-- 4Q08 Revenue Increases 7% to $44.9 Million Compared to 4Q07 --
-- Full Year Revenue Increases 28.7% to $154.0 Million - -- Full
Year Net Income Increases 20.5% to $19.8 Million - ENGLEWOOD
CLIFFS, N.J., March 30 /PRNewswire-FirstCall/ -- Jinpan
International Ltd (NASDAQ:JST), a leading designer, manufacturer
and distributor of cast resin transformers for voltage distribution
equipment, today announced consolidated financial results for the
fourth quarter and full year ended December 31, 2008. Highlights
for the 2008 Fourth Quarter Total sales for the fourth quarter were
$44.9 million, a 7% increase from $41.9 million over the same
period last year. Growth in total sales primarily resulted from an
increase in the sale of the Company's wind energy products, which
include the cast resin transformers and reactors for wind power
applications. In the fourth quarter, sales outside of China
increased 137% to $7.1 million, or 15.8% of total sales, compared
to $3.0 million, or 7% of total sales in the same period last year.
Growth in international sales is mostly due to the increase in the
Company's sales of wind energy products. Cast resin transformers
(excluding those for wind power applications), switch gears and
unit substations represented $38.8 million, or 86.6% of total sales
in the fourth quarter, while wind energy products represented $6.0
million, or 13.4% of total sales in the fourth quarter. Gross
profit in the fourth quarter was $13.5 million, a 13.5% decrease
from $15.7 million, in the same period last year. Fourth quarter
gross margin decreased to 30.2% compared to 37.4% in the same
period last year. The price of raw materials declined significantly
in the fourth quarter which put downward pressure on the market
price of transformers. Additionally, in the fourth quarter, the
Company's cost of sales continued to reflect the higher price of
materials procured prior to the price decline. The combination of
the downward pressure on the market price of transformers and cost
of sales that reflects higher cost of raw materials procured at the
end of third quarter primarily caused the decline in gross margin.
The Company expects lower materials prices to be reflected in its
cost of sales in the first quarter of 2009, which should have a
positive effect on gross margin. Selling, general and
administrative expenses in the fourth quarter were $8.0 million, or
17.8% of total sales, versus $8.8 million, or 21% of total sales in
the same period last year. SG&A decreased primarily due to
strict cost controls implemented within key operating units.
Operating income increased to $5.5 million, or 12.4% of total
sales, compared to $6.8 million, or 16.3% of total sales in the
same period last year. Net income for the fourth quarter was $6.2
million, or $0.75 per diluted share, versus $6.6 million, or $0.81
per diluted share, in the same period last year. Fourth quarter net
income as a percentage of revenue was 13.8% as compared to 15.7% in
the same period last year. Fiscal 2008 Results For the full year,
total sales increased 28.7% to $154.0 million compared to $119.6
million in the prior year. Gross profit for the full year increased
to $48.9 million compared to $41.6 million in the prior year. Gross
margin for the full year decreased 3.1% to 31.7% from 34.8% in the
prior year. Selling, general and administrative expenses for the
full year were $26.2 million, or 17.0% of total sales, compared to
$23.0 million, or 19.2% of sales in the prior year. Operating
profit for the full year increased 21.4% to $22.7 million compared
to $18.7 million in the prior year. Full year operating margin
decreased to 14.7% compared to 15.6% in the prior year. Net income
for the full year increased 20.5% to $19.8 million, or $2.42 per
diluted share, compared to $16.4 million, or $2.03 per diluted
share in the prior year. Mr. Zhiyuan Li, Chief Executive Officer of
Jinpan commented, "2008 was a solid year for Jinpan and we were
pleased with our overall financial results. Our revenue growth in
the fourth quarter moderated compared to prior quarters as the
decline in raw material prices prompted some of our customers to
pare back or delay product orders. We also implemented a more
conservative customer credit policy due to the global financial
crisis, which impacted the strength of our revenue growth. We
experienced a sharp decline in raw materials prices in the fourth
quarter, but do not expect margins to improve until the first
quarter of 2009 as the lower materials prices are reflected in our
cost of sales. In spite of the global economic slowdown, we believe
our relationships with our top customers remain stable and that our
products will continue to gain wider acceptance among major
electrical equipment original equipment manufacturers ("OEMs") in
China and around the world. "We were pleased to see steady
improvement to our balance sheet in 2008. We finished the year with
$15.0 million in cash even after taking into account an $18.5
million increase in fixed asset expenditures associated with our
Wuhan and Shanghai manufacturing facilities. We also managed to
reduce our short-term bank loans by approximately $12.0 million
since the third quarter. "Our accounts receivables increased
largely due to strong international sales. We also implemented new
credit policies that improved the quality of our accounts
receivables as evidenced by our lower bad debt reserves. We
continue to increase our cash flow from operations and believe that
the new policies implemented for inventories and accounts
receivable will benefit our operating cash flow. Overall, our
financial structure at the end of 2008 is much improved over the
prior year despite substantial growth in the size and structure of
our operations." 2009 Financial Outlook For the full year 2009, the
Company currently anticipates revenues of approximately $176
million to $182 million, a 14% to 18% increase over 2008 sales of
$154 million. The Company anticipates net income of approximately
$22.5 million to $23.3 million, a 14% to 18% increase over 2008 net
income of $19.8 million. The Company anticipates diluted earning
per share for 2009 to be $2.75 to $2.85 per share. Mr. Li
continued, "We are encouraged by our continued success. We are also
aware of the challenges facing us in the current economic
environment. Thus, we are taking a more cautious approach. Our
growth plan for 2009 continues to focus on penetrating the power
generation equipment market with our high-quality transformer and
wind energy products. We believe that 2009 will be a solid year for
Jinpan as we continue to meet the needs of our customers, which
includes OEMs, electric utilities, industries, and commercial
property developers. Our Wuhan facility is fully operational and we
expect to operate the Wuhan facility at full capacity by the end of
2009. We are focused on product customization at competitive prices
and expansion of international sales. Global demand for efficient,
reliable, customized power generation equipment continues to be
robust and Jinpan is emerging as a major player in this high growth
area. We are optimistic that Jinpan's strong and flexible balance
sheet, innovative products and persistent work ethic will continue
to drive our company forward to achieve even greater success."
Conference Call Information Jinpan's management will host an
earnings conference call today, March 30, 2009 at 8:30 a.m. U.S.
Eastern Standard Time. Listeners may access the call by dialing
1-913-981-5595. A webcast will also be available via the Company's
website at http://www.jstusa.net/. A replay of the call will be
available through April 13, 2009. Listeners may access the replay
by dialing 1-719-457-0820, access code: 4867406. About Jinpan
International Ltd Jinpan International Ltd. (NASDAQ:JST) designs,
manufactures and distributes cast resin transformers for voltage
distribution equipment in China and other countries around the
world. Jinpan's cast resin transformers allow high voltage
transmissions of electricity to be distributed to various locations
at lower, more usable voltage levels. The Company has obtained
ISO9001 and ISO1401 certification of its cast resin transformers.
Its principal executive offices are located in Hainan, China and
its U.S. headquarters is based in Englewood Cliffs, New Jersey.
Safe Harbor Provision This press release contains forward-looking
statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on management's current
expectations and observations and involve known and unknown risks,
uncertainties or other factors not under the Company's control,
which may cause actual results, performance or achievements of the
company to be materially different from the results, performance or
other expectations implied by these forward-looking statements.
These factors include, but are not limited to, the following: --
our ability to successfully implement our business strategy; -- the
impact of existing and new competitors in the markets in which we
compete, including competitors that may offer less expensive
products and services, more desirable or innovative products or
technological substitutes, or have more extensive resources or
better financing; -- the effects of rapid technological changes and
vigorous competition in the markets in which we operate; --
uncertainties about the future growth in electricity consumption
and infrastructure development in the markets in which we operate;
-- uncertainties about the degree of growth in the number of
consumers in the markets in which we operate using mobile personal
communications services and the growth in the population in those
areas; -- other factors or trends affecting the industry generally
and our financial condition in particular; -- the effects of the
higher degree of regulation in the markets in which we operate; --
general economic and political conditions in the countries in which
we operate or other countries which have an impact on our business
activities or investments; -- the monetary and interest rate
policies of the countries in which we operate; -- changes in
competition and the pricing environments in the countries in which
we operate; -- exchange rates; and -- other factors listed from
time to time in our filings with the Securities and Exchange
Commission, including, without limitation, our Annual Report on
Form 20-F for the period ended December 31, 2007 and our subsequent
reports on Form 6-K. Except as required by law, we are not under
any obligation, and expressly disclaim any obligation, to update or
alter any forward-looking statements, whether as a result of new
information, future events or otherwise. Jinpan International
Limited and Subsidiaries Consolidated Statements of Income
(unaudited) For the Three and Twelve Month Periods Ended December
31, 2008 Three months ended Twelve months ended Dec 31, Dec 31,
2008 2007 2008 2007 --------------------------------------------
(In thousands, except per US$ US$ US$ US$ share data) Net sales
$44,853 $41,868 $153,979 $119,623 Cost of Goods Sold (31,315)
(26,211) (105,104) (77,988)
-------------------------------------------- Gross Margin 13,538
15,657 48,875 41,635 Operating Expenses Selling and administrative
(7,989) (8,813) (26,217) (22,966)
-------------------------------------------- Operating income 5,549
6,844 22,658 18,669 Interest Expenses (274) (23) (1,195) (465)
Other Income 1,103 63 1,659 414
-------------------------------------------- Income before income
taxes 6,378 6,884 23,122 18,618 Income taxes (207) (316) (3,363)
(2,226) Income before minority
-------------------------------------------- interest 6,171 6,568
19,759 16,392 Minority Interest - - - -
-------------------------------------------- Net income $6,171
$6,568 $19,759 $16,392 ============================================
Earnings per share -Basic $0.77 $0.82 $2.47 $2.05
============================================ -Diluted $0.75 $0.81
$2.42 $2.03 ============================================ Weighted
average number of shares -Basic 7,986,828 7,976,755 7,986,828
7,976,755 -Diluted 8,132,346 8,090,630 8,132,346 8,090,630 Jinpan
International Limited and Subsidiaries Consolidated Balance Sheets
(unaudited) As of December 31, 2008 Dec 31 ------ 2008 2007 ----
---- US$ US$ Assets Current assets: Cash and cash equivalents
$15,393 $15,705 Restricted Cash 1,331 1,417 Investment available
for sales 15 193 Accounts receivable, net 58,793 43,026 Inventories
31,868 25,743 Prepaid expenses 4,713 7,943 Other receivables 7,317
2,969 ------ ------ Total current assets 119,430 96,996 Property,
plant and equipment, net 18,213 9,031 Construction in progress
6,055 2,889 Intangible assets 12,348 11,549 Prepaid Land used Right
6,098 - Deferred tax assets 301 807 ------ ------ Total assets
$162,445 $121,272 Liabilities and Shareholders' Equity Current
liabilities: Short term bank loans $11,726 $9,874 Accounts payable
11,300 6,372 Income tax 3,671 2,353 Advance from customers 7,828
4,638 Other Payable 20,733 15,292 ------ ------ Total current
liabilities $55,258 $38,529 Shareholders' equity: Common stock,
US$0.009 par value: Authorized shares - 20,000,000 Issued and
outstanding shares - 8,195,434 in 2008 and 8,186,617 in 2007 $73
$73 Common Stock, Warrants 854 854 Convertible preferred stock,
US$0.009 par value: Authorized shares - 1,000,000 Issued and
outstanding shares - 3,055 in 2008 6,111 2007 1 1 Additional
paid-in capital 34,035 33,938 Reserves 3,905 3,905 Retained
earnings 60,266 39,659 Accumulated other comprehensive income 8,842
5,102 ------ ------ 107,976 83,532 Less: Treasury shares at cost,
common stock - 206,470 in 2008 and 206,470 in 2007 (789) (789)
------ ------ Total shareholders' equity $107,187 $82,743 ------
------ Total liabilities and shareholders' equity $162,445 $121,272
====== ====== Jinpan International Limited and Subsidiaries
Consolidated Statements of Cash Flows For the Twelve Months Ended
December 31, 2008(Unaudited) Twelve months ended Dec 31 2008 2007
---- ---- Operating activities Net income 19,759 16,392 Adjustments
to reconcile net income to net cash provided by (used in) operating
activities: Depreciation 1,661 1,273 Provision for Doubtful Debt
(484) 811 Loss (Gain) on disposal of fixed assets 10 49 Deferred
Income Tax 543 (675) Stock-based compensation cost 93 209
Loss(Gain) from sales of available-for-sales 2 securities Changes
in operating assets and liabilities Restricted Cash 178 (34)
Accounts receivable (11,879) (16,038) Notes receivable (3,061)
(564) Inventories (4,198) (5,645) Prepaid expenses 3,654 (2,877)
Other receivables (943) (558) Accounts payable 4,337 (237) Income
tax 1,117 1,666 Advance from customers 2,773 697 Other liabilities
4,236 5,129 ------ ------ Net cash provided by (used in) operating
activities 17,798 (402) Investing activities Purchases of property,
plant and equipment (9,944) (5,777) Proceeds from sales of
property, plant and equipment 2 29 Payment for construction in
progress (2,868) (1,015) Purchase of available-for-sales securities
- (489) Proceeds from sales of available-for-sales securities 183 -
Land used right (5,894) - Acquired minority interest - (12,624)
------ ------ Net cash provided by (used in) investing activities
(18,521) (19,387) Financing activities Notes Payable - (1,098)
Proceeds from bank loan 41,698 13,961 Repayment of bank loan
(40,569) (10,616) Issued shares from treasury stock 28 Proceeds
from exercise of stock options - 19 Decrease in Dividend payable to
minority shareholders - 362 Dividends paid (1,940) (1,931) ------
------ Net cash provided by/(used in) financing activities (811)
725 Effect of exchange rate changes on cash 1,222 1,944 ------
------ Net increase/(decrease) in cash and cash equivalents (312)
(17,120) Cash and cash equivalents at beginning of year 15,705
32,825 ------ ------ Cash and cash equivalents at end of the period
15,393 15,705 ====== ====== Interest paid 1,204 274 Income taxes
paid 108 1,282 DATASOURCE: Jinpan International Ltd. CONTACT: Mark
Du, Chief Financial Officer of Jinpan International Ltd.,
+1-201-227-0680; China: William Zima, +86-10-6599-7969, U.S.: Brian
M. Prenoveau, CFA, +1-203-682-8200, both of ICR, Inc., for Jinpan
International Ltd. Web Site: http://www.jstusa.net/
Copyright
Jinpan International Limited (NASDAQ:JST)
Historical Stock Chart
From Aug 2024 to Sep 2024
Jinpan International Limited (NASDAQ:JST)
Historical Stock Chart
From Sep 2023 to Sep 2024