PETAH TIKVA, Israel, Sept. 4,
2019 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a
global manufacturer and supplier of technologically advanced
solutions in the field of printed circuit boards, announced
today its financial results for the quarter ended June 30, 2019.
Mr. Eli Yaffe, Chief Executive
Officer, commented: "We are pleased that this quarter's results
reflect the continuing trend of improved results. The improved
results are a consequence of the implementation of our turnaround
plan. We are continuing our efforts to maintain the trend of
improved operating efficiencies, while increasing sales by
expanding our business into the vertical markets we currently
service."
Highlights of the Second Quarter of 2019 compared to the
Second Quarter of 2018
- Revenues for the second quarter of 2019 were
$8.2 million compared to revenues of
$8.7 million in the second
quarter of 2018;
- Gross profit increased from $578,000 (6.7% of revenues) in the second quarter
of 2018 to $1,256,000 (15.3% of
revenues) in the second quarter of 2019;
- Operating profit was $7,000 as compared to an operating loss of
$721,000 in the second quarter of
2018;
- Other Income was $871,000
in the second quarter of 2019, mainly attributable to receipt of
payment on an insurance claim made in 2018 for damage to one of our
manufacturing machines and the resulting losses that occurred as a
result of this event;
- Net profit was $790,000, or $0.19
per fully diluted share in the second quarter of 2019 compared to a
net loss of $843,000, or ($0.42) per fully diluted share, in the second
quarter of 2018;
- EBITDA was $1.25
million in the second quarter of 2019 compared to negative
EBITDA of $295,000 in the
second quarter of 2018;
- Net cash used in operating activities amounted to
$301,000 in the second quarter of
2019 compared to net cash used in operating activities of
$572,000 in the second quarter of
2018.
Highlights for the First Six Months of 2019
- Revenues for the first six months of 2019 were
$16.9 million compared to
$17.6 million in the first six months
of 2018;
- Gross profit was $2.8
million (16.5% of revenues) compared to gross profit of
$1.0 million (5.8% of revenues) in
the first six months of 2018;
- Operating profit was $440,000 compared to an operating loss of
$1.3 million in the first six months
of 2018;
- Other Income was 877,000 in the first six months of 2019
compared to nil in the first six months of 2018;
- Net profit was $1.0
million, or $0.33 per fully
diluted share compared to a net loss of $1.5
million, or ($0.75) per fully
diluted share in the first six months of 2018;
- EBITDA was $2.1
million in the first six months of 2019, compared to
negative EBITDA of $481,000 in
the first six months of 2018;
- Net cash provided by operating activities amounted to
$1.3 million compared to net cash
used in operating activities of $1.4
million in the first six months of 2018.
Conference Call
Today, Wednesday, September 4,
2019, at 8:30 a.m. Eastern
Time, Eltek will conduct a conference call to discuss the
results. The call will feature remarks by Eli Yaffe, Chief Executive Officer and
Alon Mualem, Chief Financial
Officer.
To participate, please call the following teleconference
numbers. Please allow for additional time to connect prior to the
call:
United States: 1-888-668-9141
Israel: 03-9180609
International: +972-3-9180609
At:
8:30 a.m. Eastern Time
5:30 a.m. Pacific Time
15:30 p.m. Israel Time
A replay of the call will be available through the Investor Info
section on Eltek's corporate website at http://www.nisteceltek.com
approximately 24 hours after the conference call is completed and
will be archived for 30 days.
About Eltek
Eltek – "Innovation Across the Board", is a global manufacturer
and supplier of technologically advanced solutions in the field of
printed circuit boards (PCBs), and is the Israeli leader in this
industry. PCBs are the core circuitry of most electronic devices.
Eltek specializes in the manufacture and supply of complex and high
quality PCBs, HDI, multilayered and flex-rigid boards for the
high-end market. Eltek is ITAR compliant and has AS-9100 and NADCAP
Electronics certifications. Its customers include leading companies
in the defense, aerospace and medical industries in Israel, the United
States, Europe and
Asia.
Eltek was founded in 1970. The Company's headquarters, R&D,
production and marketing center are located in Israel. Eltek also operates through its
subsidiaries in North America and
in Europe and by agents and
distributors in Europe,
India, South Africa and South America.
For more information, visit Eltek's web site at
www.nisteceltek.com.
Use of Non-GAAP Financial Information
The Company reports financial results in accordance with U.S.
GAAP and herein provides some non-GAAP measures, including EBITDA.
These non-GAAP measures are not in accordance with, nor are they a
substitute for, GAAP measures. These non-GAAP measures are intended
to supplement the Company's presentation of its financial results
that are prepared in accordance with GAAP. The Company uses the
non-GAAP measures presented to evaluate and manage the Company's
operations internally. The Company is also providing this
information to assist investors in performing additional financial
analysis. Reconciliation between the company's results on a GAAP
and non-GAAP basis is provided in a table below.
Forward Looking Statement:
Certain matters discussed in this news release are
forward-looking statements that involve a number of risks and
uncertainties including, but not limited to statements regarding
expected results in future quarters, risks in product and
technology development and rapid technological change, product
demand, the impact of competitive products and pricing, market
acceptance, the sales cycle, changing economic conditions and other
risk factors detailed in the Company's Annual Report on Form 20-F
and other filings with the United States Securities and Exchange
Commission.
(Tables follow)
|
Eltek
Ltd.
|
|
Consolidated
Statements of Operations
|
|
(In thousands US$,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2019
|
2018
|
|
2019
|
|
2018
|
|
|
Revenues
|
8,198
|
8,667
|
|
16,934
|
|
17,610
|
|
|
Costs of
revenues
|
(6,942)
|
(8,089)
|
|
(14,139)
|
|
(16,588)
|
|
|
Gross
profit
|
1,256
|
578
|
|
2,795
|
|
1,022
|
|
|
Selling, general and
administrative expenses
|
(1,249)
|
(1,299)
|
|
(2,355)
|
|
(2,367)
|
|
|
R&D expenses,
net
|
-
|
-
|
|
-
|
|
(1)
|
|
|
Operating profit
(loss)
|
7
|
(721)
|
|
440
|
|
(1,347)
|
|
|
Financial expenses,
net
|
(78)
|
(105)
|
|
(263)
|
|
(132)
|
|
|
Other income,
net
|
871
|
-
|
|
877
|
|
-
|
|
|
Profit (loss)
before income tax
|
800
|
(825)
|
|
1,054
|
|
(1,479)
|
|
|
Tax
expenses
|
(10)
|
(17)
|
|
(22)
|
|
(34)
|
|
|
Net Profit
(loss)
|
790
|
(843)
|
|
1,032
|
|
(1,513)
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per ordinary share
|
0.19
|
(0.42)
|
|
0.33
|
|
(0.75)
|
|
|
Weighted average
number of ordinary shares
|
|
|
|
|
|
used to compute basic
and diluted net loss per
|
|
|
|
|
|
ordinary share (in
thousands)
|
4,148
|
2,029
|
|
3,088
|
|
2,029
|
|
|
|
|
|
|
|
|
|
|
|
Eltek
Ltd.
|
|
Consolidated
Balance Sheets
|
|
(In thousands
US$)
|
|
|
|
|
|
|
June
30,
|
December
31,
|
|
|
2019
|
2018
|
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
1,837
|
992
|
|
Receivables: Trade, net of provision for
doubtful accounts
|
7,587
|
5,682
|
|
Other
|
110
|
868
|
|
Inventories
|
3,910
|
3,611
|
|
Prepaid
expenses
|
266
|
292
|
|
Total current
assets
|
13,710
|
11,445
|
|
Long term
assets
|
|
|
|
Severance pay
fund
|
57
|
53
|
|
Long term prepaid
expenses
|
-
|
39
|
|
Operating lease right
of use assets
|
3,054
|
-
|
|
Total long term
assets
|
3,111
|
92
|
|
Fixed assets, less
accumulated depreciation
|
6,271
|
6,623
|
|
Total
Assets
|
23,092
|
18,160
|
|
Liabilities and
Shareholder's equity
|
|
Current
liabilities
|
|
|
|
Short-term credit and
current maturities of long-term debts
|
|
3,056
|
6,606
|
|
Short-term credit
from related party
|
|
3,365
|
2,668
|
|
Accounts payable:
Trade
|
4,312
|
4,108
|
|
Other
|
3,691
|
3,377
|
|
Short-term operating
lease liabilities
|
1,139
|
-
|
|
Total current
liabilities
|
15,563
|
16,759
|
|
Long-term
liabilities
|
|
|
Long term debt,
excluding current maturities
|
116
|
308
|
|
Employee severance
benefits
|
214
|
211
|
|
Long-term operating
lease liabilities
|
1,903
|
-
|
|
Total long-term
liabilities
|
2,233
|
519
|
|
Equity
|
|
|
|
|
Ordinary shares, NIS
3.0 par value authorized 10,000,000
shares, issued and outstanding 2,028,552
|
|
3,964
|
1,985
|
|
Additional paid-in
capital
|
|
18,583
|
17,270
|
|
Cumulative foreign
currency translation adjustments
|
|
2,339
|
2,340
|
|
Capital
reserve
|
|
891
|
800
|
|
Accumulated
deficit
|
|
(20,481)
|
(21,513)
|
|
Shareholders'
equity
|
|
5,296
|
882
|
|
Total liabilities
and shareholders' equity
|
23,092
|
18,160
|
|
Eltek
Ltd.
|
|
Unaudited Non-GAAP
EBITDA Reconciliations
|
|
(In thousands
US$)
|
|
|
|
|
|
|
|
|
|
Non-GAAP EBITDA
Reconciliations
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2019
|
2018
|
|
2019
|
|
2018
|
|
|
Unaudited
|
|
Unaudited
|
|
GAAP net Income
(loss)
|
|
790
|
(843)
|
|
1,032
|
|
(1,513)
|
|
Add back
items:
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
|
78
|
105
|
|
263
|
|
132
|
|
Income tax
expense
|
|
10
|
17
|
|
22
|
|
34
|
|
Depreciation and
amortization
|
|
372
|
425
|
|
744
|
|
866
|
|
Non-GAAP
EBITDA
|
|
1,250
|
(296)
|
|
2,061
|
|
(481)
|
|
|
|
Eltek
Ltd.
|
|
Consolidated
Statement of Cash flow
|
|
(In thousands US$,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2019
|
2018
|
|
2019
|
|
2018
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
Net Income
(loss)
|
|
790
|
(843)
|
|
1,032
|
|
(1,513)
|
|
|
Adjustments to
reconcile net loss to net
|
|
|
|
|
|
|
|
|
|
cash flows
provided by operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
375
|
425
|
|
748
|
|
866
|
|
|
Stock-based
compensation
|
|
31
|
-
|
|
62
|
|
-
|
|
|
Transaction with
controlling shareholder
|
|
15
|
-
|
|
29
|
|
-
|
|
|
Revaluation of long
term loans
|
|
(8)
|
8
|
|
(24)
|
|
24
|
|
|
|
413
|
433
|
|
815
|
|
890
|
|
|
Changes in operating
leases, net
|
|
(3)
|
-
|
|
(12)
|
|
-
|
|
|
Decrease (increase)
in trade receivables
|
|
(1,838)
|
78
|
|
(1,598)
|
|
(1,491)
|
|
|
Decrease in
other receivables and prepaid expenses
|
|
560
|
132
|
|
875
|
|
851
|
|
|
Decrease (increase)
in inventories
|
|
302
|
(330)
|
|
(114)
|
|
(915)
|
|
|
Increase
(decrease) in trade payables
|
|
(652)
|
(205)
|
|
194
|
|
770
|
|
|
Increase (decrease)
in other liabilities and accrued expenses
|
|
136
|
149
|
|
139
|
|
(50)
|
|
|
Increase (decrease)
in employee severance benefits, net
|
|
(9)
|
14
|
|
(9)
|
|
27
|
|
|
|
(1,504)
|
(162)
|
|
(525)
|
|
(808)
|
|
|
Net cash provided
by (used in) operating activities
|
|
(301)
|
(572)
|
|
1,322
|
|
(1,431)
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Owners
investment
|
|
|
|
|
|
|
|
|
|
Purchase of fixed
assets
|
|
(91)
|
(30)
|
|
(250)
|
|
(110)
|
|
|
Net cash used in
investing activities
|
|
(91)
|
(30)
|
|
(250)
|
|
(110)
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
Short- term bank
credit, net
|
|
(1,787)
|
1,501
|
|
(3,394)
|
|
1,160
|
|
|
Short- term
shareholder loan
|
|
-
|
-
|
|
555
|
|
1,156
|
|
|
Issuance of ordinary
shares in rights offering, net
|
|
3,298
|
-
|
|
3,298
|
|
-
|
|
|
Repayment of
long-term loans from bank
|
|
(231)
|
(228)
|
|
(456)
|
|
(464)
|
|
|
Repayment of credit
from fixed asset payables
|
|
(98)
|
(73)
|
|
(194)
|
|
(159)
|
|
|
Net cash provided
by (used in) financing activities
|
|
1,182
|
1,200
|
|
(191)
|
|
1,693
|
|
|
Effect of
translation adjustments
|
|
(21)
|
(42)
|
|
(37)
|
|
(48)
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
769
|
556
|
|
844
|
|
104
|
|
|
Cash and cash
equivalents at beginning of the period
|
|
1,068
|
435
|
|
993
|
|
887
|
|
|
Cash and cash
equivalents at period end
|
|
1,837
|
991
|
|
1,837
|
|
991
|
|
Investor Contact:
Alon Mualem
Chief Financial Officer
alonm@nisteceltek.com
+972-3-9395023
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SOURCE Eltek Ltd.