Nam Tai Electronics, Inc. Q3 2013 Sales up 61%, Gross profit margin at 8.2%

SHENZHEN, China, Nov. 4, 2013 /PRNewswire/ -- Nam Tai Electronics, Inc. ("Nam Tai" or the "Company") (NYSE Symbol: NTE) today announced its unaudited results for the third quarter ended September 30, 2013.

KEY HIGHLIGHTS

(In thousands of US Dollars, except per share data, percentages and as otherwise stated)


Quarterly Results

Nine months Results


Q3 2013

Q3 2012

YoY(%)(d)

9M 2013

9M 2012

YoY(%)(d)

Net sales (a)

$284,199

$175,980

61

$620,900

$365,917

70

Gross profit (a)

$23,380

$19,930

17

$47,114

$40,105

17

% of sales

8.2%

11.3%

-

7.6%

11.0%

-

Operating income (a)

$19,328

$14,265

35

$30,483

$24,487

24

% of sales

6.8%

8.1%

-

4.9%

6.7%

-

per share (diluted)

$0.43

$0.31

39

$0.67

$0.54

24

Net income (loss) (b)(c)

$17,997

$24,552

(27)

($8,950)

$30,315

-

% of sales

6.3%

14.0%

-

(1.4%)

8.3%

-

Basic earnings (loss) per share

$0.40

$0.55

(27)

($0.20)

$0.68

-

Diluted earnings (loss) per share

$0.40

$0.54

(26)

($0.20)

$0.67

-

Weighted average number of shares ('000)







Basic

45,273

44,804


45,206

44,804


Diluted

45,394

45,304


45,670

45,093


Notes:

(a)     The net sales, gross profit and operating income excluded the discontinued operations in Wuxi. The Wuxi operations for the current and prior periods were classified as "discontinued operations" and disclosed in the statement of comprehensive income separately under (loss) income from discontinued operations (net of tax) and not included in the presentation of net sales, gross profit and operating income that form parts of the operating income of "continuing operations". For the three months ended September 30, 2013 and September 30, 2012, the discontinued operations recognized net sales of nil and $206.0 million, a gross (loss) profit of ($0.2) million and $15.4 million, and an operating (loss) income of ($0.4) million and $13.4 million respectively. For the nine months ended September 30, 2013 and September 30, 2012, the discontinued operations recognized net sales of $47.1 million and $337.6 million, a gross (loss) profit of ($0.4) million and $16.2 million, and an operating (loss) income of ($38.2) million and $7.9 million respectively.

(b)     Net income for the three months ended September 30, 2013 included (i) loss from discontinued operations (net of tax) of $0.4 million and (ii) income from continuing operations in Shenzhen of $18.4 million (including interest income $1.4 million, gain on exchange difference of $1.0 million and income from sanctioned payment of $0.2 million upon the resolution of a legal dispute).

(c)      Net loss for the nine months ended September 30, 2013 included (i) loss from discontinued operations (net of tax) of $41.5 million (including impairment loss on fixed assets of $35.0 million, net deferred tax expenses of $3.7 million and layoff compensation of $1.0 million in Wuxi) and (ii) income from continuing operations of $32.6 million (including provision for bad debts of $2.2 million, layoff compensation of $1.5 million due to streamlining the organization structure, other and interest income of $10.5 million, which consisted of interest income of $3.1 million, gain on exchange difference of $2.5 million, legal liability provision on legal case reversal of $1.0 million and income from sanctioned payment of $1.0 million upon the resolution of a legal dispute).

(d)     This information has been published on the Company's website http://www.namtai.com/quarterly/quarterly.htm under the quarterly earnings report of Q3 2013 on page 7, Condensed Consolidated Statements of Comprehensive Income.


SUPPLEMENTARY INFORMATION (UNAUDITED) IN THE THIRD QUARTER OF 2013

1. Quarterly Sales

(In thousands of US Dollars, except percentage information)

Quarter

2013

2012

YoY(%)

(Quarterly)

YoY(%)

(Quarterly
accumulated)

1st Quarter

$168,799

$87,619

92.7

92.7

2nd Quarter

$167,902

$102,318

64.1

77.3

3rd Quarter

$284,199

$175,980

61.5

69.7

4th Quarter

-

$312,196



Total

$620,900

$678,113



Note:

* The above sales have excluded discontinued operations. Please see page 7 of the Company's Condensed Consolidated Statements of Comprehensive Income 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 Q3 2013 on page 7, Condensed Consolidated Statements of Comprehensive Income.

2. Key Highlights of Financial Position


As at September 30,

As at December 31,


2013

2012(a)

2012(a)

Cash on hand and fixed deposits maturing over three months

$238.6 million

$159.1million

$207.7 million

Ratio of cash(b) to current liabilities

1.09

0.52

0.58

Current ratio

2.91

1.89

2.02

Ratio of total assets to total liabilities

3.38

2.18

2.33

Return on equity

(3.3%)

12.0%

19.5%

Ratio of total liabilities to total equity

0.42

0.85

0.75

Debtors turnover

41 days

70 days

55 days

Inventory turnover

17 days

64 days

28 days

Average payable period

57 days

144 days

85 days

Notes:

(a)     Certain financial ratios of the Company as at September 30, 2012 and December 31, 2012 have been restated according to the reclassified assets and liabilities resulted from discontinued operations. 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 Q2 2013 on page 8, Condensed Consolidated Balance Sheets.

(b)     According to the definition of "Balance Sheet" under the Financial Accounting Standard Board ("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 with amount of $75.5 million, $3.9 million and $49.8 million as at September 30, 2013, September 30, 2012 and December 31, 2012 are not classified as cash on hand but require separate disclosure.

OPERATING RESULTS

Net sales, gross profit and operating income for the third quarter of 2013 and the same quarter of 2012 were presented excluding the discontinued operations. Net sales in the third quarter of 2013 were $284.2 million, an increase of 61.5%, compared to the net sales of $176.0 million, excluding the discontinued operations, for the same quarter of 2012. Gross profit in the third quarter of 2013 was $23.4 million, an increase of 17.3%, compared to $19.9 million in the third quarter of last year. Gross profit margin for the third quarter of 2013 was 8.2%, a decrease of 3.1%, compared to 11.3% in the third quarter of last year. Operating income for the third quarter of 2013 was $19.3 million, an increase of 35.5%, compared to $14.3 million in the third quarter of last year.

With respect to the discontinued operations (primarily the Wuxi production), for the third quarter of 2013 and the same period of 2012, the net sales were nil and $206.0 million, gross (loss) profit were ($0.2) million and $15.4 million, and operating (loss) income were ($0.4) million and $13.4 million respectively.

After considering the (loss) income from discontinued operations (net of tax), net income in the third quarter of 2013 was $18.0 million or $0.40 per diluted share, a decrease of 26.7%, compared to net income of $24.6 million or $0.54 per diluted share, in the third quarter of last year. The decline was primarily the result of the impact of the lost order in the Company's operation in Wuxi, represented by the income difference between the $0.4 million loss from discontinued operations (net of tax) in the third quarter of 2013 compared with $12.9 million income in same period last year. The impact of the lost order in Wuxi was partially offset by the increase in income from continuing operations (in Shenzhen) to $18.4 million in the third quarter of 2013 from $11.6 million in same period of last year as the Company's Shenzhen manufacturing facility began mass production of high-resolution LCMs for smartphones in September 2012. The Company also achieved savings through streamlining its organization structure and cost control.

Net sales, gross profit and operating income for the nine months ended September 30, 2013 and the same period of 2012 were presented excluding the discontinued operations (primarily the Wuxi production). For the nine months ended September 30, 2013, net sales were $620.9 million, excluding the discontinued operations, an increase of 69.7%, compared to the net sales of $365.9 million, excluding the discontinued operations, for the same period of 2012. Gross profit in the nine months ended September 30, 2013 was $47.1 million, an increase of 17.5%, compared to $40.1 million in the same period of last year. Gross profit margin for the nine months ended September 30, 2013 was 7.6%, a decrease of 3.4%, compared to 11.0% in the same period of last year. Operating income for the nine months ended September 30, 2013 was $30.5 million, an increase of 24.5%, compared to $24.5 million in the same period of last year.

For the nine months ended September 30, 2013 and September 30, 2012, the discontinued operations recognized net sales of $47.1 million and $337.6 million, gross (loss) profit of ($0.4) million and $16.2 million, and operating (loss) income of ($38.2) million and $7.9 million, respectively. After considering the (loss) income from discontinued operations (net of tax), net loss for the nine months ended September 30, 2013 was $9.0 million, or $0.20 per diluted share, compared to net income of $30.3 million, or $0.67 per diluted share, in the same period of last year. The net loss for the nine months ended September 30, 2013 was primarily attributable to the loss from discontinued operations which included the impairment loss of fixed assets of $35.0 million and net deferred tax expenses of $3.7 million.  

Please see page 7 of the Company's Condensed Consolidated Statements of Comprehensive Income 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 Q3 2013 on page 7, Condensed Consolidated Statements of Comprehensive Income.

COMPANY OUTLOOK

The Company recorded revenue of $284.2 million excluding discontinued operations in Wuxi in the third quarter of 2013. This revenue was attributed to the production of high-resolution LCMs for smartphones at the Company's Shenzhen facility. LCM manufacturing represents the core business of the Company.

The Company's core business has continued to encounter challenging market conditions. Firstly, the Company's production costs have been under rising cost pressures due to escalating labor cost, inflation and labor shortage. Secondly, our core LCM business has experienced very stiff industry competition and a volatile market demand resulting in high fluctuation and changes in orders. The Company's LCM production operation at its Wuxi manufacturing facility was discontinued to minimize costs and preserve cash at the end of the second quarter of 2013 due to the lack of new orders. The Company has continued its preparations for the sale of the Wuxi land and facility.

As announced on August 30, 2013, the Company received an additional new purchase order for the production of high-resolution LCMs for smartphones from an existing customer to extend the production at its Shenzhen facility up to the end of December 2013 and also received minor LCM orders for automobile for a period up to the first quarter of 2014.

Despite the challenging market conditions, Nam Tai is committed to securing new customers to maintain and grow its core LCM business. Nam Tai has a long held established reputation as a high quality and reliable LCM provider. The Company has a strong balance sheet, state of the art manufacturing facilities and a highly skilled management and technical team.

The Company has two lots of lands in Shenzhen. In conjunction and consistent with Shenzhen government's city rezoning project, the management plans to redevelop the land of its existing Shenzhen facility in Gushu by converting this existing facility into high-end commercial property. The feasibility study reports prepared by another two professional real estate advisory firms regarding the lot of land in Gushu have been completed and are expected to be available within the next few days on the Company's website for your reference. The initial results of these study reports are in favor of redeveloping this lot of land instead of selling it (please refer to this information on the website at http://www.namtai.com/investors#investors/news). The board of directors of the Company (the "Board") has provided its initial approval to proceed further in respect to the land redevelopment project. However, there can be no assurance that the Company will be able to obtain all requisite permits and approvals from relevant government authorities in relation to the redevelopment of the land, or to successfully redevelop the land.

The Company is relatively debt free and maintains a financial position with cash and deposits of $238.6 million as at September 30, 2013. This financial condition allows the Company to support the growth and development of the core LCM business, if market permits, as well as support future land development needs.

The information contained in or that can be accessed through the websites mentioned in this announcement does not form part of this announcement.

PAYMENT OF QUARTERLY DIVIDENDS FOR 2013 AND 2014

As announced on November 5, 2012, the Company has set the payment schedule of quarterly dividends for 2013. The dividend for Q4 2013 was paid on October 18, 2013. The following table updates the previously announced schedule for declaration and payment of quarterly dividends in 2013.

Quarterly Payment

Record Date

Payment Date

Dividend

(per share)

Status

Q1 2013

December 31, 2012

January 18, 2013

$0.15

PAID

Q2 2013

March 28, 2013

April 19, 2013

$0.15

PAID

Q3 2013

June 28, 2013

July 19, 2013

$0.15

PAID

Q4 2013

September 30, 2013

October 18, 2013

$0.15

PAID

Total for Full Year 2013

$0.60


The Company announced today that its Board authorized a plan to reduce the Company's annual dividend to $0.08 ($0.02 x 4 quarters) from $0.60 ($0.15 x 4 quarters) per outstanding share of the Company's common stock, effective for the first quarter of 2014. After extensive review, the Board determined that reducing the dividend, while still maintaining it at a competitive level, is a prudent measure to preserve cash to further enhance the Company's balance sheet and provide it with additional flexibility for potential future opportunities. The Company recognizes the importance of the dividend to our shareholders and the significance of this decision, but it believes it is the right precautionary action at this time given the highly competitive market environment to further strengthen the Company for the long-term, while still providing an attractive dividend.

Quarterly Payment

Record Date

Payment Date

Dividend

(per share)

Status

Q1 2014

December 31, 2013

before January 31, 2014

$0.02


Q2 2014

March 31, 2014

before April 30, 2014

$0.02


Q3 2014

June 30, 2014

before July 31, 2014

$0.02


Q4 2014

September 30, 2014

before October 31, 2014

$0.02


Total for Full Year 2014

$0.08


The Company's decision to continue dividend payments in 2014 as set out and confirmed in the above table does not necessarily mean that cash dividend payments will continue thereafter year 2014. Whether future dividends after 2014 will be declared will depend upon Company's future growth and earnings at each relevant period, of which there can be no assurance, and the Company's cash flow needs for business transformation. Accordingly, there can be no assurance that cash dividends on the Company's common shares will be declared beyond those declared for 2014, we also cannot assure you 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 Q4 2013 and 2014

To maintain the efficiency of delivering the Company's quarterly financial results to the market, the Company's management has decided to follow approximately the same schedule of 2013 to release the quarterly financial results for 2014. Details of the expected quarterly release dates are as follows:-


Announcements of Financial Results

Quarter

Date of release

Q4 2013

January 27, 2014 (Mon)

Q1 2014

April 28, 2014 (Mon)

Q2 2014

August 4, 2014 (Mon)

Q3 2014

November 3, 2014 (Mon)

Q4 2014

February 2, 2015 (Mon)

FORWARD-LOOKING STATEMENTS AND FACTORS THAT COULD CAUSE OUR SHARE PRICE TO DECLINE

Certain statements included in this press release, 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 business; the negative effect of the litigation faced by the Company. 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 2014 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 2014, 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, i.e. LCD 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 COMPREHENSIVE INCOME

FOR THE PERIODS ENDED SEPTEMBER 30, 2013 AND 2012

(In Thousands of US Dollars except share and per share data)



Three months ended

September 30

Nine months ended

September 30


2013

2012

2013

2012






Net sales (1)

$ 284,199

$   175,980

$ 620,900

$   365,917

Cost of sales

260,819

156,050

573,786

325,812






Gross profit

23,380

19,930

47,114

40,105






Costs and expenses





General and administrative expenses

3,945

4,990

16,268

13,530

Selling expenses

107

641

363

1,372

Research and development expenses

-

34

-

716


4,052

5,665

16,631

15,618






Operating income

19,328

14,265

30,483

24,487






Other income, net (2)

2,022

1,119

7,357

2,508

Interest income (2)

1,411

623

3,123

1,419






Income before income tax

22,761

16,007

40,963

28,414

Income tax expenses

(4,358)

(4,398)

(8,406)

(10,724)






Income from continuing operations

18,403

11,609

32,557

17,690

(Loss) income from discontinued operations, net of tax

(406)

12,943

(41,507)

12,625






Consolidated net income (loss)

17,997

24,552

(8,950)

30,315

Other comprehensive income

-

-

-

-

Consolidated comprehensive income (loss)

$  17,997

$  24,552

$    (8,950)

$     30,315






Basic net earnings (loss) per share:





Basic earnings per share from continuing operations

$      0.41

$    0.26

$       0.72

$        0.40

Basic (loss) earnings per share from discontinued operations

$    (0.01)

$    0.29

$     (0.92)

$       0.28

Basic net earnings (loss) per share

$     0.40

$    0.55

$     (0.20)

$      0.68






Diluted net earnings (loss) per share:





Diluted earnings per share from continuing operations

$     0.41

$    0.26

$      0.71

$    0.39

Diluted (loss) earnings per share from discontinued operations

$    (0.01)

$    0.28

$    (0.91)

$    0.28

Diluted net earnings (loss) per share

$     0.40

$    0.54

$    (0.20)

$    0.67

Weighted average number of shares ('000)





    Basic

45,273

44,804

45,206

44,804

Diluted

45,394

45,304

45,670

45,093







Notes:

(1)     The sales from the discontinued operations were nil and $206.0 million for the three months ended September 30, 2013 & 2012 respectively;

(2)     The other and interest income of $3.4 million from continuing operations has included gain on exchange difference of $1.0 million and interest income of $1.4 million for the three months ended September 30, 2013.

 

NAM TAI ELECTRONICS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

AS AT SEPTEMBER 30, 2013 AND DECEMBER 31, 2012

(In Thousands of US Dollars)




September 30

     December 31


2013

2012

ASSETS



Current assets:



Cash and cash equivalents

$    163,144

$     157,838

Fixed deposits maturing over three months

75,458

49,824

   Accounts and notes receivable, net

93,111

101,666

   Derivative financial instruments

241

99

   Inventories

35,802

46,732

   Prepaid expenses and other receivables

16,091

21,143

   Finance lease receivable – current

3,833

3,583

   Deferred tax assets – current

636

444

   Income taxes recoverable

172

169

  Assets held for sale

44,671

-

   Current assets from discontinued operations

1,126

168,532

            Total current assets

434,285

550,030




Property, plant and equipment, net

54,485

64,226

Finance lease receivable – non current

5,912

8,553

Land use rights

11,019

11,218

Deferred tax assets – non current

2,354

1,690

Other assets

107

327

            Total assets

$   508,162

$   636,044




LIABILITIES AND SHAREHOLDERS' EQUITY



Current liabilities:



Notes payable

$               -

$           395

  Accounts payable

118,556

141,271

  Accrued expenses and other payables

19,300

33,428

  Dividend payable

6,791

26,882

  Income tax payable

3,764

2,688

  Current liabilities from discontinued operations

646

67,209

            Total current liabilities

149,057

271,873

   Deferred tax liabilities

1,379

1,379

            Total liabilities

150,436

273,252




EQUITY



Shareholders' equity:



   Common shares

453

448

   Additional paid-in capital

291,692

287,602

   Retained earnings

65,589

74,750

   Accumulated other comprehensive loss

(8)

(8)

            Total shareholders' equity

357,726

362,792

            Total liabilities and shareholders' equity

$   508,162

$   636,044

 

NAM TAI ELECTRONICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE PERIODS ENDED SEPTEMBER 30, 2013 AND 2012

(In Thousands of US Dollars)



Three months ended

September 30

Nine months ended

September 30



2013

2012

2013

2012

CASH FLOWS FROM OPERATING ACTIVITIES






Consolidated net income (loss)


$  17,997

$   24,552

$   (8,950)

$    30,315

Adjustments to reconcile net income (loss) to net 
     cash provided by operating activities:






Depreciation and amortization of property, 
          plant and equipment, land use rights and 
          other assets


3,240

7,161

18,149

17,614

(Reversal) provision for inventories


(1)

(32)

(133)

1,308

Reversal for loss on purchase commitments


-

(496)

-

-

(Reversal) provision for goods return


(6)

(37)

(17)

603

(Reversal) provision for bad debts


-

(288)

2,158

606

(Gain) loss on disposal of property, plant and equipment


(358)

235

(901)

(806)

(Gain) loss on disposal of other assets


(197)

-

366

-

Impairment loss on fixed assets and land use rights


89

-

34,955

-

(Gain) loss on derivative financial instruments                          


(99)

-

(561)

156

Share-based compensation expenses


39

383

1,497

383

Loss on liquidation of a subsidiary


235

-

235

-

(Increase) decrease in deferred income taxes


(113)

813

2,887

5,202

Unrealized exchange gain


(419)

(381)

(1,329)

(141)

Changes in current assets and liabilities:






(Increase) decrease in accounts receivable


(28,310)

(41,252)

60,439

(82,960)

Decrease (increase) in inventories


4,598

(41,993)

19,969

(75,960)

Decrease (increase) in prepaid expenses and other receivables


2,889

(319)

12,711

(14,416)

Increase in income tax recoverable


(1)

(1)

(3)

(167)

(Decrease) increase in notes payable


(638)

(13,572)

(4,273)

4,038

Increase (decrease) in accounts payable


23,507

74,360

(68,884)

159,486

(Decrease) increase in accrued expenses and other payables


(3,067)

12,757

(18,639)

16,113

(Decrease) increase in income tax payable


(98)

1,248

611

2,723

   Total adjustments


1,290

(1,414)

59,237

33,782

Net cash provided by operating activities


$    19,287

$   23,138

$    50,287

$    64,097

 


NAM TAI ELECTRONICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE PERIODS ENDED SEPTEMBER 30, 2013 AND 2012

(In Thousands of US Dollars)

 



    Three months ended

    September 30

Nine months ended

September 30



2013

2012

2013

2012

CASH FLOWS FROM INVESTING ACTIVITIES






Purchase of property, plant and equipment and land use rights


$      (93)

$    (4,562)

$    (3,408)

$  (53,037)

Decrease in deposits for purchase of property, plant and equipment


-

254

-

4,543

Cash received from (payment of) derivative financial instruments


220

-

419

(156)

Proceeds from disposal of property, plant and equipment and other assets


564

42

6,008

12,491

Decrease in entrusted loan


-

3,956

-

-

Cash received from (increase in) finance lease receivable


818

898

2,391

(12,895)

 Decrease (increase) in fixed deposits maturing over three months


1,693

1,284

(25,634)

30,954

Net cash provided by (used in) investing activities


$     3,202

$     1,872

$   (20,224)

$   (18,100)







CASH FLOWS FROM FINANCING ACTIVITIES






Cash dividends paid


$    (6,791)

$    (3,137)

$   (20,302)

$     (9,409)

Proceeds from issue of shares


-

-

2,598

-

Repayment of entrusted loan


-

(3,956)

-

-

Repayment of Trust Receipt loans


-

(5,817)

(3,558)

-

Repayment of bank loans


-

(4,592)

(4,824)

-

Net cash used in financing activities


$    (6,791)

$   (17,502)

$   (26,086)

$     (9,409)







Net increase in cash and cash equivalents


$    15,698

$     7,508

$      3,977

$    36,588

Cash and cash equivalents at beginning of period


147,027

147,350

157,838

118,510

Effect of exchange rate changes on cash and cash equivalents


419

381

1,329

141

Cash and cash equivalents at end of period


$   163,144

$   155,239

$   163,144

$   155,239







 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED SEPTEMBER 30, 2013 AND 2012

(In Thousands of US Dollars)

1.      Accumulated other comprehensive loss represents foreign currency translation adjustments. The comprehensive income was $17,997 and $24,552 for the three months ended September 30, 2013 and 2012 respectively.

2.       Business segment information:

The Company's business was separated into the Telecommunication Components Assembly – ("TCA") and FPC segments in 2012. Since the first quarter of 2013, the FPC segment has been discontinued and only one TCA segment still existed.

3.  A summary of the net sales, net income (loss) and long-lived assets by geographical areas is as follows:

 


      Three months ended

        September 30

                  Nine months ended

                  September 30



2013

2012

2013

2012

NET SALES FROM OPERATIONS WITHIN:





   - PRC, excluding Hong Kong:





            Unaffiliated customers

$   284,199

$   175,980

$   620,900

$   365,917

            Intercompany sales

18

22,774

4,770

41,247






   - Intercompany eliminations

(18)

(22,774)

(4,770)

(41,247)






Total net sales

$   284,199

$   175,980

$   620,900

$   365,917






NET INCOME (LOSS) FROM OPERATIONS WITHIN:





   - PRC, excluding Hong Kong

$     18,702

$     12,374

$     34,607

$     19,824

   - Hong Kong

(299)

(765)

(2,050)

(2,134)






Total net income from continuing operations

$     18,403

$     11,609

$     32,557

$     17,690







 


                                                                                   Sep. 30, 2013

Dec. 31, 2012

LONG-LIVED assets WITHIN:



- PRC, excluding Hong Kong

$      61,464

$      71,151

- Hong Kong

4,040

4,293

Total long-lived assets

$      65,504

$      75,444

 

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.



RELATED LINKS
http://www.namtai.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.