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Press Release dated November 18, 2016 re TAT Technologies Ltd. Reports Third Quarter 2016 Results.

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Press Release
Source: TAT Technologies Limited

TAT Technologies Reports Third Quarter 2016 Results

GEDERA, Israel, November 18, 2016 - TAT Technologies Ltd. (NASDAQ: TATT - News) (the 'Company'), a leading provider of products and services to the commercial and military aerospace and ground defense industries, reported today its unaudited results for the three month and nine month periods ended September 30, 2016.

Financial Highlights for the Third quarter of 2016 (unaudited):

•
Total Revenue: $23.7 million compared to $22 million in the third quarter of 2015.
•
Operating income: $1.5 million compared to $0.5 million in the third quarter of 2015.
•
EBITDA: $2.4 million compared to $1.1 million in the third quarter of 2015.
•
Net income: $0.9 million compared to $0.2 million in the third quarter of 2015.
•
Earnings per share basic and diluted: $0.1 per share compared to $0.02 per share in the third quarter of 2015.
•
Net cash provided by (used in) operating activities: $2.2 million compared to $(0.1) million in the third quarter of 2015.
•
Dividend distribution:on August 9, 2016, the company distributed to shareholders a cash dividend in the total amount of $3.0 million.
During the second quarter of 2016, the Company recorded an accrual, related to tax expenses, of approximately $2.4 million of which $ 2 million is related to a deferred tax liability for future distribution of earnings from foreign subsidiaries of the Company, since the Company's Board of Directors considers future distribution of dividends from these earnings to the Company's shareholders.

Mr. Igal Zamir, TAT's President & CEO commented; 'We are pleased with the 2016 third quarter financial results, reflecting improved profitability mainly due to operational efficiencies improvements. Piedmont completed the move to its new, state of the art landing gears and materials plating facility adding new capabilities, Limco continues to enjoy strong demand with increasing growth opportunities in Heat Exchangers MRO and our OEM Heat Exchangers business enjoys a strong backlog.'

About TAT Technologies LTD

TAT Technologies Ltd. is a leading provider of products and services to the commercial and military aerospace and ground defense industries. TAT operates under four segments: (i) Original Equipment Manufacturing or 'OEM' of Heat Management Solutions (ii) Heat Transfer Services and Products (iii) Maintenance, Repair and Overhaul or 'MRO' services of Aviation Components; and (iv) overhaul and coating of jet engine blades and components

TAT's activities in the area of OEM Heat Management Solutions are focused on the design, development, manufacture, and sale of the following: (i) a broad range of heat transfer components including heat exchangers, pre-coolers and oil/fuel hydraulic coolers used in mechanical and electronic systems on-board commercial, military and business aircraft; (ii) environmental control and cooling systems on board aircraft and for ground applications; and (iii) a variety of other electronic and mechanical aircraft accessories and systems such as pumps, valves, power systems and turbines.

TAT's activities in the area of Heat Transfer Services and Products include the maintenance, repair and overhaul of heat transfer equipment and to a lesser extent, the manufacture of certain heat transfer product parts. TAT's Limco subsidiary operates an FAA certified repair station, which provides heat transfer MRO services and products for airlines, air cargo carriers, maintenance service centers and the military.

TAT's activities in the area of MRO services for Aviation Components include the maintenance, repair and overhaul of APUs, Landing Gears and other aircraft components. TAT's Piedmont subsidiary operates an FAA certified repair station, which provides aircraft component MRO services for airlines, air cargo carriers, maintenance service centers and the military.

TAT's activities in the area of jet engine overhaul includes the overhaul and coating of jet engine components such as turbine vanes and blades, fan blades, variable inlet guide vanes, afterburner flaps and other components.

For more information of TAT Technologies Ltd., please visit our web-site:

www.tat-technologies.com

Guy Nathanzon - CFO

TAT Technologies Ltd.

Tel: 972-8-862-8500

guyn@tat-technologies.com

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements which include, without limitation, statements regarding possible or assumed future operation results. These statements are hereby identified as 'forward-looking statements' for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause our results to differ materially from management's current expectations. Actual results and performance can also be influenced by other risks that we face in running our operations including, but are not limited to, general business conditions in the airline industry, changes in demand for our services and products, the timing and amount or cancellation of orders, the price and continuity of supply of component parts used in our operations, the change of control that will occur on the sale by the receiver of the Company's shares held by our previously controlling stockholders, and other risks detailed from time to time in the Company's filings with the Securities Exchange Commission, including, its annual report on form 20-F and its periodic reports on form 6-K. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statement.

TAT TECHNOLOGIES AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

(In thousands)

September 30,
December 31,
2016
2015
(unaudited)
(audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
18,227
$
18,688
Short-term bank deposits
951
8,122
Accounts receivable, net
22,639
19,151
Other current assets and prepaid expenses
3,333
3,025
Inventory, net
37,974
36,664
Total current assets
83,124
85,650
NON-CURRENT ASSETS:
Investment in affiliates
507
169
Funds in respect of employee rights upon retirement
2,598
2,626
Deferred income taxes
530
890
Intangible assets, net
1,213
1,314
Property, plant and equipment, net
21,172
18,934
Total non-current assets
26,020
23,933
Total assets
$
109,144
$
109,583
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable
8,537
7,022
Accrued expenses
8,673
7,815
Total current liabilities
17,210
14,837
NON CURRENT LIABILITIES:
Other long-term liabilities
66
189
Liability in respect of employee rights upon retirement
2,931
2,871
Deferred income taxes
1,715
262
Total non-current liabilities
4,712
3,322
Total liabilities
21,922
18,159
EQUITY:
Share capital
2,797
2,793
Additional paid-in capital
64,719
64,529
Treasury stock at cost
(2,088
)
(2,088
)
Accumulated other comprehensive loss
155
(4
)
Retained earnings
21,639
26,194
Total shareholders' equity
87,222
91,424
Total liabilities and shareholders' equity
$
109,144
$
109,583

TAT TECHNOLOGIES AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share and per share data)

Three months ended
Nine months ended
Year ended
September 30,
December 31,
2016
2015
2016
2015
2015
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Revenues:
Products
$
6,940
$
8,254
$
22,950
$
22,980
$
31,339
Services
16,705
13,694
47,859
40,924
54,268
23,645
21,948
70,809
63,904
85,607
Cost of goods:
Products
5,147
7,003
18,179
18,591
24,466
Services
13,605
11,547
39,407
33,946
47,476
18,752
18,550
57,586
52,537
71,942
Gross Profit
4,893
3,398
13,223
11,367
13,665
Operating expenses:
Research and development, net
213
247
951
570
890
Selling and marketing
911
647
2,868
2,130
2,903
General and administrative
2,300
2,033
7,392
5,981
8,469
Other loss (income)
(18
)
(1
)
(21
)
-
631
Gain on bargain purchase
(4,833
)
3,406
2,926
11,190
8,681
8,060
Operating income
1,487
472
2,033
2,686
5,605
Financial (expenses) income, net
(60
)
17
(92
)
(232
)
(349
)
Income before taxes on income
1,427
489
1,941
2,454
5,256
Taxes on income
537
317
3,445
1,099
644
Income (loss) before equity investment
890
172
(1,504
)
1,355
4,612
Share in results and sale of equity investment of affiliated companies
(37
)
-
(51
)
1,491
1,237
Net income (loss)
$
853
$
172
$
(1,555
)
$
2,846
$
5,849
Basic and diluted income (loss) per share
Net income (loss) per share
$
0.10
$
0.02
$
(0.18
)
$
0.32
$
0.66
Weighted average number of shares outstanding
Basic
8,828,444
8,808,344
8,828,444
8,808,344
8,808,344
Diluted
8,837,714
8,810,824
8,829,894
8,809,844
8,810,689

TAT TECHNOLOGIES AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

Three months ended
Nine months ended
Year ended
September 30,
December 31,
2016
2015
2016
2015
2015
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Net income (loss)
$
853
$
172
$
(1,555
)
$
2,846
$
5,849
Other comprehensive income
Net unrealized gains (losses) from derivatives
181
-
373
-
(5
)
Reclassification adjustments for gains included in net income and inventory
(93
)
-
(214
)
-
1
Total other comprehensive income (loss)
$
941
$
172
$
(1,396
)
$
2,846
$
5,845

TAT TECHNOLOGIES AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASHFLOWS

(In thousands)

Three months ended
Nine months ended
Year ended
September 30,
December 31,
2016
2015
2016
2015
2015
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) attributable to TAT Technologies Ltd. shareholders
$
853
$
172
$
(1,555
)
$
2,846
$
5,849
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
929
675
2,660
1,890
2,781
Gain on sale of property, plant and equipment
(19
)
-
(18
)
-
-
Interest from short-term bank deposits and restricted deposits
-
(5
)
(11
)
(20
)
(33
)
Loss (gain) from change in fair value of derivatives
(122
)
-
(170
)
-
10
Provision for doubtful accounts
10
144
53
144
206
Share in results and sale of equity investment of affiliated Company
37
-
51
(1,491
)
(1,237
)
Share based compensation
37
11
64
26
38
Gain on bargain purchase
-
-
-
-
(4,833
)
Liability in respect of employee rights upon retirement
47
(68
)
60
53
28
Deferred income taxes, net
(287
)
30
1,813
672
(21
)
Changes in operating assets and liabilities:
Increase in trade accounts receivable
(44
)
(1,261
)
(3,541
)
(3,903
)
(2,375
)
Decrease (increase) in other current assets and prepaid expenses
(913
)
35
31
(276
)
(85
)
Decrease (increase) in inventory
(862
)
779
(1,367
)
(418
)
(571
)
Increase (decrease) in trade accounts payable
1,503
(396
)
1,379
(801
)
436
Increase (decrease) in accrued expenses
1,013
(236
)
1,358
1,052
525
Increase (decrease) in other long-term liabilities
(1
)
39
(123
)
25
15
Net cash provided by (used in) operating activities
$
2,181
$
(81
)
$
684
$
(201
)
$
733
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions of subsidiary, net of cash acquired
-
-
-
-
(1,796
)
Investment in affiliated company
(376
)
-
(389
)
-
-
Proceeds from sale of equity investment of affiliated Company
-
-
-
3,624
3,624
Funds in respect of employee rights upon retirement
98
76
75
(61
)
8
Proceeds from sale of property and equipment
17
3
18
9
9
Purchase of property and equipment
(1,078
)
(745
)
(4,661
)
(2,444
)
(3,315
)
Investments in short-term deposits
-
-
-
-
(8,109
)
Maturities of short-term deposits
5,182
-
7,182
-
5,109
Cash flows provided by (used in) investing activities
$
3,843
$
(666
)
$
2,225
$
1,128
$
(4,470
)
Cash flows used in financing activities
$
(3,500
)
-
$
(3,370
)
-
$
(469
)
Net increase (decrease) in cash and cash equivalents
2,524
(747
)
(461
)
927
(4,206
)
Cash and cash equivalents at beginning of period
15,703
24,568
18,688
22,894
22,894
Cash and cash equivalents at end of period
$
18,227
$
23,821
$
18,227
$
23,821
$
18,688

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

TAT TECHNOLOGIES LTD.
(Registrant)
By:
/s/ Guy Nathanzon
Guy Nathanzon
Chief Financial Officer

Date: November 18, 2016

9

TAT Technologies Ltd. published this content on 20 November 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 21 November 2016 08:51:04 UTC.

Original documenthttps://www.sec.gov/Archives/edgar/data/808439/000117891316006982/zk1619229.htm

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