Asia Pacific Wire & Cable Corporation Announces Second-Quarter and First-Half 2011 Results

* Second-Quarter Revenues Increased by 40.3% from the Year-ago Quarter

* First-Half Revenues Increased by 28.3% Versus Year-ago First Half

* To Hold Annual General Meeting of Shareholders on October 7

Sep 16, 2011, 07:00 ET from Asia Pacific Wire & Cable Corporation Limited

TAIPEI, Sept. 16, 2011 /PRNewswire-Asia-FirstCall/ -- Asia Pacific Wire & Cable Corporation Limited (NASDAQ: APWC) ("APWC" or the "Company"), today announced unaudited consolidated results for the second quarter and first half ended June 30, 2011.

The Company reported strong financial results in the second quarter and the first half of 2011 in spite of a slight decrease in the copper price. The majority of the Company's products and services are used in industrial, power and telecommunications infrastructure in the growing Asia-Pacific region.

Second-Quarter 2011 Financial Highlights:

  • Revenues were $148.7 million, an increase of 40.3% from $106.0 million in the same period a year ago, and an increase of 22.1% from $121.8 million in the first quarter of 2011
  • Gross profit increased to $16.4 million, an increase of 15.1% from $14.2 million from the second quarter of 2010, and 26.1% from $13.0 million in the prior quarter
  • Gross profit margin was 11.0%, compared with 13.4% in the year-ago period, and 10.6% in the first quarter of 2011
  • Net income attributable to APWC shareholders was $2.4 million, compared with $3.7 million in the same period a year ago, and $2.8 million in the first quarter of 2011
  • Basic and diluted earnings per share were $0.17, compared with $0.27 in the second quarter of 2010, and $0.20 in the first quarter of 2011

Second-Quarter 2011 Results

Revenues were $148.7 million, a 40.3% increase over the second quarter of 2010 and a 22.1% increase over the first quarter of 2011. Gross profit was $16.4 million, an increase of 15.1% from $14.2 million in the year-ago quarter, and an increase of 26.1% from $13.0 million in the first quarter. The gross margin was 11.0%, compared with 13.4% in year-ago quarter, and 10.6% in the first quarter. Operating income was $6.8 million, versus $7.0 million in the year-ago quarter and $5.9 million in the first quarter, a slight decrease of 2.6% year over year and a sequential increase of 15.9%. Selling, general and administrative expenses were $9.9 million, an increase of 42.8% from the year-ago quarter and 39.5% increase from the first quarter. Pretax income was $6.2 million, versus $7.1 million in the year-ago quarter and $5.8 million in the first quarter. Income tax expense was $2.6 million, as compared to $2.6 million in the year-ago quarter and $ 2.0 million in the first quarter. The tax rate was 40.9%, as compared to 37.3% in the year-ago quarter and 33.8% in the first quarter. Net income attributable to APWC shareholders was $2.4 million versus $3.7 million in the year-ago quarter and $2.8 million in the first quarter. Net income per basic and diluted share was $0.17, versus $0.27 in the year-ago quarter and $0.20 in the first quarter.

First-Half 2011 Results

Revenues in the first half ended June 30, 2011 were $270.5 million, a 28.3% increase over the year-ago period. Gross profit was $29.3 million in the first half, up 14.4% from $25.6 million in the year-ago period, representing a gross margin of 10.8% versus 12.2%, respectively. Operating income in the first half was $12.7 million, versus $12.2 million in the year-ago period, an increase of 4.5%. SG&A expense was $17.0 million in the first half, an increase of 30.0% or $3.9 million from the same period last year at $13.1 million. Net income attributable to APWC shareholders was $5.1 million in the first half versus $7.4 million in the year-ago period. Net income per basic and diluted share was $0.37 in the first half, versus $0.54 in the year-ago period.

Financial Condition

As of June 30, 2011, APWC had $75.5 million in cash and cash equivalents and $1.0 million in unrestricted short-term bank deposits, totaling $76.5 million, compared to cash and equivalents of $63.2 million as of December 31, 2010. Total current assets were $370.2 million as of June 30, 2011, compared to $329.5 million at the end of 2010, and total current liabilities were $191.2 million as of June 30, 2011, compared to $158.8 million at the end of 2010. Working capital was $179.0 million as of June 30, 2011, versus $170.7 million at the end of 2010. Shareholders' equity attributable to APWC was $159.5 million, compared to $153.2 million at the end of 2010. Net book value per share increased to $11.53 from $11.08 per share at the end of 2010.

Annual General Meeting

Separately, the Company has announced its annual general meeting of shareholders as follows:

Date:

Friday, October 7, 2011

Time:

9:00 p.m. (Taipei time) / 9:00 a.m. (Eastern Daylight Time / New York time)

Location:

132 Min-Sheng East Road, Section 3, Room B, 7th Fl., Taipei, 105 Taiwan, ROC

The Meeting is being held for the purposes below, and additional details as set forth in the Notice of Meeting and related proxy statement that were mailed to shareholders on or about September 7, 2011.

  1. To approve the total number of directorships and to reserve one casual vacancy, which vacancy may be filled by the Board of Directors of the Company in the future;
  2. To elect the directors of the Company;
  3. To approve the compensation of the directors of the Company;
  4. To approve the reappointment of Ernst & Young as the independent auditor of the Company for the 2011 fiscal year;
  5. To consider such other matters as may be appropriately brought before the Shareholders;
  6. To report on the Company's performance in 2010 and certain unaudited financial results for the first six months of 2011; and
  7. To conduct a Question and Answer session with the Shareholders.

The record date for shareholders wishing to participate in the Meeting was August 29, 2011. All shareholders of record as of that date are entitled to one vote per share on all matters put to shareholders at the Meeting, all as more fully described in the Notice of Meeting and related proxy statement that are being provided to shareholders of record.

Shareholders not able to attend the Meeting in person will be invited to participate by conference telephone by dialing into the Meeting on one of the conference call-in numbers that is provided in the Notice of Meeting. After the meeting, shareholders will have access to an audio recording of the Meeting for up to one week by dialing one of the following numbers and providing the re-play passcode:

International Toll: 719-457-0820 US/Canada Toll free: 888-203-1112  SoundByte Replay Passcode: 6795400

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.

- financial tables follow -

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Amounts in thousands of US Dollars, except share data)

For the three-months ended

For the six-months ended June 30,

June 30,

March 31,

2010

2011

2011

2010

2011

Net sales

Manufactured products (sales to related parties amounted to $1,473 in 2010 and $2,514 in 2011)

$96,279

$132,089

$108,473

$186,027

$240,562

Distributed products

4,364

9,953

7,195

12,118

17,148

Sales, delivery and installation of wires and cables

5,364

6,689

6,134

12,730

12,823

106,007

148,731

121,802

210,875

270,533

Cost of sales (purchases from related parties totaled $21,428 in 2010 and $29,416 in 2011)

(91,803)

(132,378)

(108,831)

(185,245)

(241,208)

Gross profit

14,204

16,353

12,971

25,630

29,325

Selling, general and administrative expenses

(6,925)

(9,889)

(7,087)

(13,058)

(16,976)

Allowance for doubtful debts

(275)

360

5

(400)

365

Income from operations

7,004

6,824

5,890

12,172

12,714

Exchange gain, net

276

(111)

153

1,141

42

Interest income

131

346

306

249

652

Interest expense

(641)

(990)

(805)

(1,200)

(1,795)

Loss on disposal of an investment

17

15

(68)

Share of net gain (loss) of equity investees

(25)

15

Other income, net

286

217

274

469

491

Income before income taxes

7,073

6,233

5,818

12,806

12,051

Income taxes expense

(2,637)

(2,551)

(1,967)

(1,588)

(4,518)

Net income

4,436

3,682

3,851

11,218

7,533

Less: Net income attributable to non-controlling interests

(727)

(1,330)

(1,065)

(3,780)

(2,395)

Net income attributable to APWC

3,709

2,352

2,786

7,438

5,138

Basic and diluted income per share

0.27

0.17

0.20

0.54

0.37

Basic and diluted weighted average common shares outstanding

13,830,769

13,830,769

13,830,769

13,830,769

13,830,769

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands of US Dollars, except share data)

December 31, 2010

June 30, 2011

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$63,217

$75,494

Unrestricted short-term bank deposits

-

972

Restricted short-term bank deposits

17,422

17,473

Accounts receivable, net of allowance for doubtful accounts of $6,886 at December 31, 2010 and $6,052 at June 30, 2011 (unaudited)

144,454

149,415

Amounts due from related parties

8,246

7,535

Inventories, net of allowance for inventories of $2,315 at December 31, 2010 and $1,574 at June 30, 2011 (unaudited)

Distributed products

639

1,498

Finished products

32,781

44,950

Consignment inventory

3,051

5,007

Products in process

19,108

23,090

Raw materials and supplies

30,401

32,964

85,980

107,509

Deferred tax assets

3,320

2,980

Prepaid expenses

5,514

6,470

Other current assets

1,308

2,388

Total current assets

329,461

370,236

Property, plant and equipment:

Land

6,291

6,178

Land use rights

2,999

3,043

Buildings

50,199

50,474

Machinery and equipment

126,906

127,406

Motor vehicles

4,431

4,615

Office equipment

6,915

7,182

Construction in progress

212

636

197,953

199,534

Accumulated depreciation and amortization

(154,052)

(154,757)

Property, plant and equipment, net

43,901

44,777

Available-for-sales investments  

744

636

Investment in equity investees

3,242

3,257

Goodwill

8,801

8,801

Other assets

97

149

Deferred tax assets

677

684

13,561

13,527

Total assets

$386,923

$428,540

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Bank loans and overdrafts

$  67,351

$ 95,983

Accounts payable

41,989

48,734

Accrued expenses

13,197

9,960

Amounts due to related parties

17,140

17,231

Short-term loans from the immediate holding

1,732

1,732

Income taxes liabilities

10,627

10,202

Other current liabilities

6,772

7,356

Total current liabilities

158,808

191,198

Long-term loan

-

5,000

Other liabilities

822

851

Deferred tax liabilities

1,581

1,582

Total liabilities

161,211

198,631

Commitments and contingencies

APWC Shareholders' equity:

Common stock, $0.01 par value:

Authorized shares of 50,000,000 shares at December 31, 2010 and June 30, 2011

Issued and outstanding shares - 13,830,769 shares

138

138

Additional paid-in capital

111,541

111,541

Retained earnings

40,229

45,367

Accumulated other comprehensive income

1,286

2,426

Total APWC shareholders' equity

153,194

159,472

Non-controlling interests

72,518

70,437

Total shareholders' equity

225,712

229,909

Total liabilities and shareholders' equity

$  386,923

$  428,540

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. Dollars)

Three-Month Period Ended June 30, (Unaudited)

2010

2011

Net cash provided by (used in) operating activities

($9,906)

($13,142)

Net cash provided by (used in) investing activities

(8,753)

(4,785)

Net cash provided by (used in) financing activities

20,981

34,172

Effect of exchange rate changes on cash and cash

  equivalents

(636)

(3,968)

Net increase (decrease) in cash and cash

  equivalents

1,686

12,277

Cash and cash equivalents at beginning of period

341,534

63,217

Cash and cash equivalents at end of period

$43,220

$75,494

Company Contact:

Investor Relations Contact:

Asia Pacific Wire & Cable Corporation Limited

CCG Investor Relations

Mr. Frank Tseng, CFO

Mr. John Harmon, CFA, Senior Account Manager

Phone: +886-2-2712-2558 ext. 66

Phone: +86-10-6561-6886 ext. 807 (Beijing)

E-mail: frank.tseng@apwcc.com

E-mail: john.harmon@ccgir.com

SOURCE Asia Pacific Wire & Cable Corporation Limited



RELATED LINKS

http://www.apwcc.com