TAIPEI, Taiwan, Oct. 16, 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 six months ended June 30, 2013.
Financial Summary
| 1H 2013 Financial Results | |||
| 1H 2013 | 1H 2012 | CHANGE | |
| Revenues | $212.6 million | $215.3 million | -1.2% |
| Gross Profit | $19.7 million | $22.8 million | -13.3% |
| Net Income | $1.3 million | $5.3 million | -75.9% |
| EPS | $0.09 | $0.38 | -76.3% |
* Earnings per share are based on 13.8 million and 13.8 million shares in 1H 2012 and 1H 2013, respectively.
First Half 2013 Results
Revenues for the six months ended June 30, 2013 were $212.6 million, an approximate 1.2% decrease from the prior period. The slight decrease in sales was attributed to a decrease in the Company's manufactured products which include; enameled wire, telecommunications cable and power cables. Power cable sales in Thailand were the primary cause of the decrease in sales year over year mainly due to slowdown in customers' orders. Sales of telecommunications cable and enameled wire remained relatively flat year-over-year. Offsetting these declines were double digit increases in the sales of distributed products which increased by71% to $27.8 million, and the revenue recognition of contracts for Supply, Delivery and Installation ("SDI") of cable which increased by 337% to $7.1 million for the period.
Combined gross profit for the first half of 2013 fell by 13.3% to $19.7 million from $22.8 million in the year-ago period. Gross margins for the six month ended June 30th in 2013 and 2012, were 9.3% and 10.6%, respectively. Gross margins were down 129 basis points year-over-year as a result of the increase of inventory provision due to decreasing copper prices. Excluding the inventory provision, gross margins were 9.6% and 9.3% for the first half of 2013 and 2012, respectively.
Selling, general and administrative expenses for the first six months decreased 6% to $14.5 million due to expense reductions in response to lower sales. Operating income was $4.7 million compared to $11 million in the first half of 2012.
Net income attributable to APWC shareholders was $1.3 million for the first half of 2013 compared to $5.3 million in the corresponding period in 2012. Earnings per basic and diluted share were $0.09 for the period, compared to $0.38 in the first six months of 2012. The basic and diluted weighted average shares outstanding were 13.8 million for the first half of 2012 and 2013.
Financial Condition
As of June 30, 2013, APWC had $59.3 million in cash and cash equivalents, $2.9 million in unrestricted short-term bank deposits, and $10.8 million in restricted short-term bank deposits, totaling $73.0 million, compared to cash and cash equivalents and unrestricted and restricted bank deposits totaling $90.2 million as of December 31, 2012.
Total current assets were $306.2 million at June 30, 2013 compared to $330.2 million at December 31, 2012. Working capital was $177.3 million as June 30, 2013, compared to $183.7 million at December 31, 2012. APWC ended June 30, 2013 with total short term bank loans and overdrafts of $54.1 million, down from $57.8 million at December 31, 2012. The Company had no long term debt outstanding at June 30, 2013. Shareholders' equity attributable to APWC was $157.6 million at June 30, 2013 compared to $161.7 million at December 31, 2012.
APWC used approximately $6.6 million of cash for operating activities during the first six months of 2013, a reduction of $9.8 million compared to $16.4 million of cash outflows from operations in the corresponding period in 2012. The Company had capital expenditures of $5.7 million in the first half of 2013 compared to $4.5 million in the first half of 2012.
Business Updates
Asia Pacific Wire and Cable's newly opened Ningbo factory has finished test runs and started trial production of electronic wire. The target markets for APWC's electronic wire are in consumer electronics and automotive industries; both are fast-growing manufacturing sectors in China.
APWC's subsidiary in Shenzhen, China, is constructing a new factory to partially switch its target market from originally predominated export sales to domestic sales. The new factory is planned for completion before the end of 2013 and to start commercial production in February 2014.
The company will inject $2.5 million into its subsidiary in Shanghai, China before the end of this month. The increased capital is mainly deployed for replacing out-of-date machinery, thus increase efficiency and lowering production cost to increase its competitiveness. The funds were also used to reduce bank loans.
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 six-month ended June 30, |
||
| 2012 | 2013 | |
| Net sales | ||
| Manufactured products (sales to related parties amounted to $1,002 and $1,187 for the six-month ended June 30, 2012 and 2013, respectively) | $197,436 | $177,771 |
| Distributed products | 16,230 | 27,750 |
| Supply, delivery and installation of wires and cables | 1,628 | 7,116 |
| 215,294 | 212,637 | |
| Cost of sales (purchases from related parties amounted to$22,952 and $20,952 for the six-month ended June 30, 2012 and 2013, respectively) | (192,544) | (192,914) |
| Gross profit | 22,750 | 19,723 |
| Selling, general and administrative expenses | (15,525) | (14,535) |
| Allowance for doubtful accounts | (39) | (65) |
| Charge related to flooding | (749) | 0 |
| Impairment of investment | 0 | (464) |
| Recovery of losses from flooding | 4,611 | 40 |
| Income from operations | 11,048 | 4,699 |
| Exchange gain (loss), net | 665 | (378) |
| Interest income | 659 | 768 |
| Interest expense | (988) | (951) |
| Gain on disposal of an investment | 0 | 554 |
| Share of net gain (loss) of equity investees | 27 | (47) |
| Other income, net | 1,011 | 481 |
| Income before income taxes | 12,422 | 5,126 |
| Income taxes expense | (3,780) | (1,757) |
| Net income | 8,642 | 3,369 |
| Less: Net income attributable to non-controlling interests | (3,348) | (2,092) |
| Net income attributable to APWC | 5,294 | 1,277 |
| Basic and diluted earnings per share | 0.38 | 0.09 |
| Basic and diluted weighted average common shares outstanding | 13,830,769 | 13,821,612 |
| 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 six-month ended June 30, |
||
| 2012 | 2013 | |
| $8,642 | $3,369 | |
| Net income | ||
| Other comprehensive income (loss) | ||
| Currency translation adjustment, net of tax of nil | 389 | (7,075) |
| Pension liability adjustments | 10 | 158 |
| Reclassification of unrealized loss of available-for-sale securities upon disposal or impairment | 0 | 464 |
| Other comprehensive income (loss) for the period | 399 | (6,453) |
| Total comprehensive income (loss) for the period | 9,041 | (3,084) |
| Less: total comprehensive income attributable to non-controlling interest | (2,546) | (1,029) |
| Total comprehensive income (loss) attributable to APWC shareholders | 6,495 | (4,113) |
| 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 June 30, 2013, (Unaudited) |
|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $72,816 | $59,312 |
| Unrestricted short-term bank deposits | 6,210 | 2,898 |
| Restricted short-term bank deposits | 11,217 | 10,799 |
| Accounts receivable, net of allowance for | 125,128 | 105,620 |
| doubtful accounts of $2,580 and $2,499 as at | ||
| December 31, 2012 and June 30, 2013, respectively | ||
| Amounts due from related parties | 4,066 | 4,692 |
| Inventories | ||
| Distributed products | 12,780 | 11,122 |
| Finished products | 40,589 | 46,560 |
| Work-in-progress | 19,743 | 16,515 |
| Raw materials and supplies | 25,409 | 39,325 |
| 98,521 | 113,522 | |
| Deferred tax assets | 3,134 | 2,978 |
| Prepaid expenses | 6,738 | 6,401 |
| Short - term investment in held-to-maturity securities | 2,378 | 0 |
| Total current assets | 330,208 | 306,222 |
| Property, plant and equipment: | ||
| Land | 6,194 | 5,973 |
| Land use rights | 2,914 | 2,952 |
| Buildings | 52,372 | 51,216 |
| Machinery and equipment | 122,584 | 116,710 |
| Motor vehicles | 4,336 | 4,400 |
| Office equipment | 6,830 | 6,668 |
| Construction in progress | 4,998 | 7,081 |
| 200,228 | 195,000 | |
| Accumulated depreciation and impairment losses | (149,832) | (142,948) |
| 50,396 | 52,052 | |
| Investments | 1,002 | 985 |
| Investments in equity investees | 4,414 | 3,085 |
| Other assets | 889 | 182 |
| Deferred tax assets | 2,475 | 2,514 |
| 8,780 | 6,766 | |
| Total assets | $389,384 | $365,040 |
| LIABILITIES AND EQUITY | ||
| Current liabilities: | ||
| Bank loans and overdrafts | 57,845 | 54,145 |
| Accounts payable | 40,616 | 33,919 |
| Accrued expenses | 13,499 | 11,356 |
| Amounts due to related parties | 11,428 | 13,304 |
| Short-term loans from the immediate holding company | 1,732 | 1,732 |
| Income tax liabilities | 11,225 | 9,694 |
| Other current liabilities | 10,149 | 4,812 |
| Total current liabilities | 146,494 | 128,962 |
| Non-current liabilities: | ||
| Other non-current liabilities | 6,060 | 6,183 |
| Deferred tax liabilities | 2,219 | 2,278 |
| Total non-current liabilities | 8,279 | 8,461 |
| Total liabilities | 154,773 | 137,423 |
| Commitments and contingencies | ||
| Shareholders' equity: | ||
| Common shares, $0.01 per share: | ||
| Authorized shares of 50,000,000 | 138 | 138 |
| Issued shares: 13,830,769 | ||
| Outstanding shares: | ||
| Jun 30, 2013 – 13,819,669 shares | ||
| Dec 31, 2012 – 13,828,869 shares | ||
| Additional paid-in capital | 110,608 | 110,608 |
| Retained earnings | 45,553 | 46,830 |
| Treasury shares | (6) | (38) |
| Accumulated other comprehensive income | 5,424 | 33 |
| Total APWC shareholders' equity | 161,717 | 157,571 |
| Non-controlling interests | 72,894 | 70,046 |
| Total equity | 234,611 | 227,617 |
| Total liabilities and equity | $389,384 | $365,040 |
| ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES | |||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
| (Unaudited) | |||
| (In thousands of U.S. Dollars) | |||
|
For the six-month ended June 30, |
|||
| 2012 | 2013 | ||
| Net cash (used in) operating activities | ($16,409) | ($6,600) | |
| Net cash provided by (used in) investing activities | (10,790) | 1,757 | |
| Net cash provided by (used in) financing activities | 4,373 | (8,253) | |
| Effect of exchange rate changes on cash and cash equivalents | 381 | (408) | |
| Net (decrease) in cash and cash | |||
| equivalents | (22,445) | (13,504) | |
| Cash and cash equivalents at beginning of period | 76,672 | 72,816 | |
| Cash and cash equivalents at end of period | $54,227 | $59,312 | |