FOR IMMEDIATE RELEASE:
February 7, 2014 (PRIME NEWSWIRE) – Gencor Industries, Inc. (Nasdaq: GENC) announced today net revenues for the quarter ended December 31, 2013 of $10.0 million, a 102.5% increase over the $4.9 million in net revenues for the quarter ended December 31, 2012. Gross margin increased to 15.3% for the quarter ended December 31, 2013 from 8.4% for the quarter ended December 31, 2012. Selling, general and administrative expenses decreased $225,000 to $1,734,000 for the quarter ended December 31, 2013. Operating loss for the quarter ended December 31, 2013 was $(0.6) million, compared to an operating loss of $(2.0) million for the quarter ended December 31, 2012.
The Company’s first quarter is usually the lowest in revenues and income recognition due to the cyclicality of our industry whereby during this quarter contractors tend to place orders for equipment for Spring delivery. Thus, our Engineering and Manufacturing operations, and cash outflow, are at peak, while revenue recognition tends to be deferred.
For the quarter ended December 31, 2013, the Company had a non-operating income of $1.5 million compared to $0.2 million for the quarter ended December 31, 2012, the result of improved performance of our investments. Net income for the quarter ended December 31, 2013 was $0.5 million, or $0.05 per basic and diluted share, compared to a net loss of $(1.0) million, or $(0.10) per basic and diluted share for the quarter ended December 31, 2012.
At December 31, 2013, the Company had $89.6 million of cash and marketable securities compared to $92.7 million at September 30, 2013. The decrease is due to the timing of expenses incurred and progress payments received on large projects. Net working capital was $103.6 million at December 31, 2013. The Company had no debt outstanding at December 31, 2013.
E.J. Elliott, Gencor’s Chairman, stated, “We are encouraged by our increased sales in the first quarter in spite of the weakness in the domestic highway construction industry. Our improvements in productivity and purchasing and cost containment initiatives have resulted in higher gross and operating margins. We look forward to growth from operations and we continue to evaluate opportunities to expand our existing business and increase shareholder value.”
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, 2013; (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