Gentex Corporation (GNTX) Q2 2012 Earnings Call July 24, 2012 10:30 AM ET Executives Connie Hamblin – VP, IR Steve Dykman – CFO Mark Newton – SVP Analysts David Leiker – Robert W. Baird Ryan Brinkman – JP Morgan Steve Dyer – Craig-Hallum Capital Group John Murphy – Bank of America Rich Kwas – Wells Fargo Jason Rogers – Great Lakes Review Adam Brooks – Sidoti & Company Brett Hoselton – KeyBanc Capital Markets Elaine Kwei – Jefferies Presentation Operator
Previous Statements by GNTX
» Gentex Management Discusses Q1 2012 Results - Earnings Call Transcript
» Gentex Management Discusses Q4 2011 Results - Earnings Call Transcript
» Gentex Management Discusses Q3 2011 Results - Earnings Call Transcript
» Gentex CEO Discusses Q2 2011 Results - Earnings Call Trancript
While we understand that there may be companies that transcribe and redistribute our conference calls notwithstanding this warning, Gentex Corporation provides no authorization to do so and expressly disclaims any responsibility for any unauthorized use of the content.We advise that you should not rely on the content of any unauthorized transcript as Gentex Corporation will not be held liable for the content of any such transcript. Gentex Corporation will hold responsible or liable any party for any damages incurred by Gentex with respect to any such unauthorized use. Your participation implies consent to our taping and to the foregoing terms. Please drop off the line now if you do not agree with these terms. Before we begin I’d like to remind you of our forward-looking statements. Gentex Corporation will make forward-looking statements in this presentation related to its financial results in the second quarter and first six months and beyond that are based on preliminary data and are subject to risk and uncertainties. These forward-looking statements are based on management’s belief, assumptions, current expectation, estimates and projections about the global automotive industry, the economy, the ability to control and leverage fixed manufacturing overhead costs, unit shipment and net sales growth, product mix, the ability to control ER&D and SG&A expenses, gross margins and the company itself. All statements other than statements of historic facts or declarations that are or could be considered to be forward-looking statements and include terms such as anticipate, outlook, expectations, estimates, project, forecast and variations of such words and similar expressions. These statements do not guarantee future performance and involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, expense, likelihood and degree of occurrence and actual results may differ materially from those in these forward-looking statements. The company undertakes no obligation to update, amend, or clarify forward-looking statements, whether as a result of new information, future events or otherwise. We urge you to review the full Safe Harbor statement that is contained within the news release that is posted on our website.
At this time, I will turn the call over to Steve Dykman.Steve Dykman Good morning and welcome to our second quarter 2012 conference call. We are pleased to report another good quarter with a 15% increase in net sales. As we will review below, you’ll note that the company’s operating expenses are more in line with historic growth rates, however our gross profit margin declined in the second quarter and we are working to stabilize the margin going forward. I’ll start with net sales. The company reported recorded net sales in the second quarter of 2012 of $280.3 million, a 15% increase compared with net sales of $243 million in the second quarter of 2011. Record net sales of $571 million for the first six months of 2012, a 16% increase compared to with net sales of $493.9 million in the first six months of 2011. We reported operating income in the second quarter of $57.5 million, an 8% increase compared with operating income of $53.2 million in the second quarter of 2011. Operating income of $123 million for the first six months of 2012, a 9% increase compared with net sales of $113.3 million in the first six months of 2011. We reported second quarter 2012 net income of $40.8 million, a 6% increase compared with net income of $38.5 million in the second quarter of 2011. Net income of $87.1 million for the first six months of 2012 an 8% increase compared with net income of $80.8 million in the first six months of 2011. We also reported second quarter 2012 earnings per diluted share of $0.28 compared with $0.27 per share in the second quarter of 2011. Earnings per diluted share of $0.60 for the first six months of 2012 compared with earnings per diluted share of $0.56 for the first six months of 2011. Next we’ll look at automotive net sales and auto-dimming mirror unit shipments. For the second quarter ended June 30, 2012 the total auto-dimming mirror units increased by 19% in the second quarter of 2012 compared with the second quarter last year. Read the rest of this transcript for free on seekingalpha.com