Annual Statements Open main menu

GENCOR INDUSTRIES INC - Quarter Report: 2019 December (Form 10-Q)

Form 10-Q
Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 10-Q

 

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2019

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD: From                      to                     

Commission File Number:  001-11703

 

 

GENCOR INDUSTRIES, INC.

 

 

 

Delaware    59-0933147

(State or other jurisdiction

of incorporated or organization)

  

(IRS Employer

Identification No.)

5201 North Orange Blossom Trail, Orlando, Florida 32810

(Address of principal executive offices) (Zip Code)

(407) 290-6000

(Registrant’s telephone number, including area code)

Securities registered or to be registered pursuant to Section 12(b) of the Act

 

Title of Each Class

  

Trading Symbol(s)

  

Name of Exchange

on which registered

Common Stock ($.10 Par Value)    GENC    NASDAQ Global Market

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☑    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☑    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large Accelerated Filer       Accelerated Filer   
Non-Accelerated Filer       Smaller Reporting Company   
      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.    ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☑

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.    Yes  ☑    No  ☐

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

Class

   Outstanding at January 30, 2020  

Common stock, $.10 par value

     12,277,337 shares  

Class B stock, $.10 par value

     2,308,857 shares  

 

 

 

 


Table of Contents

GENCOR INDUSTRIES, INC.

 

Index

   Page  

Part I.

   Financial Information   
   Item 1.   

FinancialStatements

  
      Condensed Consolidated Balance Sheets – December 31, 2019 (Unaudited) and September 30, 2019      3  
      Condensed Consolidated Statements of Income – Quarters ended December 31, 2019 and 2018 (Unaudited)      4  
      Condensed Consolidated Statements of Shareholders’ Equity – Quarters ended December 31, 2019 and 2018 (Unaudited)      5  
      Condensed Consolidated Statements of Cash Flows – Quarters ended December 31, 2019 and 2018 (Unaudited)      6  
      Notes to Condensed Consolidated Financial Statements (Unaudited)      7  
   Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations      13  
   Item 3.    Quantitative and Qualitative Disclosures about Market Risk      18  
   Item 4.    Controls and Procedures      18  

Part II.

   Other Information   
   Item 6.    Exhibits      19

Signatures

     20  

Introductory Note: Caution Concerning Forward-Looking Statements

This Quarterly Report on Form 10-Q (this “Quarterly Report”) and the Company’s other communications and statements may contain “forward-looking statements,” including statements about the Company’s 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 the Company’s 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. The Company’s actual future results may differ materially from those set forth in its forward-looking statements. For information concerning these factors and related matters, see Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in this Quarterly Report, and the following sections of the Company’s Annual Report on Form 10-K for the year ended September 30, 2019: (a) “Risk Factors” in Part I, and (b) “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II. However, other factors besides those referenced could adversely affect the Company’s 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 the Company herein speak as of the date of this Quarterly Report. The Company does not undertake to update any forward-looking statement, except as required by law.

Unless the context otherwise indicates, all references in this Quarterly Report to the “Company,” “Gencor,” “we,” “us,” or “our,” or similar words are to Gencor Industries, Inc. and its subsidiaries.

 

2


Table of Contents

Part I. Financial Information

GENCOR INDUSTRIES, INC.

Condensed Consolidated Balance Sheets

 

    

December 31,

2019

    

September 30,

2019

 
     (Unaudited)     

 

 

ASSETS

     

Current assets:

     

Cash and cash equivalents

   $ 14,343,000      $ 10,302,000  

Marketable securities at fair value (cost $104,896,000 at December 31, 2019 and $104,176,000 at September 30, 2019)

     107,232,000        105,322,000  

Accounts receivable, less allowance for doubtful accounts of $476,000 at December 31, 2019 and $459,000 at September 30, 2019

     1,662,000        1,603,000  

Costs and estimated earnings in excess of billings

     13,383,000        13,838,000  

Inventories, net

     25,691,000        25,366,000  

Prepaid expenses & other current assets

     1,454,000        499,000  
  

 

 

    

 

 

 

Total Current Assets

     163,765,000        156,930,000  
  

 

 

    

 

 

 

Property and equipment, net

     7,977,000        8,389,000  

Other assets

     53,000        53,000  
  

 

 

    

 

 

 

Total Assets

   $ 171,795,000      $ 165,372,000  
  

 

 

    

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

     

Current Liabilities:

     

Accounts payable

   $ 2,714,000      $ 1,907,000  

Customer deposits

     4,921,000        1,918,000  

Accrued expenses

     4,423,000        2,660,000  
  

 

 

    

 

 

 

Total Current Liabilities

     12,058,000        6,485,000  
  

 

 

    

 

 

 

Deferred and other income taxes

     1,715,000        3,372,000  
  

 

 

    

 

 

 

Total Liabilities

     13,773,000        9,857,000  
  

 

 

    

 

 

 

Commitments and contingencies

     

Shareholders’ equity:

     

Preferred stock, par value $.10 per share; authorized 300,000 shares; none issued

     —          —    

Common stock, par value $.10 per share; 15,000,000 shares authorized; 12,277,337 shares issued and outstanding at December 31, 2019 and September 30, 2019, respectively

     1,228,000        1,228,000  

Class B Stock, par value $.10 per share; 6,000,000 shares authorized; 2,308,857 shares issued and outstanding at December 31, 2019 and September 30, 2019, respectively

     231,000        231,000  

Capital in excess of par value

     12,177,000        12,159,000  

Retained earnings

     144,386,000        141,897,000  
  

 

 

    

 

 

 

Total Shareholders’ Equity

     158,022,000        155,515,000  
  

 

 

    

 

 

 

Total Liabilities and Shareholders’ Equity

   $ 171,795,000      $ 165,372,000  
  

 

 

    

 

 

 

See accompanying Notes to Condensed Consolidated Financial Statements

 

3


Table of Contents

GENCOR INDUSTRIES, INC.

Condensed Consolidated Statements of Income

(Unaudited)

 

     For the Quarters Ended
December 31,
 
     2019     2018  

Net revenue

   $ 18,030,000     $ 21,327,000  

Costs and expenses:

    

Production costs

     13,710,000       16,410,000  

Product engineering and development

     766,000       723,000  

Selling, general and administrative

     2,382,000       2,190,000  
  

 

 

   

 

 

 
     16,858,000       19,323,000  
  

 

 

   

 

 

 

Operating income

     1,172,000       2,004,000  

Other income (expense), net:

    

Interest and dividend income, net of fees

     632,000       534,000  

Realized and unrealized gains (losses) on marketable securities, net

     1,317,000       (2,147,000

Other

     (10,000     —    
  

 

 

   

 

 

 
     1,939,000       (1,613,000
  

 

 

   

 

 

 

Income before income tax expense

     3,111,000       391,000  

Income tax expense

     622,000       78,000  
  

 

 

   

 

 

 

Net income

   $ 2,489,000     $ 313,000  
  

 

 

   

 

 

 

Basic Income per Common Share:

    

Net income per share

   $ 0.17     $ 0.02  
  

 

 

   

 

 

 

Diluted Income per Common Share:

    

Net income per share

   $ 0.17     $ 0.02  
  

 

 

   

 

 

 

See accompanying Notes to Condensed Consolidated Financial Statements

 

4


Table of Contents

GENCOR INDUSTRIES, INC.

Condensed Consolidated Statements of Shareholders’ Equity

(Unaudited)

For the Quarter Ended December 31, 2019

 

     Common Stock      Class B Stock      Capital in
Excess of
Par Value
     Retained
Earnings
     Total
Shareholders’
Equity
 
     Shares      Amount      Shares      Amount  

September 30, 2019

     12,277,337      $ 1,228,000        2,308,857      $ 231,000      $ 12,159,000      $ 141,897,000      $ 155,515,000  

Net income

     —          —          —          —          —          2,489,000        2,489,000  

Stock-based compensation

     —          —          —          —          18,000        —          18,000  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

December 31, 2019

     12,277,337      $ 1,228,000        2,308,857      $ 231,000      $ 12,177,000      $ 144,386,000      $ 158,022,000  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

For the Quarter Ended December 31, 2018

 

     Common Stock      Class B Stock      Capital in
Excess of
Par Value
     Retained
Earnings*
     Total
Shareholders’
Equity*
 
     Shares      Amount      Shares      Amount  

September 30, 2018

     12,252,337      $ 1,225,000        2,288,857      $ 229,000      $ 11,862,000      $ 131,701,000      $ 145,017,000  

Net income

     —          —          —          —          —          313,000        313,000  

Stock-based compensation

     —          —          —          —          17,000        —          17,000  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

December 31, 2018

     12,252,337      $ 1,225,000        2,288,857      $ 229,000      $ 11,879,000      $ 132,014,000      $ 145,347,000  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   

See accompanying Notes to Condensed Consolidated Financial Statements

 

*

The balances as of September 30, 2018 and December 31, 2018, and the amounts for the quarter ended December 31, 2018, have been adjusted to reflect the change in inventory accounting method, as described in Note 3 to the Condensed Consolidated Financial Statements.

 

5


Table of Contents

GENCOR INDUSTRIES, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

     For the Quarters Ended
December 31,
 
     2019     2018  

Cash flows from operating activities:

    

Net income

   $ 2,489,000     $ 313,000  

Adjustments to reconcile net income to cash provided by (used in) operating activities:

    

Purchases of marketable securities

     (35,313,000     (68,444,000

Proceeds from sale and maturity of marketable securities

     34,659,000       65,998,000  

Change in fair value of marketable securities

     (1,256,000     2,059,000  

Deferred income taxes

     (1,657,000     (485,000

Depreciation and amortization

     418,000       386,000  

Provision for doubtful accounts

     —         25,000  

Stock-based compensation

     18,000       17,000  

Changes in assets and liabilities:

    

Accounts receivable

     (59,000     (532,000

Costs and estimated earnings in excess of billings

     455,000       (1,419,000

Inventories

     (325,000     (2,015,000

Prepaid expenses & other current assets

     (955,000     322,000  

Accounts payable

     807,000       1,755,000  

Customer deposits

     3,003,000       (1,166,000

Accrued expenses

     1,763,000       104,000  
  

 

 

   

 

 

 

Total adjustments

     1,558,000       (3,395,000
  

 

 

   

 

 

 

Cash flows provided by (used in) operating activities

     4,047,000       (3,082,000
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Capital expenditures

     (6,000     (661,000
  

 

 

   

 

 

 

Cash flows used in investing activities

     (6,000     (661,000
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     4,041,000       (3,743,000

Cash and cash equivalents at:

    

Beginning of period

     10,302,000       8,012,000  
  

 

 

   

 

 

 

End of period

   $ 14,343,000     $ 4,269,000  
  

 

 

   

 

 

 
   

See accompanying Notes to Condensed Consolidated Financial Statements

 

6


Table of Contents

GENCOR INDUSTRIES, INC.

Notes to Condensed Consolidated Financial Statements

For the Quarter Ended December 31, 2019

(Unaudited)

Note 1 – Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all material adjustments (consisting of normal, recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the quarter ended December 31, 2019 are not necessarily indicative of the results that may be expected for the year ending September 30, 2020.

The accompanying Condensed Consolidated Balance Sheet at September 30, 2019 has been derived from the audited financial statements at that date but does not include all of the information and notes required by generally accepted accounting principles for complete financial statements.

For further information, refer to the consolidated financial statements and notes thereto included in the Gencor Industries, Inc. Annual Report on Form 10-K for the year ended September 30, 2019.

Accounting Pronouncements and Policies

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), amending its accounting guidance related to revenue recognition. Under this ASU and subsequently issued amendments, revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additional disclosures are required to provide the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The standard is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company adopted ASU 2014-09 in the first quarter of fiscal 2019. The Company elected to adopt the standard using the modified retrospective method. The adoption of ASU 2014-09 did not have a significant impact on its consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). With adoption of this standard, lessees will have to recognize most leases as a right-of-use asset and a lease liability on their balance sheet. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are similar to those applied in current lease accounting. ASU 2016-02 must be applied on a modified retrospective basis and is effective for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. The Company adopted ASU 2016-02 in the first quarter of fiscal 2020. The adoption of ASU 2016-02 did not have a significant impact on its consolidated financial statements.

In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”). The new guidance clarifies when a change to the terms or conditions of a share based payment award must be accounted for as a modification. ASU 2017-09 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The Company adopted ASU 2017-09 in the first quarter of fiscal 2019. The adoption of ASU 2017-09 did not have a significant impact on consolidated financial statements.

No other accounting pronouncements recently issued or newly effective have had, or are expected to have, a material impact on the Company’s consolidated financial statements.

 

7


Table of Contents

Note 2 – Marketable Securities

Marketable debt and equity securities are categorized as trading securities and are thus marked to market and stated at fair value. Fair value is determined using the quoted closing or latest bid prices for Level 1 investments and market standard valuation methodologies for Level 2 investments. Realized gains and losses on investment transactions are determined by specific identification and are recognized as incurred in the condensed consolidated statements of income. Net unrealized gains and losses are reported in the condensed consolidated statements of income in the current period and represent the change in the fair value of investment holdings during the period.

Fair Value Measurements

The fair value of financial instruments is presented based upon a hierarchy of levels that prioritizes the inputs of valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The fair value of marketable equity securities, mutual funds, exchange-traded funds, corporate bonds, government securities, and cash and money funds are substantially based on quoted market prices (Level 1). Corporate bonds are valued using market standard valuation methodologies, including: discounted cash flow methodologies, and matrix pricing or other similar techniques. The inputs to these market standard valuation methodologies include, but are not limited to: interest rates, credit standing of the issuer or counterparty, industry sector of the issuer, coupon rate, call provisions, maturity, estimated duration and assumptions regarding liquidity and estimated future cash flows. In addition to bond characteristics, the valuation methodologies incorporate market data, such as actual trades completed, bids and actual dealer quotes, where such information is available. Accordingly, the estimated fair values are based on available market information and judgments about financial instruments (Level 2). Fair values of the Level 2 investments are provided by the Company’s professional investment management firm.

The following table sets forth, by level, within the fair value hierarchy, the Company’s assets measured at fair value as of December 31, 2019:

 

                                                                                   
     Fair Value Measurements  
     Level 1      Level 2      Level 3      Total  

Equities

   $ 14,070,000      $ —        $ —        $ 14,070,000  

Mutual Funds

     4,052,000        —          —          4,052,000  

Exchange-Traded Funds

     5,298,000        —          —          5,298,000  

Corporate Bonds

     —          42,474,000        —          42,474,000  

Government Securities

     40,005,000        —          —          40,005,000  

Cash and Money Funds

     1,333,000        —          —          1,333,000  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 64,758,000      $ 42,474,000      $ —        $ 107,232,000  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net unrealized gains recognized during the quarter ended December 31, 2019 on trading securities still held as of December 31, 2019 were $1,190,000. There were no transfers of investments between Level 1 and Level 2 during the quarter ended December 31, 2019.

 

8


Table of Contents

The following table sets forth by level, within the fair value hierarchy, the Company’s assets measured at fair value as of September 30, 2019:

 

                                                                                   
     Fair Value Measurements  
     Level 1      Level 2      Level 3      Total  

Equities

   $ 10,412,000      $ —        $ —        $ 10,412,000  

Mutual Funds

     3,987,000        —          —          3,987,000  

Exchange-Traded Funds

     5,163,000        —          —          5,163,000  

Corporate Bonds

     —          38,690,000        —          38,690,000  

Government Securities

     45,171,000        —          —          45,171,000  

Cash and Money Funds

     1,899,000        —          —          1,899,000  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 66,632,000      $ 38,690,000      $ —        $ 105,322,000  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net unrealized losses recognized during the quarter ended December 31, 2018 on trading securities still held as of December 31, 2018 were $(2,425,000). There were no transfers of investments between Level 1 and Level 2 during the quarter ended December 31, 2018. In the quarter ended December 31, 2018, the Company invested an additional $2.0 million of its operating cash in marketable securities.

The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the short-term nature of these items.

Note 3 – Inventories

Inventories are valued at the lower of cost or net realizable value. Net realizable value is defined as the estimated selling price of goods less reasonable costs of completion and delivery. During the fourth quarter of fiscal 2019, the Company changed its method for accounting for cost of inventories from the last-in, first-out (“LIFO”) method to the first-in, first-out (“FIFO”) method. As required by accounting principles generally accepted in the United States of America (“GAAP”), the Company reflected this change in accounting principle on a retrospective basis, resulting in changes to the historical periods presented. The Company believes the FIFO method improves financial reporting by better reflecting the current value of inventory on the consolidated balance sheets, by more closely aligning the flow of physical inventory with the accounting for the inventory, and by providing better matching of revenues and expenses.

The fiscal 2018 consolidated financial statements have been retrospectively adjusted to apply the new method of FIFO cost accounting for inventories. The cumulative effect of this change on periods prior to those presented herein resulted in an increase in retained earnings of $2,708,000. There was no material impact to the previously reported unaudited interim fiscal 2018 quarterly condensed consolidated results of operations or statements of income as a result of the retrospective application of the change in inventory accounting principle.

Appropriate consideration is given to obsolescence, excessive levels, deterioration, possible alternative uses and other factors in determining net realizable value. The cost of work in process and finished goods includes materials, direct labor, variable costs and overhead. The Company evaluates the need to record inventory adjustments on all inventories, including raw material, work in process, finished goods, spare parts and used equipment. Used equipment acquired by the Company on trade-in from customers is carried at estimated net realizable value. Unless specific circumstances warrant different treatment regarding inventory obsolescence, the cost basis of inventories three to four years old are reduced by 50%, while the cost basis of inventories four to five years old are reduced by 75%, and the cost basis of inventories greater than five years old are reduced to zero. Inventory is typically reviewed for obsolescence on an annual basis computed as of September 30, the Company’s fiscal year end. If significant known changes in trends, technology or other specific circumstances that warrant consideration occur during the year, then the impact on obsolescence is considered at that time.

 

9


Table of Contents

Net inventories at December 31, 2019 and September 30, 2019 consist of the following:

 

     December 31, 2019      September 30, 2019  

Raw materials

   $ 14,389,000      $ 14,158,000  

Work in process

     1,877,000        1,397,000  

Finished goods

     9,425,000        9,811,000  
  

 

 

    

 

 

 
   $ 25,691,000      $ 25,366,000  
  

 

 

    

 

 

 

Slow-moving and obsolete inventory reserves were $4,467,000 and $4,700,000 at December 30, 2019 and September 30, 2019, respectively.

Note 4 – Costs and Estimated Earnings in Excess of Billings

Costs and estimated earnings in excess of billings on uncompleted contracts as of December 31, 2019 and September 30, 2019 consist of the following:

 

     December 31, 2019      September 30, 2019  

Costs incurred on uncompleted contracts

   $ 22,503,000      $ 18,707,000  

Estimated earnings

     9,776,000        9,063,000  
  

 

 

    

 

 

 
     32,279,000        27,770,000  

Billings to date

     18,896,000        13,932,000  
  

 

 

    

 

 

 

Costs and estimated earnings in excess of billings

   $ 13,383,000      $ 13,838,000  
  

 

 

    

 

 

 

Note 5 – Earnings per Share Data

The following table sets forth the computation of basic and diluted earnings per share for the quarters ended December 31, 2019 and 2018:

 

     December 31, 2019      December 31, 2018  

Net income

   $ 2,489,000      $ 313,000  
  

 

 

    

 

 

 

Common Shares:

     

Weighted-average common shares outstanding

     14,586,000        14,541,000  

Effect of dilutive stock options

     134,000        158,000  
  

 

 

    

 

 

 

Weighted-average diluted shares outstanding

     14,720,000        14,699,000  
  

 

 

    

 

 

 

Basic:

     

Net income per share

   $ 0.17      $ 0.02  
  

 

 

    

 

 

 

Diluted:

     

Net income per share

   $ 0.17      $ 0.02  
  

 

 

    

 

 

 

Basic earnings per share is based on the weighted-average number of shares outstanding. Diluted earnings per share is based on the sum of the weighted-average number of shares outstanding plus common stock equivalents.

Weighted-average shares issuable upon the exercise of stock options included in the diluted earnings per share calculation for the quarter ended December 31, 2019 were 272,000, which equates to 134,000 dilutive common stock equivalents. Weighted-average shares issuable upon the exercise of stock options included in the diluted earnings per share calculation for the quarter ended December 31, 2018 were 317,000, which equated to 158,000 dilutive common stock equivalents. Weighted-average shares issuable upon the exercise of stock options, which were not included in the diluted earnings per share calculations because they were anti-dilutive, were zero for the quarters ended December 31, 2019 and 2018.

 

10


Table of Contents

Note 6 – Customers with 10% (or greater) of Net Revenues

Two customers accounted for 13.4% and 13.2% of net revenues, respectively, for the quarter ended December 31, 2019. Net revenues for each of these two customers were less than 1% during the prior year comparative periods.

Four other customers accounted for 24.7%, 22.9%, 14.8% and 13.7% of net revenues, respectively, for the quarter ended December 31, 2018.

Note 7 – Income Taxes

On December 22, 2017, the U.S. Tax Cuts and Jobs Act (the “Tax Reform Act”) was signed into law by President Donald Trump. The Tax Reform Act significantly lowered the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018, while also repealing the deduction for domestic production activities for tax years beginning after December 31, 2017, implementing a territorial tax system and imposing repatriation tax on deemed repatriated earnings of foreign subsidiaries. U.S. GAAP requires that the impact of tax legislation be recognized in the period in which the law was enacted.

On the condensed consolidated balance sheet as of December 31, 2019, deferred income taxes decreased $1.7 million and accrued expenses increased $1.8 million as compared to September 30, 2019. This change reflects the reclassification of taxes payable from a long-term liability to a current liability on the filing of the Company’s Form 3115 with the Internal Revenue Service to reflect the revenue recognition method change to the percentage of completion method for tax purposes pursuant to Internal Revenue Code Sections 460 and 451(b).

The Company’s income tax provision is based on management’s estimate of the effective tax rate for the full year. The tax provision in any period will be affected by, among other things, permanent, as well as temporary differences in the deductibility of certain items, in addition to changes in tax legislation. As a result, the Company may experience significant fluctuations in the effective book tax rate (that is, its tax expense divided by pre-tax book income) from period to period. The Company’s effective tax rates for the first quarters of fiscal 2020 and 2019 reflect the impact of the reduced rates under the Tax Reform Act.

Note 8 – Revenue Recognition and Related Costs

As discussed in Note 1, the Company adopted the provisions of ASU No. 2014-09 and related amendments effective for the quarter ended December 31, 2018 using the modified retrospective method. The adoption of this standard did not have a material impact on the timing or amounts of revenues recognized by the Company, and, as such, no cumulative effect adjustment was recorded with the adoption of the standard.

The following table disaggregates the Company’s net revenue by major source for the quarters ended December 31, 2019 and 2018:

 

     December 31, 2019     December 31, 2018  

Equipment sales recognized over time

   $ 12,090,000     $ 16,353,000  

Equipment sales recognized at a point in time

     1,907,000       1,514,000  

Parts and component sales

     3,146,000       3,051,000  

Freight revenue

     903,000       402,000  

Other

     (16,000     7,000  
  

 

 

   

 

 

 

Net revenue

   $ 18,030,000     $ 21,327,000  
  

 

 

   

 

 

 

Revenues from contracts with customers for the design, manufacture and sale of custom equipment are recognized over time when the performance obligation is satisfied by transferring control of the equipment. Control of the equipment transfers over time as the equipment is unique to the specific contract and thus does not create an asset with an alternative use to the Company. Revenues and costs are recognized in proportion to actual labor costs incurred, as compared with total estimated labor costs expected to be incurred, during the entire contract. All incremental costs related to obtaining a contract are expensed as incurred as the amortization period is less than one year. Changes to total estimated contract costs or losses, if any, are recognized in the period in which they are determined.

 

11


Table of Contents

Contract assets (excluding accounts receivable) under contracts with customers represent revenue recognized in excess of amounts billed on equipment sales recognized over time. These contract assets were $13,383,000 at December 31, 2019 and $13,838,000 at September 30, 2019 and are included in current assets as costs and estimated earnings in excess of billings on the Company’s condensed consolidated balance sheets at December 31, 2019 and September 30, 2019, respectively. The Company anticipates that all these contract assets at December 31, 2019, will be billed and collected within one year.

Revenues from all other contracts for the design and manufacture of equipment, for service and for parts sales, net of any discounts and return allowances, are recorded at a point in time when control of the goods or services has been transferred. Control of the goods or service typically transfers at time of shipment or upon completion of the service.

Payment for equipment under contract with customers is typically due prior to shipment. Payment for services under contract with customers is due as certain milestones are completed. Accounts receivable related to contracts with customers for equipment sales were $325,000 at December 31, 2019 and $301,000 at September 30, 2019.

Product warranty costs are estimated using historical experience and known issues and are charged to production costs as revenue is recognized. Provisions for estimated returns and allowances and other adjustments are provided for in the same period the related sales are recorded. Returns and allowances, which reduce product revenue, are estimated using historical experience.

Under certain contracts with customers, recognition of a portion of the consideration received may be deferred and recorded as a contract liability if the Company has to satisfy a future obligation, such as to provide installation assistance. There were no contract liabilities other than customer deposits at December 31, 2019 and September 30, 2019. Customer deposits related to contracts with customers were $4,921,000 at December 31, 2019 and $1,918,000 at September 30, 2019, and are included in current liabilities on the Company’s condensed consolidated balance sheets at December 31, 2019 and September 30, 2019, respectively.

The Company records revenues earned for shipping and handling as freight revenue at the time of shipment, regardless of whether or not it is identified as a separate performance obligation. The cost of shipping and handling is classified as cost of goods sold concurrently.

 

12


Table of Contents
Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

Gencor Industries, Inc. (the “Company”), is a leading manufacturer of heavy machinery used in the production of highway construction materials and environmental control equipment. The Company’s core products include asphalt plants, combustion systems and fluid heat transfer systems. The Company’s products are manufactured in two facilities in the United States.

Because the Company’s products are sold primarily to the highway construction industry, the business is seasonal in nature. Traditionally, the Company’s customers reduce their purchases of new equipment for shipment during the summer and fall months to avoid disrupting their peak season for highway construction and related repair work. The majority of orders for the Company’s products are thus received between October and February, with a significant volume of shipments occurring in the late winter and spring. The principal factors driving demand for the Company’s products are the overall economic conditions, the level of government funding for domestic highway construction and repair, Canadian infrastructure spending, the need for spare parts, fluctuations in the price of crude oil (liquid asphalt as well as fuel costs), and a trend towards larger more efficient asphalt plants.

On December 4, 2015, President Obama signed into law a five-year, $305 billion transportation bill, Fixing America’s Surface Transportation Act (the “FAST Act”). The FAST Act reauthorized the collection of the 18.4 cents per gallon gas tax that is typically used to pay for transportation projects. It also included $70 billion from other areas of the federal budget to close a $16 billion annual funding deficit. The bill included spending of more than $205 billion on roads and highways over five years. The 2016 funding levels were approximately 5% above 2015 projected funding, with annual increases between 2.0% and 2.5% from 2016 through 2020.

California’s Senate Bill 1 (“SB1”), the Road Repair and Accountability Act of 2017, was signed into law on April 28, 2017. The legislative package invests $54 billion over the next decade to fix roads, freeways and bridges in communities across California and puts more dollars towards transit and safety. These funds will be allocated to state and local projects. Additionally, at least twenty other states have taken steps to increase their gas tax revenues in recent years.

Fluctuations in the price of carbon steel, which is a significant cost and material used in the manufacturing of the Company’s equipment, may affect the Company’s financial performance. The Company is subject to fluctuations in market prices for raw materials, such as steel. If the Company is unable to purchase materials it requires or is unable to pass on price increases to its customers or otherwise reduce its cost of goods sold, its business results of operations and financial condition may be adversely affected.

Also, a significant increase in the price of liquid asphalt could decrease demand for hot mix asphalt paving materials and certain of the Company’s products. Increases in oil prices also drive up the cost of gasoline and diesel, which results in increased freight costs. Where possible, the Company will pass increased freight costs on to its customers. However, the Company may not be able to recapture all of the higher costs and thus could have a negative impact on the Company’s financial performance.

The Company believes its strategy of continuing to invest in product engineering and development and its focus on delivering the highest quality products and superior service will strengthen the Company’s market position. The Company continues to review its internal processes to identify inefficiencies and cost-reduction opportunities. The Company will continue to scrutinize its relationships with suppliers to ensure it is achieving the highest quality materials and services at the most competitive cost.

 

13


Table of Contents

Results of Operations

Quarter Ended December 31, 2019 versus December 31, 2018

Net revenues for the quarters ended December 31, 2019 and December 31, 2018 were $18,030,000 and $21,327,000, respectively, a decrease of $3,297,000. The decline in revenues reflects a slowdown in equipment orders from the significant growth in business over the past couple of years. Revenue from parts and component sales increased 3.1% over the comparative quarter in the prior year.

As a percent of sales, gross profit margins were 24.0% in the quarter ended December 31, 2019, compared to 23.1% in the quarter ended December 31, 2018. Gross profit margins increased slightly as a result of the increased percentage of total revenues of higher margin parts and component sales compared to the prior year.

Product engineering and development expenses increased slightly to $766,000 for the quarter ended December 31, 2019 as compared to $723,000 for the quarter ended December 31, 2018, due to increased headcount. Selling, general and administrative (“SG&A”) expenses increased by $192,000 to $2,382,000 for the quarter ended December 31, 2019, compared to the quarter ended December 31, 2018. Increased travel expenses and professional fees resulted in the increase in SG&A expenses during the first quarter of fiscal 2020.

Operating income decreased to $1,172,000 for the quarter ended December 31, 2019, from $2,004,000 for the quarter ended December 31, 2018, due to lower revenues and increased SG&A expenses.

For the quarter ended December 31, 2019, interest and dividend income, net of fees, from the investment portfolio was $632,000 as compared to $534,000 in the quarter ended December 31, 2018. The net realized and unrealized gains on marketable securities were $1,317,000 for the quarter ended December 31, 2019 versus net losses of $(2,147,000) for the quarter ended December 31, 2018, due to a strong domestic stock market from October 2019 through December 2019.

The effective income tax rate for the quarter ended December 31, 2019 was 20.0%, compared to 19.9% for the quarter ended December 31, 2018.

Net income for the quarter ended December 31, 2019 was $2,489,000 or $0.17 basic and diluted earnings per share versus net income of $313,000 or $0.02 basic and diluted earnings per share for the quarter ended December 31, 2018.

Liquidity and Capital Resources

The Company generates capital resources through operations and returns on its investments.

The Company had no long-term debt outstanding at December 31, 2019 or September 30, 2019. The Company does not currently require a credit facility. As of December 31, 2019, the Company had funded $135,000 in cash deposits at insurance companies to cover collateral needs.

As of December 31, 2019, the Company had $14,343,000 in cash and cash equivalents, and $107,232,000 in marketable securities, including $40,005,000 in government securities, $42,474,000 in corporate bonds, $14,070,000 in equities, $4,052,000 in mutual funds, $5,298,000 in exchange-traded funds and $1,333,000 in cash and money funds. The marketable securities are invested through professional investment management firms. These securities may be liquidated at any time into cash and cash equivalents.

The Company’s backlog was $30.9 million at December 31, 2019, compared to $34.8 million at December 31, 2018. The Company’s working capital (defined as current assets less current liabilities) was equal to $151.7 million at December 31, 2019 and $150.4 million at September 30, 2019. The significant purchases, sales and maturities of marketable securities shown on the condensed consolidated statements of cash flows reflect primarily the recurring purchase and sale of United States treasury bills. Cash provided by operations during the quarter ended December 31, 2019 was $4,047,000. Deferred income taxes decreased $1.7 million and accrued expenses increased $1.8

 

14


Table of Contents

million reflecting the reclassification of taxes payable from a long-term liability to a current liability on the filing of the Company’s Form 3115 with the Internal Revenue Service to reflect the revenue recognition method change to the percentage of completion method for tax purposes pursuant to Internal Revenue Code Sections 460 and 451(b). Prepaid expenses increased $955,000 primarily related to payments on insurance policies which benefit the whole year and expenses related to the CONEXPO-CON/AGG trade show in March 2020. Customer deposits increased $3.0 million reflecting increased down payments against equipment bookings during the quarter.

Seasonality

The Company is concentrated in the manufacturing of asphalt plants and related components, which is typically subject to a seasonal slow-down during the third and fourth quarters of the calendar year.

Forward-Looking Information

This Quarterly Report contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which represent the Company’s expectations and beliefs, including, but not limited to, statements concerning gross margins, sales of the Company’s products and future financing plans. These statements, by their nature, involve substantial risks and uncertainties, certain of which are beyond the Company’s control. Actual results may differ materially depending on a variety of important factors, including the financial condition of the Company’s customers, changes in the economic and competitive environments and demand for the Company’s products.

For information concerning these factors and related matters, see the following sections of the Company’s Annual Report on Form 10-K for the year ended September 30, 2019: (a) “Risk Factors” in Part I and (b) “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II. However, other factors besides those referenced could adversely affect the Company’s 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 the Company herein speak as of the date of this Report. The Company does not undertake to update any forward-looking statements, except as required by law.

Critical Accounting Policies, Estimates and Assumptions

The Company believes the following discussion addresses its most critical accounting policies, which are those that are most important to the portrayal of the financial condition and results of operations and require management’s most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Accounting policies, in addition to the critical accounting policies referenced below, are presented in Note 1 to the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2019, under the heading “Accounting Pronouncements and Policies.”

Estimates and Assumptions

In preparing the Condensed Consolidated Financial Statements, the Company uses certain estimates and assumptions that may affect reported amounts and disclosures. Estimates and assumptions are used, among other places, when accounting for certain revenue (e.g., contract accounting), expense, and asset and liability valuations. The Company believes that the estimates and assumptions made in preparing the Condensed Consolidated Financial Statements are reasonable, but are inherently uncertain. Assumptions may be incomplete or inaccurate and unanticipated events may occur. The Company is subject to risks and uncertainties that may cause actual results to differ from estimated results.

 

15


Table of Contents

Revenues & Expenses

As discussed in Note 1 to the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2019, under the heading “Accounting Pronouncements and Policies”, the Company adopted the provisions of ASU No. 2014-09 and its related amendments effective for the quarter ended December 31, 2018 using the modified retrospective method. The adoption of this standard did not have a material impact on the timing or amounts of revenues recognized by the Company, and, as such, no cumulative effect adjustment was recorded with the adoption of the standard.

Revenues from contracts with customers for the design, manufacture and sale of custom equipment are recognized over time when the performance obligation is satisfied by transferring control of the equipment. Control of the equipment transfers over time as the equipment is unique to the specific contract and thus does not create an asset with an alternative use to the Company. Revenues and costs are recognized in proportion to actual labor costs incurred, as compared with total estimated labor costs expected to be incurred during the entire contract. All incremental costs related to obtaining a contract are expensed as incurred, as the amortization period is less than one year. Changes to total estimated contract costs or losses, if any, are recognized in the period in which they are determined.

Contract assets (excluding accounts receivable) under contracts with customers represent revenue recognized in excess of amounts billed on equipment sales recognized over time. These contract assets were $13,383,000 at December 31, 2019 and $13,838,000 at September 30, 2019 and are included in current assets as costs and estimated earnings in excess of billings on the Company’s condensed consolidated balance sheets at December 31, 2019 and September 30, 2019, respectively. The Company anticipates that all these contract assets at December 31, 2019, will be billed and collected within one year.

Revenues from all other contracts for the design and manufacture of equipment, for service and for parts sales, net of any discounts and return allowances, are recorded at a point in time when control of the goods or services has been transferred. Control of the goods or service typically transfers at time of shipment or upon completion of the service.

Payment for equipment under contract with customers is typically due prior to shipment. Payment for services under contract with customers is due as certain milestones are completed. Accounts receivable related to contracts with customers for equipment sales were $325,000 at December 31, 2019 and $301,000 at September 30, 2019.

Product warranty costs are estimated using historical experience and known issues and are charged to production costs as revenue is recognized.

Under certain contracts with customers, recognition of a portion of the consideration received may be deferred and recorded as a contract liability if the Company has to satisfy a future obligation, such as to provide installation assistance. There were no contract liabilities other than customer deposits at December 31, 2019 and September 30, 2019. Customer deposits related to contracts with customers were $4,921,000 at December 31, 2019 and $1,918,000 at September 30, 2019, and are included in current liabilities on the Company’s condensed consolidated balance sheets at December 31, 2019 and September 30, 2019, respectively.

The Company records revenues earned for shipping and handling as freight revenue at the time of shipment, regardless of whether or not it is identified as a separate performance obligation. The cost of shipping and handling is classified as cost of goods sold concurrently.

Provisions for estimated returns and allowances and other adjustments are provided for in the same period the related sales are recorded. Returns and allowances, which reduce product revenue, are estimated using historical experience.

All product engineering and development costs, and selling, general and administrative expenses are charged to operations as incurred. Provision is made for any anticipated contract losses in the period that the loss becomes evident.

 

16


Table of Contents

The allowance for doubtful accounts is determined by performing a specific review of all account balances greater than 90 days past due and other higher risk amounts to determine collectability and also adjusting for any known customer payment issues with account balances in the less-than-90-day past due aging buckets. Account balances are charged off against the allowance for doubtful accounts when they are determined to be uncollectable. Any recoveries of account balances previously considered in the allowance for doubtful accounts reduce future additions to the allowance for doubtful accounts.

Inventories

Inventories are valued at the lower of cost or net realizable value. Net realizable value is defined as the estimated selling price of goods less reasonable costs of completion and delivery. During the fourth quarter of fiscal 2019, the Company changed its method for accounting for cost of inventories from the LIFO method to the FIFO method. The Company believes the FIFO method improves financial reporting by better reflecting the current value of inventory on the consolidated balance sheets, by more closely aligning the flow of physical inventory with the accounting for the inventory, and by providing better matching of revenues and expenses. The change in accounting method will also require the Company to make a conforming change for U.S. income tax purposes.

As required by GAAP, the Company has reflected this change in accounting principle on a retrospective basis, resulting in changes to the historical periods presented. The retrospective application of the change resulted in an increase in the Company’s September 30, 2018 and September 30, 2017 retained earnings of $2,838,000 (net of $838,000 in taxes) and $2,708,000 (net of $792,000 in taxes) respectively, and an increase to the Company’s net income of $130,000 (net of $45,000 in taxes) for the year ended September 30, 2018. This change did not affect our previously reported cash flows from operating, investing or financing activities nor did it have a significant impact on the previously reported quarterly operating results for fiscal 2019.

All inventories are now valued at the lower of cost or net realizable value, with cost being determined under the FIFO method and net realizable value defined as the estimated selling price of goods less reasonable costs of completion and delivery (see Note 2 to Consolidated Financial Statements). Appropriate consideration is given to obsolescence, excessive levels, deterioration, possible alternative uses and other factors in determining net realizable value. The cost of work in process and finished goods includes materials, direct labor, variable costs and overhead. The Company evaluates the need to record inventory adjustments on all inventories, including raw materials, work in process, finished goods, spare parts and used equipment. Used equipment acquired by the Company on trade-in from customers is carried at estimated net realizable value. Unless specific circumstances warrant different treatment regarding inventory obsolescence, the cost basis of inventories three to four years old are reduced by 50%, while the cost basis of inventories four to five years old are reduced by 75%, and the cost basis of inventories greater than five years old are reduced to zero. Inventory is typically reviewed for obsolescence on an annual basis computed as of September 30, the Company’s fiscal year end. If significant known changes in trends, technology or other specific circumstances that warrant consideration occur during the year, then the impact on obsolescence is considered at that time.

Investments

Marketable debt and equity securities are categorized as trading securities and are thus marked to market and stated at fair value. Fair value is determined using the quoted closing or latest bid prices for Level 1 investments and market standard valuation methodologies for Level 2 investments. Realized gains and losses on investment transactions are determined by specific identification and are recognized as incurred in the condensed consolidated statements of income. Net unrealized gains and losses are reported in the condensed consolidated statements of income and represent the change in the fair value of investment holdings during the period.

Long-Lived Asset Impairment

Property and equipment, and intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. An impairment loss would be recognized when the carrying amount of an asset exceeds the estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition. The amount of the impairment loss to be recorded is calculated by the excess over its fair value of the asset’s carrying value. Fair value is generally determined using a discounted cash flow analysis.

Off-Balance Sheet Arrangements

None

 

17


Table of Contents
Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Not Applicable

 

Item 4.

Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Company’s Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of the design and operation of the Company’s “disclosure controls and procedures” (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this Quarterly Report. Based upon that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that, as of the end of the period covered by this Quarterly Report, the Company’s disclosure controls and procedures are effective.

Because of inherent limitations, the Company’s disclosure controls and procedures, no matter how well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of such disclosure controls and procedures are met and no evaluation can provide absolute assurance that all control issues and instances of fraud, if any, within the Company has been detected.

Changes in Internal Control over Financial Reporting

The Company’s management, including the Chief Executive Officer and Chief Financial Officer, has reviewed the Company’s internal control over financial reporting. There were no changes in the Company’s internal control over financial reporting during the quarter ended December 31, 2019 that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

18


Table of Contents

Part II. Other Information

 

ITEM 1.

LEGAL PROCEEDINGS

From time to time the Company is engaged in legal proceedings in the ordinary course of business. We do not believe any current legal proceedings are material to our business.

 

ITEM 1A.

RISK FACTORS

There have been no material changes in our risk factors from those set forth in Part I, Item 1A, “Risk Factors” contained in our Annual Report on Form 10K for the period ended September 30, 2019, as filed with the SEC on December 11, 2019.

 

ITEM 6.

EXHIBITS

 

(a)

Exhibits

 

  31.1*    Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended
  31.2*    Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended
  32*    Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U. S. C. Section 1350
101.INS*    XBRL Instance Document
101.SCH*    XBRL Taxonomy Extension Schema
101.CAL*    XBRL Taxonomy Extension Calculation Linkbase
101.DEF*    XBRL Taxonomy Extension Definition Linkbase
101.LAB*    XBRL Taxonomy Extension Label Linkbase
101.PRE*    XBRL Taxonomy Extension Presentation Linkbase

 

*

Filed herewith

 

19


Table of Contents

SIGNATURES

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

 

GENCOR INDUSTRIES, INC.
/s/ John E. Elliott

John E. Elliott

Chief Executive Officer

January 31, 2020
/s/ Eric E. Mellen

Eric E. Mellen

Chief Financial Officer

(Principal Financial and Accounting Officer)

January 31, 2020

 

 

 

 

 

 

 

20