comments from management TAIPEI, Taiwan, May 04, 2016 (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 twelve months ended December 31, 2015.
| FY 2015 Financial Results |
| | FY 2015 | FY 2014 | CHANGE |
| Revenues | $389.6 million | $451.3 million | | -13.7 | % |
| Gross Profit | $23.5 million | $36.7 million | | -36.1 | % |
| Net Income (Loss) | ($8.2) million | $0.6 million | | -- | |
| EPS* (Loss) | ($ | 0.59 | ) | $ | 0.04 | | | -- | |
*Earnings per share are based on 13.8 million shares in FY 2014 and FY 2015
Full Year 2015 Results
Revenues for the twelve months ended December 31, 2015 were $389.6 million, down from $451.3 million in the prior period. The decrease was attributable mainly to a revenue reduction of $24.6 million in the North Asiaregion due to the economic slowdown in China, which caused a decrease in the sales volume of products in that market, and a decrease of $35.6 million in revenues from the Rest of the World (“ROW”) region (which is primarilySingapore and Australia) due to both increased market competition, primarily the competition of products imported from China, as well as the depreciation of each of the Singapore and Australian dollars against the U.S. dollar, which is our reporting currency.
Gross profit for the 2015 year decreased 36.1% to $23.5 million from $36.7 million in the year-ago period, representing gross margins of 6.0% and 8.1%, respectively. Gross margins were down year over year due to the lower margin in the Thailand region and the Company’s business in the ROW region.
Selling, general and administrative expenses were $26.9 million for the full year of 2015, down $2.6 million, or 8.8%, from $29.5 million in 2014 due to a decrease in sales-related commissions and remuneration. Operating loss was ($8.9) million compared to operating income of $5.0 million in the full year of 2014.
Net loss attributable to APWC shareholders was ($8.2) million for the full year of 2015 compared to net income of $0.6 million in the corresponding period in 2014. Net loss per basic and diluted share was ($0.59) for the period, compared to net income of $0.04 in the twelve months of 2014. The basic and diluted weighted average shares outstanding were 13.8 million for the full year of each of 2014 and 2015.
Financial Condition
As of December 31, 2015, APWC had $51.3 million in cash and cash equivalents, compared to cash and cash equivalents totaling $68.9 million as of December 31, 2014.
Total current assets were $247.5 million at December 31, 2015 compared to $318.0 million at December 31, 2014. Working capital was $145.0 million as of December 31, 2015, compared with working capital of $169.5 million as of December 31, 2014. As of December 31, 2015, short term bank loans of $37.7 million were up from $53.9 million at December 31, 2014. The Company had no long term debt outstanding at December 31, 2015. Shareholders' equity attributable to APWC was $135.3 million at December 31, 2015 compared to $153.0 million at December 31, 2014.
APWC generated approximately $9.2 million of cash from operating activities during the twelve months ended December 31, 2015, compared to $8.1 million of cash inflows from operations in the corresponding period in 2014. The Company increased capital expenditures to $7.4 million in the full year of 2015 compared to $6.0 million in the full year of 2014.
Business Updates
The Company reported a net loss of ($8.2) million for the year ended 2015 compared to a net income of $0.6 million for 2014. The drop of the net income was primarily due to the exchange loss, which amounted to ($4.6) million, caused by the depreciation of local currencies against the U.S. dollar. The decrease of the net income was also attributable to the decrease in sales to the public sector, from which our Thailand subsidiaries traditionally enjoyed a higher profit margin. In addition, the drop of the copper price by 19.8% year over year and intense competition in the ROW region were also the reasons the profit was eroded.
China recorded a pronounced deceleration in growth in 2015, affirming that a multiyear slowdown is hitting its economy harder and shows little sign of abating. It is likely that decreased domestic demand will keep affecting the Company’s business in China. Our business in other Asian countries andAustralia is also affected by the wire and cable products overflowing fromChina.
The political environment of Thailand remains unstable, which adversely affected the Thai government’s spending on infrastructure. As our major clients in Thailand are government entities, private sector participants in the infrastructure sector and agents for governmental entities, decreased investment in infrastructure by the Thai government would heavily affect our business in Thailand.
In response to the economic slowdown in China, the Company is managing to increase production efficiency and lower production costs through combining the export and domestic production facilities to reduce redundant machinery and operators. The Company believes the export factories, in which dutiable goods and raw materials are imported and manufactured into finished goods are directly exported without payment of any duty, are no longer needed due to the relaxation of tariff regulations in China. The Company is also contemplating selling its idle properties to better utilize its resources in itsThailand subsidiaries in order to reduce operating costs. In addition, one of the Company’s Thailand subsidiaries has completed the upgrade of its machinery, which are now up and running at their full capacity, and those substantial expenditures brought the Thailand subsidiaries into compliance with Thailand’s new more stringent environmental regulations.
The Company’s Singapore subsidiary is in the midst of being certified bySingapore government with regard to its high voltage power cables in order to meet the qualification requirement so that the Company is qualified to bid forSingapore government projects, including the electricity cable tunnel project of Singapore Power. As one of the ASEAN members, our Singapore subsidiary is expanding its operation into the markets of its neighboring countries includingVietnam and Cambodia.
The Company takes very seriously the concerns expressed by some of our shareholders. The Company management is addressing these concerns and doing its best to enhance value for our shareholders. The Company management will address these issues with the Board of Directors of the Company and present to the public its strategies to increase shareholder value, with a target date of not later than sometime during the third quarter.