Asia Pacific Wire & Cable Corporation Ltd. Reports Third Quarter 2018 Financial Results
December 21 2018 - 8:00AM
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 third quarter ended September 30, 2018. 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 2018 Financial
Results (Ended September 30, 2018) |
|
|
First Nine Months 2018 |
First Nine Months 2017 |
CHANGE |
Revenues |
$ 318.5
million |
|
$ 284.3
million |
|
12.0% |
|
Gross Profit |
$ 27.0
million |
|
$ 22.0
million |
|
22.7% |
|
Net Income |
$ 2.6 million |
|
$ 5.6 million |
|
(53.8)% |
|
EPS(1) |
$ 0.19 |
$ 0.36 |
(47.2)% |
|
|
(1)The
calculation of the earnings per share is based on 13,819,669 and
13,819,669 basic and diluted weighted common shares issued and
outstanding for the nine months ended September 30, 2018 and 2017,
respectively. |
First Nine Months 2018 Results
Gross revenues for the nine months ended September 30, 2018 were
$318.5 million, an increase of 12.0% from $284.3 million in the
prior year. The increase was primarily attributable to revenue
increases in the Company’s Thailand and North Asia regions,
partially offset by a revenue decrease in the Company’s Rest of
World region. Revenue in the Company’s Thailand region increased
24.5%, with net revenue increasing by 17.1% in local currency and
by 24.5% in US Dollars, the former primarily due to the rise in the
copper price and the growth in deliveries of aluminum products in
the nine months ended September 30, 2018, and the latter because of
the appreciation in the Thai Baht by 6.0% compared to the
comparable period in 2017. Revenues in the Company's North Asia
region increased by 11.5%, primarily due to the increase in the
copper price in 2018 and because of the resumption of some of
Shanghai Yayang Electric’s (“SYE”) operations that were subject to
partial temporary shutdown in 2017 for upgrading to meet
environmental regulations. Revenues in the Company's Rest of World
(“ROW”) region decreased by 4.6%. Australia Pacific Electric Cable
Pty. Ltd.’s (“APEC”) revenue increased by 19.0% in local currency
due to an increase in sales, but the revenue growth was offset by a
16.0% decrease in Sigma Cable Company (Private) Limited’s ("SCC")
revenue in local currency due to intensified market competition.
Appreciation of the local currency was another reason for the
revenue growth in USD, against which the Singapore dollar
appreciated by 3.4% compared to the same period in 2017. 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.
Gross profit for the nine months ended September 30, 2018,
increased by 22.7% to $27.0 million from $22.0 million in the same
period last year. Gross margin increased by 9.5% from 7.75% in 2017
to 8.49% this year, primarily due to the gain on sales of scrap in
2018 in the North Asia region. This increase was partially offset
by a decrease in the ROW region due to intensified competition and
an increase in the copper price, which eroded the margin of SCC as
more than 60% of its sales were booked for mid- and long-term
projects with predetermined selling prices.
Selling, general and administrative expenses for the first nine
months of 2018 were $19.3 million, compared to $18.3 million
reported for the comparable period in 2017. Operating profit was
$8.4 million, compared to operating income of $10.1 million in the
same period of 2017.
Net profit attributable to APWC shareholders was $2.6 million
for the nine months ended September 30, 2018, compared to net
income of $5.6 million for the first nine months of 2017. Earnings
per share was $0.19 in the first nine months of 2018, while
earnings per share was $0.36 for the comparable period in 2017. The
decrease in net profit was primarily attributable to a decrease in
other operating profit, which resulted from the sale of land use
rights and buildings of the Company’s Ningbo subsidiary in 2017.
The weighted average number of shares issued and outstanding was
13.8 million for each of the nine months ended September 30, 2018
and 2017.
Financial Condition
APWC reported $48.6 million in cash and cash equivalents as of
September 30, 2018, compared to cash and cash equivalents of $46.1
million as of December 31, 2017.
Current assets totaled $267.0 million as of September 30, 2018,
compared to $283.0 million as of December 31, 2017. Working capital
was $183.2 million as of September 30, 2018. Short-term bank loans
were $31.0 million at September 30, 2018, a decrease from $41.2
million at the end of 2017. The Company had no long-term debt
outstanding at September 30, 2018. Shareholder's equity
attributable to APWC was $151.7 million as of September 30, 2018,
compared to $153.3 million as of December 31, 2017.
APWC reported $19.1 million in cash inflows from operations
during the nine months ended September 30, 2018, compared to cash
outflows from operations of $19.0 million in the corresponding
period in 2017. The increase in cash inflows was the result of a
decrease in trade receivable. The Company used $2.9 million from
investing activities during the nine months ended September 30,
2018, compared to $4.8 million cash generated in the same period of
2017. The difference was primarily attributable to the disposal of
land use rights and buildings associated with its facilities at
Ningbo, China in 2017. APWC reported $12.4 million in outflows from
financing activities during the nine months ended September 30,
2018, compared to $14.3 million generated in the same period of
2017. The cash outflows were mainly due to the increase 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.
|
|
|
Contact:Investor Relations Contact: Asia Alpha
Investor Relations Lisa A. GrayPartner & Senior Account Manager
Phone: +1-212-989-9899 Email: lisa@asiaalphair.comWeb:
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 September 30, |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Sales of
goods / services |
$ |
318,474 |
|
|
$ |
284,315 |
|
Cost of
sales |
|
(291,436 |
) |
|
|
(262,282 |
) |
Gross
profit |
|
27,038 |
|
|
|
22,033 |
|
|
|
|
|
|
|
Other
operating income |
|
690 |
|
|
|
6,673 |
|
Selling,
general and administrative expenses |
|
(19,253 |
) |
|
|
(18,293 |
) |
Other
operating expenses |
|
(122 |
) |
|
|
(307 |
) |
Operating
profit |
|
8,353 |
|
|
|
10,106 |
|
|
|
|
|
|
|
Finance
costs |
|
(1,069 |
) |
|
|
(832 |
) |
Finance
income |
|
351 |
|
|
|
770 |
|
Share of
loss of associates |
|
(2 |
) |
|
|
(2 |
) |
Exchange
gain |
|
1,660 |
|
|
|
2,120 |
|
Other
income |
|
161 |
|
|
|
- |
|
Other
expense |
|
(106 |
) |
|
|
(272 |
) |
Profit
before tax |
|
9,348 |
|
|
|
11,890 |
|
Income tax
expense |
|
(3,190 |
) |
|
|
(3,449 |
) |
Profit for
the period |
$ |
6,158 |
|
|
$ |
8,441 |
|
|
|
|
|
|
|
Attributable to: |
|
|
|
Equity
holders of the parent |
$ |
2,576 |
|
|
$ |
5,570 |
|
Non-controlling interests |
$ |
3,582 |
|
|
$ |
2,871 |
|
Basic and
diluted earnings per share |
$ |
0.19 |
|
|
$ |
0.36 |
|
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 September 30, |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
(Unaudited) |
|
(Unaudited) |
Profit for
the period |
$ |
6,158 |
|
|
$ |
8,441 |
|
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
$0 |
|
(3,894 |
) |
|
|
12,659 |
|
|
|
Net loss on
available-for-sale financial assets |
|
- |
|
|
|
(139 |
) |
|
|
Income tax effect |
|
- |
|
|
|
28 |
|
|
Other
comprehensive income from available-for-sale financial assets, net
of tax |
|
- |
|
|
|
(111 |
) |
Other
comprehensive income not to be reclassified to profit or loss in
subsequent periods: |
|
|
|
|
|
Changes in the fair
value of equity investments at fair value through other
comprehensive income |
|
449 |
|
|
|
- |
|
|
|
Income tax effect |
|
(90 |
) |
|
|
- |
|
|
Other
comprehensive income from equity investments measured at fair
value, net of tax |
|
359 |
|
|
|
- |
|
|
|
Re-measuring losses on
defined benefit plans |
|
(13 |
) |
|
|
(80 |
) |
|
|
Income tax effect |
|
3 |
|
|
|
16 |
|
|
Defined
benefit pension plan, net of tax |
|
(10 |
) |
|
|
(64 |
) |
Other
comprehensive (loss)/income for the period, net of tax |
|
(3,545 |
) |
|
|
12,484 |
|
Total
comprehensive income for the period, net of tax |
$ |
2,613 |
|
|
$ |
20,925 |
|
Attributable to: |
|
|
|
Equity
holders of the parent |
$ |
2,126 |
|
|
$ |
14,078 |
|
Non-controlling interests |
$ |
487 |
|
|
$ |
6,847 |
|
|
|
|
$ |
2,613 |
|
|
$ |
20,925 |
|
|
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND
SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(In thousands of US Dollars, except share data) |
|
|
|
|
|
As of September 30, 2018
(Unaudited) |
|
As of December 31, 2017 (Audited) |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash
equivalents |
$ |
48,638 |
|
$ |
46,093 |
Trade receivables |
|
84,570 |
|
|
112,403 |
Other receivables |
|
12,332 |
|
|
9,509 |
Contract assets -
current |
|
1,004 |
|
|
- |
Due from related
parties |
|
11,844 |
|
|
13,354 |
Inventories |
|
102,318 |
|
|
97,205 |
Gross amounts due from
customers for contract work-in-progress |
|
- |
|
|
162 |
Prepayments |
|
1,056 |
|
|
1,244 |
Other current
assets |
|
5,199 |
|
|
3,057 |
|
|
266,961 |
|
|
283,027 |
Non-current assets |
|
|
|
Other non-current
financial assets – available for sale |
|
- |
|
|
2,747 |
Other non-current
financial assets at fair value through other comprehensive
income |
|
3,201 |
|
|
- |
Property, plant and
equipment |
|
41,252 |
|
|
42,326 |
Prepaid land lease
payments |
|
986 |
|
|
1,067 |
Investment
properties |
|
729 |
|
|
763 |
Intangible assets |
|
116 |
|
|
138 |
Investments in
associates |
|
866 |
|
|
861 |
Other non-current
assets |
|
1,502 |
|
|
892 |
Deferred tax
assets |
|
3,395 |
|
|
3,022 |
|
|
52,047 |
|
|
51,816 |
Total assets |
$ |
319,008 |
|
$ |
334,843 |
|
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND
SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(In thousands of US Dollars, except share data) |
|
|
|
|
|
As of September 30, 2018
(Unaudited) |
|
As of December 31, 2017 (Audited) |
|
|
|
|
Liabilities |
|
|
|
Current
liabilities: |
|
|
|
Interest-bearing loans
and borrowings |
$ |
30,981 |
|
$ |
41,151 |
Trade and other
payables |
|
27,775 |
|
|
28,850 |
Contract liabilities -
current |
|
31 |
|
|
- |
Due to related
parties |
|
2,991 |
|
|
5,805 |
Due to immediate
holding company |
|
1,537 |
|
|
1,537 |
Other current financial
liabilities at fair value through profit or loss |
|
245 |
|
|
139 |
Accruals |
|
13,328 |
|
|
15,246 |
Current tax
liabilities |
|
3,563 |
|
|
4,536 |
Employee benefit
liabilities |
|
439 |
|
|
877 |
Financial lease
liabilities |
|
48 |
|
|
36 |
Provisions for employee
benefit |
|
455 |
|
|
456 |
Onerous contracts
provisions |
|
75 |
|
|
555 |
Dividend payable |
|
566 |
|
|
524 |
Other current
liabilities |
|
1,771 |
|
|
1,563 |
|
|
83,805 |
|
|
101,275 |
|
|
|
|
Non-current
liabilities |
|
|
|
Employee benefit
liabilities |
|
8,348 |
|
|
7,416 |
Financial lease
liabilities |
|
57 |
|
|
42 |
Provisions for employee
benefit |
|
109 |
|
|
130 |
Deferred tax
liabilities |
|
3,524 |
|
|
3,154 |
|
|
12,038 |
|
|
10,742 |
Total liabilities |
$ |
95,843 |
|
$ |
112,017 |
|
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND
SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(In thousands of US Dollars, except share data) |
|
|
|
|
|
As of September 30, 2018
(Unaudited) |
|
As of December 31, 2017 (Audited) |
|
|
|
|
Equity |
|
|
|
Issued capital |
$ |
138 |
|
|
$ |
138 |
|
Additional paid-in
capital |
|
110,376 |
|
|
|
110,376 |
|
Treasury shares |
|
(38 |
) |
|
|
(38 |
) |
Retained earnings |
|
55,770 |
|
|
|
53,350 |
|
Other components of
equity |
|
(14,530 |
) |
|
|
(10,498 |
) |
Equity attributable to
equity holders of the parent |
|
151,716 |
|
|
|
153,328 |
|
Non-controlling
interests |
|
71,449 |
|
|
|
69,498 |
|
Total equity |
$ |
223,165 |
|
|
$ |
222,826 |
|
Total liabilities and
equity |
$ |
319,008 |
|
|
$ |
334,843 |
|
|
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND
SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited) |
(In thousands of U.S. Dollars) |
|
|
|
|
|
For the nine months |
|
ended September 30, |
|
|
2018 |
|
|
|
2017 |
|
|
(Unaudited) |
|
(Unaudited) |
Net cash provided
by/(used in) operating activities |
$ |
19,088 |
|
|
$ |
(18,998 |
) |
Net cash (used
in)/provided by investing activities |
|
(2,923 |
) |
|
|
4,750 |
|
Net cash (used
in)/provided by financing activities |
|
(12,366 |
) |
|
|
14,263 |
|
Effect of exchange rate
on cash and cash equivalents |
|
(1,255 |
) |
|
|
3,241 |
|
Net increase in cash
and cash equivalents |
|
2,544 |
|
|
|
3,256 |
|
Cash and cash
equivalents at beginning of period |
|
46,094 |
|
|
|
48,231 |
|
Cash and cash
equivalents at end of period |
$ |
48,638 |
|
|
$ |
51,487 |
|
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