Asia Pacific Wire & Cable Corporation Limited Reports Third Quarter 2022 Financial Results

TAIPEI, Taiwan, Dec. 28, 2022 (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 nine months ended September 30, 2022. 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.

Revenues for the nine months ended September 30, 2022, were $310.7 million, a decrease of 6.0% from $330.7 million compared to the nine months ended September 30, 2021. The decrease was primarily attributable to revenue decreases across the Company’s Thailand and North Asia regions. Net revenue in the Company’s Thailand region decreased by 8.1%, primarily attributable to the decrease in sales from the public sector in 2022 and the depreciation of the Thai Baht, which depreciated by 9.91% compared to 2021. Revenues in the Company's North Asia region decreased by 27.6%, primarily due to the impact of the conflict in Ukraine. The price of raw materials, crude oil, and natural gas rose, which squeezed the export market for home appliances and electronic consumer products, and export volume shrank. China’s COVID lockdowns added to supply chain problems, and the Sino-American trade war has affected the world economy. Revenues in the Company's Rest of World (“ROW”) region increased by 13.0% due to orders released to the market after the government removed certain COVID-19 restrictions in Singapore. A decline in the demand for cables decreased revenues 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 for the nine months ended September 30, 2022, was $ 3.8 million, a decrease of 41.09 % from $6.4 million for the nine months ended September 30, 2021. The operating profit margin decreased from a profit of 1.95% in 2021 to a profit of 1.23% in 2022. In the Thailand region, the operating profit margin decreased from 2.54% in 2021 to 2.51% in 2022. Operating profit fell following a decline in higher margin Thai government projects and the fluctuation of copper prices. In the North Asia region, the operating profit margin decreased from 4.62% in 2021 to 0.69% in 2022, resulting from decreased sales volume and the fluctuation of copper prices. The ROW region’s operating profit margin slightly increased from 1.20% in 2021 to 1.22% in 2022, as the increase in sales volume in Singapore was offset by the decrease in Australia because of competition.

Selling, general and administrative expenses for the nine months ended September 30, 2022, were $18.6 million, compared to $19.2 million reported for the nine months ended September 30, 2021. Net income attributable to APWC shareholders was $0.6 million for the first nine months of 2022, compared to a net loss of $(1.4) million for the first nine months of 2021. The increase in net income was primarily due to a decrease in the exchange loss. The weighted average number of shares issued and outstanding was 20.02 million and 13.82 million for the nine months ended September 30, 2022, and 2021, respectively.

Financial Condition

APWC reported $47.5 million in cash and cash equivalents as of September 30, 2022, compared to cash and cash equivalents of $44.5 million as of December 31, 2021.

Current assets totaled $285.7 million as of September 30, 2022, compared to $312.0 million as of December 31, 2021. Working capital was $154.3 million as of September 30, 2022. Short-term bank loans were $38.6 million at September 30, 2022, a decrease of 37.9% from $62.1 million at December 31, 2021. The Company had $12.0 million in long-term debt outstanding at September 30, 2022, compared to $3.3 million in long-term debt as of December 31, 2021. Shareholders’ equity attributable to APWC was $139.9 million as of September 30, 2022, compared to $147.5 million as of December 31, 2021.

APWC reported $5.7 million in cash provided by operating activities during the nine months ended September 30, 2022, compared to cash used in operating activities of $52.0 million in the corresponding period in 2021. The increase in cash generated by operating activities in the first nine months of 2022 was primarily attributable to greater inventory purchased in 2021. The Company reported $1.5 million in cash outflows from investing activities during the nine months ended September 30, 2022, compared to $4.4 million in cash outflows in the same period of 2021. The decrease in cash used in investing activities in the first nine months of 2022 was attributable primarily to greater purchases of property, plant and equipment in 2021. APWC reported $6.5 million in cash inflows from financing activities during the first nine months of 2022, compared to $51.0 million in cash inflows from financing activities in the same period of 2021. The decrease in cash inflows is due to a decrease in borrowings in 2022.

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 Limited is a holding company incorporated in Bermuda with principal executive offices in Taiwan that operates its business through operating subsidiaries. Through its subsidiaries, the Company is principally engaged in the manufacture and distribution of enameled wire, power cable, and telecommunications products in Thailand, Singapore, Australia, the Peoples Republic of China, Hong Kong and certain other markets in the Asia Pacific region. The Company also engages in the distribution of certain wire and cable products manufactured by its controlling shareholder, Pacific Electric Wire & Cable Co., Ltd., and certain third parties. The Company also provides project engineering services in the supply, delivery and installation of power cable. The Company’s major customers include appliance component manufacturers, electrical contracting firms, state owned entities, and wire and cable dealers and factories.

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 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.