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Asia Pacific Wire & Cable Company Reports First Quarter 2016 Financial Results

TAIPEI, Taiwan, June 30, 2016 (GLOBE NEWSWIRE) -- Asia Pacific Wire & Cable Corporation Limited (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, 2016.

 

 

Q1 2016 Financial Results (Ended March 31, 2016)
  Q1 2016   Q1 2015 CHANGE 
Revenues  $78.7 million $ $88.2 million -10.9%
Gross Profit $6.1 million $ $4.8 million +28.5%
Net Income (Loss) $0.3 million $ $(2.1) million --
EPS*  $0.02 $ $ (0.15) --
*Earnings per share are based on 13.8 million shares in Q1 2016 and Q1 2015

 

 

First Quarter 2016 Results

Revenues for the three months ended March 31, 2016 were $78.7 million, down from $88.2 million in the prior period. The decrease was primarily due to a drop in copper prices in all regions, compounded by depreciation of local currencies. However, comparing with Thailand and North Asia regions, the ROW region did not experience a similar revenue decrease, because the trading revenue increased in the ROW region. APWC’s 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 North Asia Region includes China and Hong Kong, and the Thailand Region contains the operations and sales inside Thailand.

 

Gross profit for the first quarter of 2016 increased 28.5% to $6.1 million from $4.8 million in the year-ago period, representing gross margins of 7.8% and 5.4%, respectively. Gross margin was up year over year in Thailand due to entities in Thailand changing their business strategy to outsource low-margin products, which lowered the costs, and focusing on manufacturing high-margin products in-house. The North Asia Region’s margin increased because the copper price did not fluctuate as much as the prior year.

 

Selling, general and administrative expenses were $5.9 million for the first three months ended March 31, 2016, down $0.6 million from $6.5 million in 2015. Operating income was $0.3 million compared to an operating loss of $1.4 million in the first three months of 2015.

 

Net income attributable to APWC shareholders was $0.3 million for the first three months ended March 31, 2016 compared to a net loss of $2.1 million in the corresponding period in 2015. Net income per basic and diluted share was $0.02 for the period, compared to a net loss per basic and diluted share of $0.15 in the first three months of 2015. The basic and diluted weighted average shares outstanding were 13.8 million for the first three months of 2016 and 2015.

 

 

Financial Condition

As of March 31, 2016, APWC had $50.0 million in cash and cash equivalents, compared to cash and cash equivalents totaling $51.3 million as of December 31, 2015.

 

Total current assets were $250.1 million at March 31, 2016 compared to $247.5 million at December 31, 2015. Working capital was $151.4 million as of March 31, 2016. As of March 31, 2016, short term bank loans of $35.3 million were down from $37.7 million at December 31, 2015. The Company had no long term debt outstanding at March 31, 2016. Shareholders' equity attributable to APWC was $139.7 million at March 31, 2016 compared to $135.3 million at December 31, 2015.

 

APWC generated $1.5 million of cash from operating activities during the three months ended March 31, 2016, compared to $2.0 million of cash outflows from operations in the corresponding period in 2015. The Company reduced capital expenditures to $1.4 million in the first quarter of 2016 compared to $1.9 million in corresponding period in 2015.

 

 

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 www.apwcc.com. Information on the Company' website or any other website 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.

 
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)
  2016 2015
Sales of goods / services $78,655 $88,238
Cost of sales (72,541) (83,481)
Gross profit 6,114 4,757
     
Other operating income 237 345
Selling, general and administrative expenses (5,929) (6,487)
Other operating expenses (99) (45)
Operating income/(loss) 323 (1,430)
     
Finance costs (272) (440)
Finance income 116 257
Share of loss  of associates (256) (353)
Gain on disposal of investment 0 0
Exchange (loss)/gain 825 662
Other income 0 0
Other expense (156) (86)
Profit/(loss) before tax 580 (1,390)
     
Income tax benefit/(expense) 328 (450)
     
Profit/(loss) for the year $908 $(1,840)
     
Attributable to:    
Equity holders of the parent 336 (2,063)
Non-controlling interests 572 223
Basic and diluted earnings per share $0.02 $(0.15)
Basic and diluted weighted average common shares outstanding 13,819,669 13,819,669
 
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(Amounts in thousands of US Dollars, except share data)
 
  For the three months
  ended March 31,  (Unaudited)
  2016 2015
Profit/(loss) for the year $908 $(1,840)
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 5,345 (2,122)
     
Net gain on available-for-sale financial assets 57 14
Income tax effect (12) 0
  45 14
     
Other comprehensive income not to be reclassified to profit or loss in subsequent periods:    
Re-measuring losses on defined benefit plans (26) (9)
Income tax effect 6 3
Defined benefit pension plan, net of tax (20) (6)
     
Other comprehensive profit/(loss) for the period, net of tax 5,370 (2,114)
     
Total comprehensive profit/(loss) for the period, net of tax 6,278 (3,954)
Attributable to:    
Equity holders of the parent 4,352 (4,792)
Non-controlling interests 1,926 838
  $6,278 (3,954)
 
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of US Dollars, except share data)
 
  As of March 31,
2016 (Unaudited)
As of December 31,
2015  (Audited)
     
ASSETS    
Current assets:    
Cash and cash equivalents $50,018 $51,303
Other current financial assets – at fair value through profit or loss 0 19
Trade receivables 71,988 69,991
Other receivables 17,558 17,563
Due from related parties 12,100 18,180
Inventories 91,890 83,137
Gross amounts due from customers for contract work-in-progress 625 1,071
Prepayments 2,828 2,258
Assets classified as held for sale 0 224
Other current assets 3,439 3,776
  250,446 247,522
Non-current assets    
Other non-current financial assets-available for sale 2,934 2,862
Other non-current financial assets-held to maturity 314 306
Property, plant and requirement 47,074 45,898
Prepaid land lease payments 1,738 1,737
Investment properties 680 667
Intangible assets 95 93
Investments in associates 1,406 1,633
Other non-current assets 155 203
Deferred tax assets 4,091 4,481
  58,487 57,880
Total assets $308,933 $305,402
 
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of US Dollars, except share data)
 
  As of March 31,
2016 (Unaudited)
As of December 31,
2015  (Audited)
     
Current liabilities:    
Interest-bearing loans and borrowings $35,279 $37,701
Trade and other payables 37,878 31,690
Due to related parties 3,220 8,547
Due to immediate holding company 1,537 1,537
Other current financial liabilities at fair value through profit or loss 130 0
Accruals 11,370 10,527
Current tax liabilities 5,111 6,031
Employee benefit liability 64 446
Financial lease liabilities 15 22
Provisions for employee benefit 480 442
Onerous contracts provisions 0 79
Dividend payable 427 417
Other current liabilities 3,550 5,130
  99,061 102,569
     
Non-current liabilities    
Employee benefit liability 6,531 5,859
Financial lease liabilities 53 51
Provisions for employee benefit 105 116
Other non-current liabilities 0 5
Deferred tax liabilities 2,839 2,734
  9,528 8,765
Total liabilities 108,589 111,334
     
Equity    
Issued capital 138 138
Additional paid-in capital 110,608 110,608
Treasury shares (38) (38)
Retained earnings 44,516 44,180
Other components of equity (15,544) (19,558)
Equity attributable to equity holders of the parent 139,680 135,330
Non-controlling interests 60,664 58,738
Total equity 200,344 194,068
Total liabilities and equity $308,933 $305,402
 
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)
  2016 2015
Net cash provided/(used in) by operating activities $1,512 $(1,958)
Net cash (used in) investing activities (1,136) (1,979)
Net cash (used in )/provided by financing activities (3,146) 5,157
Effect of exchange rate changes on cash and cash  equivalents 1,485 (148)
Net (decrease)/increase in cash and cash equivalents (1,285) 1,072
Cash and cash equivalents at beginning of period 51,303 68,863
Cash and cash equivalents at end of period $50,018 $69,935

 

 

 

Contact:

Asia Pacific Wire & Cable Corporation Limited
Mr. Ivan Hsia, CFO
Phone: +886-2-2712-2558 ext. 27
Email: ivan.hsia@apwcc.com

 

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


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