0000355811false00003558112024-10-252024-10-25

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549


FORM 8-K


CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934


Date of Report: October 25, 2024


GENTEX CORPORATION
(Exact name of registrant as specified in its charter)
Michigan
0-1023538-2030505
(State or other jurisdiction
of incorporation)		(Commission
File Number)		(IRS Employer
Identification No.)
600 North Centennial Street
Zeeland
Michigan49464
(Address of principal executive offices)(Zip Code)

Registrant's telephone number, including area code: (616) 772-1800
_____________________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.06 per shareGNTXNASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company    ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐    


Section 2.     Financial Information

Item 2.02    Results of Operations and Financial Condition.

(a)On October 25, 2024 Gentex Corporation issued a news release announcing financial results for the third quarter ended September 30, 2024. A copy of the news release is attached as Exhibit 99.1 to the Form 8-K.

The information in this Form 8-K and the attached Exhibit shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

Section 9.    Financial Statements and Exhibits

Item 9.01    Financial Statements and Exhibits.

(d)    Exhibit
    
    99.1 – News Release Dated October 25, 2024.


SIGNATURE


    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: October 25, 2024
            
GENTEX CORPORATION
(Registrant)                


By    /s/ Kevin C. Nash

Kevin C. Nash
Its Vice President - Finance and Chief Financial Officer    
    



EXHIBIT INDEX


    99.1    News Release Dated October 25, 2024


Exhibit 99.1
gentex-blacka.jpg

GENTEX REPORTS THIRD QUARTER 2024 FINANCIAL RESULTS

    ZEELAND, MI -- (GLOBE NEWSWIRE - October 25, 2024) - Gentex Corporation (NASDAQ: GNTX), a leading supplier of digital vision, connected car, dimmable glass and fire protection technologies, today reported financial results for the three and nine months ended September 30, 2024.
3rd Quarter 2024 Summary
•Net sales of $608.5 million, a new quarterly sales record, and a 6% increase compared to the third quarter of 2023, versus light vehicle production that was down 6% quarter over quarter in the Company's primary markets
•Gross profit margin of 33.5%, an increase of 60 basis points from the second quarter of 2024
•Income from operations of $125.7 million
•Net income of $122.5 million, an increase of 17% from the third quarter of 2023
•Earnings per diluted share of $0.53, an increase of 18% from the third quarter of 2023
•3.2 million shares repurchased during the quarter

    For the third quarter of 2024, the Company reported net sales of $608.5 million, compared to net sales of $575.8 million in the third quarter of 2023. For the third quarter of 2024, global light vehicle production declined by 5%, compared to the third quarter of 2023. "During the third quarter of 2024, light vehicle production weakened across all major regions, but especially in our primary markets. When compared to the third quarter of 2023, light vehicle production declined by 6% this quarter in North America, Europe and Japan/Korea, which was significantly worse than the 3% quarter over quarter decline forecasted at the beginning of the quarter,” said Gentex President and CEO, Steve Downing. “The production declines resulted in a sales shortfall of approximately $25 - $30 million for the quarter, but despite that weakness in our end markets, we were able to outperform our primary markets by 12%,” commented Downing.
For the third quarter of 2024, the gross margin was 33.5%, compared to a gross margin of 33.2% for the third quarter of 2023. Compared to the third quarter of 2023, the gross margin improved as a result of the higher revenue levels and purchasing cost reductions, which were partially offset by unfavorable product mix. Sequentially, the gross margin improved by 60 basis points, as a result of the higher sales levels versus the second quarter of 2024 and lower pricing reserves in the third quarter, versus the first

Exhibit 99.1
half of 2024. "Overall, we are pleased with the sequential improvement in gross margin, but the third quarter was still behind our margin forecast due to lower than expected sales driven by light vehicle production shortfalls, product mix issues and overhead inefficiencies. We remain committed to our gross margin recovery plan that we laid out over the last 18 months, but given the shifts in the market and light vehicle production mix, we expect that the Company’s margin recovery target won’t be fully achieved until 2025,” said Downing.
Operating expenses during the third quarter of 2024 increased by 13% to $78.3 million, compared to operating expenses of $69.0 million in the third quarter of 2023. Operating expenses increased quarter over quarter primarily due to staffing and engineering related professional fees. “Our operating expenses remain in line with our expectations for the full year, with increases primarily focused on R&D and launches of new programs and products. Operating expenses, especially R&D expenses, are expected to continue at the current pace for the rest of this year, despite the lower than forecasted light vehicle production and sales levels we have experienced over the last two quarters. Our R&D spend is being driven by several new launches that are currently in development and expected to launch in the next two years, as well as research projects in support of new technologies that we have showcased at CES the last few years,” said Downing.
    Income from operations for the third quarter of 2024 was $125.7 million, compared to income from operations of $122.4 million for the third quarter of 2023.
Other income was $19.7 million during the third quarter of 2024, compared to other income of $2.1 million in the third quarter of 2023. The change was primarily driven by non-cash gains of $14.5 million resulting from mark-to-market adjustments and other market adjustments of certain holdings within the Company's tech investment portfolio, as well as interest income from the Company's investment portfolio.
During the third quarter of 2024, the Company had an effective tax rate of 15.7%, which was primarily driven by the benefit of the foreign derived intangible income deduction.
Net income for the third quarter of 2024 was $122.5 million, a 17% increase compared to net income of $104.7 million for the third quarter of 2023. The increase in net income for the third quarter was

Exhibit 99.1
driven by the increased net sales, income from operations, and other income, compared to the third quarter of 2023.
Earnings per diluted share for the third quarter of 2024 were $0.53, an 18% increase compared to earnings per diluted share of $0.45 for the third quarter of 2023. Earnings per diluted share for the third quarter of 2024 were positively impacted by the increased net sales and operating income as well as the increases in other income for the quarter.
    Automotive net sales in the third quarter of 2024 were $596.5 million compared to $564.5 million in the third quarter of 2023. Auto-dimming mirror unit shipments decreased by 3% during the third quarter of 2024, compared to the third quarter of 2023.
    Other net sales in the third quarter of 2024, which includes dimmable aircraft windows and fire protection products, were $12.0 million, compared to other net sales of $11.3 million in the third quarter of 2023. Fire protection sales increased by $1.8 million for the third quarter of 2024, compared to the third quarter of 2023. Dimmable aircraft window sales decreased by $1.9 million for the third quarter of 2024, compared to the third quarter of 2023. Additionally, in the third quarter of 2024, the Company recorded its first official sales of medical devices of $0.8 million from shipments of the previously acquired eSight Go product line and business.
Share Repurchases
During the third quarter of 2024, the Company repurchased 3.2 million shares of its common stock at an average price of $30.16 per share. As of September 30, 2024, the Company has approximately 10.1 million shares remaining available for repurchase pursuant to its previously announced share repurchase plan. The Company intends to continue to repurchase additional shares of its common stock in the future in support of the previously disclosed capital allocation strategy, but share repurchases will vary from time to time and will take into account macroeconomic issues, market trends, and other factors that the Company deems appropriate.
Future Estimates
The Company’s current forecasts for light vehicle production for the fourth quarter of 2024 and full years 2024 and 2025, are based on the mid-October 2024 S&P Global Mobility forecast for light vehicle production in North America, Europe, Japan/Korea, and China. Light vehicle production in these markets

Exhibit 99.1
is expected to decrease by approximately 4% for the fourth quarter of 2024, versus the same quarter in 2023, while light vehicle production in our primary markets of North America, Europe and Japan/Korea is expected to be down 6% in the fourth quarter of 2024, compared to the fourth quarter of 2023. For calendar year 2024, light vehicle production in North America, Europe, Japan/Korea and China is now forecasted to decline approximately 2%, compared to light vehicle production in calendar year 2023. Light vehicle production for calendar year 2025 is forecasted to increase by 1%, compared to the calendar year 2024 forecast in these markets. Fourth quarter 2024 and calendar years 2024 and 2025 forecasted vehicle production volumes from S&P Global Mobility are shown below:
Light Vehicle Production (per S&P Global Mobility mid-October light vehicle production forecast)
(in Millions)
RegionQ4 2024Q4 2023% ChangeCalendar Year 2025Calendar Year 2024Calendar Year 20232025 vs 2024
% Change		2024 vs 2023
% Change
North America3.64 3.76 (3)%15.29 15.47 15.68 (1)%(1)%
Europe4.24 4.66 (9)%17.00 17.07 17.97 — %(5)%
Japan and Korea3.20 3.38 (5)%12.02 12.00 12.80 — %(6)%
China8.69 8.81 (1)%30.02 29.34 29.04 2 %1 %
Total Light Vehicle Production19.77 20.61 (4)%74.33 73.88 75.49 1 %(2)%

Based on this light vehicle production forecast and actual results for the first nine months of 2024, the Company is making certain changes to its previously provided guidance for calendar year 2024 as shown in the table below.
2024 Annual Guidance
Guidance as of July 26, 2024As of October 25, 2024
Revenue$2.40 - $2.50 billion$2.35 - $2.40 billion
Gross Margin34% - 34.5%33.5% - 34.0%
Operating Expenses$295 -$305 million
$295 -$305 million
Tax Rate15% - 16%15% - 15.5%
Capital Expenditures$175 - $200 million$150 - $175 million
Depreciation & Amortization$95 - $100 million
$90 - $95 million

Additionally, based on the Company’s updated forecast for light vehicle production for calendar year 2025 as well as year to date actual results for the first nine months of 2024, the Company is updating calendar year 2025 revenue estimates to approximately $2.45 - $2.55 billion.

Exhibit 99.1
"The Company continues to be on pace for record revenue in 2024 and 2025, despite significant changes in the light vehicle production environment, vehicle mix and regional mix that have impacted the production landscape. Obviously, the actual and forecasted light vehicle production deterioration has impacted our total revenue estimates for 2024 and 2025, but our 12% outperformance versus the underlying vehicle production numbers in our primary markets during the third quarter gives us renewed confidence in our ability to continue to outperform the market. While the teams have done a phenomenal job creating and executing our margin recovery plan, industry conditions have created a slower growth environment that we intend to address with increased cost focus, expense control and lower capital expenditures that more closely align with our updated revenue expectations. As we have indicated, the timeline to achieve our targeted gross margin of 35 - 36% will likely push into the 2025 calendar year, but we remain confident in our ability to accomplish our stated goal despite the industry headwinds,” concluded Downing.
Safe Harbor for Forward-Looking Statements
    This news release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements contained in this communication that are not purely historical are forward-looking statements. Forward-looking statements give the Company’s current expectations or forecasts of future events. These forward-looking statements generally can be identified by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “future,” “goal,” “guidance,” “hope,” “intend,” "likely", “may,” “opinion,” “optimistic,” “plan,” “poised,” “predict,” “project,” “should,” “strategy,” “target,” “will,” "work to," and variations of such words and similar expressions. Such statements are subject to risks and uncertainties that are often difficult to predict and beyond the Company’s control, and could cause the Company’s results to differ materially from those described. These risks and uncertainties include, without limitation: changes in general industry or regional market conditions, including the impact of inflation; changes in consumer and customer preferences for our products (such as cameras replacing mirrors and/or autonomous driving); our ability to be awarded new business; continued uncertainty in pricing negotiations with customers and suppliers; loss of business from increased competition; changes in strategic relationships; customer bankruptcies or divestiture of customer brands; fluctuation in vehicle production schedules (including the

Exhibit 99.1
impact of customer employee strikes); changes in product mix; raw material and other supply shortages; labor shortages, supply chain constraints and disruptions; our dependence on information systems; higher raw material, fuel, energy and other costs; unfavorable fluctuations in currencies or interest rates in the regions in which we operate; costs or difficulties related to the integration and/or ability to maximize the value of any new or acquired technologies and businesses; changes in regulatory conditions; warranty and recall claims and other litigation and customer reactions thereto; possible adverse results of pending or future litigation or infringement claims; changes in tax laws; import and export duty and tariff rates in or with the countries with which we conduct business; negative impact of any governmental investigations and associated litigation, including securities litigation relating to the conduct of our business; and force majeure events. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made.
The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law or the rules of the NASDAQ Global Select Market. Accordingly, any forward-looking statement should be read in conjunction with the additional information about risks and uncertainties identified under the heading “Risk Factors” in the Company’s latest Form 10-K and Form 10-Q filed with the SEC, which risks and uncertainties include supply chain constraints that have affected, are affecting, and will continue to affect, general economic and industry conditions, customers, suppliers, and the regulatory environment in which the Company operates. Includes content supplied by S&P Global Mobility Light Vehicle Production Forecast of October 15, 2024 (http://www.gentex.com/forecast-disclaimer).
Third Quarter Conference Call
    A conference call related to this news release will be simulcast live on the Internet beginning at 9:30 a.m. ET today, October 25, 2024. Participants who wish to ask questions may register for the call at https://register.vevent.com/register/BI5c6e81632d434791b1b558bea845af36. It is recommended that participants join 10 minutes prior to the event start, although they may register ahead of the call and dial in at any time during the call. Participants may listen to the call via audio streaming https://edge.media-server.com/mmc/p/bpf4ihh4/. A webcast replay will be available approximately 24 hours after the conclusion of the call at http://ir.gentex.com/events-and-presentations/upcoming-past-events.

Exhibit 99.1
About the Company
    Founded in 1974, Gentex Corporation (The NASDAQ Global Select Market: GNTX) is a leading supplier of digital vision, connected car, dimmable glass and fire protection technologies. Visit the Company’s web site at www.gentex.com.

Contact Information:
Gentex Investor & Media Contact
Josh O'Berski
616.931.3505

Exhibit 99.1

GENTEX CORPORATION
AUTO-DIMMING MIRROR SHIPMENTS
(Thousands)
Three Months Ended September 30,Nine Months Ended September 30,
20242023% Change20242023% Change
North American Interior Mirrors2,291 2,366 (3)%6,899 7,192 (4)%
North American Exterior Mirrors1,532 1,614 (5)%4,858 5,033 (3)%
Total North American Mirror Units3,823 3,980 (4)%11,757 12,224 (4)%
International Interior Mirrors5,569 5,708 (2)%16,313 17,099 (5)%
International Exterior Mirrors2,830 2,915 (3)%8,808 8,918 (1)%
Total International Mirror Units8,399 8,623 (3)%25,120 26,017 (3)%
Total Interior Mirrors7,860 8,075 (3)%23,211 24,291 (4)%
Total Exterior Mirrors4,362 4,529 (4)%13,665 13,950 (2)%
Total Auto-Dimming Mirror Units12,221 12,604 (3)%36,877 38,242 (4)%
Note: Percent change and amounts may not total due to rounding.


Exhibit 99.1
GENTEX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)(Unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Net Sales$608,525,777 $575,848,490 $1,771,676,766 $1,710,082,647 
Cost of Goods Sold404,462,142 384,407,857 1,176,812,215 1,150,821,744 
Gross Profit204,063,635 191,440,633 594,864,551 559,260,903 
Engineering, Research & Development48,225,968 40,197,517 134,411,948 112,825,054 
Selling, General & Administrative30,109,515 28,826,587 90,494,117 83,479,285 
Operating Expenses78,335,483 69,024,104 224,906,065 196,304,339 
Income from Operations125,728,152 122,416,529 369,958,486 362,956,564 
Other Income/(Loss)19,727,198 2,063,632 4,475,771 6,122,483 
Income before Income Taxes145,455,350 124,480,161 374,434,257 369,079,047 
Provision for Income Taxes22,906,309 19,754,749 57,614,063 57,619,971 
Net Income$122,549,041 $104,725,412 $316,820,194 $311,459,076 
Earnings Per Share(1)
Basic$0.54 $0.45 $1.38 $1.33 
Diluted$0.53 $0.45 $1.38 $1.33 
Cash Dividends Declared per Share$0.120 $0.120 $0.360 $0.360 
(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.


Exhibit 99.1
GENTEX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

September 30, 2024December 31, 2023
(Unaudited)(Note)
ASSETS
Cash and Cash Equivalents$179,639,743 $226,435,019 
Short-Term Investments20,462,581 14,356,476 
Accounts Receivable, net356,338,008 321,809,868 
Inventories449,311,020 402,473,028 
Other Current Assets39,932,866 32,663,762 
Total Current Assets1,045,684,218 997,738,153 
Plant and Equipment - Net703,583,489 652,877,672 
Goodwill340,105,631 340,105,631 
Long-Term Investments325,561,578 299,080,876 
Intangible Assets, net201,604,035 214,005,910 
Patents and Other Assets, net118,757,892 107,629,310 
Total Other Assets986,029,136 960,821,727 
Total Assets$2,735,296,843 $2,611,437,552 
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities$283,164,653 $271,608,976 
Other Non-current Liabilities34,504,848 27,311,507 
Shareholders' Investment2,417,627,342 2,312,517,069 
Total Liabilities & Shareholders' Investment$2,735,296,843 $2,611,437,552 

Note: The condensed consolidated balance sheet at December 31, 2023 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.

v3.24.3
Document and Entity Information
Oct. 25, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 25, 2024
Entity Registrant Name GENTEX CORPORATION
Entity Central Index Key 0000355811
Amendment Flag false
Entity Incorporation, State or Country Code MI
Entity File Number 0-10235
Entity Tax Identification Number 38-2030505
Entity Address, Address Line One 600 North Centennial Street
Entity Address, City or Town Zeeland
Entity Address, State or Province MI
Entity Address, Postal Zip Code 49464
City Area Code 616
Local Phone Number 772-1800
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Title of 12(b) Security Common Stock, par value $0.06 per share
Trading Symbol GNTX
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Entity Emerging Growth Company false
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