MABUHAY VINYL CORPORATION AND SUBSIDIARY


Consolidated Financial Highlights

For the year (in thousand pesos) 1999 1998 1997
Net Sales 2,510,602 1,211,225 1,233,885
Gross Profit 605,141 302,039 98,708
Net Income After Tax 97,378 44,741 112,100
Cash Dividends -- 7,884 --
Stock Dividends -- -- 131,394
       
At year end (in thousand pesos)      
Curent Assets 1,631,969 995,303 915,877
Curent Liabilities 1,101,655 522,368 379,039
Stockholder's Equity 1,240,216 1,142,838 1,119,372
       
Per Share (in pesos)
Earnings 0.128 0.058 0.146
Cash Dividends -- 0.010 --
Stock Dividends -- -- 0.167
       
Financial Ratios      
Current Ratio 1.18:1 1.13:1 2.42:1
Dept-to-Equity 1.12:1 0.77:1 0.34:1



Consolidated Balance Sheets

ASSETS 1999 1998 1997
CURRENT ASSETS
Cash & Cash Equivalents 430,697,406 158,805,662 265,455,266
Account Recievables, net 611,370,098 351,961,008 278,384,559
Inventories 506,450,012 401,602,571 282,646,929
Other Current Assets 83,451,887 82,934,112 89,389,769
Total Current Assets 1,631,969,353 995,303,353 915,876,523
       
INVESTMENTS IN STOCK 26,978,682 27,005,682 3,737,182
PROPERTY, PLANT AND EQUIPMENT, NET 1,628,774,261 1,580,493,558 585,540,897
DEPOSIT ON LETTER OF CREDIT -- -- 447,145,438
PEROPERATING EXPENSES 51,459,066 66,879,653 10,204,115
OTHER ASSETS 16,140,399 14,279,511 10,450,339
  3,335,321,811 2,675,039,637 1,972,974,072
       
LIABILITIES AND STOCKHOLDERS EQUIT
CURRENT LIABILITIES
Notes and Trust reciepts payable 527,629,545 290,026,060 333,138,881
Acceptance Payable -- 78,965,075 --
Accounts payable & Accrued expenses 455,719,405 96,578,775 20,130,437
Income Tax Payable -- 4,207,624 1,129,068
Current Portion of Long-term Dept 527,629,545 35,586,775 20,130,437
Other Current Liabilities 22,300,459 17,004,520 18,505,327
Total Current Liabilities 1,101,655,398 522,368,460 379,039,134
       
LONG-TERN DEBTS, net 284,325,435 355,863,594 --
OUTSIDE INTERESTS 729,124,801 653,969,808 474,562,479
       
STOCKHOLDER'S EQUITY
Capital Stock 788,366,867 788,366,867 788,366,867
Additional Paid-in Capital 169,763,886 169,763,886 169,763,886
Deposits on Stocks Subscription 10,876 10,876 10,876
Stocks held in Treasury (13,392,021) (13,392,021) --
Revaluation Increent 9,886,404 9,886,404 9,886,404
Retained Earnings 285,580,165 188,201,763 151,344,426
  1,240,216,117 1,142,837,775 1,119,372,459
  3,355,321,811 2,675,039,637 1,972,974,072



Consilidated Statements of Income & Retained Earnings

  1999 1998 1997
NET SALES 2,510,601,952 1,211,224,729 1,233,885,309
GROSS PROFIT ON SALES 605,140,601 302,039,060 227,634,299
       
OPERATING EXPENSES
Distribution 181,045,192 132,107,706 120,202,775
Administrative 141,229,846 76,137,867 53,418,740
Selling 21,648,631 214,299,263 178,926,335
  343,993,669 214,229,263 178,926,335
OPERATING INCOME 261,146,932 87,739,797 98,707,964
OTHER INCOME (EXPENSES)
Interest and Financing Charge, Net (86,074,242) (52,402,387) 21,551,334
Foreign Exchange Gain, Net 1,016,130 24,950,839 33,606,160
Miscellaneous, net 4,866,805 9,735,854 10,149,722
  (80,191,307) (17,715,694) 65,307,216
INCOME BEFORE PROVISION FOR INCOME TAX 180,955,625 70,024,103 164,015,180
PROVISION FOR INCOME TAX      
Current 8,729,663 18,787,674 32,694,039
Deferred (307,433) (1,636,457) 104,216
  8,422,230 17,151,217 32,798,255
INCOME BEFORE EQUITY OF OUTSIDE INTERESTS IN NET EARNINGS 172,533,395 52,872,886 131,216,925
EQUITY OF OUTSIDE INTERESTS IN NET EARNINGS (75,154,993) (8,131,881) (19,116,786)
NET INCOME FOR THE YEAR 97,378,402 44,741,005 112,100,139
       
RETAINED EARNINGS      
Beggining of the year 188,201,763 151,344,426 170,638,764
Cash dividend -- (7,883,668) --
Stock dividend -- -- (131,394,477)
End of Year 285,580,165 188,201,763 151,344,426
       
BASIC DILUTED / EARNINGS PER SHARE 0.128 00.58 0.142
WEIGHTED AVERAGE NO. OF SHARES 761,316,867 777,510,200 788,366,867



Consolidated Statements of Cash Flows

CASH FLOWS FROM OPERATING ACTIVITIES 1999 1998 1997
Net income for the year 97,378,402 44,741,005 112,100,139
Provided by (used in) operating activities:      
Depreciation 167,769,893 52,793,518 44,252,965
(Gain)/Loss on sale of property & equipment 112,780 2,055,236 (2,273,855)
Amortization of preoperating expenses 6,498,467 -- --
Deferred Income tax (307,433) (1,636,457) 104,216
       
(Increase)/decrease in:      
Accounts Receivable (259,409,090) (73,556,871) (52,080,165)
Inventories (104,847,441) (118,955,671) (104,326,714)
Other Current Assets (379,565) 6,455,657 (75,689,982)
       
Increase/(decrease) in:      
Notes and trust reciepts payable (28,661,590) (33,582,671) 191,956,031
Accounts payable and accrued expenses (4,207,624) 3,078,556 (9,063,559)
Other current liabilities 5,295,939 (1,500,807) 267,153
Net cash provided by(used in) operating activities 238,383,368 (43,660,138) 103,107,423
       
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from (payments of) notes payable, net 187,300,000 69,434,925 (75,500,000)
Proceeds from (payments of) long-term dept, net (11,118,576) 385,314,579 (6,526,854)
Proceeds from capital stock subscription -- -- 393,845,884
Payment to acquire treasury stocks -- (13,392,021) --
Payment of cash dividends -- (7,883,668) --
Outside interests 75,154,993 175,407,329 341,955,979
Net cash provided by financial activities 251,336,417 612,881,144 650,775,009
       
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 271,891,744 (106,649,604) (10,887,669)
CASH AND CASH EQUIVALENTS      
Beginning of the year 158,805,662 265,455,266 276,342,935
End of the year 430,697,406 158,805,662 265,455,266
       
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the year:      
Interest 97,259,445 72,401,513 39,929,693
Income tax 10,569,718 14,292,100 41,757,598
       
SUPLIMENTAL DISCLOSURES
Non-cash Financing activities:
Declaration of stock dividend -- -- 131,394,477
Stock issue costs previously deferred and where set off against IPO proceeds -- -- 2,566,738
       
Non-cash investing activities:
Interest capitalized in property, plant and equiptment account for PRII -- 15,495,246 --