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,
2023. 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 2023 Financial Results (Ended September 30, 2023), and
2022 comparative results |
| |
| |
First 9 Months
2023 |
First 9 Months
2022 |
CHANGE |
|
Revenues |
$ |
294.2 million |
$ |
310.7 million |
(5.3)% |
| Operating Profit |
$ |
0.1 million |
$ |
3.8 million |
(97.1)% |
| Net Income |
$ |
1.1 million |
$ |
0.6 million |
93.8% |
| EPS1 |
$ |
0.05 |
$ |
0.03 |
66.7% |
| |
Revenues for the nine months ended September
30, 2023 were $294.2 million, a decrease of 5.3% from $310.7
million for the nine months ended September 30, 2022. The
decrease was primarily attributable to revenue decreases across the
Company’s Thailand and North Asia regions. Net revenue in the
Company’s Thailand region decreased by 13.7%, the decrease was due
to the slowdown in global economy and the decrease in government
spending on infrastructure. Revenues in the Company's North Asia
region decreased by 25.0%, which was mainly the result of the
ongoing Sino-American trade war. Revenues in the Company's Rest of
World (“ROW”) region increased by 13.2%, which was due to strong
demand in the construction sector in Australia and the completion
of public sector projects in Singapore. The Company's North Asia
region includes China, Hong Kong and Taiwan; 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, 2023 was $0.1 million, a decrease of 97.1% from
operating profit of $3.8 million for the nine months ended
September 30, 2022. Operating profit margin decreased from a
profit of 1.23% in 2022 to a profit of 0.04% in 2023. In the
Thailand region, the operating profit margin decreased from 2.51%
in 2022 to (3.78)% in 2023. The operating profit fell following a
decline in higher-margin Thai government projects and the
fluctuation of copper prices. In the North Asia region, the
operating profit margin increased from 0.69% in 2022 to 3.21% in
2023, resulting from the reversal of the provision for employee
benefits and pensions expenses. The ROW region’s operating profit
margin increased from 1.22% in 2022 to 3.21% in 2023 due to the
increase in sales volumes and gross profit in Australia.
Selling, general and administrative expenses
for the nine months ended September 30, 2023 were $17.9 million,
compared to $18.6 million reported for the nine months ended
September 30, 2022. Net profit attributable to APWC
shareholders was $1.1 million for the nine months ended September
30, 2023, compared to a net profit of $0.6 million for the nine
months ended September 30, 2022. The weighted average number
of shares issued and outstanding was 20.62 million and 19.82
million for the nine months ended September 30, 2023 and 2022,
respectively.
Financial Condition
APWC reported $38.5 million in cash and cash
equivalents as of September 30, 2023, compared to cash and cash
equivalents of $54.0 million as of December 31, 2022.
Current assets totaled $275.1 million as of
September 30, 2023, compared to $299.5 million as of December 31,
2022. Working capital was $147.8 million as of September 30,
2023. Short-term bank loans were $57.1 million at September 30,
2023, an increase of 25.3% from $45.6 million at December 31, 2022.
The Company had $2.8 million in long-term debt outstanding at
September 30, 2023, compared to $12.2 million in long-term debt as
of December 31, 2022. Shareholder's equity attributable to APWC was
$145.1 million as of September 30, 2023, compared to $151.6 million
as of December 31, 2022.
APWC reported cash used in operating activities
of $14.0 million during the nine months ended September 30, 2023,
compared to cash provided by operating activities in the amount of
$5.7 million in the corresponding period in 2022. The cash outflow
from operating activities was primarily attributable to the
decrease in sales. The Company reported $3.6 million in cash
outflows from investing activities during the nine months ended
September 30, 2023, compared to $1.5 million in cash outflows in
the same period of 2022. The increase in cash used in investing
activities in the nine months of 2023 was primarily attributable to
the increase in purchases of property, plant and equipment and
short-term bank deposits in 2023. APWC reported $5.1 million in
cash inflows from financing activities during the first nine months
of 2023, compared to $6.5 million in cash inflows from financing
activities in the same period of 2022. The decrease was due to the
Company's capital increase in 2022.
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
Limited
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.
|
Contact:Investor Relations Contact:Pacific
Holdings GroupAttn: Paul Weber2901 Dallas Parkway, Suite 360Plano,
TX 75093Phone: (469) 797-7191Email: pweber@pusa.com |
|
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND
SUBSIDIARIES |
|
CONSOLIDATED INCOME STATEMENTS |
|
(Non-Audited) |
|
(Amounts in thousands of US Dollars, except share data) |
| |
|
|
|
|
|
| |
|
|
For the nine months |
| |
|
|
ended September 30, |
|
|
|
|
|
2023 |
|
|
|
2022 |
|
| |
|
|
US$'000 |
|
US$'000 |
|
Revenue |
|
294,210 |
|
|
|
310,734 |
|
| Cost of
sales |
|
(276,619 |
) |
|
|
(289,267 |
) |
| Gross
profit |
|
17,591 |
|
|
|
21,467 |
|
| |
|
|
|
| Other operating
income |
|
390 |
|
|
|
944 |
|
| Selling, general
and administrative expenses |
|
(17,854 |
) |
|
|
(18,589 |
) |
| Other operating
expenses |
|
(17 |
) |
|
|
(4 |
) |
| Operating
profit |
|
110 |
|
|
|
3,818 |
|
| |
|
|
|
| Finance costs |
|
(1,814 |
) |
|
|
(1,124 |
) |
| Finance
income |
|
137 |
|
|
|
82 |
|
| Share of loss of
associates |
|
(1 |
) |
|
|
(1 |
) |
| Exchange loss |
|
(852 |
) |
|
|
(1,309 |
) |
| Other income |
|
976 |
|
|
|
1,691 |
|
| Other expense |
|
— |
|
|
|
(3 |
) |
|
(Loss)/Profit before tax |
|
(1,444 |
) |
|
|
3,154 |
|
| Income tax
expense |
|
640 |
|
|
|
(1,700 |
) |
|
(Loss)/Profit for the period |
|
(804 |
) |
|
|
1,454 |
|
| |
|
|
|
| Attributable
to: |
|
|
|
| Equity holders of
the parent |
|
1,116 |
|
|
|
576 |
|
| Non-controlling
interests |
|
(1,920 |
) |
|
|
878 |
|
| |
|
|
|
(804 |
) |
|
|
1,454 |
|
| |
|
|
|
|
|
| Basic and diluted
profit per share |
$ |
0.05 |
|
|
$ |
0.03 |
|
| Basic and diluted
weighted average common shares outstanding |
|
20,616,227 |
|
|
|
19,819,561 |
|
| |
|
|
|
|
|
|
|
|
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND
SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|
(Non-Audited) |
|
(Amounts in thousands of US Dollars, except share data) |
| |
|
|
|
|
|
| |
|
|
For the nine months |
| |
|
|
ended September 30, |
|
|
|
|
2023 |
|
|
2022 |
|
| |
|
|
US$'000 |
|
US$'000 |
|
(Loss)/Profit for the period |
(804 |
) |
|
1,454 |
|
| Other
comprehensive income/(loss) |
|
|
|
| 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 |
(11,141 |
) |
|
(22,393 |
) |
| |
(11,141 |
) |
|
(22,393 |
) |
| 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 |
446 |
|
|
(1,499 |
) |
|
Income tax effect |
(89 |
) |
|
300 |
|
| |
357 |
|
|
(1,199 |
) |
|
Re-measuring losses on defined benefit plans |
152 |
|
|
378 |
|
|
Income tax effect |
(30 |
) |
|
(75 |
) |
| |
122 |
|
|
303 |
|
| |
|
|
|
| Other
comprehensive loss for the year , net of tax |
(10,662 |
) |
|
(23,289 |
) |
| Total
comprehensive loss for the period, net of tax |
(11,466 |
) |
|
(21,835 |
) |
| Attributable
to: |
|
|
|
| Equity holders of
the parent |
(6,542 |
) |
|
(15,522 |
) |
| Non-controlling
interests |
(4,924 |
) |
|
(6,313 |
) |
| |
(11,466 |
) |
|
(21,835 |
) |
| |
|
|
|
|
|
|
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND
SUBSIDIARIES |
|
CONSOLIDATED BALANCE SHEETS |
|
(In thousands of US Dollars) |
|
|
|
|
|
| |
As ofSeptember 30,
2023(Non-audited) |
|
As ofDecember 31,
2022(Audited) |
| |
US$'000 |
|
US$'000 |
| Assets |
|
|
|
| Current
assets |
|
|
|
|
Cash and cash equivalents |
38,523 |
|
54,017 |
|
Financial assets at fair value through profit or loss |
775 |
|
39 |
|
Trade receivables |
76,590 |
|
81,982 |
|
Other receivables |
2,759 |
|
2,397 |
|
Contract assets |
4,187 |
|
12,450 |
|
Due from related parties |
7,893 |
|
11,018 |
|
Inventories |
133,021 |
|
130,608 |
|
Prepayments |
6,268 |
|
3,341 |
|
Other current assets |
5,109 |
|
3,673 |
| |
275,125 |
|
299,525 |
| Non-current
assets |
|
|
|
|
Financial assets at fair value through other comprehensive
income |
2,186 |
|
1,553 |
|
Property, plant and equipment |
46,038 |
|
50,713 |
|
Right of use assets |
2,872 |
|
3,432 |
|
Investment properties |
4,811 |
|
5,250 |
|
Intangible assets |
131 |
|
139 |
|
Investments in associates |
755 |
|
805 |
|
Deferred tax assets |
7,689 |
|
7,143 |
|
Other non-current assets |
3,039 |
|
2,459 |
| |
67,521 |
|
71,494 |
| Total
assets |
342,646 |
|
371,019 |
| |
|
|
|
|
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND
SUBSIDIARIES |
|
CONSOLIDATED BALANCE SHEETS |
|
(In thousands of US Dollars) |
| |
|
|
|
| |
As ofSeptember 30,
2023(Non-audited) |
|
As ofDecember 31,
2022(Audited) |
| |
US$'000 |
|
US$'000 |
|
Liabilities |
|
|
|
| Current
liabilities |
|
|
|
|
Interest-bearing loans and borrowings |
57,115 |
|
|
45,576 |
|
|
Trade and other payables |
41,399 |
|
|
39,891 |
|
|
Due to related parties |
10,603 |
|
|
16,613 |
|
|
Financial liabilities at fair value through profit or loss |
19 |
|
|
6 |
|
|
Accruals |
8,427 |
|
|
21,218 |
|
|
Current tax liabilities |
978 |
|
|
2,432 |
|
|
Employee benefit liabilities |
2,189 |
|
|
1,947 |
|
|
Financial lease liabilities |
608 |
|
|
627 |
|
|
Other current liabilities |
5,939 |
|
|
5,289 |
|
| |
127,277 |
|
|
133,599 |
|
| |
|
|
|
| Non-current
liabilities |
|
|
|
|
Interest-bearing loans and borrowings |
2,849 |
|
|
12,155 |
|
|
Employee benefit liabilities |
7,310 |
|
|
7,693 |
|
|
Lease liabilities |
1,498 |
|
|
1,947 |
|
|
Deferred tax liabilities |
4,036 |
|
|
4,197 |
|
| |
15,693 |
|
|
25,992 |
|
| Total
liabilities |
142,970 |
|
|
159,591 |
|
| |
|
|
|
| Equity |
|
|
|
| Issued capital |
206 |
|
|
206 |
|
| Additional paid-in
capital |
118,103 |
|
|
118,103 |
|
| Treasury shares |
(38 |
) |
|
(38 |
) |
| Retained earnings |
55,180 |
|
|
54,064 |
|
| Other components of
equity |
(28,398 |
) |
|
(20,740 |
) |
| Equity attributable to
equity holders of the parent |
145,053 |
|
|
151,595 |
|
| Non-controlling interests |
54,623 |
|
|
59,833 |
|
| Total
equity |
199,676 |
|
|
211,428 |
|
| Total liabilities and
equity |
342,646 |
|
|
371,019 |
|
| |
|
|
|
|
|
|
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND
SUBSIDIARIES |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
(Non-Audited) |
|
(In thousands of US Dollars) |
| |
|
|
|
| |
For the nine months |
| |
ended September 30, |
|
|
2023 |
|
|
2022 |
|
| |
US$'000 |
|
US$'000 |
| Net cash (used in)/provided by
operating activities |
(13,982 |
) |
|
5,701 |
|
| Net cash used in investing
activities |
(3,575 |
) |
|
(1,477 |
) |
| Net cash provided by financing
activities |
5,097 |
|
|
6,512 |
|
| Effect of exchange rate |
(3,034 |
) |
|
(5,726 |
) |
| Net
(decrease)/increase in cash and cash equivalents |
(15,494 |
) |
|
5,010 |
|
|
Cash and cash equivalents at beginning of period |
54,017 |
|
|
42,512 |
|
| Cash and cash
equivalents at end of period |
38,523 |
|
|
47,522 |
|
_____________________________1 The calculation of the earnings
per share is based on 20,616,227 and 19,819,561 basic and diluted
weighted average common shares issued and outstanding for the nine
months ended September 30, 2023 and 2022, respectively.
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