legislation could have a positive impact on Gencor’s performance in the future.  These include a proposed $1 trillion investment in domestic infrastructure, an immediate 100% tax deduction on all capital equipment purchases, and a proposed reduction in the corporate tax rate.

In March we will be exhibiting at the 2017 Conexpo-Con/Agg construction equipment show in Las Vegas where we anticipate significant interest in our products.”

Gencor Industries is a diversified heavy machinery manufacturer for the production of highway construction materials, synthetic fuels and environmental control machinery and equipment used in a variety of applications.

Caution Concerning Forward Looking Statements - This press release and our other communications and statements may contain “forward-looking statements,” including statements about our beliefs, plans, objectives, goals, expectations, estimates, projections and intentions.  These statements are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond our control.  The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “goal,” and similar expressions are intended to identify forward-looking statements.  All forward-looking statements, by their nature, are subject to risks and uncertainties.  Our actual future results may differ materially from those set forth in our forward-looking statements.  For information concerning these factors and related matters, see our Annual Report on Form 10-K for the year ended September 30, 2016; (a) “Risk Factors” in Part I, Item 1A and (b)  “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7.  However, other factors besides those referenced could adversely affect our results, and you should not consider any such list of factors to be a complete set of all potential risks or uncertainties.  Any forward-looking statements made by us herein speak as of the date of this press release.  We do not undertake to update any forward-looking statement, except as required by law.

Contact:                Eric Mellen, Chief Financial Officer

407-290-6000