Asia Pacific Wire & Cable Corporation Announces First-Quarter 2010 Financial Results

Revenues Increase by More than 50% and Net Income More than Doubles Versus Year-Ago Quarter

Jun 28, 2010, 08:30 ET from Asia Pacific Wire & Cable Corporation Limited

TAIPEI, Taiwan, June 28 /PRNewswire-Asia-FirstCall/ -- Asia Pacific Wire & Cable Corporation Limited (OTC Bulletin Board: AWRCF) ("APWCC" or the "Company"), today announced unaudited results for the first quarter ended March 31, 2010.

    First-Quarter 2010 Highlights:
    -- Revenues increased 55.8% to $104.9 million from $67.3 million in the
       first quarter of 2009
    -- Gross profit increased 18.0% to $11.4 million from $9.7 million
       compared with the first quarter of 2009
    -- Operating income increased 53.4% to $5.2 million from $3.4 million
       compared with the first quarter of 2009
    -- Net income attributable to APWCC stockholders increased 147.8% to $3.7
       million, or $0.27 per diluted share, from $1.5 million, or $0.11 per
       diluted share in the same period last year
    -- Shareholders' equity attributable to APWCC stockholders was $133.0
       million as of March 31, 2010, compared to $127.3 million at the end of
       2009

The Company started 2010 business year with a solid quarter exhibiting strong growth in both revenues and net income. Demand for our products remains strong-particularly for enameled wire and power cables. The majority of our products and services are used in industrial, power and telecommunications infrastructure in the growing Asia-Pacific region.

First-Quarter 2010 Results

Net revenue for the three months ended March 31, 2010, was $104.9 million compared to $67.3 million for the same period in 2009, an increase of 55.8%. The increase in revenue was primarily due to a dramatic increase in sales of enameled wire, which more than doubled year over year. Sales of power cable were also robust.

Revenue from enameled wire for the three months ended March 31, 2010 was $49.5 million compared to $19.1 million for the same period in 2009, an increase of 158.6%. Sales of enameled wire increased in two major geographic markets: Thailand and China. Revenue from telecommunication cable was $10.7 million compared to $13.1 million for the same period in 2009, a decrease of 17.7%, which was primarily due to lower sales of fiber-optic cable. Revenue from power cable was $29.6 million compared to $24.4 million for the same period in 2009, an increase of 21.1%. The increase in power cable sales was largely due to higher sales in Singapore and Australia versus slightly lower sales in Thailand.

Revenue from the SDI (Sales, Delivery and Installation) segment for the three months ended March 31, 2010 was $7.4 million compared to $2.0 million for the same period in 2009, an increase of 275.8%. This increase was largely due to several government-sponsored projects in Singapore. APWCC's largest SDI project in Singapore is with the government agency SP Powerasset, a $25.1 million contract for the supply and servicing of high-voltage power cable through 2011. A second major SDI contract in Singapore is for high-voltage power cable and building wiring and it was completed in May 2010.

Gross profit was $11.4 million compared to $9.7 million for the three months ended March 31, 2009, an increase of 18.0%. The gross margin was 10.9% compared to 14.4% for the same period last year. Despite the decrease in gross margin in Q1 2010, the significant increase in overall revenue resulted in higher gross profit coupled with the Company's efforts in controlling cost, including rigorous control over raw-material inventory.

The combination of higher revenues, lower gross margins, and basically flat operating expenses year over year led to a 53.4% increase in operating income. Higher currency exchange gains, lower interest expense, and a tax credit more than offset higher income attributable to non-controlling interests, leading to net income per share attributable to APWCC shareholders of $3.7 million, which was a 147.8% increase over the first quarter of 2009. Net income per diluted share was $0.27, versus $0.11 per diluted share, in the same period last year.

Financial Condition

As of March 31, 2010, the Company had $46.4 million in cash and cash equivalents, compared to $41.5 million as of December 31, 2009. Total current assets were $259.3 million as of March 31, 2010, compared to $239.0 million at the end of 2009, and total current liabilities were $122.4 million as of March 31, 2010, compared to $111.9 million at the end of 2009. Working capital was $137.0 million versus $127.1 million at the end of 2009. Shareholders' equity was $133.0 million, compared to $127.4 million at the end of 2009. Cash from operations was $3.3 million, versus an outflow of $8.8 million in the year-ago quarter.

Business Outlook

The Company has enjoyed the recovery that began in 2009 and continued through the first quarter of 2010. Looking ahead, the Company expects to report continued year-over-year growth in revenues and earnings in our second quarter ended June 30, 2010. The Company is looking forward to meeting with investors at Global Hunter's 2010 China Conference in San Francisco on Tuesday, July 13, and in one-on-one meetings before and after the conference.

About Asia Pacific Wire & Cable Corporation

Asia Pacific Wire & Cable Corporation is a leading manufacturer and distributor of telecommunications (copper and fiber-optic) and power cable and enameled-wire products in the Asia-Pacific region, primarily in China, Thailand, Singapore and Australia. 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, and 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 ( http://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.

                          (financial tables follow)


        ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS
                          (In thousand U.S. Dollars)

                                             (Unaudited)           (Audited)
                                               March 31,          December 31,
                                                  2010                2009
                 ASSETS

    CURRENT ASSETS:
    Cash and cash equivalents                    $46,383             $41,534
    Unrestricted Short-term bank
     deposits                                         --                  --
    Restricted Short-term bank
     deposits                                     16,464              13,145
    Accounts receivable                          101,423             101,849
    Amounts due from related parties               5,744               5,664
    Inventories                                   78,540              69,047
    Investments                                       76                 106
    Deferred tax assets                            3,922               2,595
    Prepaid expenses                               5,569               3,928
    Other current assets                           1,213               1,180

    Total current assets                         259,334             239,048

    Total property, plant and
     equipment (net)                              43,614              43,640

    OTHER ASSETS:
    Long term investments                            600                 580
    Investment in equity investees                 3,220               3,263
    Goodwill                                       8,801               8,801
    Other assets                                     142                 107
    Deferred tax assets                            1,743                 613
                                                  14,506              13,364

    TOTAL ASSETS                                $317,454            $296,052


            LIABILITIES AND SHAREHOLDERS' EQUITY

    CURRENT LIABILITIES:
    Bank loans and overdrafts                    $23,316             $18,516
    Trust receipts                                27,334              18,669
    Accounts payable                              29,662              33,706
    Accrued expenses                              10,271               9,244
    Amounts due to related parties                17,632              17,487
    Short-term loans from a related party          1,732               1,732
    Income taxes                                   7,384               7,059
    Current portion of long-term debt                 --                  --
    Deferred tax liabilities                          58                  --
    Other current liabilities                      4,979               5,496

    Total current liabilities                    122,368             111,909

    Long-term debt, less current portion              --                  --
    Long-term debt from related
     parties, less current portion                    --                  --
    Other liabilities                                607                 546
    Deferred tax liabilities                       1,647               1,005

    Total liabilities                            124,622             113,460

    Commitments and contingencies

    SHAREHOLDERS' EQUITY:
    Common stock, $0.01 par value:
      Authorized shares - 50,000,000 shares
      Issued and outstanding shares
      - 13,830,769 in 2008 and 2009                  138                 138
      Additional paid-in capital                 111,541             111,541
    Retained earnings                             29,638              25,909
    Accumulated other comprehensive
     income (loss)                                (8,283)            (10,196)

    Total APWCC shareholders' equity             133,034             127,392

    Noncontrolling Interest                       59,798              55,200

    Total Equity                                $192,832            $182,592

    TOTAL LIABILITIES AND SHAREHOLDERS'
     EQUITY                                     $317,454            $296,052


    NET BOOK VALUE PER SHARE                       $9.62               $9.21

    ISSUED AND OUTSTANDING SHARES             13,830,769          13,830,769



        ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                (In thousand U.S. Dollars, except share data)

                                                           (Unaudited)
                                                    3 months ended March 31,
                                                        2010           2009
    NET SALES                                        $104,868        $67,315
    COST OF SALES                                     (93,442)       (57,632)
    GROSS PROFIT                                       11,426          9,683

    Selling, general and administrative
     expenses                                          (6,133)        (5,807)
    Provision for doubtful debts                         (125)          (432)
    Impairment loss of long-lived assets                   --            (75)

    INCOME FROM OPERATIONS                              5,168          3,369

    Exchange gain (loss)                                  865            438
    Interest income                                       118            114
    Interest expense                                     (559)          (768)
    Share of net gain (loss) of equity investees          (42)           (24)
    Gain on share issuance by subsidiaries and
     affiliates                                            --             --
    Impairment of investment                               --             --
    Gain on disposal of subsidiaries (Epan
     group)                                                --             --
    Other income                                          183            327

    INCOME BEFORE TAXES AND
     NONCONTROLLING INTEREST                            5,733          3,456

    Income taxes                                        1,049         (1,199)

    NET INCOME                                          6,782          2,257

    Less: Net income attributable to the
     noncontrolling Interest                           (3,053)          (752)

    NET INCOME ATTRIBUTABLE TO APWCC                   $3,729         $1,505

    BASIC AND DILUTED INCOME PER SHARE                   0.27           0.11

    BASIC AND DILUTED WEIGHTED AVERAGE
     COMMON SHARES OUTSTANDING                     13,830,769     13,830,769



        ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                (In thousand U.S. Dollars, except share data)

                                                    3 months ended March 31,
                                                      2010            2009
     Net Income (Loss)                               $3,729          $1,505

     Adjustments to reconcile net income
      (loss) to net cash
     Loss on writedown of goodwill/intangible            --              --
     Impairment of fixed assets                          --              75
     Deferred Income tax                             (1,756)          1,036
     Foreign currency gains                            (311)            (47)
     Depreciation of Property and Equipment           1,679           1,584
     Provision for Bad Debt                             125             432
     Gain/loss on sale of fixed assets                  (18)             (6)
     Write-down of inventory                           (678)        (13,491)
     Gain on sales of investment                         --              --
     Unrealized loss on securities available
      of sale                                            --              --
     Undistributed loss of equity investees              43              24
     Recognized under SFAS 158                         (327)             --
         Provision for diminution in
          investments                                    --              --
     Non-controlling interests                        3,053             752
     Net change in operating asset and
      liabilities:                                       --              --
       Accounts and notes receivable                  1,973          16,631
       Inventory                                     (7,287)         27,072
           Deposits with vendors                         --              --
           Other current assets                      (1,635)           (341)
           Other long term assets                       202            (575)
           Accounts payable                          (4,157)        (20,890)
           Trust receipts                             7,861             959
           Related parties                              119         (23,066)
           Other Liabilities                           (514)            429
           Accrued expenses and other
            liabilities                               1,220            (919)
     Net cash provided by (used in)
      operating activities:                           3,321          (8,838)

     Cash flows from investing activities:
     (Increase) decrease in unrestricted ST
      bank deposits                                      --          (5,609)
     (Increase) decrease in restricted ST
      bank deposits                                  (3,056)          1,793
     Investment (decrease investment) in
      equity investee                                    --              --
     Acquisition of plant and equipment                (862)           (369)
     Acquisition of equipment produced for
      rental
     Payments received on notes receivable
     Disposition of plant and equipment                  27              24
     Net cash from investing activities              (3,892)         (4,161)

     Cash flows from financing activities:
         Repayment of bank loans                         (3)         (2,388)
         Increase in bank loans                       4,800           4,751
         Net increase (decrease) in
          overdrafts                                     --              --
        Net cash provided by financing
         activities                                   4,797           2,363

     Effect of exchange rate changes on cash            624             570

     Increase (decrease) in cash                      4,850         (10,066)

     Cash balance at beginning of period             41,534          37,510

    Cash and equivalents at end of period           $46,384         $27,444


    For more information, please contact:

    Company Contact:
     Asia Pacific Wire & Cable Corporation Limited
     Mr. Frank Tseng, CFO
     Phone: +886-2-2712-2558 x66
     Email: frank.tseng@apwcc.com
     Web:   http://www.apwcc.com

    Investor Relations Contact:
     CCG Investor Relations
     Mr. John Harmon, Senior Account Manager
     Phone: +1-646-833-3424 (New York)
     Email: john.harmon@ccgir.com
     Web:   http://www.ccgir.com

SOURCE Asia Pacific Wire & Cable Corporation Limited



RELATED LINKS

http://www.apwcc.com