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TAIPEI, Taiwan, June 26, 2019 (GLOBE NEWSWIRE) -- Asia Pacific Wire & Cable Corporation Limited (NASDAQ: 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, 2019. 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 Three Months 2019 Results Net revenues for the three months ended March 31, 2019, were $81.6 million, a decrease of 23.1% from $106.1 million in the prior year. The decrease was primarily attributable to revenue decreases in the Company’s Thailand, North Asia and Rest of World (ROW) regions. Net revenue in the Company’s Thailand region decreased by 9.8%, primarily due to less projects from the public sector. Revenues in the Company's North Asia region decreased by 29.9%, primarily due to negative impact of the trade war between the United States and China. Revenues in the Company's Rest of World ("ROW") region decreased by 23.1%, primarily due to intense 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.
Operating profit for the three months ended March 31, 2019 decreased by 110.5% to $(0.2) million from $1.8 million in the same period last year. Operating margin decreased by 113.6%, declining from 1.7% in 2018 to (0.2)% in 2019. In the Thailand region, operating margin declined from 3.6% to 1.4%, which was attributable primarily to decreases in sales of higher margin products and increases in the advertising & sales promotion expenditures in an effort to expand the market. In the North Asia region, operating margin decreased slightly, primarily due to a decrease in revenue. The ROW region’s operating margin decrease in 2019 was primarily attributable to a decrease in revenue in the region.
Selling, general and administrative expenses for the first quarter of 2019 were $6.4 million, compared to $6.4 million reported in the first quarter of 2018. Net loss attributable to APWC shareholders was $(0.67) million for the first quarter of 2019, compared to net income of $0.09 million in the same period in 2018. The decrease in net income was primarily due to a decrease in revenue. The weighted average number of shares issued and outstanding was 13.82 million for the three months ended March 31, 2019 and 2018.
Financial Condition APWC reported $64.0 million in cash and cash equivalents as of March 31, 2019, compared to cash and cash equivalents of $60.8 million as of December 31, 2018.
Current assets totaled $255.1 million as of March 31, 2019, compared to $254.1 million as of December 31, 2018. Working capital was $184.1 million as of March 31, 2019. Short term bank loans were $22.5 million at March 31, 2019, a decrease from $24.8 million at the end of 2018. The Company had no long-term debt outstanding at March 31, 2019. Shareholder's equity attributable to APWC was $151.7 million as of March 31, 2019, compared to $150.0 million as of December 31, 2018.
APWC reported $6.7 million cash generated from operations during the three months ended March 31, 2019, compared to cash generated from operations of $14.3 million in the corresponding period in 2018. The decrease in cash generated from operations in 2019 was primarily attributable to increase in inventory and a decrease in net profit. The Company reported $1.4 million in cash outflows from investing activities during the three months ended March 31, 2019, compared to $1.0 million in cash outflows in the same period of 2018. The cash used more for investing activities in the first quarter of 2019 was attributable primarily to the increase in purchases of property, plant and equipment in the Thailand region. APWC reported $2.9 million in cash outflows from financing activities during the first quarter of 2019, compared to $7.9 million in cash outflows from financing activities in the same period of 2018. The decrease in cash outflows in 2019 was primarily attributable to a decrease in the repayment of bank loans.
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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| 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, | ||
| 2019 | 2018 | |
| (Unaudited) | (Unaudited) | |
| Revenue | $81,601 | $106,076 |
| Cost of sales | (75,641) | (98,141) |
| Gross profit | 5,960 | 7,935 |
| Other operating income | 397 | 421 |
| Selling, general and administrative expenses | (6,387) | (6,449) |
| Other operating expenses | (155) | (141) |
| Operating (loss)/profit | (185) | 1,766 |
| Finance costs | (286) | (333) |
| Finance income | 139 | 89 |
| Share of loss of associates | (1) | - |
| Exchange (loss) gain | (165) | 345 |
| Other income | 546 | 134 |
| Other expense | - | (1) |
| Profit before tax | 48 | 2,000 |
| Income tax expense | (430) | (906) |
| (Loss)/Profit for the period | $(382) | $1,094 |
| Attributable to: | ||
| Equity holders of the parent | $(667) | $86 |
| Non-controlling interests | $285 | $1,008 |
| Basic and diluted earnings per share | $(0.05) | $0.01 |
| 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, | |||
| 2019 | 2018 | ||
| (Unaudited) | (Unaudited) | ||
| (Loss)/Profit for the period | $(382) | $1,094 | |
| 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 nil | 3,615 | 7,580 | |
| 3,615 | 7,580 | ||
| Other comprehensive income not to be reclassified to profit or loss in subsequent periods: | |||
| Changes in the fair value of equity instruments measured at FVOCI | (123) | 212 | |
| Income tax effect | 25 | (42) | |
| (98) | 170 | ||
| Re-measuring losses on defined benefit plans | (41) | (84) | |
| Income tax effect | 8 | 17 | |
| (33) | (67) | ||
| Other comprehensive income for the year , net of tax | 3,484 | 7,683 | |
| Total comprehensive income for the period, net of tax | 3,102 | 8,777 | |
| Attributable to: | |||
| Equity holders of the parent | 1,923 | 4,742 | |
| Non-controlling interests | 1,179 | 4,035 | |
| $3,102 | $8,777 | ||
| ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (In thousands of US Dollars, except share data) | ||
| As of March 31, 2019 (Unaudited) |
As of December 31, 2018 (Audited) |
|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $63,998 | $60,778 |
| Financial assets at fair value through profit or loss | 63 | - |
| Trade receivables | 72,080 | 79,617 |
| Other receivables | 8,792 | 12,422 |
| Contract assets | 1,332 | 1,460 |
| Due from related parties | 12,346 | 12,061 |
| Inventories | 92,472 | 83,925 |
| Prepayments | 1,175 | 1,140 |
| Other current assets | 2,841 | 2,745 |
| 255,099 | 254,148 | |
| Non-current assets | ||
| Financial assets at fair value through other comprehensive income | 2,222 | 2,332 |
| Property, plant and equipment | 41,969 | 41,418 |
| Right of use assets | 3,680 | - |
| Prepaid land lease payments | - | 978 |
| Investment properties | 725 | 720 |
| Intangible assets | 155 | 157 |
| Investments in associates accounted from using equity method | 879 | 864 |
| Deferred tax assets | 4,093 | 3,919 |
| Other non-current assets | 1,733 | 1,262 |
| 55,456 | 51,650 | |
| Total assets | $310,555 | $305,798 |
| ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (In thousands of US Dollars, except share data) | ||
| As of March 31, 2019 (Unaudited) |
As of December 31, 2018 (Audited) |
|
| Liabilities | ||
| Current liabilities | ||
| Interest-bearing loans and borrowings | $22,492 | $24,814 |
| Trade and other payables | 23,258 | 21,127 |
| Due to related parties | 2,652 | 2,997 |
| Financial liabilities at fair value through profit or loss | - | 142 |
| Accruals | 13,349 | 14,197 |
| Current tax liabilities | 4,080 | 3,863 |
| Employee benefit liabilities | 1,543 | 1,282 |
| Financial lease liabilities | 358 | 44 |
| Other current liabilities | 3,218 | 3,272 |
| 70,950 | 71,738 | |
| Non-current liabilities | ||
| Employee benefit liabilities | 8,370 | 8,273 |
| Financial lease liabilities | 2,308 | 46 |
| Deferred tax liabilities | 4,009 | 3,925 |
| 14,687 | 12,244 | |
| Total liabilities | 85,637 | 83,982 |
| Equity | ||
| Issued capital | 138 | 138 |
| Additional paid-in capital | 110,376 | 110,376 |
| Treasury shares | (38) | (38) |
| Retained earnings | 54,349 | 55,016 |
| Other components of equity | (13,159) | (15,464) |
| Equity attributable to equity holders of the parent | 151,666 | 150,028 |
| Non-controlling interests | 73,252 | 71,788 |
| Total equity | $224,918 | $221,816 |
| Total liabilities and equity | $310,555 | $305,798 |
| 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, | ||
| 2019 | 2018 | |
| (Unaudited) | (Unaudited) | |
| Net cash provided by operating activities | $6,732 | $14,349 |
| Net cash used in investing activities | (1,367) | (974) |
| Net cash used in financing activities | (2,887) | (7,925) |
| Effect of exchange rate on cash and cash equivalents | 742 | 2,463 |
| Net increase in cash and cash equivalents | 3,220 | 7,913 |
| Cash and cash equivalents at beginning of period | 60,778 | 46,093 |
| Cash and cash equivalents at end of period | $63,998 | $54,006 |