ADVANCED INTEGRATED MANUFACTURING CORP. 
By
Registration No: 200405216C
Increase/
9 months ended
9 months ended
Increase/
3Q FY2012 3Q FY2011
(Decrease)
30-Sep-2012
30-Sep-2011
(Decrease)
US$'000 US$'000 % US$'000 US$'000 % Revenue 15,883 16,049 -1.0% 42,587 47,061 -9.5% Cost of sales (13,263) (12,590) 5.3% (35,368) (36,809) -3.9% Gross profit 2,620 3,459 -24.3% 7,219 10,252 -29.6% Other income 12 (193) N/M 29 (27) N/M Selling & marketing expenses 4 (13) N/M (61) (42) 45.2% Administrative expenses (1,906) (1,631) 16.9% (5,149) (4,578) 12.5% Other operating expenses (44) - N/M (346) (7) 4842.9% Finance cost (104) (44) 136.4% (204) (142) 43.7% Profit before tax 582 1,578 -63.1% 1,488 5,456 -72.7% Income tax (217) (354) -38.7% (547) (1,079) -49.3% Total profit after tax 365 1,224 -70.2% 941 4,377 -78.5%
Equity holders of the parent, net of tax 365 1,255 -70.9% 1,026 4,379 -76.6% Non-controlling interests, net of tax - (31) N/M (85) (2) 4150.0%
365 1,224 -70.2% 941 4,377 -78.5%
ST AT EMENT OF COMPREHENSIVE INCOME
GROUP
Increase/
9 months ended
9 months ended
Increase/
3Q FY2012 3Q FY2011
(Decrease)
30-Sep-2012
30-Sep-2011
(Decrease)
US$'000 US$'000 % US$'000 US$'000 % Profit for the period 365 1,224 -70.2% 941 4,377 -78.5%
Currencies translation differences arising from consolidation 98 77 27.3% 235 (3) N/M Fair value changes on available-for-sale investments (124) 958 N/M (337) 1,115 N/M Other comprehensive income for the period 339 2,259 -85.0% 839 5,489 -84.7%
Equity holders of the Parent, net of tax 339 2,290 -85.2% 924 5,491 -83.2% Non-controlling interests, net of tax - (31) N/M (85) (2) 4150.0%
339 2,259 -85.0% 839 5,489 -84.7%
Profit before tax is arrived at after (charging) / crediting:
Increase/
9 months ended
9 months ended
Increase/
3Q FY2012 3Q FY2011
(Decrease)
30-Sep-2012
30-Sep-2011
(Decrease)
US$'000 US$'000 % US$'000 US$'000 %
Depreciation of property, plant and equipment (250) (166) 50.6% (631) (584) 8.0% Property, plant and equipment written off - - N/M - (7) N/M Gain on disposal of available-for-sale investments - - N/M - 51 N/M Gain on disposal of property, plant and equipment - 1 N/M - 1 N/M (Loss) / gain on exchange differences (44) (194) -77.3% (346) (80) 332.5% Interest income 1 - N/M 2 1 100.0% Interest expense (91) (35) 160.0% (172) (112) 53.6% Inventory written off - - N/M - (146) N/M Post employment benefit liabilities (10) 4 N/M (29) - N/M
Page 1 of 7
1 (b) (i) A statement of financial position (for the issuer and group), together w ith a comparative statement as at the end of the immediately preceding financial year.ST AT EMENT OF FINANCIAL POSIT ION
As at
As at
Increase/
As at
As at
Increase/
30-Sep-12
31-Dec-11
(Decrease)
30-Sep-12
31-Dec-11
(Decrease)
US$'000 US$'000 % US$'000 US$'000 %
Property, plant and equipment 5,476 3,979 37.6% 116 221 -47.5% Investment in subsidiaries - - N/M 27,707 25,318 9.4% Intangible assets 2,029 1,352 50.1% - - N/M Available-for-sale investments 111 451 -75.4% - - N/M Deferred income tax assets 56 59 -5.1% - - N/M
Total non-current assets 7,672 5,841 31.3% 27,823 25,539 8.9%
Inventories 21,672 19,744 9.8% - - N/M Trade and other receivables 15,920 12,779 24.6% - - N/M Amount due from subsidiaries - - N/M 1,107 4,267 -74.1% Amount due from related parties 64 - N/M - - N/M Deposits and prepayment 1,063 640 66.1% 13 54 -75.9% Cash and cash equivalents 2,705 2,445 10.6% 268 90 197.8%
Total current assets 41,424 35,608 16.3% 1,388 4,411 -68.5%
Share capital 28,394 27,435 3.5% 28,394 27,435 3.5% Revenue reserves 5,792 5,706 1.5% 1,221 2,419 -49.5% Capital reserves (358) (12) 2883.3% (574) (7) 8100.0% Fair value reserves (190) 147 N/M - - N/M Translation reserves (4,169) (4,404) -5.3% - - N/M
Equity attributable to equity holders of the Company 29,469 28,872 2.1% 29,041 29,847 -2.7% Non-controlling interests - 533 N/M - - N/M Total equity 29,469 29,405 0.2% 29,041 29,847 -2.7% Non-current liabilities
Deferred income tax liabilities 142 142 0.0% - - N/M
Borrowings (due after one year) 2,514 1,276 97.0% - - N/M Obligation under finance lease (due after one year) 136 153 -11.1% - - N/M Post employment benefit liabilities 181 152 19.1% - - N/M
Total non-current liabilities 2,973 1,723 72.5% - - N/M
Trade and other payables 8,282 5,513 50.2% (4) 2 N/M Accruals 1,147 544 110.8% 156 79 97.5% Amount due to subsidiaries - - N/M 5 - N/M Amount due to related parties 368 - N/M - - N/M Borrowings (due within one year) 4,915 2,599 89.1% - - N/M Obligation under finance lease (due within one year) 443 76 482.9% - - N/M Current income tax liabilities 1,425 1,589 -10.3% 13 22 -40.9% Bank overdraft 74 - N/M - - N/M
Total current liabilities 16,654 10,321 61.4% 170 103 65.0%
As at
As at
30-Sep-12
31-Dec-11
SECURED
US$'000 US$'000
Amount repayable within 1 year or less, or on demand 5,432 2,675
Amount repayable after 1 year 2,650 1,429
UNSECURED
Amount repayable within 1 year or less, or on demand - - Amount repayable after 1 year - -
Details of any collaterals
Mortgage loans amounting to US$ 2,711,636 (31 December 2011: US$ 1,490,510) are secured against leasehold properties with net book value of US$ 1,891,822 (31 December 2011: US$
1,920,753).
Finance lease obligations of US$ 578,441 (31 December 2011: US$ 229,463) are secured against the assets purchased.
Bank overdraft and borrowings of US$ 3,968,984 (31 December 2011: US$ 2,384,680) are secured by corporate guarantees from the Company. Borrowings of US$ 748,785 (31 December 2011: US$ NIL) are secured by a debenture over the assets of a subsidiary.
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1 (c) A statement of cash flow s (for the group), together w ith a comparative statement for the corresponding period of the immediately preceding financial year.
9 months ended
9 months ended
3Q FY2012 3Q FY2011
30-Sep-2012
30-Sep-2011
US$'000 US$'000 US$'000 US$'000
Post employment benefit liabilities 10 (4) 29 - Depreciation of property, plant and equipment 250 166 631 584
Exchange differences 48 93 206 2
Property, plant and equipment written off - - - 7
Gain on disposal of available-for-sale investments - - - (51) Interest expense 91 35 172 112
Interest income (1) - (2) (1) Inventory written off - - - 146
Employee's performance expense - - - 12
Gain on disposal of property, plant and equipment - (1) - (1)
In inventories (1,687) 447 (1,515) 652
In trade and other receivables (744) (666) (2,045) 2,169
In deposits and prepayment (329) (116) (398) (365) In trade and other payables 1,672 (737) 2,095 (2,189) In accruals 240 (6) 462 (337) In amount due to / from a related parties 310 115 290 5 (538) (963) (1,111) (65)
Income tax paid (478) (643) (755) (1,428) Interest paid (91) (35) (172) (112) Interest received 1 - 2 1
Acquisition of subsidiaries (Note 1) - - (1,845) (113) Proceeds from disposal of available-for-sale investments - - - 196
Proceeds from disposal of property, plant and equipment - 3 - 3
Purchase of property, plant and equipment (506) (197) (645) (294)
Repayment of trade financing (5,539) (3,812) (13,589) (13,156) Proceeds from trade financing 4,700 3,199 14,709 11,143
Repayment of term loan (186) (163) (406) (393) Proceeds from term loan 1,439 - 2,207 393
Repayment of obligation under finance lease (23) (33) (58) (60) Proceeds from finance lease 265 - 265 - Dividends paid - (967) (940) (2,689) Net cash generated from / (used in) financing activities 656 (1,776) 2,188 (4,762) NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENT S 24 (1,744) 186 (308) CASH AND CASH EQUIVALENT S AT BEGINNING OF T HE PERIOD 2,607 3,354 2,445 1,918
Bank balances, deposits and cash | 2,705 | 1,610 | 2,705 | 1,610 | |||
Bank overdraft | (74) | - | (74) | - | |||
2,631 | 1,610 | 2,631 | 1,610 |
USD | |
Properties, plant and equipment | 1,451,458 |
Inventories | 413,028 |
Trade and other receivables | 1,096,044 |
Deposits and prepayments | 24,616 |
Cash and bank equivalents | 151,972 |
Trade and other payables | (674,183) |
Accruals | (140,520) |
Amount due to related parties | (14,091) |
Trade financing | (633,473) |
Hire puchase creditors | (142,870) |
Provision for taxation | (46,602) |
Net assets acquired: | 1,485,379 |
Goodwill | 676,486 |
T otal consideration paid | 2,161,865 |
Less: 3,750,000 treasury shares transferred | (165,270) |
T otal cash consideration paid | 1,996,595 |
Less: Cash of subsidiary acquired | (151,972) |
Cash outflow on acquisition of subsidiary | 1,844,623 |
USD
Trade and other receivables | 182,201 |
Cash at bank and in hand | 2,176 |
Trade and other creditors | (39,086) |
Net assets acquired: | 145,291 |
Goodwill | 39,558 |
Less: Non-controlling interests | (69,740) |
T otal consideration paid | 115,109 |
Less: Cash of subsidiary acquired | (2,176) |
Cash outflow on acquisition of subsidiary | 112,933 |
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1 (d) (i) A statement (for the issuer and group) show ing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together w ith a comparative statement for the corresponding period of the immediately preceding financial year. Statement of changes in equity for the Group Group Share Capital T reasury Shares Capital Reserves Revenue Reserves Fair value Reserves T ranslation Reserves Non- controlling Interests T otal Equity
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Balance at 01-Jan-2012 28,739 (1,304) (12) 5,706 147 (4,404) 533 29,405
Total comprehensive income for the period
- - - 491 (103) 52 (57) 383
Balance at 31-Mar-2012 28,739 (1,304) (12) 6,197 44 (4,352) 476 29,788
Total comprehensive income for the period
Dividend paid
Acquisition of subsidiaries
- - - 170 (110) 85 (28) 117
- - - (940) - - - (940)
- 959 (346) - - - (448) 165
Balance at 30-Jun-2012 28,739 (345) (358) 5,427 (66) (4,267) - 29,130
Total comprehensive income for the period
- - - 365 (124) 98 - 339
Balance at 30-Sep-2012 28,739 (345) (358) 5,792 (190) (4,169) - 29,469
Balance at 01-Jan-2011 28,739 (1,323) - 3,324 (173) (4,491) - 26,076
Total comprehensive income for the period
Acquisition of subsidiary
- - - 1,913 281 (60) (3) 2,131
- - - - - - 69 69
Balance at 31-Mar-2011 28,739 (1,323) - 5,237 108 (4,551) 66 28,276
Total comprehensive income for the period
Treasury shares re-issued
Dividend paid
- - - 1,211 (124) (20) 32 1,099
- 19 (7) - - - - 12
- - - (1,722) - - - (1,722)
Balance at 30-Jun-2011 28,739 (1,304) (7) 4,726 (16) (4,571) 98 27,665
Total comprehensive income for the period
Dividend paid
- - - 1,255 958 77 (31) 2,259
- - - (968) - - - (968)
Balance at 30-Sep-2011 28,739 (1,304) (7) 5,013 942 (4,494) 67 28,956
US$'000 US$'000 US$'000 US$'000 US$'000
Balance at 01-Jan-2012 28,739 (1,304) (7) 2,419 29,847
Total comprehensive income for the period
- - - 18 18
Balance at 31-Mar-2012 28,739 (1,304) (7) 2,437 29,865
Total comprehensive income for the period
- - - (130) (130)
Dividend paid - - - (940) (940) Acquisition of subsidiaries - 959 (567) - 392
Balance at 30-Jun-2012 28,739 (345) (574) 1,367 29,187
Total comprehensive income for the period
- - - (146) (146)
Balance at 30-Sep-2012 28,739 (345) (574) 1,221 29,041
Balance at 01-Jan-2011 28,739 (1,323) - 3,014 30,430
Total comprehensive income for the period
- - - 108 108
Balance at 31-Mar-2011 28,739 (1,323) - 3,122 30,538
Total comprehensive income for the period
Treasury shares re-issued
- - - 1,204 1,204
- 19 (7) - 12
Dividend paid - - - (1,722) (1,722) Balance at 30-Jun-2011 28,739 (1,304) (7) 2,604 30,032
Total comprehensive income for the period
- - - (4) (4)
Dividend paid - - - (968) (968) Balance at 30-Sep-2011 28,739 (1,304) (7) 1,632 29,060
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1 (d) (ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or w arrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles, as w ell as the number of shares held as treasury shares, if any, against the total number of issued shares excluding treasury shares of the issuer, as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year.
There were no changes in the issued share capital of the Company during 3Q FY2012.
As announced on 09 May 2012, the Company completed a sales and purchase agreement with minority shareholders of a subsidiary, New Century Aerospace Pte Ltd to acquire all their shareholdings by the transfer of 3,522,600 treasury shares and the grant of a call option to purchase a maximum of 3,522,600 new shares at S$0.12 within a period of 2 years commencing from 30 April 2012.
As at 30 September 2012, there were 2,620,725 treasury shares held by the Company with a total consideration of US$0.35m (30 September 2011: 9,893,325 treasury shares worth US$1.3m). These shares were held as treasury shares and deducted against shareholders' equity. There was no purchase of ordinary shares to be held as treasury shares for 3Q FY2012 (3Q FY2011: NIL).
As at
30-Sep-12
As at
31-Dec-11
('000) ('000) Total number of issued shares 658,990 658,990
Total number of treasury shares (2,621) (9,893)
Total number of issued shares excluding treasury shares 656,369 649,097
('000) US$'000
Balance as at 01-Jan-2012 9,893 1,304
Use of treasury shares to acquire shares from minority shareholders of New Century Aerospace Pte Ltd (3,522) (464) Use of treasury shares as part consideration for the purchase of Colbree Precision Ltd (3,750) (495) Balance as at 30-Sep-2012 2,621 345
This consolidated financial information has not been audited nor reviewed by the external auditors.
3. Where the figures have been audited or review ed, the auditors' report (including any qualifications or emphasis of matter).Not applicable.
4. Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied.The Group and Company have applied the same accounting policies and methods of computations in the financial statements for the current financial year and is consistent with those of the most recent audited financial statements for the financial year ended 31 December 2011 except for the adoption of the new and revised Financial Reporting Standards which became effective for the financial period beginning on or after 1 January 2012. The adoption of these new and revised accounting standards did not give rise to any significant impact on the financial statements for the financial year ended 31 December 2012.
5. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, w hat has changed, as w ell as the reasons for, and the effect of, the change.The Group and the Company have adopted the new and revised Financial Reporting Standards (FRS) which are effective for its financial year beginning 1 January 2012. These changes in accounting policies are assessed to have no material impact to the current or prior results of the Group and of the Company.
6. Earnings per ordinary share of the group for the current period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends; (a) Based on w eighted average number of shares and (b) On a fully diluted basis (detailing any adjustments made to the earnings) Group Group
9 months ended
9 months ended
3Q FY2012 3Q FY2011
30-Sep-2012
30-Sep-2011
Weighted average number of shares in issue ('000) 652,234 649,005 652,234 649,005
Earnings per share (US cents) 0.06 0.19 0.16 0.67
On a fully diluted basis (US cents) 0.06 0.19 0.16 0.67
a) The weighted average number of shares is computed based on issued shares excluding treasury shares.
b) There is an outstanding call option which grant the right to purchase a maximum of 3,522,600 new shares at S$0.12 within a period of 2 years commencing from 30 April 2012.
As at
30-Sep-12
As at
31-Dec-11
As at
30-Sep-12
As at
31-Dec-11
Number of shares in issue ('000) 656,369 649,097 656,369 649,097
Net assets value per ordinary share (US cents) 4.49 4.45 4.42 4.60
a) The Net Assets Value per ordinary share is computed based on issued shares excluding treasury shares.
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8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. It must include a discussion of the follow ing:- (a) any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (w here applicable) seasonal or cyclical factors; and (b) any material factors that affected cash flow , w orking capital, assets or liabilities of the group during the current financial period reported on. REVIEW OF PERFORMANCE a) Income Statement
In 3Q FY2012, sales declined by 1.0% to US$15.9m from US$16.0m in the previous corresponding period. This is due to lower demand from our customers in the life science segments, offset by the maiden sales contribution of US$1.6m from Colbree Engineering Group ("Colbree").
Gross profit margin declined from 21.6% in 3Q FY2011 to 16.5% in 3Q FY2012 due mainly to product mix in the avionics segment being skewed towards lower margin products. Administrative expenses increased by 16.9% from US$1.6m in 3Q FY2011 to US$1.9m in 2QFY2012 mainly due to higher staff costs and one-off professional fees associated with the acquisition of Colbree.
As a result, profit before tax declined by 63.1% from US$1.6m in 3Q FY2011 to US$0.6m in 3Q FY2012.
Property, plant and equipment increased by 37.6% from US$4.0m as at 4Q FY2011 to US$5.5m as at 3Q FY2012 mainly due to the acquisition of Colbree.
Trade & other receivables increased by 24.6% from US$12.8m as at 4Q FY2011 to US$15.9m as at 3Q FY2012 mainly due to the additional of US$1.5m in trade & other receivables resulting from the acquisition of Colbree.
Current liabilities increased by 61.4% from US$10.3m as at 4Q FY2011 to US$16.7m as at 3Q FY2012 This was mainly due to higher trade & other payables and increased borrowings for additional working capital.
Net cash used in operating activities was US$0.1m in 3Q FY2012 compared with net cash generated of US$0.2m in 3Q FY2011. This was mainly due to the purchase of additional inventory by Colbree and for the Honeywell kitting project announced in April.
Net cash of US$0.5m used in investing activities was mainly due to the acquisition of additional machines by Colbree.
Net cash inflow of US$0.7m from financing activities was mainly due to the increase in term loans, offset by repayment of short term borrowings.
Not applicable.
10. 11. A commentary at the date of announcement of the significant trends and competitive conditions of the industry in w hich the group operates and any know n factors or events that may affect the group in the next report period and the next 12 months.The Board is not aware of any significant trends or changes in the industry which are likely to affect the Group in the next reporting period and the next 12 months.
If a decision regarding dividend has been made. (a) Current Financial Period Reported OnNil
(b) Corresponding Period of the Immediately Preceding Financial YearNil
12. If no dividend has been declared (recommended), a statement to that effect.No dividend has been declared or recommended for the third quarter ended 30 September 2012.
13. If the Group has obtained a general mandate from shareholders for IPT s, the aggregate value of such transactions as required under Rule 920(1)(a)(ii). If no IPT mandate has been obtained, a statement to that effect.The Group does not have a general mandate for interested person transactions under Rule 920.
BY ORDER OF T HE BOARD
Ong Beng Hong
Company Secretary
12 November 2012
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ADVANCED INTEGRATED MANUFACTURING CORP. LTD.
Registration No: 200405216C
Pursuant to Rule 705(5) of the SGX-ST Listing Manual, we, Dr Tan Kim Yong and Tan Gim Seng, being Directors of Advanced Integrated Manufacturing Corp. Ltd. ("the Company") do hereby confirm on behalf of the Board of Directors of the Company that, to the best of their knowledge, nothing has come to the attention of the Board of Directors of the Company which may render the Group's unaudited financial statements for the third quarter and nine months ended 30 September 2012 to be false or misleading in any material aspect.
On behalf of the Board of Directors:
Dr Tan Kim Yong Tan Gim Seng
Group Chairman and CEO Executive Director
12 November 2012
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