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CST: 21/07/2019 18:05:07   

Asia Pacific Wire & Cable Corporation Ltd. Reports First Quarter 2019 Financial Results

25 Days ago

TAIPEI, Taiwan, June 26, 2019 (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 three months ended March 31, 2019. Unless otherwise indicated, all data are reported in US Dollars at the exchange rate prevailing on the date of the event or result reported.

First Three Months 2019 Financial Results (Ended March 31, 2019)
 
  First 3 Months 2019 First 3 Months 2018 CHANGE
Revenues $ 81.6 million $ 106.1 million (23.1)%
Gross Profit $ 6.0 million $ 7.9 million (24.9)%
Net Income (Loss) $ (0.67) million $ 0.09 million (875.6)%
EPS(1) $ (0.05) $ 0.01 (600.0)%
 
(1)The calculation of the earnings per share is based on 13,819,669 and 13,819,669 basic and diluted weighted common shares issued and outstanding for the three months ended March 31, 2019 and 2018, respectively.

First Three Months 2019 Results 

Net revenues for the three months ended March 31, 2019, were $81.6 million, a decrease of 23.1% from $106.1 million in the prior year.  The decrease was primarily attributable to revenue decreases in the Company’s Thailand, North Asia and Rest of World (ROW) regions. Net revenue in the Company’s Thailand region decreased by 9.8%, primarily due to less projects from the public sector. Revenues in the Company's North Asia region decreased by 29.9%, primarily due to negative impact of the trade war between the United States and China. Revenues in the Company's Rest of World ("ROW") region decreased by 23.1%, primarily due to intense competition. The Company's North Asia region includes China and Hong Kong; the Thailand region contains the operations and sales inside Thailand; the ROW region includes Singapore, Australia and the other markets where APWC has operations or sales outside of the Thailand region and North Asia region.

Operating profit for the three months ended March 31, 2019 decreased by 110.5% to $(0.2) million from $1.8 million in the same period last year.  Operating margin decreased by 113.6%, declining from 1.7% in 2018 to (0.2)% in 2019.  In the Thailand region, operating margin declined from 3.6% to 1.4%, which was attributable primarily to decreases in sales of higher margin products and increases in the advertising & sales promotion expenditures in an effort to expand the market. In the North Asia region, operating margin decreased slightly, primarily due to a decrease in revenue. The ROW region’s operating margin decrease in 2019 was primarily attributable to a decrease in revenue in the region.

Selling, general and administrative expenses for the first quarter of 2019 were $6.4 million, compared to $6.4 million reported in the first quarter of 2018.  Net loss attributable to APWC shareholders was $(0.67) million for the first quarter of 2019, compared to net income of $0.09 million in the same period in 2018.  The decrease in net income was primarily due to a decrease in revenue. The weighted average number of shares issued and outstanding was 13.82 million for the three months ended March 31, 2019 and 2018.

Financial Condition

APWC reported $64.0 million in cash and cash equivalents as of March 31, 2019, compared to cash and cash equivalents of $60.8 million as of December 31, 2018.

Current assets totaled $255.1 million as of March 31, 2019, compared to $254.1 million as of December 31, 2018.  Working capital was $184.1 million as of March 31, 2019.  Short term bank loans were $22.5 million at March 31, 2019, a decrease from $24.8 million at the end of 2018.  The Company had no long-term debt outstanding at March 31, 2019. Shareholder's equity attributable to APWC was $151.7 million as of March 31, 2019, compared to $150.0 million as of December 31, 2018.

APWC reported $6.7 million cash generated from operations during the three months ended March 31, 2019, compared to cash generated from operations of $14.3 million in the corresponding period in 2018. The decrease in cash generated from operations in 2019 was primarily attributable to increase in inventory and a decrease in net profit. The Company reported $1.4 million in cash outflows from investing activities during the three months ended March 31, 2019, compared to $1.0 million in cash outflows in the same period of 2018. The cash used more for investing activities in the first quarter of 2019 was attributable primarily to the increase in purchases of property, plant and equipment in the Thailand region.  APWC reported $2.9 million in cash outflows from financing activities during the first quarter of 2019, compared to $7.9 million in cash outflows from financing activities in the same period of 2018. The decrease in cash outflows in 2019 was primarily attributable to a decrease in the repayment of bank loans.

We encourage shareholders to visit the Company's website for further information (www.apwcc.com). Information on the Company's website or any other website does not constitute a portion of this release.

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.

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", "anticipates", "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.

Contact:
Investor Relations Contact:
Asia Alpha Investor Relations
Lisa A. Gray
Partner & Senior Account Manager
Phone: +1-212-989-9899
Email: lisa@asiaalphair.com 
Web:  https://asiaalphair.com/

 
 
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(Unaudited)
(Amounts in thousands of US Dollars, except share data)
       
  For the three months
  ended March 31,
    2019       2018  
   (Unaudited)    (Unaudited)
Revenue $ 81,601     $ 106,076  
Cost of sales   (75,641 )     (98,141 )
Gross profit   5,960       7,935  
               
Other operating income   397       421  
Selling, general and administrative expenses   (6,387 )     (6,449 )
Other operating expenses   (155 )     (141 )
Operating (loss)/profit   (185 )     1,766  
               
Finance costs   (286 )     (333 )
Finance income   139       89  
Share of loss of associates   (1 )     -  
Exchange (loss) gain   (165 )     345  
Other income   546       134  
Other expense   -       (1 )
Profit before tax   48       2,000  
Income tax expense   (430 )     (906 )
(Loss)/Profit for the period $ (382 )   $ 1,094  
               
Attributable to:              
Equity holders of the parent $ (667 )   $ 86  
Non-controlling interests $ 285     $ 1,008  
Basic and diluted earnings per share $ (0.05 )   $ 0.01  
Basic and diluted weighted average common shares outstanding   13,819,669       13,819,669  
               
               


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 three months
    ended March 31,
      2019       2018  
     (Unaudited)    (Unaudited)
(Loss)/Profit for the period $ (382 )   $ 1,094  
Other comprehensive income              
Other comprehensive income to be reclassified to profit or loss in subsequent periods:              
  Exchange differences on translation of foreign operations, net of tax of nil   3,615       7,580  
      3,615       7,580  
Other comprehensive income not to be reclassified to profit or loss in subsequent periods:              
  Changes in the fair value of equity instruments measured at FVOCI   (123 )     212  
  Income tax effect   25       (42 )
      (98 )     170  
  Re-measuring losses on defined benefit plans   (41 )     (84 )
  Income tax effect   8       17  
      (33 )     (67 )
                 
Other comprehensive income for the year , net of tax   3,484       7,683  
Total comprehensive income for the period, net of tax   3,102       8,777  
Attributable to:              
Equity holders of the parent   1,923       4,742   
Non-controlling interests   1,179       4,035  
    $ 3,102     $ 8,777  
                 
                 


ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of US Dollars, except share data)
       
  As of
March 31, 2019
(Unaudited)
  As of
December 31, 2018
(Audited)
       
Assets      
Current assets      
Cash and cash equivalents $ 63,998   $ 60,778
Financial assets at fair value through profit or loss   63     -
Trade receivables   72,080     79,617
Other receivables   8,792     12,422
Contract assets   1,332     1,460
Due from related parties   12,346     12,061
Inventories   92,472     83,925
Prepayments   1,175     1,140
Other current assets   2,841     2,745
    255,099     254,148
Non-current assets      
Financial assets at fair value through other comprehensive income   2,222     2,332
Property, plant and equipment   41,969     41,418
Right of use assets   3,680     -
Prepaid land lease payments   -     978
Investment properties   725     720
Intangible assets   155     157
Investments in associates accounted from using equity method   879     864
Deferred tax assets   4,093     3,919
Other non-current assets   1,733     1,262
    55,456     51,650
Total assets $ 310,555   $ 305,798
           
           


ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of US Dollars, except share data)
       
  As of
March 31, 2019
(Unaudited)
  As of
December 31, 2018
(Audited)
       
Liabilities      
Current liabilities      
Interest-bearing loans and borrowings $ 22,492     $ 24,814  
Trade and other payables   23,258       21,127  
Due to related parties   2,652       2,997  
Financial liabilities at fair value through profit or loss   -       142  
Accruals   13,349       14,197  
Current tax liabilities   4,080       3,863  
Employee benefit liabilities   1,543       1,282  
Financial lease liabilities   358       44  
Other current liabilities   3,218       3,272  
    70,950       71,738  
       
Non-current liabilities      
Employee benefit liabilities   8,370       8,273  
Financial lease liabilities   2,308       46  
Deferred tax liabilities   4,009       3,925  
    14,687       12,244  
Total liabilities   85,637       83,982  
       
       
Equity      
Issued capital   138       138  
Additional paid-in capital   110,376       110,376  
Treasury shares   (38 )     (38 )
Retained earnings   54,349       55,016  
Other components of equity   (13,159 )     (15,464 )
Equity attributable to equity holders of the parent   151,666       150,028  
Non-controlling interests   73,252       71,788  
Total equity $ 224,918     $ 221,816  
Total liabilities and equity $ 310,555     $ 305,798  
               
               



ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands of U.S. Dollars)
       
  For the three months
  ended March 31,
    2019       2018  
   (Unaudited)    (Unaudited)
Net cash provided by operating activities $ 6,732     $ 14,349  
Net cash used in investing activities   (1,367 )     (974 )
Net cash used in financing activities   (2,887 )     (7,925 )
Effect of exchange rate on cash and cash equivalents   742       2,463  
Net increase in cash and cash equivalents   3,220       7,913  
Cash and cash equivalents at beginning of period   60,778       46,093  
Cash and cash equivalents at end of period $ 63,998     $ 54,006  

 

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