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Asia Pacific Wire & Cable Corporation Retains MZ Group as Its Investor Relations Advisor

TAIPEI, Taiwan, April 30, 2012 (GLOBE NEWSWIRE) -- Asia Pacific Wire & Cable Corporation Limited (APWC - News) ("APWC" or the "Company"), a leading manufacturer of wire and cable products for the telecommunications and electric-power industries in selected Asia-Pacific markets, today announced audited consolidated financial results for year ended December 31, 2011.

 

Full Year Ended December 31, 2011 Financial Highlights:

1. 2011 revenues were $471.9 million, an increase of 5.7% from $446.6 million in 2010
2. Gross profit was $43.9 million, a decrease of 23% from $57.0 million in 2010
3. Gross profit margin was 9.3%, compared with 12.8% in 2010
4. Net loss attributable to APWC shareholders was $5.4 million, compared with net income of $14.1 million in 2010
5. Basic and diluted loss per share was $0.39, compared with earnings per share of $1.02 in 2011

 

 

Our 2011 results were adversely impacted by two material events: severe flooding in Thailand that forced the temporary closure of many businesses in Thailand, including our operations, and a significant goodwill impairment. The aggregate impact of these two material events was a direct charge reflected in operating results of approximately $(12.7) million.

Financial Summary

$million USD
FY
2011
FY
2010
% Change
Net Sales $471.9 $446.6 +5.7%
Gross Profit $43.9 $57.0 -23.0%
Selling, General and Administrative Expenses $30.8 $29.0 +6.2%
Operating Income $1.9 $28.7 -93.4%
Net (loss) / Income ($5.4) $14.1 N/A
EPS ($0.39) $1.02 N/A

 

Full Year 2011 Results

Revenues for the year ended December 31, 2011 were $471.9 million, a 5.7% increase over $446.6 million in the corresponding period, mainly attributable to increased sales of manufactured products and power cables. Sales of power cables increased 35.3% due to rising demand in Thailand and Australia as a result of expanded government and private construction contracts.

Gross profit for the year was $43.9 million, a decrease of 23% from $57 million in the corresponding period, representing gross margins of 9.3% and 12.8%, respectively. These decreases were primarily attributable to an increase in raw material costs that were not passed on fully to customers, a lower factory utilization rate and price competition from competitors.

Selling, general and administrative expenses for the year increased 6.2% to $30.8 million, from $29.0 million in the corresponding period, primarily attributable to an increase in transportation costs and due to foreign currency adjustments. Operating income decreased to $1.9 million for the year ended December 31, 2011 from $28.7 million in the corresponding period in 2010. Excluding an $8.8 million goodwill impairment charge and $3.9 million in charges related to the flooding of the Company's factory in Thailand, income from operations was $14.6 million for 2011.

Net loss attributable to APWC shareholders for the year ended December 31, 2011 was $5.4 million, compared to $14.1 million in net income in the corresponding period in 2010. Net loss per basic and diluted share was $0.39 for the period, compared to net income per basic and diluted share of $1.02 in the prior year. The basic and diluted weighted average shares outstanding were 13.8 million for both years.

 

Financial Condition

As of December 31, 2011, APWC had $76.7 million in cash and cash equivalents, $2.5 million in unrestricted short-term bank deposits, and $12.0 million in restricted short-term bank deposits, totaling $91.2 million, compared to cash and cash equivalents and restricted short-term bank deposits totaling $80.6 million as of December 31, 2010. Total current assets were $288.7 million as of December 31, 2011 as compared to $329.5 million at December 31, 2010 and total current liabilities were $117.7 million as of December 31, 2011, compared to $158.8 million at the end of 2010. Working capital was $171.0 million as of December 31, 2011, as compared to $170.7 million at the end of 2010. Shareholders' equity attributable to APWC was $146.5 million at December 31, 2011, as compared to $153.2 million at the end of 2010. Net book value per share was $15.52 as of December 31, 2011, as compared to $16.32 as of December 31, 2010.

APWC generated $22.6 million of cash from operations in 2011 compared to a $2.6 million cash outflow in 2010, due primarily to an improvement in accounts receivable collections. Accounts receivable was $98.3 million at the end of 2011, representing 92 average days sales outstanding, compared to $144.5 million and 102 average days sales outstanding at December 31, 2010.

 

Recent Events

Thailand Flood Losses

APWC's Thailand facility, Siam Pacific Electric Wire and Cable Co., Ltd., suspended operations temporarily in the fourth quarter of 2011 due to damage sustained from the region's recent flooding. The Siam Pacific facility, located 30 kilometers (18.6 miles) north of Bangkok, manufactures enameled wire and communication wire. The facility sustained water damage, as the water level reached approximately 1.5 meters which damaged some of the machinery and equipment in the plant, as well as some of the inventory in the warehouse. As a result, the Company recorded $3.9 million of flood-related charges, including fixed asset impairments, recovery charges and a write-down of damaged inventory and recognized $0.9 million of deferred tax asset related to the charges in 2011.

The Company's insurance policy covers the flood damage to the building, machinery, and inventory; however, it does not cover losses due to the business disruption. The process of submitting claims to the Company's insurers is in its early stages and the Company is unable to determine how much of its losses will be covered by insurance.

 

Goodwill Impairment

The Company assessed the fair value of the reporting unit as of December 31, 2011. The Company adopted the discounted cash flow approach and, considering that the reporting unit constituted the majority of the overall consolidated group, by reference to the closing price of its common shares on that date as well as an assumed control premium. From January 2011 to December 2011, the downturn generally in the wire and cable sector caused a major decline in the Company's stock price. The carrying value exceeded the assessed fair value of the reporting unit as of year-end. The Company then determined that the goodwill was fully impaired. As a result, the Company recognized a goodwill impairment charge of $8.8 million for the year ended December 31, 2011 as a separate line item in the consolidated statement of operations.

 

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 December 31,

2010 2011



ASSETS




Current assets:

 Cash and cash equivalents $ 63,217 $ 76,672
 Unrestricted short-term bank deposits 2,529
 Restricted short-term bank deposits 17,422 12,024
 Accounts receivable, net of allowance for doubtful
accounts of $6,886 and $4,614 at December 31,
2010 and 2011, respectively
144,454 98,329
 Amounts due from related parties 8,246 5,227
 Inventories

 Distributed products 639 2,243
 Finished products 32,781 35,786
 Consignment inventory 3,051
 Work-in-progress 19,108 16,434
 Raw materials and supplies 30,401 24,552
  85,980 79,015



 Deferred tax assets 3,320 5,185
 Prepaid expenses 5,514 7,157
 Other current assets 1,308 2,559
Total current assets 329,461 288,697



Property, plant and equipment:

 Land 6,291 5,964
 Land use rights 2,999 2,900
 Buildings 50,199 49,749
 Machinery and equipment 126,906 118,984
 Motor vehicles 4,431 4,203
 Office equipment 6,915 6,675
 Construction in progress 212 2,547

197,953 191,022
 Accumulated depreciation and amortization (154,052) (148,108)

43,901 42,914
Investments 744 618
Investments in equity investees 3,242 4,435
Goodwill 8,801
Other assets 97 108
Deferred tax assets 677 517

13,561 5,678
 

Total assets $ 386,923 $ 337,289
 

December 31,

2010 2011



LIABILITIES AND SHAREHOLDERS' EQUITY




Current liabilities:

 Bank loans and overdrafts $ 67,351 $ 52,813
 Accounts payable 41,989 22,148
 Accrued expenses 13,197 10,737
 Amounts due to related parties 17,140 14,693
 Short-term loans from the immediate holding company 1,732 1,732
 Income tax liabilities 10,627 9,835
 Other current liabilities 6,772 5,783
Total current liabilities 158,808 117,741

Non-current liabilities:





Other non-current liabilities 822 3,678
Deferred tax liabilities 1,581 1,181
Total non-current liabilities 2,403 4,859
Total liabilities 161,211 122,600



Commitments and contingencies




APWC shareholders' equity:

 Common stock, $0.01 par value:

  Authorized shares of 50,000,000 shares at December 31,
2010 and 2011 Issued and outstanding shares -- 13,830,769 shares
138 138
    Additional paid-in capital 111,541 111,541
    Retained earnings 40,229 34,545
    Accumulated other comprehensive income 1,286 286
Total APWC shareholders' equity 153,194 146,510
Non-controlling interests 72,518 68,179
Total shareholders' equity 225,712 214,689
Total liabilities and shareholders' equity $ 386,923 $ 337,289

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

Year ended December 31,

2009 2010 2011




Net sales


 Manufactured products (including sales to related
parties amounting to $4,144, $3,806 and $3,663
for the years ended December 31, 2009, 2010
and 2011, respectively)
$ 264,128 $ 396,059 $ 429,474
Distributed products 28,102 26,935 25,500
Supply, delivery and installation of wires and cables 34,008 23,600 16,972

326,238 446,594 471,946
Costs of sales


 Manufactured products (including purchases from
related parties amounting to $36,327, $45,925 and
$46,953 for the years ended December 31, 2009,
2010 and 2011, respectively
(249,840) (342,630) (386,598)
 Distributed products (including purchases from
related parties amounting to $23,458, $4,056
and $7,484 for the years ended December 31,
2009, 2010 and 2011, respectively
(26,585) (25,557) (22,545)
Supply, delivery and installation of wires and cables (33,119) (23,358) (16,915)
Inventory impairment 23,949 1,974 (1,993)
  (285,595) (389,571) (428,051)
Gross profit 40,643 57,023 43,895




Selling, general and administrative expenses (24,259) (28,965) (30,760)
Recovery for doubtful accounts 108 940 1,487
Impairment of long-lived assets (77)
Impairment of investments (346)
Impairment of goodwill (8,791)
Charges related to flooding (3,947)
Income from operations 16,415 28,652 1,884




Exchange gain (loss), net 507 3,041 (1,346)
Interest income 458 492 1,409
Interest expenses (1,597) (1,364) (2,217)
Share of net loss of equity investees (40) (21) (58)
Gain on liquidation of subsidiaries 568
Loss on disposal of available-for-sale securities (68)
Other income, net 2,111 1,032 1,032
Income from continuing operations before income taxes 18,422 31,832 636
Income taxes (4,647) (6,441) (4,566)
Net income (loss) from continuing operations 13,775 25,391 (3,930)
Discontinued operations




Income from operations of discontinued SPFO (including gain on disposal of $1,962 for the year ended December 31, 2011, purchases from related parties amounting to $nil, $4 and $317, and sales to related parties amounting to $nil, $54 and $693 for the years ended December 31, 2009, 2010 and 2011, respectively
1,150

446

1,075
Income taxes (697) (450) (229)
(Loss) Income from discontinued operations 453 (4) 846
Net income (loss) 14,228 25,387 (3,084)

Net income attributable to non-controlling interests
4,139 11,247 2,355
Income (loss) attributable to APWC $ 10,089 $ 14,140 $ (5,439)




Basic and diluted earnings (loss) per share from continuing operations $ 0.71 $ 1.02 $ (0.49)
Basic and diluted earnings (loss) per share from discontinued operations 0.02 (0.00) 0.10




Basic and diluted earnings (loss) per share $ 0.73 $ 1.02 $ (0.39)




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

 

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(In thousands of US Dollars, except share data)








Common Stock Additional
paid-in capital
Retained earnings Accumulated
other
comprehensive
(loss) income
Total
APWC
shareholders' equity
Non-
controlling interests
Total
Shareholders' equity
Balance at January 1, 2009 $ 138 $ 111,541 $ 15,819 $ (13,369) $ 114,129 $ 48,578 $ 162,707
Comprehensive income






Net income -- -- 10,089 10,089 4,139 14,228
Currency translation adjustment -- -- -- 3,177 3,177 2,483 5,660
Pension liability adjustments -- -- -- (4) (4) -- (4)
Unrealized loss on sale of available-for- sale securities -- net of income tax expense of $18 -- -- -- 1 1 -- 1
Comprehensive income



13,263 6,622 19,885








Balance at December 31, 2009 138 111,541 25,908 (10,195) 127,392 55,200 182,592
Comprehensive income






Net income -- -- 14,140 14,140 11,247 25,387
Currency translation adjustment -- -- -- 12,027 12,027 6,064 18,091
Pension liability adjustments -- -- -- (472) (472) -- (472)
Increase in shareholding in a subsidiary -- -- 181 181 (181) --
Transfer to impairment of investment -- unrealized loss on sale of available-for-sales securities, net of income tax of $84 -- -- -- (74) (74) 188 114
Comprehensive income



25,802 17,318 43,120








Balance at December 31, 2010 138 111,541 40,229 1,286 153,194 72,518 225,712
Comprehensive loss






Net loss -- -- (5,439) (5,439) 2,355 (3,084)
Currency translation adjustment -- -- -- (931) (931) (2,795) (3,726)
Unrealized loss of available-for-sale securities


(68) (68) -- (68)
Reclassification of unrealized loss of available-for-sale securities upon disposal


68 68 -- 68
Increase in shareholding in a subsidiary -- -- (245) (245) 245 --
Dividend paid to non-controlling shareholders of subsidiaries


(3,195) (3,195)
Disposal of a subsidiary


(949) (949)
Comprehensive loss



(6,684) (4,339) (11,023)








Balance at December 31, 2011 $ 138 $ 111,541 $ 34,545 $ 286 $ 146,510 $ 68,179 $ 214,689


ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of US Dollars, except share data)

Year ended December 31,

2009 2010 2011
Operating activities:


 Net income (loss) $ 14,228 $ 25,387 $ (3,084)
 Adjustments to reconcile net income (loss) to net
cash provided (used in) by operating activities:



 Loss (gain) on disposal of property, plant and
equipment
6 (93) (158)
 Loss on disposal of available-for-sale securities -- -- 68
 Depreciation 8,941 6,857 6,462
 Deferred income taxes 1,196 (213) (2,273)
 Recovery for doubtful accounts (860) (1,317) (1,555)
 Inventory impairment (23,949) (1,974) 1,993
 Share of net loss of equity investees 40 21 58
 Impairment of long-lived assets 77 -- --
 Impairment of investments -- 346 --
 Impairment of goodwill -- -- 8,791
 Gain on liquidation of subsidiaries (568) -- --
 Gain on disposal of a subsidiary -- -- (1,962)
 Pension liability adjustments (4) 14 1
 Unrealized foreign exchange difference, net 623 (284) 974
 Changes in operating assets and liabilities


 Accounts receivable (552) (31,779) 34,052
 Inventories 30,069 (8,595) (5,539)
 Other current assets 2,470 (1,510) (7,508)
 Amounts due to related parties (7,303) (4,026) 580
 Other long term assets 740 1,165 (343)
 Accounts payable, accrued expenses and
other liabilities
(6,747) 13,365 (7,933)
Net cash provided by (used in) operating activities 18,407 (2,636) 22,624
Investing activities:


 Placement of unrestricted short-term bank deposits
to financial institutions

--

--

(2,625)
 Maturity of unrestricted short-term bank deposits
from financial institutions

7,786


 Placement of restricted short-term bank deposits
to financial institutions

(2,251)

(12,638)

(13,906)
 Maturity of restricted short-term bank deposits
from financial institutions

4,656

9,696

11,326
 Purchases of property, plant and equipment (3,260) (3,653) (8,888)
 Proceed from disposal of an available-for-sale
securities
-- -- 24
 Proceeds from disposal of property, plant and
equipment
153 147 165
 Decrease in investment in equity investees 800
Net cash provided by (used in) investing activities 7,884 (6,448) (13,904)
Financing activities:


 Dividend paid during the year (3,195)
 Repayments of bank loans (30,733) (19,608) (22,503)
 Proceeds from bank loans 9,023 46,021 31,319
Net cash (used in) provided by financing activities (21,710) 26,413 5,621
Effect of exchange rate changes on cash and cash equivalents (557) 4,354 (886)




Net increase in cash and cash equivalents 4,024 21,683 13,455
Cash and cash equivalents at beginning of year 37,510 41,534 63,217
Cash and cash equivalents at end of year $ 41,534 $ 63,217 $ 76,672




  Supplemental disclosure of cash flow information:
  Cash paid for interest $ 2,918 $ 2,056 $ 1,861
  Cash paid for income taxes 1,900 3,547 7,412

 

 

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:
MZ Group
Mr. Scott Powell, Senior Vice President
Phone: +1-212-301-7130
Email: scott.powell@hcinternational.net
Web:   http://www.mz-ir.com

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