CARLSTADT, N.J., March 15, 2013 /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 fourth quarter and
full year ended December 31,
2012.
Fourth Quarter 2012 Results
Net sales for the fourth quarter were $53.4 million, a 16.7% decrease from $64.1 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 fourth quarter, domestic China sales accounted for $48.5 million, or 90.8% of net sales, compared to
$59.8 million, or 93.3% of net sales
in the same period last year. Net sales outside of China for the quarter were $4.9 million, or 9.2% of net sales compared to
$4.3 million, or 6.7% 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
$50.0 million, or 93.6% of net sales
in the fourth quarter, while wind energy products (cast resin
transformers and VPI products for wind power applications)
represented $3.4 million, or 6.4% of
net sales during this quarter.
Gross profit in the fourth quarter decreased 26.5% year over
year to $16.3 million from
$22.2 million in the same period last
year. Fourth quarter 2012 gross profit margin was 30.5%, compared
to 34.6% in the prior year period, and 33.3% in the third quarter
of 2012. Gross margin decreased in the fourth quarter mainly due to
reduced sales and lower average selling prices for its cast resin
transformers.
Selling and administrative expenses in the fourth quarter were
$14.0 million, or 26.2% of net sales,
compared to $16.2 million, or 25.3%
of net sales in the same period last year, and $14.8 million, or 25.2% in the third quarter of
2012. Selling expenses decreased in the fourth quarter due to lower
domestic product sales.
Operating income for the fourth quarter decreased 60.8% to
$2.3 million, or 4.4% of net sales
from $5.9 million, or 9.3% of net
sales, in the same period last year.
Other income for the fourth quarter of 2012 was $2.3 million compared to $0.4 million in the same quarter of 2011 due
primarily to recognized income from a government grant.
Net income for the fourth quarter decreased 29.1% to
$3.8 million, or $0.23 per diluted share, from $5.4 million, or $0.33 per diluted share, in the same period last
year. Fourth quarter net income, as a percentage of net sales, was
7.2% compared to 8.4% in the same period last year.
Mr. Zhiyuan Li, Chief Executive
Officer of Jinpan, commented, "We are pleased to have met our full
year revenue and net income forecasts. Business activity in the
fourth quarter moderated as expected largely due to slower domestic
and international order demand. While the economic environment
remained challenging in the fourth quarter, we are more encouraged
with our outlook for 2013 as we believe infrastructure spending in
China will accelerate in the
second half of the year positioning Jinpan for improved order flow
and market share gains. Internationally, we successfully passed the
qualification test for new wind product design at our largest OEM
customer in the fourth quarter, which was a major accomplishment.
We continue to explore opportunities to expand our international
customer base this year and expect international orders in 2013
will improve over last year."
"At the end of December 2012, our
backlog improved to $138 million, a
33% increase from the end of September
2012. Additionally, we completed the construction of our
Guilin facility in January and are currently calibrating our
manufacturing equipment and running production trials. We remain on
schedule to begin full scale production by the end of first quarter
this year."
"With an improving economic outlook in China along with Jinpan's expanding
manufacturing facilities, our growing customer base and leading
R&D capabilities, we expect improved customer order activity in
2013. We believe our domestic and international business are well
positioned for long-term success as we develop high quality
products and incorporate the latest technology to improve our
competitive advantage and expand our market position for cast resin
transformers."
Fiscal 2012 Results
For the full year, total sales decreased 3.8% to $210.5 million from $218.9
million in the prior year.
Gross profit in 2012 decreased 14.3% year-over-year to
$68.8 million from $80.3 million and gross profit margin decreased
by 401 bps year over year to 32.7% from 36.7%.
Selling and administrative expenses in 2012 were $53.9 million or 25.6% of net sales, compared to
$54.3 million, or 24.8% of net sales,
in the prior year.
Operating profit in 2012 decreased 42.7% to $14.9 million, or 7.1% of net sales, compared to
$26.0 million, or 11.9% of net sales,
in the prior year.
Net income in 2012 decreased 41.1% to $14.1 million, or $0.84 per diluted share, compared to $23.9 million, or $1.45 per diluted share, in the prior year.
Balance Sheet
As of December 31, 2012, the
Company had $18.5 million in cash and
cash equivalents, compared to $24.2
million at December 31, 2011.
The Company's accounts receivable on December 31, 2012 totaled $124.6 million, compared to $110.4 million at December
31, 2011. Notes payable in the fourth quarter of 2012
decreased to $6.0 million compared to
$13.6 million on December 31, 2011. Total bank loans outstanding
at December 31, 2012 were
$44.0 million, compared to
$23.0 million at December 31, 2011 and $33.9 million at September
30, 2012.
Financial Outlook
For the full year 2013, the Company currently anticipates net
sales of $231-$241 million, an
increase of 10% to 15% over 2012 and net income of $14.0-$14.5 million, which represents increase of
0% to 3 compared to 2012. Net profit is expected to trend at lower
levels in 2013 primarily due to fixed costs associated with the
Company's Guilin facility.
Conference Call Information
Jinpan's management will host an earnings conference call on
March 15th, 2013 at
8:30 a.m. U.S. Eastern Time.
Listeners may access the call by dialing #1-913-312-0825. A webcast
will also be available via www.viavid.net. A replay of the call
will be available through March
29th, 2013. Listeners may access the replay by
dialing #1-858-384-5517, access code: 7849569.
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 Twelve Month Periods Ended December 31,
2012
|
|
|
Three
months
ended
December
31
|
Three
months
ended
December
31
|
Twelve
months
ended
December
31
|
Twelve
months
ended
December
31
|
|
|
2012
|
2011
|
2012
|
2011
|
(In
thousands, except per share data)
|
|
US$
|
US$
|
US$
|
US$
|
|
|
|
|
|
|
Net
sales
|
|
53,422
|
64,076
|
210,537
|
218,869
|
Cost of
Goods Sold
|
|
(37,112)
|
(41,916)
|
(141,747)
|
(138,579)
|
Gross
Margin
|
|
16,310
|
22,160
|
68,790
|
80,290
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
Selling and administrative
|
|
(13,981)
|
(16,217)
|
(53,903)
|
(54,292)
|
Operating
income
|
|
2,329
|
5,943
|
14,887
|
25,998
|
|
|
|
|
|
|
Interest
Expenses
|
|
(325)
|
(387)
|
(1,766)
|
(1,252)
|
Other
Income
|
|
2,287
|
413
|
3,223
|
2,409
|
Income
before income taxes
|
|
4,291
|
5,969
|
16,344
|
27,155
|
|
|
|
|
|
|
Income
taxes
|
|
(456)
|
(563)
|
(2,282)
|
(3,301)
|
Net
income
|
|
3,835
|
5,406
|
14,062
|
23,854
|
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
-Basic
|
|
US$0.24
|
US$0.33
|
US$0.87
|
US$1.48
|
|
|
|
|
|
|
-Diluted
|
|
US$0.23
|
US$0.33
|
US$0.84
|
US$1.45
|
|
|
|
|
|
|
Weighted
average number of shares
|
|
|
|
|
|
|
|
|
|
|
|
-Basic
|
|
16,170,107
|
16,163,696
|
16,170,107
|
16,163,696
|
|
|
|
|
|
|
-Diluted
|
|
16,701,657
|
16,441,544
|
16,717,277
|
16,456,611
|
|
|
|
|
|
|
|
|
Jinpan
International Limited and Subsidiaries
|
Consolidated Balance Sheets
|
|
|
Unaudited
|
|
Audited
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2012
|
|
2011
|
|
|
|
US$
|
|
US$
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
18,510
|
|
24,218
|
|
|
|
|
|
|
|
Restricted cash
|
|
824
|
|
322
|
|
Short Term Investment
|
|
11,137
|
|
-
|
|
Notes
receivable
|
|
15,720
|
|
19,114
|
|
Accounts
receivable, net
|
|
124,608
|
|
110,382
|
|
Inventories
|
|
29,565
|
|
36,675
|
|
Prepaid expenses
|
|
2,535
|
|
13,251
|
|
Other receivables
|
|
5,900
|
|
3,878
|
|
|
|
|
|
|
|
Total
current assets
|
|
208,799
|
|
207,840
|
|
|
|
|
|
|
|
Property,
plant and equipment, net
|
|
41,360
|
|
37,102
|
|
|
|
|
|
|
|
Construction in progress
|
|
29,189
|
|
2,406
|
|
|
|
|
|
|
|
Land use
right
|
|
15,127
|
|
15,523
|
|
Intangible
asset-Goodwill
|
|
13,403
|
|
13,371
|
|
Other
assets
|
|
32
|
|
76
|
|
Deferred
tax assets
|
|
1,373
|
|
1,044
|
|
|
|
|
|
|
|
Total
assets
|
|
309,283
|
|
277,362
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Short term bank loans
|
|
17,347
|
|
21,426
|
|
Accounts payable
|
|
25,029
|
|
22,833
|
|
Notes Payable
|
|
6,008
|
|
13,611
|
|
Tax Payable
|
|
1,880
|
|
2,335
|
|
Advance from customers
|
|
13,624
|
|
12,642
|
|
Other Payable
|
|
22,844
|
|
22,072
|
|
|
|
|
|
|
|
Total
current liabilities
|
|
86,732
|
|
94,919
|
|
|
|
|
|
|
|
Long Term
Loan
|
|
26,612
|
|
1,550
|
|
Deferred
Income
|
|
3,080
|
|
-
|
|
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
|
|
37,374
|
|
36,114
|
|
Reserves
|
|
12,023
|
|
12,023
|
|
Retained earnings
|
|
123,065
|
|
111,915
|
|
Accumulated other comprehensive income
|
|
20,781
|
|
20,392
|
|
|
|
193,317
|
|
181,372
|
|
Less: Treasury shares at cost, common stock-215,306 in
2012 and 227,306 in 2011
|
|
(458)
|
|
(479)
|
|
Total
shareholders' equity
|
|
192,859
|
|
180,893
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity
|
|
309,283
|
|
277,362
|
|
|
|
Jinpan
International Limited and Subsidiaries
|
Consolidated Statements of Cash
Flows
|
For the
Twelve Months Ended December 31, 2012 (Unaudited)
|
|
|
Twelve
months
ended
Dec
31
|
Twelve
months
ended
Dec 31
|
|
2012
|
2011
|
Operating
activities
|
|
|
Net income
|
14,062
|
23,854
|
Adjustments to reconcile net income to
|
|
|
Net cash provided by/(used in) operating
activities:
|
|
|
Depreciation
|
5,246
|
4,301
|
Provision for Doubtful Debt
|
2,733
|
861
|
Provision for inventories
|
119
|
388
|
Loss/(Gain) on disposal of fixed assets
|
(4)
|
19
|
Deferred Income Tax
|
(326)
|
(139)
|
Stock-based compensation cost
|
406
|
371
|
Changes in operating assets and
liabilities
|
|
|
Restricted cash
|
(501)
|
793
|
Accounts receivable
|
(16,671)
|
(
31,063)
|
Notes receivable
|
3,437
|
(13,125)
|
Inventories
|
7,073
|
(5,883)
|
Prepaid expenses
|
10,743
|
16,739
|
Other receivables
|
(426)
|
(532)
|
Accounts payable
|
1,492
|
8,481
|
Notes Payable
|
(7,628)
|
(14,514)
|
Income tax
|
(461)
|
576
|
Value added tax
|
403
|
1,075
|
Advance from customers
|
951
|
6,875
|
Government Grant
|
(24)
|
774
|
Other liabilities
|
(1,307)
|
4,226
|
Net cash
provided by/(used in) operating activities
|
19,317
|
4,077
|
Investing
activities
|
|
|
Purchases of property, plant and equipment
|
(8,787)
|
(7,347)
|
Proceeds from sales of property, plant and
equipment
|
29
|
31
|
Payment for construction in progress
|
(26,751)
|
(372)
|
Long Term
Prepaid Lease
|
434
|
(5,275)
|
Increased
in short term investment
|
(11,123)
|
-
|
Payment for
investment in subsidiary
|
-
|
(1,785)
|
Receipt of
government grant for new plant construction
|
3,080
|
-
|
Decreased
in investment in Beijing Jinpan Huineng Co.
|
32
|
-
|
Net cash
provided by (used in) investing activities
|
(43,086)
|
(14,748)
|
Financing
activities
|
|
|
Proceeds from bank loan
|
63,218
|
46,795
|
Repayment of bank loan
|
(42,315)
|
(38,409)
|
Proceeds from exercise of stock options
|
21
|
-
|
Dividends paid
|
(2,912)
|
(2,263)
|
Net cash
provided by/(used in) financing activities
|
18,012
|
6,123
|
Effect of
exchange rate changes on cash
|
49
|
1,239
|
Net
increase/(decrease) in cash and cash equivalents
|
(5,708)
|
(3,309)
|
Cash and
cash equivalents at beginning of year
|
24,218
|
27,527
|
Cash and
cash equivalents at end of the period
|
18,510
|
24,218
|
|
|
|
Interest
paid
|
1,673
|
1,285
|
Income
taxes paid
|
3,027
|
2,742
|
|
|
|
SOURCE Jinpan International Ltd.