Revenues Increase by More than 50% and Net Income More than Doubles Versus Year-Ago Quarter
TAIPEI, Taiwan, June 28 /PRNewswire-Asia-FirstCall/ ĄVAsia Pacific Wire & Cable Corporation Limited (OTC Bulletin Board: AWRCF) ("APWCC" or the "Company"), today announced unaudited results for the first quarter ended March 31, 2010.
| First-Quarter 2010 HighlightsĄG |
| -- |
Revenues increased 55.8% to $104.9 million from $67.3 million in the
first quarter of 2009 |
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Gross profit increased 18.0% to $11.4 million from $9.7 million
compared with the first quarter of 2009 |
| -- |
Operating income increased 53.4% to $5.2 million from $3.4 million
compared with the first quarter of 2009 |
| -- |
Net income attributable to APWCC stockholders increased 147.8% to $3.7
million, or $0.27 per diluted share, from $1.5 million, or $0.11 per
diluted share in the same period last year |
| -- |
Shareholders' equity attributable to APWCC stockholders was $133.0
million as of March 31, 2010, compared to $127.3 million at the end of
2009 |
The Company started 2010 business year with a solid quarter exhibiting strong growth in both revenues and net income. Demand for our products remains strong-particularly for enameled wire and power cables. The majority of our products and services are used in industrial, power and telecommunications infrastructure in the growing Asia-Pacific region.
First -Quarter 2010 Results
Net revenue for the three months ended March 31, 2010, was $104.9 million compared to $67.3 million for the same period in 2009, an increase of 55.8%. The increase in revenue was primarily due to a dramatic increase in sales of enameled wire, which more than doubled year over year. Sales of power cable were also robust.
Revenue from enameled wire for the three months ended March 31, 2010 was $49.5 million compared to $19.1 million for the same period in 2009, an increase of 158.6%. Sales of enameled wire increased in two major geographic markets: Thailand and China. Revenue from telecommunication cable was $10.7 million compared to $13.1 million for the same period in 2009, a decrease of 17.7%, which was primarily due to lower sales of fiber-optic cable. Revenue from power cable was $29.6 million compared to $24.4 million for the same period in 2009, an increase of 21.1%. The increase in power cable sales was largely due to higher sales in Singapore and Australia versus slightly lower sales in Thailand.
Revenue from the SDI (Sales, Delivery and Installation) segment for the three months ended March 31, 2010 was $7.4 million compared to $2.0 million for the same period in 2009, an increase of 275.8%. This increase was largely due to several government-sponsored projects in Singapore. APWCC's largest SDI project in Singapore is with the government agency SP Powerasset, a $25.1 million contract for the supply and servicing of high-voltage power cable through 2011. A second major SDI contract in Singapore is for high-voltage power cable and building wiring and it was completed in May 2010.
Gross profit was $11.4 million compared to $9.7 million for the three months ended March 31, 2009, an increase of 18.0%. The gross margin was 10.9% compared to 14.4% for the same period last year. Despite the decrease in gross margin in Q1 2010, the significant increase in overall revenue resulted in higher gross profit coupled with the Company's efforts in controlling cost, including rigorous control over raw-material inventory.
The combination of higher revenues, lower gross margins, and basically flat operating expenses year over year led to a 53.4% increase in operating income. Higher currency exchange gains, lower interest expense, and a tax credit more than offset higher income attributable to non-controlling interests, leading to net income per share attributable to APWCC shareholders of $3.7 million, which was a 147.8% increase over the first quarter of 2009. Net income per diluted share was $0.27, versus $0.11 per diluted share, in the same period last year.
Financial Condition
As of March 31, 2010, the Company had $46.4 million in cash and cash equivalents, compared to $41.5 million as of December 31, 2009. Total current assets were $259.3 million as of March 31, 2010, compared to $239.0 million at the end of 2009, and total current liabilities were $122.4 million as of March 31, 2010, compared to $111.9 million at the end of 2009. Working capital was $137.0 million versus $127.1 million at the end of 2009. Shareholders' equity was $133.0 million, compared to $127.4 million at the end of 2009. Cash from operations was $3.3 million, versus an outflow of $8.8 million in the year-ago quarter.
Business Outlook
The Company has enjoyed the recovery that began in 2009 and continued through the first quarter of 2010. Looking ahead, the Company expects to report continued year-over-year growth in revenues and earnings in our second quarter ended June 30, 2010. The Company is looking forward to meeting with investors at Global Hunter's 2010 China Conference in San Francisco on Tuesday, July 13, and in one-on-one meetings before and after the conference.
About Asia Pacific Wire & Cable Corporation
Asia Pacific Wire & Cable Corporation is a leading manufacturer and distributor of telecommunications (copper and fiber-optic) and power cable and enameled-wire products in the Asia-Pacific region, primarily in China, Thailand, Singapore and Australia. 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, and 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 ( http://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.
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