gntx-20220331

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, 2022 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 22, 2022
Common Stock, $.06 Par Value						234,459,296

GENTEX CORPORATION AND SUBSIDIARIES

For the Three Months Ended March 31, 2022

FORM 10-Q

Index


Part I - Financial Information		Page
Item 1.	Unaudited Condensed 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 Shareholders' Investment	6
	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	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
Item 4.	Controls and Procedures	30

Part II - Other Information
Item 1A.	Risk Factors	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 6.	Exhibits	32
	Signatures	32
	Exhibit Index	34

PART I —FINANCIAL INFORMATION

Item 1. Unaudited Condensed Consolidated Financial Statements.

GENTEX CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31, 2022 and December 31, 2021


	March 31, 2022 (Unaudited)		December 31, 2021 (Note)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	279,708,413	$	262,311,670
Short-term investments	6,891,621		5,423,612
Accounts receivable, net	281,461,678		249,794,906
Inventories	362,736,521		316,267,442
Prepaid expenses and other	24,733,040		39,178,119
Total current assets	955,531,273		872,975,749

PLANT AND EQUIPMENT—NET	468,409,064		464,121,676

OTHER ASSETS
Goodwill	313,928,914		313,960,209
Long-term investments	175,824,026		207,693,147
Intangible assets, net	234,229,803		239,189,627
Patents and other assets, net	32,459,405		33,450,758
Total other assets	756,442,148		794,293,741

Total assets	$	2,180,382,485	$	2,131,391,166

LIABILITIES AND SHAREHOLDERS’ INVESTMENT

CURRENT LIABILITIES
Accounts payable	$	140,887,194	$	98,342,928

Accrued liabilities	98,335,978		83,313,172
Total current liabilities	239,223,172		181,656,100

OTHER NON-CURRENT LIABILITIES	12,190,413		11,746,599





Total liabilities	251,413,585		193,402,699

SHAREHOLDERS’ INVESTMENT
Common stock	14,068,640		14,186,450
Additional paid-in capital	881,371,438		879,413,385
Retained earnings	1,038,656,230		1,042,461,388
Accumulated other comprehensive (loss) income	(5,127,408)		1,927,244
Total shareholders’ investment	1,928,968,900		1,937,988,467
Total liabilities and shareholders’ investment	$	2,180,382,485	$	2,131,391,166

Note: The condensed consolidated balance sheet at December 31, 2021 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.

GENTEX CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

For the Three Months Ended March 31, 2022 and 2021


	Three Months Ended March 31,
		2022		2021
NET SALES		$	468,250,776	$	483,724,839

COST OF GOODS SOLD		307,838,816		300,424,671
Gross profit		160,411,960		183,300,168

OPERATING EXPENSES:
Engineering, research and development		31,974,987		27,652,081
Selling, general & administrative		25,131,068		21,914,386
Total operating expenses		57,106,055		49,566,467

Income from operations		103,305,905		133,733,701

OTHER (LOSS) INCOME
Investment income

SEC Form 10-Q filed by Gentex Corporation