CARLSTADT, N.J., May 11, 2012 /PRNewswire/ -- Jinpan
International Ltd (Nasdaq: JST), a leading designer, manufacturer,
and distributor of cast resin transformers, today announced the
unaudited consolidated financial results for the first quarter
ended March 31, 2012.
First Quarter 2012 Results
Net sales for the first quarter were $42.8 million, a 43.1% increase from $29.9 million in the same period last year.
The increase in sales was primarily the result of increased
international and domestic transformer sales. In the first
quarter, domestic sales accounted for $33.8
million, or 79.0% of net sales, compared to $27.8 million, which also represented 93.0% of
net sales in the same period last year. Net sales outside of
China for the quarter were
$9.0 million, or 21% of net sales
compared to $2.1 million, or 7.0% of
net sales for the same period last year.
The sales of cast resin transformers (excluding those for wind
power applications), switchgears and unit substations represented
$31.9 million, or 74.5% of net sales
in the first quarter, while wind energy products represented
$10.9 million, or 25.5% of net sales
during this quarter.
Gross profit in the first quarter increased 43.9% year over year
to $15.8 million from $11.0 million in the same period last year.
First quarter 2012 gross profit margin was 36.9%, compared to 36.7%
in the prior year period, and 34.6% in the 2011 fourth quarter.
Selling and administrative expenses in the first quarter were
$10.9 million, or 25.5% of net sales,
compared to $7.8 million, or 26.0% of
net sales in the same period last year. Selling
expenses increased in the first quarter as a result of increased
sales. Administrative expenses increased due to higher Research and
Development expenses and increased salary expenses resulting from
the Company's implementation of its expansion plans.
Operating income for the first quarter increased 52.6% to
$4.8 million, or 11.3% of net sales,
from $3.2 million, or 10.6% of net
sales, in the same period last year. Net income for the first
quarter increased 44.6% to $4.0
million, or $0.24 per diluted
share, from $2.7 million, or
$0.17 per diluted share, in the same
period last year. First quarter net income as a percentage of
net sales was 9.3% compared to 9.2% in the same period last
year.
Mr. Zhiyuan Li, Chief Executive
Officer of Jinpan, commented, "We experienced strong results in the
first quarter of 2012 fueled by domestic and export sales
growth. Our international business exceeded our expectations
driven by a large number of customized transformers for wind
applications. Sales in our domestic business increased 21.6%
from the prior year period and are expected to continue to grow in
the coming quarters.
While the design and development of customized transformers
remains a major priority for Jinpan, the domestic market for
standardized transformers also represents a very large opportunity
for our business. Our expanded operating capabilities will
enable us to have the capacity necessary to compete on quality and
price with our competitors in China in the standard transformer
market. With our expanding capacity, we now have the ability
to go out and make a more aggressive push in this market resulting
in greater sales and profits over time.
We expect sales growth to continue in the remaining quarters of
the year. Our customer base has expanded by approximately 20% over
the past year. At the end of March, our domestic China sales order backlog was $112 million compared to $102 million at the end of December 2011.
Jinpan has become a more widely recognized brand name within the
cast resin transformer industry, which enables us to participate in
a greater number of industrial projects sponsored by private
businesses and state-owned enterprises. With quality
products, competitive pricing, efficient and growing manufacturing
platform, and an expanding customer base, we believe that Jinpan
will continue its record of sales and net income growth in
2012."
Balance Sheet
As of March 31, 2012, the Company
had $12.6 million in cash and cash
equivalents, compared to $24.2
million at December 31, 2011.
The Company's accounts receivable on March
31, 2012 totaled $114.4
million, compared to $110.4
million at December 31, 2011.
Notes payable in the 2012 first quarter decreased to
$2.2 million compared to $13.6 million at the end of December 31, 2011. Total bank loans
outstanding at March 31, 2012
increased to $31.6 million as
compared to $23.0 million at
December 31, 2011.
Financial Outlook
For the full year 2012, the Company currently anticipates
net sales growth of 20-25% to $262-$273
million, gross profit margin of 33%-35%, and net income
growth of approximately 17-22% to $27.8-$29.0 million.
Conference Call Information
Jinpan's management will host an earnings conference call
on May 11, 2012 at 8:30 a.m. U.S. Eastern Time. Listeners may
access the call by dialing #1-913-312-0978. A webcast will
also be available via www.viavid.net. A replay of the call
will be available through May 25,
2012. Listeners may access the replay by dialing
#1-858-384-5517, access code: 4686071.
About Jinpan International Ltd
Jinpan International Ltd. (NASDAQ: JST) designs, manufactures,
and markets cast resin transformers for power distribution and wind
energy products. Jinpan's cast resin transformers allow high
voltage transmissions of electricity to be distributed to various
locations in lower, more usable voltages. The Company has obtained
ISO9001 and ISO14001 certifications for its cast resin
transformers. Its principal executive offices are located in
Hainan, China and its United States office is based in Carlstadt, 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, and 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 are
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, 2011 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.
(Financial Statements on Following Page)
Jinpan
International Limited and Subsidiaries
Consolidated Statements of Income
(unaudited)
|
|
|
Three
months
ended
March
31
|
|
|
2012
|
|
2011
|
(In
thousands, except per share data)
|
|
US$
|
|
US$
|
|
|
|
|
|
Net
sales
|
|
42,755
|
|
29,882
|
Cost of
Goods Sold
|
|
(26,993)
|
|
(18,925)
|
Gross
Margin
|
|
15,762
|
|
10,957
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
Selling and administrative
|
|
(10,915)
|
|
(7,782)
|
Operating
income
|
|
4,847
|
|
3,175
|
|
|
|
|
|
Interest
Expenses
|
|
(459)
|
|
(175)
|
Other
Income
|
|
215
|
|
283
|
Income
before income taxes
|
|
4,603
|
|
3,283
|
|
|
|
|
|
Income
taxes
|
|
(638)
|
|
(542)
|
Net income
after taxes
|
|
3,965
|
|
2,741
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
|
|
|
|
|
-Basic
|
|
US$
0.25
|
|
US$0.17
|
|
|
|
|
|
-Diluted
|
|
US$
0.24
|
|
US$0.17
|
|
|
|
|
|
Weighted
average number of shares
|
|
|
|
|
|
|
|
|
|
-Basic
|
|
16,163,696
|
|
16,163,696
|
|
|
|
|
|
-Diluted
|
|
16,549,619
|
|
16,427,141
|
|
|
|
|
|
|
|
|
|
|
Jinpan
International Limited and Subsidiaries
Consolidated Balance Sheets (unaudited)
|
|
|
March
31,
|
|
December
31,
|
|
|
|
2012
|
|
2011
|
|
|
|
US$
|
|
US$
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
12,582
|
|
24,218
|
|
Restricted Cash
|
|
20
|
|
322
|
|
Notes receivable
|
|
9,878
|
|
19,114
|
|
Accounts receivable, net
|
|
114,445
|
|
110,382
|
|
Inventories, net
|
|
44,184
|
|
36,675
|
|
Prepaid expenses
|
|
11,930
|
|
13,251
|
|
Other receivables
|
|
5,552
|
|
3,878
|
|
|
|
|
|
|
|
Total
current assets
|
|
198,591
|
|
207,840
|
|
|
|
|
|
|
|
Property,
plant and equipment, net
|
|
40,135
|
|
37,102
|
|
|
|
|
|
|
|
Construction in progress
|
|
3,494
|
|
2,406
|
|
|
|
|
|
|
|
Land use
right
|
|
15,449
|
|
15,523
|
|
Intangible
asset-Goodwill
|
|
13,384
|
|
13,371
|
|
Other
assets
|
|
74
|
|
76
|
|
Deferred
tax assets
|
|
1,029
|
|
1,044
|
|
|
|
|
|
|
|
Total
assets
|
|
272,156
|
|
277,362
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Short term bank loans
|
|
30,097
|
|
21,426
|
|
Accounts payable
|
|
21,947
|
|
22,833
|
|
Notes Payable
|
|
2,178
|
|
13,611
|
|
Income tax
|
|
2,797
|
|
2,335
|
|
Advance from customers
|
|
13,823
|
|
12,642
|
|
Other Payable
|
|
15,919
|
|
22,072
|
|
|
|
|
|
|
|
Total
current liabilities
|
|
86,761
|
|
94,919
|
|
|
|
|
|
|
|
Long Term
Loan
|
|
1,537
|
|
1,550
|
|
Shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, US$0.0045 par value:
|
|
|
|
|
|
Authorized shares - 40,000,000
|
|
|
|
|
|
Issued and outstanding shares - 16,395,456 in 2012
and 2011
|
|
74
|
|
74
|
|
Common Stock, Warrants
|
|
|
|
854
|
|
Convertible preferred stock, US$0.0045 par
value:
|
|
|
|
|
|
Authorized shares – 2,000,000
|
|
|
|
|
|
Issued and outstanding shares – none in
20012
and 2011
|
|
-
|
|
-
|
|
Additional paid-in capital
|
|
36,980
|
|
36,114
|
|
Reserves
|
|
12,023
|
|
12,023
|
|
Retained earnings
|
|
114,748
|
|
111,915
|
|
Accumulated other comprehensive income
|
|
20,512
|
|
20,392
|
|
|
|
184,337
|
|
181,372
|
|
Less: Treasure shares at cost, common stock-227,036 in 2012
and 2011
|
|
(479)
|
|
(479)
|
|
Total
shareholders' equity
|
|
183,858
|
|
180,893
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity
|
|
272,156
|
|
277,362
|
|
Jinpan
International Ltd
|
Consolidated Statement of Cash
Flows
|
For the
Three Months Ended March 31, 2012
|
|
|
|
|
For the
Three Months Ended
March 31
|
|
2012
|
2011
|
|
US$
|
US$
|
|
|
( In
thousands)
|
|
|
|
Operating Activities
|
|
|
Net Income
|
3,965
|
2,741
|
Adjustments to
reconcile net income to
|
|
|
Net Cash provided by (used in ) operating activities:
|
|
|
Depreciation
|
1,183
|
1,025
|
Deferred Income Tax
|
16
|
(20)
|
Provision for doubtful debts
|
862
|
(99)
|
Loss/(gain) on disposal of fixed assets
|
(3)
|
-
|
Stock-based compensation Cost
|
11
|
61
|
Changes in operating
assets and liabilities
|
|
|
Restricted Cash
|
302
|
39
|
Accounts Receivable
|
(4,807)
|
(1,014)
|
Notes Receivable
|
9,252
|
(3,471)
|
Inventories
|
(7,466)
|
(8,694)
|
Prepaid Expenses
|
1,334
|
(4,170)
|
Other Receivable
|
(1,667)
|
(572)
|
Accounts Payable
|
(909)
|
4,216
|
Notes Payable
|
(11,441)
|
(3,278)
|
Income Tax
|
459
|
142
|
Advance From customers
|
1,167
|
2,532
|
Other liabilities
|
(6,243)
|
8,324
|
Net Cash
provided by ( used in ) operating activities
|
(13,985)
|
(2,238)
|
Investing activities
|
|
|
Purchases of property, plant
and equipment
|
(4,200)
|
(941)
|
Proceeds from sales of
property, plant and equipment
|
27
|
(240)
|
Payment for construction in
progress
|
(1,084)
|
-
|
L/T Prepaid Lease
|
90
|
80
|
Net Cash
provided by ( used in ) investing activities
|
(5,167)
|
(1,101)
|
Financing activities
|
|
|
Proceeds from bank
loan
|
11,820
|
1,925
|
Repayment of bank
loan
|
(3,189)
|
(28)
|
Dividend paid
|
(1,132)
|
(1,132)
|
Net Cash
provided by ( used in ) financing activities
|
7,499
|
765
|
Effect of
exchange rate changes on cash
|
17
|
261
|
Net
increase/(decrease) in cash and cash equivalents
|
(11,636)
|
(2,313)
|
Cash and
Cash equivalents at beginning of year
|
24,218
|
27,527
|
Cash and
Cash equivalents at end of year
|
12,582
|
25,214
|
|
|
|
Interest
paid
|
340
|
199
|
Income Tax
paid
|
164
|
419
|
SOURCE Jinpan International Ltd