Asia Pacific Wire & Cable Corporation Ltd. Reports Third Quarter 2020 Financial Results
Asia Pacific Wire & Cable Corporation Limited (NASDAQ: APWC) announced a 17% decline in revenues, totaling $207.2 million for the nine months ended September 30, 2020, compared to $249.7 million in 2019. Despite lower revenues, the company reported a significant increase in operating profit to $5.9 million from a loss of $3.1 million, and net income rose to $0.4 million versus a net loss of $2.0 million in 2019. Improvements in gross profit and operational efficiency were noted, though cash and cash equivalents decreased from $53.7 million in late 2019 to $44.6 million by September 2020.
- Operating profit increased to $5.9 million from a loss of $(3.1) million year-over-year.
- Net income rose to $0.4 million compared to a net loss of $(2.0) million in the previous year.
- Cash generated from operations improved significantly to $6.3 million from cash used in operations of $(2.0) million.
- Total revenues decreased by 17% from $249.7 million in 2019 to $207.2 million in 2020.
- Cash and cash equivalents declined from $53.7 million at the end of 2019 to $44.6 million by September 2020.
- Short-term bank loans increased from $11.4 million at the end of 2019 to $12.9 million in September 2020.
TAIPEI, Taiwan, Jan. 04, 2021 (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 nine months ended September 30, 2020. Unless otherwise indicated, all data are reported in U.S. Dollars at the exchange rate prevailing on the date of the event or result reported.
First Nine Months 2020 Financial Results (Ended September 30, 2020), and 2019 comparative results | |||||||
First 9 Months 2020 | First 9 Months 2019 | CHANGE | |||||
Revenues | $ | 207.2 million | $ | 249.7 million | (17.0)% | ||
Operating Profit/(Loss) | $ | 5.9 million | $ | (3.1) million | |||
Net Income/(Loss) | $ | 0.4 million | $ | (2.0) million | |||
EPS(1) | $ | 0.03 | $ | (0.14) | |||
(1)The calculation of the earnings per share is based on 13,819,669 and 13,819,669 basic and diluted weighted average common shares issued and outstanding for the nine months ended September 30, 2020 and 2019, respectively. |
First Nine Months 2020 Results
Revenues for the nine months ended September 30, 2020, were
Operating profit for the nine months ended September 30, 2020 increased to
Selling, general and administrative expenses for the nine months ended September 30, 2020 were
Financial Condition
APWC reported
Current assets totaled
APWC reported
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 manufactured by its principal shareholder, Pacific Electric Wire & Cable Company, a Taiwanese company. 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", “estimates”, “intends”, “plans” 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 believed, anticipated, expected, estimated, intended or planned. 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: Skyline Corporate Communications Group, LLC Lisa Gray, Senior Account Manager One Rockefeller Plaza, 11th Floor New York, NY 10020 Office: (646) 893-5835 Email: lisa@skylineccg.com |
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES | |||||||||
CONSOLIDATED INCOME STATEMENTS | |||||||||
(Unaudited) | |||||||||
(Amounts in thousands of US Dollars, except share data) | |||||||||
For the nine months | |||||||||
ended Sept 30, | |||||||||
2020 | 2019 | ||||||||
(Unaudited) | (Unaudited) | ||||||||
Revenue | $ | 207,204 | $ | 249,659 | |||||
Cost of sales | (183,197 | ) | (234,585 | ) | |||||
Gross profit | 24,007 | 15,074 | |||||||
Other operating income | 450 | 950 | |||||||
Selling, general and administrative expenses | (18,176 | ) | (19,025 | ) | |||||
Other operating expenses | (344 | ) | (52 | ) | |||||
Operating profit / (loss) | 5,937 | (3,053 | ) | ||||||
Finance costs | (563 | ) | (821 | ) | |||||
Finance income | 228 | 393 | |||||||
Share of loss of associates | (1 | ) | (2 | ) | |||||
Exchange loss | (637 | ) | 1,543 | ||||||
Other income | 919 | 644 | |||||||
Other expense | - | (1 | ) | ||||||
Profit before tax | 5,883 | (1,297 | ) | ||||||
Income tax expense | (2,647 | ) | (964 | ) | |||||
Profit/(Loss) for the period | $ | 3,236 | $ | (2,261 | ) | ||||
Attributable to: | |||||||||
Equity holders of the parent | $ | 357 | $ | (1,974 | ) | ||||
Non-controlling interests | $ | 2,879 | $ | (287 | ) | ||||
Basic and diluted profit / (loss) per share | $ | 0.03 | $ | (0.14 | ) | ||||
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 nine months | |||||||||
ended Sept 30, | |||||||||
2020 | 2019 | ||||||||
(Unaudited) | (Unaudited) | ||||||||
Profit/(Loss) for the period | $ | 3,236 | $ | (2,261 | ) | ||||
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 | (7,268 | ) | 4,721 | ||||||
(7,268 | ) | 4,721 | |||||||
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 | (1,565 | ) | 425 | ||||||
Income tax effect | 313 | (85 | ) | ||||||
(1,252 | ) | 340 | |||||||
Re-measuring losses on defined benefit plans | 227 | (135 | ) | ||||||
Income tax effect | (45 | ) | 27 | ||||||
182 | (108 | ) | |||||||
Other comprehensive (loss) / income for the year , net of tax | (8,338 | ) | 4,953 | ||||||
Total comprehensive (loss) / income for the period, net of tax | (5,102 | ) | 2,692 | ||||||
Attributable to: | |||||||||
Equity holders of the parent | (3,559 | ) | (791 | ) | |||||
Non-controlling interests | (1,543 | ) | 3,483 | ||||||
$ | (5,102 | ) | $ | 2,692 | |||||
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES | |||||
CONSOLIDATED BALANCE SHEETS | |||||
(In thousands of US Dollars, except share data) | |||||
As of Sept 30, 2020 (Unaudited) | As of December 31, 2019 (Audited) | ||||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | $ | 44,584 | $ | 53,673 | |
Trade receivables | 66,626 | 74,077 | |||
Other receivables | 9,692 | 6,868 | |||
Contract assets | 1,795 | 4,686 | |||
Due from related parties | 10,471 | 11,566 | |||
Inventories | 98,214 | 85,187 | |||
Prepayments | 3,861 | 1,926 | |||
Other current assets | 1,958 | 1,521 | |||
237,201 | 239,504 | ||||
Non-current assets | |||||
Financial assets at fair value through other comprehensive income | 2,454 | 4,062 | |||
Property, plant and equipment | 47,370 | 41,747 | |||
Right of use assets | 3,368 | 3,735 | |||
Prepaid land lease payments | - | - | |||
Investment properties | 5,866 | 730 | |||
Intangible assets | 187 | 128 | |||
Investments in associates accounted from using equity method | 881 | 935 | |||
Deferred tax assets | 4,207 | 3,939 | |||
Other non-current assets | 3,966 | 4,131 | |||
68,299 | 59,407 | ||||
Total assets | $ | 305,500 | $ | 298,911 | |
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(In thousands of US Dollars, except share data) | ||||||
As of Sept 30, 2020 (Unaudited) | As of December 31, 2019 (Audited) | |||||
Liabilities | ||||||
Current liabilities | ||||||
Interest-bearing loans and borrowings | $ | 12,872 | 11,356 | |||
Trade and other payables | 18,737 | 16,879 | ||||
Due to related parties | 10,731 | 3,284 | ||||
Financial liabilities at fair value through profit or loss | - | 3 | ||||
Accruals | 12,458 | 14,437 | ||||
Current tax liabilities | 3,330 | 2,872 | ||||
Employee benefit liabilities | 2,101 | 1,888 | ||||
Financial lease liabilities | 564 | 574 | ||||
Other current liabilities | 3,196 | 2,356 | ||||
63,989 | 53,649 | |||||
Non-current liabilities | ||||||
Interest-bearing loans and borrowings | 3,400 | - | ||||
Employee benefit liabilities | 9,943 | 10,434 | ||||
Financial lease liabilities | 1,825 | 2,254 | ||||
Deferred tax liabilities | 4,217 | 4,139 | ||||
19,385 | 16,827 | |||||
Total liabilities | 83,374 | 70,476 | ||||
Equity | ||||||
Issued capital | 138 | 138 | ||||
Additional paid-in capital | 110,416 | 110,416 | ||||
Treasury shares | (38) | (38 | ) | |||
Retained earnings | 53,741 | 53,384 | ||||
Other components of equity | (13,962) | (10,046 | ) | |||
Equity attributable to equity holders of the parent | 150,295 | 153,854 | ||||
Non-controlling interests | 71,831 | 74,581 | ||||
Total equity | $ | 222,126 | 228,435 | |||
Total liabilities and equity | $ | 305,500 | 298,911 | |||
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
(Unaudited) | ||||||
(In thousands of U.S. Dollars) | ||||||
For the years | ||||||
ended Sept 30, | ||||||
2020 | 2019 | |||||
(Unaudited) | (Unaudited) | |||||
Net cash provided by / (used in) operating activities | $ | 6,258 | $ | (2,025 | ) | |
Net cash used in investing activities | (19,335 | ) | (2,945 | ) | ||
Net cash (used in) financing activities | 5,973 | (6,476 | ) | |||
Effect of exchange rate on cash and cash equivalents | (1,985 | ) | 1,414 | |||
Net decrease in cash and cash equivalents | (9,089 | ) | (10,032 | ) | ||
Cash and cash equivalents at beginning of period | 53,673 | 60,778 | ||||
Cash and cash equivalents at end of period | $ | 44,584 | $ | 50,746 | ||
FAQ
What were APWC's revenues for the first nine months of 2020?
How did APWC's net income change in the first nine months of 2020?
What is APWC's current cash position as of September 30, 2020?
How did operating profit perform in the first nine months of 2020 for APWC?