Asia Pacific Wire and Cable Corporation Reports First Nine Months 2013 Financial Results

Asia Pacific Wire and Cable Corporation Reports First Nine Months 2013
Financial Results

  oTotal sales increased 1.2% for the period ended September 30, 2013 to
    $336.4 million compared with the same period in 2012
  oGenerated $10.4 million of cash inflows from operations for the first nine
    months ended September 30, 2013 vs. $4.6 million cash outflows the first
    nine months ended September 30, 2012
  o$67 million in cash and cash equivalents as of September 30, 2013

TAIPEI, Taiwan, Dec. 31, 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 nine months ended September 30, 2013.

Financial Summary                                                    
                                                                   
Q3 2013 Financial Results                                            
                                                                   
                                   Q3 2012          Q3 2013          CHANGE
Revenues                           $332.5 million   $336.4 million   +1.2%
Gross Profit                        $34.4 million    $34.3 million    --
Net Income Attributable to APWC     $5.7 million     $3.1 million     -45.6%
EPS                                $0.42            $0.22            -47.6%
                                                                   
* Earnings per share are based on 13.8 million shares for the nine-month
period ended September 30, 2012 and 2013, respectively.

Year to Date 2013 Results

Revenues for the nine months ended September 30, 2013 were $336.4 million, a
1.2% increase from the corresponding period in 2012. Higher sales of
distributed products and SDI were partially offset by lower sales of
manufactured products.

Gross profit for first nine months of 2013 was $34.3 million, essentially flat
compared to $34.4 million in the year-ago period, representing gross margins
of 10.2% and 10.3%, respectively. Gross margins declined slightly from the
prior period as a result of reduced sales of manufactured products, which
carry higher gross margins compared to distributed products.

Selling, general and administrative expenses for the nine months ended
September 30, 2013 decreased 2.2% to $22.4 million.Operating income was $11.2
million compared to $15.6 million in the first nine months of 2012.Excluding
the $3.9 million net recovery from insurance coverage due to flooding recorded
in the first nine months of 2012, operating income decreased by approximately
4% in the first nine months of 2013.

Net income attributable to APWC shareholders was $3.1 million for the first
nine months of 2013 compared to $5.7 million in the corresponding period in
2012. Net income per basic and diluted share was $0.22 for the period,
compared to $0.42 in the first nine months of 2012. The basic and diluted
weighted average shares outstanding were 13.8 million in both periods.

Financial Condition

As of September 30, 2013, APWC had $67.0 million in cash and cash equivalents
and $10.8 million in restricted short-term bank deposits, totaling $77.8
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 $309.9 million at September 30, 2013 compared to
$330.2 million at December 31, 2012. Working capital was $180.6 million at
September 30, 2013.For the period ended September 30, 2013 APWC had short
term bank loans and overdrafts of $43.8 million, down from $57.8 million at
December 31, 2012. The Company had no long term debt outstanding at September
30, 2013. Shareholders' equity attributable to APWC was $159.9 million at
September 30, 2013 compared to $161.7 million at December 31, 2012.

APWC generated approximately $10.4 million of cash from operating activities
during the first nine months of 2013, an improvement of $15 million compared
to $4.6 million of cash used for operations in the corresponding period in
2012, mainly because of $6.1 million cash inflows from accounts and notes
receivable in 2013 and $9.2 outflows in 2012. APWC borrowed less and paid
back $15.6 million of bank debt which led to $17.9 million cash outflows in
the first nine months of 2013, comparing to $7.8 million cash inflows in the
same period of 2012.The Company had capital expenditures of $7.2 million in
the first nine months of 2013 compared to $7.6 million in the first nine
months of 2012.

Business Updates

Australia Pacific Electric Cable Pty. Ltd., one of APWC's subsidiaries, has
entered the medium and high voltage power cable market through a public tender
process.Although the project size is relatively small, it still serves as a
stepping stone to the vast power cable market in the South Pacific Region.

Sigma Cable Company Pte. Ltd., which is an APWC subsidiary based in Singapore,
has begun to expand SDI project work from medium voltage to higher voltage
power cables.We expect to enter the high voltage power cables SDI projects in
the coming years.The shift in product mix is expected to generate higher
margin for the subsidiary and is expected to open up additional market
opportunities in the country. 

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 per share data)
                                                        For the nine-month
                                                        ended September 30,
                                                        2012       2013
Net sales                                                          
Manufactured products (including sales to related
parties amounted to $2,253 and $1,559 for the            $292,790   $283,683
nine-months ended September 30, 2012 and 2013,
respectively)
Distributed products                                     36,465     41,053
Supply, delivery and installation of wires and cables    3,290      11,641
                                                        332,545    336,377
Cost of sales (including purchases from related parties
amounted to$28,317 and $29,842 for the nine-months ended (298,130)  (302,040)
September 30, 2012 and 2013, respectively)
Gross profit                                             34,415     34,337
Selling, general and administrative expenses             (22,944)   (22,429)
Recovery (allowance) for doubtful accounts              244        (254)
Impairment of investment                                0          (464)
Charge related to flooding                              (752)      0
Recovery of losses from flooding                        4,611      39
Income from operations                                   15,574     11,229
Exchange gain (loss), net                                1,532      (1,029)
Interest income                                          1,192      1,001
Interest expense                                         (1,590)    (1,485)
Gain on disposal of an investment                        0          556
Share of net gain (loss) of equity investees             18         (109)
Other income, net                                        948        805
Income before income taxes                               17,674     10,968
Income taxes expense                                     (5,981)    (3,806)
Net income                                               11,693     7,162
Less: Net income attributable to non-controlling         (5,947)    (4,073)
interests
Net income attributable to APWC                          5,746      3,089
Basic and diluted earnings per share                     0.42       0.22
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 per share data)
                                                          For the nine-month
                                                          ended September 30,
                                                          2012       2013
Net income                                                 $11,693   $7,162
Other comprehensive income (loss)                                    
Currency translation adjustment, net of tax of nil         5,782      (7,232)
Pension liability adjustments                              (2,465)    218
Reclassification of unrealized loss of available-for-sale  0          464
securities upon disposal or impairment
Other comprehensive income (loss) for the period           3,317      (6,550)
Total comprehensive income for the period                  15,010     612
Less: total comprehensive income attributable to           (6,866)    (2,442)
non-controlling interest
Total comprehensive income (loss) attributable to APWC     8,144      (1,830)
shareholders


ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of US Dollars, except per share data)
                                       As of              As of
                                      December           September
                                       31,2012 (Audited) 30,2013 (Unaudited)
                                                        
ASSETS                                                   
                                                        
Current assets:                                          
Cash and cash equivalents             $72,816            $67,007
Unrestricted short-term bank deposits 6,210              0
Restricted short-term bank deposits   11,217             10,787
Accounts receivable, net of allowance
for doubtful accounts of $2,580 and    125,128            115,583
$1,729 as of December 31, 2012 and
September 30, 2013, respectively
Amounts due from related parties      4,066              3,495
Inventories                                             
Distributed products                 12,780             14,609
Finished products                    40,589             42,239
Work-in-progress                     19,743             15,130
Raw materials and supplies           25,409             33,202
                                      98,521             105,180
                                                        
Deferred tax assets                   3,134              2,895
Prepaid expenses                      6,738              4,958
Short - term investment in            2,378              0
held-to-maturity securities
Total current assets                   330,208            309,905
                                                        
Property, plant and equipment:                           
Land                                  6,194              5,928
Land use rights                       2,914              2,963
Buildings                             52,372             51,294
Machinery and equipment               122,584            115,666
Motor vehicles                        4,336              4,625
Office equipment                      6,830              6,739
Construction in progress              4,998              7,107
                                      200,228            194,322
Accumulated depreciation and          (149,832)          (142,120)
impairment losses
                                      50,396             52,202
Investments                            1,002              976
Investments in equity investees        4,414              3,058
Other assets                           889                423
Deferred tax assets                    2,475              2,576
                                      8,780              7,033
Total assets                           $389,384           $369,140
                                                        
LIABILITIES AND EQUITY                                   
                                                        
Current liabilities:                                     
Bank loans and overdrafts             57,845             43,763
Accounts payable                      40,616             45,501
Accrued expenses                      13,499             10,526
Amounts due to related parties        11,428             12,899
Short-term loans from the immediate   1,732              1,732
holding company
Income tax liabilities                11,225             9,450
Other current liabilities             10,149             5,440
Total current liabilities              146,494            129,311
                                                        
Non-current liabilities:                                 
                                                        
Other non-current liabilities          6,060              6,296
Deferred tax liabilities               2,219              2,220
Total non-current liabilities          8,279              8,516
Total liabilities                      154,773            137,827
                                                        
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:                                      
Sep 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             48,642
Treasury shares                       (6)                (38)
Accumulated other comprehensive       5,424              503
income
Total APWC shareholders' equity        161,717            159,853
Non-controlling interests              72,894             71,460
Total equity                           234,611            231,313
Total liabilities and equity           $389,384           $369,140


ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands of U.S. Dollars)
                                                          For the nine-month
                                                          ended September30,
                                                          2012       2013
Net cash (used in) provided by operating activities        ($4,568)   $10,365
Net cash (used in) provided by investing activities        (14,122)   3,057
Net cash provided by (used in) financing activities        7,844      (17,897)
Effect of exchange rate changes on cash and                844        (1,334)
cashequivalents
Net decrease in cash and cash equivalents                  (10,002)   (5,809)
Cash and cash equivalents at beginning of period           76,672     72,816
Cash and cash equivalents at end of period                 $66,670    $67,007

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
 
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