| TAIPEI, Taiwan, Dec. 18, 2017 (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 nine months ended September 30, 2017. Unless otherwise indicated, all data are reported in US dollars at the exchange rate prevailing on the date of the event or result reported.
First Nine Months 2017 Results Gross revenues for the nine months ended September 30, 2017, were $284.3 million, an increase of 3.5% from $274.6 million in the prior year. The increase was primarily attributable to a 16.2% revenue increase in the Thailand region due to higher demand in the public sectors and increased export sales. Revenues in the Company’s North Asia region increased by 7.8%, primarily due to the increase in the price of copper. Revenues in the Company’s Rest of World region dropped by 12.3% due to increased market competition. The Company’s North Asia region includes China and Hong Kong; the Thailand region contains the operations and sales inside Thailand; the 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 gross profit for the nine months ended September 30, 2017, decreased by 0.2% to $22.0 million from $22.1 million in the same period last year. Gross margin decreased by 3.6% from 8.0% in 2016 to 7.7% this year. In the Thailand region, gross margin grew following an increase in our product sales to high margin government projects. In the North Asia region, gross margin dropped due to an increase in the copper price and some of our equipment and machinery were shut down temporarily to meet the environmental regulations, which caused an increase in costs. The ROW’s gross margin decreased slightly.
Selling, general and administrative expenses for the nine months ended September 30, 2017 were $18.3 million, compared to $18.3 million reported in 2016. Operating income was $10.1 million, compared to operating income of $8.1 million in 2016.
Net income attributable to APWC shareholders was $5.6 million for the nine months ended September 30, 2017, compared to net income of $5.1 million for the first nine months of 2016. Net income per share was $0.40 in the first nine months of 2017, while net income per share was $0.37 for the comparable period in 2016. The weighted average number of shares issued and outstanding was 13.8 million for each of the nine months ended September 30, 2017 and 2016.
Financial Condition
APWC reported $51.5 million in cash and cash equivalents as of September 30, 2017, compared to cash and cash equivalents of $48.2 million as of December 31, 2016.
Current assets totaled $284.6 million as of September 30, 2017, compared to $244.6 million as of December 31, 2016. Working capital was $172.8 million as of September 30, 2017. Short term bank loans were $46.5 million at September 30, 2017, an increase from $28.2 million at the end of 2016. The Company had no long-term debt outstanding at September 30, 2017. Shareholder's equity attributable to APWC was $148.6 million as of September 30, 2017, compared to $136.0 million as of December 31, 2016.
APWC reported $19.0 million in cash outflows from operations during the nine months ended September 30, 2017, compared to cash outflows from operations of $7.2 million in the corresponding period in 2016. Cash used in operations was mainly caused by an increase of inventory and trade receivable. The Company generated $4.8 million from investing activities during the nine months ended September 30, 2017, compared to $0.5 million cash generated in the same period of 2016. The cash generated was attributable, in part, to the disposal of land use rights and buildings associated with its facilities at Ninbgo, China. APWC generated $14.3 million from financing activities during the nine months ended September 30, 2017, compared to $3.1 million in outflows in the same period of 2016. The cash generated was mainly attributable to the increase in bank loans.
Recent Developments
As previously announced, on November 30, 2017, the Company paid a dividend of $0.10 per common share to all shareholders of record as of the close of business on October 31, 2017. This was the first dividend paid by APWC, and the Company is pleased to have successfully implemented its dividend payment program as part of its continuous efforts to provide increased value to shareholders.
We encourage shareholders to visit the Company’s website for further information (www.apwcc.com). Information on the Company's website or any other website does not constitute a portion of this release.
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.
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", “anticipates”, "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.
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