Asia Pacific Wire and Cable Company Reports First Half 2013 Financial Results

Asia Pacific Wire and Cable Company Reports First Half 2013 Financial Results

TAIPEI, Taiwan, Oct. 16, 2013 (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 the Asia-Pacific region, today announced the
Company's financial results for the six months ended June 30, 2013.

Financial Summary

1H 2013 Financial Results
                                        
            1H 2013        1H 2012        CHANGE
Revenues    $212.6 million $215.3 million -1.2%
Gross Profit $19.7 million  $22.8 million  -13.3%
Net Income  $1.3 million   $5.3 million   -75.9%
EPS         $0.09          $0.38          -76.3%

* Earnings per share are based on 13.8 million and 13.8 million shares in 1H
2012 and 1H 2013, respectively.

First Half 2013 Results

Revenues for the six months ended June 30, 2013 were $212.6 million, an
approximate 1.2% decrease from the prior period.The slight decrease in sales
was attributed to a decrease in the Company's manufactured products which
include; enameled wire, telecommunications cable and power cables.Power cable
sales in Thailand were the primary cause of the decrease in sales year over
year mainly due to slowdown in customers' orders. Sales of telecommunications
cable and enameled wire remained relatively flat year-over-year.Offsetting
these declines were double digit increases in the sales of distributed
products which increased by71% to $27.8 million, and the revenue recognition
of contracts for Supply, Delivery and Installation ("SDI") of cable which
increased by 337% to $7.1 million for the period.

Combined gross profit for the first half of 2013 fell by 13.3% to $19.7
million from $22.8 million in the year-ago period.Gross margins for the six
month ended June 30^th in 2013 and 2012, were 9.3% and 10.6%, respectively.
Gross margins were down 129 basis points year-over-year as a result of the
increase of inventory provision due to decreasing copper prices. Excluding the
inventory provision, gross margins were 9.6% and 9.3% for the first half of
2013 and 2012, respectively.

Selling, general and administrative expenses for the first six months
decreased 6% to $14.5 million due to expense reductions in response to lower
sales.Operating income was $4.7 million compared to $11 million in the first
half of 2012.

Net income attributable to APWC shareholders was $1.3 million for the first
half of 2013 compared to $5.3 million in the corresponding period in 2012.
Earnings per basic and diluted share were $0.09 for the period, compared to
$0.38 in the first six months of 2012. The basic and diluted weighted average
shares outstanding were 13.8 million for the first half of 2012 and 2013.

Financial Condition

As of June 30, 2013, APWC had $59.3 million in cash and cash equivalents, $2.9
million in unrestricted short-term bank deposits, and $10.8 million in
restricted short-term bank deposits, totaling $73.0 million, compared to cash
and cash equivalents and unrestricted and restricted bank deposits totaling
$90.2 million as of December 31, 2012.

Total current assets were $306.2 million at June 30, 2013 compared to $330.2
million at December 31, 2012. Working capital was $177.3 million as June 30,
2013, compared to $183.7 million at December 31, 2012.APWC ended June 30,
2013 with total short term bank loans and overdrafts of $54.1 million, down
from $57.8 million at December 31, 2012. The Company had no long term debt
outstanding at June 30, 2013. Shareholders' equity attributable to APWC was
$157.6 million at June 30, 2013 compared to $161.7 million at December 31,
2012.

APWC used approximately $6.6 million of cash for operating activities during
the first six months of 2013, a reduction of $9.8 million compared to $16.4
million of cash outflows from operations in the corresponding period in 2012.
The Company had capital expenditures of $5.7 million in the first half of 2013
compared to $4.5 million in the first half of 2012.

Business Updates

Asia Pacific Wire and Cable's newly opened Ningbo factory has finished test
runs and started trial production of electronic wire.The target markets for
APWC's electronic wire are in consumer electronics and automotive
industries;both are fast-growing manufacturing sectors in China.

APWC's subsidiary in Shenzhen, China, is constructing a new factory to
partially switch its target market from originally predominated export sales
to domestic sales.The new factory is planned for completion before the end of
2013 and to start commercial production in February 2014.

The company will inject $2.5 million into its subsidiary in Shanghai, China
before the end of this month.The increased capital is mainly deployed for
replacing out-of-date machinery, thus increase efficiency and lowering
production cost to increase its competitiveness.The funds were also used to
reduce bank loans.

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 (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 OPERATIONS
(Unaudited)
(Amounts in thousands of US Dollars, except share data)
                                                        
                                                        For the six-month
                                                         ended June 30,
                                                        2012       2013
Net sales                                                          
Manufactured products (sales to related parties
amounted to $1,002 and $1,187 for the six-month ended    $197,436   $177,771
June 30, 2012 and 2013, respectively)
Distributed products                                    16,230     27,750
Supply, delivery and installation of wires and cables   1,628      7,116
                                                        215,294    212,637
Cost of sales (purchases from related parties amounted
to$22,952 and $20,952 for the six-month ended June 30,   (192,544)  (192,914)
2012 and 2013, respectively)
Gross profit                                             22,750     19,723
Selling, general and administrative expenses             (15,525)   (14,535)
Allowance for doubtful accounts                         (39)       (65)
Charge related to flooding                              (749)      0
Impairment of investment                                0          (464)
Recovery of losses from flooding                        4,611      40
Income from operations                                   11,048     4,699
Exchange gain (loss), net                                665        (378)
Interest income                                          659        768
Interest expense                                         (988)      (951)
Gain on disposal of an investment                        0          554
Share of net gain (loss) of equity investees             27         (47)
Other income, net                                        1,011      481
Income before income taxes                               12,422     5,126
Income taxes expense                                     (3,780)    (1,757)
Net income                                               8,642      3,369
Less: Net income attributable to non-controlling         (3,348)    (2,092)
interests
Net income attributable to APWC                          5,294      1,277
Basic and diluted earnings per share                     0.38       0.09
Basic and diluted weighted average common shares         13,830,769 13,821,612
outstanding
                                                                  

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(Amounts in thousands of US Dollars, except share data)
                                                            
                                                            For the six-month
                                                             ended June 30,
                                                            2012     2013
                                                            $8,642   $3,369
Net income                                                           
Other comprehensive income (loss)                                    
Currency translation adjustment, net of tax of nil           389      (7,075)
Pension liability adjustments                                10       158
Reclassification of unrealized loss of available-for-sale    0        464
securities upon disposal or impairment
Other comprehensive income (loss) for the period             399      (6,453)
Total comprehensive income (loss) for the period             9,041    (3,084)
Less: total comprehensive income attributable to             (2,546)  (1,029)
non-controlling interest
Total comprehensive income (loss) attributable to APWC       6,495    (4,113)
shareholders
                                                                    

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of US Dollars, except share data)
                                                        As of     As of June
                                                       December  30, 2013,
                                                        31, 2012  (Unaudited)
                                                                
ASSETS                                                           
                                                                
Current assets:                                                  
Cash and cash equivalents                              $72,816   $59,312
Unrestricted short-term bank deposits                  6,210     2,898
Restricted short-term bank deposits                    11,217    10,799
Accounts receivable, net of allowance for              125,128   105,620
 doubtful accounts of $2,580 and $2,499 as at                   
December 31, 2012 and June 30, 2013, respectively               
Amounts due from related parties                       4,066     4,692
Inventories                                                     
Distributed products                                  12,780    11,122
Finished products                                     40,589    46,560
Work-in-progress                                      19,743    16,515
Raw materials and supplies                            25,409    39,325
                                                       98,521    113,522
                                                                
Deferred tax assets                                    3,134     2,978
Prepaid expenses                                       6,738     6,401
Short - term investment in held-to-maturity            2,378     0
securities
Total current assets                                    330,208   306,222
                                                                
Property, plant and equipment:                                   
Land                                                   6,194     5,973
Land use rights                                        2,914     2,952
Buildings                                              52,372    51,216
Machinery and equipment                                122,584   116,710
Motor vehicles                                         4,336     4,400
Office equipment                                       6,830     6,668
Construction in progress                               4,998     7,081
                                                       200,228   195,000
Accumulated depreciation and impairment losses         (149,832) (142,948)
                                                       50,396    52,052
Investments                                             1,002     985
Investments in equity investees                         4,414     3,085
Other assets                                            889       182
Deferred tax assets                                     2,475     2,514
                                                       8,780     6,766
Total assets                                            $389,384  $365,040
                                                                
LIABILITIES AND EQUITY                                           
                                                                
Current liabilities:                                             
Bank loans and overdrafts                              57,845    54,145
Accounts payable                                       40,616    33,919
Accrued expenses                                       13,499    11,356
Amounts due to related parties                         11,428    13,304
Short-term loans from the immediate holding company    1,732     1,732
Income tax liabilities                                 11,225    9,694
Other current liabilities                              10,149    4,812
Total current liabilities                               146,494   128,962
                                                                
Non-current liabilities:                                         
                                                                
Other non-current liabilities                           6,060     6,183
Deferred tax liabilities                                2,219     2,278
Total non-current liabilities                           8,279     8,461
Total liabilities                                       154,773   137,423
                                                                
Commitments and contingencies                                    
                                                                
Shareholders' equity:                                            
Common shares, $0.01 per share:                                  
Authorized shares of 50,000,000                        138       138
Issued shares: 13,830,769                                        
Outstanding shares:                                              
Jun 30, 2013 – 13,819,669 shares                                
Dec 31, 2012 – 13,828,869 shares                                 
Additional paid-in capital                             110,608   110,608
Retained earnings                                      45,553    46,830
Treasury shares                                        (6)       (38)
Accumulated other comprehensive income                 5,424     33
Total APWC shareholders' equity                         161,717   157,571
Non-controlling interests                               72,894    70,046
Total equity                                            234,611   227,617
Total liabilities and equity                            $389,384  $365,040
                                                                

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands of U.S. Dollars)
                                                        For the six-month
                                                         ended June 30,
                                                        
                                                        2012        2013
Net cash (used in) operating activities                  ($16,409)   ($6,600)
Net cash provided by (used in) investing activities      (10,790)    1,757
Net cash provided by (used in) financing activities      4,373       (8,253)
Effect of exchange rate changes on cash and              381         (408)
cashequivalents
Net (decrease) in cash and cash                                     
 equivalents                                            (22,445)    (13,504)
Cash and cash equivalents at beginning of period         76,672      72,816
Cash and cash equivalents at end of period               $54,227     $59,312

CONTACT: Company Contact:
         Asia Pacific Wire & Cable Corporation Limited
         Mr. Ivan Hsia, CFO
         Phone: +886-2-2712-2558 ext. 27
         E-mail: ivan.hsia@apwcc.com
        
         Investor Relations Contact:
         MZ North America
         John Mattio, SVP
         Tel: +1-212-301-7130
         Email: john.mattio@mzgroup.us
         www.mzgroup.us