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 |
(State or other jurisdiction of incorporation or organization) |
(IRS Employer Identification No.) |
Title of Each Class |
Trading Symbol(s) |
Name of Exchange on which registered | ||
t |
Large accelerated filer | ☐ | Accelerated Filer | ☐ | |||
☑ | Smaller Reporting Company | |||||
Emerging Growth Company |
Class |
Outstanding at May 10 , 2021 | |
Common stock, $.10 par value |
||
Class B stock, $.10 par value |
Item 1. |
Financial Statements |
March 31, 2021 (Unaudited) |
September 30, 2020 |
|||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Marketable securities at fair value (cost of $ |
||||||||
Accounts receivable, less allowance for doubtful accounts of $ |
||||||||
Costs and estimated earnings in excess of billings |
||||||||
Inventories, net |
||||||||
Prepaid expenses |
||||||||
Total current assets |
||||||||
Property and equipment, net |
||||||||
Other long-term assets |
||||||||
Total Assets |
$ | $ | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | $ | ||||||
Customer deposits |
||||||||
Accrued expenses |
||||||||
Current operating lease liabilities |
||||||||
Total current liabilities |
||||||||
Deferred and other income taxes |
||||||||
Non-current operating lease liabilities |
||||||||
Total liabilities |
||||||||
Commitments and contingencies |
||||||||
Shareholders’ equity: |
||||||||
Preferred stock, par value $ per share; |
||||||||
Common stock, par value $ per share; |
||||||||
Class B Stock, par value $ per share; |
||||||||
Capital in excess of par value |
||||||||
Retained earnings |
||||||||
Total shareholders’ equity |
||||||||
Total Liabilities and Shareholders’ Equity |
$ | $ | ||||||
For the Quarters Ended March 31, |
For the Six Months Ended March 31, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Net revenue |
$ | $ | $ | $ | ||||||||||||
Cost of goods sold |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
||||||||||||||||
Operating expenses: |
| |||||||||||||||
Product engineering and development |
||||||||||||||||
Selling, general and administrative |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating income (loss) |
||||||||||||||||
Other income (expense), net: |
| |||||||||||||||
Interest and dividend income, net of fees |
||||||||||||||||
Net realized and unrealized gains (losses) on marketable securities, net |
( |
) | ( |
) | ||||||||||||
Other |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
( |
) | ( |
) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income (loss) before income tax expense (benefit) |
( |
) | ||||||||||||||
Income tax expense (benefit) |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) |
$ | $ | ( |
) | $ | $ | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic Income (Loss) per Common Share |
$ | $ | ( |
) | $ | $ | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted Income (Loss) per Common Share |
$ | $ | ( |
) | $ | $ | ||||||||||
|
|
|
|
|
|
|
|
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 |
$ | $ | $ | $ | $ | |||||||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
December 31, 2020 |
$ | $ | $ | $ | $ | |||||||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
Stock options exercised |
— | — | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
March 31, 2021 |
$ | $ | $ | $ | $ | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
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 |
$ | $ | $ | $ | $ | |||||||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
Stock-based compensation |
— | — | — | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
December 31, 2019 |
$ | $ | $ | $ | $ | |||||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
Stock-based compensation |
— | — | — | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
March 31, 2020 |
$ | $ | $ | $ | $ | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
2020 |
|||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | $ | ||||||
Adjustments to reconcile net income to cash provided by operating activities: |
||||||||
Purchase of marketable securities |
( |
) | ( |
) | ||||
Proceeds from sale and maturity of marketable securities |
||||||||
Change in value of marketable securities |
( |
) | ||||||
Deferred and other income taxes |
( |
) | ||||||
Depreciation and amortization |
||||||||
Provision for doubtful accounts |
||||||||
Stock-based compensation |
— | |||||||
Changes in assets and liabilities: |
||||||||
Accounts receivable |
( |
) | ( |
) | ||||
Costs and estimated earnings in excess of billings |
||||||||
Inventories (excluding the effect of the Blaw-Knox acquisition) |
( |
) | ( |
) | ||||
Prepaid expenses |
( |
) | ( |
) | ||||
Accounts payable |
||||||||
Customer deposits |
||||||||
Accrued expenses |
||||||||
|
|
|
|
|||||
Total adjustments |
||||||||
|
|
|
|
|||||
Cash flows provided by operating activities |
||||||||
|
|
|
|
|||||
Cash flows from investing activities: |
||||||||
Acquisition of Blaw- Knox assets |
( |
) | — | |||||
Capital expenditures |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Cash flows used in investing activities |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Cash flows from financing activities: |
||||||||
Proceeds from stock option exercises |
— | |||||||
|
|
|
|
|||||
Cash flows provided by financing activities |
— | |||||||
|
|
|
|
|||||
Net increase (decrease) in cash and cash equivalents |
( |
) | ||||||
Cash and cash equivalents at: |
||||||||
Beginning of year |
||||||||
|
|
|
|
|||||
End of year |
$ | $ | ||||||
|
|
|
|
|||||
Non-cash investing and financing activities: |
||||||||
Operating lease right-of-use |
$ | $ | — | |||||
Operating lease liabilities |
$ | $ | — |
Fair Value Measurements |
||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
Equities |
$ | $ | — | $ | — | $ | ||||||||||
Mutual Funds |
— | — | ||||||||||||||
Exchange-Traded Funds |
— | — | ||||||||||||||
Corporate Bonds |
— | — | ||||||||||||||
Government Securities |
— | — | ||||||||||||||
Cash and Money Funds |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | $ | $ | — | $ | |||||||||||
|
|
|
|
|
|
|
|
Fair Value Measurements |
||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
Equities |
$ | $ | — | $ | — | $ | ||||||||||
Mutual Funds |
— | — | ||||||||||||||
Exchange-Traded Funds |
— | — | ||||||||||||||
Corporate Bonds |
— | — | ||||||||||||||
Government Securities |
— | — | ||||||||||||||
Cash and Money Funds |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | $ | $ | — | $ | |||||||||||
|
|
|
|
|
|
|
|
March 31, 2021 |
September 30, 2020 |
|||||||
Raw materials |
$ | $ | ||||||
Work in process |
|
|||||||
Finished goods |
||||||||
Used equipment |
||||||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
March 31, 2021 |
September 30, 2020 |
|||||||
Costs incurred on uncompleted contracts |
$ | $ | ||||||
Estimated earnings |
|
|
||||||
|
|
|
|
|||||
Billings to date |
||||||||
|
|
|
|
|||||
Costs and estimated earnings in excess of billings |
$ | $ | ||||||
|
|
|
|
Quarter Ended March 31, |
Six Months Ended March 31, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Net Income (Loss) |
$ | ( |
) | $ | $ | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Common Shares: |
||||||||||||||||
Weighted average common shares outstanding |
||||||||||||||||
Effect of dilutive stock options |
— | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted shares outstanding |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic: |
||||||||||||||||
Net income (loss) per share |
$ | $ | ( |
) | $ | $ | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted: |
||||||||||||||||
Net income (loss) per share |
$ | $ | ( |
) | $ | $ | ||||||||||
|
|
|
|
|
|
|
|
Quarter Ended March 31, |
Six Months Ended March 31, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Equipment sales recognized over time |
$ | $ | $ | $ | ||||||||||||
Equipment sales recognized at a point in time |
||||||||||||||||
Parts and component sales |
||||||||||||||||
Freight revenue |
||||||||||||||||
Other |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net revenue |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
March 31, 2021 |
September 30, 2020 |
|||||||
Operating lease ROU asset included in other long-term assets |
$ | $ | ||||||
Current operating lease liability |
||||||||
Non-current operating lease liability |
||||||||
Weighted average remaining lease term (in years) |
||||||||
Weighted average discount rate used in calculating ROU asset |
% | % |
Fiscal Year |
Annual Lease Payments |
|||
2021 (remaining 6 months) |
$ | |||
2022 |
||||
2023 |
||||
|
|
|||
Total |
||||
Less interest |
( |
) | ||
|
|
|||
Present value of lease liabilities |
$ | |||
|
|
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 |
Item 6. |
Exhibits |
Exhibit 31.1 | Certification of Chief Executive Officer Pursuant to Rule 13a – 14(a) of the Securities Exchange Act of 1934, as amended | |
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 Chief Executive Officer and Chief Financial Officer Pursuant to 18 U. S. C. Section 1350 | |
Exhibit 101.1 | Interactive Data File | |
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 | |
101.SCH | XBRL Schema Document | |
101.CAL | XBRL Calculation Linkbase Document | |
101.DEF | XBRL Definition Linkbase Document | |
101.LAB | XBRL Label Linkbase Document | |
101.PRE | XBRL Presentation Linkbase Document | |
104 | The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, formatted in Inline XBRL (included in Exhibit 101) |
GENCOR INDUSTRIES, INC. |
/s/ John E. Elliott |
John E. Elliott |
Chief Executive Officer |
May 14, 2021 |
/s/ Eric E. Mellen |
Eric E. Mellen |
Chief Financial Officer |
(Principal Financial and Accounting Officer) |
May 14, 2021 |