- Gross profit was $51.8 million, an increase of 18% from $43.9 million in FY2011
- Net income attributable to APWC shareholders was $10.9 million vs. a loss of $(5.4) million in FY2011
- Diluted earnings per share was $0.79 vs. a loss of $(0.39) in FY2011
- $72.8 million in cash and cash equivalents at December 31, 2012
TAIPEI, Taiwan, April 30, 2013 (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 fiscal year ended December 31, 2012.
Financial Summary
| FY2012 Financial Results | |||
| FY 2012 | FY 2011 | CHANGE | |
| Revenues | $462.3 million | $471.9 million | -2% |
| Gross Profit | $51.8 million | $43.9 million | +18% |
| Net Income | $10.9 million | $(5.4) million | +301.9% |
| EPS | $0.79 | $(0.39) | +302.6% |
* Earnings per share are based on approximately 13.8 million shares in 2011 and 2012.
"We are pleased to see our business rebound in 2012," began Yuan Chun Tang, CEO of Asia Pacific Wire & Cable Corporation Limited. "We expect these positive trends in profits and margins to continue throughout 2013, particularly in our power, telecommunications and distributed products. As we commence production of electronic wire at our Ningbo factory, we anticipate this new product line will contribute to our sales and profitability growth the second half of the year." Mr. Yuan concluded.
Full Year 2012 Results
Revenues for the year ended December 31, 2012 were $462.3 million, a 2% decrease from the prior period, primarily attributable to lower sales of APWC's low margin enameled wire and in the supply, delivery and installation (SDI) project segment. Adding to the Company's growth were increases in power cable sales of 2.8%, and its distributed product line sales growth of 115% year over year.
Gross profit for fiscal year 2012 increased by 18% to $51.8 million from $43.9 million in the year-ago period, representing gross margins of 11.2% and 9.3%, respectively. Gross margins increased 20.4% year over year as a result of APWC sales of higher margin products including power and telecommunications cables and distributed products where gross margins were approximately 17%, 26% and 6%, respectively.
Selling, general and administrative expenses for the year increased 6.5% to $32.8 million from $30.8 million. Operating income increased significantly year over year as a result of increased gross margins and the absence of goodwill impairment charges and clean-up costs and other losses stemming from a flood at its Thai subsidiary in 2011. In 2011, the Company incurred $12.7 million of such charges, versus a gain of $3.9 million in 2012.
Net income attributable to APWC shareholders was $10.9 million for the year compared to a loss of $5.4 million in the corresponding period in 2011. Net income per basic and diluted share was $0.79 for the period, compared to $(0.39) in 2011. The basic and diluted weighted average shares outstanding were approximately 13.8 million for both periods.
Financial Condition
As of December 31, 2012, APWC had $72.8 million in cash and cash equivalents, $6.2 million in unrestricted short-term bank deposits, and $11.2 million in restricted short-term bank deposits, totaling $90.2 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 $330.2 million at December 31, 2012 compared to $288.7 million at December 31, 2011. Working capital was $183.7 million at December 31, 2012. APWC ended 2012 with total short term bank loans and overdrafts of $57.8 million, up from $52.8 million at December 31, 2011. Shareholders' equity attributable to APWC was $161.7 million at December 31, 2012, compared to $146.5 million at December 31, 2011.
APWC generated approximately $11.6 million of cash from operating activities during 2012 compared to $22.6 million in 2011, primarily due to an increase in accounts receivable, partially offset by an improvement in inventory turns. The Company invested $10.1 million in capital expenditures in 2012 compared to $8.9 million in 2011 to improve equipment at its Thai subsidiary and purchase new equipment for the Company's newly conditioned, Ningbo, China facility.
Non-Deal Road Show
The Company is participating in a non-deal road show May 7-10 in New York City. Frank Tseng and Ivan Hsia from the Company will be accompanied by John Mattio, IR agency for APWC. Investors interested in meeting with the Company should contact John Mattio, at MZ Group N.A. at the contact information listed below.
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 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 -
| ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (In thousands of US Dollars, except share data) | ||
| As of December 31 | ||
| 2011 | 2012 | |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 76,672 | $ 72,816 |
| Unrestricted short-term bank deposits | 2,529 | 6,210 |
| Restricted short-term bank deposits | 12,024 | 11,217 |
| Accounts receivable, net of allowance for doubtful accounts of $4,614 and $2,580 at December 31, 2011 and 2012, respectively | 98,329 | 125,128 |
| Amounts due from related parties | 5,227 | 4,066 |
| Inventories | ||
| Distributed products | 2,243 | 12,780 |
| Finished products | 35,786 | 40,589 |
| Consignment inventory | − | − |
| Work-in-progress | 16,434 | 19,743 |
| Raw materials and supplies | 24,552 | 25,409 |
| 79,015 | 98,521 | |
| Investments | − | 2,378 |
| Deferred tax | 5,185 | 3,134 |
| Prepaid expenses and other current assets | 9,716 | 6,738 |
| Total current assets | 288,697 | 330,208 |
| Property, plant and equipment: | ||
| Land | 5,964 | 6,194 |
| Land use rights | 2,900 | 2,914 |
| Buildings | 49,749 | 52,372 |
| Machinery and equipment | 118,984 | 122,584 |
| Motor vehicles | 4,203 | 4,336 |
| Office equipment | 6,675 | 6,830 |
| Construction in progress | 2,547 | 4,998 |
| 191,022 | 200,228 | |
| Accumulated depreciation and amortization | (148,108) | (149,832) |
| 42,914 | 50,396 | |
| Investments | 618 | 1,002 |
| Investments in equity investees | 4,435 | 4,414 |
| Goodwill | − | − |
| Other assets | 108 | 889 |
| Deferred tax assets | 517 | 2,475 |
| 5,678 | 8,780 | |
| Total assets | $ 337,289 | $ 389,384 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Bank loans and overdrafts | $ 52,813 | $ 57,845 |
| Accounts payable | 22,148 | 40,616 |
| Accrued expenses | 10,737 | 13,499 |
| Amounts due to related parties | 14,693 | 11,428 |
| Short-term loans from the immediate holding company | 1,732 | 1,732 |
| Income tax liabilities | 9,835 | 11,225 |
| Other current liabilities | 5,783 | 10,149 |
| Total current liabilities | 117,741 | 146,494 |
| Other non-current liabilities | 3,678 | 6,060 |
| Deferred tax liabilities | 1,181 | 2,219 |
| Total non-current liabilities | 4,859 | 8,279 |
| Total liabilities | 122,600 | 154,773 |
| APWC shareholders' equity: | ||
| Common shares, $0.01 par value: | ||
| Authorized shares of 50,000,000 shares at December 31, 2011 and 2012 | ||
| Issued and outstanding shares – 13,830,769 shares | 138 | 138 |
| Additional paid-in capital | 111,541 | 110,608 |
| Retained earnings | 34,545 | 45,553 |
| Accumulated other comprehensive income | 286 | 5,424 |
| 146,510 | 161,723 | |
| Less: Treasury stock at cost (1,900 shares at $3.2899) | − | (6) |
| Total APWC shareholders' equity | 146,510 | 161,717 |
| Non-controlling interests | 68,179 | 72,894 |
| Total shareholders' equity | 214,689 | 234,611 |
| Total liabilities and shareholders' equity | $ 337,289 | $ 389,384 |
| ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| (In thousands of US Dollars, except share data) | ||
| 2011 | 2012 | |
| Net sales | ||
| Manufactured products, | $ 429,474 | $ 401,023 |
| Distributed products | 25,500 | 54,797 |
| Supply, delivery and installation of wires and cables | 16,972 | 6,445 |
| 471,946 | 462,265 | |
| Costs of sales | ||
| Manufactured products (including purchases from related parties amounting to $45,925, $46,953 and $23,857 for the years ended December 31, 2010, 2011 and 2012, respectively | (386,598) | (356,358) |
| Distributed products (including purchases from related parties amounting to $4,056, $7,484 and $9,083 for the years ended December 31, 2010, 2011and 2012, respectively | (22,545) | (51,436) |
| Supply, delivery and installation of wires and cables | (16,915) | (7,460) |
| Inventory impairment | (1,993) | 4,804 |
| (428,051) | (410,450) | |
| Gross profit | 43,895 | 51,815 |
| Selling, general and administrative expenses | (30,760) | (32,794) |
| Recovery for doubtful accounts | 1,487 | 720 |
| Impairment of long-lived assets | − | (22) |
| Impairment of investments | − | − |
| Impairment of goodwill | (8,791) | − |
| (Charges) Recovery related to flooding | (3,947) | 3,874 |
| Income from operations | 1,884 | 23,593 |
| Exchange gain (loss), net | (1,346) | 2,398 |
| Interest income | 1,409 | 1,555 |
| Interest expenses | (2,217) | (2,195) |
| Share of net loss of equity investees | (58) | (21) |
| Gain on liquidation of subsidiaries | − | 279 |
| Loss on disposal of available-for-sale securities | (68) | − |
| Other income, net | 1,032 | 1,684 |
| Income from continuing operations before income taxes | 636 | 27,293 |
| Income taxes | (4,566) | (8,383) |
| Net income (loss) from continuing operations | (3,930) | 18,910 |
| Discontinued operations | ||
| Income from operations of discontinued SPFO (including gain on disposal of $1,962 for the year ended December 31, 2011, purchases from related parties amounting to $4, $317 and $nil, and sales to related parties amounting to $54, $693 and $nil for the years ended December 31, 2010, 2011 and 2012, respectively) |
1,075 |
− |
| Income taxes | (229) | − |
| (Loss) Income from discontinued operations | 846 | − |
| Net income (loss) | (3,084) | − |
|
Net income attributable to non-controlling interests |
2,355 | 7,961 |
| Income (loss) attributable to APWC | $ (5,439) | $ 10,949 |
| Basic and diluted earnings (loss) per share from continuing operations | $ (0.49) | $ 0.79 |
| Basic and diluted earnings (loss) per share from discontinued operations | 0.10 | − |
| Basic and diluted earnings (loss) per share | $ (0.39) | $ 0.79 |
| Basic and diluted weighted average common shares outstanding | 13,830,769 | 13,830,751 |
| ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| 2011 | 2012 | |
| Operating activities: | ||
| Net income (loss) | $ (3,084) | $ 18,910 |
| Adjustments to reconcile net income (loss) to net cash provided (used in) by operating activities: | ||
| Gain on disposal of property, plant and equipment | (158) | (114) |
| Loss on disposal of available-for-sale securities | 68 | – |
| Depreciation | 6,462 | 4,975 |
| Deferred income taxes | (2,273) | 1,264 |
| Recovery for doubtful accounts | (1,555) | (720) |
| Inventory impairment | 1,993 | (4,804) |
| Share of net loss of equity investees | 58 | 21 |
| Impairment of long-lived assets | – | 22 |
| Impairment of investments | – | – |
| Impairment of goodwill | 8,791 | – |
| Gain on disposal of a subsidiary | (1,962) | – |
| Pension liability adjustments | 1 | 144 |
| Unrealized foreign exchange difference, net | 974 | 26 |
| Noncash other income | – | (519) |
| Changes in operating assets and liabilities | ||
| Accounts receivable | 34,052 | (23,103) |
| Inventories | (5,539) | (12,022) |
| Other current assets | (7,508) | 3,082 |
| Amounts due to/from related parties | 580 | (2,102) |
| Other long term assets | (343) | 477 |
| Accounts payable, accrued expenses and other liabilities | (7,933) | 26,111 |
| Net cash provided by (used in) operating activities | 22,624 | 11,648 |
| Investing activities: | ||
| Placement of unrestricted short-term bank deposits to financial institutions | (2,625) | (3,542) |
| Placement of restricted short-term bank deposits to financial institutions | (13,906) | (2,608) |
| Maturity of restricted short-term bank deposits from financial institutions | 11,326 | 3,897 |
| Purchase of financial instruments | – | (2,378) |
| Purchases of property, plant and equipment | (8,888) | (10,937) |
| Proceed from disposal of an available-for-sale securities | 24 | – |
| Proceeds from disposal of property, plant and equipment | 165 | 173 |
| Decrease in investment in equity investees | − | − |
| Net cash provided by (used in) investing activities | (13,904) | (15,755) |
| Financing activities: | ||
| Dividend paid during the year | (3,195) | (3,067) |
| Repayments of bank loans | (22,503) | (6,000) |
| Proceeds from bank loans | 31,319 | 9,888 |
| Share capital repurchase | − | (6) |
| Acquisition of non-controlling interest | − | (877) |
| Net cash (used in) provided by financing activities | 5,621 | (62) |
| Effect of exchange rate changes on cash and cash equivalents | (886) | 313 |
| Net increase in cash and cash equivalents | 13,455 | (3,856) |
| Cash and cash equivalents at beginning of year | 63,217 | 76,672 |
| Cash and cash equivalents at end of year | $ 76,672 | $ 72,816 |