TAIPEI, Taiwan, Dec. 21, 2012 (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 selected Asia-Pacific markets, today announced consolidated financial results for the nine months ended September 30, 2012.
Nine Months Ended September 30, 2012 Financial Highlights:
- Revenues were $332.5 million, a decrease of 17.0% from $400.7 million in 9M 2011
- Gross profit was $34.4 million, a decrease of 7.7% from $37.3 million in 9M 2011
- Gross profit margin was 10.3%, compared with 9.3% in 9M 2011
- Net income attributable to APWC shareholders was $5.7 million, an increase of 45.7% from $3.9 million in 9M 2011
- Basic and diluted earnings per share was $0.42, an increase of 44.8% from $0.29 in 9M 2011
- $66.7 million in cash and cash equivalents at September 30, 2012
Financial Summary
| $ million USD, except EPS | 9M 2012 | 9M 2011 | % Change |
| Net Sales | $332.5 | $400.7 | -17.0% |
| Gross Profit | $34.4 | $37.3 | -7.7% |
| Selling, General and Administrative Expenses | $22.9 | $26.8 | -14.3% |
| Operating Income | $15.6 | $12.2 | +27.7% |
| Net Income attributable to APWC | $5.7 | $3.9 | +45.7% |
| EPS | $0.42 | $0.29 | +44.8% |
Nine Months Ended September 30, 2012 Results
Revenues for the nine months ended September 30, 2012 were $332.5 million, a 17.0% decrease from $400.7 million in the year-ago period, primarily attributable to lower sales in China and suspension of Siam Pacific operations during the first quarter of 2012. Gross profit for the nine months ended September 30, 2012 decreased by 7.7% to $34.4 million from $37.3 million in the year-ago period, representing gross margins of 10.3% and 9.3%, respectively. The increase in gross margin ratio is attributable to changes in inventory provision.
Selling, general and administrative expenses for the nine months ended September 30, 2012 decreased 14.3% to $22.9 million from $26.8 million in the year ago period, primarily attributable to SG&A cost savings related to the disposal of Shangdong Fiber Optic Cable (China), partially offset by additional flooding damages identified in its Siam Pacific (Thailand) facility and higher administrative expenses in its business units. Operating income increased 27.7% to $15.6 million for the nine months ended September 30, 2012 from $12.2 million in the corresponding period of 2011.
Net income attributable to APWC shareholders was $5.7 million for the nine months ended September 30, 2012 compared to $3.9 million in the corresponding period in 2011. Net income per basic and diluted share was $0.42 for the period, compared to $0.29 in the same period in 2011. The basic and diluted weighted average shares outstanding were 13.8 million for both periods.
Financial Conditions
As of September 30, 2012, APWC had $66.7 million in cash and cash equivalents, $9.6 million in unrestricted short-term bank deposits, and $11.2 million in restricted short-term bank deposits, totaling $87.5 million, compared to cash and cash equivalents and unrestricted and restricted bank deposits totaling $91.2 million as of December 31, 2011.
Total current assets were $322.8 million as of September 30, 2012 compared to $288.7 million at December 31, 2011. Working capital was $179.6 million as of September 30, 2012, as compared to $171.0 million at December 31, 2011. Shareholders' equity attributable to APWC was $153.8 million at September 30, 2012, compared to $146.5 million at December 31, 2011.
APWC used $4.6 million in cash from operating activities during the nine months ended September 30, 2012 compared to $7.3 million in cash provided from operations in the comparable period of 2011. Accounts receivable was $110.0 million at September 30, 2012, representing 89 average days sales outstanding, compared to $98.3 million and 92 average days sales outstanding at December 31, 2011.
Share Repurchase Program
The Company announced Wednesday that it has commenced its share repurchase program, pursuant to which the Company is authorized to repurchase up to $2 million worth of its common shares over the next 12 months. The Company has retained a financial advisor as manager of the share repurchase program, which will be conducted in accordance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The Company expects to implement this share repurchase program in a manner consistent with market conditions and the interest of its shareholders. The common shares may be repurchased on the open market, in privately negotiated transactions, in block trades or otherwise. The timing and the extent of any purchases will depend upon market conditions, the trading price of the common shares and other factors, and subject to the restrictions relating to volume, price and timing under applicable laws and regulations.
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 http://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 COMPREHENSIVE INCOME | ||
| (Amounts in thousands of US Dollars, except share data) | ||
| For the nine-months | ||
| ended September 30, | ||
| 2011 | 2012 | |
| (unaudited) | (unaudited) | |
| Net sales | ||
| Manufactured products (sales to related parties amounted to $3,987 and $2,289 for the nine-months ended September 30, 2011 and 2012, respectively) | $364,432 | $292,790 |
| Distributed products | 20,151 | 36,465 |
| Supply, delivery and installation of wires and cables | 16,140 | 3,290 |
| 400,723 | 332,545 | |
| Cost of sales (purchases from related parties amounted to $42,745 and $28,317 for the nine-months ended September 30, 2011 and 2012, respectively) | (363,436) | (298,130) |
| Gross profit | 37,287 | 34,415 |
| Selling, general and administrative expenses | (26,786) | (22,944) |
| Recovery for doubtful accounts | 1,691 | 244 |
| Charge related to flooding | 0 | (752) |
| Recovery of losses from flooding | 0 | 4,611 |
| Income from operations | 12,192 | 15,574 |
| Exchange gain, net | 73 | 1,532 |
| Interest income | 1,062 | 1,192 |
| Interest expense | (2,789) | (1,590) |
| Loss on disposal of an investment | (68) | 0 |
| Share of net gain of equity investees | 15 | 18 |
| Other income, net | 805 | 948 |
| Income before income taxes | 11,290 | 17,674 |
| Income taxes expense | (4,195) | (5,981) |
| Net income | 7,095 | 11,693 |
| Less: Net income attributable to non-controlling interests | (3,152) | (5,947) |
| Net income attributable to APWC shareholders | 3,943 | 5,746 |
| Basic and diluted earnings per share | 0.29 | 0.42 |
| Basic and diluted weighted average common shares outstanding | 13,830,769 | 13,830,769 |
| Other comprehensive (loss) income | ||
| Currency translation adjustment | (4,684) | 5,782 |
| Pension liability adjustments | 540 | (2,465) |
| Other comprehensive (loss) income | (4,144) | 3,317 |
| Comprehensive income | 2,951 | 15,010 |
| Less: comprehensive income attributable to noncontrolling interest | 1,219 | 6,866 |
| Comprehensive income attributable to APWC shareholders | 1,732 | 8,144 |
| ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (In thousands of US Dollars, except share data) | ||
|
As of December 31, 2011 |
As of September 30, 2012, (unaudited) |
|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $76,672 | $66,670 |
| Unrestricted short-term bank deposits | 2,529 | 9,621 |
| Restricted short-term bank deposits | 12,024 | 11,235 |
| Accounts receivable, net of allowance for doubtful accounts of $4,614 and $3,624 as at December 31, 2011 and September 30, 2012, respectively | 98,329 | 110,015 |
| Amounts due from related parties | 5,227 | 4,962 |
| Inventories | ||
| Distributed products | 2,243 | 10,585 |
| Finished products | 35,786 | 45,693 |
| Work-in-progress | 16,434 | 22,606 |
| Raw materials and supplies | 24,552 | 28,014 |
| 79,015 | 106,898 | |
| Deferred tax assets | 5,185 | 4,572 |
| Prepaid expenses | 7,157 | 3,649 |
| Other current assets | 2,559 | 5,189 |
| Total current assets | 288,697 | 322,811 |
| Property, plant and equipment: | ||
| Land | 5,964 | 6,161 |
| Land use rights | 2,900 | 2,909 |
| Buildings | 49,749 | 52,353 |
| Machinery and equipment | 118,984 | 123,072 |
| Motor vehicles | 4,203 | 4,303 |
| Office equipment | 6,675 | 6,794 |
| Construction in progress | 2,547 | 3,001 |
| 191,022 | 198,593 | |
| Accumulated depreciation and amortization | (148,108) | (150,960) |
| 42,914 | 47,633 | |
| Investments | 618 | 636 |
| Investments in equity investees | 4,435 | 4,452 |
| Other assets | 108 | 87 |
| Deferred tax assets | 517 | 539 |
| 5,678 | 5,714 | |
| Total assets | $337,289 | $376,158 |
| LIABILITIES AND EQUITY | ||
| Current liabilities: | ||
| Bank loans and overdrafts | 52,813 | 64,368 |
| Accounts payable | 22,148 | 39,840 |
| Accrued expenses | 10,737 | 11,602 |
| Amounts due to related parties | 14,693 | 12,683 |
| Short-term loans from the immediate holding company | 1,732 | 1,732 |
| Income tax liabilities | 9,835 | 10,676 |
| Other current liabilities | 5,783 | 2,325 |
| Total current liabilities | 117,741 | 143,226 |
| Non-current liabilities: | ||
| Other non-current liabilities | 3,678 | 6,037 |
| Deferred tax liabilities | 1,181 | 1,181 |
| Total non-current liabilities | 4,859 | 7,218 |
| Total liabilities | 122,600 | 150,444 |
| Commitments and contingencies | ||
| EQUITY: | ||
| Common stock, $0.01 par value: | ||
| Authorized shares of 50,000,000 shares at December 31, 2011 and Sep 30,2012 | ||
| Issued and outstanding shares --- 13,830,769 shares | 138 | 138 |
| Additional paid-in capital | 111,541 | 111,541 |
| Retained earnings | 34,545 | 39,438 |
| Accumulated other comprehensive income | 286 | 2,684 |
| Total APWC shareholders' equity | 146,510 | 153,801 |
| Non-controlling interests | 68,179 | 71,913 |
| Total equity | 214,689 | 225,714 |
| Total liabilities and equity | $337,289 | $376,158 |
| ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES | ||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (In thousands of U.S. Dollars) | ||
| For the nine-months | ||
| ended September 30, | ||
| 2,011 | 2,012 | |
| (unaudited) | (unaudited) | |
| Net cash provided by (used in) operating activities | $7,260 | ($4,568) |
| Net cash used in investing activities | (10,021) | (14,122) |
| Net cash provided by financing activities | 19,336 | 7,844 |
| Effect of exchange rate changes on cash and cash equivalents | (3,681) | 844 |
| Net increase (decrease) in cash and cash equivalents | 12,894 | (10,002) |
| Cash and cash equivalents at beginning of period | 63,217 | 76,672 |
| Cash and cash equivalents at end of period | $76,111 | $66,670 |