Gentex Reports Second Quarter Results

Zeeland, MI-based Gentex Corp. has reported financial results for the second quarter, which ended June 30. The company's net sales increased by 8 percent from $132.4 million in the second quarter of 2005 to a record $142.4 million in the second quarter of 2006. Second quarter net income increased by 5 percent to $27.2 million compared with $26 million in the second quarter last year. Earnings per diluted share were 18 cents in the second quarter of 2006 compared with 17 cents in the second quarter of 2005.

ZEELAND, MI — Zeeland, MI-based Gentex Corp. has reported financial results for the second quarter, which ended June 30.

The company’s net sales increased by 8 percent from $132.4 million in the second quarter of 2005 to a record $142.4 million in the second quarter of 2006. Second quarter net income increased by 5 percent to $27.2 million compared with $26 million in the second quarter last year. Earnings per diluted share were 18 cents in the second quarter of 2006 compared with 17 cents in the second quarter of 2005.

For the first six months of 2006, net sales increased by 8 percent to $281.4 million compared with $260 million in the first six months of 2005. Net income for the first six months of 2006 increased by 3 percent to $53.6 million compared with $52 million in the first six months of 2005.

Excluding the impact of stock option expensing, the company’s net income would have increased by 10 percent to $28.6 million in the second quarter of 2006, and earnings per diluted share would have been 19 cents. Net income, excluding the impact of stock option expensing, would have increased by seven percent for the first six months of 2006 to $55.9 million, and earnings per diluted share would have been 36 cents. Stock option expensing did not impact the company’s income statement for the second quarter and first six months of 2005, but was disclosed in a footnote to the financial statements.

The company has also reported that it repurchased approximately 7.2 million shares during the second quarter of 2006 at a cost of approximately $104.6 million. The company has a share repurchase plan in place with authorization to repurchase up to 16 million shares of the company’s stock (including the May board of directors’ authorization to repurchase an additional eight million shares). To date, including the prior share repurchases in 2003, 2005 and 2006, the company has repurchased approximately 12,331,000 shares, leaving approximately 3,669,000 shares authorized to be repurchased under the plan.

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