1. |
Press Release dated May 30, 2023 re TAT Technologies Ltd. Reports First Quarter 2023 Results.
|
Press Release
|
• |
Revenues for Q1 2023 increased by 26.6% to $25.2 million compared to $19.9 million in Q1 2022.
|
• |
Gross profit for Q1 2023 increased to $4.3 million (16.9% of revenues) compared to $3 million in Q1 2022 (15.2% of revenues).
|
• |
Adjusted EBITDA for Q1 2023 increased by 328% to $2.2 million compared to $0.5 million in Q1 2022.
|
• |
Net income for Q1 2023 was $0.66 million compared to a net loss of $1.6 million in Q1 2022.
|
• |
Operational cash flow was positive $1.4 million compared to $0 million in Q1 2021.
|
March 31,
|
December 31,
|
|||||||
2023
|
2022
|
|||||||
(unaudited)
|
(audited)
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
9,196
|
$
|
7,722
|
||||
Accounts receivable, net
|
17,643
|
15,622
|
||||||
Inventory, net
|
42,848
|
45,759
|
||||||
Other current assets and prepaid expenses
|
4,912
|
6,047
|
||||||
Total current assets
|
74,599
|
75,150
|
||||||
NON-CURRENT ASSETS:
|
||||||||
Restricted deposit
|
302
|
304
|
||||||
Investment in affiliates
|
1,733
|
1,665
|
||||||
Funds in respect of employee rights upon retirement
|
710
|
780
|
||||||
Deferred income taxes
|
1,207
|
1,229
|
||||||
Intangible assets, net
|
1,722
|
1,623
|
||||||
Property, plant and equipment, net
|
42,560
|
43,423
|
||||||
Operating lease right of use assets
|
2,257
|
2,477
|
||||||
Total non-current assets
|
50,491
|
51,501
|
||||||
Total assets
|
$
|
125,090
|
$
|
126,651
|
||||
LIABILITIES AND EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Current maturities of long-term loans
|
$
|
1,975
|
$
|
1,876
|
||||
Credit line from bank
|
6,112
|
6,101
|
||||||
Accounts payable
|
9,112
|
10,233
|
||||||
Accrued expenses
|
9,395
|
9,686
|
||||||
Operating lease liabilities
|
866
|
904
|
||||||
Provision for restructuring plan
|
132
|
190
|
||||||
Total current liabilities
|
27,592
|
28,990
|
||||||
NON CURRENT LIABILITIES:
|
||||||||
Long-term loans
|
18,764
|
19,408
|
||||||
Liability in respect of employee rights upon retirement
|
1,069
|
1,148
|
||||||
Operating lease liabilities
|
1,347
|
1,535
|
||||||
Total non-current liabilities
|
21,180
|
22,091
|
||||||
Total liabilities
|
$
|
48,772
|
51,081
|
EQUITY:
|
||||||||
Share capital
|
2,842
|
2,842
|
||||||
Additional paid-in capital
|
66,335
|
66,245
|
||||||
Treasury stock at cost
|
(2,088
|
)
|
(2,088
|
)
|
||||
Accumulated other comprehensive income
|
(26
|
)
|
(26
|
)
|
||||
Retained earnings
|
9,255
|
8,597
|
||||||
Total shareholders' equity
|
76,318
|
75,570
|
||||||
Total liabilities and shareholders' equity
|
$
|
125,090
|
$
|
126,651
|
Three months ended
|
Year ended
|
|||||||||||
March 31,
|
December 31,
|
|||||||||||
2023
|
2022
|
2022
|
||||||||||
(Unaudited)
|
(Unaudited)
|
(Audited)
|
||||||||||
Revenues:
|
||||||||||||
Products
|
$
|
7,291
|
$
|
6,319
|
$
|
25,460
|
||||||
Services
|
17,926
|
13,635
|
59,096
|
|||||||||
25,217
|
19,954
|
84,556
|
||||||||||
Cost of goods:
|
||||||||||||
Products
|
6,274
|
5,744
|
21,631
|
|||||||||
Services
|
14,685
|
11,165
|
46,997
|
|||||||||
20,959
|
16,909
|
68,628
|
||||||||||
Gross Profit
|
4,258
|
3,045
|
15,928
|
|||||||||
Operating expenses:
|
||||||||||||
Research and development, net
|
99
|
(27
|
)
|
479
|
||||||||
Selling and marketing
|
1,159
|
1,335
|
5,629
|
|||||||||
General and administrative
|
2,459
|
2,385
|
9,970
|
|||||||||
Other income
|
(406
|
)
|
(81
|
)
|
(90
|
)
|
||||||
Restructuring and other expenses
|
-
|
927
|
1,715
|
|||||||||
3,311
|
4,539
|
17,703
|
||||||||||
Operating income (loss)
|
948
|
(1,494
|
)
|
(1,775
|
)
|
|||||||
Interest expenses
|
(366
|
)
|
(104
|
)
|
(902
|
)
|
||||||
Other financial income (expenses), net
|
(19
|
)
|
170
|
1,029
|
||||||||
Income (loss) before taxes on income (tax benefit)
|
563
|
(1,428
|
)
|
(1,648
|
)
|
|||||||
Taxes on income (tax benefit)
|
(27
|
)
|
107
|
98
|
||||||||
Income (loss) before share of equity investment
|
590
|
(1,535
|
)
|
(1,746
|
)
|
|||||||
Share in results of affiliated companies
|
68
|
(27
|
)
|
184
|
||||||||
Net income (loss) from continued operation
|
$
|
658
|
$
|
(1,562
|
)
|
$
|
(1,562
|
)
|
||||
Net income from discontinued operation
|
-
|
-
|
-
|
|||||||||
Net income (loss)
|
$
|
658
|
$
|
(1,562
|
)
|
$
|
(1,562
|
)
|
||||
Basic and diluted income per share
|
||||||||||||
Net income (loss) per share basic and diluted
|
$
|
0.074
|
$
|
(0.17
|
)
|
$
|
(0.175
|
)
|
||||
Weighted average number of shares outstanding:
|
|
|
|
|||||||||
Basic and Diluted
|
8,911,546
|
8,886,546
|
8,911,546
|
Three months ended
|
Year ended
|
|||||||||||
March 31,
|
December 31,
|
|||||||||||
2023
|
2022
|
2022
|
||||||||||
(Unaudited)
|
(Unaudited)
|
(Audited)
|
||||||||||
Net income (loss)
|
$
|
658
|
$
|
(1,562
|
)
|
$
|
(1,562
|
)
|
||||
Other comprehensive income (loss)
|
||||||||||||
Net unrealized losses from derivatives
|
-
|
(32
|
)
|
(89
|
)
|
|||||||
Reclassification adjustments for gains included in net income and inventory
|
-
|
-
|
30
|
|||||||||
Total comprehensive income (loss)
|
$
|
658
|
$
|
(1,594
|
)
|
$
|
(1,621
|
)
|
Share capital
|
Accumulated
|
|||||||||||||||||||||||||||
Number of
shares issued
|
Amount
|
Additional
paid-in
capital
|
other
comprehensive
income (loss)
|
Treasury
shares
|
Retained
earnings
|
Total equity
|
||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2010
|
9,149,169
|
$
|
2,809
|
$
|
65,711
|
$
|
128
|
$
|
(2,088
|
)
|
$
|
13,329
|
$
|
80,281
|
||||||||||||||
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2021:
|
||||||||||||||||||||||||||||
Comprehensive loss
|
-
|
-
|
-
|
(95
|
)
|
-
|
(3,562
|
)
|
(3,657
|
)
|
||||||||||||||||||
Share based compensation
|
-
|
-
|
160
|
-
|
-
|
-
|
160
|
|||||||||||||||||||||
BALANCE AT DECEMBER 31, 2021
|
9,149,169
|
$
|
2,809
|
$
|
65,871
|
$
|
33
|
$
|
(2,088
|
)
|
$
|
10,159
|
$
|
76,784
|
||||||||||||||
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2022:
|
||||||||||||||||||||||||||||
Comprehensive loss
|
-
|
-
|
-
|
(59
|
)
|
-
|
(1,562
|
)
|
(1,621
|
)
|
||||||||||||||||||
Exercise of option
|
36,850
|
33
|
156
|
-
|
-
|
-
|
189
|
|||||||||||||||||||||
Share based compensation
|
-
|
-
|
218
|
-
|
-
|
-
|
218
|
|||||||||||||||||||||
BALANCE AT DECEMBER 31, 2022
|
9,186,019
|
$
|
2,842
|
$
|
66,245
|
$
|
(26
|
)
|
$
|
(2,088
|
)
|
$
|
8,597
|
$
|
75,570
|
|||||||||||||
CHANGES DURING THE PERIOD ENDED MARCH 31, 2023 (unaudited):
|
||||||||||||||||||||||||||||
Comprehensive profit
|
-
|
-
|
-
|
-
|
-
|
658
|
658
|
|||||||||||||||||||||
Exercise of option
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||
Share based compensation
|
-
|
-
|
90
|
-
|
-
|
-
|
90
|
|||||||||||||||||||||
BALANCE AT MARCH 31, 2023 (unaudited)
|
9,186,019
|
$
|
2,842
|
$
|
66,335
|
$
|
(26
|
)
|
$
|
(2,088
|
)
|
9,255
|
$
|
76,318
|
Three months ended
|
Year ended
|
|||||||||||
March 31,
|
December 31,
|
|||||||||||
2023
|
2022
|
2022
|
||||||||||
(Unaudited)
|
(Unaudited)
|
(audited)
|
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
Net income (loss) from continued operations
|
658
|
(1,562
|
)
|
(1,562
|
)
|
|||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
||||||||||||
Depreciation and amortization
|
1,041
|
973
|
3,706
|
|||||||||
Loss (gain) from change in fair value of derivatives
|
-
|
17
|
8
|
|||||||||
Provision for doubtful accounts
|
(3
|
)
|
-
|
138
|
||||||||
Share in results of affiliated Company
|
(68
|
)
|
27
|
(184
|
)
|
|||||||
Share based compensation
|
90
|
49
|
218
|
|||||||||
Noncash finance expense
|
(6
|
)
|
(35
|
)
|
-
|
|||||||
Lease modification
|
-
|
-
|
(82
|
)
|
||||||||
Increase (decrease) in provision for restructuring expenses
|
(58
|
)
|
(345
|
)
|
(467
|
)
|
||||||
Liability in respect of employee rights upon retirement
|
(79
|
)
|
(117
|
)
|
(356
|
)
|
||||||
Capital gain from sale of fixed assets
|
(456
|
)
|
(81
|
)
|
(90
|
)
|
||||||
Deferred income taxes, net
|
22
|
107
|
23
|
|||||||||
Changes in operating assets and liabilities:
|
||||||||||||
Increase in trade accounts receivable
|
(2,012
|
)
|
(895
|
)
|
(2,659
|
)
|
||||||
Decrease (increase) in other current assets and prepaid expenses
|
1,205
|
(62
|
)
|
(1,459
|
)
|
|||||||
Decrease (increase) in inventory
|
2,959
|
(2,222
|
)
|
(5,069
|
)
|
|||||||
Decrease (increase) in trade accounts payable
|
(1,121
|
)
|
536
|
1,143
|
||||||||
Increase (decrease) in accrued expenses
|
(290
|
)
|
42
|
2,727
|
||||||||
Decrease in other long-term liabilities
|
(115
|
)
|
(161
|
)
|
(902
|
)
|
||||||
Net cash provided by (used in) operating activities
|
$
|
1,767
|
$
|
(3,729
|
)
|
$
|
(4,867
|
)
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||
Proceeds from sale of property and equipment
|
1,560
|
84
|
93
|
|||||||||
Purchase of property and equipment
|
(1,433
|
)
|
(4,010
|
)
|
(16,213
|
)
|
||||||
Purchase of intangible assets
|
-
|
-
|
-
|
|||||||||
Cash flows provided by (used in) investing activities
|
$
|
127
|
$
|
(3,926
|
)
|
$
|
(16,120
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||
Short-term credit received (Repayments) from banks
|
-
|
(3,000
|
)
|
(1,071
|
)
|
|||||||
Proceeds (repayments) from long-term loans received
|
(422
|
)
|
10,504
|
16,680
|
||||||||
Exercise of options
|
-
|
67
|
189
|
|||||||||
Cash flows provided by (used in) financing activities
|
$
|
(422
|
)
|
$
|
7,571
|
$
|
15,798
|
|||||
Net increase (decrease) in cash and cash equivalents and restricted cash
|
1,472
|
(84
|
)
|
(5,189
|
)
|
|||||||
Cash and cash equivalents and restricted cash at beginning of period
|
8,026
|
13,215
|
13,215
|
|||||||||
Cash and cash equivalents and restricted cash at the end of period
|
$
|
9,498
|
$
|
13,131
|
8,026
|
Three months ended
|
Year ended
|
|||||||||||
March 31,
|
December 31,
|
|||||||||||
2023
|
2022
|
2022
|
||||||||||
Net income (Loss)
|
$
|
658
|
$
|
(1,562
|
)
|
$
|
(1,562
|
)
|
||||
Adjustments:
|
||||||||||||
Share in results and sale of equity investment of affiliated companies
|
(68
|
)
|
27
|
(184
|
)
|
|||||||
Taxes on income (tax benefit)
|
(27
|
)
|
107
|
98
|
||||||||
Financial expense/ (income), net
|
385
|
(66
|
)
|
(127
|
)
|
|||||||
Depreciation and amortization
|
1,041
|
1,025
|
3,878
|
|||||||||
Restructuring expenses
|
-
|
927
|
1,715
|
|||||||||
Share based compensation
|
90
|
49
|
218
|
|||||||||
Adjusted EBITDA
|
$
|
2,079
|
$
|
507
|
$
|
4,036
|
|
TAT TECHNOLOGIES LTD.
(Registrant)
By: /s/ Ehud Ben-Yair
Ehud Ben-Yair
Chief Financial Officer
|