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Asia Pacific Wire & Cable Corporation Announces First-Quarter 2011 Results

TAIPEI, Taiwan, June 14, 2011 /PRNewswire-Asia-FirstCall/ -- Asia Pacific Wire & Cable Corporation Limited (NASDAQ:APWC - News) ("APWC" or the "Company"), today announced unaudited consolidated results for the first quarter ended March 31, 2011. The Company's first quarter results were achieved prior to the elevation of its common shares to trading on NASDAQ, which took place on April 29, 2011.

 

In the current environment surrounding U.S.-listed China companies, the Company would like to emphasize APWC's more than 40-year history as a stable, multinational company serving Singapore, Thailand, and other countries in Southeast Asia and demonstrating solid business performance and financial results. The Company recently completed its annual audit by the leading global firm, Ernst & Young, and has filed its annual report on form 20-F ahead of the June 30 deadline. APWC as a company and as a brand enjoys a good reputation with its customers and operates from an extremely sound financial position with strong auditing procedures and internal controls and close adherence to SEC and other regulations. The Company recently improved its corporate governance by appointing a highly qualified independent director, who serves on the Company's Audit Committee, in addition to improving its standing with investors through its upgrade to the NASDAQ Capital Market exchange.

 

First-Quarter 2011 Financial Highlights:

The Company reported continued growth in its revenue and gross profit. The Company's solid results for first-quarter 2011 reflect the sustained customer demand for its principal manufactured products, particularly for power cable, enameled wire, and telecommunications cable, across the Company's major geographic markets.

1. Revenues were $121.8 million, an increase of 16.1% from $104.8 million in the same period a year ago
2. Gross profit increased to $13.0 million, an increase of 13.5% from $11.4 million from the first quarter of 2010
3. Gross profit margin was 10.6%, compared with 10.9% in the year-ago period
4. Net income attributable to APWC shareholders was $2.7 million, compared with $3.7 million in the same period a year ago
5. Basic and diluted earnings per share were $0.20, compared with $0.27 in the first quarter of 2010

 

First-Quarter 2011 Results

Revenues were $121.8 million, a 16.1% increase over the first quarter of 2010. Gross profit was $13.0 million, an increase of 13.5% from $11.4 million in the same period in 2010. Gross profit margin was 10.6%, compared with 10.9% in the first quarter of 2010. Operating income was $5.9 million, versus $5.2 million in the year-ago period, an increase of 14.0%. Selling, general and administrative expenses were $7.1 million, an increase of 15.6% from the first quarter of 2010. Pretax income was $5.8 million, versus $5.7 million in the first quarter of 2010. Income tax expense was $2.0 million in the first quarter of 2011, as compared to a benefit of $1.0 million in the year-ago quarter. Net income attributable to APWC shareholders was $2.7 million versus $3.7 million in the first quarter 2010. Net income per basic and diluted share was $0.20, versus $0.27 in the year-ago period.

 

Financial Condition

As of March 31, 2011, APWC had $37.0 million in cash and cash equivalents and $37.8 million in unrestricted short-term bank deposits, totaling $74.9 million, compared to cash and equivalents of $63.2 million as of December 31, 2010. Total current assets were $345.0 million as of March 31, 2011, compared to $329.5 million at the end of 2010, and total current liabilities were $172.0 million as of March 31, 2011, compared to $158.8 million at the end of 2010. Working capital was $173.0 million as of March 31, 2011, versus $170.7 million at the end of 2010. Shareholders' equity attributable to APWC was $156.9 million, compared to $153.2 million at the end of 2010. Net book value per share increased to $11.34 from $11.08 per share at the end of 2010.

 

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.


- financial tables follow -
 
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of US Dollars, except share data)
 
  As of March 31,
2011
As of December
31, 2010

(Unaudited) (Audited)
ASSETS




Current assets:

Cash and cash equivalents $37,039 $63,217
Unrestricted Short-term bank deposits 37,847 -
 Restricted short-term bank deposits 17,259 17,422
Accounts receivable, net of allowance for doubtful accounts 121,653 144,454
Amounts due from related parties 13,313 8,246
 Inventories, net of allowance for inventories

Distributed products 5,737 639
Finished products 42,598 35,832
Products in process 25,080 19,108
Raw materials and supplies 33,064 30,401
  106,479 85,980



Deferred tax assets 2,118 3,320
Prepaid expenses 4,567 5,514
Other current assets 4,764 1,308
Total current assets 345,039 329,461



Property, plant and equipment:

Land 6,259 6,291
Land use rights 3,011 2,999
Buildings 50,374 50,199
Machinery and equipment 128,482 127,118
Motor vehicles 4,644 4,431
Office equipment 7,128 6,915

199,898 197,953
Accumulated depreciation and amortization (155,061) (154,052)
  44,837 43,901



Available-for-sale investments 711 744
Investment in equity investees 3,241 3,242
Goodwill 8,801 8,801
Other assets 156 97
Deferred tax assets 2,301 677

15,210 13,561



Total assets $405,086 $386,923









LIABILITIES AND SHAREHOLDERS' EQUITY




Current liabilities:

Bank loans and overdrafts $27,422 $25,259
Trust receipts 59,515 42,092
Accounts payable 35,579 41,989
Accrued expenses 11,629 13,197
Amounts due to related parties 17,151 17,140
Short-term loans from the immediate holding company 1,732 1,732
Income tax liabilities 12,193 10,627
Deferred tax liabilities 57 -
Other current liabilities 6,734 6,772
Total current liabilities 171,012 158,808



Other liabilities 1,042 822
Deferred tax liabilities 1,930 1,581
Total liabilities 174,984 161,211



Commitments and contingencies




APWC shareholders' equity:

Common stock, $0.01 par value:

 Authorized shares of 50,000,000 shares was effective on
December 31, 2009 and 2010


Issued and outstanding shares – 13,830,769 shares 138 138
 Additional paid-in capital 111,541 111,541
Retained earnings 42,952 40,229
Accumulated other comprehensive (loss) income 2,277 1,286
Total APWC shareholders' equity 156,908 153,194
Non-controlling interests 73,194 72,518
Total shareholders' equity 230,102 225,712



Total liabilities and shareholders' equity $405,086 $386,923



 



ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of US Dollars, except share data)
 
  3 Months Ended March 31,

(Unaudited)

2011
2010




Net sales $121,801
$104,868
Cost of sales (108,831)
(93,442)
Gross profit 12,970
11,426




Selling, general and administrative expenses (7,087)
(6,133)
Provision for doubtful accounts 5
(125)
Impairment of long-lived assets -
-
Income from operations 5,888
5,168




Exchange gain, net 119
865
Interest income 306
118
Interest expense (805)
(559)
Share of net loss of equity investees -
(42)
Impairment of investments -
-
Gain on liquidation of subsidiaries -
-
Other income, net 274
183
Income before income taxes 5,782
5,733




Income taxes (1,994)
1,049
Net income 3,788
6,782




Less: Net income attributable to non-controlling interests (1,065)
(3,053)
Net income attributable to APWC $2,723
$3,729




Basic and diluted income per share $0.20
$0.27




Basic and diluted weighted average common shares outstanding 13,830,769
13,830,769




ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. Dollars)
 

Three-Month Period Ended
March
 31,
(Unaudited)

2011
2010
Net cash provided by (used in) operating activities ($6,152)
$3,321
Net cash provided by (used in) investing activities (40)
(3,892)
Net cash provided by (used in) financing activities 19,699
4,797




Effect of exchange rate changes on cash and cash


equivalents 377
624




Net increase (decrease) in cash and cash equivalents (26,178)
4,850




Cash and cash equivalents at beginning of period 63,217
41,534




Cash and cash equivalents at end of period $37,039
$46,384

 

Contact:

For more information, please contact:
Company Contact:
Asia Pacific Wire & Cable Corporation Limited
Mr. Frank Tseng, CFO
Phone: +886-2-2712-2558 ext. 66
Email: frank.tseng@apwcc.com
Web:   http://www.apwcc.com

 

Investor Relations Contact:
CCG Investor Relations
Mr. John Harmon, CFA, Senior Account Manager
Phone: +86-10-6561-6886 Ext. 807 (Beijing)
Email: john.harmon@ccgir.com
Web:   http://www.ccgir.com


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