FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For News Release of:
May 6, 2002;
April 22, 2002;
April 15, 2002
NAM TAI ELECTRONICS, INC.
(Registrant's name in English)
15th Floor, China Merchants Tower, Shun Tak Centre
168-200 Connaught Road Central, Hong Kong
NEWS RELEASE
NAM TAI ELECTRONICS, INC.
REPRESENTED BY: PAN PACIFIC I.R. LTD.
SUITE 1790 - 999 WEST HASTINGS STREET
VANCOUVER, B.C. CANADA V6C 2W2
TEL: (604) 669-7800 FAX: (604) 669-7816
TOLL FREE TEL & FAX: 1-800-661-8831
E-MAIL: investor@namtai.com
WEB SITE: www.namtai.com
CONTACT: LORNE WALDMAN
NAM TAI ELECTRONICS, INC.
Q1 Net Income Up 500% to $4.2 Million vs. $0.7 Million, EBITDA $0.68 vs. $0.35
VANCOUVER, CANADA May 6, 2002 -- Nam Tai Electronics, Inc. ("Nam Tai" or the
"Company") (NASDAQ/NM Symbol: NTAI and NTAIW; CBOE Symbol: QNA) announced
unaudited results for the first quarter ended March 31, 2002. Net sales of $51.2
million for the first quarter of 2002 was flat as compared to net sales of $51.5
million for the first quarter of 2001. Gross profit for the first quarter of
2002 was $7.8 million, an increase of 26% compared to gross profit of $6.2
million for the first quarter of 2001. Operating income for the first quarter of
2002 was $3.1 million ($0.30 per share) compared to operating loss of
$0.3million ($0.03 per share) in the first quarter of 2001. Net income for the
first quarter of 2002 was $4.2 million an increase of 500% compared to net
income of $0.7 million in the first quarter of 2001. Basic and diluted earnings
per share for the first quarter of 2002 were $0.41 and $0.40 compared to $0.07
and $0.06 in the first quarter of 2001.
"The Company is so pleased to announce that the financial results for the first
quarter of 2002 showed better performance as compared to the same quarter of
2001," Mr. Tadao Murakami, Chairman commented. "Especially gross profit margin
recovered significantly to 15%, and cost control demonstrated an impressive
accomplishment resulted from the reduction of SG&A expenses."
Effective January 1, 2002, the Company adopted the Statement of Financial
Accounting Standards (SFAS) No. 142, "Goodwill and Other Intangible Assets" and
discontinued the amortization of goodwill. The adoption of SFAS No. 142 did not
have a material impact on the Company's financial position or its results of
operations.
During the first quarter of 2002, the Company disposed of its entire investment
of equities in Deswell Industries, Inc. (NASDAQ Symbol:DSWL) for $10.2 million
at an average price of $20.29. The total gain was $2.65 million, of which $2.01
million was recorded as unrealized gain in the prior years and $0.64 million was
recorded as realized gain in the first quarter of 2002.
Following the successful investment in Huizhou TCL Mobile Communication Co.,
Ltd. with its excellent performance and contribution to the profits of the
Company, the Company has made a further investment in TCL Holdings Corporation
Ltd., the parent company of Huizhou TCL Mobile Communication Co., Ltd. and such
transaction has been completed by March, 2002. The Company will continue to
pursue merger and acquisition as well as other investment opportunities to help
augment its growth.
The Company continues to maintain a strong financial position, with $3.66 of
cash per share and $16.49 of net book value per share, based on 10,280,740
common shares outstanding as at March 31, 2002. The Company, as at March 31,
2002, had a cash to current liabilities ratio of 1.17, a current ratio of 2.95,
a total assets to total liabilities ratio of 4.75, and approximately $37.6
million of cash on hand.
Repurchase Program
On October 1, 2001 the Company announced a stock repurchase program to buy-back
up to an aggregate of two million common shares in the open market from time to
time at prevailing market prices in accordance with SEC Rule 10b-18. As at May
1, 2002 the Company repurchased 282,600 of its common shares at an average price
of $17.60. Under the circumstance of the Company's share price improved,
continuous strong growth, as well as substantial profit attained by the Company
during the 1st quarter of 2002, the Company does not expect to repurchase
further shares under the existing repurchase program at this moment, but would
consider to reactivate the program at a suitable timing.
First Quarter Results Analyst Conference Call
The Company will hold a conference call on Monday, May 6, 2002 at 10:00 a.m.
Eastern Time for analysts to discuss the first quarter results with management.
Shareholders, media, and interested investors are invited to listen to the live
conference over the internet by going to http://www.namtai.com/news/news.htm and
clicking on the conference call link or over the phone by dialing (612)-332-0632
just prior to its start time. Callers will be asked to register with the
conference call operator.
Nam Tai Electronics, Inc. is an electronics design and manufacturing service
provider to some of the world's leading original equipment manufacturers. Nam
Tai manufactures telecommunication products, palm-sized PCs, personal digital
assistants, linguistic products, calculators and various components including
LCD modules for cellular phones, lithium ion rechargeable battery packs,
transformers and LCD panels. The Company utilises advanced production
technologies such as chip on board (COB), chip on glass (COG), chip on film
(COF), surface mount technology (SMT), ball grid array (BGA), tape automated
bonding (TAB), and outer lead bonding (OLB) technologies. Further information is
available on Nam Tai's website at www.namtai.com.
NAM TAI ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
(In Thousands of US Dollars except share data)
Unaudited
Three months ended
March 31
2002 2001
------------------------------------------------ --------------- --------------
Net sales $ 51,217 $ 51,487
Cost of sales 43,466 45,296
--------------- --------------
Gross profit 7,751 6,191
Costs and expenses
Selling, general and administrative expenses 3,952 5,698
Research and development expenses 665 761
--------------- --------------
4,617 6,459
--------------- --------------
Income (loss) from operations 3,134 (268)
Gain on disposal of land - 18
Interest income 147 502
Other income - net 25 561
Equity in income (loss) of affiliated companies 1,135 (17)
--------------- --------------
Income before income taxes and minority interest 4,441 796
Income tax expense (165) (132)
--------------- --------------
Income before minority interest 4,276 664
Minority interest (101) 11
--------------- --------------
Net income $ 4,175 $ 675
=============== ==============
Net income per share
Basic $ 0.41 $ 0.07
=============== ==============
Diluted $ 0.40 $ 0.06
=============== ==============
Weighted average number of shares ('000')
Basic 10,306 10,240
Diluted 10,476 10,417
NAM TAI ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEETS
AS AT MARCH 31, 2002 AND DECEMBER 31, 2001
(In Thousands of US Dollars)
Unaudited Audited
March 31 December 31
2002 2001
-------------------------------------------------------- ---------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 37,628 $ 58,676
Marketable securities - 9,505
Accounts receivable, net 42,309 41,968
Inventories 10,608 11,892
Prepaid expenses and deposits 2,416 2,377
Income taxes recoverable 2,079 1,353
---------------------------
Total current assets 95,040 125,771
Investments in affiliated companies 5,056 3,921
Long term investment 11,957 -
Property, plant and equipment, at cost 116,203 105,536
Less: accumulated depreciation and amortization (37,533) (35,122)
---------------------------
78,670 70,414
Intangible assets - net 22,948 23,060
Other assets 1,407 1,407
---------------------------
Total assets $ 215,078 $ 224,573
===========================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable $ 796 $ 1,547
Long term bank loan - current portion 1,605 2,140
Accounts payable and accrued expenses 25,157 34,258
Amount due to a related party 3,113 2,733
Dividend payable 1,213 1,023
Income taxes payable 345 88
---------------------------
Total current liabilities 32,229 41,789
Long-term bank loan - non-current portion 12,860 12,860
Deferred income taxes 151 151
---------------------------
Total liabilities 45,240 54,800
Minority interest 320 422
Shareholders' equity:
Common shares 103 104
Additional paid-in capital 112,156 111,368
Retained earnings 57,279 57,864
Accumulated other comprehensive (loss) income (Note 1) (20) 15
---------------------------
Total shareholders' equity 169,518 169,351
Total liabilities and shareholders' equity $ 215,078 $ 224,573
===========================
NAM TAI ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
(In Thousands of US Dollars)
Unaudited
Three months ended
March 31
2002 2001
------------------------------------------------------------------------------ ----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 4,175 $ 675
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization 2,547 2,783
Loss (gain) on disposal of property, plant and equipment 39 (20)
Unrealized loss on marketable securities - 812
Equity in (income) loss of affiliated companies less dividend received and (1,135) 17
amortisation of goodwill amortization
Minority interest 101 (11)
Changes in current assets and liabilities, net of effects of acquisition and
disposal:
Decrease in marketable securities 9,505 -
(Increase) decrease in accounts receivable (341) 4,705
Decrease in inventories 1,277 1,744
Increase in prepaid expenses and deposits (40) (5,415)
(Increase) decrease in income taxes recoverable (726) 982
Decrease in notes payable (751) (1,286)
Decrease in accounts payable and accrued expenses (9,113) (6,433)
Increase (decrease) in amount due to a related party 209 (1,621)
Increase (decrease) in income taxes payable 257 (192)
----------- -----------
Total adjustments 1,829 (3,935)
----------- -----------
Net cash used in operating activities $ 6,004 $ (3,260)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Increase in long term investment (11,957) $ -
Purchase of property, plant and equipment (10,763) (4,975)
Increase in investment of subsidiaries - (85)
Proceeds from disposal of property, plant and equipment 5 244
----------- -----------
Net cash used in investing activities $(22,715) $ (4,816)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Share buy-back program $ (3,528) $ (1,292)
Dividends paid (1,023) (904)
Repayment of bank loan (535) -
Repayment of short term debt - (24)
Proceeds from shares issued on exercise of options and warrants 789 1,231
----------- -----------
Net cash used in financing activities $ (4,297) $ (989)
----------- -----------
Foreign currency translation adjustments (40) -
----------- -----------
Net decrease in cash and cash equivalents (21,048) (9,065)
----------- -----------
Cash and cash equivalents at beginning of period 58,676 58,896
----------- -----------
Cash and cash equivalents at end of period $ 37,628 $ 49,831
=========== ===========
NAM TAI ELECTRONICS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
(In Thousands of US Dollars)
1. Accumulated other comprehensive income represents foreign currency
translation adjustments. The comprehensive income of the Company was $4,140 and
$685 for the three months ended March 31, 2002 and March 31, 2001, respectively.
2. Business segment information - The Company operates primarily in two
segments, the consumer electronic product ("CEP") segment and the LCD panels and
transformers ("LPT") segment.
Unaudited
Three months ended
March 31
2002 2001
---------------------------------------- --------------- ---------------
Net sales :
- CEP $ 45,841 $ 43,104
- LPT 5,376 $ 8,383
--------------- ---------------
Total net sales $ 51,217 $ 51,487
=============== ===============
Income (loss) from operations :
- CEP $ 4,069 $ (574)
- LPT 106 1,249
--------------- ---------------
Total net income $ 4,175 $ 675
=============== ===============
Unaudited Audited
March 31, 2002 Dec. 31, 2001
---------------------------------------- --------------- ---------------
Identifiable assets by SEGMENT:
- CEP $ 171,703 $ 188,262
- LPT 43,375 36,311
--------------- ---------------
Total assets $ 215,078 $ 224,573
=============== ===============
3. A summary of the net sales, income from operations and identifiable assets by
geographic areas is as follows:
Unaudited
Three months ended
March 31
2002 2001
---------------------------------------- --------------- ---------------
Net sales from operations within:
- Hong Kong:
Unaffiliated customers $ 44,934 $ 47,326
Intersegment sales 477 -
- PRC, excluding Hong Kong:
Affiliated customers 5,096 3,328
Unaffiliated customers 1,187 833
Intersegment sales 37,673 36,621
- Intersegment eliminations (38,150) (36,621)
--------------- ---------------
Total net sales $ 51,217 $ 51,487
=============== ===============
Income (loss) from operations within:
- PRC, excluding Hong Kong $ 2,235 $ (265)
- Hong Kong 1,940 940
--------------- ---------------
Total net income $ 4,175 $ 675
=============== ===============
Unaudited Audited
March 31, 2002 Dec. 31, 2001
---------------------------------------- --------------- ---------------
Identifiable assets by geographic area:
- PRC, excluding Hong Kong $ 69,907 $ 60,866
- Hong Kong 145,171 163,707
--------------- ---------------
Total assets $ 215,078 $ 224,573
=============== ===============
NEWS RELEASE
NAM TAI ELECTRONICS, INC.
REPRESENTED BY: PAN PACIFIC I.R. LTD.
SUITE 1790 - 999 WEST HASTINGS STREET
VANCOUVER, B.C. CANADA V6C 2W2
TEL: (604) 669-7800 FAX: (604) 669-7816
TOLL FREE TEL & FAX: 1-800-661-8831
E-MAIL: investor@namtai.com
WEB SITE: www.namtai.com
CONTACT: LORNE WALDMAN
NAM TAI ELECTRONICS, INC.
Completes Investment in TCL Holdings Corporation Ltd.
VANCOUVER, CANADA April 22, 2002 -- Nam Tai Electronics, Inc. ("Nam Tai" or the
"Company") (NASDAQ/NM Symbol: NTAI and NTAIW) today announced the successful
completion of its 6% equity interest investment in TCL Holdings Corporation Ltd.
("TCL Holdings"), the parent Company of the TCL Group. Gold Peak Industries, a
Hong Kong listed company, also acquired a 6% equity interest in TCL Holdings.
Nam Tai is also pleased it successfully introduced Toshiba Corporation and
Sumitomo Corporation to the TCL Holdings investment opportunity. Both companies
have also invested in TCL Holdings.
Nam Tai is pleased to announce that Mr. Ming Kown Koo, a Director of Nam Tai,
was elected as one of TCL Holdings' executive directors. Nam Tai indicated that
it is honored to be able to support TCL Holdings to broaden its shareholder
base.
Following its indirect 5% equity investment in Huizhou TCL Mobile Communication
Ltd., a very successful and aggressive mobile phone manufacturer in PRC (most
likely the dominant player in PRC at present), the investment in TCL Holdings
and Mr. Koo's appointment as an executive director of TCL Holdings solidifies
the relationship between Nam Tai and TCL. Both parties are looking forward to
supporting each other to develop more consumer products business and contribute
more to the shareholders of both companies.
Nam Tai to transfer its interest in BPC (Shenzhen) Co., Ltd. to Toshiba
Corporation
Nam Tai entered into a Memorandum of Understanding with Toshiba Corporation to
discontinue their joint venture to produce lithium ion rechargeable battery
packs for cellular phones. The joint venture business will end on May 1, 2002
and Toshiba Corporation will reacquire Nam Tai's entire interest in the joint
venture company, BPC (Shenzhen) Co., Ltd. ("BPC"), at cost. Nam Tai Electronic &
Electrical Products Limited, a wholly-owned subsidiary of Nam Tai, and Toshiba
Battery Co., Ltd. established the joint venture in March 2000 to manufacture
lithium ion battery packs for the China cellular phone market.
Following Toshiba Battery's sale to Sanyo of its nickel metal hydride battery
business and a general reorganization of the battery business in the Toshiba
Group, the Company and Toshiba mutually agreed that continuing with the joint
venture would not be in their best interests considering the expected downward
trend in demand for lithium ion battery packs.
Nam Tai expressed its appreciation for Toshiba's support during the BPC joint
venture and Toshiba's willingness to protect Nam Tai against a declining battery
pack market by repurchasing Nam Tai's investment in BPC. The Company noted that
Toshiba's consideration of Nam Tai's interests reflects a solid 20 year
relationship and that it looks forward to cooperating with Toshiba on other
ventures in the near future.
Nam Tai Electronics, Inc. is an electronics design and manufacturing service
provider to some of the world's leading original equipment manufacturers. Nam
Tai manufactures telecommunication products, palm-sized PCs, personal digital
assistants, linguistic products, calculators and various components including
LCD modules for cellular phones, transformers and LCD panels. The Company
utilises advanced production technologies such as chip on board (COB), chip on
glass (COG), surface mount technology (SMT), ball grid array (BGA), tape
automated bonding (TAB), and outer lead bonding (OLB) technologies. Further
information is available on Nam Tai's web site at www.namtai.com.
NEWS RELEASE
NAM TAI ELECTRONICS, INC.
REPRESENTED BY: PAN PACIFIC I.R. LTD.
SUITE 1790 - 999 WEST HASTINGS STREET
VANCOUVER, B.C. CANADA V6C 2W2
TEL: (604) 669-7800 FAX: (604) 669-7816
TOLL FREE TEL & FAX: 1-800-661-8831
E-MAIL: investor@namtai.com
WEB SITE: www.namtai.com
CONTACT: LORNE WALDMAN
NAM TAI ELECTRONICS, INC.
To Release Q1/02 Results on May 6, 2002
VANCOUVER, CANADA, April 15, 2002 -- Nam Tai Electronics, Inc. ("Nam Tai" or the
"Company") (NASDAQ/NM Symbol: NTAI and NTAIW; CBOE Symbol: QNA) today announced
it will release its unaudited first quarter results for the period ended March
31, 2002 before the market opens on Monday, May 6, 2002.
The Company will hold a conference call on Monday, May 6, 2002 @ 10:00 a.m.
Eastern Time for analysts to discuss the first quarter results with management.
Analysts who wish to receive the toll free dial-in number for this conference
call are invited to contact the Investor Relations Office at 1-800-661-8831 no
later than 6:00 p.m. Eastern Time on Friday, May 3, 2002.
Shareholders, media, and interested investors are invited to listen to the live
conference call by dialing (612) 332-0632 or on the internet at
http://www.videonewswire.com/event.asp?id=4132.
Repurchase Program
On October 1, 2001 the Company announced a stock repurchase program to buy-back
up to an aggregate of two million common shares in the open market from time to
time at prevailing market prices in accordance with SEC Rule 10b-18. As at March
31, 2002 the Company repurchased 273,300 of its common shares at an average cost
of $18.25. Under the current stock market conditions, the Company does not
expect to repurchase further shares under the existing repurchase program.
Dividend Payment
The Company will pay its first quarter dividend of $0.12 per share on or before
April 21, 2002 to shareholders of record at the close of business on April 1,
2002.
Annual General Meeting
The Company will hold its Annual Shareholders' Meeting on Friday, June 14, 2002
at 11:30 a.m. at The Peninsula Beverly Hills, 9882 South Santa Monica Boulevard,
Beverly Hills, California. The record date for voting is May 1, 2002.
Nam Tai Electronics, Inc. is an electronics design and manufacturing service
provider to some of the world's leading original equipment manufacturers. Nam
Tai manufactures telecommunication products, palm-sized PCs, personal digital
assistants, linguistic products, calculators and various components including
LCD modules for cellular phones, lithium ion rechargeable battery packs,
transformers and LCD panels. The Company utilises advanced production
technologies such as chip on board (COB), chip on glass (COG), chip on film
(COF), surface mount technology (SMT), ball grid array (BGA), tape automated
bonding (TAB), and outer lead bonding (OLB) technologies. Further information is
available on Nam Tai's web site at www.namtai.com.
The Registrant hereby incorporates this Report on Form 6-K into its Registration
Statements on Form F-3 (Registration Nos. 333-36135 and 333-58468).
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.
For and on behalf of
Nam Tai Electronics, Inc.
/s/ MING KOWN KOO
-----------------------
MING KOWN KOO
CHIEF FINANCIAL OFFICER
Date: May 6, 2002