GlobeNewswire Inc | Jan 4, 2021 08:00AM EST

January 04, 2021

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 2019comparative results

First 9 Months 2020 First 9 Months 2019 CHANGERevenues $ 207.2 million $ 249.7 million (17.0)%Operating Profit/(Loss) $ 5.9 million $ (3.1) million 294.5%Net Income/(Loss) $ 0.4 million $ (2.0) million 118.1%EPS^(1) $ 0.03 $ (0.14) 121.4%

^(1)The calculation of the earnings per share is based on 13,819,669 and13,819,669 basic and diluted weighted average common shares issued andoutstanding 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 $207.2 million, a decrease of 17.0% from $249.7 million for the nine months ended September 30, 2019. The decrease was primarily attributable to revenue decreases in the Companys Thailand, North Asia, and Rest of World (ROW) regions. Net revenue in the Companys Thailand region decreased by 21.8%, primarily due to decreased sales of low margin products. Revenues in the Company's North Asia region decreased by 16.0%, primarily due to the cessation of manufacturing operations of Shanghai Asia Pacific Electric Co., Ltd. (Yayang) in October 2019. Revenues in the Company's Rest of World ("ROW") region decreased by 8.7%, primarily due to Singapore not reaching full resumption of work for reasons associated with COVID-19. The Company's North Asia region includes China and Hong Kong; the Thailand region consists of operations and sales within 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 nine months ended September 30, 2020 increased to $5.9 million from a loss of $(3.1) million for the nine months ended September 30, 2019. Operating profit margin increased from a loss of (1.2)% in 2019 to a profit of 2.9% in 2020. In the Thailand region, operating profit margin increased from a loss of (0.4)% to a profit of 7.6%, which was attributable primarily to the increase in sales of higher profit margin products.In the North Asia region, operating profit margin increased from 0.9% in 2019 to 3.8% for the same period in 2020, primarily attributable to a decrease in lower margin products and severance expenses. The ROW regions operating loss margin decreased from (2.8)% in 2019 to (2.3)% in 2020, primarily attributable to abating competition for reasons associated with COVID-19.

Selling, general and administrative expenses for the nine months ended September 30, 2020 were $18.2 million, compared to $19.0 million reported for the nine months ended September 30, 2019. Net income attributable to APWC shareholders was $0.4 million for the first nine months of 2020, compared to a net loss of $(2.0) million for the same period in 2019. The increase in net income was primarily due to an increase in gross profit. The weighted average number of shares issued and outstanding was 13.82 million for the nine months ended September 30, 2020 and 2019.

Financial Condition

APWC reported $44.6 million in cash and cash equivalents as of September 30, 2020, compared to cash and cash equivalents of $53.7 million as of December 31, 2019.

Current assets totaled $237.2 million as of September 30, 2020, compared to $239.5 million as of December 31, 2019. Working capital was $173.2 million as of September 30, 2020. Short term bank loans were $12.9 million at September 30, 2020, an increase from $11.4 million at the end of 2019. The Company had $3.4 million in long-term debt outstanding at September 30, 2020, compared to $0.0 in long-term debt as of December 31, 2019. Shareholder's equity attributable to APWC was $150.3 million as of September 30, 2020, compared to $153.9 million as of December 31, 2019.

APWC reported $6.3 million in cash generated from operations during the nine months ended September 30, 2020, compared to cash used in operations of $2.0 million in the corresponding period in 2019. The increase in cash generated from operations in 2020 was primarily attributable to improved product margin. The Company reported $19.3 million in cash outflows from investing activities during the nine months ended September 30, 2020, compared to $2.9 million in cash outflows in the same period of 2019. The increase in cash used for investing activities in the first nine months of 2020 was attributable primarily to the increase in purchases of property, plant and equipment. APWC reported $6.0. million in cash inflows from financing activities during the first nine months of 2020, compared to $6.5 million in cash outflows from financing activities in the same period of 2019. The cash inflows in 2020 was primarily attributable to an increase in borrowing.

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:SkylineCorporateCommunicationsGroup,LLCLisa Gray, Senior Account Manager OneRockefellerPlaza,11thFloorNewYork,NY10020Office:(646)893-5835Email:lisa@skylineccg.com

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIESCONSOLIDATED 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 (18,176 ) (19,025 )administrative expensesOther operating (344 ) (52 )expensesOperating profit / (3,053 )(loss) 5,937 Finance costs (563 ) (821 )Finance income 228 393 Share of loss of (1 ) (2 )associatesExchange loss (637 ) 1,543 Other income 919 644 Other expense - (1 )Profit before tax (1,297 ) 5,883Income tax expense (2,647 ) (964 )Profit/(Loss) for the $ 3,236 $ (2,261 )period Attributable to: Equity holders of the $ 357 $ (1,974 )parentNon-controlling $ 2,879 $ (287 )interestsBasic and dilutedprofit / (loss) per $ 0.03 $ (0.14 )shareBasic and dilutedweighted average common 13,819,669 13,819,669 shares outstanding

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIESCONSOLIDATED 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 (7,268 ) 4,721 foreign operations, net of tax of nil (7,268 ) 4,721 Other comprehensive income not to bereclassified to profit or loss in subsequent periods: Changes in the fair value of equity (1,565 ) 425 instruments measured at FVOCI Income tax effect 313 (85 ) (1,252 ) 340 Re-measuring losses on defined benefit 227 (135 ) plans Income tax effect (45 ) 27 182 (108 ) Other comprehensive (loss) / income for the (8,338 ) 4,953 year , net of taxTotal comprehensive (loss) / income for the (5,102 ) 2,692 period, net of taxAttributable 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 SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In thousands of US Dollars, except share data) As of As of Sept 30, 2020 December 31, 2019 (Unaudited) (Audited) Assets Current assets Cash and cash equivalents $ 44,584 $ 53,673Trade receivables 66,626 74,077Other receivables 9,692 6,868Contract assets 1,795 4,686Due from related parties 10,471 11,566Inventories 98,214 85,187Prepayments 3,861 1,926Other current assets 1,958 1,521 237,201 239,504Non-current assets Financial assets at fair value through 2,454 4,062other comprehensive incomeProperty, plant and equipment 47,370 41,747Right of use assets 3,368 3,735Prepaid land lease payments - -Investment properties 5,866 730Intangible assets 187 128Investments in associates accounted from 881 935using equity methodDeferred tax assets 4,207 3,939Other non-current assets 3,966 4,131 68,299 59,407Total assets $ 305,500 $ 298,911

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In thousands of US Dollars, except share data)

As of As of Sept 30, 2020 December 31, (Unaudited) 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 - 3 profit or lossAccruals 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 150,295 153,854 parentNon-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 SUBSIDIARIESCONDENSED 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) operatingactivities $ 6,258 $ (2,025 ) Net cash used in investing activities (19,335 ) (2,945 )Net cash (used in) financing activities (6,476 ) 5,973Effect of exchange rate on cash and cash (1,985 ) 1,414 equivalentsNet decrease in cash and cash equivalents (9,089 ) (10,032 )Cash and cash equivalents at beginning of 53,673 60,778 periodCash and cash equivalents at end of period $ 44,584 $ 50,746