Plastec Technologies Reports Audited Financial Results for the Eight-Month Transition Period Ended D

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Plastec Technologies Reports Audited Financial Results for the Eight-Month Transition Period Ended December 31, 2012

Financial Highlights for the Eight Months Transition Period Ended December 31, 2012
(all comparisons to same period of prior year)

  • Sales of $119.7 million, up 2.5%
  • Gross margin of 13.6%, compared to 12.1%
  • EBITDA of $21.0 million, compared to $20.3 million
  • Net income of $7.7 million, or $0.54 per diluted share based on 14.3 million diluted shares outstanding, compared to $5.1 million, or $0.31 per diluted share based on 16.5 diluted shares outstanding
  • $31.7 million cash generated from operations for the eight months ended December 31, 2012

HONG KONG--(BUSINESS WIRE)-- Plastec Technologies, Ltd. - (OTCBB: PLTYF (ordinary shares), PLTWF (warrants), PLTEF (units)) ("Plastec" or the "Company"), an integrated plastic manufacturing services provider that operates in the People's Republic of China, today reported audited financial results for the eight months transition period ended December 31, 2012.


On September 11, 2012, the Company determined to change its fiscal year end from April 30 to December 31. The change in fiscal year end was made so that the Company's fiscal year end would coincide with all the Company's operating subsidiaries in the People's Republic of China. The financial highlights and figures below for the 8-month period ended December 31, 2011 have not been audited and are presented for comparative purposes only.

See attached tables at the end of this release in Hong Kong Dollars (HKD). All other amounts in this press release are presented in U.S. dollars (USD) with a conversion rate of US$1.0: HK$7.8 (see table below for reference).

($ in millions, except per share data)

 

8 months period ended
12/31/2011

  

8 months period ended
12/31/2012

  

Year ended
April 30,2011

  

Year ended
April 30,2012

 
Sales$116.8$119.7$169.7$165.5
Cost of Revenues102.7103.5137.8146.5
Gross Profit14.116.331.919.0
Gross Profit Ratio12.1%13.6%18.8%11.5%
 

Income from Operations

7.1

8.321.78.9
 

Net Income

5.1

7.7

17.1

6.5

Diluted EPS$0.31$0.54$2.17$0.41

Adjusted EBITDA*

20.321.039.628.7
 

* Reconciliation table at end of release

Management Comments

Mr. Kin Sun Sze-To, Chairman of Plastec, stated, "We are pleased to report solid margins and profitable results during the period, despite relatively flat sales due to a difficult export market. We remain conservative in our short-term view of the industry cycle and have focused our attention on streamlining our costs and improving our operating performance. We have focused on continuing to remain profitable and cost-effectively growing our business by utilizing our advanced and modernized machines and equipment. We continue to benefit from increased capacity at our largest facility in Shenzhen, and have been undergoing trial production runs at a manufacturing facility in Thailand since January 2013. Our goal is to match our production centers in close proximity to our largest customers, many of whom have been Plastec clients for over 5 years. We have carefully selected the locations of these facilities in order to facilitate timely delivery of our products to customers, and our expansion into Thailand is an extension of this philosophy."

Financial Review for the Eight Months Transition Period Ended December 31, 2012

  • The Company's total sales for the eight months ended December 31, 2012 increased 2.5% to $119.7 million from $116.8 million in the prior-year period.
  • The Company's gross profit margin for the eight months ended December 31, 2012 was 13.6%, compared to 12.1% in the prior-year period. The increase in margin for the period was largely the result of a higher number of new products ordered by the Company's existing clients coupled with new customers.
  • Adjusted EBITDA for the eight months ended December 31, 2012 was $21.0 million, compared to $20.3 million in the prior-year period.
  • Net income for the eight months ended December 31, 2012 was $7.7 million, or $0.54 per share based on a weighted average number of diluted shares outstanding of approximately 14.3 million, compared to $5.1 million, or $0.31 per share based on approximately 16.5 million weighted average number of diluted shares in the prior-year period.

Balance Sheet Highlights

    

($ in millions)

4/30/2011

4/30/2012

12/31/2012

Cash and Cash Equivalents$28.2$25.6$39.7
Total Current Assets79.181.089.8
Total Assets154.1153.0151.2
Working Capital22.721.139.9
Total Long-term Debt000
Shareholders' Equity95.791.399.8

Repurchase Update

In December 2012, the Company approved a twelve-month extension of its previously announced share repurchase plan through December 09, 2013, allowing Plastec to purchase up to $5 million of its ordinary shares in both open market and privately negotiated transactions at the discretion of the Company's management and as market conditions allow. The Company also expanded the scope of the repurchase plan to include Plastec's publicly-held warrants, with all other terms of the repurchase plan remaining unchanged. To date, the Company has repurchased 664,675 shares and nil warrants under its repurchase plan.

About Plastec

Originally founded in 1993 by Chairman and CEO, Mr. Kin Sun Sze-To, Plastec is an integrated plastic manufacturing services provider that operates in the People's Republic of China through its wholly owned subsidiaries. With approximately 5,400 employees, Plastec provides precision plastic manufacturing services from mold design and fabrication, plastic injection manufacturing to secondary-process finishing, as well as parts assembly.

Forward Looking Statements

This press release contains "forward-looking statements." These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Actual results may differ from expectations, estimates and projections and, consequently, you should not rely on these forward looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements.

PLASTEC TECHNOLOGIES, LTD.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Hong Kong dollars in thousands, except number of shares, per share data and unless otherwise stated)

   

Year ended April 30,

For 8-month
Period ended December 31,

2011 2012 2012
HK$ HK$HK$
 
Revenues1,323,5331,291,223933,888
Cost of revenues(1,074,880) (1,142,653) (807,104)
Gross profit248,653148,570126,784
 
Operating expenses, net
Selling, general and administrative expenses(83,584)(81,557)(66,330)
Other income4,7112,4316,266
Write-off of property, plant and equipment(1,791)(690)(4,058)
Gain on disposal of property, plant and equipment

1,315

 

938

 

1,898

Total operating expenses, net(79,349) (78,878) (62,224)
 
Income from operations169,30469,69264,560
 
Interest income124218166
Interest expense(3,008) (2,695) (1,559)
Income before income tax expense166,42067,21563,167
 
Income tax expense(33,106) (16,811) (3,344)
Net income133,31450,40459,823
 
Other comprehensive income
Foreign currency translation adjustment218 7,408 (990)

Comprehensive income attributable to
Plastec Technologies, Ltd.

133,532

 

57,812

 

58,833

 
Net income per share:
 
Weighted average number of ordinary shares7,891,754 15,944,233 14,303,544
 

Weighted average number of diluted
ordinary shares

7,891,754

 

15,944,233

 

14,303,544

 

Basic income per share
attributable to Plastec Technologies, Ltd.

HK$16.9

 

HK$3.2

 

HK$4.2

 

Diluted income per share
attributable to Plastec Technologies, Ltd.

HK$16.9

 

HK$3.2

 

HK$4.2

PLASTEC TECHNOLOGIES, LTD.

CONSOLIDATED BALANCE SHEETS

(Hong Kong dollars in thousands, except number of shares, per share data and unless otherwise stated)

  
April 30,April 30,December 31,
2011 2012 2012
HK$HK$HK$
 

ASSETS

 

Current assets

Cash and cash equivalents219,757199,818309,862

Trade receivables, net of allowances for doubtful accounts of
HK$nil, HK$nil and HK$nil as of April 30, 2011 and 2012, and
December 31, 2012 respectively

 

270,763

 

282,869

 

257,299

Inventories117,733128,38797,467
Deposits, prepayment and other receivables8,357 20,514 35,471
Total current assets616,610631,588700,099
 
Property, plant and equipment, net551,079524,137440,383
Prepaid lease payments, net26,23724,75323,719
Other assets8,00112,81314,503
Intangible assets- 438 438
Total assets1,201,927 1,193,729 1,179,142
 

LIABILITIES AND SHAREHOLDERS' EQUITY

 
Current liabilities
Bank borrowings169,710156,86696,892
Capital lease obligations5,311303-
Trade payables127,987121,964151,436
Other payables and accruals80,811115,109115,715
Tax payable56,389 72,936 25,225
Total current liabilities440,208467,178389,268
 
Capital lease obligations303--
Deferred tax liabilities15,156 14,504 11,629
Total liabilities455,667 481,682 400,897
 
Commitments and contingencies---
 
Shareholders' equity

Ordinary shares (US$0.001 par value; 100,000,000
authorized, 16,733,196, 14,352,903 and 14,292,228
shares issued and outstanding as of April 30, 2011 and
2012, and December 31, 2012, respectively)

 

 

131

 

 

112

 

 

112

Additional paid-in capital169,97377,96785,332
Accumulated other comprehensive income8,10615,51414,524
Retained earnings568,050 618,454 678,277
Total shareholders' equity746,260 712,047 778,245
     
Total liabilities and shareholders' equity1,201,927 1,193,729 1,179,142

PLASTEC TECHNOLOGIES, LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Hong Kong dollars in thousands, except number of shares, per share data and unless otherwise stated)

  

Year ended April 30,

For 8-month
Period ended December 31,

2011 2012 2012
HK$ HK$HK$
 
Operating activities
Net income133,31450,40459,823
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization143,640157,219103,513
Net gain on disposal of property, plant and equipment(1,315)(938)(1,897)
Net gain on disposal of prepaid leases(3,799)--
Write-off of property, plant and equipment1,7916904,058
Impairment on inventories6,0956,9204,108
Deferred tax charge-(652)(2,732)
Changes in operating assets and liabilities:
Trade receivables(28,666)(12,106)25,553
Inventories(49,530)(17,574)26,812
Deposits, prepayment and other receivables3,382(12,158)(13,772)
Trade payables(8,027)(6,023)29,472
Other payables and accruals27,04434,29912,212
Tax payables37,711 16,547 416
 
Net cash provided by operating activities261,640 216,628 247,566
 
Investing activities
Purchase of property, plant and equipment(225,904)(126,167)(87,224)
Proceeds from disposal of property, plant and equipment2,4055,25229,665
Proceeds from disposal of prepaid leases3,919--
Deposits for purchase of property, plant and equipment(8,001)(12,813)(15,690)
Net loss on disposals of subsidiaries- - (165)
 
Net cash used in investing activities(227,581) Read Full Story

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