Asia Pacific Wire & Cable Corporation Ltd. Reports First Quarter 2019 Financial Results
June 26 2019 - 9:18AM
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 three months ended March 31, 2019. 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
Three Months 2019 Financial Results (Ended March 31,
2019) |
|
|
First 3 Months
2019 |
First 3 Months
2018 |
CHANGE |
Revenues |
$ |
81.6 million |
$ |
106.1 million |
(23.1)% |
Gross Profit |
$ |
6.0 million |
$ |
7.9 million |
(24.9)% |
Net Income (Loss) |
$ |
(0.67)
million |
$ |
0.09 million |
(875.6)% |
EPS(1) |
$ |
(0.05) |
$ |
0.01 |
(600.0)% |
|
(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 three months ended March 31, 2019 and 2018, respectively. |
First Three Months 2019 Results
Net revenues for the three months ended March 31, 2019, were
$81.6 million, a decrease of 23.1% from $106.1 million in the prior
year. 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 9.8%, primarily due to less projects from the public
sector. Revenues in the Company's North Asia region decreased by
29.9%, primarily due to negative impact of the trade war between
the United States and China. Revenues in the Company's Rest of
World ("ROW") region decreased by 23.1%, primarily due to intense
competition. 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.
Operating profit for the three months ended March 31, 2019
decreased by 110.5% to $(0.2) million from $1.8 million in the same
period last year. Operating margin decreased by 113.6%,
declining from 1.7% in 2018 to (0.2)% in 2019. In the
Thailand region, operating margin declined from 3.6% to 1.4%, which
was attributable primarily to decreases in sales of higher margin
products and increases in the advertising & sales promotion
expenditures in an effort to expand the market. In the North
Asia region, operating margin decreased slightly, primarily due to
a decrease in revenue. The ROW region’s operating margin decrease
in 2019 was primarily attributable to a decrease in revenue in the
region.
Selling, general and administrative expenses for the first
quarter of 2019 were $6.4 million, compared to $6.4 million
reported in the first quarter of 2018. Net loss attributable
to APWC shareholders was $(0.67) million for the first quarter of
2019, compared to net income of $0.09 million in the same period in
2018. The decrease in net income was primarily due to a
decrease in revenue. The weighted average number of shares issued
and outstanding was 13.82 million for the three months ended March
31, 2019 and 2018.
Financial Condition
APWC reported $64.0 million in cash and cash equivalents as of
March 31, 2019, compared to cash and cash equivalents of $60.8
million as of December 31, 2018.
Current assets totaled $255.1 million as of March 31, 2019,
compared to $254.1 million as of December 31, 2018. Working
capital was $184.1 million as of March 31, 2019. Short term
bank loans were $22.5 million at March 31, 2019, a decrease from
$24.8 million at the end of 2018. The Company had no
long-term debt outstanding at March 31, 2019. Shareholder's equity
attributable to APWC was $151.7 million as of March 31, 2019,
compared to $150.0 million as of December 31, 2018.
APWC reported $6.7 million cash generated from operations during
the three months ended March 31, 2019, compared to cash generated
from operations of $14.3 million in the corresponding period in
2018. The decrease in cash generated from operations in 2019 was
primarily attributable to increase in inventory and a decrease in
net profit. The Company reported $1.4 million in cash outflows from
investing activities during the three months ended March 31, 2019,
compared to $1.0 million in cash outflows in the same period of
2018. The cash used more for investing activities in the first
quarter of 2019 was attributable primarily to the increase in
purchases of property, plant and equipment in the Thailand
region. APWC reported $2.9 million in cash outflows from
financing activities during the first quarter of 2019, compared to
$7.9 million in cash outflows from financing activities in the same
period of 2018. The decrease in cash outflows in 2019 was primarily
attributable to a decrease 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
RelationsLisa A. GrayPartner & Senior Account ManagerPhone:
+1-212-989-9899Email: lisa@asiaalphair.com Web:
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
three months |
|
ended March
31, |
|
|
2019 |
|
|
|
2018 |
|
|
(Unaudited) |
|
(Unaudited) |
Revenue |
$ |
81,601 |
|
|
$ |
106,076 |
|
Cost of sales |
|
(75,641 |
) |
|
|
(98,141 |
) |
Gross profit |
|
5,960 |
|
|
|
7,935 |
|
|
|
|
|
|
|
|
|
Other operating income |
|
397 |
|
|
|
421 |
|
Selling, general and administrative expenses |
|
(6,387 |
) |
|
|
(6,449 |
) |
Other operating expenses |
|
(155 |
) |
|
|
(141 |
) |
Operating (loss)/profit |
|
(185 |
) |
|
|
1,766 |
|
|
|
|
|
|
|
|
|
Finance costs |
|
(286 |
) |
|
|
(333 |
) |
Finance income |
|
139 |
|
|
|
89 |
|
Share of loss of associates |
|
(1 |
) |
|
|
- |
|
Exchange (loss) gain |
|
(165 |
) |
|
|
345 |
|
Other income |
|
546 |
|
|
|
134 |
|
Other expense |
|
- |
|
|
|
(1 |
) |
Profit before tax |
|
48 |
|
|
|
2,000 |
|
Income tax expense |
|
(430 |
) |
|
|
(906 |
) |
(Loss)/Profit for the period |
$ |
(382 |
) |
|
$ |
1,094 |
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
Equity holders of the parent |
$ |
(667 |
) |
|
$ |
86 |
|
Non-controlling interests |
$ |
285 |
|
|
$ |
1,008 |
|
Basic and diluted earnings per share |
$ |
(0.05 |
) |
|
$ |
0.01 |
|
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
three months |
|
|
ended March
31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
(Unaudited) |
|
(Unaudited) |
(Loss)/Profit for the period |
$ |
(382 |
) |
|
$ |
1,094 |
|
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 |
|
3,615 |
|
|
|
7,580 |
|
|
|
|
3,615 |
|
|
|
7,580 |
|
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 |
|
(123 |
) |
|
|
212 |
|
|
Income tax effect |
|
25 |
|
|
|
(42 |
) |
|
|
|
(98 |
) |
|
|
170 |
|
|
Re-measuring losses on defined benefit plans |
|
(41 |
) |
|
|
(84 |
) |
|
Income tax effect |
|
8 |
|
|
|
17 |
|
|
|
|
(33 |
) |
|
|
(67 |
) |
|
|
|
|
|
|
|
|
|
Other comprehensive income for the year , net of tax |
|
3,484 |
|
|
|
7,683 |
|
Total comprehensive income for the period, net of tax |
|
3,102 |
|
|
|
8,777 |
|
Attributable to: |
|
|
|
|
|
|
|
Equity holders of the parent |
|
1,923 |
|
|
|
4,742 |
|
Non-controlling interests |
|
1,179 |
|
|
|
4,035 |
|
|
|
$ |
3,102 |
|
|
$ |
8,777 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASIA PACIFIC WIRE
& CABLE CORPORATION LIMITED AND SUBSIDIARIES |
CONSOLIDATED BALANCE
SHEETS |
(In thousands of US
Dollars, except share data) |
|
|
|
|
|
As of March 31, 2019 (Unaudited) |
|
As of December 31, 2018 (Audited) |
|
|
|
|
Assets |
|
|
|
Current
assets |
|
|
|
Cash and cash equivalents |
$ |
63,998 |
|
$ |
60,778 |
Financial
assets at fair value through profit or loss |
|
63 |
|
|
- |
Trade
receivables |
|
72,080 |
|
|
79,617 |
Other
receivables |
|
8,792 |
|
|
12,422 |
Contract
assets |
|
1,332 |
|
|
1,460 |
Due from
related parties |
|
12,346 |
|
|
12,061 |
Inventories |
|
92,472 |
|
|
83,925 |
Prepayments |
|
1,175 |
|
|
1,140 |
Other
current assets |
|
2,841 |
|
|
2,745 |
|
|
255,099 |
|
|
254,148 |
Non-current assets |
|
|
|
Financial
assets at fair value through other comprehensive income |
|
2,222 |
|
|
2,332 |
Property,
plant and equipment |
|
41,969 |
|
|
41,418 |
Right of
use assets |
|
3,680 |
|
|
- |
Prepaid
land lease payments |
|
- |
|
|
978 |
Investment properties |
|
725 |
|
|
720 |
Intangible assets |
|
155 |
|
|
157 |
Investments in associates accounted from using equity method |
|
879 |
|
|
864 |
Deferred
tax assets |
|
4,093 |
|
|
3,919 |
Other
non-current assets |
|
1,733 |
|
|
1,262 |
|
|
55,456 |
|
|
51,650 |
Total
assets |
$ |
310,555 |
|
$ |
305,798 |
|
|
|
|
|
|
|
|
|
|
|
|
ASIA PACIFIC WIRE
& CABLE CORPORATION LIMITED AND SUBSIDIARIES |
CONSOLIDATED BALANCE
SHEETS |
(In thousands of US
Dollars, except share data) |
|
|
|
|
|
As of March 31, 2019 (Unaudited) |
|
As of December 31, 2018 (Audited) |
|
|
|
|
Liabilities |
|
|
|
Current liabilities |
|
|
|
Interest-bearing loans and borrowings |
$ |
22,492 |
|
|
$ |
24,814 |
|
Trade and other payables |
|
23,258 |
|
|
|
21,127 |
|
Due to related parties |
|
2,652 |
|
|
|
2,997 |
|
Financial liabilities at fair value through profit or loss |
|
- |
|
|
|
142 |
|
Accruals |
|
13,349 |
|
|
|
14,197 |
|
Current tax liabilities |
|
4,080 |
|
|
|
3,863 |
|
Employee benefit liabilities |
|
1,543 |
|
|
|
1,282 |
|
Financial lease liabilities |
|
358 |
|
|
|
44 |
|
Other current liabilities |
|
3,218 |
|
|
|
3,272 |
|
|
|
70,950 |
|
|
|
71,738 |
|
|
|
|
|
Non-current liabilities |
|
|
|
Employee benefit liabilities |
|
8,370 |
|
|
|
8,273 |
|
Financial lease liabilities |
|
2,308 |
|
|
|
46 |
|
Deferred tax liabilities |
|
4,009 |
|
|
|
3,925 |
|
|
|
14,687 |
|
|
|
12,244 |
|
Total liabilities |
|
85,637 |
|
|
|
83,982 |
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
Issued capital |
|
138 |
|
|
|
138 |
|
Additional paid-in capital |
|
110,376 |
|
|
|
110,376 |
|
Treasury shares |
|
(38 |
) |
|
|
(38 |
) |
Retained earnings |
|
54,349 |
|
|
|
55,016 |
|
Other components of equity |
|
(13,159 |
) |
|
|
(15,464 |
) |
Equity attributable to equity holders of the parent |
|
151,666 |
|
|
|
150,028 |
|
Non-controlling interests |
|
73,252 |
|
|
|
71,788 |
|
Total equity |
$ |
224,918 |
|
|
$ |
221,816 |
|
Total liabilities and equity |
$ |
310,555 |
|
|
$ |
305,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASIA PACIFIC WIRE
& CABLE CORPORATION LIMITED AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited) |
(In thousands of
U.S. Dollars) |
|
|
|
|
|
For the
three months |
|
ended March
31, |
|
|
2019 |
|
|
|
2018 |
|
|
(Unaudited) |
|
(Unaudited) |
Net cash
provided by operating activities |
$ |
6,732 |
|
|
$ |
14,349 |
|
Net cash
used in investing activities |
|
(1,367 |
) |
|
|
(974 |
) |
Net cash
used in financing activities |
|
(2,887 |
) |
|
|
(7,925 |
) |
Effect of
exchange rate on cash and cash equivalents |
|
742 |
|
|
|
2,463 |
|
Net
increase in cash and cash equivalents |
|
3,220 |
|
|
|
7,913 |
|
Cash and
cash equivalents at beginning of period |
|
60,778 |
|
|
|
46,093 |
|
Cash and
cash equivalents at end of period |
$ |
63,998 |
|
|
$ |
54,006 |
|
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