Asia Pacific Wire & Cable Corporation Announces Nine Months 2012 Results

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: frank.tseng@apwcc.com
         Web: http://www.apwcc.com
        
         Investor Relations Contact:
         MZ Group
         Mr. Scott Powell, Senior Vice President
         Phone: +1-212-301-7130
         Email: scott.powell@mzgroup.us
         Web: http://www.mz-ir.com