Published: September 02, 2010
Asia Pacific Wire & Cable Corporation Announces Second-Quarter 2010 Financial Results
TAIPEI, Taiwan , Sept. 2 /PRNewswire-Asia-FirstCall/ -- Asia Pacific Wire &
Cable Corporation Limited (OTC Bulletin Board: AWRCF) ("APWC" or the
"Company"), today announced unaudited results for the second quarter ended
June 30, 2010.
Second-Quarter 2010 Highlights:
-- Revenues increased 27.2% to $106.0 million from $83.4 million in the
second quarter of 2009
-- Gross profit increased 32.8% to $14.2 million from $10.7 million in
year-ago quarter of 2009
-- Operating income more than quintupled to $7.0 million from $1.3 million
in the second quarter of 2009
-- Net income attributable to APWC stockholders increased 61.8% to $3.7
million, or $0.27 per diluted share, from $2.3 million, or $0.17 per
diluted share, in the same period last year
-- Shareholders' equity attributable to APWC stockholders was $134.7
million as of June 30, 2010, compared to $127.4 million at the end of
2009
"The strong momentum in our business we experienced in the first quarter
of 2010 continued through the second quarter," said Mr. Chun Tang Yuan, Chief
Executive Officer of APWC. "Demand for our products continued to remain
strong-particularly for enameled wire and power cable. During the first half
of the year, the copper price has remained within a stable range. The
majority of our products and services are used in industrial, power and
telecommunications infrastructure in the growingAsia-Pacific region."
Second-Quarter 2010 Results
Net revenue for the quarter ended June 30, 2010, was $106.0 million
compared to $83.4 million for the same period in 2009, an increase of 27.2%.
The increase in revenue was attributable to a near-doubling in sales of
enameled wire, combined with a strong increase in sales of power cable, offset
by a decline in sales of telecommunications wire and cable.
Revenue from enameled wire for the three months ended June, 2010 was $51.1
million compared to $26.7 million for the same period in 2009, an increase of
92.2%. Sales of enameled wire were strong in all geographies, benefiting from
increases in tonnage and higher copper prices. Revenue from power cable was
$35.0 million compared to $25.2 million for the same period in 2009, an
increase of 38.9%. Sales of power cable were strong in all major geographies:
Thailand,Singapore, andAustralia. Revenue from telecommunication cable was
$10.0 million compared to $18.4 million for the same period in 2009, a
decrease of 45.6%, which was due to the loss of a major customer arising from
the Company's disqualification from bidding.
Revenue from the SDI (Sales, Delivery and Installation) segment for the
three months ended June 30, 2010 was $5.3 million compared to $6.5 million for
the same period in 2009, a decrease of 17.0% and is related to project timing.
A major SDI contract inSingapore for high-voltage power cable and building
wiring was completed in the second quarter of 2010.
Gross profit was $14.2 million compared to $10.7 million for the three
months ended June 30, 2009, an increase of 32.8%. The gross margin was 13.4%
compared to 12.8% for the same period last year. The primarily stems from
stable copper prices, in addition to strong cost controls, including rigorous
control over raw-material inventory.
The combination of higher revenues, gross margins, and lower operating
expenses year over year drove a 435.9% increase in operating income. The
Company recorded $2.6 million in income taxes in the second quarter of 2010,
versus a $3.2 million tax credit in the year-ago quarter. Net income per share
attributable to APWC shareholders was $3.7 million, which was a 61.8% increase
over the second quarter of 2009. Net income per diluted share was $0.27,
versus $0.17 per diluted share, in the same period last year.
First-Half 2010 Results
Revenues in the first half ended June 30, 2010 were $210.9 million, a
39.9% increase over the year-ago period. Gross profit was $25.6 million in the
first half of 2010, versus $20.4 million in the year-ago period, representing
a gross margin of 12.2% versus 13.5%, respectively. Operating income in the
first half of 2010 was $12.2 million, versus $4.7 million in the year-ago
period. Net income attributable to APWC shareholders was $7.4 million versus
$3.8 million in the year-ago period. Net income per basic and diluted share
was $0.54 in the first half of 2010, versus $0.27 in the
year-ago period.
Financial Condition
As of June 30, 2010, the Company had $43.2 million in cash and cash
equivalents, compared to $41.5 million as of December 31, 2009. Total current
assets were $266.0 million as of June 30, 2010, compared to $239.0 million at
the end of 2009, and total current liabilities were $126.5 million as of June
30, 2010, compared to $111.9 million at the end of 2009. Working capital was
$139.4 million as of June 30, 2010, versus $127.1 million at the end of 2009.
Shareholders' equity was $134.7 million, compared to $127.4 million at the end
of 2009.
Upcoming Events
The Company will attend the Brean Murray, Carret & Co. 2010 China Growth
Conference inNew York, City from November 17 - 18, 2010. Management will be
available for one-on-one meetings at 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 theAsia-Pacific region, primarily inChina,
Thailand,Singapore andAustralia. 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 (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)
June 30, December 31,
2010 2009
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $43,220 $41,534
Unrestricted short-term bank deposits -- --
Restricted short-term bank deposits 20,139 13,145
Accounts receivable 106,685 101,849
Amounts due from related parties 8,887 5,664
Inventories 79,554 69,047
Investments 65 106
Deferred tax assets 1,951 2,595
Prepaid expenses 4,594 3,928
Other current assets 912 1,180
Total current assets 266,007 239,048
Total property, plant and equipment
(net) 42,876 43,640
OTHER ASSETS:
Long term investments 598 580
Investment in equity investees 3,238 3,263
Goodwill 8,801 8,801
Other assets 141 107
Deferred tax assets 1,971 613
14,749 13,364
TOTAL ASSETS $323,632 $296,052
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Bank loans and overdrafts $25,053 $18,516
Trust receipts 33,636 18,669
Accounts payable 27,076 33,706
Accrued expenses 8,874 9,244
Amounts due to related parties 17,175 17,487
Short-term loans from a related party 1,731 1,732
Income taxes 7,173 7,059
Current portion of long-term debt -- --
Deferred tax liabilities (10) --
Other current liabilities 5,840 5,496
Total current liabilities 126,548 111,909
Long-term debt, less current portion -- --
Long-term debt from related parties, less
current portion -- --
Other liabilities 889 546
Deferred tax liabilities 1,352 1,005
Total liabilities 128,789 113,460
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 33,346 25,909
Accumulated other comprehensive
income (loss) (10,313) (10,196)
Total APWC shareholders' equity 133,034 127,392
Noncontrolling Interest 60,131 55,200
Total Equity $194,843 $182,592
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $323,632 $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) (Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2010 2009 2010 2009
Net Sales $106,007 $83,369 $210,875 $150,684
Cost of Sales (91,803) (72,676) (185,245) (130,308)
Gross Profit 14,204 10,693 25,630 20,376
Selling, general and
administrative
expenses (6,925) (8,403) (13,058) (14,210)
Provision for
doubtful debts (275) (982) (400) (1,414)
Impairment loss of
long-lived assets -- (1) -- (76)
Income from
Operations 7,004 1,307 12,172 4,676
Exchange gain
(loss) 276 (558) 1,141 (120)
Interest income 131 104 249 218
Interest expense (641) (665) (1,200) (1,433)
Share of net gain
(loss) of equity
investees 17 37 (25) 13
Gain on share
issuance by
subsidiaries and
affiliates -- -- -- --
Impairment of
investment -- -- -- --
Gain on disposal of
subsidiaries -- 554 -- 554
Other income 286 313 469 640
Income Before Taxes
and Noncontrolling
Interest 7,073 1,092 12,806 4,548
Income taxes (2,637) 3,157 (1,588) 1,958
Net Income 4,436 4,249 11,218 6,506
Less: Net income
attributable to the
noncontrolling
interest (727) (1,957) (3,780) (2,709)
Net Income
Attributable to
APWC 3,709 2,292 7,438 3,797
Basic and Diluted
Income Per Share $0.27 $0.17 $0.54 $0.27
Basic and Diluted
Weighted Average
Common Shares
Outstanding 13,830,769 13,830,769 13,830,769 13,830,769
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
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