OREANDA-NEWS. 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 three months ended March 31, 2016.

 
Q1 2016 Financial Results (Ended March 31, 2016)
    Q1 2016     Q1 2015   CHANGE   
Revenues  $ 78.7 million   $ 88.2 million       -10.9 %    
Gross Profit $ 6.1 million   $ 4.8 million       +28.5 %    
Net Income (Loss) $ 0.3 million   $ (2.1) million       --      
EPS*  $ 0.02   $  (0.15 )   --      
*Earnings per share are based on 13.8 million shares in Q1 2016 and Q1 2015
 

First Quarter 2016 Results

Revenues for the three months ended March 31, 2016 were $78.7 million, down from $88.2 million in the prior period. The decrease was primarily due to a drop in copper prices in all regions, compounded by depreciation of local currencies. However, comparing with Thailand and North Asia regions, the ROW region did not experience a similar revenue decrease, because the trading revenue increased in the ROW region. APWC’s ROW Region includes Singapore, Australia and the other markets where APWC has operations or sales outside of the Thailand Region and North Asia Region. The North Asia Region includes China and Hong Kong, and the Thailand Region contains the operations and sales inside Thailand.

Gross profit for the first quarter of 2016 increased 28.5% to $6.1 million from $4.8 million in the year-ago period, representing gross margins of 7.8% and 5.4%, respectively. Gross margin was up year over year in Thailand due to entities in Thailand changing their business strategy to outsource low-margin products, which lowered the costs, and focusing on manufacturing high-margin products in-house. The North Asia Region’s margin increased because the copper price did not fluctuate as much as the prior year.

Selling, general and administrative expenses were $5.9 million for the first three months ended March 31, 2016, down $0.6 million from $6.5 million in 2015. Operating income was $0.3 million compared to an operating loss of $1.4 million in the first three months of 2015.

Net income attributable to APWC shareholders was $0.3 million for the first three months ended March 31, 2016 compared to a net loss of $2.1 million in the corresponding period in 2015. Net income per basic and diluted share was $0.02 for the period, compared to a net loss per basic and diluted share of $0.15 in the first three months of 2015. The basic and diluted weighted average shares outstanding were 13.8 million for the first three months of 2016 and 2015.

Financial Condition

As of March 31, 2016, APWC had $50.0 million in cash and cash equivalents, compared to cash and cash equivalents totaling $51.3 million as of December 31, 2015.

Total current assets were $250.1 million at March 31, 2016 compared to $247.5 million at December 31, 2015. Working capital was $151.4 million as of March 31, 2016. As of March 31, 2016, short term bank loans of $35.3 million were down from $37.7 million at December 31, 2015. The Company had no long term debt outstanding at March 31, 2016. Shareholders' equity attributable to APWC was $139.7 million at March 31, 2016 compared to $135.3 million at December 31, 2015.

APWC generated $1.5 million of cash from operating activities during the three months ended March 31, 2016, compared to $2.0 million of cash outflows from operations in the corresponding period in 2015. The Company reduced capital expenditures to $1.4 million in the first quarter of 2016 compared to $1.9 million in corresponding period in 2015.

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 ("Distributed Products") manufactured by its principal shareholder, Pacific Electric Wire & Cable Company, a Taiwanese company ("PEWC"). 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", "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. 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.

 
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(Unaudited)
(Amounts in thousands of US Dollars, except share data)
 
  For the three months
  ended March 31,  (Unaudited)
    2016       2015  
Sales of goods / services $ 78,655     $ 88,238  
Cost of sales   (72,541 )     (83,481 )
Gross profit   6,114       4,757  
       
Other operating income   237       345  
Selling, general and administrative expenses   (5,929 )     (6,487 )
Other operating expenses   (99 )     (45 )
Operating income/(loss)   323       (1,430 )
       
Finance costs   (272 )     (440 )
Finance income   116       257  
Share of loss  of associates   (256 )     (353 )
Gain on disposal of investment   0       0  
Exchange (loss)/gain   825       662  
Other income   0       0  
Other expense   (156 )     (86 )
Profit/(loss) before tax   580       (1,390 )
       
Income tax benefit/(expense)   328       (450 )
       
Profit/(loss) for the year $ 908     $ (1,840 )
       
Attributable to:      
Equity holders of the parent   336       (2,063 )
Non-controlling interests   572       223  
Basic and diluted earnings per share $ 0.02     $ (0.15 )
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 three months
  ended March 31,  (Unaudited)
    2016       2015  
Profit/(loss) for the year $ 908     $ (1,840 )
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 $0   5,345       (2,122 )
       
Net gain on available-for-sale financial assets   57       14  
Income tax effect   (12 )     0  
    45       14  
       
Other comprehensive income not to be reclassified to profit or loss in subsequent periods:      
Re-measuring losses on defined benefit plans   (26 )     (9 )
Income tax effect   6       3  
Defined benefit pension plan, net of tax   (20 )     (6 )
       
Other comprehensive profit/(loss) for the period, net of tax   5,370       (2,114 )
       
Total comprehensive profit/(loss) for the period, net of tax   6,278       (3,954 )
Attributable to:      
Equity holders of the parent   4,352       (4,792 )
Non-controlling interests   1,926       838  
  $ 6,278     $ (3,954 )
       
 
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of US Dollars, except share data)
 
  As of March 31,
2016 (Unaudited)		   As of December 31,
2015  (Audited)
       
ASSETS      
Current assets:      
Cash and cash equivalents $ 50,018     $ 51,303  
Other current financial assets – at fair value through profit or loss   0       19  
Trade receivables   71,988       69,991  
Other receivables   17,558       17,563  
Due from related parties   12,100       18,180  
Inventories   91,890       83,137  
Gross amounts due from customers for contract work-in-progress   625       1,071  
Prepayments   2,828       2,258  
Assets classified as held for sale   0       224  
Other current assets   3,439       3,776  
    250,446       247,522  
Non-current assets      
Other non-current financial assets-available for sale   2,934       2,862  
Other non-current financial assets-held to maturity   314       306  
Property, plant and requirement   47,074       45,898  
Prepaid land lease payments   1,738       1,737  
Investment properties   680       667  
Intangible assets   95       93  
Investments in associates   1,406       1,633  
Other non-current assets   155       203  
Deferred tax assets   4,091       4,481  
    58,487       57,880  
Total assets $ 308,933     $ 305,402