Asia Pacific Wire & Cable Corporation Ltd. Reports Third Quarter 2020 Financial Results
January 04 2021 - 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 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 $44.6 million in cash and cash equivalents as of
September 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, LLCLisa
Gray, Senior Account
ManagerOne Rockefeller Plaza, 11th FloorNew York, NY 10020Office: (646) 893-5835Email: lisa@skylineccg.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 ofSept 30,
2020(Unaudited) |
|
As ofDecember 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 ofSept 30,
2020(Unaudited) |
|
As ofDecember 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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