Gencor Industries, Inc. (GENC): history, ownership, mission, how it works & makes money

A Brief History of Gencor Industries, Inc. (GENC)

Founding and Early Years

Gencor Industries, Inc. was founded in 1968 by Joseph D. Smith and his partners in Orlando, Florida. The company initially focused on manufacturing equipment for the asphalt and construction industries. Its early product line included a range of products related to asphalt production.

Public Offering and Expansion

In 1994, Gencor went public, trading on the NASDAQ under the symbol GENC. The IPO was a significant milestone for the company, allowing it to increase its capital for expansion. By the late 1990s, Gencor had diversified its product offerings, including the introduction of products related to hot mix asphalt and aggregate production.

Product Development and Innovations

Throughout the 2000s, Gencor invested heavily in research and development, resulting in innovations such as the Gencor Ultra Low Emissions Asphalt Plant introduced in 2004. The company focused on environmentally friendly technologies that complied with stringent regulations affecting the asphalt industry.

Financial Performance

As of the fiscal year ending September 30, 2022, Gencor reported revenues of approximately $31.5 million. The company has maintained a healthy balance sheet with a market capitalization of around $166 million. In recent years, Gencor's gross margins have typically hovered around 30%, showcasing operational efficiency and effective cost management.

Recent Developments

In 2021, Gencor announced a strategic partnership with global leaders in sustainable construction technologies. This partnership aims to enhance Gencor's capabilities in producing more efficient and eco-friendly paving solutions. The company reported a backlog of orders worth approximately $12.5 million as of early 2023, indicating robust demand for its products.

Market Position

As of 2023, Gencor Industries, Inc. is recognized as a leader in the manufacturing of asphalt plants and related equipment. The company largely operates within the U.S. market while also exporting to several countries, contributing to an international presence.

Future Outlook

Analysts project a growth in the asphalt equipment market, with expectations for Gencor to capture a significant share due to its established reputation and focus on innovation. Revenue for fiscal year 2023 is projected to reach approximately $35 million as demand for infrastructure projects continues to rise.

A Who Owns Gencor Industries, Inc. (GENC)

Shareholder Composition

The ownership structure of Gencor Industries, Inc. (GENC) primarily consists of institutional investors, retail investors, and executives. Shareholder composition indicates the level of ownership among different entities which can significantly impact corporate governance and strategic decisions.

Major Institutional Shareholders

Insider Ownership

Insider ownership can be a strong indicator of management's confidence in the company. Gencor Industries’ insiders have significant holdings as follows:

Ownership Percentage

Shareholder Equity

As of the latest financial quarter, Gencor Industries reported a total shareholder equity of:

• Total Shareholder Equity: $25 million
• Total Outstanding Shares: 7.7 million
• Book Value per Share: $3.25

Market Capitalization

The market capitalization of Gencor Industries, as of the latest trading session, is:

• Market Capitalization: $75 million
• Current Stock Price: $9.75

Recent Financial Performance

For the most recent fiscal year, Gencor Industries reported the following financial highlights:

Recent Changes in Ownership

Over the last fiscal year, there have been notable changes in ownership:

• Increase in shares held by The Vanguard Group by 200,000 shares.
• BlackRock, Inc. reduced its holdings by 50,000 shares.
• Dimensional Fund Advisors LP increased its stake by 75,000 shares.

Gencor Industries, Inc. (GENC) Mission Statement

Corporate Vision

The mission statement of Gencor Industries, Inc. encapsulates its commitment to providing high-quality products in the asphalt, concrete, and thermoplastic industries. This commitment is reflected in its promise to deliver innovative solutions to meet its customers' needs.

Core Values

• Integrity: Upholding the highest standards of honesty and fairness.
• Innovation: Emphasizing continuous improvement and technological advancements.
• Quality: Focusing on superior products and services.
• Customer Satisfaction: Prioritizing the needs and expectations of customers.

Financial Overview

Gencor Industries' financial performance reflects its operational effectiveness and market position. Below are key financial metrics as of the most recent fiscal year:

Market Position

Gencor Industries operates within the industrial machinery sector, focusing on the production of a variety of equipment utilized in asphalt and concrete production. The company is strategically positioned with a substantial market share in the North American region, supported by a robust distribution network.

Strategic Goals

• Enhancement of Product Lines: To continuously develop and innovate product offerings to remain competitive.
• Expansion: To explore new markets both domestically and internationally.
• Operational Efficiency: To streamline operations to reduce costs and improve profitability.

Recent Developments

In 2023, Gencor Industries announced significant investments in R&D, targeting a budget allocation of approximately $2.5 million, aimed at technological advancements in its equipment lines. These investments are expected to enhance production capabilities and operational efficiencies.

Conclusion

The mission statement of Gencor Industries, Inc. serves as a guiding principle for its operations, reflecting its commitment to quality, integrity, and innovation in the industrial machinery sector.

How Gencor Industries, Inc. (GENC) Works

Company Overview

Gencor Industries, Inc. (GENC), established in 1968, is a leading manufacturer of industrial machinery and equipment for the construction and asphalt industry. The company designs, engineers, and manufactures a broad range of products for the aggregate, asphalt production, and construction industries.

Product Lines

• Asphalt Plants
• Concrete Plants
• Aggregate Equipment
• Environmental Solutions
• Parts and Service

Market Position

As of October 2023, Gencor maintains a strong position within its niche, holding approximately 10% of the U.S. market share in asphalt production equipment.

Financial Performance

For the fiscal year ended September 2023, Gencor reported revenues of $91.3 million, demonstrating a year-over-year increase of 15% from $79.3 million in 2022.

Net income for the same fiscal year was reported at $5.6 million, with adjusted EBITDA of $9.2 million.

Stock Performance

As of October 2023, Gencor's stock price is around $12.50, with a market capitalization of approximately $145 million. The stock has seen a price increase of about 25% over the past year.

Operational Structure

Gencor operates out of its headquarters located in Orlando, Florida, with manufacturing facilities located in:

Research and Development

Gencor invests approximately 6% of its annual revenue in research and development, focusing on innovative technologies to improve equipment efficiency and reduce environmental impact.

Global Reach

The company exports its products to over 50 countries worldwide, with significant sales in:

• Canada
• Mexico
• Brazil
• Australia
• Germany

Customer Base

Gencor serves a diverse customer base, including both public and private sectors. Key customers include:

• Government Agencies
• Construction Companies
• Road Maintenance Firms
• Aggregate Producers

Competitive Landscape

Gencor faces competition from other companies like Astec Industries, Inc. and Terex Corporation, which also provide similar machinery and equipment.

Sustainability Initiatives

The company has implemented several sustainability initiatives to enhance its environmental footprint, including:

• Recycling of asphalt
• Reducing energy consumption in manufacturing
• Utilizing eco-friendly materials in production

Recent Developments

In 2023, Gencor launched a new line of eco-friendly asphalt plants, contributing to a projected revenue growth of 20% for the next fiscal year.

Outlook

The outlook for Gencor Industries, Inc. remains positive, with anticipated revenue growth driven by expanding infrastructure projects and increasing demand for sustainable construction solutions.

How Gencor Industries, Inc. (GENC) Makes Money

Revenue Streams

Gencor Industries, Inc. generates revenue through various segments, primarily focused on the production and sale of asphalt plants and equipment. In the fiscal year 2022, Gencor reported total revenues of approximately $95.3 million.

Product Segments

• Asphalt Plants
• Environmental Equipment
• Concrete Batch Plants
• Parts and Services

Asphalt Plants

The asphalt plant segment is the largest contributor to Gencor's revenues, accounting for around 63% of the total revenue in 2022, which translates to about $59.95 million.

Environmental Equipment

Gencor's environmental equipment sales, including emissions control systems, generated approximately $18.5 million, constituting 19.4% of the total revenue in 2022.

Concrete Batch Plants

The concrete batch plant segment accounted for about $9.2 million in revenue, representing 9.6% of total sales.

Parts and Services

Parts and services contributed roughly $7.65 million to the company’s revenue, making up approximately 8% of the total revenue.

Cost Structure

In 2022, Gencor Industries reported a cost of goods sold (COGS) amounting to $74.1 million, leading to a gross profit of approximately $21.2 million.

Operating Expenses

Operating expenses for Gencor in 2022 totaled about $12.7 million, which included:

• Research and Development: $2.1 million
• Sales and Marketing: $3.5 million
• General and Administrative: $7.1 million

Net Income

Gencor Industries, Inc. reported a net income of approximately $6.2 million for the fiscal year 2022, highlighting a net profit margin of around 6.5%.

Geographic Revenue Distribution

Market Trends and Growth

According to industry analyses, the asphalt plant market is expected to grow at a CAGR of approximately 5% from 2023 to 2030, potentially expanding the revenue opportunities for Gencor Industries in the coming years.

Financial Performance Metrics

Conclusion

Gencor Industries leverages its diverse product offerings and geographic reach to drive revenue from both domestic and international markets. The company's focus on innovation and efficiency plays a pivotal role in its financial strategy.