GlobeNewswire Inc | Sep 3, 2020 08:00AM EDT

September 03, 2020

TAIPEI, Taiwan, Sept. 03, 2020 (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 six months ended June 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 Six Months 2020 Financial Results(Ended June 30, 2020), and 2019comparative results

First 6 Months 2020 First 6 Months 2019 CHANGERevenues $ 127.6 million $ 160.6 million (20.5)%Operating Profit/(Loss) $ 0.3 million $ (3.5) million (1.09)%Net Income/(Loss) $ (0.8) million $ (1.7) million 52.5%EPS^(1) $ (0.06) $ (0.12) 50.0%

(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 six months ended June 30, 2020 and 2019, respectively.

First Six Months 2020 Results

Revenues for the six months ended June 30, 2020, were $127.6 million, a decrease of 20.5% from $160.6 million for the six months ended June 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 23.6%, primarily due to decreased sales of low margin products due to COVID-19. Revenues in the Company's North Asia region decreased by 23.1%, primarily due to the cessation of manufacturing operations of Shanghai Asia Pacific Electric Co., Ltd. (Yayang) , and due to depreciation of the local currency. Revenues in the Company's Rest of World ("ROW") region decreased by 12.1%, primarily due to Singapores lockdown 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 six months ended June 30, 2020 increased to $0.3 million from a loss of $(3.5) million for the six months ended June 30, 2019. Operating profit margin increased from a loss of (2.2)% in 2019 to a profit of 0.2% in 2020. In the Thailand region, operating profit margin increased from a loss of (2.1)% to a profit of 3.7%, which was attributable primarily to the increase in sales of higher profit margin products.In the North Asia region, operating profit margin increased from 2.0% in 2019 to 3.0% for the same period in 2020, primarily attributable to the decrease in corresponding operating expenses resulting from the cessation of Yayang. The ROW regions operating loss margin increased from (3.6) % in 2019 to (4.1)% in 2020, primarily attributable to higher average cost resulting from decreased sales volume in Singapore for reasons associated with COVID-19.

Selling, general and administrative expenses for the six months ended June 30, 2020 were $11.8 million, compared to $13.1 million reported for the six months ended June 30, 2019. Net loss attributable to APWC shareholders was $(0.8) million for the first six months of 2020, compared to a net loss of $(1.7) million for the same period in 2019. The decrease in net loss was primarily due to an increase in operating profit. The weighted average number of shares issued and outstanding was 13.82 million for the six months ended June 30, 2020 and 2019.

Financial Condition

APWC reported $52.9 million in cash and cash equivalents as of June 30, 2020, compared to cash and cash equivalents of $53.7 million as of December 31, 2019.

Current assets totaled $239.2 million as of June 30, 2020, compared to $239.5 million as of December 31, 2019. Working capital was $174.7 million as of June 30, 2020. Short term bank loans were $14.9 million at June 30, 2020, an increase from $11.4 million at the end of 2019. The Company had $3.3 million in long-term debt outstanding at June 30, 2020, compared to $0.0 in long-term debt as of December 31, 2019. Shareholder's equity attributable to APWC was $148.1 million as of June 30, 2020, compared to $153.9 million as of December 31, 2019.

APWC reported $10.8 million in cash generated from operations during the six months ended June 30, 2020, compared to cash used in operations of $4.2 million in the corresponding period in 2019. The increase in cash generated from operations in 2020 was primarily attributable to the increased accounts receivable collection. The Company reported $15.7 million in cash outflows from investing activities during the six months ended June 30, 2020, compared to $2.3 million in cash outflows in the same period of 2019. The increase in cash used for investing activities in the first six months of 2020 was attributable primarily to the increase in purchases of property, plant and equipment in the Thailand region and the purchase of investment properties in the ROW region. APWC reported $5.6 million in cash inflows from financing activities during the first six months of 2020, compared to $7.1 million in cash outflows from financing activities in the same period of 2019. The increase in cash inflows in 2020 was primarily attributable to an increase in the bank loan 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:Asia Alpha Investor RelationsLisa A. GraySenior Account ManagerPhone: +1-212-989-9899Email: apwc@asiaalphair.com

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIESCONSOLIDATED INCOME STATEMENTS(Unaudited)(Amounts in thousands of U.S. Dollars, except share data) For the six months ended June 30, 2020 2019 (Unaudited) (Unaudited)Revenue $ 127,614 $ 160,602 Cost of sales (115,544 ) (151,434 )Gross profit 12,070 9,168 Other operating income 262 572 Selling, general and administrative (11,844 ) (13,131 )expensesOther operating expenses (224 ) (83 )Operating profit/(loss) 264 (3,474 ) Finance costs (370 ) (562 )Finance income 178 277 Share of loss of associates (1 ) (1 )Exchange gain 145 981 Other income 584 384 Other expense - (82 )Profit before tax 800 (2,477 )Income tax expense (772 ) 163 Profit/(Loss) for the period $ 28 $ (2,314 ) Attributable to: Equity holders of the parent $ (818 ) $ (1,723 )Non-controlling interests $ 846 $ (591 )Basic and diluted loss per share $ (0.06 ) $ (0.12 )Basic and diluted weighted 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 U.S. Dollars, except share data) For the six months ended June 30, 2020 2019 (Unaudited) (Unaudited)Profit/(Loss) for the period $ 28 $ (2,314 )Other comprehensive income/(loss) Other comprehensive income/(loss) to bereclassified to profit or loss in subsequent periods:Exchange differences on translation of foreign (6,919 ) 7,123 operations, net of tax of nil (6,919 ) 7,123 Other comprehensive income/(loss) not to bereclassified to profit or loss in subsequent periods:Changes in the fair value of equity instruments (1,069 ) 227 measured at FVOCIIncome tax effect 214 (45 ) (855 ) 182 Re-measuring income/(losses) on defined benefit 134 (124 )plansIncome tax effect (26 ) 24 108 (100 ) Other comprehensive income/(loss) for the period, (7,666 ) 7,205 net of taxTotal comprehensive income /(loss) for the period, (7,638 ) 4,891 net of taxAttributable to: Equity holders of the parent (5,734 ) 1,414 Non-controlling interests (1,904 ) 3,477 $ (7,638 ) $ 4,891

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(Amounts in thousands of U.S. Dollars, except share data) As of As of June 30, December 31, 2020 2019 (Unaudited) (Audited) Assets Current assets Cash and cash equivalents $ 52,921 $ 53,673Trade receivables 52,072 74,077Other receivables 9,636 6,868Contract assets 1,625 4,686Due from related parties 11,348 11,566Inventories 104,687 85,187Prepayments 4,615 1,926Other current assets 2,249 1,521 239,153 239,504Non-current assets Financial assets at fair value through other 2,968 4,062comprehensive incomeProperty, plant and equipment 42,916 41,747Right of use assets 3,348 3,735Prepaid land lease payments - -Investment properties 5,732 730Intangible assets 193 128Investments in associates accounted for using 903 935equity methodDeferred tax assets 4,451 3,939Other non-current assets 3,639 4,131 64,150 59,407Total assets $ 303,303 $ 298,911

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(Amounts in thousands of U.S. Dollars, except share data) As of As of June 30, 2020 December 31, (Unaudited) 2019 (Audited) Liabilities Current liabilities Interest-bearing loans and borrowings $ 14,931 $ 11,356 Trade and other payables 25,727 16,879 Due to related parties 3,945 3,284 Financial liabilities at fair value through (23 ) 3 profit or lossAccruals 11,583 14,437 Current tax liabilities 3,133 2,872 Employee benefit liabilities 2,012 1,888 Financial lease liabilities 570 574 Other current liabilities 2,589 2,356 64,467 53,649 Non-current liabilities Interest-bearing loans and borrowings 3,306 - Employee benefit liabilities 10,154 10,434 Financial lease liabilities 1,911 2,254 Deferred tax liabilities 3,875 4,139 19,246 16,827 Total liabilities 83,713 70,476 Equity Issued capital 138 138 Additional paid-in capital 110,416 110,416 Treasury shares (38 ) (38 )Retained earnings 52,566 53,384 Other components of equity (14,962 ) (10,046 )Equity attributable to equity holders of the 148,120 153,854 parentNon-controlling interests 71,470 74,581 Total equity $ 219,590 $ 228,435 Total liabilities and equity $ 303,303 $ 298,911



ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)(Amounts in thousands of U.S. Dollars) For the six months ended June 30, 2020 2019 (Unaudited) (Unaudited)Net cash provided by/(used in) $ 10,847 $ (4,230 )operating activitiesNet cash provided by/(used in) (15,740 ) (2,305 )investing activitiesNet cash provided by/(used in) 5,562 (7,126 )financing activitiesEffect of exchange rate on cash and (1,421 ) 1,978 cash equivalentsNet increase/(decrease) in cash and (752 ) (11,683 )cash equivalentsCash and cash equivalents at beginning 53,673 60,778 of periodCash and cash equivalents at end of $ 52,921 $ 49,095 period