×

Asia Pacific Wire & Cable Corporation Ltd. Reports First Quarter 2017 Financial Results

TAIPEI, Taiwan, June 21, 2017 (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, 2017. Unless otherwise indicated, all data are reported in US dollars at the exchange rate prevailing on the date of the event or result reported.

First Three Months 2017 Financial Results (Ended March 31, 2017)
First 3 Months 2017First 3 Months 2016CHANGE
Revenues$87.9 million$78.7 million11.8%
Gross Profit$7.1 million$6.1 million16.9%
Net Income$4.8 million$0.3 million1321.4%
EPS(1)$0.35$0.021650.0%
(1)The calculation of the earnings per share is based on 13,819,669 and 13,819,669 basic and diluted weighted common shares issued and outstanding for the three months ended March 31, 2016 and 2017, respectively.

First Three Months 2017 Results

Gross revenues for the three months ended March 31, 2017, were $87.9 million, an increase of 11.8% from $78.7 million in the prior year. The increase was primarily attributable to a 36.1% revenue increase in the Thailand region due to higher demand in the public sectors and export sales. Revenues in the Company’s North Asia region increased by 7.5%, primarily due to the increase in the price of copper. Revenues in the Company’s Rest of World region dropped by 9.7% due to increased market competition. The Company’s North Asia region includes China and Hong Kong; the Thailand region contains the operations and sales inside 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.

The gross profit for the three months ended March 31, 2017, increased by 16.9% to $7.1 million from $6.1 million in the same period last year. Gross margin was up by 4.6%, growing from 7.8% in 2016 to 8.1% this year. In the Thailand region, gross margin grew following an increase in our product sales to high margin government projects. In the North Asia and Rest of World regions, gross margins remained the same.

Selling, general and administrative expenses for 2016 were $5.9 million, compared to $5.9 million reported in 2016. Operating income was $6.1 million, compared to operating income of $0.3 million in 2016.

Net income attributable to APWC shareholders was $4.8 million for the first quarter of 2017, compared to net income of $0.3 million in 2016. The increase in net income was due, in part, to the disposal of land use rights and buildings of Ningbo Pacific Cable Co. Ltd. (NPC). Net income per share was $0.35 in the first quarter of 2017, while net income per share was $0.02 in 2016. The weighted average number of shares issued and outstanding was 13.8 million for the three months ended March 31, 2017 and 2016.

Financial Condition

APWC reported $56.8 million in cash and cash equivalents as of March 31, 2017, compared to cash and cash equivalents of $48.2 million as of December 31, 2016.

Current assets totaled $264.2 million as of March 31, 2017, compared to $244.6 million as of December 31, 2016. Working capital was $170.1 million as of March 31, 2016. Short term bank loans were $37.2 million at March 31, 2017, an increase from $28.2 million at the end of 2016. The Company had no long-term debt outstanding at March 31, 2017. Shareholder's equity attributable to APWC was $210.1 million as of March 31, 2017, compared to $197.2 million as of December 31, 2016.

APWC reported $9.2 million in cash outflows from operations during the three months ended March 31, 2017, compared to cash generated from operations of $1.5 million in the corresponding period in 2016. Cash used in operations was mainly caused by an increase of inventory. The Company generated $7.6 million from investing activities during the three months ended March 31, 2017, compared to $1.1 million cash outflows in the same period of 2016. The cash generated was attributable, in part, to the disposal of land use rights and buildings of NPC. APWC generated $8.0 million from financing activities during the first quarter of 2017, compared to $3.1 million in outflows in the same period of 2016. The cash generated was mainly attributable to the increase in bank loans.

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

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.

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
(Unaudited)
(Amounts in thousands of US Dollars, except share data)
For the three months
ended March 31, (Unaudited)
2017 2016
Sales of goods / services$87,909 $78,655
Cost of sales (80,759) (72,541)
Gross profit 7,150 6,114
Other operating income 4,923 237
Selling, general and administrative expenses (5,940) (5,929)
Other operating expenses (17) (99)
Operating income/(loss) 6,116 323
Finance costs (257) (272)
Finance income 115 116
Share of loss of associates 0 (256)
Exchange (loss)/gain 1,208 825
Other expense (555) (156)
Profit/(loss) before tax 6,627 580
Income tax benefit/(expense) (900) 328
Profit/(loss) for the year$5,727 $908
Attributable to:
Equity holders of the parent 4,800 336
Non-controlling interests 927 572
Basic and diluted earnings per share$0.35 $0.02
Basic and diluted weighted average common shares
outstanding
13,819,669 13,819,669
Profit/(loss) for the year$5,727 $908
Other comprehensive income
Other comprehensive income to be reclassified to
profit or loss in subsequent periods:
Exchange differences on translation of foreign
operations, net of tax of $0
7,171 5,345
Net gain on available-for-sale financial assets 91 57
Income tax effect (18) (12)
73 45
Other comprehensive income not to be reclassified to
profit or loss in subsequent periods:
Re-measuring losses on defined benefit plans (44) (26)
Income tax effect 9 6
Defined benefit pension plan, net of tax (35) (20)
Other comprehensive profit/(loss) for the period, net
of tax
7,209 5,370
Total comprehensive profit/(loss) for the period, net
of tax
12,936 6,278
Attributable to:
Equity holders of the parent 9,732 4,352
Non-controlling interests 3,204 1,926
$12,936 $6,278


ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of US Dollars, except share data)
As of March 31,
2017 (Unaudited)
As of December
31, 2016
(Audited)
ASSETS
Current assets:
Cash and cash equivalents$56,846 $48,231
Other current financial assets – at fair value
through profit or loss
0 187
Trade receivables 74,560 79,472
Other receivables 17,714 16,918
Due from related parties 13,531 12,573
Inventories 96,381 77,407
Gross amounts due from customers for
contract work-in-progress
59 2,045
Prepayments 1,332 1,189
Assets classified as held for sale 0 3,368
Other current assets 3,742 3,238
264,165 244,628
Non-current assets
Other non-current financial assets-available for
sale
2,882 2,765
Other non-current financial assets-held to
maturity
321 309
Property, plant and requirement 40,140 39,637
Prepaid land lease payments 1,069 1,070
Investment properties 665 653
Intangible assets 160 173
Investments in associates 820 786
Other non-current assets 442 461
Deferred tax assets 3,016 3,114
49,515 48,968
Total assets$313,680 $293,596


ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of US Dollars, except share data)
As of March 31,
2017 (Unaudited)
As of December
31, 2016
(Audited)
Current liabilities:   
Interest-bearing loans and borrowings$37,209 $28,225
Trade and other payables 27,844 30,023
Due to related parties 3,095 3,096
Due to immediate holding company 1,537 1,537
Other current financial liabilities at fair value
through profit or loss
366 0
Accruals 16,087 13,651
Current tax liabilities 3,618 3,473
Employee benefit liability 609 594
Financial lease liabilities 31 29
Provisions for employee benefit 448 422
Onerous contracts provisions 252 250
Dividend payable 458 440
Other current liabilities 2,554 5,876
94,108 87,616
Non-current liabilities
Employee benefit liability 6,447 6,058
Financial lease liabilities 49 54
Provisions for employee benefit 112 105
Other non-current liabilities 106 0
Deferred tax liabilities 2,747 2,588
9,461 8,805
Total liabilities 103,569 96,421


Equity   
Issued capital 138 138
Additional paid-in capital 110,608 110,608
Treasury shares (38) (38)
Retained earnings 50,812 46,012
Other components of equity (15,838) (20,770)
Equity attributable to equity holders of the
parent
145,682 135,950
Non-controlling interests 64,429 61,225
Total equity 210,111 197,175
Total liabilities and equity$313,680 $293,596


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)
2017 2016
Net cash (used in)/provided by operating
activities
($9,221) $1,512
Net cash provided/(used in) investing activities 7,593 (1,136)
Net cash provided/(used in) by financing
activities
7,984 (3,146)
Effect of exchange rate changes on cash and
cash equivalents
2,259 1,485
Net increase/(decrease) in cash and cash
equivalents
8,615   (1,285)
Cash and cash equivalents at beginning of
period
48,231   51,303
Cash and cash equivalents at end of period$56,846 $50,018


Contact: Investor Relations Contact: MZ North America Ted Haberfield President Tel: +1-760-755-2716 Email: thaberfield@mzgroup.us Web: www.mzgroup.us

Source:Asia Pacific Wire & Cable