CARLSTADT, N.J., March 10, 2014 /PRNewswire/ -- Jinpan
International Limited (Nasdaq: JST), a leading designer,
manufacturer, and distributor of cast resin transformers, today
reported unaudited consolidated financial results for the fourth
quarter and full year ending December
31, 2013.
Fourth Quarter 2013 Results
Net sales for the fourth quarter were $63.1 million, an 18.2% increase from
$53.4 million in the same period last
year. The increase was driven by robust growth in the Chinese
market and a strong recovery in international sales. In the
fourth quarter, China sales
increased 18.7% year-over-year to $57.5
million, or 91.1% of net sales, compared to $48.5 million, or 90.8% of net sales in the same
period last year. Net sales outside of China for the quarter increased 14.3%
year-over-year to $5.6 million, or
8.9% of net sales, compared to $4.9
million, or 9.2% of net sales for the same period last
year.
The sales of cast resin and VPI transformers (excluding those
for wind power applications), switchgears and unit substations
increased 17.2% year-over-year to $58.5
million, or 92.7% of net sales in the fourth quarter, while
wind energy products (cast resin transformers and VPI reactors for
wind power applications) represented $4.6
million, or 7.3% of net sales during this quarter.
Gross profit in the fourth quarter increased 27.2% year over
year to $20.7 million from
$16.3 million in the same period last
year. Fourth quarter 2013 gross profit margin was 32.9%,
compared to 30.5% in the prior year period. Gross margin in the
fourth quarter increased compared to the same period last year due
to a stabilized pricing environment and favorable raw material
costs.
Selling and administrative expenses in the fourth quarter were
$18.5 million, or 29.3% of net sales,
compared to $14.0 million, or 26.2%
of net sales in the same period last year. Selling and
administrative expenses increased from the same period last year
due to higher sales volume and increased research and development
expenses, which were abnormally low in the prior year period.
Operating income for the fourth quarter decreased 4.8% to
$2.2 million, or 3.5% of net sales,
from $2.3 million, or 4.4% of net
sales, in the same period last year.
Net income for the fourth quarter increased 6.2% to $4.1 million, or $0.24 per diluted share, compared to $3.8 million, or $0.23 per diluted share, in the same period last
year. Fourth quarter net income, as a percentage of net
sales, was 6.4% compared to 7.2% in the same period last year.
Full Year 2013 Results
Net sales for the full year 2013 were $225.7 million, a 7.2% increase from $210.5 million last year. Gross profit in
2013 increased 5.3% to $72.4 million
and gross profit margin decreased to 32.1%, compared to 32.7%
during 2012. Selling and administrative expenses were
$55.7 million, compared to
$53.9 million last year. The Company
reclassified installation service fees of $4.4 million from selling expense to cost of
goods sold for the year 2013. Operating profit in 2013
increased 12.1% to $16.7 million, or
7.4% of net sales, compared to $14.9
million, or 7.1% of net sales, last year. Net income
in 2013 increased 17.8% to $16.6
million, or $0.99 per share,
compared to $14.1 million, or
$0.84 per share, in the prior
year.
Mr. Zhiyuan Li, Chief Executive
Officer of Jinpan International, stated, "We are pleased with our
accomplishments during 2013, which translated into a return to
growth and operating margin expansion for the year. Our
team's exceptional execution on the ramp-up of production at our
new Guilin facility enabled us to achieve record annual sales and
has put us on a path for continued revenue and earnings
growth."
"We remain focused on the disciplined execution of our growth
strategy. We believe the key factors are in place to drive
sustainable demand for our products within our core electrical
infrastructure sector as well as within renewable energy sectors
such as wind power and utility-scale solar. Looking ahead, we
anticipate steady demand from the domestic market and are making
good progress with our international OEM customers. Our
optimism about our growth outlook is reflected by the Board of
Directors' recent decision to increase our quarterly
dividend."
"At the end of December, our backlog equaled $100 million, down 27.5% from the prior year
period and down 4.8% from the third quarter of 2013. The
increased production of standardized cast resin transformers from
our Guilin facility has accelerated our average cycle time and
enabled us to convert orders into revenue more quickly. This
is reflected by our record level of inventory turnover for
2013. We are comfortable with our backlog and expect it to
gradually increase from these levels as our business expands."
Balance Sheet
As of December 31, 2013, the
Company had $30.8 million in cash and
cash equivalents, restricted cash, and short term investments,
compared to $30.5 million as of
December 31, 2012. The Company's
accounts receivable on December 31,
2013 totaled $144.6 million,
compared to $124.6 million as of
December 31, 2012. Total
bank loans outstanding at December 31,
2013 were $43.1 million,
compared to $43.9 million at
December 31, 2012.
Financial Outlook
For the full year 2014, the Company projects revenue and
earnings growth of approximately 10% to 15% compared to 2013.
Net sales are expected to be in the range of $248 million to $260 million and net income is
expected to be in the range of $18.2 million
to $19.1 million, or $1.09 to
$1.14 per share.
Conference Call Information
Jinpan's management will host a conference call and webcast on
Monday, March 10, 2014, at
4:30 p.m. Eastern Time.
Listeners may access the call by dialing 1-888-230-5498 (toll free)
or 1-913-905-3226 (international). A webcast will also be
available via http://public.viavid.com, with event ID:
108065. A replay of the call will be available through
March 24, 2014, by dialing
1-877-870-5176, access code 9355802.
ABOUT JINPAN INTERNATIONAL
Jinpan International Limited (NASDAQ: JST) designs,
manufactures, and markets electrical control and distribution
equipment used in demanding industrial applications, utility
projects, renewable energy installations, and infrastructure
projects. Major products include cast resin transformers, VPI
transformers and reactors, switchgears, and unit substations.
Jinpan serves a wide range of customers in China and reaches international markets as a
qualified supplier to leading global industrial electrical
equipment manufacturers. Jinpan's four manufacturing facilities in
China are located in the cities of
Haikou, Wuhan, Shanghai and Guilin. The Company's
manufacturing facilities in China
comprise the largest cast resin transformer production capacity in
that country. The Company was founded in 1993. Its principal
executive offices are located in Haikou, Hainan,
China and its United States
office is based in Carlstadt, New
Jersey. For more information, visit
www.jinpaninternational.com.
Safe Harbor Regarding Forward Looking Statements
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.
FINANCIAL STATEMENTS FOLLOW:
Jinpan
International Limited and Subsidiaries
|
Consolidated
Statements of Comprehensive Income (unaudited)
|
For the Three and
Twelve Month Periods Ended December 31, 2013
|
|
|
|
|
Three months
ended
|
Twelve months
ended
|
|
|
December
31
|
December
31
|
|
|
|
|
|
|
|
|
2013
|
2012
|
2013
|
2012
|
(In thousands, except
per share data)
|
|
US$
|
US$
|
US$
|
US$
|
|
|
|
|
|
|
Net sales
|
|
63,148
|
53,422
|
225,727
|
210,537
|
Cost of Goods
Sold
|
|
(42,399)
|
(37,112)
|
(153,325)
|
(141,747)
|
Gross
Margin
|
|
20,749
|
16,310
|
72,402
|
68,790
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
Selling and
administrative
|
|
(18,531)
|
(13,981)
|
(55,718)
|
(53,903)
|
Operating
income
|
|
2,218
|
2,329
|
16,684
|
14,887
|
|
|
|
|
|
|
Interest
Expenses
|
|
(731)
|
(325)
|
(2,072)
|
(1,766)
|
Other
Income
|
|
2,781
|
2,287
|
4,636
|
3,223
|
Income before income
taxes
|
|
4,268
|
4,291
|
19,248
|
16,344
|
|
|
|
|
|
|
Income
taxes
|
|
(195)
|
(456)
|
(2,677)
|
(2,282)
|
Net income after
taxes
|
|
4,073
|
3,835
|
16,571
|
14,062
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
Foreign
currency translation adjustment
|
|
(14)
|
(20)
|
(27)
|
(73)
|
Total comprehensive
income
|
|
4,059
|
3,815
|
16,544
|
13,989
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
-Basic
|
|
US$ 0.25
|
US$ 0.24
|
US$ 1.02
|
US$ 0.87
|
|
|
|
|
|
|
-Diluted
|
|
US$ 0.24
|
US$ 0.23
|
US$ 0.99
|
US$ 0.84
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
|
|
|
|
|
|
|
-Basic
|
|
16,230,165
|
16,170,107
|
16,230,165
|
16,170,107
|
|
|
|
|
|
|
-Diluted
|
|
16,631,378
|
16,701,657
|
16,711,192
|
16,717,277
|
Jinpan
International Limited and Subsidiaries
|
Consolidated
Balance Sheet
|
|
|
|
(Unaudited)
|
|
(Audited)
|
|
December 31,
2013
|
|
December 31,
2012
|
(In thousands, except
number of shares and per share data)
|
US$
|
|
US$
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
24,582
|
|
18,510
|
Restricted cash
|
1,316
|
|
824
|
Short-term
investment
|
4,920
|
|
11,137
|
Notes receivable
|
15,802
|
|
15,720
|
Accounts receivable,
net
|
144,606
|
|
124,608
|
Inventories, net
|
33,614
|
|
29,565
|
Prepaid expenses
|
4,204
|
|
2,528
|
Land use right
|
367
|
|
366
|
Deferred tax
assets
|
2,119
|
|
1,339
|
Other receivables
|
6,891
|
|
5,900
|
|
|
|
|
Total current
assets
|
238,421
|
|
210,497
|
|
|
|
|
Property, plant and
equipment, net
|
75,601
|
|
41,361
|
Construction-in-progress
|
3,787
|
|
29,196
|
Land use
right
|
14,850
|
|
14,760
|
Goodwill
|
13,818
|
|
13,403
|
Other
assets
|
90
|
|
32
|
Deferred tax
assets
|
34
|
|
34
|
|
|
|
|
Total
assets
|
346,601
|
|
309,283
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Short-term bank
loans
|
11,101
|
|
17,644
|
Accounts payable
|
27,013
|
|
25,029
|
Notes Payable
|
10,498
|
|
6,008
|
Income tax
payable
|
2,516
|
|
1,880
|
Advances from
customers
|
14,207
|
|
13,624
|
Other liabilities
|
30,339
|
|
22,844
|
|
|
|
|
Total current
liabilities
|
95,674
|
|
87,029
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
Long term
liability:
|
|
|
|
Deferred Income
|
4,785
|
|
3,080
|
Long Term bank
loans
|
31,998
|
|
26,315
|
|
|
|
|
Total
Liabilities
|
132,457
|
|
116,424
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
Convertible preferred
stock, US$0.0045 par value:
|
|
|
|
Authorized shares -
2,000,000
|
|
|
|
Issued and outstanding
shares – none in 2012 and 2011
|
-
|
|
-
|
Common stock,
US$0.0045 par value:
|
|
|
|
Authorized shares –
40,000,000
|
|
|
|
Issued and
outstanding shares –16,415,456 in 2013 and 16,395,456 in
2012
|
74
|
|
74
|
Common
stock-warrants
|
-
|
|
-
|
Additional paid-in
capital
|
37,726
|
|
37,374
|
Reserves
|
12,849
|
|
12,023
|
Retained
earnings
|
136,874
|
|
123,065
|
Accumulated other
comprehensive income
|
26,937
|
|
20,781
|
|
214,460
|
|
193,317
|
Less: Treasury shares
at cost,
|
|
|
|
|
|
|
|
Common stock –135,306
in 2013 and 215,306 in 2012
|
(316)
|
|
(458)
|
|
|
|
|
Total shareholders'
equity
|
214,144
|
|
192,859
|
|
|
|
|
Total liabilities and
shareholders' equity
|
346,601
|
|
309,283
|
Jinpan
International Limited and Subsidiaries
|
Consolidated
Statement of Cash Flows
|
For the Twelve
Months Ended December 31, 2013 (unaudited)
|
|
|
|
For the Twelve Months
Ended
|
|
December 31
|
|
2013
|
2012
|
|
US$
|
US$
|
(In
thousands)
|
|
|
|
|
|
Operating
Activities
|
|
|
Net Income
|
16,571
|
14,062
|
Adjustments to
reconcile net income to
|
|
|
Net Cash provided by (used in ) operating activities:
|
|
|
Depreciation
|
6,491
|
5,246
|
Amortization of prepaid lease
|
372
|
|
Deferred Income Tax
|
(727)
|
(326)
|
Provision for doubtful debts
|
4,295
|
2,733
|
Loss/(gain) on disposal of fixed assets
|
(40)
|
(4)
|
Stock-based
compensation Cost
|
277
|
406
|
|
|
|
Changes in operating assets and
liabilities
|
|
|
Restricted Cash
|
(459)
|
(501)
|
Accounts Receivable
|
(20,188)
|
(16,671)
|
Notes Receivable
|
399
|
3,437
|
Inventories
|
(3,086)
|
7,192
|
Prepaid Expenses
|
(1,573)
|
10,743
|
Other Receivable
|
(852)
|
(426)
|
Accounts Payable
|
1,191
|
1,492
|
Notes Payable
|
4,238
|
(7,628)
|
Income Tax
|
569
|
(461)
|
Advance From customers
|
159
|
951
|
Other liabilities
|
6,700
|
(928)
|
Net Cash provided by
( used in ) operating activities
|
14,337
|
19,317
|
|
|
|
Investing
activities
|
|
|
Purchases of property, plant
and equipment
|
(370)
|
(8,787)
|
Proceeds from sales of property, plant and
equipment
|
40
|
29
|
Payment for construction in
progress
|
(12,667)
|
(26,751)
|
Purchase of Land use
right
|
-
|
434
|
Sale of short term
investment
|
57,179
|
12,711
|
Increase in short term
investment
|
(50,719)
|
(23,834)
|
Receipt of government grant
for new plant construction
|
1,582
|
3,080
|
Decrease in investment in
Beijing Jinpan Huineng Co.
|
-
|
32
|
Net Cash provided by
( used in ) investing activities
|
(4,955)
|
(43,086)
|
|
|
|
Financing
activities
|
|
|
Proceeds from bank
loan
|
42,213
|
63,218
|
Repayment of bank
loan
|
(44,400)
|
(42,315)
|
Proceeds from exercised
stock option
|
216
|
21
|
Dividend paid
|
(1,950)
|
(2,912)
|
Net Cash provided by
( used in ) financing activities
|
(3,921)
|
18,012
|
|
|
|
Effect of exchange
rate changes on cash
|
611
|
49
|
|
|
|
Net
increase/(decrease) in cash and cash equivalents
|
6,072
|
(5,708)
|
|
|
|
Cash and Cash
equivalents at beginning of year
|
18,510
|
24,218
|
|
|
|
Cash and Cash
equivalents at end of year
|
24,582
|
18,510
|
|
|
|
Interest
paid
|
2,724
|
1,673
|
Income Tax
paid
|
2,470
|
3,027
|
SOURCE Jinpan International