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Asia Pacific Wire & Cable Corporation Ltd. Reports First Quarter 2019 Financial Results

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TAIPEI, Taiwan, June 26, 2019 (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 three months ended March 31, 2019. Unless otherwise indicated, all data are reported in US Dollars at the exchange rate prevailing on the date of the event or result reported.

First Three Months 2019 Financial Results (Ended March 31, 2019)

First 3 Months 2019

First 3 Months 2018

CHANGE

Revenues

$

81.6 million

$

106.1 million

(23.1)%

Gross Profit

$

6.0 million

$

7.9 million

(24.9)%

Net Income (Loss)

$

(0.67) million

$

0.09 million

(875.6)%

EPS(1)

$

(0.05)

$

0.01

(600.0)%

(1)The calculation of the earnings per share is based on 13,819,669 and 13,819,669 basic and diluted weighted common shares issued and outstanding for the three months ended March 31, 2019 and 2018, respectively.

First Three Months 2019 Results

Net revenues for the three months ended March 31, 2019, were $81.6 million, a decrease of 23.1% from $106.1 million in the prior year. 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 9.8%, primarily due to less projects from the public sector. Revenues in the Company's North Asia region decreased by 29.9%, primarily due to negative impact of the trade war between the United States and China. Revenues in the Company's Rest of World ("ROW") region decreased by 23.1%, primarily due to intense competition. The Company's North Asia region includes China and Hong Kong; the Thailand region contains the operations and sales inside 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 three months ended March 31, 2019 decreased by 110.5% to $(0.2) million from $1.8 million in the same period last year. Operating margin decreased by 113.6%, declining from 1.7% in 2018 to (0.2)% in 2019. In the Thailand region, operating margin declined from 3.6% to 1.4%, which was attributable primarily to decreases in sales of higher margin products and increases in the advertising & sales promotion expenditures in an effort to expand the market. In the North Asia region, operating margin decreased slightly, primarily due to a decrease in revenue. The ROW region’s operating margin decrease in 2019 was primarily attributable to a decrease in revenue in the region.

Selling, general and administrative expenses for the first quarter of 2019 were $6.4 million, compared to $6.4 million reported in the first quarter of 2018. Net loss attributable to APWC shareholders was $(0.67) million for the first quarter of 2019, compared to net income of $0.09 million in the same period in 2018. The decrease in net income was primarily due to a decrease in revenue. The weighted average number of shares issued and outstanding was 13.82 million for the three months ended March 31, 2019 and 2018.

Financial Condition

APWC reported $64.0 million in cash and cash equivalents as of March 31, 2019, compared to cash and cash equivalents of $60.8 million as of December 31, 2018.

Current assets totaled $255.1 million as of March 31, 2019, compared to $254.1 million as of December 31, 2018. Working capital was $184.1 million as of March 31, 2019. Short term bank loans were $22.5 million at March 31, 2019, a decrease from $24.8 million at the end of 2018. The Company had no long-term debt outstanding at March 31, 2019. Shareholder's equity attributable to APWC was $151.7 million as of March 31, 2019, compared to $150.0 million as of December 31, 2018.

APWC reported $6.7 million cash generated from operations during the three months ended March 31, 2019, compared to cash generated from operations of $14.3 million in the corresponding period in 2018. The decrease in cash generated from operations in 2019 was primarily attributable to increase in inventory and a decrease in net profit. The Company reported $1.4 million in cash outflows from investing activities during the three months ended March 31, 2019, compared to $1.0 million in cash outflows in the same period of 2018. The cash used more for investing activities in the first quarter of 2019 was attributable primarily to the increase in purchases of property, plant and equipment in the Thailand region. APWC reported $2.9 million in cash outflows from financing activities during the first quarter of 2019, compared to $7.9 million in cash outflows from financing activities in the same period of 2018. The decrease in cash outflows in 2019 was primarily attributable to a decrease in the repayment of bank loans.

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 ("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.

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" 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.

Contact:
Investor Relations Contact:
Asia Alpha Investor Relations
Lisa A. Gray
Partner & Senior Account Manager
Phone: +1-212-989-9899
Email: lisa@asiaalphair.com
Web: https://asiaalphair.com/

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

(Unaudited)

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

For the three months

ended March 31,

2019

2018

(Unaudited)

(Unaudited)

Revenue

$

81,601

$

106,076

Cost of sales

(75,641

)

(98,141

)

Gross profit

5,960

7,935

Other operating income

397

421

Selling, general and administrative expenses

(6,387

)

(6,449

)

Other operating expenses

(155

)

(141

)

Operating (loss)/profit

(185

)

1,766

Finance costs

(286

)

(333

)

Finance income

139

89

Share of loss of associates

(1

)

-

Exchange (loss) gain

(165

)

345

Other income

546

134

Other expense

-

(1

)

Profit before tax

48

2,000

Income tax expense

(430

)

(906

)

(Loss)/Profit for the period

$

(382

)

$

1,094

Attributable to:

Equity holders of the parent

$

(667

)

$

86

Non-controlling interests

$

285

$

1,008

Basic and diluted earnings per share

$

(0.05

)

$

0.01

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 three months

ended March 31,

2019

2018

(Unaudited)

(Unaudited)

(Loss)/Profit for the period

$

(382

)

$

1,094

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

3,615

7,580

3,615

7,580

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

(123

)

212

Income tax effect

25

(42

)

(98

)

170

Re-measuring losses on defined benefit plans

(41

)

(84

)

Income tax effect

8

17

(33

)

(67

)

Other comprehensive income for the year , net of tax

3,484

7,683

Total comprehensive income for the period, net of tax

3,102

8,777

Attributable to:

Equity holders of the parent

1,923

4,742

Non-controlling interests

1,179

4,035

$

3,102

$

8,777


ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands of US Dollars, except share data)

As of
March 31, 2019
(Unaudited)

As of
December 31, 2018
(Audited)

Assets

Current assets

Cash and cash equivalents

$

63,998

$

60,778

Financial assets at fair value through profit or loss

63

-

Trade receivables

72,080

79,617

Other receivables

8,792

12,422

Contract assets

1,332

1,460

Due from related parties

12,346

12,061

Inventories

92,472

83,925

Prepayments

1,175

1,140

Other current assets

2,841

2,745

255,099

254,148

Non-current assets

Financial assets at fair value through other comprehensive income

2,222

2,332

Property, plant and equipment

41,969

41,418

Right of use assets

3,680

-

Prepaid land lease payments

-

978

Investment properties

725

720

Intangible assets

155

157

Investments in associates accounted from using equity method

879

864

Deferred tax assets

4,093

3,919

Other non-current assets

1,733

1,262

55,456

51,650

Total assets

$

310,555

$

305,798


ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands of US Dollars, except share data)

As of
March 31, 2019
(Unaudited)

As of
December 31, 2018
(Audited)

Liabilities

Current liabilities

Interest-bearing loans and borrowings

$

22,492

$

24,814

Trade and other payables

23,258

21,127

Due to related parties

2,652

2,997

Financial liabilities at fair value through profit or loss

-

142

Accruals

13,349

14,197

Current tax liabilities

4,080

3,863

Employee benefit liabilities

1,543

1,282

Financial lease liabilities

358

44

Other current liabilities

3,218

3,272

70,950

71,738

Non-current liabilities

Employee benefit liabilities

8,370

8,273

Financial lease liabilities

2,308

46

Deferred tax liabilities

4,009

3,925

14,687

12,244

Total liabilities

85,637

83,982

Equity

Issued capital

138

138

Additional paid-in capital

110,376

110,376

Treasury shares

(38

)

(38

)

Retained earnings

54,349

55,016

Other components of equity

(13,159

)

(15,464

)

Equity attributable to equity holders of the parent

151,666

150,028

Non-controlling interests

73,252

71,788

Total equity

$

224,918

$

221,816

Total liabilities and equity

$

310,555

$

305,798



ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands of U.S. Dollars)

For the three months

ended March 31,

2019

2018

(Unaudited)

(Unaudited)

Net cash provided by operating activities

$

6,732

$

14,349

Net cash used in investing activities

(1,367

)

(974

)

Net cash used in financing activities

(2,887

)

(7,925

)

Effect of exchange rate on cash and cash equivalents

742

2,463

Net increase in cash and cash equivalents

3,220

7,913

Cash and cash equivalents at beginning of period

60,778

46,093

Cash and cash equivalents at end of period

$

63,998

$

54,006