Nam Tai Electronics, Inc. Q4 2012 Sales up 263%, Gross profit margin at 10.5%
Nam Tai Electronics, Inc. Q4 2012 Sales up 263%, Gross profit margin at 10.5%
Year 2012 Sales up 118%, Gross profit margin at 9.2%
PR Newswire
SHENZHEN,China, Jan. 28, 2013
SHENZHEN,China, Jan. 28, 2013 /PRNewswire/ -- Nam Tai Electronics, Inc. ("Nam
Tai" or the "Company") (NYSE Symbol: NTE) today announced its unaudited
results for the fourth quarter ended December 31, 2012.
KEY HIGHLIGHTS
(In thousands of US Dollars, except per share data, percentages and as
otherwise stated)
Quarterly Results Yearly Results
Q4 2012 Q4 2011 YoY(%)^(^d^) 2012 2011 YoY(%)^(^d^)
Net sales ^ $468,464 $129,073 263 $1,147,923 $525,077 118
(a)
Gross
profit ^ $48,964 $1,238 3,855 $105,777 $19,252 449
(a)
% of sales 10.5% 1.0% - 9.2% 3.7% -
Operating
income $38,227 $(9,054) - $73,307 $(11,354) -
(loss) ^
(a)
% of sales 8.2% (7.0%) - 6.4% (2.2%) -
per share $0.84 $(0.20) - $1.62 $(0.25) -
(diluted) ^
Net income
(loss) ^ $36,606 $(5,611) - $66,921 $505 13,152
(^b^) (^c^)
% of sales 7.8% (4.3%) - 5.8% 0.1% -
Basic
earnings $0.82 $(0.13) - $1.49 $0.01 14,800
(loss) per
share
Diluted
earnings $0.80 $(0.13) - $1.48 $0.01 14,700
(loss) per
share
Weighted
average
number of
shares
('000)
Basic 44,804 44,804 - 44,804 44,804 -
Diluted 45,692 44,825 - 45,345 44,841 -
Notes:
(a) The net sales, gross profit and operating income (loss) have excluded the
discontinued business of Liquid Crystal Display Panels (LCDP). For the three
months ended December 31, 2012 and December 31, 2011, the discontinued
operation recognized net sales of $0.1 million and $16.2 million, a gross
profit of nil and $1.1 million, and an operating income (loss) of $0.6 million
and ($3.5 million) respectively. For the twelve months ended December 31, 2012
and December 31, 2011, the discontinued operation recognized net sales of
$24.2 million and $77.2 million, a gross (loss) profit of ($0.6 million) and
$8.8 million, an operating loss of $2.2 million and nil, respectively. (Please
see page 7 of the Company's Condensed Consolidated Statements of Operations
for details).
(b) Net income for the three months ended December 31, 2012 has included
profit from discontinued business (net of tax) of $0.1 million and other &
interest income of $4.0 million, which consisted of cash incentive bonus
reversal of $0.7 million, income from scrap of $0.5 million, incentive
allowance received from government of $0.3 million and interest income &
exchange gain of $1.6 million.
(c) Net income for the twelve months ended December 31, 2012 has included loss
from discontinued business (net of tax) of $0.7 million, and other & interest
income of $11.9 million, which consisted of subsidy received as an advance
technology allowance from Wuxi government as an incentive for our investment
and factory expansion in Wuxi of $2.8 million, income from scrap of $1.1
million, cash incentive bonus reversal of $0.7 million, incentive allowance
from Shenzhen government for mechanical and electrical products of $0.6
million and interest income & exchange gain of $4.1 million.
(d) Percentage change is not applicable if either of the two periods contains
a loss.
(e) This information has been published on the Company's website
http://www.namtai.com/quarterly/quarterly.htm under the quarterly earnings
report of Q4 2012 on page 7, Condensed Consolidated Statements of Operations.
SUPPLEMENTARY INFORMATION (UNAUDITED) IN THE FOURTH QUARTER OF 2012
1. Quarterly Sales
(In thousands of US Dollars, except percentage information)
YoY(%) YoY(%)
Quarter 2012 2011
(Quarterly) (Quarterly
accumulated)
1^st Quarter $94,062 $142,410 (33.9) (33.9)
2^nd Quarter $205,146 $125,994 62.8 11.5
3^rd Quarter $380,251 $127,600 198.0 71.6
4^th Quarter $468,464 $129,073 262.9 118.6
Total $1,147,923 $525,077
Note:
* The above sales have excluded certain discontinued business. Please see page
7 of the Company's Condensed Consolidated Statements of Operations for
details. This information has also been published on the Company's website at
http://www.namtai.com/quarterly/quarterly.htm in the quarterly earnings report
of Q4 2012 on page 7, Condensed Consolidated Statements of Operations.
2. Key Highlights of Financial Position
As at December 31,
2012 2011^(a)
Cash on hand ^(b) $157.8 million $118.5 million
Ratio of cash ^ to current 0.58 0.88
liabilities
Current ratio 1.67 2.22
Ratio of total assets to total 2.33 3.38
liabilities
Return on equity 19.5% 0.2%
Ratio of total liabilities to total 0.75 0.42
equity
Debtors turnover 49 days 46 days
Inventory turnover 19 days 19 days
Average payable period 66 days 54 days
Notes:
(a) The Company's ratios as at December 31, 2011 have been restated according
to the reclassified assets and liabilities resulted from discontinued
business. Please see page 8 of the Company's Condensed Consolidated Balance
Sheets for further information. This information has also been published on
the Company's website at http://www.namtai.com/quarterly/quarterly.htm in the
quarterly earnings report of Q4 2012 on page 8, Condensed Consolidated Balance
Sheets.
(b) According to the definition of "Balance Sheet" under the Financial
Accounting Standard Board (the "FASB") Accounting Standards Codification
("ASC") 210-10-20, cash equivalents are short-term, highly liquid investments
that are readily convertible to cash. Only investments with original
maturities of three months or less when purchased qualify under that
definition. Therefore, the fixed deposits maturing over three months are not
classified as cash on hand but require separate disclosure.
OPERATING RESULTS
Sales in the fourth quarter of 2012 were $468.5 million, an increase of
262.9%, compared to the sales of $129 million for the same quarter of 2011.
Gross profit in the fourth quarter of 2012 was $49 million, an increase of
3,855%, compared to $1 million in the fourth quarter of last year. Gross
profit margin for the fourth quarter of 2012 was 10.5%, up 9.5% from 1% in the
fourth quarter of last year. Operating income for the fourth quarter of 2012
was $38 million, compared to an operating loss of $9 million in the fourth
quarter of last year. Net income in the fourth quarter of 2012 was $36.6
million, or $0.8 per share (diluted), compared to the net loss of $5.6
million, or loss of $0.13 per share (diluted), in the fourth quarter of last
year.
For the twelve months ended December 31, 2012, net sales were $1.2 billion, an
increase of 118.6%, as we reached a new sales record, compared to $525 million
in the same period of 2011. Gross profit for the twelve months ended December
31, 2012 was $105.8 million, an increase of 449.4%, compared to $19.3 million
in the same period of last year. Gross profit margin for the twelve months
ended December 31, 2012 was 9.2%, an increase of 5.5%, compared to 3.7% for
the same period of last year. Operating income for the twelve months ended
December 31, 2012 was $73.3 million, compared to an operating loss of $11.4
million in the same period of last year. Net income for the twelve months
ended December 31, 2012 was $66.9 million, or $1.48 per share (diluted), an
increase of 13,152%, compared to net income of $0.5 million, or $0.01 per
share (diluted), in the same period last year.
The improvement of the Company's results in the fourth quarter of 2012 was
mainly due to four factors. First, sales increased significantly by 263%
compared to the same period last year, as a result of (i) the Company's
Shenzhen manufacturing facility began mass production of high-resolution
liquid crystal display modules ("LCMs") for smartphones in September 2012 and
(ii) the Company's Wuxi manufacturing facility continued to ramp up its
production of high-resolution LCMs for tablets. Second, the Company had $4
million in other and interest income, including $0.3 million of incentive
allowance from the PRC government, $0.6 million in interest income and $1
million in exchange gain. Third, the Company has improved its gross and net
profits by discontinuing certain sales orders that have had poor performance.
Fourth, the Company enjoyed benefit from certain exemption treatment and tax
reduction for its Wuxi operation and a tax benefit of $0.6 million, as a
result of tax losses carried forward from last year.
With respect to the discontinued low profit margin business, for the three
months ended December 31, 2012 and December 31, 2011, the net sales were $0.1
million and $16 million, gross profit were nil and $1.1 million, and operating
profit (loss) were $0.6 million and ($3.5 million), respectively. For the
twelve months ended December 31, 2012 and December 31, 2011, the net sales
were $24 million and $77 million, gross (loss) profit were ($0.6 million) and
$9 million, and operating loss were $2 million and nil, respectively. Please
see page 7 of the Company's Condensed Consolidated Statements of Operations
for further details. This information has also been published on the Company's
website at http://www.namtai.com/quarterly/quarterly.htm in the quarterly
earnings report of Q4 2012 on page 7, Condensed Consolidated Statements of
Operations.
EXPANSION PROJECT
a) Expansion Project in Wuxi City, PRC
The Company has decided to discontinue its FPC business after the first
quarter of 2013 with the spare capacity redeployed to increase the production
capacity for LCMs. The Company has also applied to convert the zoning of a
part of the land owned by it in Wuxi city from industrial to residential and
to build certain accommodation facilities on that land for self-use.
b) Expansion Project in Shenzhen City, PRC
To accommodate Shenzhen government's city re-zoning plan, the Company plans to
relocate its current production facility in Shenzhen city to a new location
owned by it in Guangming Hi-Tech Industrial Park of approximately 1.2 million
square feet (double the size of current facilities). The Company currently
anticipates that it will take approximately three years to complete this
relocation and expansion project.
COMPANY OUTLOOK
The Company's revenue increased year-over-year 118.6% for 2012, when compared
with 2011, excluding the contribution from the discontinued business. This
significant revenue increase was attributable to the ramp up of the production
of high-resolution LCMs for tablets at the Company's Wuxi facility in June
2012 and the commencement of mass production of high-resolution LCMs for
smartphones at the Company's Shenzhen facility in September 2012. After the
final evaluation on the viability of its flexible printed circuit ("FPC")
business based on its performance in the third quarter of 2012, the Company
has also decided to discontinue its FPC business by the end of March 2013,
which business has been generating losses since its initial production.
In the fourth quarter of 2012, the Company's revenue increased by 263%
compared to the fourth quarter of 2011. The Company is currently coordinating
with its existing customers, as essential production partners, to further
diversify the Company's product portfolio by developing and manufacturing new
model for the existing end-buyer and also extend to other new customers' LCM
products used in smartphones, tablets, ultrabook computers and automobiles,
which the Company believes, with confidence, will continue to drive its growth
in 2013 of its existing production capacity and production facilities.
Due to the high level of competition in the market for tablets, smartphones
and ultrabook computers, the Company's management expects its customer orders
will continue to fluctuate and its gross profit would also be under more
pressure in 2013. In addition, the Company may also continue to face certain
risks including, but not limited to, the appreciation of renminbi, inflation
in China, labor shortage, materials shortage, customers and suppliers'
inability to meet their contractual obligations, financial difficulties
resulting in customers and suppliers' illiquidity and global political events
and actions, including war and terrorism. These risks could affect the
Company's sales, profit margin and loss of investments.
FOURTH QUARTER RESULTS ANALYST CONFERENCE CALL AND WEBCAST
The Company will hold a conference call on Monday, January 28, 2013, at 8:30
a.m. (EST). Shareholders, media and interested investors are invited to listen
to the live webcast at www.namtai.com by clicking on the conference call link
(under events) or over the phone by dialing 877.407.3140 just prior to its
start time. International participants may dial 201.689.8473. Analysts who
wish to receive the toll free dial-in number for this conference call are
invited to contact us at 212.245.4577 or via email to kevin@cameronassoc.com
not later than 5:00 p.m. (EST) on Friday, January 25, 2013.
PAYMENT OF QUARTERLY DIVIDENDS FOR 2013
As announced on November 5, 2012, the Company has set the payment schedule of
quarterly dividends for 2013. The dividend for Q1 2013 was paid on January 18,
2013. The following table updates the previously announced schedule for
declaration and payment of quarterly dividends in 2013.
The Company hereby clarifies that its shareholders of record on March 31, 2013
and June 30, 2013, a Sunday, will be identical to its shareholders of record
at the close of business on March 29, 2013 and June 28, 2013 respectively,
being the immediately preceding Friday.
Quarterly Dividend
Payment Record Date Payment Date Status
(per share)
Q1 2013 December 31, 2012 January 18, 2013 $0.15 PAID
Q2 2013 March 31, 2013 before April 30, 2013 $0.15
Q3 2013 June 30, 2013 before July 31, 2013 $0.15
Q4 2013 September 30, 2013 before October 31, 2013 $0.15
Total for Full Year 2013 $0.60
The Company's decision to continue dividend payments in 2013 does not
necessarily mean that cash dividend payments will continue thereafter. Whether
future dividends will be declared will depend upon Company's future growth and
earnings, of which there can be no assurance, and the Company's cash flow
needs for further expansion. Accordingly, there can be no assurance that cash
dividends on the Company's common shares will be declared beyond those
declared for 2013, what the amounts of such dividends will be or whether such
dividends, once declared for a specific period, will continue for any future
period, or at all.
PROPOSED SCHEDULE OF RELEASE OF QUARTERLY FINANCIAL RESULTS FOR 2013
To enhance the efficiency of delivering the Company's quarterly financial
results to the market, the Company's management has decided to accelerate the
schedule of release of quarterly financial results for 2013 to be one week
earlier than before. Details of the expected quarterly release dates are as
follows:-
Announcements of Financial Results
Quarter Date of release
Q1 2013 April 29, 2013 (Mon)
Q2 2013 July 29, 2013 (Mon)
Q3 2013 October 28, 2013 (Mon)
Q4 2013 January 27, 2014 (Mon)
ANNUAL GENERAL MEETING
The 2013 Annual General Meeting has been scheduled to be held on Friday, May
31, 2013 at 11:30 a.m. (China Standard Time) at the Company's Shenzhen
facility in the location of Gushu Industrial Estate, Xixiang, Baoan, Shenzhen,
People's Republic of China. More detailed information of the AGM will be
disclosed in Proxy Statement which will be released in early May 2013.
FORWARD-LOOKING STATEMENTS AND FACTORS THAT COULD CAUSE OUR SHARE PRICE TO
DECLINE
Certain statements included in this press release and the subsequent
conference call, other than statements of historical fact, are forward-looking
statements. Forward-looking statements generally can be identified by the use
of forward-looking terminology such as "may", "will", "expect", "intend",
"estimate", "anticipate", "plan", "seek" or "believe". These forward-looking
statements, which are subject to risks, uncertainties, and assumptions, may
include projections of our future financial performance based on our growth
strategies and anticipated trends in our business. These statements are only
predictions based on our current expectations about future events. There are
important factors that could cause our actual results, level of activity,
performance, or achievements to differ materially from the results, level of
activities, performance, or achievements expressed or implied by the
forward-looking statements, including, but not limited to, a deterioration of
the markets for the Company's customers' products and the global economy as a
whole, which could negatively impact the Company's revenue and the ability of
the Company's customers to confirm prior orders or pay for the Company's
products; the financial resources and credit rating of Company's customers
under the current global recession; the effects that current credit and market
conditions could have on the liquidity and financial condition of our
customers and suppliers, including any impact on their ability to meet their
contractual obligations; the sufficiency of the Company's cash position and
other sources of liquidity to operate its business; the negative effects of
increased competition pressure on the Company's revenues and margins;
component quality or shortage, whether or not cause by customers change in
specifications, delay in the Company's ability to take possession of land for
development of additional production facilities, continued inflation and
appreciation of the Renminbi against the US dollar; rising labor costs in
China and changes in the labor supply and labor relations our ability to win
additional government business. In particular, you should consider the risks
outlined under the heading "Risk Factors" in our most recent Annual Report on
Form 20-F and in our Current Report filed from time to time on Form 6-K. The
Company's decision to continue dividend payments in 2013 does not necessarily
mean that dividend payments will continue thereafter. Whether future dividends
will be declared depend upon the Company's future growth and earnings, of
which there can be no assurance, as well as the Company's cash flow needs for
further expansion. Accordingly, there can be no assurance that cash dividends
on the Company's common shares will be declared beyond those declared for
2013, what amount that dividends may be or whether such dividends, once
declared for a specific period, will continue for any future period, or at
all, Although we believe the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results, level of
activity, performance, or achievements. You should not rely upon
forward-looking statements as predictions of future events. These
forward-looking statements apply only as of the date of this press release and
the subsequent investors conference call; as such, they should not be unduly
relied upon as circumstances change. Except as required by law, we are not
obligated, and we undertake no obligation, to release publicly any revisions
to these forward-looking statements that might reflect events or circumstance
occurring after the date of this release or those that might reflect the
occurrence of unanticipated events.
ABOUT NAM TAI ELECTRONICS, INC.
We are an electronics manufacturing and design services provider to a select
group of the world's leading OEMs of telecommunications, consumer electronic
and automotive products. Through our electronics manufacturing services
operations, we manufacture electronic components and subassemblies, including
LCD modules, image-sensor modules and FPCAs. These components are used in
numerous electronic products, including smartphones, tablets, automotive,
laptop computers, digital cameras, electronic toys, handheld video game
devices, and entertainment devices. We also manufacture finished products,
including mobile phone accessories, home entertainment products and
educational products. We assist our OEM customers in the design and
development of their products and furnish full turnkey manufacturing services
that utilize advanced manufacturing processes and production technologies.
Nam Tai Electronics, Inc. is a corporation registered in the British Virgin
Islands and listed on the New York Stock Exchange (Symbol "NTE"). All the
Company's operations are located in the People's Republic of China.
NAM TAI ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE PERIODS ENDED DECEMBER 31, 2012 AND 2011
(In Thousands of US Dollars except share and per share data)
Three months ended Year ended
December 31 December 31
2012 2011 2012 2011
Net sales ^(1^) $ 468,464 $ 129,073 $ 1,147,923 $ 525,077
Cost of sales 419,500 127,835 1,042,146 505,825
Gross profit 48,964 1,238 105,777 19,252
Costs and expenses
General and
administrative expenses 10,362 5,657 28,440 21,439
^(2^)
Selling expenses 279 1,023 2,666 3,919
Research and development 96 661 1,364 2,297
expenses
Impairment loss on - 2,951 - 2,951
goodwill
10,737 10,292 32,470 30,606
Operating income (loss) 38,227 (9,054) 73,307 (11,354)
Other income , net ^(3^) 3,335 5,721 9,787 9,184
Interest income 632 609 2,112 2,728
Interest expenses (32) - (292) -
Income (loss) before 42,162 (2,724) 84,914 558
income tax
Income tax expenses (5,661) (401) (17,299) (972)
Income (loss) from 36,501 (3,125) 67,615 (414)
continuing business
Income (loss) from
discontinued business, 105 (2,486) (694) 919
net of tax
Consolidated net income $ 36,606 $ (5,611) $ 66,921 $ 505
(loss)
Basic net income (loss) -
per share:
Basic income (loss) per $
share from continuing $ 0.81 (0.07) $ 1.51 $ (0.01)
business
Basic income (loss) per $
share from discontinued $ 0.01 (0.06) $ (0.02) $ 0.02
business
Basic net income (loss) $ 0.82 $ $ 1.49 $ 0.01
per share (0.13)
Diluted net income (loss)
per share:
Diluted income (loss) per $
share from continuing $ 0.80 (0.07) $ 1.49 $ (0.01)
business
Diluted income (loss) per $
share from discontinued $ 0.00 (0.06) $ (0.01) $ 0.02
business
Diluted net income (loss) $ 0.80 $ $ 1.48 $ 0.01
per share (0.13)
Weighted average number of shares ('000)
Basic 44,804 44,804 44,804 44,804
Diluted 45,692 44,825 45,345 44,841
Notes:
(1) The sales from the discontinued business were $0.1 million and $16.2
million for the three months ended December 31, 2012 and 2011 respectively.
(2) The Company management adopted the employee stock option scheme with total
1.43 million shares options granted, in which 600,000 shares options have an
exercise price of $6.66 and 831,000 share options with an exercise price of
$5.63. The management has given up the cash incentive bonus , which were
reversed in 2012.
(3) The other & interest income of $4.0 million from continuing businesses in
the fourth quarter of 2012 included cash incentive bonus reversal of $0.7
million for 2011, income from scrap of $0.5 million, incentive allowance of
$0.3 million from government and interest income & exchange gain of $1.6
million.
NAM TAI ELECTRONICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS AT DECEMBER 31, 2012 AND DECEMBER 31, 2011
(In Thousands of US Dollars)
December 31 December 31
2012 2011
ASSETS
Current assets:
Cash and cash equivalents $ 157,838 $ 118,510
Fixed deposits maturing over three months 49,824 34,825
Accounts and notes receivable, net 155,557 65,754
Derivative financial instrument 99 -
Inventories 55,638 26,515
Prepaid expenses and other receivables 29,956 14,334
Finance lease receivable - current 3,583 -
Deferred tax assets – current 457 3,101
Income taxes recoverable 169 -
Current assets from discontinued business 112 34,179
Total current assets 453,233 297,218
Property, plant and equipment, net 151,555 137,393
Finance lease receivable – non current 8,553 -
Land use rights 16,532 11,981
Deposits for property, plant and equipment - 4,247
Deferred tax assets – non current 5,420 5,922
Other assets 751 982
Total assets $ 636,044 $ 457,743
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable $ 4,273 $ 268
Accounts payable 187,440 74,429
Trust Receipt loans 3,558 -
Accrued expenses and other payables 41,217 35,980
Short term bank borrowings 4,824 -
Dividend payable 26,882 12,545
Income tax payable 3,164 656
Current liabilities from discontinued business 515 10,280
Total current liabilities 271,873 134,158
Deferred tax liabilities 1,379 1,379
Total liabilities 273,252 135,537
EQUITY
Shareholders' equity:
Common shares 448 448
Additional paid-in capital 287,602 287,055
Retained earnings 74,750 34,711
Accumulated other comprehensive loss (8) (8)
Total shareholders' equity 362,792 322,206
Total liabilities and shareholders' $ 636,044 $ 457,743
equity
NAM TAI ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE PERIODS ENDED DECEMBER 31, 2012 AND 2011
(In Thousands of US Dollars)
Three months ended Year ended
December 31
December 31
2012 2011 2012 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income (loss) $ $ $ $ 505
36,606 (5,611) 66,921
Adjustments to reconcile net income
(loss) to net cash
provided by (used in) operating
activities:
Depreciation and amortization of
property, plant and equipment, land use 8,519 2,808 26,133 16,068
rights and other assets
Impairment loss on goodwill - 2,951 - 2,951
(Reversal) provision for inventories (26) 19 1,282 83
(Reversal) provision for goods return (201) - 402 -
(Reversal) provision for bad debts (561) (89) 45 5
(Gain) loss on disposal of property, (4) 186 (810) 231
plant and equipment
(Gain) loss on derivative financial (99) - 57 -
instrument
Share-based compensation expenses 164 - 547 112
Decrease (increase) in deferred income 258 101 5,460 (2,538)
taxes
Unrealized exchange gain (507) (1,642) (648) (4,134)
Changes in current assets and
liabilities:
Decrease (increase) in accounts 1,715 (6,150) (81,245) (298)
receivable
Decrease (increase) in inventories 50,896 (2,842) (25,064) (2,881)
Decrease (increase) in prepaid expenses 4,386 (8,967) (10,030) (14,207)
and other receivables
(Increase) decrease in income tax (2) 108 (169) 105
recoverable
(Decrease) increase in notes payable (33) 268 4,005 268
(Decrease) increase in accounts payable (55,101) 4,077 104,385 (1,535)
Increase in accrued expenses and other 1,132 3,879 15,340 4,173
payables
Increase (decrease) in income tax 437 (2,099) 3,160 (4,228)
payable
Total adjustments 10,973 (7,392) 42,850 (5,825)
Net cash provided by (used in) operating $ $ $ $
activities 47,579 (13,003) 109,771 (5,320)
NAM TAI ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE PERIODS ENDED DECEMBER 31, 2012 AND 2011
(In Thousands of US Dollars)
Three months ended Year ended
December 31
December 31
2012 2011 2012 2011
CASH FLOWS FROM
INVESTING ACTIVITIES
Purchase of property,
plant and equipment $ (5,407) $ (38,111) $ (58,444) $ (59,858)
and land use rights
Decrease (increase)
in deposits for - 16,421 4,543 (4,066)
purchase of property,
plant and equipment
Increase in other - (607) - (713)
assets
Payment for
derivative financial - - (156) -
instrument
Proceeds from
disposal of property, - 52 264 52
plant and equipment
and other assets
Cash received from
finance lease 627 - 1,864 -
receivable
Increase in fixed
deposits maturing (45,953) (437) (14,999) (34,825)
over three months
Net cash used in $ (50,733) $ (22,682) $ (66,928) $ (99,410)
investing activities
CASH FLOWS FROM
FINANCING ACTIVITIES
Cash dividends paid $ (3,136) $ $ (12,545) $ (8,961)
(2,240)
Proceeds from Trust 3,558 - 3,558 -
Receipt loans
Proceeds from bank 4,824 - 4,824 -
loans
Net cash provided by $
(used in) financing $ 5,246 (2,240) $ (4,163) $ (8,961)
activities
Net increase
(decrease) in cash 2,092 (37,925) 38,680 (113,691)
and cash equivalents
Cash and cash
equivalents at 155,239 154,793 118,510 228,067
beginning of period
Effect of exchange 1,642
rate changes on cash 507 648 4,134
and cash equivalents
Cash and cash
equivalents at end of $ 157,838 $ 118,510 $ 157,838 $ 118,510
period
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIODS ENDED DECEMBER 31, 2012 AND 2011
(In Thousands of US Dollars)
1. Accumulated other comprehensive income represents foreign currency
translation adjustments. The comprehensive income (loss) was $36,606 and
($5,611) for the three months ended December 31, 2012 and 2011 respectively.
2. Business segment information:
The Company's business is separated into the Telecommunication Components
Assembly – ("TCA") and Flexible Printed Circuit ("FPC") segments in 2012.
Since the first quarter of 2012, the Consumer Electronic Communication
Products ("CECP") segment fell below the threshold prescribed under FASB ASC
280-10-50-12 and the CECP segment was combined with the TCA segment. In the
fourth quarter of 2012, the net loss from the FPC segment was above the
threshold prescribed under FASB ASC 280-10-50-12 and the FPC segment was
separated from the TCA segment.
Three months ended Year ended
December 31 December 31
2012 2011 2012 2011
Net sales CONTINUING
BUSINESS:
- TCA $ 459,618 $ 123,497 $ 1,118,196 $ 509,124
- FPC 8,846 5,576 29,727 15,953
Total net sales from $ 468,464 $ 129,073 $ 1,147,923 $ 525,077
continuing business
Net (LOSS) INCOME FROM
CONTINUING BUSINESS
- TCA $ 38,799 $ 3,491 $ 75,723 $ 17,465
- FPC (2,030) (4,327) (6,835) (14,022)
- Corporate (268) (2,289) (1,273) (3,857)
Total net income
(loss) from continuing $ 36,501 $ (3,125) $ 67,615 $ (414)
business
Dec. 31, 2012 Dec. 31,
2011
Identifiable assets by SEGMENT:
- TCA $ 477,083 $ 239,734
- FPC 12,912 50,915
- Corporate 145,937 132,915
Total assets $ 635,932 $ 423,564
NAM TAI ELECTRONICS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIODS ENDED DECEMBER 31, 2012 AND 2011
(In Thousands of US Dollars)
3. A summary of the net sales, net income (loss) and long-lived assets by
geographical areas is as follows:
Three months ended Year ended
December 31 December 31
2012 2011 2012 2011
Net sales from operations
within:
- PRC, excluding Hong
Kong:
Unaffiliated $ 468,464 $ 129,073 $ 1,147,923 $ 525,077
customers
Intercompany 14,595 133 56,121 945
sales
- Intercompany (14,595) (133) (56,121) (945)
eliminations
Total net sales $ 468,464 $ 129,073 $ 1,147,923 $ 525,077
net Income (LOSS) from
operations within:
- PRC, excluding Hong $ 36,957 $ (311) $ 70,205 $ 5,951
Kong
- Hong Kong (456) (2,814) (2,590) (6,365)
Total net income (loss) $ 36,501 $ (3,125) $ 67,615 $
(414)
Dec. 31, 2012 Dec. 31,
2011
LONG-LIVED assets WITHIN:
- PRC, excluding Hong $ 163,794 $ 144,788
Kong
- Hong Kong 4,293 4,586
Total long-lived $ 168,087 $ 149,374
assets
Please refer to the Nam Tai website (www.namtai.com) or the SEC website
(www.sec.gov) for Nam Tai press releases and financial statements.
SOURCE Nam Tai Electronics, Inc.
Website: http://www.namtai.com
Contact: Investor relations contact: Mr. Kevin McGrath, Managing Partner of
Cameron Associates, +1-212-245-4577, kevin@cameronassoc.com
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