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
|
Attachments
- Original Link
- Permalink
Disclaimer
TAT Technologies Ltd. published this content on 22 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 May 2024 20:30:36 UTC.