TAIPEI, Taiwan, December 6, 2011 /PRNewswire-Asia-FirstCall/ -- Asia Pacific Wire & Cable Corporation Limited (NASDAQ: APWC) ("APWC" or the "Company"), today announced unaudited consolidated results for the third quarter ended September 30, 2011.
The Company reported solid revenue growth in the third quarter and during the first nine months of 2011. However, the significant drop in the copper price in the third quarter of 2011 resulted in an inventory allowance, which reduced gross profit and caused an operating loss. The Company's products and services are primarily used in industrial, power and telecommunications infrastructure in the growing Asia-Pacific region.
Third-Quarter 2011 Financial Highlights:
Third-Quarter 2011 Results
Revenues in the quarter ended September 30, 2011 increased 13.9% to $130.2 million from $114.3 million in the third quarter of 2010. Gross profit was $8.0 million, down 47.6% from $15.2 million in the year-ago quarter. Gross profit includes a $3.1 million write down of inventory. The gross margin decreased to 6.1%, as compared to 13.3% in the year-ago quarter. The operating loss was $0.5 million, versus operating income of $7.7 million in the year-ago quarter. Selling, general and administrative expenses were $9.8 million, an increase of 31.9% from the year-ago quarter. This was mainly due to currency losses in various countries. Net loss attributable to APWC shareholders was $1.2 million, as compared to net income attributable to APWC shareholders of $3.6 million in the year-ago quarter. Net loss per basic and diluted share was $0.09, as compared to net income per basic and diluted share of $0.26 in the year-ago.
Nine-Month 2011 Results
Revenues in the nine months ended September 30, 2011 were $400.7 million, a 23.2% increase over $325.2 million in the year-ago period. Gross profit was $37.3 million, down 8.7% from $40.8 million in the year-ago period, representing gross margins of 9.3% and 12.6%, respectively. Gross profit includes a $3.3 million write down of inventory. Operating income was $12.2 million, a decrease of 38.5% from $19.8 million in the year-ago period. SG&A expense was $26.8 million, an increase of 30.7% from $20.5 million in the year-ago period, mostly due to currency losses. Net income attributable to APWC shareholders was $3.9 million, as compared to $11.1 million in the year-ago period. Net income per basic and diluted share was $0.29, as compared to $0.80 in the year-ago period.
Financial Condition
As of September 30, 2011, APWC had $76.1 million in cash and cash equivalents and $4.2 million in unrestricted short-term bank deposits, totaling $80.3 million, as compared to cash, cash equivalents, and unrestricted short-term bank deposits of $63.2 million as of December 31, 2010. Total current assets were $339.6 million as of September 30, 2011, as compared to $329.5 million at the end of 2010, and total current liabilities were $170.4 million as of September 30, 2011, compared to $158.8 million at the end of 2010. Working capital was $169.3 million as of September 30, 2011, as compared to $170.7 million at the end of 2010. Shareholders' equity attributable to APWC was $154.9 million, compared to $153.2 million at the end of 2010. Net book value per share increased to $11.20 from $11.08 per share at the end of 2010.
Recent Events
On October 31, 2011, the Company announced that Siam Pacific ("SP"), a subsidiary of the Company's Charoong Thai Wire and Cable ("Charoong Thai") in Thailand, had suspended operations temporarily due to damage sustained from the region's recent flooding. APWC is organizing an emergency technical and support team from affiliate companies to assist restoration of machineries and equipment at SP and to maintain supply of products to SP customers during the recovery period.
Separately, as previously announced on September 30, 2011 the sale of APWC's Subsidiary, the Shandong Pacific Fiber Optics Co. Ltd.., has been completed and approved in November by the local authorities.
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.
- financial tables follow -
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES (Unaudited) (Amounts in thousands of US Dollars, except share data) | |||||
For the three months ended | For the nine months ended | ||||
2010 | 2011 | 2010 | 2011 | ||
Net sales | |||||
Manufactured products (sales to related parties | $104,428 | $123,870 | $290,455 | $364,432 | |
Distributed products | 6,027 | 3,003 | 18,145 | 20,151 | |
Sales, delivery and installation of wires and cables | 3,890 | 3,317 | 16,620 | 16,140 | |
Total net sales | 114,345 | 130,190 | 325,220 | 400,723 | |
Cost of sales | (99,156) | (122,228) | (284,401) | (363,436) | |
Gross profit | 15,189 | 7,962 | 40,819 | 37,287 | |
Selling, general and administrative expenses | (7,440) | (9,810) | (20,498) | (26,786) | |
Recover (allowance) for doubtful debts | (86) | 1,326 | (486) | 1,691 | |
Income (loss) from operations | 7,663 | (522) | 19,835 | 12,192 | |
Exchange gain, net | 1,399 | 31 | 2,540 | 73 | |
Interest income | 152 | 410 | 401 | 1,062 | |
Interest expense | (701) | (994) | (1,901) | (2,789) | |
Loss on disposal of an investment | - | - | - | (68) | |
Share of net gain (loss) of equity investees | 11 | - | (14) | 15 | |
Other income, net | 505 | 313 | 974 | 805 | |
Income (loss) before income taxes | 9,029 | (762) | 21,835 | 11,290 | |
Income tax | (1,880) | 323 | (3,468) | (4,195) | |
Net income (loss) | 7,149 | (439) | 18,367 | 7,095 | |
Less: Net income attributable to non-controlling interests | (3,505) | (757) | (7,285) | (3,152) | |
Net income (loss) attributable to APWC | 3,644 | (1,196) | 11,082 | 3,943 | |
Basic and diluted income (loss) per share | $0.26 | ($0.09) | $0.80 | $0.29 | |
Basic and diluted weighted average common shares outstanding | 13,830,769 | 13,830,769 | 13,830,769 | 13,830,769 | |
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES (Amounts in thousands of US Dollars, except share data) | |||
December 31, 2010 | September 30, 2011 | ||
(Unaudited) | |||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $63,217 | $ 76,111 | |
Unrestricted short-term bank deposits | - | 4,171 | |
Restricted short-term bank deposits | 17,422 | 16,574 | |
Accounts receivable, net of allowance for doubtful accounts | 144,454 | 125,404 | |
Amounts due from related parties | 8,246 | 7,216 | |
Inventories | |||
Distributed products | 639 | 1,819 | |
Finished products | 32,781 | 37,876 | |
Consignment inventory | 3,051 | 8,421 | |
Products in process | 19,108 | 20,596 | |
Raw materials and supplies | 30,401 | 27,053 | |
85,980 | 95,765 | ||
Deferred tax assets | 3,320 | 3,244 | |
Prepaid expenses | 5,514 | 8,376 | |
Other current assets | 1,308 | 2,778 | |
Total current assets | 329,461 | 339,639 | |
Property, plant and equipment: | |||
Land | 6,291 | 6,030 | |
Land use rights | 2,999 | 3,064 | |
Buildings | 50,199 | 49,458 | |
Machinery and equipment | 126,906 | 125,091 | |
Motor vehicles | 4,431 | 4,554 | |
Office equipment | 6,915 | 7,005 | |
Construction in progress | 212 | 2,962 | |
197,953 | 198,164 | ||
Accumulated depreciation and amortization | (154,052) | (153,311) | |
Property, plant and equipment, net | 43,901 | 44,853 | |
Available-for-sales investments | 744 | 629 | |
Investment in equity investees | 3,242 | 3,256 | |
Goodwill | 8,801 | 8,801 | |
Other assets | 97 | 122 | |
Deferred tax assets | 677 | 746 | |
13,561 | 13,554 | ||
Total assets | $386,923 | $398,046 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities: | |||
Bank loans and overdrafts | $67,351 | $84,647 | |
Accounts payable | 41,989 | 36,387 | |
Accrued expenses | 13,197 | 11,444 | |
Amounts due to related parties | 17,140 | 17,473 | |
Short-term loans from the immediate holding | 1,732 | 1,732 | |
Income taxes liabilities | 10,627 | 7,827 | |
Other current liabilities | 6,772 | 10,841 | |
Total current liabilities | 158,808 | 170,351 | |
Other liabilities | 822 | 770 | |
Deferred tax liabilities | 1,581 | 1,465 | |
Total liabilities | 161,211 | 172,586 | |
Commitments and contingencies | |||
APWC Shareholders' equity: | |||
Common stock, $0.01 par value: | |||
Authorized shares of 50,000,000 shares at December 31, | |||
Issued and outstanding shares - 13,830,769 shares | 138 | 138 | |
Additional paid-in capital | 111,541 | 111,541 | |
Retained earnings | 40,229 | 44,172 | |
Accumulated other comprehensive income | 1,286 | (925) | |
Total APWC shareholders' equity | 153,194 | 154,926 | |
Non-controlling interests | 72,518 | 70,534 | |
Total shareholders' equity | 225,712 | 225,460 | |
Total liabilities and shareholders' equity | $386,923 | $398,046 | |
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Amounts in Thousands of U.S. Dollars) | |||
For the nine months ended | |||
2010 | 2011 | ||
Net cash provided by (used in) operating activities | ($7,933) | $7,260 | |
Net cash used in investing activities | (6,974) | (10,021) | |
Net cash provided by financing activities | 19,710 | 19,336 | |
Effect of exchange rate changes on cash and cash | |||
equivalents | 3,761 | (3,681) | |
Net increase in cash and cash | |||
equivalents | 8,564 | 12,894 | |
Cash and cash equivalents at beginning of period | 41,534 | 63,217 | |
Cash and cash equivalents at end of period | $50,098 | $76,111 | |
Company Contact: Asia Pacific Wire & Cable Corporation Limited Mr. Frank Tseng, CFO Phone: +886-2-2712-2558 ext. 66 E-mail: frank.tseng@apwcc.com | Investor Relations Contact: CCG Investor Relations Mr. John Harmon, CFA, Senior Account Manager Phone: +86-10-6561-6886 ext. 807 (Beijing) E-mail: john.harmon@ccgir.com | |
