Gencor Reports Q1 EPS $0.09 vs $0.12 YoY, Revs $6.9M vs $7.8M YoY

Gencor Industries, Inc. GENC announced net revenue for the quarter ended December 31, 2011 of $6.9 million, compared to $7.8 million for the quarter ended December 31, 2010. Gross margins decreased to 10.5% for the three months ended December 31, 2011 versus 12.5% in the prior year's quarter. Selling, general and administrative expense decreased by $0.3 million to $1.8 million for the quarter ended December 31, 2011. The lower expense was due to cost cutting measures implemented during prior quarters. For the quarter ended December 31, 2011, the Company had non-operating income of $2.8 million resulting from interest and dividend income and net realized and unrealized gains on marketable securities. Pre-tax income for the quarter was $1.2 million and net income was $0.9 million ($.09 earnings per share). For the quarter ended December 31, 2010, the Company had non-operating income of $3.2 million resulting in pre-tax income of $1.5 million and net income of $1.1 million ($.12 earnings per share). At December 31, 2011, the Company had $78.1 million of cash and marketable securities compared to $74.2 million at September 30, 2011. The increase of $3.8 million in cash and marketable securities was the result of net realized and unrealized gains in marketable securities during the period, as well as a larger cash balance at December 31, 2011. E.J. Elliott, Gencor's Chairman, stated, "Our revenue in the first quarter of fiscal 2012 was down 12% compared to revenue in the first quarter of last fiscal year due to the timing of orders. Our two factories are currently operating under full capacity. As we enter the second quarter of fiscal 2012 we are enjoying a significantly improved sales backlog. However, we continue to remain cautious about the growth of the U.S. economy and the absence of a long term Highway Bill, as well as funding of this current Highway Trust Fund. Current funding under the eighth SAFETEA-LU extension expires on March 31, 2012 and it is unclear whether a new multiyear bill will be enacted and funded, or another short term extension granted.