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

TAIPEI, Taiwan , Dec. 6, 2011 /PRNewswire-Asia-FirstCall/ -- Asia Pacific Wire & Cable Corporation Limited (NASDAQ: APWC - News) ("APWC" or the "Company"), today announced unaudited consolidated results for the third quarter ended September 30, 2011 .

 

Third-Quarter 2011 Financial Highlights:

1. Revenues were $130.2 million , an increase of 13.9% from $114.3 million in the third quarter of 2010
2. Gross profit was $8.0 million , a decrease of 47.6% from $15.2 million in the year-ago quarter
3. Gross profit margin was 6.1%, compared with 13.3% in the year-ago quarter
4. Net loss attributable to APWC shareholders was $1.2 million , compared with net income attributable to APWC shareholders of $3.6 million in the year-ago quarter
5. Basic and diluted loss per share was $0.09 , compared with earnings of $0.26 in the year-ago quarter

 

Third-Quarter 2011 Results

Revenues in the quarter ended September 30, 2011 increased 13.9% to $130.2 million from $114.3 million in the third quarter of 2010. Gross profit was $8.0 million , down 47.6% from $15.2 million in the year-ago quarter. Gross profit includes a $3.1 million write down of inventory. The gross margin decreased to 6.1%, as compared to 13.3% in the year-ago quarter. The operating loss was $0.5 million , versus operating income of $7.7 million in the year-ago quarter. Selling, general and administrative expenses were $9.8 million , an increase of 31.9% from the year-ago quarter. This was mainly due to currency losses in various countries. Net loss attributable to APWC shareholders was $1.2 million , as compared to net income attributable to APWC shareholders of $3.6 million in the year-ago quarter. Net loss per basic and diluted share was $0.09 , as compared to net income per basic and diluted share of $0.26 in the year-ago.

 

Nine-Month 2011 Results

Revenues in the nine months ended September 30, 2011 were $400.7 million , a 23.2% increase over $325.2 million in the year-ago period. Gross profit was $37.3 million , down 8.7% from $40.8 million in the year-ago period, representing gross margins of 9.3% and 12.6%, respectively. Gross profit includes a $3.3 million write down of inventory. Operating income was $12.2 million , a decrease of 38.5% from $19.8 million in the year-ago period. SG&A expense was $26.8 million , an increase of 30.7% from $20.5 million in the year-ago period, mostly due to currency losses. Net income attributable to APWC shareholders was $3.9 million , as compared to $11.1 million in the year-ago period. Net income per basic and diluted share was $0.29 , as compared to $0.80 in the year-ago period.

 

Financial Condition

As of September 30, 2011 , APWC had $76.1 million in cash and cash equivalents and $4.2 million in unrestricted short-term bank deposits, totaling $80.3 million , as compared to cash, cash equivalents, and unrestricted short-term bank deposits of $63.2 million as of December 31, 2010 . Total current assets were $339.6 million as of September 30, 2011 , as compared to $329.5 million at the end of 2010, and total current liabilities were $170.4 million as of September 30, 2011 , compared to $158.8 million at the end of 2010. Working capital was $169.3 million as of September 30, 2011 , as compared to $170.7 million at the end of 2010. Shareholders' equity attributable to APWC was $154.9 million , compared to $153.2 million at the end of 2010. Net book value per share increased to $11.20 from $11.08 per share at the end of 2010.

 

Recent Events

On October 31, 2011 , the Company announced that Siam Pacific ("SP"), a subsidiary of the Company's Charoong Thai Wire and Cable ("Charoong Thai") in Thailand , had suspended operations temporarily due to damage sustained from the region's recent flooding. APWC is organizing an emergency technical and support team from affiliate companies to assist restoration of machineries and equipment at SP and to maintain supply of products to SP customers during the recovery period.

Separately, as previously announced on September 30, 2011 the sale of APWC's Subsidiary, the Shandong Pacific Fiber Optics Co. Ltd.., has been completed and approved in November by the local authorities.

 

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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Amounts in thousands of US Dollars, except share data)
 

For the three months ended
September 30,

For the nine months ended
September 30,


2010

2011

2010

2011

Net sales



 Manufactured products
(sales to related parties
amounted to $ 2,539 in 2010
and $ 3,987 in 2011)
$104,428 $123,870 $290,455 $364,432
 Distributed products 6,027 3,003 18,145 20,151
 Sales, delivery and
installation of wires and
cables

3,890

3,317

16,620

16,140

Total net sales 114,345 130,190 325,220 400,723
Cost of sales (99,156) (122,228) (284,401) (363,436)
Gross profit 15,189 7,962 40,819 37,287
Selling, general and administrative expenses (7,440) (9,810) (20,498) (26,786)
Recover (allowance) for doubtful debts (86) 1,326 (486) 1,691
Income (loss) from operations 7,663 (522) 19,835 12,192
Exchange gain, net 1,399 31 2,540 73
Interest income 152 410 401 1,062
Interest expense (701) (994) (1,901) (2,789)
Loss on disposal of an investment (68)
Share of net gain (loss) of equity investees 11 (14) 15
Other income, net 505 313 974 805
Income (loss) before income taxes 9,029 (762) 21,835 11,290
Income tax (1,880) 323 (3,468) (4,195)
Net income (loss) 7,149 (439) 18,367 7,095
 Less: Net income attributable
to non-controlling interests
(3,505) (757) (7,285) (3,152)
Net income (loss) attributable to APWC 3,644 (1,196) 11,082 3,943
Basic and diluted income (loss) per share $0.26 ($0.09) $0.80 $0.29
Basic and diluted weighted average common shares outstanding 13,830,769 13,830,769 13,830,769 13,830,769

 

 

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of U S Dollars, except share data)
 

December  31 ,  2010 September  30 ,  2011

(Unaudited)
ASSETS

 

Current assets:

 Cash and cash equivalents $63,217 $  76,111
 Unrestricted short-term bank
deposits
4,171
 Restricted short-term bank
deposits
17,422 16,574
Accounts receivable, net of allowance for doubtful accounts
of $6,886 at December 31, 2010
and $4,595 at September
30, 2011 (unaudited)
144,454 125,404
 Amounts due from related parties 8,246 7,216
 Inventories

 Distributed products 639 1,819
Finished products 32,781 37,876
Consignment inventory 3,051 8,421
Products in process 19,108 20,596
Raw materials and supplies 30,401 27,053

85,980 95,765



 Deferred tax assets 3,320 3,244
 Prepaid expenses 5,514 8,376
 Other current assets 1,308 2,778
Total current assets 329,461 339,639



Property, plant and equipment:

 Land 6,291 6,030
 Land use rights 2,999 3,064
 Buildings 50,199 49,458
 Machinery and equipment 126,906 125,091
 Motor vehicles 4,431 4,554
 Office equipment 6,915 7,005
 Construction in progress 212 2,962

197,953 198,164
Accumulated depreciation and amortization (154,052) (153,311)
Property, plant and equipment, net 43,901 44,853



Available-for-sales investments 744 629
Investment in equity investees 3,242 3,256
Goodwill 8,801 8,801
Other assets 97 122
Deferred tax assets 677 746

13,561 13,554
Total assets $386,923 $398,046
LIABILITIES AND SHAREHOLDERS ' EQUITY




Current liabilities:

 Bank loans and overdrafts $67,351 $84,647
 Accounts payable 41,989 36,387
 Accrued expenses 13,197 11,444
 Amounts due to related parties 17,140 17,473
 Short-term loans from the immediate
holding
1,732 1,732
 Income taxes liabilities 10,627 7,827
 Other current liabilities 6,772 10,841
Total current liabilities 158,808 170,351



Other liabilities 822 770
Deferred tax liabilities 1,581 1,465
Total liabilities 161,211 172,586



Commitments and contingencies




APWC Shareholders ' equity:

 Common stock, $0.01 par value:

Authorized shares of 50,000,000 shares at December 31,
2010 and September 30, 2011


 Issued and outstanding shares -
13,830,769 shares
138 138
 Additional paid-in capital 111,541 111,541
 Retained earnings 40,229 44,172
 Accumulated other comprehensive
income
1,286 (925)
Total APWC shareholders ' equity 153,194 154,926
Non-controlling interests 72,518 70,534
Total shareholders ' equity 225,712 225,460



Total liabilities and shareholders ' equity $386,923 $398,046

 

 

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Amounts in Thousands of U.S. Dollars)
 

For the nine months ended
September   30,

2010 2011
Net cash provided by (used in) operating activities ($7,933) $7,260
Net cash used in investing activities (6,974) (10,021)
Net cash provided by financing activities 19,710 19,336



Effect of exchange rate changes on cash and cash
  equivalents 3,761 (3,681)



Net increase in cash and cash

  equivalents 8,564 12,894
Cash and cash equivalents at beginning of period 41,534 63,217



Cash and cash equivalents at end of period $50,098 $76,111

 

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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