Asia Pacific Wire & Cable Company Reports Third Quarter 2016 Financial Results
December 09 2016 - 4:05PM
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, 2016. 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 2016 Financial Results (Ended September 30,
2016) |
|
|
First 9 Months 2016 |
First 9 Months 2015 |
CHANGE |
Revenues |
$ |
274.6
million |
|
$ |
291.1
million |
|
|
-5.7 |
% |
Gross Profit |
$ |
22.1
million |
|
$ |
16.7
million |
|
|
+31.9 |
% |
Net Income/(Loss) |
$ |
5.1
million |
|
$ |
(6.1)
million |
|
|
-- |
|
EPS(1) |
$ |
0.37 |
|
$ |
(0.44 |
) |
|
-- |
|
|
(1) Earnings
per share are based on 13.8 million shares for the first nine
months of both 2016 and 2015 |
First Nine Months 2016 Results
Revenues for the nine months ended September 30, 2016, were
$274.6 million, down from $291.1 million in the prior year. The
decrease was primarily attributable to a 14.5% revenue decrease in
Thailand, where revenues in the local currency (“THB”) decreased by
10.66% due to competition and economic slowdown. The Thailand
region’s revenues decreased by 14.47% when converted to USD due to
the depreciation of THB, which depreciated by 4.45% compared to the
comparable period in 2015. Revenues in the Company’s North Asia
region and ROW region decreased slightly by 1.1% and 2.1%
respectively. APWC’s ROW region includes Singapore, Australia and
the other markets where APWC has operations or sales outside of the
Thailand region and North Asia region. The North Asia region
includes China and Hong Kong, and the Thailand region contains the
operations and sales inside Thailand.
The gross profit for the nine months ended September 30, 2016,
increased by 31.9% to $22.1 million from $16.7 million in the same
period last year. Gross margin was up by 39.7%, growing from 5.7%
in the first nine months of 2015 to 8.0% this year. In the Thailand
region, gross margin grew following an increase in high margin
government projects. In the North Asia region, the gross margin
increased because the copper price did not fluctuate adversely
compared to the prior year. The ROW region’s gross margin remained
unchanged compared to the comparable period in 2015.
Selling, general and administrative expenses of $18.3 million
were reported for the first nine months of 2016, compared to $18.9
million booked for the comparable period a year ago. Operating
income was $8.1 million, compared to an operating loss of ($2.2)
million in the comparable nine-month period last year.
Net income attributable to APWC shareholders was $5.1 million
for the first nine months of 2016, compared to the net loss of
($6.1) million in 2015. Net income per share was $0.37 for the year
to date, while a net loss of ($0.44) per share was reported for the
comparable period a year ago. The weighted average number of shares
outstanding was 13.8 million for the first nine months of each of
2016 and 2015.
Financial Condition
APWC reported $42.7 million in cash and cash equivalents as of
September 30, 2016, compared to cash and cash equivalents of $51.3
million on December 31, 2015.
Current assets totaled $254.4 million on September 30, 2016,
compared to $247.5 million as of December 31, 2015. Working capital
was $159.6 million as of September 30, 2016. Short term bank loans
were reported at $36.6 million on the same date, down from $37.7
million at the end of 2015. The Company had no long-term debt
outstanding at September 30, 2016. Shareholder's equity
attributable to APWC was $207.1 million as of September 30, 2016,
compared to $194.1 million on December 31, 2015.
APWC used $7.2 million in cash from operating activities during
the nine months ended September 30, 2016, compared to $17.5 million
in the corresponding period in 2015. The Company reduced capital
expenditures to $4.3 million in the first nine months of 2016
compared to $5.4 million in the corresponding period in 2015.
We encourage shareholders to visit the Company’s website 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. For more information on the Company,
visit www.apwcc.com. Information on the Company's website or any
other website does not constitute a portion of this release.
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",
"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.
|
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, (Unaudited) |
|
|
2016 |
|
|
|
2015 |
|
Sales of goods / services |
$ |
274,621 |
|
|
$ |
291,079 |
|
Cost of sales |
|
(252,555 |
) |
|
|
(274,343 |
) |
Gross profit |
|
22,066 |
|
|
|
16,736 |
|
|
|
|
|
Other operating income |
|
4,987 |
|
|
|
107 |
|
Selling, general and administrative expenses |
|
(18,332 |
) |
|
|
(18,886 |
) |
Other operating expenses |
|
(590 |
) |
|
|
(162 |
) |
Operating income/(loss) |
|
8,131 |
|
|
|
(2,205 |
) |
|
|
|
|
Finance costs |
|
(872 |
) |
|
|
(1,223 |
) |
Finance income |
|
759 |
|
|
|
572 |
|
Share of loss of associates |
|
(515 |
) |
|
|
(561 |
) |
Gain on disposal of investment |
|
0 |
|
|
|
32 |
|
Exchange (loss)/gain |
|
669 |
|
|
|
(4,420 |
) |
Other income |
|
96 |
|
|
|
1,018 |
|
Other expense |
|
(356 |
) |
|
|
(253 |
) |
Profit/(loss) before tax |
|
7,912 |
|
|
|
(7,040 |
) |
|
|
|
|
Income tax benefit/(expense) |
|
745 |
|
|
|
(445 |
) |
|
|
|
|
Profit/(loss) for the year |
$ |
8,657 |
|
|
($ |
7,485 |
) |
|
|
|
|
Attributable to: |
|
|
|
Equity holders of the parent |
|
5,142 |
|
|
|
(6,123 |
) |
Non-controlling interests |
|
3,515 |
|
|
|
(1,362 |
) |
Basic and diluted earnings per share |
$ |
0.37 |
|
|
($ |
0.44 |
) |
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, (Unaudited) |
|
|
2016 |
|
|
|
2015 |
|
Profit/(loss) for the year |
$ |
8,657 |
|
|
($ |
7,485 |
) |
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 |
|
6,284 |
|
|
|
(17,384 |
) |
|
|
|
|
Net gain on available-for-sale
financial assets |
|
(857 |
) |
|
|
(661 |
) |
Income tax effect |
|
170 |
|
|
|
198 |
|
|
|
(687 |
) |
|
|
(463 |
) |
|
|
|
|
Other comprehensive income not to be reclassified
to profit or loss in subsequent periods: |
|
|
|
Re-measuring losses on defined
benefit plans |
|
(43 |
) |
|
|
0 |
|
Income tax effect |
|
9 |
|
|
|
0 |
|
Defined benefit pension plan, net
of tax |
|
(34 |
) |
|
|
0 |
|
|
|
|
|
Other comprehensive profit/(loss) for the period,
net of tax |
|
5,563 |
|
|
|
(17,847 |
) |
|
|
|
|
Total comprehensive profit/(loss) for the period,
net of tax |
|
14,220 |
|
|
|
(25,332 |
) |
Attributable to: |
|
|
|
Equity holders of the parent |
|
8,922 |
|
|
|
(17,343 |
) |
Non-controlling interests |
|
5,298 |
|
|
|
(7,989 |
) |
|
$ |
14,220 |
|
|
($ |
25,332 |
) |
|
|
|
|
|
|
|
|
ASIA PACIFIC WIRE
& CABLE CORPORATION LIMITED AND SUBSIDIARIES |
CONSOLIDATED BALANCE
SHEETS |
(In thousands of US
Dollars, except share data) |
|
|
As of September 30, 2016 (Unaudited) |
|
As of December 31, 2015 (Audited) |
|
|
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
42,688 |
|
|
$ |
51,303 |
|
Other current financial assets – at fair value
through profit or loss |
|
0 |
|
|
|
19 |
|
Trade receivables |
|
83,959 |
|
|
|
69,991 |
|
Other receivables |
|
14,769 |
|
|
|
17,563 |
|
Due from related parties |
|
11,121 |
|
|
|
18,180 |
|
Inventories |
|
94,469 |
|
|
|
83,137 |
|
Gross amounts due from customers for contract
work-in-progress |
|
448 |
|
|
|
1,071 |
|
Prepayments |
|
2,952 |
|
|
|
2,258 |
|
Assets classified as held for sale |
|
0 |
|
|
|
224 |
|
Other current assets |
|
3,999 |
|
|
|
3,776 |
|
|
|
254,405 |
|
|
|
247,522 |
|
Non-current assets |
|
|
|
Other non-current financial assets-available for
sale |
|
2,030 |
|
|
|
2,862 |
|
Other non-current financial assets-held to
maturity |
|
319 |
|
|
|
306 |
|
Property, plant and requirement |
|
47,254 |
|
|
|
45,898 |
|
Prepaid land lease payments |
|
1,676 |
|
|
|
1,737 |
|
Investment properties |
|
685 |
|
|
|
667 |
|
Intangible assets |
|
76 |
|
|
|
93 |
|
Investments in associates |
|
812 |
|
|
|
1,633 |
|
Other non-current assets |
|
311 |
|
|
|
203 |
|
Deferred tax assets |
|
3,927 |
|
|
|
4,481 |
|
|
|
57,090 |
|
|
|
57,880 |
|
Total assets |
$ |
311,495 |
|
|
$ |
305,402 |
|
|
|
|
|
|
|
|
|
ASIA PACIFIC WIRE
& CABLE CORPORATION LIMITED AND SUBSIDIARIES |
CONSOLIDATED BALANCE
SHEETS |
(In thousands of US
Dollars, except share data) |
|
|
As of September 30, 2016 (Unaudited) |
|
As of December 31, 2015 (Audited) |
|
|
|
|
Current liabilities: |
|
|
|
Interest-bearing loans and borrowings |
$ |
36,551 |
|
|
$ |
37,701 |
|
Trade and other payables |
|
33,729 |
|
|
|
31,690 |
|
Due to related parties |
|
2,958 |
|
|
|
8,547 |
|
Due to immediate holding company |
|
1,537 |
|
|
|
1,537 |
|
Other current financial liabilities at fair value
through profit or loss |
|
138 |
|
|
|
0 |
|
Accruals |
|
11,605 |
|
|
|
10,527 |
|
Current tax liabilities |
|
2,910 |
|
|
|
6,031 |
|
Employee benefit liability |
|
459 |
|
|
|
446 |
|
Financial lease liabilities |
|
30 |
|
|
|
22 |
|
Provisions for employee benefit |
|
449 |
|
|
|
442 |
|
Onerous contracts provisions |
|
0 |
|
|
|
79 |
|
Dividend payable |
|
454 |
|
|
|
417 |
|
Other current liabilities |
|
3,992 |
|
|
|
5,130 |
|
|
|
94,812 |
|
|
|
102,569 |
|
|
|
|
|
Non-current liabilities |
|
|
|
Employee benefit liability |
|
6,529 |
|
|
|
5,859 |
|
Financial lease liabilities |
|
64 |
|
|
|
51 |
|
Provisions for employee benefit |
|
108 |
|
|
|
116 |
|
Other non-current liabilities |
|
1 |
|
|
|
5 |
|
Deferred tax liabilities |
|
2,835 |
|
|
|
2,734 |
|
|
|
9,537 |
|
|
|
8,765 |
|
Total liabilities |
|
104,349 |
|
|
|
111,334 |
|
|
|
|
|
Equity |
|
|
|
Issued capital |
|
138 |
|
|
|
138 |
|
Additional paid-in capital |
|
110,608 |
|
|
|
110,608 |
|
Treasury shares |
|
(38 |
) |
|
|
(38 |
) |
Retained earnings |
|
49,322 |
|
|
|
44,180 |
|
Other components of equity |
|
(15,778 |
) |
|
|
(19,558 |
) |
Equity attributable to equity holders of the
parent |
|
144,252 |
|
|
|
135,330 |
|
Non-controlling interests |
|
62,894 |
|
|
|
58,738 |
|
Total equity |
|
207,146 |
|
|
|
194,068 |
|
Total liabilities and equity |
$ |
311,495 |
|
|
$ |
305,402 |
|
|
|
|
|
|
|
|
|
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, (Unaudited) |
|
|
2016 |
|
|
|
2015 |
|
Net cash provided/(used in) by operating
activities |
($ |
7,226 |
) |
|
($ |
17,150 |
) |
Net cash (used in) investing activities |
|
514 |
|
|
|
(5,383 |
) |
Net cash (used in )/provided by financing
activities |
|
(3,113 |
) |
|
|
(9,550 |
) |
Effect of exchange rate changes on cash and
cash equivalents |
|
1,210 |
|
|
|
2,757 |
|
Net (decrease)/increase in cash and cash
equivalents |
|
(8,615 |
) |
|
|
(29,326 |
) |
Cash and cash equivalents at the beginning of
period |
|
51,303 |
|
|
|
68,863 |
|
Cash and cash equivalents at the end of
period |
$ |
42,688 |
|
|
$ |
39,537 |
|
|
|
|
|
|
|
|
|
Contact:
Investor Relations Contact:
MZ North America
Ted Haberfield
President
Tel: +1-760-755-2716
Email: thaberfield@mzgroup.us
Web: www.mzgroup.us
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