In This Article:
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Revenue: $40,676,000 for Q2 2024, up 33.4% from $30,501,000 in Q2 2023.
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Gross Profit Margin: Increased to 30.3% in Q2 2024 from 29.8% in Q2 2023.
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Operating Income: Rose 37.0% to $7,072,000 in Q2 2024 from $5,161,000 in Q2 2023.
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Net Income: Increased 27.7% to $6,222,000 in Q2 2024, with EPS of $0.42, up from $4,873,000 and EPS of $0.33 in Q2 2023.
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SG&A Expenses: Increased by $1,295,000 to $4,357,000 in Q2 2024, primarily due to higher trade show costs and professional fees.
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Backlog: As of March 31, 2024, stood at $50.4 million, up 34.8% from $37.4 million as of March 31, 2023.
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Cash and Marketable Securities: Increased to $117,107,000 as of March 31, 2024, from $101,283,000 as of March 31, 2023.
On May 10, 2024, Gencor Industries Inc (GENC) released its 8-K filing, announcing robust financial results for the second quarter of fiscal year 2024. The manufacturer of heavy machinery used in highway construction and environmental control equipment reported a notable 33.4% increase in net revenues, reaching $40.676 million up from $30.501 million in the same quarter the previous year.
The company, which specializes in equipment for the highway construction industry, saw its gross profit margins improve slightly from 29.8% to 30.3% due to better absorption on increased production and favorable price realization. However, this period also saw a rise in selling, general and administrative expenses by $1.295 million, primarily due to increased trade show expenses and professional fees.
Financial Performance Overview
Operating income for the quarter surged by 37.0%, amounting to $7.072 million, driven by significantly higher net revenue. Despite a decrease in non-operating income due to lower gains on marketable securities, net income still increased by 27.7% to $6.222 million, or $0.42 per share, compared to $4.873 million, or $0.33 per share, in the prior year's quarter.
For the six months ended March 31, 2024, Gencor reported net revenue of $66.694 million and net income of $10.548 million, or $0.72 per diluted share, compared to net revenue of $56.327 million and net income of $8.349 million, or $0.57 per diluted share, for the same period in 2023.
Balance Sheet and Market Position
As of March 31, 2024, Gencor held $117.107 million in cash and marketable securities, an increase from $101.283 million as of September 30, 2023. The company's net working capital stood at $176.523 million, with no short-term or long-term debt outstanding. The backlog increased by 34.8% year-over-year to $50.4 million, reflecting continued optimism in the infrastructure sector.