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

Published on Thursday, 02 September 2010 16:17 Written by TradersHuddle Staff

-- Revenues Increase by More than 25% and Net Income Increases by More than 60% Versus Year-Ago Quarter

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 growing Asia-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, and Australia. 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 in Singapore 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 in New 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 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 (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: 
 This e-mail address is being protected from spambots. You need JavaScript enabled to view it.
 
     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: 
 This e-mail address is being protected from spambots. You need JavaScript enabled to view it.
 
     Web:   http://www.ccgir.com

SOURCE Asia Pacific Wire & Cable Corporation Limited