Asia Pacific Wire & Cable Company Reports Full Year 2013 Financial Results

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| Source: Asia Pacific Wire & Cable
  • Gross profit was $51.8 million, an increase of 2.6% from $50.5 million in FY2012
  • Cash flows from operations was $20.6 million, up 93.1% from $10.7 million in FY2012
  • $62.5 million in cash and cash equivalents at December 31, 2013
  • Reduced total debt outstanding to $43.5 million at December 31, 2013 from $59.6 million at December 31, 2012

TAIPEI, Taiwan, May 5, 2014 (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 twelve months ended December 31, 2013.

Financial Summary

 
FY 2013 Financial Results
  FY 2013 FY 2012 CHANGE
Revenues  $460.7 million $462.3 million -0.3%
Gross Profit $51.8 million $50.5 million +2.6%
Net Income  $5.8 million $9.7 million -39.7%
EPS  $0.42 $0.70 -40.0%
* Earnings per share are based on 13.8 million shares in FY 2012 and FY 2013

Full Year 2013 Results

Revenues for the twelve months ended December 31, 2013 were $460.7 million, down slightly from $462.3 million in the prior period, primarily attributable to lower sales in its North Asia and Thailand markets, partially offset by higher sales in Singapore.

Gross profit for the 2013 year increased 2.6% to $51.8 million from $50.5 million in the year-ago period, representing gross margins of 11.2% and 10.9%, respectively. Gross margins were up year over year as a result of higher profit margins from sales in the Thailand region.

Selling, general and administrative expenses of $34.6 million for the full year of 2013 were essentially flat from the same period a year ago. Operating income was $17.2 million compared to $20.8 million in the full year of 2012. Excluding the non-recurring $3.8 million net insurance recovery due to the flooding in Thailand recorded in the full year of 2012, operating profit was up approximately 1.7% compared to the prior year.

Net income attributable to APWC shareholders was $5.8 million for the full year of 2013 compared to $9.7 million in the corresponding period in 2012. Net income per basic and diluted share was $0.42 for the period, compared to $0.70 in the first twelve months of 2012. The basic and diluted weighted average shares outstanding were 13.8 million for the full year of 2012 and 2013. 

Financial Condition

As of December 31, 2013, APWC had $62.5 million in cash and cash equivalents, compared to cash and cash equivalents totaling $72.8 million as of December 31, 2012.

Total current assets were $302.2 million at December 31, 2013 compared to $327.9 million at December 31, 2012. Working capital was $174.5 million as of December 31, 2013. As of December 31, 2013, short term bank loans and overdrafts were $43.5 million, down from $59.6 million at December 31, 2012. The Company had no long term debt outstanding at December 31, 2013. Shareholders' equity attributable to APWC was $157.2 million at December 31, 2013 compared to $163.1 million at December 31, 2012.

APWC generated approximately $20.6 million of cash from operating activities during the twelve months ended December 31, 2013, an improvement of $9.9 million compared to $10.7 million of cash inflows from operations in the corresponding period in 2012. The Company reduced capital expenditures to $9.5 million in the full year of 2013 compared to $10.9 million in the full year of 2012.

Business Updates

With effect as of January 1, 2013, the Company converted its basis of accounting principles to International Financial Reporting Standards ("IFRS") from U.S. GAAP. This change was made to align the accounting principles of APWC with those of its principal operating subsidiaries, which have used IFRS for some years, and due to the increasing acceptance and usage of IFRS among foreign private issuers. Accordingly, the financial data reported in this release and in our recently filed 2013 annual report are reported in accordance with IFRS and our 2012 results are restated in accordance with IFRS, as called for under applicable SEC guidance.

The Company also reorganized its reporting segments along regional lines, such that our three reporting segments consist now of the North Asia region, the Thailand region and the Rest of the World ("ROW") region (primarily consisting of Singapore and Australia at this time). This reorganization of reporting segments is in accordance with our current lines of internal reporting and our current decision-making structure regarding asset allocation and business development. We believe this reorganization will provide to management and to our investors a clearer picture of the results of operations of the Company going forward.

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 INCOME STATEMENTS
For the years ended December 31, 2013 and 2012
 
  2013 2012
  US$'000 US$'000
Sales of goods / services 460,676 462,265
Cost of sales (408,860) (411,786)
     
Gross profit 51,816 50,479
Other operating income 181 5,825
Selling, general and administrative expenses (34,559) (34,593)
Other operating expenses (196) (888)
     
Operating profit 17,242 20,823
Finance costs (1,734) (2,195)
Finance income 1,306 1,322
Share of loss of associates (211) (21)
Gain on disposal of investment – held for sale 232 --
Gain on liquidation of subsidiaries -- 279
Exchange gain (loss) (1,245) 2,411
Other income 1,454 1,933
Other expense (260) --
     
Profit before tax 16,784 24,552
Income tax expense (5,518) (7,578)
     
Profit for the year 11,266 16,974
Attributable to:    
Equity holders of the parent 5,847 9,694
Non-controlling interests 5,419 7,280
     
  11,266 16,974
Earnings per share    
- Basic, and diluted profit for the year attributable to equity holders of the parent $ 0.42 $ 0.70
 
 
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
       
    As of
  As of December 31,  January 1,
  2013 2012 2012
  US$'000  US$'000  US$'000
Assets      
Current assets      
Cash and cash equivalents 62,509 72,816 76,672
Other current financial assets – available for sale -- 2,378 --
Other current financial assets – derivatives -- -- 64
Trade receivables 122,893 125,128 98,431
Other receivables 11,139 19,495 18,462
Due from related parties 3,842 4,066 5,227
Inventories 98,194 98,084 78,242
Prepayments 1,559 1,556 3,473
Assets classified as held for sale -- 1,281 --
Other current assets 2,113 3,136 2,380
       
  302,249 327,940 282,951
       
Non-current assets      
Other non-current financial assets – available for sale 3,189 4,577 3,981
Other non-current financial assets – held to maturity 335 360 --
Property, plant and equipment 48,709 47,464 41,184
Prepaid land lease payments 1,939 1,957 2,001
Investment properties 746 751 743
Intangible assets 104 163 136
Investments in associates 2,937 3,133 4,435
Other non-current assets 449 914 159
Deferred tax assets 3,978 4,492 5,820
       
  62,386 63,811 58,459
       
Total assets 364,635 391,751 341,410
       
       
Current liabilities      
Interest-bearing loans and borrowings 41,789 57,845 52,813
Trade and other payables 41,369 40,630 21,138
Due to related parties 11,126 11,428 14,693
Due to immediate holding company 1,732 1,732 1,732
Accruals 13,336 13,245 11,691
Income tax payable 9,874 11,180 9,835
Employee benefit liability 419 453 1,005
Financial lease liabilities 37 167 842
Onerous contracts provisions 125 291 72
Dividend payable 348 336 265
Other current liabilities 7,617 8,828 4,281
       
  127,772 146,135 118,367
       
Non-current liabilities
Employee benefit liability 5,455 5,387 2,310
Financial lease liabilities 28 76 236
Provisions for employee benefit 577 597 507
Deferred tax liabilities 2,676 2,396 2,260
  8,736 8,456 5,313
Total liabilities 136,508 154,591 123,680
       
Equity      
Issued capital 138 138 138
Additional paid-in capital 110,608 110,608 111,541
Treasury shares (38) (6) --
Retained earnings 51,766 45,919 36,166
Other components of equity (5,226) 6,443 1,199
       
Equity attributable to equity holders of the parent 157,248 163,102 149,044
Non-controlling interests 70,879 74,058 68,686
       
Total equity 228,127 237,160 217,730
       
Total liabilities and equity 364,635 391,751 341,410
Company Contact:
Asia Pacific Wire & Cable Corporation Limited
Mr. Ivan Hsia, CFO
Phone: +886-2-2712-2558 ext. 27
E-mail: 

Investor Relations Contact:
MZ North America
John Mattio, SVP
Tel: +1-212-301-7130
Email: 
www.mzgroup.us