-
Revenues were $109.8 million, an increase of 8.7% from $101.0 million in Q12013
-
Cash flows from operations were $24.4 million, up 50.8% from $16.2 million in Q12013
-
$80.4 million in cash and cash equivalents at March 31, 2014
-
Reduced total debt outstanding to $36.4 million at March 31, 2014 from $41.8 million at December 31, 2013
TAIPEI, Taiwan, Aug. 13, 2014 (GLOBE NEWSWIRE) -- 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, 2014.
Financial Summary
|
Q1 2014 Financial Results |
|
|
Q1 2014 |
Q1 2013 |
CHANGE |
|
Revenues |
$109.8 million |
$101.0 million |
+8.7% |
|
Gross Profit |
$8.4 million |
$8.6 million |
-2.1% |
|
Net Income |
($1.0 million) |
$1.3 million |
N/A |
|
EPS(1) |
($0.07) |
$0.09 |
N/A |
|
(1) Earnings per share are based on 13.8 million shares in Q1 2013 and Q1 2014 |
First Quarter 2014 Results
Revenues for the three months ended March 31, 2014 were $109.8 million, up from $101.0 million in the prior period, primarily attributable to an increase in sales of 24.3% in our Rest of the World region ("ROW Region") due to increased sales volumes in its SDI. Our ROW Region consists of Singapore, Australia and the other markets where we have operations or sales outside of our Thailand Region and our North Asia Region.
Gross profit for the first quarter decreased 2.1% to $8.4 million from $8.6 million in the year-ago period, representing gross margins of 7.6% and 8.5%, respectively. Gross margins were down year over year as a result of lower selling prices in the markets.
Selling, general and administrative expenses of $6.7 million for the first quarter of 2014 were down from $7.5 million the same period a year ago. Operating income was a loss of $0.5 million compared to income $0.5 million in the first quarter of 2013. The Company recorded a $2.1 million non-cash impairment charge for trade receivables. Excluding this charge, the operating income would have been $1.6 million in the three months ended March 31, 2014.
Net income attributable to APWC shareholders was a loss $1.0 million for the first quarter of 2014 compared to income of $1.3 million in the corresponding period in 2013. Net income per share was a loss of $0.07 for the period, compared to income of $0.09 in the first three months of 2013. The weighted average shares outstanding were 13.8 million for the first quarter of 2013 and 2014.
Financial Condition
As of March 31, 2014, APWC had $80.4 million in cash and cash equivalents, compared to cash and cash equivalents totaling $62.5 million as of December 31, 2013. Most of the cash is held by operating subsidiaries and, in certain instances, subject to limitations on distribution to APWC.
Total current assets were $307.0 million at March 31, 2014 compared to $302.2 million at December 31, 2013. Working capital was $175.5 million as of March 31, 2014. As of March 31, 2014, short term bank loans were $36.4 million, down from $41.8 million at December 31, 2013. The Company had no long term debt outstanding at March 31, 2013. Shareholders' equity attributable to APWC was $158.1 million at March 31, 2014 compared to $157.2 million at December 31, 2013.
APWC generated approximately $24.4 million of cash from operating activities during the three months ended March 31, 2014, an improvement of $8.2 million compared to $16.2 million of cash inflows from operations in the corresponding period in 2013. The Company reduced capital expenditures to $1.3 million in the first quarter of 2014 compared to $3.1 million in the first quarter of 2013.
Business Update and Outlook
The political unrest in Thailand caused a delay in delivery for projects with the Thailand government in the first quarter of 2014, thus revenue recognized from government projects decreased, compared to the first quarter of 2013. However, overall revenue in the Thailand region still increased comparing to the same period last year. The Company managed to maintain a stable revenue growth by introducing more distributed products.
The Company provided a $2.1 million allowance for an overdue account in the first quarter of 2014.
The revenue growth in the ROW Region was primarily due to the increase in power cable supply, delivery, and installation (SDI) projects in the first quarter of 2014. Increased competition and manufacturing overhead eroded the margin for manufactured products in this region. Nevertheless, improved margin in SDI projects made up the loss.
Share Repurchase Program
The Company announced today that its Board of Directors recently approved the implementation of a share repurchase program, pursuant to which the Company is authorized to repurchase up to $1 million worth of its Common Shares. The Company plans to retain a financial adviser to manage the share repurchase program in accordance with Rule 10b-18 under the Securities Exchange Act. Once implemented, the common shares may be repurchased on the open market, in negotiated transactions, in block trades or otherwise. The timing and the extent of any purchases will depend upon market conditions, the trading price of the common shares and other factors, subject to the restrictions relating to volume, price and timing under applicable laws and regulations. The Company plans to announce the date of the commencement of the share repurchase program in the near future.
The share repurchase program will be funded from existing cash on hand and cash generated from operations. As of March 31, 2014, the Company had cash and cash equivalents of approximately $80.4 million. The Company currently has approximately 13.8 million shares outstanding. The Company is not obligated to repurchase any particular amount of shares during any period and may choose to suspend or discontinue the share repurchase program at any time.
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 http://www.apwcc.com. Information on the Company's Web site or any other Web site 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 STATEMENTS OF OPERATIONS |
|
(Unaudited) |
|
(Amounts in thousands of US Dollars, except share data) |
|
|
|
|
For the three-months |
|
|
ended March 31, (Unaudited) |
|
|
2014 |
2013 |
|
Sales of goods / services |
109,776 |
100,970 |
|
Cost of sales |
(101,392) |
(92,404) |
|
Gross profit |
8,384 |
8,566 |
|
|
|
|
|
Other operating income |
14 |
|
|
Selling, general and administrative expenses |
(6,709) |
(7,544) |
|
Other operating expenses |
(2,162) |
(532) |
|
Operating profit (loss) |
(473) |
490 |
|
|
|
|
|
Finance costs |
(281) |
(484) |
|
Finance income |
280 |
332 |
|
Share of loss of associates |
(209) |
0 |
|
Gain on disposal of investment - held for sale |
0 |
232 |
|
Gain on liquidation of subsidiaries |
0 |
0 |
|
Exchange gain |
547 |
2,224 |
|
Other income |
275 |
1,087 |
|
Other expense |
(20) |
0 |
|
Profit before tax |
119 |
3,881 |
|
|
|
|
|
Income taxes expense |
(1,052) |
(1,315) |
|
Profit (loss) for the period |
(933) |
2,566 |
|
|
|
|
|
Attributable to: |
|
|
|
Equity holders of the parent |
(983) |
1,311 |
|
Non-controlling interests |
50 |
1,255 |
|
Basic and diluted earnings per share |
(0.07) |
0.09 |
|
Basic and diluted weighted average common shares outstanding |
13,820,200 |
13,822,072 |
|
|
|
|
|
|
|
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
(Unaudited) |
|
(Amounts in thousands of US Dollars, except share data) |
|
|
|
|
For the three-months |
|
|
ended March 31, (Unaudited) |
|
|
2014 |
2013 |
|
Net income (loss) |
(933) |
2,566 |
|
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 |
2,190 |
5,181 |
|
|
|
|
|
Net gain (loss) on available-for-sale financial assets |
0 |
(400) |
|
Income tax effect |
0 |
0 |
|
|
0 |
(400) |
|
Other comprehensive income not to be reclassified to profit or loss in subsequent periods: |
|
|
|
Re-measuring losses on defined benefit plans |
(1) |
(19) |
|
Income tax effect |
0 |
0 |
|
Defined benefit pension plan, net of tax |
(1) |
(19) |
|
Other comprehensive income (loss) for the period, net of tax |
2,189 |
4,762 |
|
Total comprehensive income (loss) for the period, net of tax |
1,256 |
7,328 |
|
Attributable to: |
|
|
|
Equity holders of the parent |
888 |
11,623 |
|
Non-controlling interests |
368 |
(4,294) |
|
|
1,256 |
7,328 |
|
|
|
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES |
|
CONSOLIDATED BALANCE SHEETS |
|
(In thousands of US Dollars, except share data) |
|
|
|
|
As of March
31, 2014,
(Unaudited) |
As of
December
31, 2013 |
|
|
|
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$80,384 |
$62,509 |
|
Other current financial assets - available for sale |
0 |
0 |
|
Other current financial assets - derivatives |
0 |
0 |
|
Trade receivables |
102,929 |
122,893 |
|
Other receivables |
11,342 |
11,139 |
|
Due from related parties |
4,737 |
3,842 |
|
Inventories |
103,561 |
98,194 |
|
Prepayments |
1,195 |
1,559 |
|
Assets classified as held for sale |
0 |
0 |
|
Other current assets |
2,845 |
2,113 |
|
|
306,993 |
302,249 |
|
Non-current assets |
|
|
|
Other non-current financial assets - available for sale |
3,225 |
3,189 |
|
Other non-current financial assets - held to maturity |
338 |
335 |
|
Property, plant and equipment |
49,002 |
48,709 |
|
Prepaid land lease payments |
1,913 |
1,939 |
|
Investment properties |
750 |
746 |
|
Intangible assets |
106 |
104 |
|
Investments in associates |
2,696 |
2,937 |
|
Other non-current assets |
641 |
449 |
|
Deferred tax assets |
4,190 |
3,978 |
|
|
62,861 |
62,386 |
|
Total assets |
$369,854 |
$364,635 |
|
|
|
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES |
|
CONSOLIDATED BALANCE SHEETS |
|
(In thousands of US Dollars, except share data) |
|
|
|
|
As of March
31, 2014,
(Unaudited) |
As of
December
31, 2013 |
|
|
|
|
|
Current liabilities: |
|
|
|
Interest-bearing loans and borrowings |
36,367 |
41,789 |
|
Trade and other payables |
50,585 |
41,369 |
|
Due to related parties |
11,940 |
11,126 |
|
Due to immediate holding company |
0 |
1,732 |
|
Other current financial liabilities at fair value through profit or loss |
6 |
0 |
|
Accruals |
14,035 |
13,336 |
|
Income tax payable |
10,925 |
9,874 |
|
Employee benefit liability |
118 |
419 |
|
Financial lease liabilities |
22 |
37 |
|
Onerous contracts provisions |
39 |
125 |
|
Dividend payable |
721 |
348 |
|
Other current liabilities |
6,733 |
7,617 |
|
|
131,491 |
127,772 |
|
|
|
|
|
Non-current liabilities |
|
|
|
Employee benefit liability |
5,651 |
5,455 |
|
Financial lease liabilities |
29 |
28 |
|
Provisions for employee benefit |
621 |
577 |
|
Deferred tax liabilities |
2,678 |
2,676 |
|
|
8,979 |
8,736 |
|
Total liabilities |
140,470 |
136,508 |
|
|
|
|
|
Equity |
|
|
|
Issued capital |
138 |
138 |
|
Additional paid-in capital |
110,608 |
110,608 |
|
Treasury shares |
(38) |
(38) |
|
Retained earnings |
50,783 |
51,766 |
|
Other components of equity |
(3,354) |
(5,226) |
|
Equity attributable to equity holders of the parent |
158,137 |
157,248 |
|
Non-controlling interests |
71,247 |
70,879 |
|
Total equity |
229,384 |
228,127 |
|
Total liabilities and equity |
$369,854 |
$364,635 |
|
|
|
|
|
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, (Unaudited) |
|
|
2,014 |
2,013 |
|
Net cash provided by (used in) operating activities |
$24,368 |
$16,159 |
|
Net cash provided by investing activities |
(1,258) |
(1,042) |
|
Net cash (used in) financing activities |
(5,649) |
(21,274) |
|
Effect of exchange rate changes on cash and cash equivalents |
414 |
1,151 |
|
Net (decrease) in cash and cash equivalents |
17,875 |
(5,006) |
|
Cash and cash equivalents at beginning of period |
62,509 |
72,816 |
|
Cash and cash equivalents at end of period |
$80,384 |
$67,810 |
CONTACT: Company Contact:
Asia Pacific Wire & Cable Corporation Limited
Mr. Ivan Hsia, CFO
Phone: +886-2-2712-2558 ext. 27
E-mail: ivan.hsia@apwcc.com
Investor Relations Contact:
MZ North America
Ted Haberfield
President
Tel: +1-760-755-2716
Email: thaberfield@mzgroup.us
Web: www.mzgroup.us
