CARLSTADT, N.J., Nov. 14, 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 third quarter
ended September 30, 2012.
Third Quarter 2012 Results
Net sales for the third quarter were $58.8
million, an 11.7% decrease from $66.6
million in the same period last year. The decrease in
sales was primarily the result of lower domestic China sales compared to the prior year
period. In the third quarter, domestic China sales accounted for $51.6 million, or 87.8% of net sales, compared to
$59.1 million, which also represented
88.7% of net sales in the same period last year. Net sales outside
of China for the quarter were
$7.2 million, or 12.2% of net sales
compared to $7.5 million, or 11.3% 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
$55.2 million, or 93.9% of net sales
in the third quarter, while wind energy products (cast resin
transformers and VPI products for wind power applications)
represented $3.6 million, or 6.1% of
net sales during this quarter.
Gross profit in the third quarter decreased 21.4% year over year
to $19.6 million from $24.9 million in the same period last year.
Third quarter 2012 gross profit margin was 33.3%, compared to 37.4%
in the prior year period, and 30.8% in the 2012 second quarter.
Gross margin decreased in the third quarter mainly due to lower
gross margin on recently introduced products.
Selling and administrative expenses in the third quarter were
$14.8 million, or 25.2% of net sales,
compared to $16.5 million, or 24.8%
of net sales in the same period last year. Selling
expenses decreased in the third quarter due to lower domestic
product sales.
Operating income for the third quarter decreased 43.2% to
$4.8 million, or 8.1% of net sales,
from $8.4 million, or 12.7% of net
sales, in the same period last year.
Net income for the third quarter decreased 53.7% to $3.9 million, or $0.23 per diluted share, from $8.4 million, or $0.51 per diluted share, in the same period last
year. Third quarter net income as a percentage of net sales
was 6.6% compared to 12.6% in the same period last year.
Mr. Zhiyuan Li, Chief Executive
Officer of Jinpan, commented, "For the first nine months of 2012,
while our top line was in line with the prior year period, our
bottom line was lower mainly due to lower gross margin on sales
of gas insulated switchgears and certain types of VPI
products. We priced these recently introduced products aggressively
to penetrate the market. Despite a softer economic
environment in China, we were able
to expand our cast resin transformer sales volume by 3% in the
first nine months of 2012 compared to the same period last
year. We also took steps to improve efficiency and reduce
costs, including a reduction in headcount within our administrative
and manufacturing departments."
"Our Guilin facility is on schedule to complete its first phase
of construction by year end and commence production by the end of
the 2013 first quarter. As this new facility gradually ramps its
production, more production capacity is expected to come on line
throughout 2013 allowing us to capture a greater share of
China's market for standard cast
resin transformers."
"At the end of September, we had a backlog of approximately
$104 million, of which we expect over
41% of this backlog to be shipped in the fourth quarter. In
addition, we continue to receive meaningful orders in the fourth
quarter enabling us to meet our full year sales revenue
guidance. We have modified our bottom line full year guidance
to reflect pricing pressure associated with lower silicon steel
costs, the primary component of our cast resin transformers.
As we look to 2013, we believe the once-a-decade leadership change
at the national level can result in increased spending on domestic
infrastructure projects positioning us well for new order flow in
our domestic business, particularly in the second half of the next
year. We remain confident in our current and long-term
operating initiatives which can improve our future revenue and
profit growth."
Balance Sheet
As of September
30, 2012, the Company had $16.0
million in cash and cash equivalents, compared to
$24.2 million at December 31, 2011. The Company's accounts
receivable on September 30, 2012
totaled $132.8 million, compared to
$110.4 million at December 31, 2011. Notes payable in the
2012 third quarter decreased to $10.2
million compared to $13.6
million on December 31,
2011. Total bank loans outstanding at September 30, 2012 were $33.9 million, compared to $23.0 million at December
31, 2011 and $45.3 million at
June 30, 2012.
Financial Outlook
For the full year 2012, the Company
currently anticipates net sales of $208-$219
million, a decrease of 0% to 5% compared to 2011, net income
of $13.2-$14.3 million, a decrease of
40% to 45% compared to 2011, and gross profit margin of
approximately 33% to 34% of net sales.
Conference Call Information
Jinpan's management will
host an earnings conference call on November
14th, 2012 at 8:30
a.m. U.S. Eastern Time. Listeners may access the call
by dialing #1-913-312-0686. A webcast will also be available
via www.viavid.net. A replay of the call will be available
through November 28th,
2012. Listeners may access the replay by dialing
#1-858-384-5517, access code: 4077527.
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.
Jinpan
International Limited and Subsidiaries Consolidated
Statements of Income (unaudited) For the Three and Nine
Month Periods Ended September 30, 2012
|
|
Three
months
ended
Sept
30
|
Three
months
ended
Sept
30
|
Nine
months
ended
Sept
30
|
Nine
months
ended
Sept
30
|
|
|
2012
|
2011
|
2012
|
2011
|
(In
thousands, except per share data)
|
|
US$
|
US$
|
US$
|
US$
|
|
|
|
|
|
|
Net
sales
|
|
58,832
|
66,641
|
157,115
|
154,793
|
Cost of
Goods Sold
|
|
(39,225)
|
(41,698)
|
(104,635)
|
(96,663)
|
Gross
Margin
|
|
19,607
|
24,943
|
52,480
|
58,130
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
Selling and administrative
|
|
(14,819)
|
(16,508)
|
(39,922)
|
(38,074)
|
Operating
income
|
|
4,788
|
8,435
|
12,558
|
20,056
|
|
|
|
|
|
|
Interest
Expenses
|
|
(355)
|
(418)
|
(1,441)
|
(865)
|
Other
Income
|
|
357
|
1,485
|
936
|
1,996
|
Income
before income taxes
|
|
4,790
|
9,502
|
12,053
|
21,187
|
|
|
|
|
|
|
Income
taxes
|
|
(886)
|
(1,072)
|
(1,827)
|
(2,739)
|
Net
income
|
|
3,904
|
8,430
|
10,226
|
18,448
|
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
-Basic
|
|
US$0.24
|
US$0.52
|
US$0.63
|
US$1.14
|
|
|
|
|
|
|
-Diluted
|
|
US$0.23
|
US$0.51
|
US$0.61
|
US$1.12
|
|
|
|
|
|
|
Weighted
average number of shares
|
|
|
|
|
|
|
|
|
|
|
|
-Basic
|
|
16,168,251
|
16,163,696
|
16,168,251
|
16,163,696
|
|
|
|
|
|
|
-Diluted
|
|
16,709,705
|
16,452,359
|
16,718,793
|
16,426,253
|
|
|
|
|
|
|
|
|
|
|
|
|
Jinpan
International Limited and Subsidiaries Consolidated
Balance Sheets
|
|
|
Unaudited
|
|
Audited
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
2012
|
|
2011
|
|
|
|
US$
|
|
US$
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
15,955
|
|
24,218
|
|
Restricted cash
|
|
854
|
|
322
|
|
Notes receivable
|
|
10,243
|
|
19,114
|
|
Accounts
receivable, net
|
|
132,754
|
|
110,382
|
Inventories
|
|
37,094
|
|
36,675
|
|
Prepaid expenses
|
|
11,325
|
|
13,251
|
|
Other receivables
|
|
7,866
|
|
3,878
|
|
|
|
|
|
|
|
Total
current assets
|
|
216,091
|
|
207,840
|
|
|
|
|
|
|
|
Property,
plant and equipment, net
|
|
39,408
|
|
37,102
|
|
|
|
|
|
|
|
Construction in progress
|
|
17,018
|
|
2,406
|
|
|
|
|
|
|
|
Land use
right
|
|
15,200
|
|
15,523
|
|
Intangible
asset-Goodwill
|
|
13,328
|
|
13,371
|
|
Other
assets
|
|
70
|
|
76
|
|
Deferred
tax assets
|
|
1,295
|
|
1,044
|
|
|
|
|
|
|
|
Total
assets
|
|
302,410
|
|
277,362
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Short term bank loans
|
|
15,008
|
|
21,426
|
|
Accounts payable
|
|
26,983
|
|
22,833
|
|
Notes Payable
|
|
10,276
|
|
13,611
|
|
Tax Payable
|
|
2,000
|
|
2,335
|
|
Advance from customers
|
|
15,912
|
|
12,642
|
|
Other Payable
|
|
22,008
|
|
22,072
|
|
|
|
|
|
|
|
Total
current liabilities
|
|
92,187
|
|
94,919
|
|
|
|
|
|
|
|
Long
TermLoan
|
|
18,903
|
|
1,550
|
|
Deferred
Income
|
|
2,859
|
|
-
|
|
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
2012
and 2011
|
|
-
|
|
-
|
|
Additional paid-in capital
|
|
37,179
|
|
36,114
|
|
Reserves
|
|
12,023
|
|
12,023
|
|
Retained earnings
|
|
121,010
|
|
111,915
|
|
Accumulated other comprehensive income
|
|
18,633
|
|
20,392
|
|
|
|
188,919
|
|
181,372
|
|
Less: Treasury shares at cost, common stock-215,306 in 2012
and 227,306 in 2011
|
|
(458)
|
|
(479)
|
|
Total
shareholders' equity
|
|
188,461
|
|
180,893
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity
|
|
302,410
|
|
277,362
|
|
Jinpan
International Limited and Subsidiaries Consolidated
Statements of Cash Flows For the Nine Months Ended
September 30, 2012 (Unaudited)
|
|
Nine
months ended September 30
|
Nine
months ended September 30
|
|
2012
|
2011
|
Operating
activities
|
|
|
Net income
|
10,226
|
18,448
|
Adjustments to reconcile net income to
|
|
|
net cash provided by/(used in) operating
activities:
|
|
|
Depreciation
|
3,822
|
3,153
|
Provision for Doubtful Debt
|
1,604
|
696
|
Loss/(Gain) on disposal of fixed assets
|
(4)
|
12
|
Deferred Income Tax
|
(255)
|
(58)
|
Deferred Income
|
2,859
|
-
|
Stock-based compensation
cost
|
211
|
184
|
Changes in operating assets and
liabilities
|
|
|
Restricted cash
|
(534)
|
1,036
|
Accounts receivable
|
(24,325)
|
(
31,475)
|
Notes receivable
|
8,811
|
(4,539)
|
Inventories
|
(536)
|
(13,750)
|
Prepaid expenses
|
1,885
|
(1,784)
|
Other receivables
|
(3,994)
|
166
|
Accounts payable
|
4,223
|
8,160
|
Notes Payable
|
(3,292)
|
(17,773)
|
Income tax
|
(328)
|
909
|
Advance from customers
|
3,310
|
8,588
|
Other liabilities
|
(58)
|
5,717
|
Net cash
provided by/(used in) operating activities
|
3,625
|
(22,310)
|
Investing
activities
|
|
|
Purchases of property, plant and equipment
|
(6,270)
|
(4,257)
|
Proceeds from sales of property, plant and
equipment
|
28
|
31
|
Payment for construction in progress
|
(14,619)
|
-
|
Long Term Prepaid
Lease
|
273
|
243
|
Net cash
provided by (used in) investing activities
|
(20,588)
|
(3,983)
|
Financing
activities
|
|
|
Proceeds from bank loan
|
46,890
|
27,555
|
Repayment of bank loan
|
(35,881)
|
(13,627)
|
Proceeds from exercise of stock options
|
22
|
-
|
Dividends paid
|
(2,264)
|
(2,264)
|
Net cash
provided by/(used in) financing activities
|
8,767
|
11,664
|
Effect of
exchange rate changes on cash
|
(67)
|
829
|
Net
increase/(decrease) in cash and cash equivalents
|
(8,263)
|
(13,800)
|
Cash and
cash equivalents at beginning of year
|
24,218
|
27,527
|
Cash and
cash equivalents at end of the period
|
15,955
|
13,727
|
|
|
|
Interest
paid
|
1,418
|
879
|
Income
taxes paid
|
2,397
|
1,758
|
SOURCE Jinpan International Ltd.