1. |
Press Release dated May 22, 2024 re TAT Technologies Ltd. Reports First Quarter 2024 Results.
|
Press Release
|
• |
Revenues for Q1 2024 increased by 35.3% to $34.1 million compared to $25.2 million in Q1 2023.
|
• |
Gross profit for Q1 2024 increased by 65.1% to $7.1 million compared to $4.3 million in Q1 2023.
|
• |
Gross Margin for Q1 2024 improved by 3.8bp to 20.7% of revenues, compared to 16.9% of revenues in Q1 2023.
|
• |
Adjusted EBITDA for Q1 2024 increased by 76.8% to $3.7 million (10.8% of Revenues) compared to $2.08 million (8.25% of revenues) in Q1 2023.
|
• |
Operating Income for Q1 2024 increased by 133% to $2.2 million (6.5% of Revenues) compared to $0.95 million (3.8% of revenues) in Q1 2023.
|
• |
Net income for Q1 2024 increased by 221% to $2.1 million compared to a net Income of $0.6 million in Q1 2023.
|
• |
Cash flow from Operating activities was negative $3.5 million in Q1 2024 compared to positive $1.7 million in Q1 2023.
|
March 31,
|
December 31,
|
|||||||
2024
|
2023
|
|||||||
(unaudited)
|
(audited)
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
8,973
|
$
|
15,979
|
||||
Accounts receivable, net of allowance for credit losses of $345 and $345 thousand as of March 31, 2024 and December 31, 2023 respectively
|
20,829
|
20,009
|
||||||
Restricted deposit
|
139
|
661
|
||||||
Other current assets and prepaid expenses
|
6,578
|
6,397
|
||||||
Inventory
|
53,857
|
51,280
|
||||||
Total current assets
|
90,376
|
94,326
|
||||||
NON-CURRENT ASSETS:
|
||||||||
Restricted deposit
|
161
|
302
|
||||||
Investment in affiliates
|
2,366
|
2,168
|
||||||
Funds in respect of employee rights upon retirement
|
659
|
664
|
||||||
Deferred income taxes
|
1,403
|
994
|
||||||
Property, plant and equipment, net
|
41,318
|
42,554
|
||||||
Operating lease right of use assets
|
2,911
|
2,746
|
||||||
Intangible assets, net
|
1,755
|
1,823
|
||||||
Total non-current assets
|
50,573
|
51,251
|
||||||
Total assets
|
$
|
140,949
|
$
|
145,577
|
||||
LIABILITIES AND EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Current maturities of long-term loans
|
$
|
1,996
|
$
|
2,200
|
||||
Credit line from bank
|
8,027
|
12,138
|
||||||
Accounts payable
|
9,288
|
9,988
|
||||||
Accrued expenses
|
12,381
|
13,952
|
||||||
Operating lease liabilities
|
1,134
|
1,033
|
||||||
Total current liabilities
|
32,826
|
39,311
|
||||||
NON CURRENT LIABILITIES:
|
||||||||
Long-term loans
|
12,547
|
12,886
|
||||||
Liability in respect of employee rights upon retirement
|
1,003
|
1,000
|
||||||
Operating lease liabilities
|
1,765
|
1,697
|
||||||
Total non-current liabilities
|
15,315
|
15,583
|
||||||
Total liabilities
|
$
|
48,141
|
$
|
54,894
|
EQUITY:
|
||||||||
Share capital
|
3,141
|
3,140
|
||||||
Additional paid-in capital
|
76,376
|
76,335
|
||||||
Treasury stock at cost
|
(2,088
|
)
|
(2,088
|
)
|
||||
Accumulated other comprehensive income
|
27
|
|||||||
Retained earnings
|
15,379
|
13,269
|
||||||
Total shareholders' equity
|
92,808
|
90,683
|
||||||
Total liabilities and shareholders' equity
|
$
|
140,949
|
$
|
145,577
|
Three months ended
|
Year ended
|
|||||||||||
March 31,
|
December 31,
|
|||||||||||
2024
|
2023
|
2023
|
||||||||||
(Unaudited)
|
(Unaudited)
|
(Audited)
|
||||||||||
Revenues:
|
||||||||||||
Products
|
$
|
11,935
|
$
|
7,291
|
$
|
35,241
|
||||||
Services
|
22,153
|
17,926
|
78,553
|
|||||||||
34,088
|
25,217
|
113,794
|
||||||||||
Cost of goods:
|
||||||||||||
Products
|
8,986
|
6,274
|
30,517
|
|||||||||
Services
|
18,036
|
14,685
|
60,809
|
|||||||||
27,022
|
20,959
|
91,326
|
||||||||||
Gross Profit
|
7,066
|
4,258
|
22,468
|
|||||||||
Operating expenses:
|
||||||||||||
Research and development, net
|
277
|
99
|
715
|
|||||||||
Selling and marketing
|
1,660
|
1,159
|
5,523
|
|||||||||
General and administrative
|
3,309
|
2,459
|
10,588
|
|||||||||
Other income
|
(388
|
)
|
(406
|
)
|
(433
|
)
|
||||||
4,858
|
3,311
|
16,393
|
||||||||||
Operating income
|
2,208
|
948
|
6,075
|
|||||||||
Interest expenses
|
(343
|
)
|
(366
|
)
|
(1,683
|
)
|
||||||
Other financial income (expenses), net
|
(106
|
)
|
(19
|
)
|
353
|
|||||||
Income before taxes on income (tax benefit)
|
1,759
|
563
|
4,745
|
|||||||||
Taxes on income (tax benefit)
|
(153
|
)
|
(27
|
)
|
576
|
|||||||
Income before share of equity investment
|
1,912
|
590
|
4,169
|
|||||||||
Profit of equity investment of affiliated companies
|
198
|
68
|
503
|
|||||||||
Net income
|
$
|
2,110
|
$
|
658
|
$
|
4,672
|
||||||
Basic and diluted income per share
|
||||||||||||
Net income per share basic
|
$
|
0.20
|
$
|
0.074
|
$
|
0.52
|
||||||
Net income per share diluted
|
$
|
0.19
|
$
|
0.074
|
$
|
0.51
|
||||||
Weighted average number of shares outstanding :
|
||||||||||||
Basic
|
10,378,978
|
8,911,546
|
8,961,689
|
|||||||||
Diluted
|
10,554,351
|
8,911,546
|
9,084,022
|
Three months ended
|
Year ended
|
|||||||||||
March 31,
|
December 31,
|
|||||||||||
2024
|
2023
|
2023
|
||||||||||
(Unaudited)
|
(Unaudited)
|
(Audited)
|
||||||||||
Net income
|
$
|
2,110
|
$
|
658
|
$
|
4,672
|
||||||
Other comprehensive income (loss)
|
||||||||||||
Net unrealized losses from derivatives
|
(27
|
)
|
-
|
53
|
||||||||
Total comprehensive income
|
$
|
2,083
|
$
|
658
|
$
|
4,725
|
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, 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 YEAR ENDED DECEMBER 31, 2023:
|
||||||||||||||||||||||||||||
Comprehensive loss
|
-
|
-
|
-
|
53
|
-
|
4,672
|
4,725
|
|||||||||||||||||||||
Exercise of option
|
32,466
|
8
|
157
|
-
|
-
|
-
|
165
|
|||||||||||||||||||||
Issuance of common shares net of issuance costs of $141 thousands
|
1,158,600
|
290
|
9,774
|
-
|
-
|
-
|
10,064
|
|||||||||||||||||||||
Share based compensation
|
-
|
-
|
159
|
-
|
-
|
-
|
159
|
|||||||||||||||||||||
BALANCE AT DECEMBER 31, 2023
|
10,377,085
|
$
|
3,140
|
$
|
76,335
|
$
|
27
|
$
|
(2,088
|
)
|
$ |
13,269
|
$ |
90,683
|
||||||||||||||
CHANGES DURING THE PERIOD ENDED MARCH 31, 2024 (unaudited):
|
||||||||||||||||||||||||||||
Comprehensive profit
|
-
|
-
|
-
|
(27
|
)
|
-
|
2,110
|
2,083
|
||||||||||||||||||||
Exercise of option
|
5,552
|
1
|
-
|
-
|
-
|
-
|
1
|
|||||||||||||||||||||
Share based compensation
|
-
|
-
|
41
|
-
|
-
|
-
|
41
|
|||||||||||||||||||||
BALANCE AT MARCH 31, 2024 (unaudited)
|
10,382,637
|
$
|
3,141
|
$
|
76,376
|
$
|
0
|
$
|
(2,088
|
)
|
$ |
15,379
|
$ |
92,808
|
Three months ended
|
Year ended
|
|||||||||||
March 31,
|
December 31,
|
|||||||||||
2024
|
2023
|
2023
|
||||||||||
(Unaudited)
|
(Unaudited)
|
(audited)
|
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
Net income (loss) from continued operations
|
$
|
2,110
|
$
|
658
|
$
|
4,672
|
||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
||||||||||||
Depreciation and amortization
|
1,374
|
1,041
|
4,710
|
|||||||||
Loss (gain) from change in fair value of derivatives
|
22
|
-
|
(9
|
)
|
||||||||
Change in funds in respect of employee rights upon retirement
|
5
|
70
|
116
|
|||||||||
Change in operating right of use asset and operating leasing liability
|
4
|
(6
|
)
|
22
|
||||||||
Non-cash financial expenses
|
(214
|
)
|
(115
|
)
|
(172
|
)
|
||||||
Decrease in restructuring plan provision
|
(20
|
)
|
(58
|
)
|
(126
|
)
|
||||||
Change in allowance for credit losses
|
-
|
(3
|
)
|
(182
|
)
|
|||||||
Share in results of affiliated companies
|
(198
|
)
|
(68
|
)
|
(503
|
)
|
||||||
Share based compensation
|
41
|
90
|
159
|
|||||||||
Liability in respect of employee rights upon retirement
|
3
|
(79
|
)
|
(148
|
)
|
|||||||
Capital gain from sale of property, plant and equipment
|
(354
|
)
|
(456
|
)
|
(530
|
)
|
||||||
Deferred income taxes, net
|
(409
|
)
|
22
|
235
|
||||||||
Changes in operating assets and liabilities:
|
||||||||||||
Increase in trade accounts receivable
|
(820
|
)
|
(2,012
|
)
|
(4,205
|
)
|
||||||
Decrease (increase) in other current assets and prepaid expenses
|
(181
|
)
|
1,135
|
(341
|
)
|
|||||||
Decrease (increase) in inventory
|
(2,637
|
)
|
2,959
|
(5,400
|
)
|
|||||||
Decrease in trade accounts payable
|
(700
|
)
|
(1,121
|
)
|
(245
|
)
|
||||||
Increase (decrease) in accrued expenses and other
|
(1,573
|
)
|
(290
|
)
|
4,202
|
|||||||
Net cash provided by (used in) operating activities from continued operation
|
$
|
(3,547
|
)
|
$
|
1,767
|
$
|
2,255
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||
Proceeds from sale of property and equipment
|
1,306
|
1,560
|
2,002
|
|||||||||
Purchase of property and equipment
|
(989
|
)
|
(1,433
|
)
|
(5,102
|
)
|
||||||
Purchase of intangible assets
|
-
|
-
|
(479
|
)
|
||||||||
Net cash used in investing activities from continued operations
|
$
|
317
|
$
|
127
|
$
|
(3,579
|
)
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||
Repayments of long-term loans
|
(440
|
)
|
(422
|
)
|
(1,701
|
)
|
||||||
Short-term credit received (repayment) from banks
|
(4,000
|
)
|
-
|
1,000
|
||||||||
Proceeds from long-term loans received
|
-
|
-
|
712
|
|||||||||
Proceeds from issuance of common shares, net
|
-
|
-
|
10,064
|
|||||||||
Exercise of options
|
1
|
-
|
165
|
|||||||||
Net cash provided by financing activities from continued operations
|
$
|
(4,439
|
)
|
$
|
(422
|
)
|
$
|
10,240
|
||||
Net increase (decrease) in cash and cash equivalents andrestricted cash
|
(7,669
|
)
|
1,472
|
8,916
|
||||||||
Cash and cash equivalents and restricted cash at beginning of period
|
16,942
|
8,026
|
8,026
|
|||||||||
Cash and cash equivalents and restricted cash at the end of period
|
$
|
9,273
|
$
|
9,498
|
16,942
|
|||||||
SUPPLEMENTARY INFORMATION ON INVESTING ACTIVITIES NOT INVOLVING CASH FLOW:
|
||||||||||||
Additions of operating lease right-of-use assets and operating lease liabilities
|
345
|
-
|
1,345
|
|||||||||
Reclassification of inventory to property, plant and equipment
|
60
|
-
|
68
|
|||||||||
Supplemental disclosure of cash flow information:
|
||||||||||||
Interest paid
|
(442
|
)
|
-
|
(1,438
|
)
|
Three months ended
|
Year ended
|
|||||||||||
March 31,
|
December 31,
|
|||||||||||
2024
|
2023
|
2023
|
||||||||||
Net income (Loss)
|
$
|
2,110
|
$
|
658
|
$
|
4,672
|
||||||
Adjustments:
|
||||||||||||
Taxes on income (tax benefit)
|
(153
|
)
|
(27
|
)
|
576
|
|||||||
Financial expense/ (income), net
|
449
|
385
|
1,330
|
|||||||||
Depreciation and amortization
|
1,428
|
1,041
|
4,902
|
|||||||||
Share based compensation
|
41
|
90
|
159
|
|||||||||
Share in results and sale of equity investment of affiliated companies
|
(198
|
)
|
(68
|
)
|
(503
|
)
|
||||||
Adjusted EBITDA
|
$
|
3,677
|
$
|
2,079
|
$
|
11,136
|
|
TAT TECHNOLOGIES LTD.
(Registrant)
By: /s/ Ehud Ben-Yair
Ehud Ben-Yair
Chief Financial Officer
|