EX-99.6 7 y05291exv99w6.htm EX-99.6 exv99w6
Exhibit 99.6
     
For more information, please contact:
   
 
   
Company Contact:
  Investor Relations Contact:
Asia Pacific Wire & Cable Corporation Limited
  CCG Investor Relations
Mr. Frank Tseng, CFO
  Mr. John Harmon, CFA, Senior Account Manager
Phone: +886-2-2712-2558 Ext. 66
  Phone: +86 (10) 6561-6886 ext. 807 (Beijing)
E-mail: frank.tseng@apwcc.com
  E-mail: john.harmon@ccgir.com
www.apwcc.com
  www.ccgir.com
Asia Pacific Wire & Cable Corporation Announces Second-Quarter and
First-Half 2011 Results
TAIPEI, Sept. 16, 2011 /PRNewswire-Asia-FirstCall/ — Asia Pacific Wire & Cable Corporation Limited (NASDAQ:APWC — News) (“APWC” or the “Company”), today announced unaudited consolidated results for the second quarter and first half ended June 30, 2011.
The Company reported strong financial results in the second quarter and the first half of 2011 in spite of a slight decrease in the copper price. The majority of the Company’s products and services are used in industrial, power and telecommunications infrastructure in the growing Asia-Pacific region.
Second-Quarter 2011 Financial Highlights
    Revenues were $148.7 million, an increase of 40.3% from $106.0 million in the same period a year ago, and an increase of 22.1% from $121.8 million in the first quarter of 2011
 
    Gross profit increased to $16.4 million, an increase of 15.1% from $14.2 million from the second quarter of 2010, and 26.1% from $13.0 million in the prior quarter
 
    Gross profit margin was 11.0%, compared with 13.4% in the year-ago period, and 10.6% in the first quarter of 2011
 
    Net income attributable to APWC shareholders was $2.4 million, compared with $3.7 million in the same period a year ago, and $2.8 million in the first quarter of 2011
 
    Basic and diluted earnings per share were $0.17, compared with $0.27 in the second quarter of 2010, and $0.20 in the first quarter of 2011

 


 

Second-Quarter 2011 Results
Revenues were $148.7 million, a 40.3% increase over the second quarter of 2010 and a 22.1% increase over the first quarter of 2011. Gross profit was $16.4 million, an increase of 15.1% from $14.2 million in the year-ago quarter, and an increase of 26.1% from $13.0 million in the first quarter. The gross margin was 11.0%, compared with 13.4% in year-ago quarter, and 10.6% in the first quarter. Operating income was $6.8 million, versus $7.0 million in the year-ago quarter and $5.9 million in the first quarter, a slight decrease of 2.6% year over year and a sequential increase of 15.9%. Selling, general and administrative expenses were $9.9 million, an increase of 42.8% from the year-ago quarter and 39.5% increase from the first quarter. Pretax income was $6.2 million, versus $7.1 million in the year-ago quarter and $5.8 million in the first quarter. Income tax expense was $2.6 million, as compared to $2.6 million in the year-ago quarter and $2.0 million in the first quarter. The tax rate was 40.9%, as compared to 37.3% in the year-ago quarter and 33.8% in the first quarter. Net income attributable to APWC shareholders was $2.4 million versus $3.7 million in the year-ago quarter and $2.8 million in the first quarter. Net income per basic and diluted share was $0.17, versus $0.27 in the year-ago quarter and $0.20 in the first quarter.
First-Half 2011 Results
Revenues in the first half ended June 30, 2011 were $270.5 million, a 28.3% increase over the year-ago period. Gross profit was $29.3 million in the first half, up 14.4% from $25.6 million in the year-ago period, representing a gross margin of 10.8% versus 12.2%, respectively. Operating income in the first half was $12.7 million, versus $12.2 million in the year-ago period, an increase of 4.5%. SG&A expense was $17.0 million in the first half, an increase of 30.0% or $3.9 million from the same period last year at $13.1 million. Net income attributable to APWC shareholders was $5.1 million in the first half versus $7.4 million in the year-ago period. Net income per basic and diluted share was $0.37 in the first half, versus $0.54 in the year-ago period.
Financial Condition
As of June 30, 2011, APWC had $75.5 million in cash and cash equivalents and $1.0 million in unrestricted short-term bank deposits, totaling $76.5 million, compared to cash and equivalents of $63.2 million as of December 31, 2010. Total current assets were $370.2 million as of June 30, 2011, compared to $329.5 million at the end of 2010, and total current liabilities were $191.2 million as of June 30, 2011, compared to $158.8 million at the end of 2010. Working capital was $179.0 million as of June 30, 2011, versus $170.7 million at the end of 2010. Shareholders’ equity attributable to APWC was $159.5 million, compared to $153.2 million at the end of 2010. Net book value per share increased to $11.53 from $11.08 per share at the end of 2010.
Annual General Meeting
Separately, the Company has announced its annual general meeting of shareholders as follows:
     
Date:
  Friday, October 7, 2011
 
   
Time:
  9:00 p.m. (Taipei time) / 9:00 a.m. (Eastern Daylight Time / New York time)
 
   
Location:
  132 Min-Sheng East Road, Section 3, Room B, 7th Fl., Taipei, 105 Taiwan, ROC

 


 

The Meeting is being held for the purposes below, and additional details as set forth in the Notice of Meeting and related proxy statement that were mailed to shareholders on or about September 7, 2011.
1.   To approve the total number of directorships and to reserve one casual vacancy, which vacancy may be filled by the Board of Directors of the Company in the future;
 
2.   To elect the directors of the Company;
 
3.   To approve the compensation of the directors of the Company;
 
4.   To approve the reappointment of Ernst & Young as the independent auditor of the Company for the 2011 fiscal year;
 
5.   To consider such other matters as may be appropriately brought before the Shareholders;
 
6.   To report on the Company’s performance in 2010 and certain unaudited financial results for the first six months of 2011; and
 
7.   To conduct a Question and Answer session with the Shareholders.
The record date for shareholders wishing to participate in the Meeting was August 29, 2011. All shareholders of record as of that date are entitled to one vote per share on all matters put to shareholders at the Meeting, all as more fully described in the Notice of Meeting and related proxy statement that are being provided to shareholders of record.
Shareholders not able to attend the Meeting in person will be invited to participate by conference telephone by dialing into the Meeting on one of the conference call-in numbers that is provided in the Notice of Meeting. After the meeting, shareholders will have access to an audio recording of the Meeting for up to one week by dialing one of the following numbers and providing the re-play passcode:
International Toll: 719-457-0820
US/Canada Toll free: 888-203-1112
SoundByte Replay Passcode: 6795400
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. 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, 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 (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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Amounts in thousands of US Dollars, except share data)
                                         
    Three-Month Period Ended   Six-Month Period
    June 30,   March 31,   Ended June 30,
    2010   2011   2011   2010   2011
Net sales
                                       
Manufactured products (sales to related parties amounted to $1,473 in 2010 and $2,514 in 2011)
  $ 96,279     $ 132,089     $ 108,473     $ 186,027     $ 240,562  
Distributed products
    4,364       9,953       7,195       12,118       17,148  
Sales, delivery and installation of wires and cables
    5,364       6,689       6,134       12,730       12,823  
 
    106,007       148,731       121,802       210,875       270,533  
 
                                       
Cost of sales (purchases from related parties totaled $21,428 in 2010 and $29,416 in 2011)
    (91,803 )     (132,378 )     (108,831 )     (185,245 )     (241,208 )
Gross profit
    14,204       16,353       12,971       25,630       29,325  
Selling, general and administrative expenses
    (6,925 )     (9,889 )     (7,087 )     (13,058 )     (16,976 )
Allowance for doubtful debts
    (275 )     360       5       (400 )     365  
Income from operations
    7,004       6,824       5,890       12,172       12,714  
Exchange gain, net
    276       (111 )     153       1,141       42  
Interest income
    131       346       306       249       652  
Interest expense
    (641 )     (990 )     (805 )     (1,200 )     (1,795 )
Loss on disposal of an investment
    17       15                     (68 )
Share of net gain (loss) of equity investees
                            (25 )     15  
Other income, net
    286       217       274       469       491  
Income before income taxes
    7,073       6,233       5,818       12,806       12,051  
Income taxes expense
    (2,637 )     (2,551 )     (1,967 )     (1,588 )     (4,518 )
Net income
    4,436       3,682       3,851       11,218       7,533  
Less: Net income attributable to non-controlling interests
    (727 )     (1,330 )     (1,065 )     (3,780 )     (2,395 )
Net income attributable to APWC
    3,709       2,352       2,786       7,438       5,138  
Basic and diluted income per share
    0.27       0.17       0.20       0.54       0.37  
Basic and diluted weighted average common shares outstanding
    13,830,769       13,830,769       13,830,769       13,830,769       13,830,769  

 


 

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of US Dollars, except share data)
                 
    December 31, 2010     June 30, 2011  
            (Unaudited)  
ASSETS
               
Current assets:
               
Cash and cash equivalents
  $ 63,217     $ 75,494  
Unrestricted short-term bank deposits
          972  
Restricted short-term bank deposits
    17,422       17,473  
Accounts receivable, net of allowance for doubtful accounts of $6,886 at December 31, 2010 and $6,052 at June 30, 2011 (unaudited)
    144,454       149,415  
Amounts due from related parties
    8,246       7,535  
Inventories, net of allowance for inventories of $2,315 at December 31, 2010 and $1,574 at June 30, 2011 (unaudited)
               
Distributed products
    639       1,498  
Finished products
    32,781       44,950  
Consignment inventory
    3,051       5,007  
Products in process
    19,108       23,090  
Raw materials and supplies
    30,401       32,964  
 
    85,980       107,509  
Deferred tax assets
    3,320       2,980  
Prepaid expenses
    5,514       6,470  
Other current assets
    1,308       2,388  
Total current assets
    329,461       370,236  
Property, plant and equipment:
               
Land
    6,291       6,178  
Land use rights
    2,999       3,043  
Buildings
    50,199       50,474  
Machinery and equipment
    126,906       127,406  
Motor vehicles
    4,431       4,615  
Office equipment
    6,915       7,182  
Construction in progress
    212       636  
 
    197,953       199,534  
Accumulated depreciation and amortization
    (154,052 )     (154,757 )
Property, plant and equipment, net
    43,901       44,777  
Available-for-sales investments
    744       636  
Investment in equity investees
    3,242       3,257  
Goodwill
    8,801       8,801  
Other assets
    97       149  
Deferred tax assets
    677       684  
 
    13,561       13,527  
Total assets
  $ 386,923     $ 428,540  

 


 

                 
    December 31, 2010     June 30, 2011  
            (Unaudited)  
 
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
Current liabilities:
               
Bank loans and overdrafts
  $ 67,351     $ 95,983  
Accounts payable
    41,989       48,734  
Accrued expenses
    13,197       9,960  
Amounts due to related parties
    17,140       17,231  
Short-term loans from the immediate holding
    1,732       1,732  
Income taxes liabilities
    10,627       10,202  
Other current liabilities
    6,772       7,356  
Total current liabilities
    158,808       191,198  
Long-term loan
          5,000  
Other liabilities
    822       851  
Deferred tax liabilities
    1,581       1,582  
Total liabilities
    161,211       198,631  
Commitments and contingencies
               
APWC Shareholders’ equity:
               
Common stock, $0.01 par value:
               
Authorized shares of 50,000,000 shares at December 31, 2010 and June 30, 2011
               
Issued and outstanding shares — 13,830,769 shares
    138       138  
Additional paid-in capital
    111,541       111,541  
Retained earnings
    40,229       45,367  
Accumulated other comprehensive income
    1,286       2,426  
Total APWC shareholders’ equity
    153,194       159,472  
Non-controlling interests
    72,518       70,437  
Total shareholders’ equity
    225,712       229,909  
Total liabilities and shareholders’ equity
  $ 386,923     $ 428,540  

 


 

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. Dollars)
                 
    Three-Month Period Ended June 30,  
            (Unaudited)  
    2010     2011  
Net cash provided by (used in) operating activities
  $ (9,906 )   $ (13,142 )
Net cash provided by (used in) investing activities
    (8,753 )     (4,785 )
Net cash provided by (used in) financing activities
    20,981       34,172  
 
Effect of exchange rate changes on cash and cash equivalents
    (636 )     (3,968 )
 
Net increase (decrease) in cash and cash equivalents
    1,686       12,277  
Cash and cash equivalents at beginning of period
    341,534       63,217  
 
Cash and cash equivalents at end of period
  $ 43,220     $ 75,494  
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