 ORLANDO, Fla., Aug. 06, 2020 GLOBE NEWSWIRE -- Gencor Industries, Inc. Nasdaq: GENC announced today net revenues of 22.9 million for the quarter ended June 30, 2020 compared to 18.8 million for the quarter ended June 30, 2019. Gross margins were 23.5 for the quarter ended June 30, 2020 compared to 25.2 for the quarter ended June 30, 2019, as the gross profit margins achieved in the current quarter were impacted by a higher percentage of revenues generated from plant and equipment sales compared with parts sales, which have a higher gross margin. Product engineering and development expenses decreased 32,000 to 849,000 for the quarter ended June 30, 2020, on reduced travel expenses. Selling, general and administrative SGA expenses increased 51,000 to 2,522,000 for the quarter ended June 30, 2020. Increases in sales headcount resulted in the increased SGA expenses. Operating income for the quarter ended June 30, 2020 increased 44.1 to 2.0 million compared with 1.4 million for the quarter ended June 30, 2019, on higher revenues and production volumes. For the quarter ended June 30, 2020, the Company had non-operating income of 3.4 million compared to non-operating income of 1.7 million for the quarter ended June 30, 2019. Included in non-operating income for the quarter ended June 30, 2020 were net realized and unrealized gains on marketable securities of 2.9 million, due to recovery in the domestic equity markets after the initial declines from the impact of the COVID-19 pandemic in the prior quarter. The effective income tax rate for the quarters ended June 30, 2020 and 2019 was 20.0. Net income for the quarter ended June 30, 2020 was 4.3 million, or 0.29 per diluted share, compared with net income of 2.4 million, or 0.17 per diluted share for the quarter ended June 30, 2019.For the nine months ended June 30, 2020 the Company reported net revenue of 67.0 million and net income of 6.2 million 0.42 per diluted share versus net revenue of 66.8 million and net income of 10.2 million 0.69 per diluted share for the nine months ended June 30, 2019. Compared to the prior year, lower gross profit margins and net realized and unrealized losses on marketable securities contributed to the lower net income in the nine months ended June 30, 2020.At June 30, 2020, the Company had 124.2 million of cash and marketable securities compared to 115.6 million at September 30, 2019. Net working capital was 154.7 million at June 30, 2020. The Company had no short-term or long-term debt outstanding at June 30, 2020.The Companys backlog was 11.7 million at June 30, 2020 compared to 11.9 million at June 30, 2019.John Elliott, Gencors CEO, stated, Gencor performed well in this challenging market environment associated with the COVID-19 pandemic. We continue to demonstrate the operating durability of our business as well as our ability to achieve solid profitability and cash flow. While there is still significant uncertainty around demand, the shape of the economic recovery and the continued impact of the pandemic, we are encouraged by the results we have achieved in the first six months of the calendar year.Third quarter fiscal 2020 revenues were well above third quarter of fiscal 2019. Production and deliveries were minimally affected by COVID-19-related precautions in the current quarter.The FAST Act is scheduled to expire in September 2020. Currently there is no replacement or extension of the FAST Act. While the economic outlook remains uncertain, by producing in line with customer demand and aggressively managing costs, I am confident Gencor will successfully navigate these challenging times.Gencor Industries is a diversified heavy machinery manufacturer for the production of highway construction materials, synthetic fuels and environmental control machinery and equipment used in a variety of applications. GENCOR INDUSTRIES, INC. Condensed Consolidated Statements of Income Unaudited For the Quarters Ended June 30, For the Nine Months Ended June 30, 2020 2019 2020 2019 Net revenue22,940,000 18,848,000 66,963,000 66,845,000 Costs and expenses: Production costs 17,555,000 14,098,000 49,920,000 47,267,000 Product engineering and development 849,000 881,000 2,304,000 2,427,000 Selling, general and administrative 2,522,000 2,471,000 7,465,000 7,135,000 20,926,000 17,450,000 59,689,000 56,829,000 Operating income 2,014,000 1,398,000 7,274,000 10,016,000 Other income expense, net: Interest and dividend income, net of fees 512,000 567,000 1,907,000 1,608,000 Net realized and unrealized gains losses on marketable securities 2,888,000 1,090,000 1,465,000 1,147,000 Other 10,000 - 20,000 - 3,390,000 1,657,000 422,000 2,755,000 Income before income tax expense 5,404,000 3,055,000 7,696,000 12,771,000 Income tax expense 1,082,000 611,000 1,540,000 2,554,000 Net income4,322,000 2,444,000 6,156,000 10,217,000 Basic Income per Common Share: Net income per share0.30 0.17 0.42 0.70 Diluted Income per Common Share: Net income per share0.29 0.17 0.42 0.69 GENCOR INDUSTRIES, INC. Condensed Consolidated Balance Sheets June 30, September 30, 2020 2019 ASSETSUnaudited Current Assets: Cash and cash equivalents18,564,000 10,302,000 Marketable securities at fair value cost 105,388,000 at June 30, 2020 and 104,176,000 at September 30, 2019 105,675,000 105,322,000 Accounts receivable, less allowance for doubtful accounts of 419,000 at June 30, 2020 and 459,000 at September 30, 2019 1,609,000 1,603,000 Costs and estimated earnings in excess of billings 10,064,000 13,838,000 Inventories, net 24,562,000 25,366,000 Prepaid expenses and other current assets 1,649,000 499,000 Total Current Assets 162,123,000 156,930,000 Property and equipment, net 8,391,000 8,389,000 Other assets 53,000 53,000 Total Assets170,567,000 165,372,000 LIABILITIES AND SHAREHOLDERS EQUITY Current Liabilities: Accounts payable2,089,000 1,907,000 Customer deposits 2,651,000 1,918,000 Accrued expenses and other current liabilities 2,694,000 2,660,000 Total Current Liabilities 7,434,000 6,485,000 Deferred and other income taxes 1,306,000 3,372,000 Total Liabilities 8,740,000 9,857,000 Commitments and contingencies Shareholders equity: Preferred stock, par value .10 per share; 300,000 shares authorized; none issued - - Common stock, par value .10 per share; 15,000,000 shares authorized; 12,287,337 shares issued and outstanding at June 30, 2020 and 12,277,337 shares issued and outstanding at September 30, 2019 1,229,000 1,228,000 Class B Stock, par value .10 per share; 6,000,000 shares authorized; 2,318,857 shares issued and outstanding at June 30, 2020 and 2,308,857 shares issued and outstanding at September 30, 2019 232,000 231,000 Capital in excess of par value 12,313,000 12,159,000 Retained earnings 148,053,000 141,897,000 Total Shareholders Equity 161,827,000 155,515,000 Total Liabilities and Shareholders Equity170,567,000 165,372,000 Caution Concerning Forward Looking Statements - This press release and our other communications and statements may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended the Exchange Act, including statements about the Companys beliefs, plans, objectives, goals, expectations, estimates, projections and intentions. These statements are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond the Companys control. Actual results may differ materially depending on a variety of important factors, including the financial condition of the Companys customers, changes in the economic and competitive environments, demand for the Companys products, the duration and scope of the coronavirus COVID-19 pandemic, actions governments, and businesses take in response to the COVID-19 pandemic, including mandatory business closures; the impact of the pandemic and actions taken on regional economies; the pace of recovery when the COVID-19 pandemic subsides. The words may, could, should, would, believe, anticipate, estimate, expect, intend, plan, target, goal, and similar expressions are intended to identify forward-looking statements. For information concerning these factors and related matters, see Part I, Item 2, Managements Discussion and Analysis of Financial Condition and Results of Operations, in the Companys Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, and Part II, Item 1A, Risk Factors in the Companys Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, and the following sections of the Companys Annual Report on Form 10-K for the year ended September 30, 2019: a Part I, Item 1A, Risk Factors and b Part II, Item 7, Managements Discussion and Analysis of Financial Condition and Results of Operations. However, other factors besides those referenced could adversely affect the Companys results, and you should not consider any such list of factors to be a complete set of all potential risks or uncertainties. Any forward-looking statements made by the Company herein speak as of the date of this press release. The Company does not undertake to update any forward-looking statements, except as required by law. 