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 that on April 25, 2023,
it filed its annual report on Form 20-F (the "Form 20-F") for the
year ended December 31, 2022 with the U.S. Securities and Exchange
Commission and reported its financial results for the twelve months
ended December 31, 2022. Unless otherwise indicated, all amounts
are reported in U.S. Dollars at the exchange rate prevailing on the
date of the event or result reported.
Full Year
2022 Financial Results (Ended December 31, 2022), and
2021 comparative results |
|
|
Full Year 2022 |
|
Full Year 2021 |
|
CHANGE |
Revenues |
$ |
433.9 |
million |
|
$ |
476.7 |
|
million |
|
(9.0) |
% |
Operating Profit/(Loss) |
$ |
8.1 |
million |
|
$ |
(5.0 |
) |
million |
|
262.2 |
% |
Net Income/(Loss) |
$ |
3.9 |
million |
|
$ |
(2.6 |
) |
million |
|
246.6 |
% |
EPS(1) |
$0.19 |
|
$(0.19) |
|
200.0 |
% |
|
(1)The
calculation of the earnings per share is based on 20,020,364 and
13,819,669 basic and diluted weighted average common shares issued
and outstanding for the twelve months ended December 31, 2022, and
2021, respectively. |
|
Full Year 2022 Results
Revenues for the twelve months ended December 31, 2022 were
$433.9 million, a decrease of 9.0% from $476.7 million for the
twelve months ended December 31, 2021. The decrease was primarily
attributable to revenue decreases across the Company’s Thailand and
North Asia regions, partially offset by an increase in revenue in
the Company’s Rest of the World (“ROW”) region. Net revenue in the
Company’s Thailand region decreased by $25.9 million, or 13.1%,
from $197.8 million in 2021 to $171.8 million in 2022. The decrease
was attributable primarily to the decrease in sales to the public
sector in 2022 and the depreciation of the Thai Baht, which
depreciated by 9.7% compared to 2021. Revenues in the Company's
North Asia region decreased by $29.7 million, or 27.8%, from $107
million in 2021 to $77.3 million in 2022. The decrease was
attributable to decreased sales volume primarily due to the impact
of the conflict in Ukraine. The price of raw materials, crude oil,
and natural gas rose, which squeezed the export market for home
appliances and electronic consumer products, and export volume
shrank. Also negatively affecting revenue were China’s COVID
lockdowns, which added to supply chain problems and the
Sino-American trade war that has affected the world economy.
Revenues in the Company's ROW region increased by $12.9 million, or
7.5%, from $171.8 million in 2021 to $184.7 million in 2022 in the
ROW region. Increased product sales were primarily due to orders
released to the market after the Singapore government removed
certain COVID-19 restrictions, partially offset by a decline in the
demand for cables which decreased revenues in Australia. 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 twelve months ended
December 31, 2022 was $8.1 million, an increase from an operating
loss of $5.0 million for the twelve months ended December 31, 2021.
Operating profit margin increased from a loss of 1.0% in 2021 to a
profit of 1.9% in 2022. In the Thailand region, operating profit
margin increased from a 6.8% loss in 2021 to a 1.53% profit in
2022. The operating profit increase was the result of a 13.5% drop
in copper prices compared to the end of 2021. In the North
Asia region, operating profit margin decreased from 4.23% in 2021
to 0.31% in 2022. The decrease resulted from a decrease in sales
volume and the fluctuation of copper prices. The ROW region’s
operating profit margin slightly increased from 3.89% in 2021 to
4.21% in 2022 due to the increased sales volume in Singapore.
Selling, general and administrative expenses for
the twelve months ended December 31, 2022 were $25.0 million,
compared to $26.5 million reported for the twelve months ended
December 31, 2021. Net income attributable to APWC shareholders was
$3.9 million for the full year 2022, compared to a net loss of
$(2.6) million for the full year 2021. The increase in net income
was primarily due to the increase in operating profit. The weighted
average number of shares issued and outstanding was 20.02 million
and 13.82 million for the twelve months ended December 31, 2022 and
2021, respectively.
Financial Condition
APWC reported $54.0 million in cash and cash
equivalents as of December 31, 2022, compared to cash and cash
equivalents of $44.5 million as of December 31, 2021.
Current assets totaled $299.5 million as of
December 31, 2022, compared to $312.0 million as of December 31,
2021. Working capital was $165.9 million as of December 31, 2022,
compared to $149.8 million as of December 31, 2021. Short term bank
loans were $45.6 million at December 31, 2022, a decrease of 26.6%
from $62.1 million at December 31, 2021. The Company had $12.2
million in long-term debt outstanding at December 31, 2022,
compared to $3.3 million in long-term debt outstanding at December
31, 2021. Shareholder's equity attributable to APWC was $151.6
million as of December 31, 2022, compared to $147.5 million as of
December 31, 2021.
APWC reported $6.6 million in cash provided by
operating activities during the twelve months ended December 31,
2022, compared to cash used in operating activities of $41.6
million in the corresponding period in 2021. The increase in cash
generated from operations in 2022 was primarily attributable to a
decrease in inventory and improved profitability. The Company
reported $2.7 million in cash outflows from investing activities
during the twelve months ended December 31, 2021, compared to $6.2
million in cash outflows in the same period of 2021. The decrease
in cash used in investing activities in the full year of 2022 was
attributable primarily to the decrease in purchases of property,
plant, and equipment in 2022 compared with 2021. APWC reported $9.6
million in cash inflows from financing activities during the full
year of 2022, compared to $42.4 million in cash inflows from
financing activities in the same period of 2021. The decrease in
cash inflows from financing activities in 2022 was primarily
attributable to a decrease in borrowings from 2021.
We encourage shareholders to review our Annual
Report for the year ended December 31, 2022, which has been filed
with the Securities and Exchange Commission, and 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
Limited is a holding company incorporated in Bermuda with principal
executive offices in Taiwan that operates its business through
operating subsidiaries. Through its subsidiaries, the Company is
principally engaged in the manufacture and distribution of enameled
wire, power cable, and telecommunications products in Thailand,
Singapore, Australia, the People’s Republic of China, Hong Kong,
and certain other markets in the Asia Pacific region. The Company
also engages in the distribution of certain wire and cable products
manufactured by its controlling shareholder, Pacific Electric Wire
& Cable Co., Ltd., and certain third parties. The Company also
provides project engineering services in the supply, delivery, and
installation of power cable. The Company’s major customers include
appliance component manufacturers, electrical contracting firms,
state-owned entities, and wire and cable dealers and factories.
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
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.
Investor Relations Contact:Skyline Corporate
Communications Group, LLCLisa Gray, Senior Account ManagerOne
Rockefeller Plaza, 11th FloorNew York, NY 10020Office: (646)
893-5835 x1Email: lisa@skylineccg.com
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