Asia Pacific Wire & Cable Company Reports Second Quarter 2014 Financial Results

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, 2014.

Second Quarter 2014 Results

Revenues for the second quarter ending June 30, 2014 were $222.3 million, up from $216.2 million in the second quarter of 2013, primarily attributable to a 12.46% rise in sales in our Rest of the World region ("ROW Region") on increased sales volumes in SDI. Our ROW Region includes Singapore, Australia and the other markets where we have operations or sales outside of our Thailand Region and our North Asia Region. Our North Asia Region includes China and Hong Kong, and our Thailand Region contains the operations and sales inside Thailand.

Gross profit for the second quarter of 2014 declined by 8.8% to $18.4 million from $20.2 million in the same quarter last year. Gross margin was down by 1.22%, falling from 9.5% in the second quarter of 2013 to 8.28% this year. In the Thailand Region, gross margin fell following a decline in higher margin Thai government projects. The ROW Region also experienced declining sales prices and an increase in manufacturing overhead, but an increase in SDI margin partially offset the sales decline.

Selling, general and administrative expenses of $13.7 million were reported for the second quarter of 2014, a decline from the $14.6 million booked a year ago. Operating income was $2.6 million, compared to $5.5 million in the second quarter of 2013. The Company booked a $2.1 million non-cash impairment charge for trade receivables in 2014. Operating income for the six months ended June 30, 2014 would have been $4.7 million excluding the non-cash impairment charge.  The Company is taking necessary steps to secure the $2.1 million debt owed to it.

Net income attributable to APWC shareholders showed a loss of $0.4 million for the second quarter of this year, compared to $2.2 million in 2013.  Net income per share was a loss of $0.03 for the quarter, while net income of $0.16 per share was reported a year ago. The weighted average number of shares outstanding was 13.8 million in the second quarter of 2014 and 2013. Excluding the non-cash impairment charge in 2014, the net income attributable to APWC shareholders would have been $1.7 million for the second quarter of this year, compared to $2.2 million in 2013.

APWC reported $74 million in cash and cash equivalents as of June 30, 2014, compared to cash and cash equivalents of $80.4 million on March 31, 2014. Most of the cash is held by operating subsidiaries and, in certain instances, subject to limitations on distribution to APWC.

Current assets totaled $310.5 million on June 30, 2014 compared to $307 million as of March 31, 2014. Working capital was $175.3 million as of June 30, 2014. Short term bank loans were reported at $56.3 million on the same date, up from $36.4 million at the end of the first quarter 2014. The Company had no long-term debt outstanding on June 30, 2014. Shareholder's equity attributable to APWC was $160.2 million as of June 30, 2014, compared to $158.1 million on March 31 of this year.

Over the quarter ended June 30, 2104, the Company generated $4.2 million in cash from operating activities, an improvement over $1.1 million cash outflow in the comparable quarter of 2013. Capital expenditures totaled $3.4 million in the second quarter of 2014, compared to $5.7 million in the comparable period last year.

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 You are not allowed to view links. Register or Login. 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.

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