Gentex Corp (NASDAQ:GNTX) Q2 2019 Earnings Conference Call - Final Transcript
Jul 19, 2019 • 09:30 am ET
Steven R. Downing
repurchases. In the first half of 2019, the Company has repurchased approximately 7.8 million shares of its common stock at an average price of $21.30 per share, for a total of approximately $166.1 million of share repurchases. As of June 30, 2019, the Company has approximately 26 million shares remaining available for repurchase pursuant to the previously announced share repurchase plan. The Company intends to continue to repurchase additional shares of its common stock in the future in support of the previously disclosed capital allocation strategy, but share repurchases may vary from time to time and will continue to take into account macroeconomic issues, market trends, and other factors that the Company deems appropriate.
I will now hand the call over to Kevin for the second quarter financial details.
Kevin C. Nash
Thank you, Steve. Auto-dimming mirror unit shipments increased 2% in the second quarter of 2019 when compared with the second quarter of 2018, primarily driven by a 7% increase in exterior auto-dimming mirror unit shipments, which was highlighted by a 39% increase in North American exterior auto-dimming mirror unit shipments. Automotive net sales in the second quarter of 2019 increased 3% to $456.6 million compared with $444.2 million in the second quarter of 2018. The growth in automotive sales was driven primarily by strength in Full Display Mirror and exterior auto-dimming mirror unit shipments. These product growth areas helped offset annual customer price reductions and product specific revenue headwinds. Other net sales in the second quarter of 2019 were $12.1 million, an increase of 13% compared to $10.8 million in the second quarter of 2018 on increased dimmable aircraft window shipments and increased shipments of certain fire protection products.
Now for a balance sheet update. The following items represent a comparison versus December 31 of 2018, which are also included in today's press release. Cash and cash equivalents were $260.3 million compared to $217 million. The increase was primarily due to cash flow from operations, which was partially offset by share repurchases, dividend payments and capital expenditures. Short-term investments were $190.6 million, up from $169.4 million and long-term investments were $121.1 million compared to $138 million. Fluctuations in the two were driven by changes in fixed income investment maturities within the portfolio. Accounts receivable increased $12.9 million to $226.4 million, primarily due to the higher sales level compared to the fourth quarter of 2018, as well as the timing of sales within each of the quarters. Inventory as of June 30 declined slightly to $225.1 million, accounts payable decreased slightly to $90 million and other current liabilities increased $11.2 million to $87.5 million primarily as a result of increases in accrued taxes and accrued wages.
Now for some cash flow highlights. Cash flow from operations for the second quarter of 2019 was $137.4 million compared with $144.9 million during the second quarter of 2018. Year-to-date 2019 cash flow from operations was $273.5 million compared with $292.4 million in 2018. The differences in each of the periods were primarily due to changes