Asia Pacific Wire & Cable Corporation Ltd. Reports Second Quarter 2021 Financial Results

TAIPEI, Taiwan, Nov. 16, 2021 (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, 2021. Unless otherwise indicated, all data are reported in U.S. Dollars at the exchange rate prevailing on the date of the event or result reported.

First Six Months 2021 Results 

Revenues for the six months ended June 30, 2021, were $225.3 million, an increase of 76.5% from $127.6 million for the six months ended June 30, 2020.  The increase was primarily attributable to revenue increases in the Company’s Thailand, North Asia, and Rest of World (“ROW”) regions. Net revenue in the Company’s Thailand region increased by 58.0%, primarily attributable to increases in copper prices and due to lower sales in the first half of 2020 because of the pandemic. Revenues in the Company's North Asia region increased by 83.8%, primarily attributable to increases in copper prices and due to lower sales in the first half of 2020 because of the pandemic. Revenues in the Company's Rest of World ("ROW") region increased by 102.8%, primarily due to deferral of orders in Singapore (which had a lockdown from March to June 2020) and stricter border control in Australia. The Company's North Asia region includes China and Hong Kong; the Thailand region consists of operations and sales within 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 (loss) for the six months ended June 30, 2021 increased to $5.0 million from $0.3 million for the six months ended June 30, 2020.  Operating profit margin increased from 0.2% in 2020 to 2.2% in 2021.  In the Thailand region, operating profit (loss) margin increased slightly year over year from 3.7% to 3.9%. Revenue increased by 58%, but operating profit remained low because the Thailand region provided a $2.2 million allowance for diminution in the value of inventories in 2021. In the North Asia region, operating profit (loss) margin decreased slightly from 3.0% in 2020 to 2.7% for the same period in 2021, primarily attributable to copper price fluctuations. The ROW region’s operating profit (loss) margin increased from (4.1)% in 2020 to 1.3% in 2021, primarily attributable to decreased competition due to COVID-19.

Selling, general and administrative expenses for the six months ended June 30, 2021 were $13.0 million, compared to $11.8 million reported for the six months ended June 30, 2020. Net income (loss) attributable to APWC shareholders was $(0.1) million for the first six months of 2021, compared to $(1.2) million for the same period in 2020. The increase in net income was primarily due to an increase in gross profit. The weighted average number of shares issued and outstanding was 13.82 million for the six months ended June 30, 2021 and 2020.

Financial Condition

APWC reported $39.0 million in cash and cash equivalents as of June 30, 2021, compared to cash and cash equivalents of $52.2 million as of December 31, 2020.

Current assets totaled $306.6 million as of June 30, 2021, compared to $263.7 million as of December 31, 2020.  Working capital was $168.9 million as of June 30, 2021, as compared to $174.3 million as of June 30, 2020.  Short term bank loans were $56.2 million at June 30, 2021, an increase from $10.1 million at the end of 2020. The Company had $3.5 million in long-term debt outstanding at June 30, 2021, compared to $3.7 million in long-term debt as of December 31, 2020. Shareholder's equity attributable to APWC was $152.6 million as of June 30, 2021, compared to $157.9 million as of December 31, 2020.

APWC reported $46.3 million in cash used in operations during the six months ended June 30, 2021, compared to cash generated from operations of $10.8 million in the corresponding period in 2020. The increase in cash used in operations in 2021 was primarily attributable to recovery of economy, which led to an increase in purchases of materials and copper prices.   The Company reported $1.9 million in cash outflows from investing activities during the six months ended June 30, 2021, compared to $15.7 million in cash outflows in the same period of 2020. The decrease in cash used for investing activities was attributable primarily to decrease in purchase of investment properties and short-term bank deposits in 2021. APWC reported $38.7 million in cash inflows from financing activities during the first six months of 2021, compared to $5.6 million in cash inflows from financing activities in the same period of 2020. The increase in cash inflows in 2021 was primarily attributable to an increase in borrowings.

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.

About Asia Pacific Wire & Cable Corporation Limited

Asia Pacific Wire & Cable Corporation is a holding company incorporated in Bermuda with principal executive offices in Taiwan that operates our business through operating subsidiaries. Through our subsidiaries, our Company is principally engaged in the manufacture and distribution (in descending order of sales) of enameled wire, power cable, and telecommunications products in Thailand, Singapore, Australia, the People’s Republic of China (the “PRC”), Hong Kong and certain other markets in the Asia Pacific region. Our Company also engages in the distribution of certain wire and cable products manufactured by our controlling shareholder, Pacific Electric Wire & Cable Company (a Taiwanese company), and third parties. Our Company also provides project engineering services in the supply, delivery and installation of power cable. Our Company’s major customers include government organizations, electric contracting firms, electrical dealers, and wire and cable factories. In 2020, the Thailand market accounted for approximately 46% of sales, the Rest of World (“ROW”) market (which refers to Australia, Singapore and certain other markets in the Asia Pacific region) accounted for approximately 31% of sales, and the North Asia market (which refers to PRC and Hong Kong) accounted for approximately 23% of sales.

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", “estimates”, “intends”, “plans” 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 believed, anticipated, expected, estimated, intended or planned. 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.