Asia Pacific Wire & Cable Corporation Reports 2018 Financial Results
April 30 2019 - 7:30AM
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 twelve months ended December 31, 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.
Full Year 2018 Financial Results (Ended
December 31, 2018), and 2017 comparative
results |
|
|
FY 2018 |
FY 2017 |
CHANGE |
Revenues |
$ |
425.9 million |
|
|
$ |
425.2 million |
|
|
0.2 |
|
% |
Operating
Profit/(Loss) |
$ |
8.7
million |
|
|
$ |
16.6
million |
|
|
(47.7 |
) |
% |
Net Income/(Loss) |
$ |
2.9
million |
|
|
$ |
8.7
million |
|
|
(66.4 |
) |
% |
EPS (1) |
$ |
0.21 |
|
|
$ |
0.63 |
|
|
(66.7 |
) |
% |
|
(1)
Earnings per share are based on 13.82 million shares issued and
outstanding in each of FY 2018 and FY 2017. |
Full Year 2018 Results Revenues for the
twelve months ended December 31, 2018, were $425.9 million, an
increase of 0.2%, from $425.2 million in the prior year. The
increase was primarily attributable to both a 3.4% revenue increase
in the Thailand region due to the appreciation of the Baht against
the US dollar and also a 2.1% revenue increase in the North Asia
region due to an increase in copper price. Revenues in the
Company’s ROW region decreased by 7.1%, primarily due to pressures
on pricing and sales volume caused by more intense competition from
the products imported from China. The Company’s North Asia
region includes China and Hong Kong; the Thailand region contains
the operations and sales inside Thailand and Thai exports; 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, 2018 decreased by 47.6% to $8.7 million from $16.6
million in the same period last year. Operating margin
decreased by 47.8%, declining from 3.9% in 2017 to 2.0% in 2018.
In the Thailand region, operating margin declined slightly,
which was attributable primarily to a mix of increased sales of
lower margin products, decreased sales of higher margin products,
and increased payroll expenses. In the North Asia region,
operating margin increased primarily due to decreased costs and
expenses related to the cessation of operations at Ningbo Pacific
Cable Co., Ltd (“Ningbo”). The ROW region’s operating margin
decrease in 2018 was primarily attributable to a decrease in
revenue. Selling, general and administrative expenses for 2018 were
$26.9 million, compared to $27.3 million reported in 2017.
Operating profit was $8.7 million, compared to operating income of
$16.6 million in 2017. Net income attributable to APWC shareholders
was $2.9 million for the full year of 2018, compared to net income
of $8.7 million in 2017, primarily attributable to a decline in
operating income due to the sale of the Ningbo facility, and due to
a decrease in exchange rate gains. Net income per share was
$0.21 in 2018, while a net income of $0.63 per share was reported
for 2017. The weighted average number of shares issued and
outstanding was 13.82 million in each of 2018 and 2017.
Financial Condition
APWC reported $60.8 million in cash and cash equivalents as of
December 31, 2018, compared to cash and cash equivalents of $46.1
million as of December 31, 2017.
Current assets totaled $254.1 million as of December 31, 2018,
compared to $283.0 million as of December 31, 2017. Working capital
was $182.4 million as of December 31, 2018. Short term bank
loans were $24.8 million at December 31, 2018, down from $41.2
million at the end of 2017. The Company had no long-term debt
outstanding at December 31, 2018. Shareholder's equity attributable
to APWC was $150.0 million as of December 31, 2018, compared to
$153.3 million as of December 31, 2017.
APWC generated $40.6 million in cash from operating activities
during the twelve months ended December 31, 2018, compared to $16.4
million in cash used by operating activities during the
corresponding period in 2017. The Company slightly reduced capital
expenditures to $4.4 million in 2018, compared to $4.9 million in
2017.
We encourage shareholders to review our Annual Report for the
year ended December 31, 2018, which is on file with the SEC,
and to visit the Company’s website (www.APWCC.com) for
further information.
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/ |
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