Asia Pacific Wire & Cable Corporation Announces Nine Months 2012 Results TAIPEI, Taiwan, Dec. 21, 2012 (GLOBE NEWSWIRE) -- Asia Pacific Wire & Cable Corporation Limited (Nasdaq:APWC) ("APWC" or the "Company"), a leading manufacturer of wire and cable products for the telecommunications and electric-power industries in selected Asia-Pacific markets, today announced consolidated financial results for the nine months ended September 30, 2012. Nine Months Ended September 30, 2012 Financial Highlights: oRevenues were $332.5 million, a decrease of 17.0% from $400.7 million in 9M 2011 oGross profit was $34.4 million, a decrease of 7.7% from $37.3 million in 9M 2011 oGross profit margin was 10.3%, compared with 9.3% in 9M 2011 oNet income attributable to APWC shareholders was $5.7 million, an increase of 45.7% from $3.9 million in 9M 2011 oBasic and diluted earnings per share was $0.42, an increase of 44.8% from $0.29 in 9M 2011 o$66.7 million in cash and cash equivalents at September 30, 2012 Financial Summary $ million USD, except EPS 9M 2012 9M 2011 % Change Net Sales $332.5 $400.7 -17.0% Gross Profit $34.4 $37.3 -7.7% Selling, General and Administrative Expenses $22.9 $26.8 -14.3% Operating Income $15.6 $12.2 +27.7% Net Income attributable to APWC $5.7 $3.9 +45.7% EPS $0.42 $0.29 +44.8% Nine Months Ended September 30, 2012 Results Revenues for the nine months ended September 30, 2012 were $332.5 million, a 17.0% decrease from $400.7 million in the year-ago period, primarily attributable to lower sales in China and suspension of Siam Pacific operations during the first quarter of 2012. Gross profit for the nine months ended September 30, 2012 decreased by 7.7% to $34.4 million from $37.3 million in the year-ago period, representing gross margins of 10.3% and 9.3%, respectively. The increase in gross margin ratio is attributable to changes in inventory provision. Selling, general and administrative expenses for the nine months ended September 30, 2012 decreased 14.3% to $22.9 million from $26.8 million in the year ago period, primarily attributable to SG&A cost savings related to the disposal of Shangdong Fiber Optic Cable (China), partially offset by additional flooding damages identified in its Siam Pacific (Thailand) facility and higher administrative expenses in its business units. Operating income increased 27.7% to $15.6 million for the nine months ended September 30, 2012 from $12.2 million in the corresponding period of 2011. Net income attributable to APWC shareholders was $5.7 million for the nine months ended September 30, 2012 compared to $3.9 million in the corresponding period in 2011. Net income per basic and diluted share was $0.42 for the period, compared to $0.29 in the same period in 2011. The basic and diluted weighted average shares outstanding were 13.8 million for both periods. Financial Conditions As of September 30, 2012, APWC had $66.7 million in cash and cash equivalents, $9.6 million in unrestricted short-term bank deposits, and $11.2 million in restricted short-term bank deposits, totaling $87.5 million, compared to cash and cash equivalents and unrestricted and restricted bank deposits totaling $91.2 million as of December 31, 2011. Total current assets were $322.8 million as of September 30, 2012 compared to $288.7 million at December 31, 2011. Working capital was $179.6 million as of September 30, 2012, as compared to $171.0 million at December 31, 2011. Shareholders' equity attributable to APWC was $153.8 million at September 30, 2012, compared to $146.5 million at December 31, 2011. APWC used $4.6 million in cash from operating activities during the nine months ended September 30, 2012 compared to $7.3 million in cash provided from operations in the comparable period of 2011. Accounts receivable was $110.0 million at September 30, 2012, representing 89 average days sales outstanding, compared to $98.3 million and 92 average days sales outstanding at December 31, 2011. Share Repurchase Program The Company announced Wednesday that it has commenced its share repurchase program, pursuant to which the Company is authorized to repurchase up to $2 million worth of its common shares over the next 12 months. The Company has retained a financial advisor as manager of the share repurchase program, which will be conducted in accordance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The Company expects to implement this share repurchase program in a manner consistent with market conditions and the interest of its shareholders. The common shares may be repurchased on the open market, in privately negotiated transactions, in block trades or otherwise. The timing and the extent of any purchases will depend upon market conditions, the trading price of the common shares and other factors, and subject to the restrictions relating to volume, price and timing under applicable laws and regulations. About Asia Pacific Wire & Cable Corporation Asia Pacific Wire & Cable Corporation is principally engaged in the manufacture and distribution of telecommunications (copper and fiber optic) and power cable and enameled wire products in the Asia Pacific region, primarily in Thailand, China, Singapore and Australia. The Company manufactures and distributes its own wire and cable products and also distributes wire and cable products ("Distributed Products") manufactured by its principal shareholder, Pacific Electric Wire & Cable Company, a Taiwanese company ("PEWC"). The Company also provides project engineering services in the supply, delivery and installation ("SDI") of power cables to certain of its customers. For more information on the Company, visit http://www.apwcc.com. Information on the Company's Web site or any other Web site does not constitute a portion of this release. Safe Harbor Statement This release contains certain "forward-looking statements" relating to the Company, its business, and its subsidiary companies. These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website http://www.sec.gov. All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements. ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in thousands of US Dollars, except share data) For the nine-months ended September 30, 2011 2012 (unaudited) (unaudited) Net sales Manufactured products (sales to related parties amounted to $3,987 and $2,289 for the nine-months $364,432 $292,790 ended September 30, 2011 and 2012, respectively) Distributed products 20,151 36,465 Supply, delivery and installation of wires and cables 16,140 3,290 400,723 332,545 Cost of sales (purchases from related parties amounted to $42,745 and $28,317 for the nine-months ended (363,436) (298,130) September 30, 2011 and 2012, respectively) Gross profit 37,287 34,415 Selling, general and administrative expenses (26,786) (22,944) Recovery for doubtful accounts 1,691 244 Charge related to flooding 0 (752) Recovery of losses from flooding 0 4,611 Income from operations 12,192 15,574 Exchange gain, net 73 1,532 Interest income 1,062 1,192 Interest expense (2,789) (1,590) Loss on disposal of an investment (68) 0 Share of net gain of equity investees 15 18 Other income, net 805 948 Income before income taxes 11,290 17,674 Income taxes expense (4,195) (5,981) Net income 7,095 11,693 Less: Net income attributable to non-controlling (3,152) (5,947) interests Net income attributable to APWC shareholders 3,943 5,746 Basic and diluted earnings per share 0.29 0.42 Basic and diluted weighted average common shares 13,830,769 13,830,769 outstanding Other comprehensive (loss) income Currency translation adjustment (4,684) 5,782 Pension liability adjustments 540 (2,465) Other comprehensive (loss) income (4,144) 3,317 Comprehensive income 2,951 15,010 Less: comprehensive income attributable to 1,219 6,866 noncontrolling interest Comprehensive income attributable to APWC shareholders 1,732 8,144 ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands of US Dollars, except share data) As of As of December September 31, 2011 30, 2012, (unaudited) ASSETS Current assets: Cash and cash equivalents $76,672 $66,670 Unrestricted short-term bank deposits 2,529 9,621 Restricted short-term bank deposits 12,024 11,235 Accounts receivable, net of allowance for doubtful accounts of $4,614 and $3,624 as at December 31, 2011 98,329 110,015 and September 30, 2012, respectively Amounts due from related parties 5,227 4,962 Inventories Distributed products 2,243 10,585 Finished products 35,786 45,693 Work-in-progress 16,434 22,606 Raw materials and supplies 24,552 28,014 79,015 106,898 Deferred tax assets 5,185 4,572 Prepaid expenses 7,157 3,649 Other current assets 2,559 5,189 Total current assets 288,697 322,811 Property, plant and equipment: Land 5,964 6,161 Land use rights 2,900 2,909 Buildings 49,749 52,353 Machinery and equipment 118,984 123,072 Motor vehicles 4,203 4,303 Office equipment 6,675 6,794 Construction in progress 2,547 3,001 191,022 198,593 Accumulated depreciation and amortization (148,108) (150,960) 42,914 47,633 Investments 618 636 Investments in equity investees 4,435 4,452 Other assets 108 87 Deferred tax assets 517 539 5,678 5,714 Total assets $337,289 $376,158 LIABILITIES AND EQUITY Current liabilities: Bank loans and overdrafts 52,813 64,368 Accounts payable 22,148 39,840 Accrued expenses 10,737 11,602 Amounts due to related parties 14,693 12,683 Short-term loans from the immediate holding company 1,732 1,732 Income tax liabilities 9,835 10,676 Other current liabilities 5,783 2,325 Total current liabilities 117,741 143,226 Non-current liabilities: Other non-current liabilities 3,678 6,037 Deferred tax liabilities 1,181 1,181 Total non-current liabilities 4,859 7,218 Total liabilities 122,600 150,444 Commitments and contingencies EQUITY: Common stock, $0.01 par value: Authorized shares of 50,000,000 shares at December 31, 2011 and Sep 30,2012 Issued and outstanding shares --- 13,830,769 shares 138 138 Additional paid-in capital 111,541 111,541 Retained earnings 34,545 39,438 Accumulated other comprehensive income 286 2,684 Total APWC shareholders' equity 146,510 153,801 Non-controlling interests 68,179 71,913 Total equity 214,689 225,714 Total liabilities and equity $337,289 $376,158 ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of U.S. Dollars) For the nine-months ended September 30, 2,011 2,012 (unaudited) (unaudited) Net cash provided by (used in) operating activities $7,260 ($4,568) Net cash used in investing activities (10,021) (14,122) Net cash provided by financing activities 19,336 7,844 Effect of exchange rate changes on cash and cash (3,681) 844 equivalents Net increase (decrease) in cash and cash equivalents 12,894 (10,002) Cash and cash equivalents at beginning of period 63,217 76,672 Cash and cash equivalents at end of period $76,111 $66,670 CONTACT: Company Contact: Asia Pacific Wire & Cable Corporation Limited Mr. Frank Tseng, CFO Phone: +886-2-2712-2558 ext. 66 Email: firstname.lastname@example.org Web: http://www.apwcc.com Investor Relations Contact: MZ Group Mr. Scott Powell, Senior Vice President Phone: +1-212-301-7130 Email: email@example.com Web: http://www.mz-ir.com
Asia Pacific Wire & Cable Corporation Announces Nine Months 2012 Results
Press spacebar to pause and continue. Press esc to stop.