1. |
Press Release dated March 6, 2024, re TAT Technologies Ltd. Reports Full Year 2023 Results.
|
Press Release
|
Source: TAT Technologies Limited
|
• |
Total revenues for the twelve months ended December 31, 2023, were $113.8 million compared to $84.6 million for the twelve months ended December 31, 2022, an increase of 35%.
|
• |
Gross profit for the twelve months ended December 31, 2023, were $22.5 million (19.7% of revenues) compared to $15.9 million (18.8% of revenues) for the twelve months ended December 31, 2022, an increase of 41%.
|
• |
Adjusted EBITDA for the twelve months ended December 31, 2023, was $11.2 million compared to $4 million for the twelve months ended December 31, 2022, an increase of 176%.
|
• |
GAAP net profit from continued operations for the twelve months ended December 31, 2023, was $4.7 million ($0.51 per share on a fully diluted basis) compared to GAAP net loss from continued operations of $1.6 million (net profit of $0.1 million without a onetime impact of our restructuring plan) ($0.175 loss per share on a fully diluted basis) for the twelve months ended December 31, 2022.
|
• |
Net debt as of December 31, 2023, was $10.3 million compared to net debt of $19.4 million as of December 31, 2022.
|
• |
In December 2023 the Company raised $10.1 million (net from all related expenses) in a private placement sale to Israelis institutional investors.
|
December 31,
| ||||||||
2023
|
2022
| |||||||
ASSETS
| ||||||||
CURRENT ASSETS:
| ||||||||
Cash and cash equivalents
|
$
|
15,979
|
$
|
7,722
| ||||
Accounts receivable, net of allowance for credit losses of $345 and $527 thousand as of December 31, 2023 and December 31, 2022 respectively |
20,009
|
15,622
| ||||||
Restricted deposit
|
661
|
-
| ||||||
Other current assets and prepaid expenses
|
6,397
|
6,047
| ||||||
Inventory
|
51,280
|
45,759
| ||||||
Total current assets
|
94,326
|
75,150
| ||||||
NON-CURRENT ASSETS:
| ||||||||
Restricted deposit
|
302
|
304
| ||||||
Investment in affiliates
|
2,168
|
1,665
| ||||||
Funds in respect of employee rights upon retirement
|
664
|
780
| ||||||
Deferred income taxes
|
994
|
1,229
| ||||||
Property, plant and equipment, net
|
42,554
|
43,423
| ||||||
Operating lease right of use assets
|
2,746
|
2,477
| ||||||
Intangible assets, net
|
1,823
|
1,623
| ||||||
Total non-current assets
|
51,251
|
51,501
| ||||||
Total assets
|
$
|
145,577
|
$
|
126,651
|
December 31,
| ||||||||
2023
|
2022
| |||||||
LIABILITIES AND EQUITY
| ||||||||
CURRENT LIABILITIES:
| ||||||||
Current maturities of long-term loans
|
$
|
2,200
|
$
|
1,876
| ||||
Credit line from bank
|
12,138
|
6,101
| ||||||
Accounts payable
|
9,988
|
10,233
| ||||||
Accrued expenses and other
|
13,952
|
9,876
| ||||||
Operating lease liabilities
|
1,033
|
904
| ||||||
Total current liabilities
|
39,311
|
28,990
| ||||||
NON-CURRENT LIABILITIES:
| ||||||||
Long-term loans
|
12,886
|
19,408
| ||||||
Liability in respect of employee rights upon retirement
|
1,000
|
1,148
| ||||||
Operating lease liabilities
|
1,697
|
1,535
| ||||||
Total non-current liabilities
|
15,583
|
22,091
| ||||||
COMMITMENTS AND CONTINGENCIES (NOTE 15)
| ||||||||
Total liabilities
|
54,894
|
51,081
| ||||||
EQUITY:
| ||||||||
Ordinary shares of NIS 0.9 par value:
Authorized: 13,000,000 shares at December 31, 2023 and at December 31, 2022;
Issued: 10,377,085 and 9,186,019 shares at December 31, 2023 and at
December 31, 2022 respectively; Outstanding: 10,102,612 and 8,911,546
shares at December 31, 2023 and at December 31, 2022 respectively
|
3,140
|
2,842
| ||||||
Additional paid-in capital
|
76,335
|
66,245
| ||||||
Treasury shares, at cost, 274,473 shares at December 31, 2023 and 2022
|
(2,088
|
)
|
(2,088
|
)
| ||||
Accumulated other comprehensive income (loss)
|
27
|
(26
|
)
| |||||
Retained earnings
|
13,269
|
8,597
| ||||||
Total shareholders' equity
|
90,683
|
75,570
| ||||||
Total liabilities and shareholders' equity
|
145,577
|
$
|
126,651
|
Year ended December 31,
| ||||||||||||
2023
|
2022
|
2021
| ||||||||||
Revenue:
| ||||||||||||
Products
|
$
|
35,241
|
$
|
25,460
|
$
|
25,870
| ||||||
Services
|
78,553
|
59,096
|
52,103
| |||||||||
113,794
|
84,556
|
77,973
| ||||||||||
Cost of revenue, net:
| ||||||||||||
Products
|
30,517
|
21,631
|
23,761
| |||||||||
Services
|
60,809
|
46,997
|
42,942
| |||||||||
91,326
|
68,628
|
66,703
| ||||||||||
Gross profit
|
22,468
|
15,928
|
11,270
| |||||||||
Operating expenses:
| ||||||||||||
Research and development, net
|
715
|
479
|
517
| |||||||||
Selling and marketing, net
|
5,523
|
5,629
|
5,147
| |||||||||
General and administrative, net
|
10,588
|
9,970
|
8,354
| |||||||||
Other (income) expenses
|
(433
|
)
|
(90
|
)
|
(468
|
)
| ||||||
Restructuring expenses, net
|
-
|
1,715
|
1,755
| |||||||||
16,393
|
17,703
|
15,305
| ||||||||||
Operating income (loss)
|
6,075
|
(1,775
|
)
|
(4,035
|
)
| |||||||
Interest expenses,net
|
(1,683
|
)
|
(902
|
)
|
(250
|
)
| ||||||
Other financial income (expenses), net
|
353
|
1,029
|
(290
|
)
| ||||||||
Income profit (loss) before taxes on income (tax benefit)
|
4,745
|
(1,648
|
)
|
(4,575
|
)
| |||||||
Taxes on income (tax benefit)
|
576
|
98
|
(662
|
)
| ||||||||
Loss before share of equity investment
|
4,169
|
(1,746
|
)
|
(3,913
|
)
| |||||||
Share in profit (losses) of equity investment of affiliated companies
|
503
|
184
|
(76
|
)
| ||||||||
Net income (loss) from continued operation
|
$
|
4,672
|
$
|
(1,562
|
)
|
$
|
(3,989
|
)
| ||||
Year ended December 31, | ||||||||||||
2023
|
2022
|
2021
| ||||||||||
Net income (loss) from discontinued operation
|
-
|
-
|
$
|
427
| ||||||||
Net income loss
|
$
|
4,672
|
$
|
(1,562
|
)
|
$
|
(3,562
|
)
| ||||
Net income (loss) per share from continued operation -basic
|
$
|
0.52
|
$
|
(0.175
|
)
|
$
|
(0.45
|
)
| ||||
Net income (loss) per share from continued operation -diluted
|
$
|
0.51
|
$
|
(0.175
|
)
|
$
|
(0.45
|
)
| ||||
Net income (loss) per share from discontinued operation - basic and diluted
|
-
|
-
|
$
|
0.05
| ||||||||
Net income (loss) per share - basic
|
$
|
0.52
|
$
|
(0.175
|
)
|
$
|
(0.4
|
)
| ||||
Net income (loss) per share - diluted
|
$
|
0.51
|
$
|
(0.175
|
)
|
$
|
(0.4
|
)
| ||||
Weighted average number of shares outstanding:
| ||||||||||||
Basic
|
8,961,689
|
8,911,546
|
8,874,696
| |||||||||
Diluted
|
9,084,022
|
8,911,546
|
8,874,696
|
Year ended December 31, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Net loss)
|
$
|
4,672
|
$
|
(1,562
|
)
|
$
|
(3,562
|
)
| ||||
Other comprehensive income (loss), net
| ||||||||||||
Net unrealized gains (losses) from derivatives
|
53
|
(89
|
)
|
(76
|
)
| |||||||
Reclassification adjustments for loss (gains) from derivatives included in net income
|
-
|
30
|
(19
|
)
| ||||||||
Total other comprehensive income (loss)
|
53
|
$
|
(59
|
)
|
$
|
(95
|
)
| |||||
Total comprehensive income (loss)
|
$
|
4,725
|
$
|
(1,621
|
)
|
$
|
(3,657
|
)
|
Ordinary shares
|
Accumulated
| |||||||||||||||||||||||||||
Number of shares issued
|
Amount
|
Additional paid-in capital
|
other comprehensive income (loss)
|
Treasury shares
|
Retained earnings
|
Total equity
| ||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2020
|
9,149,169
|
$
|
2,809
|
$
|
65,711
|
$
|
128
|
$
|
(2,088
|
)
|
13,721
|
$
|
80,281
| |||||||||||||||
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2020:
| ||||||||||||||||||||||||||||
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, 2021:
| ||||||||||||||||||||||||||||
Comprehensive loss
|
-
|
-
|
-
|
(59
|
)
|
-
|
(1,562
|
)
|
(1,621
|
)
| ||||||||||||||||||
Exercise of Options
|
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, 2022:
| ||||||||||||||||||||||||||||
Comprehensive income
|
53
|
4,672
|
4,725
| |||||||||||||||||||||||||
Exercise of Options
|
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
|
Year ended December 31,
| ||||||||||||
2023
|
2022
|
2021
| ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
| ||||||||||||
Net income (loss) from continued operations
|
$
|
4,672
|
$
|
(1,562
|
)
|
$
|
(3,989
|
)
| ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
| ||||||||||||
Depreciation and amortization
|
4,710
|
3,706
|
4,881
| |||||||||
Loss (gain) from change in fair value of derivatives
|
(9
|
)
|
8
|
(19
|
)
| |||||||
Change in funds in respect of employee rights upon retirement
|
116
|
377
|
76
| |||||||||
Change in operating right of use asset and operating leasing liability
|
22
|
(82
|
)
|
(73
|
)
| |||||||
Lease modification
|
-
|
-
|
(1,315
|
)
| ||||||||
Non cash financial expenses
|
(172
|
)
|
(902
|
)
|
8
| |||||||
Increase (decrease) in restructuring plan provision
|
(126
|
)
|
(467
|
)
|
657
| |||||||
change in allowance for credit losses
|
(182
|
)
|
138
|
248
| ||||||||
Share in results of affiliated companies
|
(503
|
)
|
(184
|
)
|
76
| |||||||
Share based compensation
|
159
|
218
|
160
| |||||||||
Liability in respect of employee rights upon retirement
|
(148
|
)
|
(356
|
)
|
94
| |||||||
Impairment of fixed assets
|
-
|
-
|
1,820
| |||||||||
Capital gain from sale of property, plant and equipment
|
(530
|
)
|
(90
|
)
|
(468
|
)
| ||||||
Deferred income taxes, net
|
235
|
23
|
(686
|
)
| ||||||||
Government loan forgiveness
|
-
|
-
|
(1,442
|
)
| ||||||||
Changes in operating assets and liabilities: | ||||||||||||
increase in trade accounts receivable
|
(4,205
|
)
|
(2,659
|
)
|
(2,934
|
)
| ||||||
increase in other current assets and prepaid expenses
|
(341
|
)
|
(1,836
|
)
|
(1,035
|
)
| ||||||
increase in inventory
|
(5,400
|
)
|
(5,069
|
)
|
(681
|
)
| ||||||
Increase (decrease) in trade accounts payable
|
(245
|
)
|
1,143
|
2,571
| ||||||||
Increase (decrease) in accrued expenses and other
|
4,202
|
2,727
|
(218
|
)
| ||||||||
Net cash provided by (used in) operating activities from continued operation
|
$
|
2,255
|
$
|
(4,867
|
)
|
$
|
(2,269
|
)
| ||||
CASH FLOWS FROM INVESTING ACTIVITIES:
| ||||||||||||
Proceeds from sale of property and equipment
|
2,002
|
93
|
1,163
| |||||||||
Purchase of property and equipment
|
(5,102
|
)
|
(16,213
|
)
|
(16,247
|
)
| ||||||
Purchase of intangible assets
|
(479
|
)
|
-
|
(555
|
)
| |||||||
Net cash used in investing activities from continued operations
|
$
|
(3,579
|
)
|
$
|
(16,120
|
)
|
$
|
(15,639
|
)
|
Year ended December 31,
| ||||||||||||
2023
|
2022
|
2021
| ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
| ||||||||||||
Repayments of long-term loans
|
(1,701
|
)
|
(1,071
|
)
|
-
| |||||||
Short-term credit received from banks
|
1,000
|
-
|
3,000
| |||||||||
Proceeds from long-term loans received
|
712
|
16,680
|
3,042
| |||||||||
Proceeds from issuance of common shares, net
|
10,064
|
-
|
-
| |||||||||
Exercise of options
|
165
|
189
|
-
| |||||||||
Net cash provided by financing activities from continued operations
|
$
|
10,240
|
$
|
15,798
|
$
|
6,042
| ||||||
CASH FLOWS FROM DISCONTINUED ACTIVITIES:
| ||||||||||||
Net cash provided by operating activities
|
-
|
-
|
777
| |||||||||
Net cash provided by (used in) discontinued activities
|
-
|
-
|
$
|
777
| ||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS
|
8,916
|
(5,189
|
)
|
(11,089
|
)
| |||||||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS AT BEGINNING OF YEAR
|
8,026
|
13,215
|
24,304
| |||||||||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS AT END OF YEAR
|
16,942
|
8,026
|
13,215
|
SUPPLEMENTARY INFORMATION ON INVESTING ACTIVITIES NOT INVOLVING CASH FLOW: | ||||||||||||
Purchase of property, plant and equipment on credit
|
$
|
-
|
$
|
196
|
$
|
199
| ||||||
Additions of operating lease right-of-use assets and operating lease liabilities
|
$
|
1,345
|
$
|
318
|
$
|
399
| ||||||
Reclassification of inventory to property, plant and equipment
|
$
|
68
|
$
|
284
|
$
|
829
| ||||||
Capital contribution to equity method investee
|
$
|
-
|
$
|
787
|
$
|
-
| ||||||
Supplemental disclosure of cash flow information: | ||||||||||||
Interest paid
|
$
|
(1,438
|
)
|
$
|
(796
|
)
|
$
|
(251
|
)
| |||
Income taxes received (paid), net
|
$ |
- | $ |
-
|
$ |
(3
|
)
|
December 31,
|
December 31,
| |||||||
2023
|
2022
| |||||||
Net income (loss)
|
$
|
4,672
|
$
|
(1,562
|
)
| |||
Adjustments:
| ||||||||
Share in results of equity investment of affiliated companies
|
(503
|
)
|
(184
|
)
| ||||
Taxes on income (tax benefit)
|
576
|
98
| ||||||
Financial expenses/ (income), net
|
1,330
|
(127
|
)
| |||||
Depreciation and amortization
|
4,902
|
3,878
| ||||||
Share base compensation
|
159
|
218
| ||||||
Restructuring expenses
|
-
|
1,715
| ||||||
Adjusted EBITDA
|
11,136
|
4,036
|
TAT TECHNOLOGIES LTD.
(Registrant)
By: /s/ Ehud Ben-Yair
Ehud Ben-Yair
Chief Financial Officer
|
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Disclaimer
TAT Technologies Ltd. published this content on 06 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 March 2024 21:36:48 UTC.