News

Asia Pacific Wire & Cable Corporation Ltd. Reports Third Quarter 2020 Financial Results

Jan 04, 2021

TAIPEI, Taiwan, Jan. 04, 2021 (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 nine months ended September 30, 2020. Unless otherwise indicated, all data are reported in U.S. Dollars at the exchange rate prevailing on the date of the event or result reported.

 

First Nine Months 2020 Financial Results (Ended September 30, 2020), and 2019 comparative results

First 9 Months 2020

First 9 Months 2019

CHANGE

Revenues

$207.2 million

$249.7 million

(17.0)%

Operating Profit/(Loss)

$5.9 million

$(3.1) million

294.5%

Net Income/(Loss)

$0.4 million

$(2.0) million

118.1%

EPS(1)

$0.03

$(0.14)

121.4%

(1) The calculation of the earnings per share is based on 13,819,669 and 13,819,669 basic and diluted weighted average common shares issued and outstanding for the nine months ended September 30, 2020 and 2019, respectively.

 

 

First Nine Months 2020 Results
 

Revenues for the nine months ended September 30, 2020, were $207.2 million, a decrease of 17.0% from $249.7 million for the nine months ended September 30, 2019. 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 21.8%, primarily due to decreased sales of low margin products. Revenues in the Company's North Asia region decreased by 16.0%, primarily due to the cessation of manufacturing operations of Shanghai Asia Pacific Electric Co., Ltd. (“Yayang”) in October 2019. Revenues in the Company's Rest of World ("ROW") region decreased by 8.7%, primarily due to Singapore not reaching full resumption of work for reasons associated with COVID-19. The Company's North Asia region includes China and Hong Kong; the Thailand region consists of operations and sales within 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 nine months ended September 30, 2020 increased to $5.9 million from a loss of $(3.1) million for the nine months ended September 30, 2019. Operating profit margin increased from a loss of (1.2)% in 2019 to a profit of 2.9% in 2020. In the Thailand region, operating profit margin increased from a loss of (0.4)% to a profit of 7.6%, which was attributable primarily to the increase in sales of higher profit margin products. In the North Asia region, operating profit margin increased from 0.9% in 2019 to 3.8% for the same period in 2020, primarily attributable to a decrease in lower margin products and severance expenses. The ROW region’s operating loss margin decreased from (2.8)% in 2019 to (2.3)% in 2020, primarily attributable to abating competition for reasons associated with COVID-19.

 

Selling, general and administrative expenses for the nine months ended September 30, 2020 were $18.2 million, compared to $19.0 million reported for the nine months ended September 30, 2019. Net income attributable to APWC shareholders was $0.4 million for the first nine months of 2020, compared to a net loss of $(2.0) million for the same period in 2019. The increase in net income was primarily due to an increase in gross profit. The weighted average number of shares issued and outstanding was 13.82 million for the nine months ended September 30, 2020 and 2019.

 

 

Financial Condition
 

APWC reported $52.9 million in cash and cash equivalents as of June 30, 2020, compared to cash and cash equivalents of $53.7 million as of December 31, 2019.

 

Current assets totaled $237.2 million as of September 30, 2020, compared to $239.5 million as of December 31, 2019. Working capital was $173.2 million as of September 30, 2020. Short term bank loans were $12.9 million at September 30, 2020, an increase from $11.4 million at the end of 2019. The Company had $3.4 million in long-term debt outstanding at September 30, 2020, compared to $0.0 in long-term debt as of December 31, 2019. Shareholder's equity attributable to APWC was $150.3 million as of September 30, 2020, compared to $153.9 million as of December 31, 2019.

 

APWC reported $6.3 million in cash generated from operations during the nine months ended September 30, 2020, compared to cash used in operations of $2.0 million in the corresponding period in 2019. The increase in cash generated from operations in 2020 was primarily attributable to improved product margin. The Company reported $19.3 million in cash outflows from investing activities during the nine months ended September 30, 2020, compared to $2.9 million in cash outflows in the same period of 2019. The increase in cash used for investing activities in the first nine months of 2020 was attributable primarily to the increase in purchases of property, plant and equipment. APWC reported $6.0. million in cash inflows from financing activities during the first nine months of 2020, compared to $6.5 million in cash outflows from financing activities in the same period of 2019. The cash inflows in 2020 was primarily attributable to an increase in borrowing.

 

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 manufactured by its principal shareholder, Pacific Electric Wire & Cable Company, a Taiwanese company. 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", “estimates”, “intends”, “plans” 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 believed, anticipated, expected, estimated, intended or planned. 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.

 

 

 

 

Contact:

Investor Relations Contact:
Skyline Corporate Communications Group, LLC
Lisa Gray, Senior Account Manager
One Rockefeller Plaza, 11th Floor
New York, NY 10020
Office:(646) 893-5835
Email:lisa@skylineccg.com
Web:   https://asiaalphair.com/

 

 

 

 

 

 

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

(Unaudited)

(Amounts in thousands of US Dollars, except share data)

For the nine months

ended Sept 30,

2020

2019

(Unaudited)

(Unaudited)

Revenue

$207,204

$249,659

Cost of sales

(183,197)

(234,585)

Gross profit

24,007

15,074

Other operating income

450

950

Selling, general and administrative expenses

(18,176)

(19,025)

Other operating expenses

(344)

(52)

Operating profit / (loss)

5,937

(3,053)

Finance costs

(563)

(821)

Finance income

228

393

Share of loss of associates

(1)

(2)

Exchange loss

(637)

1,543

Other income

919

644

Other expense

-

(1)

Profit before tax

5,883

(1,297)

Income tax expense

(2,647)

(964)

Profit/(Loss) for the period

$3,236

$(2,261)

Attributable to:

Equity holders of the parent

$357

$(1,974)

Non-controlling interests

$2,879

$(287)

Basic and diluted profit / (loss) per share

$0.03

$(0.14)

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 nine months

ended Sept 30,

2020

2019

(Unaudited)

(Unaudited)

Profit/(Loss) for the period

$3,236

$(2,261)

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

(7,268)

4,721

(7,268)

4,721

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

(1,565)

425

Income tax effect

313

(85)

(1,252)

340

Re-measuring losses on defined benefit plans

227

(135)

Income tax effect

(45)

27

182

(108)

Other comprehensive (loss) / income for the
year , net of tax

(8,338)

4,953

Total comprehensive (loss) / income for the
period, net of tax

(5,102)

2,692

Attributable to:

Equity holders of the parent

(3,559)

(791)

Non-controlling interests

(1,543)

3,483

$(5,102)

$2,692

 

 

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands of US Dollars, except share data)

As of
Sept 30, 2020
(Unaudited)

As of
December 31, 2019
(Audited)

Assets

Current assets

Cash and cash equivalents

$44,584

$53,673

Trade receivables

66,626

74,077

Other receivables

9,692

6,868

Contract assets

1,795

4,686

Due from related parties

10,471

11,566

Inventories

98,214

85,187

Prepayments

3,861

1,926

Other current assets

1,958

1,521

237,201

239,504

Non-current assets

Financial assets at fair value through
other comprehensive income

2,454

4,062

Property, plant and equipment

47,370

41,747

Right of use assets

3,368

3,735

Prepaid land lease payments

-

-

Investment properties

5,866

730

Intangible assets

187

128

Investments in associates accounted from
using equity method

881

935

Deferred tax assets

4,207

3,939

Other non-current assets

3,966

4,131

68,299

59,407

Total assets

$305,500

$298,911

 

 

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands of US Dollars, except share data)

As of
Sept 30, 2020
(Unaudited)

As of
December 31, 2019
(Audited)

Liabilities

Current liabilities

Interest-bearing loans and borrowings

$12,872

11,356

Trade and other payables

18,737

16,879

Due to related parties

10,731

3,284

Financial liabilities at fair value through profit or loss

-

3

Accruals

12,458

14,437

Current tax liabilities

3,330

2,872

Employee benefit liabilities

2,101

1,888

Financial lease liabilities

564

574

Other current liabilities

3,196

2,356

63,989

53,649

Non-current liabilities

Interest-bearing loans and borrowings

3,400

-

Employee benefit liabilities

9,943

10,434

Financial lease liabilities

1,825

2,254

Deferred tax liabilities

4,217

4,139

19,385

16,827

Total liabilities

83,374

70,476

Equity

Issued capital

138

138

Additional paid-in capital

110,416

110,416

Treasury shares

(38)

(38)

Retained earnings

53,741

53,384

Other components of equity

(13,962)

(10,046)

Equity attributable to equity holders of the parent

150,295

153,854

Non-controlling interests

71,831

74,581

Total equity

$222,126

228,435

Total liabilities and equity

$305,500

298,911

 

 

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands of U.S. Dollars)

For the years

ended Sept 30,

2020

2019

(Unaudited)

(Unaudited)

Net cash provided by / (used in) operating activities

$6,258

$(2,025)

Net cash used in investing activities

(19,335)

(2,945)

Net cash (used in) financing activities

5,973

(6,476)

Effect of exchange rate on cash and cash equivalents

(1,985)

1,414

Net decrease in cash and cash equivalents

(9,089)

(10,032)

Cash and cash equivalents at beginning of period

53,673

60,778

Cash and cash equivalents at end of period

$44,584

$50,746

 

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