CARLSTADT, N.J., May 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 first quarter of
2013 ending March 31, 2013.
First Quarter 2013 Results
Net sales for the first quarter were $35.2 million, a 17.8% decrease from $42.8 million in the same period last year.
The decrease in sales was primarily the result of lower levels of
international sales compared to the prior year period, which
experienced higher than average sales activity. In the first
quarter, domestic China sales
accounted for $32.2 million, or 91.5%
of net sales, compared to $33.8
million, or 79.0% of net sales in the same period last year.
Net sales outside of China for the
quarter were $3.0 million, or 8.5% of
net sales compared to $9.0 million,
or 21.0% 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
$33.2 million, or 94.3% of net sales
in the first quarter, while wind energy products (cast resin
transformers and VPI products for wind power applications)
represented $2.0 million, or 5.7% of
net sales during this quarter.
Gross profit in the first quarter decreased 25.7% year over year
to $11.7 million from $15.8 million in the same period last year.
First quarter 2013 gross profit margin was 33.3%, compared to 36.9%
in the prior year period, and 30.5% in the fourth quarter of 2012.
Gross margin in the first quarter decreased compared to the same
period last year mainly due to a decrease in international sales,
which usually represent sales of higher margin products.
Gross margin in the first quarter increased over that of the fourth
quarter of 2012 reflects the stabilizing of transformer prices in
China.
Selling and administrative expenses in the first quarter were
$10.4 million, or 29.5% of net sales,
compared to $10.9 million, or 25.5%
of net sales in the same period last year, and $14.0 million, or 26.2% in the fourth quarter of
2012. While 2013 first quarter selling and administrative
expenses declined year over year, as a percent of revenue, expenses
were higher due to a higher percentage of contribution from
domestic China sales which
typically incur greater selling expenses per dollar of revenue
compared to export sales.
Operating income for the first quarter decreased to $1.3 million, or 3.8% of net sales from
$4.8 million, or 11.3% of net sales,
in the same period last year.
Other income for the first quarter of 2013 was $0.4 million compared to $0.2 million in the same quarter of 2012.
Net income for the first quarter was $1.1
million, or $0.07 per diluted
share, compared to $4.0 million, or
$0.24 per diluted share, in the same
period last year. First quarter net income, as a percentage
of net sales, was 3.2% compared to 9.3% in the same period last
year.
Mr. Zhiyuan Li, Chief Executive
Officer of Jinpan, commented, "Despite lower sales in the first
quarter compared to the prior year period, we expect steady growth
in customer order activity as we progress through 2013. On the
domestic front, sales orders for traditional cast resin
transformers held steady and product pricing was stable, resulting
in an improvement in gross margin compared to gross margin in the
fourth quarter of 2012. Internationally, we expect our order
flow to gain momentum going forward as one of our major OEM
customers has completed their change in design technology for their
wind energy transformers and resumes more regular order
activity. We are generating orders from three major OEM's
this year ensuring greater stability for this segment of our
business and continue to pursue other high profile international
OEM customer opportunities.
"We commenced production at our new Guilin transformer
manufacturing facility at the end of the first quarter and aim to
ramp up production and maximize performance from this facility in
the quarters ahead. At the end of April, our backlog rose to
$142 million, up 27% over the prior
year period and up 3% since the end of December 2012.
"China recently completed its
leadership transition at the national level. Proactive fiscal
policy is stimulating domestic demand for electrical distribution
equipment from manufacturers. Our customers in China, the majority of which are state-owned
enterprises and regional governments, are expected to gradually
increase spending on infrastructure development. We expect stronger
performance in the second half of 2013 as the level of
infrastructure development picks up in China. We also expect to increase
international sales as we ship more products to our OEM
customers. We are well positioned to capitalize on
opportunities in China and in
other strategic markets around the world."
Balance Sheet
As of March 31, 2013, the Company
had $26.3 million in cash and cash
equivalents, compared to $18.5
million as of December 31,
2012. The Company's accounts receivable on March 31, 2013 totaled $124.9 million, compared to $124.6 million as of December 31, 2012. Notes payable in the
first quarter of 2013 decreased to $4.9
million compared to $6.0
million on December 31,
2012. Total bank loans outstanding at March 31, 2013 were $45.0
million, compared to $44.0
million at December 31,
2012.
Financial Outlook
For the full year 2013, the Company reiterates projected 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 an increase
of 0% to 3% compared to 2012. Projected net profit growth in
2013 is expected to trend lower than revenue growth primarily due
to the fixed costs associated with the Company's newly built Guilin
facility.
Conference Call Information
Jinpan's management will host an earnings conference call on
May 15th, 2013 at 8:30 a.m. U.S. Eastern Time. Listeners may
access the call by dialing #1-913-312-0971. A webcast will
also be available via http://public.viavid.com, with event ID:
104646. A replay of the call will be available through
May 29th, 2013. Listeners may
access the replay by dialing #1-858-384-5517, access code:
2671109.
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. 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, 2012 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 Comprehensive Income
(unaudited)
|
|
|
|
Three months ended
|
|
|
March
31
|
|
|
|
|
|
|
2013
|
2012
|
(In
thousands, except per share data)
|
|
US$
|
|
|
|
|
Net
sales
|
|
35,171
|
42,755
|
Cost of
Goods Sold
|
|
(23,453)
|
(26,993)
|
Gross
Margin
|
|
11,718
|
15,762
|
|
|
|
|
Operating
Expenses
|
|
|
|
Selling
and administrative
|
|
(10,371)
|
(10,915)
|
Operating
income
|
|
1,347
|
4,847
|
|
|
|
|
Interest
Expenses
|
|
(268)
|
(459)
|
Other
Income
|
|
373
|
215
|
Income
before income taxes
|
|
1,452
|
4,603
|
|
|
|
|
Income
taxes
|
|
(310)
|
(638)
|
Net income
after taxes
|
|
1,142
|
3,965
|
|
|
|
|
Other
comprehensive income (loss)
|
|
|
|
Foreign currency translation
adjustment
|
|
(4)
|
(71)
|
Total
comprehensive income
|
|
1,138
|
3,894
|
|
|
|
|
Earnings
per share
|
|
|
|
|
|
|
|
-Basic
|
|
US$
0.07
|
US$
0.25
|
|
|
|
|
-Diluted
|
|
US$
0.07
|
US$
0.24
|
|
|
|
|
Weighted
average number of shares
|
|
|
|
|
|
|
|
-Basic
|
|
16,187,218
|
16,163,696
|
|
|
|
|
-Diluted
|
|
16,722,062
|
16,549,619
|
Jinpan
International Limited and Subsidiaries
Consolidated Balance Sheets
|
|
|
(Unaudited)
|
|
(Audited)
|
|
March
31,
|
|
December
31,
|
|
2013
|
|
2012
|
|
US$
|
(In
thousands, except number of shares and per share data)
|
|
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and
cash equivalents
|
26,260
|
|
18,510
|
Restricted
cash
|
593
|
|
824
|
Short-term
investment
|
-
|
|
11,137
|
Notes
receivable
|
11,000
|
|
15,720
|
Accounts
receivable, net
|
124,899
|
|
124,608
|
Inventories, net
|
33,020
|
|
29,565
|
Prepaid
expenses
|
5,551
|
|
2,528
|
Land use
right
|
367
|
|
366
|
Deferred
tax assets
|
1,512
|
|
1,339
|
Other
receivables
|
7,183
|
|
5,900
|
Total
current assets
|
210,385
|
|
210,497
|
|
|
|
|
Property,
plant and equipment, net
|
45,879
|
|
41,361
|
Construction-in-progress
|
30,403
|
|
29,196
|
Land use
right
|
14,708
|
|
14,760
|
Goodwill
|
13,439
|
|
13,403
|
Other
assets
|
129
|
|
32
|
Deferred
tax assets
|
34
|
|
34
|
|
|
|
|
Total
assets
|
314,977
|
|
309,283
|
|
|
|
|
Liabilities and shareholders' equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Short-term
bank loans
|
13,327
|
|
17,644
|
Accounts
payable
|
29,442
|
|
25,029
|
Notes
Payable
|
4,940
|
|
6,008
|
Income tax
payable
|
1,838
|
|
1,880
|
Advances
from customers
|
15,678
|
|
13,624
|
Other
liabilities
|
19,835
|
|
22,844
|
Total
current liabilities
|
85,060
|
|
87,029
|
Commitments and contingencies
|
|
|
|
|
|
|
|
Deferred Income
|
4,202
|
|
3,080
|
Long Term bank
loans
|
31,610
|
|
26,315
|
|
120,872
|
|
116,424
|
|
|
|
|
Shareholders' equity:
|
|
|
|
Convertible preferred stock, US$0.0045 par
value:
|
|
|
|
Authorized shares -
2,000,000
|
|
|
|
Issued and outstanding
shares – none in 2013 and 2012
|
-
|
|
-
|
Common
stock, US$0.0045 par value:
|
|
|
|
Authorized
shares – 40,000,000
|
|
|
|
Issued and
outstanding shares –16,415,456 in 2013 and 16,395,456 in
2012
|
74
|
|
74
|
Common
stock-warrants
|
-
|
|
-
|
Additional
paid-in capital
|
37,459
|
|
37,374
|
Reserves
|
12,023
|
|
12,023
|
Retained
earnings
|
123,722
|
|
123,065
|
Accumulated other comprehensive income
|
21,285
|
|
20,781
|
|
194,563
|
|
193,317
|
Less:
Treasury shares at cost,
|
|
|
|
Common
stock –215,306 in 2013 and 227,306 in 2012
|
(458)
|
|
(458)
|
Total
shareholders' equity
|
194,105
|
|
192,859
|
|
|
|
|
Total
liabilities and shareholders' equity
|
314,977
|
|
309,283
|
Jinpan
International Ltd
|
|
|
Consolidated Statement of Cash
Flows
|
|
|
For the
Three Months Ended March 31, 2012
|
|
|
|
|
|
|
For the
Three Months Ended
|
|
March
31
|
|
2013
|
2012
|
|
US$
|
US$
|
|
( In
thousands)
|
|
|
|
|
Operating
Activities
|
|
|
Net Income
|
1,142
|
3,965
|
Adjustments to
reconcile net income to
|
|
|
Net Cash provided by (used in ) operating activities:
|
|
|
Depreciation
|
1,629
|
1,183
|
Amortization of prepaid lease
|
92
|
90
|
Deferred Income Tax
|
(170)
|
16
|
Provision for doubtful debts
|
562
|
862
|
Loss/(gain) on disposal of fixed assets
|
-
|
(3)
|
Stock-based compensation Cost
|
13
|
11
|
Changes in operating
assets and liabilities
|
|
|
Restricted Cash
|
233
|
302
|
Accounts Receivable
|
(523)
|
(4,807)
|
Notes Receivable
|
4,756
|
9,252
|
Inventories
|
(3,372)
|
(7,466)
|
Prepaid Expenses
|
(3,012)
|
1,334
|
Other Receivable
|
(1,363)
|
(1,667)
|
Accounts Payable
|
4,341
|
(909)
|
Notes Payable
|
(1,082)
|
(11,441)
|
Income Tax
|
(47)
|
459
|
Advance From customers
|
2,015
|
1,167
|
Other liabilities
|
(3,065)
|
(6,243)
|
Net Cash
provided by ( used in ) operating activities
|
2,149
|
(13,895)
|
Investing
activities
|
|
|
Purchases of property, plant
and equipment
|
(6,032)
|
(4,200)
|
Proceeds from sales of
property, plant and equipment
|
-
|
27
|
Payment for construction in
progress
|
(1,128)
|
(1,084)
|
Sell of short term
investment
|
11,151
|
-
|
Rec
eipt of government grant for new plant construction
|
1,109
|
-
|
Net Cash
provided by ( used in ) investing activities
|
5,100
|
(5,257)
|
Financing
activities
|
|
|
Proceeds from bank
loan
|
8,125
|
11,820
|
Repayment of bank
loan
|
(7,265)
|
(3,189)
|
Proceeds from exercised
stock option
|
73
|
-
|
Dividend paid
|
(486)
|
(1,132)
|
Net Cash
provided by ( used in ) financing activities
|
447
|
7,499
|
Effect of
exchange rate changes on cash
|
54
|
17
|
Net
increase/(decrease) in cash and cash equivalents
|
7,750
|
(11,636)
|
Cash and
Cash equivalents at beginning of year
|
18,510
|
24,218
|
Cash and
Cash equivalents at end of year
|
26,260
|
12,582
|
|
|
|
Interest
paid
|
340
|
340
|
Income Tax
paid
|
193
|
164
|
SOURCE Jinpan International Ltd.