- Q1 2013 net revenues increased 2.7% year-over-year to $101.0 million
- Net income attributable to APWC shareholders was $0.9 million
- Earnings per share was $0.06 in Q1 2013 and Q1 2012
- $67.8 million in cash and cash equivalents at March 31, 2013
TAIPEI, Taiwan, July 2, 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 three months ended March 31, 2013.
| Financial Summary | |||
| First Quarter 2013 Financial Results | |||
| Q1 2013 | Q1 2012 | CHANGE | |
| Revenues | $101.0 million | $98.3 million | +2.7% |
| Gross Profit | $7.8 million | $9.0 million | -13.9% |
| Net Income | $0.9 million | $0.8 million | +2.9% |
| EPS | $0.06 | $0.06 | - |
| * Earnings per share are based on 13.8 million shares in Q1 2012 and Q1 2013. | |||
First Quarter 2013 Results
Revenues for the year ended March 31, 2013 were $101.0 million, a 2.7% increase from the prior period. Reduced sales of manufactured products including enameled and high voltage wire were partially offset by higher sales of distributed products and SDI projects for the quarter. Revenues for the three months ended March 31, 2013 were as follows: enameled wire sales of $40.0 million, power cable sales of $39.3 million, telecommunication cable sales of $4.8 million, distributed products sales of $16.3 million and SDI (Supply, Delivery and Installation) of wires and cables sales of $0.4 million.
Gross profit for the quarter was $7.8 million versus $9.0 million in the year-ago period, representing gross margins of 7.7% and 9.2%, respectively. The reduction in gross margin percentage is primarily due to lower factory usage in Singapore and China and from the Company's SDI segment.
Selling, general and administrative expenses decreased 5.4% to $7.5 million from $7.9 million due to the retirement of some senior employees in the first quarter last year. Pretax income was $2.9 million in the three months ended March 31, 2012, driven primarily by a $2.2 million foreign exchange gain.
Net income attributable to APWC shareholders was $0.9 million for the year compared to $0.8 million in the corresponding period in 2012. Net income per basic and diluted share was $0.06 for both periods. The basic and diluted weighted average shares outstanding were 13.8 million for both periods.
Financial Condition
As of March 31, 2013, APWC had $67.8 million in cash and cash equivalents, $3.1 million in unrestricted short-term bank deposits, and $11.6 million in restricted short-term bank deposits, totaling $82.5 million, compared to cash and cash equivalents and unrestricted and restricted bank deposits totaling $90.2 million as of March 31, 2012.
Total current assets were $313.9 million at March 31, 2013 compared to $330.2 million at December 31, 2012. Working capital was $190.0 million at March 31, 2013. APWC ended March 31, 2013 with total short term bank loans and overdrafts of $37.2 million, down from $57.8 million at December 31, 2012. Shareholders' equity attributable to APWC was $165.2 million at March 31, 2013, compared to $161.7 million at December 31, 2012.
APWC generated approximately $11.4 million of cash from operating activities during the first three months of 2013 compared to $5.6 million of cash outflows in the comparable period in 2012.
Business Updates
Asia Pacific Wire and Cable Company is currently completing its production lines of electronic wire for the electronics and automotive industry markets in China. Each of these sectors is high-growth markets in China. The Company expects to begin its sales efforts in the fourth quarter of the 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, 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.
| ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| (Unaudited) | ||
| (Amounts in thousands of US Dollars, except share data) | ||
|
For the three-months ended March 31, (Unaudited) |
||
| 2012 | 2013 | |
| Net sales | ||
| Manufactured products (sales to related parties amounted to $1,006 and $537 for the three-months ended March 31, 2012 and 2013, respectively) | $91,348 | $84,178 |
| Distributed products | 6,882 | 16,380 |
| Supply, delivery and installation of wires and cables | 94 | 412 |
| 98,324 | 100,970 | |
| Cost of sales (purchases from related parties amounted to $41,480 and $23,742 for the three-months ended March 31, 2012 and 2013, respectively) | (89,293) | (93,194) |
| Gross profit | 9,031 | 7,776 |
| Selling, general and administrative expenses | (7,894) | (7,464) |
| Recovery(allowance) for doubtful accounts | (51) | (68) |
| Charge related to flooding | (672) | 0 |
| Impairment of investment | 0 | (464) |
| Income from operations | 414 | (220) |
| Exchange gain, net | 916 | 2,224 |
| Interest income | 551 | 332 |
| Interest expense | (449) | (484) |
| Gain on disposal of an investment | 0 | 556 |
| Share of net gain of equity investees | 15 | 0 |
| Other income, net | 883 | 526 |
| Income before income taxes | 2,330 | 2,934 |
| Income taxes expense | (1,049) | (1,204) |
| Net income | 1,281 | 1,730 |
| Less: Net income attributable to non-controlling interests | (448) | (873) |
| Net income attributable to APWC | 833 | 857 |
| Basic and diluted earnings per share | 0.06 | 0.06 |
| Basic and diluted weighted average common shares outstanding | 13,830,769 | 13,822,072 |
| Other comprehensive income | ||
| Currency translation adjustment | 6,349 | 5,226 |
| Pension liability adjustments | (10) | (33) |
| Other comprehensive income | 6,339 | 5,193 |
| Comprehensive income | 7,620 | 6,923 |
| Less: comprehensive income attributable to Non-controlling interest | 1,935 | 3,909 |
| Comprehensive income attributable to APWC shareholders | 5,685 | 3,014 |
| ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (In thousands of US Dollars, except share data) | ||
|
As of December 31, 2012 |
As of March 31, 2013, (Unaudited) |
|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $72,816 | $67,810 |
| Unrestricted short-term bank deposits | 6,210 | 3,075 |
| Restricted short-term bank deposits | 11,217 | 11,570 |
| Accounts receivable, net of allowance for doubtful accounts of $2,580 and $2,660 as at December 31, 2012 and March 31, 2013, respectively | 125,128 | 102,382 |
| Amounts due from related parties | 4,066 | 4,430 |
| Inventories | ||
| Distributed products | 12,780 | 12,662 |
| Finished products | 40,589 | 46,842 |
| Work-in-progress | 19,743 | 23,797 |
| Raw materials and supplies | 25,409 | 28,305 |
| 98,521 | 111,605 | |
| Deferred tax assets | 3,134 | 3,317 |
| Prepaid expenses | 6,738 | 8,792 |
| Short - term investment in held-to-maturity | 2,378 | 956 |
| Total current assets | 330,208 | 313,937 |
| Property, plant and equipment: | ||
| Land | 6,194 | 6,523 |
| Land use rights | 2,914 | 2,924 |
| Buildings | 52,372 | 53,814 |
| Machinery and equipment | 122,584 | 123,159 |
| Motor vehicles | 4,336 | 4,508 |
| Office equipment | 6,830 | 6,913 |
| Construction in progress | 4,998 | 7,341 |
| 200,228 | 205,182 | |
| Accumulated depreciation and amortization | (149,832) | (152,047) |
| 50,396 | 53,135 | |
| Investments | 1,002 | 1,051 |
| Investments in equity investees | 4,414 | 3,132 |
| Other assets | 889 | 766 |
| Deferred tax assets | 2,475 | 2,987 |
| 8,780 | 7,936 | |
| Total assets | $389,384 | $375,008 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Bank loans and overdrafts | 57,845 | 37,166 |
| Accounts payable | 40,616 | 36,878 |
| Accrued expenses | 13,499 | 13,295 |
| Amounts due to related parties | 11,428 | 12,926 |
| Short-term loans from the immediate holding company | 1,732 | 1,732 |
| Income tax liabilities | 11,225 | 12,353 |
| Other current liabilities | 10,149 | 9,571 |
| Current portion of long-term debt | 0 | 0 |
| Total current liabilities | 146,494 | 123,921 |
| Non-current liabilities: | ||
| Long-term debt, less current portion | 0 | 0 |
| Other non-current liabilities | 6,060 | 6,463 |
| Deferred tax liabilities | 2,219 | 2,651 |
| Total non-current liabilities | 8,279 | 9,114 |
| Total liabilities | 154,773 | 133,035 |
| Commitments and contingencies | ||
| APWC shareholders' equity: | ||
| Common stock, $0.01 par value: | ||
| Authorized shares of 50,000,000 shares at December 31, 2012 and March 31, 2013 | 138 | 138 |
| Issued and outstanding shares -- 13,828,869 shares (net of 1,900 treasury shares ) and 13,821,469 (net of 9,300 treasury shares) at December 31, 2012 and March 31, 2013,respectively | ||
| Additional paid-in capital | 110,608 | 110,608 |
| Retained earnings | 45,553 | 46,410 |
| Treasury stock | (6) | (31) |
| Accumulated other comprehensive income | 5,424 | 8,045 |
| Total APWC shareholders' equity | 161,717 | 165,170 |
| Non-controlling interests | 72,894 | 76,803 |
| Total shareholders' equity | 234,611 | 241,973 |
| Total liabilities and shareholders' equity | $389,384 | $375,008 |
| ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES | ||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (Unaudited) | ||
| (In thousands of U.S. Dollars) | ||
|
For the three-months ended March 31, (Unaudited) |
||
| 2012 | 2013 | |
| Net cash provided by(used in) operating activities | ($5,559) | $11,405 |
| Net cash used in investing activities | (437) | 3,521 |
| Net cash provided by(used in) financing activities | (14,313) | (21,211) |
| Effect of exchange rate changes on cash and cash equivalents | 1,247 | 1,279 |
| Net increase (decrease) in cash and cash | ||
| equivalents | (19,063) | (5,006) |
| Cash and cash equivalents at beginning of period | 76,672 | 72,816 |
| Cash and cash equivalents at end of period | $57,609 | $67,810 |