gntx-20210331

XBRL

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021 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: 0-10235

GENTEX CORPORATION

(Exact name of registrant as specified in its charter)


Michigan						38-2030505
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

600 N. Centennial
Zeeland
Michigan						49464
(Address of principal executive offices)						(Zip Code)

(616) 772-1800

(Registrant’s telephone number, including area code)

________________________________________________________

(Former name, former address and former fiscal year, if changed since last report)

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


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.06 per share	GNTX	NASDAQ Global Select 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: þ No: o

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: þ No: o

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. o

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

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

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: o No: o

APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.


Class						Shares Outstanding, April 23, 2021
Common Stock, $.06 Par Value						241,537,423

GENTEX CORPORATION AND SUBSIDIARIES

For the Three Months Ended March 31, 2021

FORM 10-Q

Index


Part I - Financial Information		Page
Item 1.	Unaudited Consolidated Financial Statements	3
	Unaudited Condensed Consolidated Balance Sheets	3
	Unaudited Condensed Consolidated Statements of Income	4
	Unaudited Condensed Consolidated Statements of Comprehensive Income	5
	Unaudited Condensed Consolidated Statements of Cash Flows	7
	Notes to Unaudited Condensed Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33
Item 4.	Controls and Procedures	34

Part II - Other Information
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 6.	Exhibits	36
	Signatures	36
	Exhibit Index	38

PART I —FINANCIAL INFORMATION

Item 1. Unaudited Consolidated Financial Statements.

GENTEX CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31, 2021 and December 31, 2020


	March 31, 2021 (Unaudited)		December 31, 2020 (Note)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	455,940,751	$	423,371,036
Short-term investments	25,944,114		27,164,369
Accounts receivable, net	277,676,643		284,925,335
Inventories	233,060,307		226,291,843
Prepaid expenses and other	17,893,732		17,577,981
Total current assets	1,010,515,547		979,330,564

PLANT AND EQUIPMENT—NET	460,593,013		468,135,135

OTHER ASSETS
Goodwill	314,681,508		311,922,787
Long-term investments	172,934,410		162,028,068
Intangible assets, net	256,911,809		249,748,127
Patents and other assets, net	26,809,257		26,776,489
Total other assets	771,336,984		750,475,471

Total assets	$	2,242,445,544	$	2,197,941,170

LIABILITIES AND SHAREHOLDERS’ INVESTMENT

CURRENT LIABILITIES
Accounts payable	$	107,061,936	$	84,784,423
Current portion of long-term debt	—		—
Accrued liabilities	116,168,057		92,952,434
Total current liabilities	223,229,993		177,736,857

OTHER NON-CURRENT LIABILITIES	18,059,874		17,300,442



DEFERRED INCOME TAXES	40,174,963		38,960,743

Total liabilities	281,464,830		233,998,042

SHAREHOLDERS’ INVESTMENT
Common stock	14,492,329		14,621,572
Additional paid-in capital	859,355,232		852,771,508
Retained earnings	1,085,178,486		1,089,698,996
Accumulated other comprehensive income (loss)	1,954,667		6,851,052
Total shareholders’ investment	1,960,980,714		1,963,943,128
Total liabilities and shareholders’ investment	$	2,242,445,544	$	2,197,941,170

Note: The condensed consolidated balance sheet at December 31, 2020 has been derived from the audited 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.

GENTEX CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

For the Three Months Ended March 31, 2021 and 2020


	Three Months Ended March 31,
		2021		2020
NET SALES		$	483,724,839	$	453,761,726

COST OF GOODS SOLD		300,424,671		297,174,245
Gross profit		183,300,168		156,587,481

OPERATING EXPENSES:
Engineering, research and development

SEC Form 10-Q filed by Gentex Corporation