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: email@example.com Investor Relations Contact: MZ North America John Mattio, SVP Tel: +1-212-301-7130 Email: firstname.lastname@example.org www.mzgroup.us
Asia Pacific Wire and Cable Corporation Reports First Nine Months 2013 Financial Results
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