ZEELAND, Mich., Aug. 14 /PRNewswire-FirstCall/ -- Gentex Corporation
(Nasdaq: GNTX), the Zeeland, Michigan-based manufacturer of
automatic-dimming automotive rearview mirrors and commercial fire
protection products, today announced that its Board of Directors approved a
six percent increase in its quarterly cash dividend rate from $0.09 to
$0.095 (9 1/2 cents) per share. The Board subsequently declared a quarterly
cash dividend of $0.095 per share that will be payable October 20, 2006, to
shareholders of record of the common stock at the close of business on
October 6, 2006. The ex-dividend date is October 4, 2006. Due to the
required period of time for the settlement of stock trades, this means that
a holder must have purchased shares of Gentex common stock on or before
October 3, 2006, in order to receive this cash dividend.
In addition to the dividend rate increase, the Company's Board of
Directors also approved the repurchase of up to an additional eight million
shares of the Company's stock under its existing share repurchase plan. The
Company now has a share repurchase plan in place with authorization to
repurchase up to 24 million shares of the Company's stock. Under the plan,
the Company may, from time to time, purchase additional shares of its
common stock based on a number of factors, including market conditions, the
market price for the Company's common stock, anti-dilutive effect on
earnings, available cash and other factors as the Company deems
appropriate. As of the end of the second quarter of 2006, including the
prior share repurchases in 2003, 2005 and 2006, the Company had repurchased
approximately 12,331,000 shares, leaving up to approximately 11,669,000
shares authorized to be repurchased under the plan.
"The additional share repurchase authorization reflects our belief in
the long-term growth prospects for Gentex, and we believe that the cash
dividend remains an appropriate way to return cash to the Company's
shareholders given the current U.S. tax laws," said Gentex Chairman of the
Board and Chief Executive Officer Fred Bauer.
This news release contains 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, as amended, that are based on
management's belief, assumptions, current expectations, estimates and
projections about the global automotive industry, the economy, the impact
of stock option expenses on earnings, the ability to leverage fixed
manufacturing overhead costs, unit shipment growth rates and the Company
itself. Words like "anticipates," "believes," "confident," "estimates,"
"expects," "forecast," "likely," "plans," "projects," and "should," and
variations of such words and similar expressions identify forward-looking
statements. These statements do not guarantee future performance and
involve certain risks, uncertainties, and assumptions that are difficult to
predict with regard to timing, expense, likelihood and degree of
occurrence. These risks include, without limitation, employment and general
economic conditions, the pace of economic recovery in the U.S. and in
international markets, the pace of automotive production worldwide, the
types of products purchased by customers, competitive pricing pressures,
currency fluctuations, the financial strength of the Company's customers,
the Company's long-term growth prospects, the mix of products purchased by
customers, the ability to continue to make product innovations, the success
of newly introduced products (e.g. SmartBeam), and other risks identified
in the Company's filings with the Securities and Exchange Commission.
Therefore actual results and outcomes may materially differ from what is
expressed or forecasted. Furthermore, the Company undertakes no obligation
to update, amend, or clarify forward-looking statements, whether as a
result of new information, future events, or otherwise.
Founded in 1974, Gentex Corporation (Nasdaq Global Market: GNTX) is an
international company that provides high-quality products to the worldwide
automotive industry and North American fire protection market. Based in
Zeeland, Michigan, the Company develops, manufactures and markets interior
and exterior automatic-dimming automotive rearview mirrors that utilize
proprietary electrochromic technology to dim in proportion to the amount of
headlight glare from trailing vehicle headlamps. Many of the mirrors are
sold with advanced electronic features, and approximately 95 percent of the
Company's revenues are derived from the sales of auto-dimming mirrors to
nearly every major automaker in the world.
SOURCE Gentex Corporation
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Related links:
http://www.gentex.com
CONTACT:
Connie Hamblin of Gentex Corporation,
+1-616-772-1800
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