-- 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 (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 (http://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/
Asia Pacific Wire & Cable Corporation Limited
CONTACT: Frank Tseng, CFO of Asia Pacific Wire & Cable Corporation
Limited, +886-2-2712-2558 x66, frank.tseng@apwcc.com; or Investor Relations,
John Harmon, Senior Account Manager of CCG Investor Relations, +1-646-833-3424
(New York), john.harmon@ccgir.com
Web site:
