NAM TAI ELECTRONICS, INC. 
By 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 YearlyResults
----------------- -------------
Q4 2012 Q4 2011 YoY(%)(d) 2012 2011 YoY(%)(d)
------- ------- -------- ---- ---- --------
Net sales (a) $468,464 $129,073 263 $1,147,923 $525,077 118
------------ -------- -------- --- ---------- -------- ---
Gross profit (a) $48,964 $1,238 3,855 $105,777 $19,252 449
--------------- ------- ------ ----- -------- ------- ---
% of sales 10.5% 1.0% - 9.2% 3.7% -
---------- ---- --- --- --- --- ---
Operating income
(loss) (a) $38,227 $(9,054) - $73,307 $(11,354) -
---------------- ------- ------- --- ------- -------- ---
% of sales 8.2% (7.0%) - 6.4% (2.2%) -
---------- --- ----- --- --- ----- ---
per share
(diluted) $0.84 $(0.20) - $1.62 $(0.25) -
---------- ----- ------ --- ----- ------ ---
Net income (loss)
(b) (c) $36,606 $(5,611) - $66,921 $505 13,152
----------------- ------- ------- --- ------- ---- ------
% of sales 7.8% (4.3%) - 5.8% 0.1% -
---------- --- ----- --- --- --- ---
Basic earnings
(loss) per share $0.82 $(0.13) - $1.49 $0.01 14,800
----------------- ----- ------ --- ----- ----- ------
Diluted earnings
(loss) per share $0.80 $(0.13) - $1.48 $0.01 14,700
----------------- ----- ------ --- ----- ----- ------
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.
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SUPPLEMENTARY INFORMATION (UNAUDITED) IN THE FOURTH QUARTER OF 2012
1. Quarterly Sales
(In thousands of US Dollars, except percentage information)
----------------------------------------------------------
Quarter 2012 2011 YoY(%) YoY(%)
(Quarterly) (Quarterly accumulated)
--- --- ----------- -----------------------
1st
Quarter $94,062 $142,410 (33.9) (33.9)
-------- ------- -------- ----- -----
2nd
Quarter $205,146 $125,994 62.8 11.5
-------- -------- -------- ---- ----
3rd
Quarter $380,251 $127,600 198.0 71.6
-------- -------- -------- ----- ----
4th
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.
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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 cashto
current
liabilities 0.58 0.88
--------------- ---- ----
Current ratio 1.67 2.22
------------- ---- ----
Ratio of total
assets to total
liabilities 2.33 3.38
---------------- ---- ----
Return on equity 19.5% 0.2%
---------------- ---- ---
Ratio of total
liabilities to
total equity 0.75 0.42
--------------- ---- ----
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 Record Date Payment Date Dividend Status
Payment (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 (2) 10,362 5,657 28,440 21,439
Selling expenses 279 1,023 2,666 3,919
Research and development expenses 96 661 1,364 2,297
Impairment loss on goodwill - 2,951 - 2,951
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 income tax 42,162 (2,724) 84,914 558
Income tax expenses (5,661) (401) (17,299) (972)
------ ---- ------- ----
Income (loss) from continuing business 36,501 (3,125) 67,615 (414)
====== ====== ====== ====
Income (loss) from discontinued business, net of tax 105 (2,486) (694) 919
--- ------ ---- ---
Consolidated net income (loss) $36,606 $(5,611) $66,921 $505
======= ======= ======= ====
Basic net income (loss) per share: -
Basic income (loss) per share from continuing business $0.81 $(0.07) $1.51 $(0.01)
===== ====== ===== ======
Basic income (loss) per share from discontinued business $0.01 $(0.06) $(0.02) $0.02
===== ====== ====== =====
Basic net income (loss) per share $0.82 $(0.13) $1.49 $0.01
===== ====== ===== =====
Diluted net income (loss) per share:
Diluted income (loss) per share from continuing business $0.80 $(0.07) $1.49 $(0.01)
Diluted income (loss) per share from discontinued business $0.00 $(0.06) $(0.01) $0.02
Diluted net income (loss) per share $0.80 $(0.13) $1.48 $0.01
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 hasgiven 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 $0.7million for 2011, income from scrap of $0.5million,
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'
equity $636,044 $457,743
-------- --------
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) $36,606 $(5,611) $66,921 $505
-----------------------------
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 rights and other assets 8,519 2,808 26,133 16,068
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, plant and
equipment (4) 186 (810) 231
(Gain) loss on derivative financial instrument (99) - 57 -
Share-based compensation expenses 164 - 547 112
Decrease (increase) in deferred income taxes 258 101 5,460 (2,538)
Unrealized exchange gain (507) (1,642) (648) (4,134)
Changes in current assets and liabilities:
Decrease (increase) in accounts receivable 1,715 (6,150) (81,245) (298)
Decrease (increase) in inventories 50,896 (2,842) (25,064) (2,881)
Decrease (increase) in prepaid expenses and other
receivables 4,386 (8,967) (10,030) (14,207)
(Increase) decrease in income tax recoverable (2) 108 (169) 105
(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 payables 1,132 3,879 15,340 4,173
Increase (decrease) in income tax payable 437 (2,099) 3,160 (4,228)
--- ------ ----- ------
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 monthsended Year ended
December 31 December 31
2012 2011 2012 2011
---- ---- ---- ----
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of property, plant and
equipment and land use rights $(5,407) $(38,111) $(58,444) $(59,858)
Decrease (increase) in deposits
for purchase of property, plant
and equipment - 16,421 4,543 (4,066)
Increase in other assets - (607) - (713)
Payment for derivative financial
instrument - - (156) -
Proceeds from disposal of
property, plant and equipment
and other assets - 52 264 52
Cash received from finance lease
receivable 627 - 1,864 -
Increase in fixed deposits
maturing over three months (45,953) (437) (14,999) (34,825)
-------- ----- -------
Net cash used in investing
activities $(50,733) $(22,682) $(66,928) $(99,410)
--------- -------- --------
CASH FLOWS FROM FINANCING
ACTIVITIES
Cash dividends paid $(3,136) $(2,240) $(12,545) $(8,961)
Proceeds from Trust Receipt
loans 3,558 - 3,558 -
Proceeds from bank loans 4,824 - 4,824 -
----- --- ---
Net cash provided by (used in)
financing activities $5,246 $(2,240) $(4,163) $(8,961)
------ ------ -------
Net increase (decrease) in cash
and cash equivalents 2,092 (37,925) 38,680 (113,691)
Cash and cash equivalents at
beginning of period 155,239 154,793 118,510 228,067
Effect of exchange rate changes
on cash and cash equivalents 507 1,642 648 4,134
Cash and cash equivalents at end
of period $157,838 $118,510 $157,838 $118,510
======== ======== ========
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
continuing business $468,464 $129,073 $1,147,923 $525,077
======== ======== ========== ========
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 business $36,501 $(3,125) $67,615 $(414)
======= ======= ======= =====
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
customers $468,464 $129,073 $1,147,923 $525,077
Intercompany sales 14,595 133 56,121 945
-Intercompany
eliminations (14,595) (133) (56,121) (945)
------- ---- ------- ----
Total net sales $468,464 $129,073 $1,147,923 $525,077
======== ======== ========== ========
net Income (LOSS) from operations within:
-PRC, excluding
Hong Kong $36,957 $(311) $70,205 $5,951
- 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 Kong $163,794 $144,788
-------- --------
- Hong Kong 4,293 4,586
----- -----
Total long-lived assets $168,087 $149,374
======== ========
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.
