-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OZOlCRV3KQHli7GmmT/vYPfQ7Gy2mnKgOBA89XPT4A2djV7ukXSS1ne7Yd6uMjks Z75J43YAHhXqBkJP5nlMbQ== 0000950127-03-000919.txt : 20030813 0000950127-03-000919.hdr.sgml : 20030813 20030813161627 ACCESSION NUMBER: 0000950127-03-000919 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030725 FILED AS OF DATE: 20030813 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NAM TAI ELECTRONICS INC CENTRAL INDEX KEY: 0000829365 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRONIC COMPONENTS, NEC [3679] IRS NUMBER: 000000000 STATE OF INCORPORATION: D8 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-31583 FILM NUMBER: 03841494 BUSINESS ADDRESS: STREET 1: 116 MAIN STREET STREET 2: 2ND FLOOR CITY: ROAD TOWN, TORTOLA STATE: D8 ZIP: 00000 BUSINESS PHONE: 85223410273 MAIL ADDRESS: STREET 1: C/O PAN PACIFIC I.R. LTD. STREET 2: 999 WEST HASTINGS STREET, SUITE 1790 CITY: VANCOUVER BC STATE: A1 ZIP: V6C 2W2 6-K 1 form6k.txt REPORT OF FOREIGN PRIVATE ISSUER SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------------------- FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of July 2003 Commission File Number: 0-16673 Nam Tai Electronics, Inc. -------------------------------------------------- (Exact name of registrant as specified in charter) British Virgin Islands ---------------------------------- (Jurisdiction of organization) 116 Main Street, Road Town, Tortola, British Virgin Islands ------------------------------------------------------------- (Address of principal executive offices) Registrant's telephone number, international: +852-2341-0273 Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F X Form 40-F --- --- Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): -------------- Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): -------------- Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes No X --- --- If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- -------------- This Form 6-K consists of the following: 1. Press release of Nam Tai Electronics, Inc., dated July 25, 2003, announcing its financial results for the second quarter of its 2003 fiscal year. NAM TAI ELECTRONICS, INC. SECOND QUARTER NEWS RELEASE REPRESENTED BY PAN PACIFIC I.R. LTD. CONTACT: Lorne Waldman 1790-999 WEST HASTINGS STREET President VANCOUVER, BC, CANADA V6C 2W2 E-MAIL: shareholder@namtai.com TEL: (604) 669-7800 FAX: (604) 669-7816 WEB: www.namtai.com TOLL FREE TEL/FAX: 1-800-661-8831 NAM TAI ELECTRONICS, INC. Q2 Net Income Up 200% to $11.5 Million vs. $3.8 Million, EPS $0.31 vs. $0.12 VANCOUVER, CANADA -- July 25, 2003 -- Nam Tai Electronics, Inc. ("Nam Tai" or the "Company") (NYSE Symbol: NTE; CBOE Symbol: QNA) today announced unaudited results for the second quarter ended June 30, 2003. KEY HIGHLIGHTS (In millions of US Dollars, except as otherwise stated) - ----------------------------------------------------------------------------------------------------------------------------- Quarterly Results Half-Year Results - ----------------------------------------------------------------------------------------------------------------------------- 2Q2003 2Q2002 YoY(%) 2H2003 2H2002 YoY(%) - ----------------------------------------------------------------------------------------------------------------------------- Net sales 116.7 52.3 123.1 204.7 103.5 97.7 - ----------------------------------------------------------------------------------------------------------------------------- Income from operations 10.9 7.0 55.8 19.8 10.1 95.1 - ----------------------------------------------------------------------------------------------------------------------------- per share(diluted) $0.30 $0.22 36.4 $0.54 $0.32 68.8 - ----------------------------------------------------------------------------------------------------------------------------- Net income 11.5 3.8 200.5 21.7 8.0 171.3 - ----------------------------------------------------------------------------------------------------------------------------- % of sales 9.8% 7.3% 10.6% 7.7% - ----------------------------------------------------------------------------------------------------------------------------- Basic earnings per share $0.32 $0.12 166.7 $0.60 $0.26 130.8 - ----------------------------------------------------------------------------------------------------------------------------- Diluted earning per share $0.31 $0.12 158.3 $0.59 $0.25 136.0 - ----------------------------------------------------------------------------------------------------------------------------- (Note: All share and earnings per share data have been adjusted for the 3 for 1 stock split effective June 30, 2003.)
Nam Tai's growth this quarter was mainly due to an increase in the sales of telecommunication components assemblies. The Company continues to maintain a strong financial position, with approximately $69.6 million of cash on hand. Supplementary Information (Unaudited) for the Second Quarter of 2003 1. Quarterly Sales Breakdown (In Thousands of US Dollars) --------------------------------------------------------------------------- Quarter 2002 2003 YoY(%) YoY(%) (Quarterly) (Quarterly accumulated) --------------------------------------------------------------------------- 1st Quarter (a)51,217 87,981 71.8% 71.8% --------------------------------------------------------------------------- 2nd Quarter (a)52,311 116,714 123.1% 97.7% --------------------------------------------------------------------------- 3rd Quarter 56,872 --------------------------------------------------------------------------- 4th Quarter 75,616 --------------------------------------------------------------------------- Total 236,016 204,695 --------------------------------------------------------------------------- Note (a): Sales of battery packs for the first and second quarter of 2002 were $5,096K and $2,753K respectively. Upon disposal of BPC on April 30, 2002, revenue from battery packs was no longer included in the total sales. 2. Net Sales Breakdown by Product Segment ----------------------------------------------------------------------------------------------------------------------- 2003 2002 ----------------------------------------------------------------------------------------------------------------------- Segment 2nd Quarter YTD 2nd Quarter YTD (%) (%) (%) (%) ----------------------------------------------------------------------------------------------------------------------- Assembling: - LCD Consumer Products 29% 34% 36% 36% - Telecom. Components Assembly 61% 55% 46% 49% Software Development Services 1% 1% 1% 1% ----------------------------------------------------------------------------------------------------------------------- Parts & Components : - LCD Panels 7% 7% 12% 9% - Transformers 2% 3% 5% 5% ----------------------------------------------------------------------------------------------------------------------- 100% 100% 100% 100% -----------------------------------------------------------------------------------------------------------------------
Note: In June 2003, we sold our transformers operation to a third party. Assembling included finished goods and modules, together with Software Development Services collectively termed as Consumer Electronic Products ("CEP"), while parts and components including LCD panels and transformers are termed ("LPT") for business segment classification. 3. Financial Position ----------------------------------------------------------------------------------------------------------------------- (unaudited) (audited) As at June 30 As at December 31 ----------------------------------------------------------------------------------------------------------------------- 2003 2002 2002 ----------------------------------------------------------------------------------------------------------------------- Cash on Hand $69.6 million $55.2 million $82.5 million ----------------------------------------------------------------------------------------------------------------------- Cash/Current Liabilities 1.00 1.28 1.21 ----------------------------------------------------------------------------------------------------------------------- Current Ratio 2.39 2.73 2.29 ----------------------------------------------------------------------------------------------------------------------- Total Assets/Total Liabilities 4.14 4.03 3.88 ----------------------------------------------------------------------------------------------------------------------- Debtors Turnover 60 days 79 days 79 days ----------------------------------------------------------------------------------------------------------------------- Inventory Turnover 16 times 12 times 10 times ----------------------------------------------------------------------------------------------------------------------- *Adjusted for the 3 for 1 stock split effective June 30, 2003.
Second Quarter Results Analyst Conference Call - ---------------------------------------------- The Company will hold a conference call on Monday, July 28, 2003 at 10:00 a.m. Eastern Time for analysts to discuss the second quarter results with management. Shareholders, media, and interested investors are invited to listen to the live conference over the internet by going to www.namtai.com/news/news.htm and clicking on the conference call link or over the phone by dialing (612) 288-0329 just prior to its start time. Callers will be asked to register with the conference call operator. Dividends - --------- The record date for the third quarter dividend of $0.05 per share is September 30, 2003 and the payment date is October 21, 2003. About Nam Tai Electronics, Inc. - ------------------------------- We are an electronics manufacturing and design services provider to original equipment manufacturers of telecommunications and consumer electronic products. Through the electronics manufacturing services operations, we manufacture electronic components and subassemblies, including LCD panels, LCD modules, and radio frequency modules. These components are used in numerous electronic products, including cellular phones, laptop computers, digital cameras, copiers, fax machines, electronic toys, handheld video game devices and microwave ovens. We also manufacture finished products, including cellular phones, palm-sized PCs, personal digital assistants, electronic dictionaries, calculators and digital camera accessories for use with cellular phones. Further information is available at www.namtai.com. Forward-Looking Statements - --------------------------- Certain statements in this press release are "forward-looking statements" within the meaning of U.S. federal securities laws. Nam Tai intends that these statements be covered by the safe harbors created under these laws. These forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by the forward-looking statements. There are important factors that could cause actual results to differ materially from the information set forth in these forward-looking statements. Many of these factors are beyond Nam Tai's ability to control or predict. Given these uncertainties, readers are cautioned not to place undue reliance on the forward-looking statements which only speak as of the date of this press release. Nam Tai does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. NAM TAI ELECTRONICS, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - -------------------------------------------------------------------------------- FOR THE PERIODS ENDED JUNE 30, 2003 AND 2002 (In Thousands of US Dollars except share data) Note Unaudited Unaudited Three months ended Six months ended June 30 June 30 2003 2002 2003 2002 - ------------------------------------------------------------------------------------------------------------------------------ Net sales - related parties $ 8,834 $ 2,753 $ 11,765 $ 7,849 Net sales - third parties 107,880 49,558 192,930 95,679 ---------------------------------------------------------------- Total net sales 116,714 52,311 204,695 103,528 Cost of sales (1) 98,393 40,375 171,228 83,841 ---------------------------------------------------------------- Gross profit (1) 18,321 11,936 33,467 19,687 Costs and expenses Selling, general and administrative expenses 6,490 4,273 11,961 8,225 Research and development expenses 927 663 1,738 1,328 ---------------------------------------------------------------- 7,417 4,936 13,699 9,553 ---------------------------------------------------------------- Income from operations (1) 10,904 7,000 19,768 10,134 Interest income 191 189 392 336 Other income (loss) - net (2) 915 (3,824) 2,982 (3,799) Equity in income of affiliated companies 137 969 212 2,104 ---------------------------------------------------------------- Income before income taxes and minority interests 12,147 4,334 23,354 8,775 Income tax expense (475) (452) (859) (617) ---------------------------------------------------------------- Income before minority interests 11,672 3,882 22,495 8,158 Minority interests (178) (57) (791) (158) ---------------------------------------------------------------- Net income (1) & (2) $ 11,494 $ 3,825 $ 21,704 $ 8,000 ================================================================ Net income per share Basic (2) & (3) $ 0.32 $ 0.12 $ 0.60 $ 0.26 ================================================================ Diluted (2) & (3) $ 0.31 $ 0.12 $ 0.59 $ 0.25 ================================================================ Weighted average number of shares ('000') Basic (3) 36,431 31,321 36,391 31,121 Diluted (3) 36,906 32,111 36,852 31,771
Note: (1) The cost of sales for the second quarter of 2002 included a reversal of a $2.0 million provision for slowing moving raw materials. Excluding the reversal, the adjusted gross margin for the second quarter of 2002 would have been $9,936 or 19.0% of net sales, adjusted income from operations would have been $5,000 or 9.6% of net sales, adjusted net income would have been $1,825 or 3.5% of net sales. (2) Result for the second quarter of 2002, as previously announced, were adjusted for the reallocation and release of $1.5 million unamortized goodwill due to JIC reverse merger from fourth quarter to second quarter. (3) All share and earnings per share data have been adjusted to give effect to the 3 for 1 stock split of June 30, 2003. NAM TAI ELECTRONICS, INC. CONSOLIDATED BALANCE SHEETS - -------------------------------------------------------------------------------- AS AT JUNE 30, 2003 AND DECEMBER 31, 2002 (In Thousands of US Dollars) Unaudited Audited June 30 December 31 2003 2002 - ----------------------------------------------------------------------------------------------------- ASSETS Current assets: Cash and cash equivalents $ 69,633 $ 82,477 Accounts receivable, net 61,484 50,944 Amount due from a related party 5,383 - Inventories, net 21,289 19,200 Prepaid expenses and other receivables 5,515 1,867 Income taxes recoverable 3,291 855 ----------------------------------- Total current assets 166,595 155,343 Investments in affiliated companies 10,212 - Convertible notes 5,128 5,128 Long term investment 16,366 15,982 Property, plant and equipment, at cost 122,044 116,583 Less: accumulated depreciation and amortization (44,931) (40,669) ----------------------------------- 77,113 75,914 Intangible assets 21,061 21,308 Other assets 1,411 1,411 ----------------------------------- Total assets $ 297,886 $ 275,086 =================================== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Notes payable $ 1,301 $ 985 Long term bank loans - current portion 1,125 13,985 Accounts payable 51,481 38,714 Accrued expenses and other payables 12,822 12,609 Dividend payable 1,826 1,442 Income taxes payable 1,028 200 ----------------------------------- Total current liabilities 69,583 67,935 Long-term bank loans - non-current portion 2,250 2,812 Deferred income taxes 87 112 ----------------------------------- Total liabilities 71,920 70,859 Minority interests 2,932 2,099 Shareholders' equity: ** Common shares 365 360 Additional paid-in capital 150,597 147,754 Retained earnings 72,074 54,016 Accumulated other comprehensive loss (Note 1) (2) (2) ----------------------------------- Total shareholders' equity 223,034 202,128 Total liabilities and shareholders' equity $ 297,886 $ 275,086 ===================================
**Shareholders' equity for June 30, 2003 and December 31, 2002 were adjusted for the 3 for 1 stock split effective June 30, 2003. NAM TAI ELECTRONICS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS - -------------------------------------------------------------------------------- FOR THE PERIODS ENDED JUNE 30, 2003 AND 2002 (In Thousands of US Dollars) Unaudited Unaudited Three months ended Six months ended June 30 June 30 2003 2002 2003 2002 - ----------------------------------------------------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 11,494 $ 3,825 $ 21,704 $ 8,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 3,011 2,507 5,880 5,054 Amortization of advisors' warrants and options - 10 - 10 Net loss (gain) on disposal of property, plant and 50 76 (159) 115 equipment Gain on disposal of intangible assets - (60) - (60) Realized gain on marketable securities - - - (642) Gain on disposal of a subsidiary (2,133) (17) (2,133) (17) Loss on partial disposal of subsidiaries 151 - 151 - Loss on reverse merger of subsidiaries - 2,655 - 2,655 Compensation expenses - - 509 - Equity in income of affiliated companies (137) (969) (212) (2,104) Dividend income from affiliated companies - 32 - 32 Loss on partial disposal of investment in affiliated - 469 - 469 companies Minority interests 178 57 791 158 Deferred income taxes (25) - (25) - Changes in current assets and liabilities, net of effects of acquisition and disposal: Proceeds from marketable securities - - - 10,147 (Increase) decrease in accounts receivable (4,316) 84 (10,540) (257) Increase in amount due from a related party (4,577) - (5,383) - Decrease (increase) in inventories 10,102 (3,436) (2,811) (2,159) Decrease (increase) in prepaid expenses and other 1,476 207 (3,796) 167 receivables (Increase) decrease in income taxes recoverable (2,339) 80 (2,436) (646) (Decrease) increase in notes payable (729) (512) 316 (1,263) (Decrease) increase in accounts payable (1,579) 12,729 13,778 4,966 Increase (decrease) in accrued expenses and other 2,197 (616) 378 (1,966) payables Decrease in amount due to a related party - (2,975) - (2,766) Increase in income taxes payable 464 237 828 494 ---------------------------------------------------------------- Total adjustments 1,794 10,558 (4,864) 12,387 ---------------------------------------------------------------- Net cash provided by operating activities $ 13,288 $ 14,383 $ 16,840 $ 20,387 ---------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of long term investment $ - $ (11) $ (384) $ (11,968) Purchase of property, plant and equipment (5,839) (2,667) (10,057) (13,430) Proceeds from disposal of property, plant and equipment 251 10 2,578 15 Proceeds from disposal of intangible assets - 800 - 800 Proceeds (cash outflow) from disposal of a subsidiary 2,386 (1,277) 2,386 (1,277) Proceeds from partial disposal of subsidiaries 293 - 453 - Acquisition of affiliated companies - - (10,000) - ---------------------------------------------------------------- Net cash used in investing activities $ (2,909) $ (3,145) $ (15,024) $ (25,860) ----------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES Share buy-back program $ - $ - $ - $ (3,528) Dividends paid (2,380) (1,213) (3,822) (2,236) Repayment of bank loans (281) (535) (13,422) (1,070) Proceeds from bank loans - 4,500 - 4,500 Proceeds from shares issued on exercise of options and 801 3,522 2,584 4,311 warrants ---------------------------------------------------------------- Net cash (used in) provided by financing activities $ (1,860) $ 6,274 $ (14,660) $ 1,977 ---------------------------------------------------------------- Foreign currency translation adjustments - 14 - (26) ---------------------------------------------------------------- Net increase (decrease) in cash and cash equivalents 8,519 17,526 (12,844) (3,522) ---------------------------------------------------------------- Cash and cash equivalents at beginning of period 61,114 37,628 82,477 58,676 ---------------------------------------------------------------- Cash and cash equivalents at end of period $ 69,633 $ 55,154 $ 69,633 $ 55,154 ================================================================
NAM TAI ELECTRONICS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) - -------------------------------------------------------------------------------- FOR THE PERIODS ENDED JUNE 30, 2003 AND 2002 (In Thousands of US Dollars) 1. Accumulated other comprehensive income represents foreign currency translation adjustments. The comprehensive income of the Company was $21,704 and $7,983 for the six months ended June 30, 2003 and June 30, 2002, respectively. 2. Business segment information - The Company operates primarily in two segments, the Consumer Electronic Products ("CEP") segment and the LCD Panels and Transformers ("LPT") segment. Unaudited Unaudited Three months ended Six months ended June 30 June 30 2003 2002 2003 2002 - --------------------------------------------------------------------------------------------------------- NET SALES: - CEP $ 105,478 $ 43,361 $ 183,059 $ 89,202 - LPT 11,236 8,950 21,636 14,326 ------------------------------------------------------------------ Total net sales $ 116,714 $ 52,311 $ 204,695 $ 103,528 ================================================================== NET INCOME: - CEP $ 9,962 $ 4,137 $ 19,994 $ 8,206 - LPT 1,532 (312) 1,710 (206) ------------------------------------------------------------------ Total net income $ 11,494 $ 3,825 $ 21,704 $ 8,000 ================================================================== Unaudited Audited June 30, 2003 Dec. 31, 2002 - ---------------------------------------------------------------------------------------------------------- IDENTIFIABLE ASSETS BY SEGMENT: - CEP $ 247,761 $ 225,754 - LPT 50,125 49,332 ------------------------------- Total assets $ 297,886 $ 275,086 ===============================
3. A summary of the net sales, net income and long-lived assets by geographic areas is as follows: Unaudited Unaudited Three months ended Six months ended June 30 June 30 2003 2002 2003 2002 - ------------------------------------------------------------------------------------------------------- NET SALES FROM OPERATIONS WITHIN: - Hong Kong: Unaffiliated customers $ 106,842 $ 48,482 $ 191,228 $ 93,416 Related party 8,834 - 11,765 - Inter-companies sales 234 447 389 924 - PRC, excluding Hong Kong: Unaffiliated customers 1,038 1,076 1,702 2,263 Related party - 2,753 - 7,849 Inter-companies sales 101,272 37,594 175,227 75,267 - Inter-companies eliminations (101,506) (38,041) (175,616) (76,191) --------------- --------------- ---- -------------- --------------- Total net sales $ 116,714 $ 52,311 $ 204,695 $ 103,528 =============== =============== ==== ============== =============== NET INCOME FROM OPERATIONS WITHIN: - PRC, excluding Hong Kong $ 9,496 $ 7,186 $ 18,043 $ 9,421 - Hong Kong 1,998 (3,361) 3,661 (1,421) --------------- --------------- ---- -------------- --------------- Total net income $ 11,494 $ 3,825 $ 21,704 $ 8,000 =============== =============== ==== ============== =============== Unaudited Audited June 30, 2003 Dec. 31, 2002 - ----------------------------------------------------------------------- -- --------------- --------------- LONG-LIVED ASSETS WITHIN: - PRC, excluding Hong Kong $ 58,761 $ 54,481 - Hong Kong 18,352 21,433 --------------- --------------- Total long-lived assets $ 77,113 $ 75,914 =============== ===============
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. NAM TAI ELECTRONICS, INC. Date: August 13, 2003 By: /s/ M.K. Koo ------------------------------------------- Name: M. K. Koo Title: Chief Financial Officer and Director -----END PRIVACY-ENHANCED MESSAGE-----