Innolux Corporation Announces Unaudited Second Quarter 2013

EBITA Margin 25.3% Record High Since Inception in 2010

News provided by

Innolux Corporation

Aug 08, 2013, 04:07 ET

JHUNAN, Aug. 8, 2013 /PRNewswire-FirstCall/ -- Innolux Corporation ("INX", "The Company") (TAIEX: 3481) today announced its second quarter 2013 results. Combined net sales for the second quarter 2013 amounted to NT$ 111,518 million, a decrease of 4.5% over the previous quarter's NT$ 116,775 million due to termination of touch panel lamination business. Without the influence from lamination business termination, the second quarter 2013 revenue increased 8.1% over the previous quarter. Gross profit was NT$ 13,782 million, for a gross margin of 12.4%. Operating profit totaled NT$ 8,067 million with an operating margin of 7.2%. Net profit attributable to the shareholders of the parent company amounted to NT$ 4,071 million. EPS equaled NT$ 0.45.

The company's EBITDA margin reached 25.3% in Q2 attributed to product portfolio management, operating efficiency improvement and inventory management. It is also the historical high since inception in 2010. Net debt to equity came down from 153.2% in the second quarter last year to 93.7% in the second quarter this year -- the lowest level for the past two years. The significant improvement is a demonstration of INX's continued improvement in operating efficiency. Net inventory as of the end of second quarter 2013 was NT$ 44,652 million, slightly down from the previous quarter, and the inventory turnover day was 42 days.

The Company shipped 7,019 thousand square meters of panel in the second quarter 2013, which represents a 9.4% increase quarter-over-quarter. Blended area ASP for TFT-LCD panels averaged US$ 520 per square meter. The Company shipped 37.8 million large-sized units in the second quarter 2013, an increase of 16.5% over 32.4 million units shipped in the first quarter 2013. Combined small and medium-sized revenue for second quarter 2013 amounted to NT$ 24,583 million, a decrease of 20.3% compared against the previous quarter due to termination of touch panel lamination business. The company shipped 115.6 million small and medium-sized units during the second quarter 2013, a decrease of 5.6% over the 107.8 million units shipped in the previous quarter.

In terms of product application, Small & Medium, Mobile PC, Desktop monitor, LCD TV panels accounted for 19%, 16%, 19% and 45% of our net sales, respectively. In terms of product size, 10-inch and below, 10-to-20-inch, 20-to-30-inch, 30-to-40-inch, 40-inch and above panels accounted for 24%, 19%, 21%, 15%, and 21% of our net sales, respectively.

INX Unaudited 2Q 2013 Income Statement -- QoQ Comparison

Units: NTD million except per share data

2Q 2013

1Q 2013

QoQ%

2Q 2012

Net Sales

111,518

116,775

-4.5%

112,522

   Cost of Goods Sold

97,736

87.6%

107,734

92.3%

-9.3%

114,479

101.7%

Gross Profit (Loss)

13,782

12.4%

9,041

7.7%

52.4%

(1,957)

-1.7%

    Operating Expense

5,715

5.1%

5,748

4.9%

-0.6%

5,738

5.1%

Operating Income (Loss)

8,067

7.2%

3,293

2.8%

145.0%

(7,695)

-6.8%

Net Non-operating Income(Exp.)

(3,817)

-3.4%

(1,607)

-1.4%

-

(2,188)

-1.9%

Income before Tax

4,250

3.8%

1,686

1.4%

152.1%

(9,883)

-8.8%

EBITDA (1)

28,241

25.3%

24,130

20.7%

17.0%

14,314

12.7%

Net Income (Loss)

4,069

3.6%

1,683

1.4%

141.8%

(9,567)

-8.5%

Net Income (Loss)-Parent

4,071

3.7%

1,684

1.4%

141.7%

(9,565)

-8.5%

Basic EPS (2)

0.45

0.19

(1.35)

Notes:

  1. EBITDA = Operating Income + Depreciation & Amortization
  2. Basic EPS = Net Income-Parent / Weighted Average of Outstanding Common Shares
  3. Capital Stock (common): NT$91.02 billion
  4. All figures are unaudited, prepared by Innolux Corporation. Starting 2013, Innolux Corporation prepares financial statements in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS).
  5. Combined figures presented refer to results from other TFT-LCD related subsidiaries in which Innolux Corporation has 50% or more ownership. Inter-company transactions between Innolux Corporation and these companies have been eliminated to avoid double-counting.

INX Unaudited 2Q 2013 Balance Sheet

NT$ million

2013.6.30

2013.3.31

2012.6.30

Cash & Short Term Investment

36,120

40,780

57,639

Inventory

44,652

45,161

61,104

Total Assets

524,678

557,659

636,783

Short Term Debt (1)

88,933

100,413

118,492

Long Term Debt (2)

128,143

142,744

205,647

Shareholders' Equity (3)

193,117

190,269

173,961

Net Debt to Shareholders' Equity

93.7%

106.4%

153.2%


Depreciation & Amortization

20,173

20,837

22,007

Capital Expenditure

4,579

4,454

3,290

Notes:

  1. Short term debt = (short-term bank loan + commercial papers + current portion of long term loan + obligations under capital leases)
  2. Long term debt = (long-term bank loan + corporate bonds + obligations under capital leases)
  3. Capital Stock (common): NT$91.02 billion; Book value per common stock: NT$ 21.22
  4. All figures are unaudited, prepared by Innolux Corporation. Starting 2013, Innolux Corporation prepares financial statements in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS).
  5. Combined figures presented refer to results from other TFT-LCD related subsidiaries in which Innolux Corporation has 50% or more ownership. Inter-company transactions between Innolux Corporation and these companies have been eliminated to avoid double-counting.

Announcement Contact:

Chen-Hui Lin                                                            Spokesperson                                                           
Tel: +886-(0)6-505-3760                                            
Cell: +886-(0)968-960-866                                         
Email: [email protected]                                                

Anita Chien
Media Contact
Tel: +886-(0)6-505-1888 ext.47153
Cell: +886-(0)911-572-225
Email: [email protected]

SOURCE Innolux Corporation