Asia Pacific Wire & Cable Corporation Ltd. Reports Third Quarter 2020 Financial Results

TAIPEI, Taiwan, Jan. 04, 2021 (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 nine months ended September 30, 2020. 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 2020 Financial Results (Ended September 30, 2020), and 2019 comparative results
 
 First 9 Months 2020First 9 Months 2019CHANGE
Revenues$207.2 million$249.7 million(17.0)%
Operating Profit/(Loss)$5.9 million$(3.1) million294.5%
Net Income/(Loss)$0.4 million$(2.0) million118.1%
EPS(1)$0.03$(0.14)121.4%
 
(1)The calculation of the earnings per share is based on 13,819,669 and 13,819,669 basic and diluted weighted average common shares issued and outstanding for the nine months ended September 30, 2020 and 2019, respectively.

First Nine Months 2020 Results 

Revenues for the nine months ended September 30, 2020, were $207.2 million, a decrease of 17.0% from $249.7 million for the nine months ended September 30, 2019.  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 21.8%, primarily due to decreased sales of low margin products. Revenues in the Company's North Asia region decreased by 16.0%, primarily due to the cessation of manufacturing operations of Shanghai Asia Pacific Electric Co., Ltd. (“Yayang”) in October 2019. Revenues in the Company's Rest of World ("ROW") region decreased by 8.7%, primarily due to Singapore not reaching full resumption of work for reasons associated with COVID-19. The Company's North Asia region includes China and Hong Kong; 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, 2020 increased to $5.9 million from a loss of $(3.1) million for the nine months ended September 30, 2019.  Operating profit margin increased from a loss of (1.2)% in 2019 to a profit of 2.9% in 2020.  In the Thailand region, operating profit margin increased from a loss of (0.4)% to a profit of 7.6%, which was attributable primarily to the increase in sales of higher profit margin products. In the North Asia region, operating profit margin increased from 0.9% in 2019 to 3.8% for the same period in 2020, primarily attributable to a decrease in lower margin products and severance expenses. The ROW region’s operating loss margin decreased from (2.8)% in 2019 to (2.3)% in 2020, primarily attributable to abating competition for reasons associated with COVID-19.

Selling, general and administrative expenses for the nine months ended September 30, 2020 were $18.2 million, compared to $19.0 million reported for the nine months ended September 30, 2019.  Net income attributable to APWC shareholders was $0.4 million for the first nine months of 2020, compared to a net loss of $(2.0) million for the same period in 2019.  The increase in net income was primarily due to an increase in gross profit. The weighted average number of shares issued and outstanding was 13.82 million for the nine months ended September 30, 2020 and 2019.

Financial Condition

APWC reported $44.6 million in cash and cash equivalents as of September 30, 2020, compared to cash and cash equivalents of $53.7 million as of December 31, 2019.

Current assets totaled $237.2 million as of September 30, 2020, compared to $239.5 million as of December 31, 2019.  Working capital was $173.2 million as of September 30, 2020.  Short term bank loans were $12.9 million at September 30, 2020, an increase from $11.4 million at the end of 2019.  The Company had $3.4 million in long-term debt outstanding at September 30, 2020, compared to $0.0 in long-term debt as of December 31, 2019. Shareholder's equity attributable to APWC was $150.3 million as of September 30, 2020, compared to $153.9 million as of December 31, 2019.

APWC reported $6.3 million in cash generated from operations during the nine months ended September 30, 2020, compared to cash used in operations of $2.0 million in the corresponding period in 2019. The increase in cash generated from operations in 2020 was primarily attributable to improved product margin. The Company reported $19.3 million in cash outflows from investing activities during the nine months ended September 30, 2020, compared to $2.9 million in cash outflows in the same period of 2019. The increase in cash used for investing activities in the first nine months of 2020 was attributable primarily to the increase in purchases of property, plant and equipment. APWC reported $6.0. million in cash inflows from financing activities during the first nine months of 2020, compared to $6.5 million in cash outflows from financing activities in the same period of 2019. The cash inflows in 2020 was primarily attributable to an increase in borrowing.

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 manufactured by its principal shareholder, Pacific Electric Wire & Cable Company, a Taiwanese company. 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", “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 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:
Skyline Corporate Communications Group, LLC
Lisa Gray, Senior Account Manager
One Rockefeller Plaza, 11th Floor
New York, NY 10020
Office: (646) 893-5835
Email: lisa@skylineccg.com
 


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 Sept 30,
    2020    2019  
    (Unaudited)  (Unaudited)
Revenue$207,204  $249,659 
Cost of sales (183,197)  (234,585)
Gross profit 24,007   15,074 
      
Other operating income 450   950 
Selling, general and administrative expenses (18,176)  (19,025)
Other operating expenses (344)  (52)
Operating profit / (loss)                 5,937   (3,053)
      
Finance costs (563)  (821)
Finance income 228   393 
Share of loss of associates (1)  (2)
Exchange loss (637)  1,543 
Other income 919   644 
Other expense -   (1)
Profit before tax                 5,883   (1,297)
Income tax expense (2,647)  (964)
Profit/(Loss) for the period$3,236  $(2,261)
      
Attributable to:   
Equity holders of the parent$357  $(1,974)
Non-controlling interests$2,879  $(287)
Basic and diluted profit / (loss) per share$0.03  $(0.14)
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 Sept 30,
    2020    2019  
    (Unaudited)  (Unaudited)
Profit/(Loss) for the period$3,236  $(2,261)
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
 (7,268)  4,721 
   (7,268)  4,721 
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
 (1,565)  425 
 Income tax effect 313   (85)
   (1,252)  340 
 Re-measuring losses on defined benefit plans 227   (135)
 Income tax effect (45)  27 
   182   (108)
      
Other comprehensive (loss) / income for the
year , net of tax
 (8,338)  4,953 
Total comprehensive (loss) / income for the
period, net of tax
 (5,102)  2,692 
Attributable to:   
Equity holders of the parent (3,559)  (791)
Non-controlling interests (1,543)  3,483 
   $(5,102) $2,692 
          


ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of US Dollars, except share data)
    
 As of
Sept 30, 2020
(Unaudited)
 As of
December 31, 2019
(Audited)
    
Assets   
Current assets   
Cash and cash equivalents$44,584 $53,673
Trade receivables 66,626  74,077
Other receivables 9,692  6,868
Contract assets 1,795  4,686
Due from related parties 10,471  11,566
Inventories 98,214  85,187
Prepayments 3,861  1,926
Other current assets 1,958  1,521
  237,201  239,504
Non-current assets   
Financial assets at fair value through
other comprehensive income
 2,454  4,062
Property, plant and equipment 47,370  41,747
Right of use assets 3,368  3,735
Prepaid land lease payments -  -
Investment properties 5,866  730
Intangible assets 187  128
Investments in associates accounted from
using equity method
 881  935
Deferred tax assets 4,207  3,939
Other non-current assets 3,966  4,131
  68,299  59,407
Total assets$305,500 $298,911
      


ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of US Dollars, except share data)
    
 As of
Sept 30, 2020
(Unaudited)
 As of
December 31, 2019
(Audited)
Liabilities   
Current liabilities   
Interest-bearing loans and borrowings$12,872  11,356 
Trade and other payables 18,737  16,879 
Due to related parties 10,731  3,284 
Financial liabilities at fair value through profit or loss  3 
Accruals 12,458  14,437 
Current tax liabilities 3,330  2,872 
Employee benefit liabilities 2,101  1,888 
Financial lease liabilities 564  574 
Other current liabilities 3,196  2,356 
  63,989  53,649 
    
Non-current liabilities   
Interest-bearing loans and borrowings 3,400  - 
Employee benefit liabilities 9,943  10,434 
Financial lease liabilities 1,825  2,254 
Deferred tax liabilities 4,217  4,139 
  19,385  16,827 
Total liabilities 83,374  70,476 
    
Equity   
Issued capital 138  138 
Additional paid-in capital 110,416  110,416 
Treasury shares (38) (38)
Retained earnings 53,741  53,384 
Other components of equity (13,962) (10,046)
Equity attributable to equity holders of the parent 150,295  153,854 
Non-controlling interests 71,831  74,581 
Total equity$222,126  228,435 
Total liabilities and equity$305,500  298,911 
      
      
      
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands of U.S. Dollars)
   
  For the years    
  ended Sept 30,    
  2020   2019  
  (Unaudited) (Unaudited)
 
Net cash provided by / (used in) operating activities                                                                                                                                                                                                $6,258 $(2,025)
Net cash used in investing activities (19,335) (2,945)
Net cash (used in) financing activities                   5,973  (6,476)
Effect of exchange rate on cash and cash equivalents (1,985) 1,414 
Net decrease in cash and cash equivalents (9,089) (10,032)
Cash and cash equivalents at beginning of period 53,673  60,778 
Cash and cash equivalents at end of period                                                                                                             $44,584 $50,746 
       

 


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