News

Asia Pacific Wire & Cable Company Reports First Nine Months 2015 Financial Results

Dec 17, 2015

TAIPEI, Taiwan, Dec. 17, 2015 (GLOBE NEWSWIRE) -- Asia Pacific Wire & Cable Corporation Limited (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, 2015. 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 Nine Months 2015 Financial Results(Ended September 30, 2015)
 
  First 9 Months 2015 First 9 Months 2014 CHANGE
Revenues $ 291.1 million   $ 338.9 million     -14.2 %
Gross Profit $ 16.7 million   $ 28.9 million     -42.2 %
Net Income/(Loss) $ (6.1) million   $ 0.3 million   --
EPS(1) $ (0.44) $ 0.02   --
 

(1) Earnings per share are based on 13.8 million shares in the first nine months of 2014 and 2015 Revenues for the nine months ended September 30, 2015 were $291.1 million, down from $338.9 million in the same period of the prior year. The decrease was primarily attributable to a 23.4% decrease in sales in the Company's North Asia region due to a challenging economic climate in China and a 21.9% decrease in the Rest of the World ("ROW") region due to market competition from China and a depreciation in local currencies. In Thailand, revenue increased in local currency by 5.7%, but increased only 1% in USD due to currency depreciation. APWC's ROW region includes Singapore, Australia and the other markets where APWC has operations or sales outside of the Thailand and North Asia regions. The North Asia region includes China and Hong Kong, and the Thailand region contains the operations and sales inside Thailand.

The gross profit for the nine months ended September 30, 2015 declined by 42.2% to $16.7 million from $28.9 million in the same period last year. Gross margin was down by 32.7%, falling from 8.5% in the first nine months of 2014 to 5.7% in the comparable period this year. In the Thailand region, gross margin fell following a decline in higher margin Thai government projects and local currency depreciation. In the North Asia region, the gross margin decreased due to a drop in copper prices and an increase in labor costs. The ROW region was also affected by the drop in copper prices but the gross margin remained the same, with an increased margin from trading being offset by a decreased margin in sales of manufactured products.


Selling, general and administrative expenses of $18.9 million were incurred for the first nine months of 2015, compared to $20.6 million reported in the year ago period. Operating loss was $2.2 million, compared to an operating income of $6.3 million in the comparable nine month period last year.

Net loss attributable to APWC shareholders was ($6.1) million for the first nine months of 2015, compared to net income of $0.3 million in 2014. Net loss per share was ($0.44) for the first nine months of 2015, while net income of $0.02 per share was reported for the comparable period a year ago. The weighted average number of shares outstanding was 13.8 million for the first nine months of each of 2015 and 2014.

APWC reported $39.5 million in cash and cash equivalents as of September 30, 2015, compared to cash and cash equivalents of $68.9 million on December 31, 2014.

Current assets totaled $255.7 million on September 30, 2015 compared to $318.0 million as of December 31, 2014. Working capital was $145.6 million as of September 30, 2015, compared to $169.5 as of December 31, 2014. Short term bank loans were reported at $44.1 million on the same date, down from $53.9 million at the end of the 2014. Shareholder's equity attributable to APWC was $135.7 million as of September 30, 2015, compared to $153.0 million on December 31, 2014.

Over the nine months ended September 30, 2015, the Company used $17.5 million in cash from operating activities, compared to a $1.6 million in the comparable nine months of 2014. Capital expenditures totaled $5.4 million for the first nine months of 2015, compared to $4.1 million in the comparable period last year.

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, visithttp://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 INCOME STATEMENTS
(Unaudited)
(Amounts in thousands of US Dollars, except share data)
   
  For the nine months
  ended September 30,  (Unaudited)
    2015       2014  
Sales of goods / services $ 291,079     $ 338,872  
Cost of sales   (274,343 )     (309,926 )
Gross profit   16,736       28,946  
       
Other operating income   107       154  
Selling, general and administrative expenses   (18,886 )     (20,600 )
Other operating expenses   (162 )     (2,179 )
Operating (loss)/income   (2,205 )     6,321  
       
Finance costs   (1,223 )     (1,212 )
Finance income   572       850  
Share of loss  of associates   (561 )     (415 )
Gain on disposal of investment   32       (178 )
Exchange (loss)/gain   (4,420 )     778  
Other income   1,018       781  
Other expense   (253 )     (92 )
(Loss)/profit before tax   (7,040 )     6,833  
       
Income tax expense   (445 )     (3,954 )
       
(Loss)/profit for the year $ (7,485 )   $ 2,879  
       
Attributable to:      
Equity holders of the parent   (6,123 )     265  
Non-controlling interests   (1,362 )     2,614  
Basic and diluted earnings per share $ (0.44 )   $ 0.02  
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 nine months
  ended September 30,  (Unaudited)
    2015       2014  
(Loss)/profit for the year $ (7,485 )   $ 2,879  
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 $0   (17,384 )     721  
       
Net (loss) on available-for-sale financial assets   (661 )     0  
Income tax effect   198       0  
    (463 )     0  
       
Other comprehensive income not to be reclassified to profit or loss in subsequent periods:      
Re-measuring losses on defined benefit plans   0       (1 )
Income tax effect   0       0  
Defined benefit pension plan, net of tax   0       (1 )
       
Other comprehensive (loss)/profit for the period, net of tax   (17,847 )     720  
       
Total comprehensive(loss)/profit for the period, net of tax   (25,332 )     3,599  
Attributable to:      
Equity holders of the parent   (17,343 )     4,207  
Non-controlling interests   (7,989 )     (608 )
  $ (25,332 )   $ 3,599  
               

 

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of US Dollars, except share data)
  As of September 
30, 2015 
(Unaudited)
  As of December 
31, 2014
       
ASSETS      
Current assets:      
Cash and cash equivalents $ 39,537     $ 68,863  
Other current financial assets – at fair value through profit or loss   257       0  
Trade receivables   78,500       88,194  
Other receivables   15,423       23,024  
Due from related parties   13,613       24,711  
Inventories   102,229       107,408  
Gross amounts due from customers for contract work-in-progress   698       1,931  
Prepayments   1,461       1,279  
Other current assets   3,963       2,582  
    255,681       317,992  
Non-current assets      
Other non-current financial assets-available for sale   1,753       2,479  
Other non-current financial assets-held to maturity   304       336  
Property, plant and requirement   45,400       47,929  
Prepaid land lease payments   1,789       1,859  
Investment properties   655       757  
Intangible assets   95       110  
Investments in associates   1,901       2,571  
Other non-current assets   437       88  
Deferred tax assets   4,997       4,551  
    57,331       60,680  
Total assets $ 313,012     $ 378,672  
               
 
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of US Dollars, except share data)
 
  As of September 
30, 2015 
(Unaudited)
  As of December 
31, 2014
       
Current liabilities:      
Interest-bearing loans and borrowings $ 44,089     $ 53,863  
Trade and other payables   32,018       36,467  
Due to related parties   9,478       22,208  
Due to immediate holding company   1,537       1,537  
Other current financial liabilities at fair value through profit or loss   0       0  
Accruals   11,190       12,060  
Current tax liabilities   6,247       7,752  
Employee benefit liability   554       665  
Financial lease liabilities   8       31  
Provisions for employee benefit   397       413  
Onerous contracts provisions   11       41  
Dividend payable   414       428  
Other current liabilities   4,158       12,994  
    110,101       148,459  
       
Non-current liabilities      
Employee benefit liability   5,867       6,073  
Financial lease liabilities   48       38  
Provisions for employee benefit   143       171  
Deferred tax liabilities   2,970       2,720  
    9,028       9,002  
Total liabilities   119,129       157,461  
       
Equity      
 Issued capital   138       138  
 Additional paid-in capital   110,608       110,608  
 Treasury shares   (38 )     (38 )
 Retained earnings   46,254       52,338  
 Other components of equity   (21,234 )     (10,014 )
Equity attributable to equity holders of the parent   135,728       153,032  
Non-controlling interests   58,155       68,179  
Total equity   193,883       221,211  
Total liabilities and equity $ 313,012     $ 378,672  
               
 
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands of U.S. Dollars)
  For the nine months
  ended September 30,  (Unaudited)
    2015       2014  
Net cash (used in) by operating activities $ (17,150 )   $ (1,621 )
Net cash (used in) investing activities   (5,383 )     (4,049 )
Net cash (used in)/provided by financing activities   (9,550 )     24,691  
Effect of exchange rate changes on cash and cash  equivalents   2,757       (265 )
Net (decrease)/increase in cash and cash equivalents   (29,326 )     18,756  
Cash and cash equivalents at beginning of period   68,863       62,509  
Cash and cash equivalents at end of period $ 39,537     $ 81,265  

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
Ted Haberfield
President
Tel: +1-760-755-2716
Email: thaberfield@mzgroup.us
Web: www.mzgroup.us

Company Contacts:
Frank Tseng
Tel: 8862 2712 2558 ext. 66
Email: frank.tseng@apwcc.com

Scott Powell
Tel: +1 212 301 7130
Email: scott.powell@hcinternational.net

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