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TAIPEI, Taiwan, Aug. 28, 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 six months ended June 30, 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 Six Months 2019 Results Net revenues for the six months ended June 30, 2019, were $160.6 million, a decrease of 26.1% from $217.3 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 17.9%, primarily due to the postponement of the delivery of products per the request of major clients. Revenues in the Company's North Asia region decreased by 30.7%, 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 35.0%, 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 six months ended June 30, 2019 decreased by 151.3% to $(3.5) million from $6.8 million in the same period last year. Operating margin decreased by 169.2%, declining from 3.1% in 2018 to (2.2)% in 2019. In the Thailand region, operating margin declined from 6.4% to (2.1)%, which was attributable primarily to the postponement of delivery of high margin products . In the North Asia region, operating margin decreased from 3.2% to 2.0%, primarily due to a decrease in sales as a result of the trade war. The ROW region’s operating loss margin increase in 2019 to (3.6)% from (0.4)% in the same period in 2018 was primarily due to the erosion of the margin because of the competition.
Selling, general and administrative expenses for the first six months of 2019 were $13.1 million, compared to $12.8 million reported in the first six months of 2018. Net loss attributable to APWC shareholders was $(1.7) million for the first six months of 2019, compared to net income of $1.8 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 six months ended June 30, 2019 and 2018.
Financial Condition APWC reported $49.1 million in cash and cash equivalents as of June 30, 2019, compared to $60.8 million as of December 31, 2018.
Current assets totaled $249.5 million as of June 30, 2019, compared to $254.1 million as of December 31, 2018. Working capital was $181.9 million as of June 30, 2019. Short term bank loans were $21.6 million at June 30, 2019, a decrease from $24.8 million at the end of 2018. The Company had no long-term debt outstanding at June 30, 2019. Shareholder's equity attributable to APWC was $152.0 million as of June 30, 2019, compared to $150.0 million as of December 31, 2018.
APWC reported $4.2 million in cash outflows from operations during the six months ended June 30, 2019, compared to cash generated from operations of $18.9 million in the corresponding period in 2018. The decrease in cash outflows from operations in 2019 was primarily attributable to increase in inventory. The Company reported $2.3 million in cash outflows from investing activities during the six months ended June 30, 2019, compared to $2.3 million in cash outflows in the same period of 2018. The cash used more for investing activities in the first six months of 2019 was attributable primarily to the purchases of property, plant and equipment in the Thailand region. APWC reported $7.1 million in cash outflows from financing activities during the first six months of 2019, compared to $8.0 million in cash outflows from financing activities in the same period of 2018. The decrease in cash outflows in the first six months of 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.
The Company would also like to remind shareholders that the Annual General Meeting (the “Meeting”) of the shareholders (the “Shareholders”) of Asia Pacific Wire & Cable Corporation Limited (the “Company”) will be held at the executive offices of Fox Horan & Camerini, LLP, located at 885 Third Avenue, 17th Floor, New York, NY 10022, USA, on August 30, 2019 at 9:00 a.m. (New York time) / 9:00 p.m. (Taipei time).
Shareholders are encouraged to attend the Meeting. Shareholders not able to attend the meeting in person are invited to participate by conference telephone by dialing into the meeting on one of the following numbers:
Participant (U.S. Domestic) Toll Free Dial-In Number: 1 (866) 294-7501
The Company will also give a presentation on business updates. If you wish to view our presentation, you may use the following link. The link will not be activated until 9 am on August 30th, 2019 New York time. Once the link is activated, you will be able to enter your name and email address to join.
PLEASE DO NOT USE THE SIGN IN BUTTON LOCATED ON THE TOP RIGHT CORNER OF THE PAGE YOU WILL BE DIRECTED TO WHEN YOU ACCESS WITH YOUR COMPUTER/LAPTOP
Please check our website for more instructions, you can also find the following link on our website https://pewc.webex.com/pewc-tc/e.php?MTID=m01f46e7fdc959b8f1eb341f4690d101d
About Asia Pacific Wire & Cable Corporation
Asia Pacific Wire & Cable Corporation is principally engaged in three principal business lines that consist of manufacturing and distributing of wire and cable products such as power cables and enameled wires, and providing project engineering services to certain customers. The Company manufactures and sells a wide variety of wire and cable products in primarily four general categories: telecommunications cables, power transmission cables, enameled wires, and electronic wires. In addition, the Company acts as a distributor of wire and cable products manufactured by PEWC and other third party suppliers in Singapore. The Company also offers project engineering services in the supply, delivery and installation(“SDI”) of medium and high voltage cables for power transmission projects in Singapore.
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. |
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Contact: Investor Relations Contact:
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| ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES | ||
| CONSOLIDATED INCOME STATEMENTS | ||
| (Unaudited) | ||
| (Amounts in thousands of US Dollars, except share data) | ||
| For the six months | ||
| ended June 30, | ||
| 2019 | 2018 | |
| (Unaudited) | (Unaudited) | |
| Revenue | $160,602 | $217,315 |
| Cost of sales | (151,434) | (198,070) |
| Gross profit | 9,168 | 19,245 |
| Other operating income | 572 | 377 |
| Selling, general and administrative expenses | (13,131) | (12,812) |
| Other operating expenses | (83) | (38) |
| Operating (loss)/profit | (3,474) | 6,772 |
| Finance costs | (562) | (687) |
| Finance income | 277 | 258 |
| Share of loss of associates | (1) | (1) |
| Exchange gain | 981 | 67 |
| Other income | 384 | 495 |
| Other expense | (82) | - |
| Profit before tax | (2,477) | 6,904 |
| Income tax expense | 163 | (2,413) |
| (Loss)/Profit for the period | $(2,314) | $4,491 |
| Attributable to: | ||
| Equity holders of the parent | $(1,723) | $1,848 |
| Non-controlling interests | $(591) | $2,643 |
| Basic and diluted earnings per share | $(0.12) | $0.13 |
| 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) | ||
| For the six months | ||
| ended June 30, | ||
| 2019 | 2018 | |
| (Unaudited) | (Unaudited) | |
| (Loss)/Profit for the period | $(2,314) | $4,491 |
| Other comprehensive (loss)/income | ||
| Other comprehensive income/(loss) to be reclassified to profit or loss in subsequent periods: | ||
| Exchange differences on translation of foreign operations, net of tax of nil | 7,123 | (4,816) |
| 7,123 | (4,816) | |
| Other comprehensive income/(loss) not to be reclassified to profit or loss in subsequent periods: | ||
| Changes in the fair value of equity instruments measured at FVOCI | 227 | (288) |
| Income tax effect | (45) | 58 |
| 182 | (230) | |
| Re-measuring (loss)/income on defined benefit plans | (124) | 32 |
| Income tax effect | 24 | (6) |
| (100) | 26 | |
| Other comprehensive income/(loss) for the period , net of tax | 7,205 | (5,020) |
| Total comprehensive income/(loss) for the period, net of tax | 4,891 | (529) |
| Attributable to: | ||
| Equity holders of the parent | 1,414 | 661 |
| Non-controlling interests | 3,477 | (1,190) |
| $4,891 | $(529) | |
| ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (In thousands of US Dollars) | ||
| As of June 30, 2019 (Unaudited) |
As of December 31, 2018 (Audited) |
|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $49,095 | $60,778 |
| Trade receivables | 71,822 | 79,617 |
| Other receivables | 8,955 | 12,422 |
| Contract assets | 1,372 | 1,460 |
| Due from related parties | 12,711 | 12,061 |
| Inventories | 100,207 | 83,925 |
| Prepayments | 2,252 | 1,140 |
| Other current assets | 3,094 | 2,745 |
| 249,508 | 254,148 | |
| Non-current assets | ||
| Financial assets at fair value through other comprehensive income | 2,598 | 2,332 |
| Property, plant and equipment | 42,421 | 41,418 |
| Right of use assets | 3,564 | - |
| Prepaid land lease payments | - | 978 |
| Investment properties | 733 | 720 |
| Intangible assets | 142 | 157 |
| Investments in associates | 910 | 864 |
| Deferred tax assets | 4,890 | 3,919 |
| Other non-current assets | 2,029 | 1,262 |
| 57,287 | 51,650 | |
| Total assets | $306,795 | $305,798 |
| ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (In thousands of US Dollars) | ||
| As of June 30, 2019 (Unaudited) |
As of December 31, 2018 (Audited) |
|
| Liabilities | ||
| Current liabilities | ||
| Interest-bearing loans and borrowings | $21,635 | $24,814 |
| Trade and other payables | 22,330 | 21,127 |
| Due to related parties | 2,514 | 2,997 |
| Financial liabilities at fair value through profit or loss | 234 | 142 |
| Accruals | 13,156 | 14,197 |
| Current tax liabilities | 2,961 | 3,863 |
| Employee benefit liabilities | 1,774 | 1,282 |
| Financial lease liabilities | 421 | 44 |
| Other current liabilities | 2,554 | 3,272 |
| 67,579 | 71,738 | |
| Non-current liabilities | ||
| Employee benefit liabilities | 9,553 | 8,273 |
| Financial lease liabilities | 2,176 | 46 |
| Deferred tax liabilities | 3,543 | 3,925 |
| 15,272 | 12,244 | |
| Total liabilities | 82,851 | 83,982 |
| Equity | ||
| Issued capital | 138 | 138 |
| Additional paid-in capital | 110,376 | 110,376 |
| Treasury shares | (38) | (38) |
| Retained earnings | 53,293 | 55,016 |
| Other components of equity | (11,736) | (15,464) |
| Equity attributable to equity holders of the parent | 152,033 | 150,028 |
| Non-controlling interests | 71,911 | 71,788 |
| Total equity | $223,944 | $221,816 |
| Total liabilities and equity | $306,795 | $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 six months | ||
| ended June 30, | ||
| 2019 | 2018 | |
| (Unaudited) | (Unaudited) | |
| Net cash (used in)/provided by operating activities | $(4,230) | $18,949 |
| Net cash used in investing activities | (2,305) | (2,263) |
| Net cash used in financing activities | (7,126) | (8,035) |
| Effect of exchange rate | 1,978 | (2,305 |
| Net (decrease)/increase in cash and cash equivalents | (11,683) | 6,346 |
| Cash and cash equivalents at beginning of period | 60,778 | 46,093 |
| Cash and cash equivalents at end of period | $49,095 | $52,439 |