PETACH-TIKVA, Israel,
Nov. 20, 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 September 30, 2019.
Mr. Eli Yaffe, Chief Executive
Officer, commented: "We are pleased with our growth in revenues
and profitability in the third quarter's results. The improved
results are a consequence of the implementation of our previously
announced turnaround plan."
Highlights of the Third Quarter of 2019 compared to the Third
Quarter of 2018
- Revenues for the third quarter of 2019 were $9.3 million compared to revenues of $8.5 million in the third quarter of 2018;
- Gross profit increased from $973,000 (11.4% of revenues) in the third quarter
of 2018 to $1.8 million (19.1% of
revenues) in the third quarter of 2019;
- Operating profit was $568,000 this quarter as compared to
an operating loss of $307,000 in the
third quarter of 2018;
- Net profit was $391,000,
or $0.09 per fully diluted share in
the third quarter of 2019 compared to a net loss of $463,000, or ($0.23) per fully diluted share, in the third
quarter of 2018;
- EBITDA was $940,000 in the third quarter of
2019 compared to EBITDA of $109,000
in the third quarter of 2018;
- Net cash provided by operating activities amounted to
$1.4 million in the third quarter of
2019 compared to net cash provided by operating activities of
$164,000 in the third quarter of
2018.
Highlights for the First Nine Months of 2019
- Revenues for the first nine months of 2019 were
$26.2 million compared to
$26.1 million in the first nine
months of 2018;
- Gross profit was $4.5
million (17.4% of revenues) compared to gross profit of
$2.0 million (7.6% of revenues) in
the first nine months of 2018;
- Operating profit was $1.0
million compared to an operating loss of $1.7 million in the first nine months of
2018;
- Other Income was $875,000
in the first nine months of 2019 compared to nil in the first nine
months of 2018;
- Net profit was $1.4
million, or $0.40
per fully diluted share compared to a net loss of $2.0 million, or ($0.97) per fully diluted share in the first nine
months of 2018;
- EBITDA was $3.0 million in
the first nine months of 2019, compared to negative EBITDA of
$373,000 in the first nine months of
2018;
- Net cash provided by operating activities amounted to
$2.7 million compared to net cash
used in operating activities of $950,000 in the first nine months of 2018.
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.
Conference Call
Today, Wednesday, November 20,
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.
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.
Investor Contact:
Alon Mualem
Chief Financial Officer
alonm@nisteceltek.com
+972-3-9395023
Eltek
Ltd.
|
Consolidated
Statements of Operations
|
(In thousands US$,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2019
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
Revenues
|
9,279
|
8,503
|
|
26,213
|
|
26,112
|
Costs of
revenues
|
(7,524)
|
(7,530)
|
|
(21,663)
|
|
(24,118)
|
Gross
profit
|
1,755
|
973
|
|
4,550
|
|
1,994
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
(1,187)
|
(1,280)
|
|
(3,541)
|
|
(3,648)
|
R&D expenses,
net
|
-
|
-
|
|
-
|
|
(1)
|
Operating profit
(loss)
|
568
|
(307)
|
|
1,009
|
|
(1,655)
|
Financial expenses,
net
|
(146)
|
(132)
|
|
(409)
|
|
(264)
|
Other income,
net
|
(2)
|
-
|
|
875
|
|
-
|
Profit (loss)
before income tax
|
420
|
(439)
|
|
1,475
|
|
(1,919)
|
Tax
expenses
|
(29)
|
(24)
|
|
(51)
|
|
(57)
|
Net Profit
(loss)
|
391
|
(463)
|
|
1,424
|
|
(1,976)
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
Basic and diluted net
profit (loss) per ordinary share
|
0.09
|
(0.23)
|
|
0.40
|
|
(0.97)
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used
|
|
|
|
to compute basic and
diluted net profit (loss) per
|
|
|
|
ordinary share (in
thousands)
|
4,380
|
2,029
|
|
3,519
|
|
2,029
|
Eltek
Ltd.
|
Consolidated
Balance Sheets
|
(In thousands
US$)
|
|
|
|
September
30,
|
December
31,
|
|
|
2019
|
2018
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
|
2,289
|
992
|
Receivables: Trade, net of provision for
doubtful accounts
|
|
6,852
|
5,682
|
Other
|
|
195
|
868
|
Inventories
|
|
3,785
|
3,611
|
Prepaid
expenses
|
|
412
|
292
|
Total current
assets
|
|
13,533
|
11,445
|
|
|
|
|
Long term
assets
|
|
|
|
Severance pay
fund
|
|
59
|
53
|
Long term prepaid
expenses
|
|
-
|
39
|
Operating lease right
of use assets
|
|
2,750
|
-
|
Total long term
assets
|
|
2,809
|
92
|
Fixed assets, less
accumulated depreciation
|
|
6,795
|
6,623
|
Total
Assets
|
|
23,137
|
18,160
|
|
|
|
|
Liabilities and
Shareholder's equity
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
Short-term credit and
current maturities of long-term debts
|
|
2,123
|
6,606
|
Short-term credit
from related party
|
|
3,446
|
2,668
|
Accounts payable:
Trade
|
|
4,755
|
4,108
|
Other
|
|
3,579
|
3,377
|
Short-term operating
lease liabilities
|
|
1,368
|
-
|
Total current
liabilities
|
|
15,271
|
16,759
|
|
|
|
|
Long-term
liabilities
|
|
|
|
Long term debt,
excluding current maturities
|
|
436
|
308
|
Employee severance
benefits
|
|
244
|
211
|
Long-term operating
lease liabilities
|
|
1,362
|
-
|
Total long-term
liabilities
|
|
2,042
|
519
|
|
|
|
|
Equity
|
|
|
|
Ordinary shares, NIS
3.0 par value authorized 10,000,000
shares, issued and outstanding 2,028,552
|
|
3,964
|
1,985
|
Additional paid-in
capital
|
|
18,583
|
17,270
|
Cumulative foreign
currency translation adjustments
|
|
2,435
|
2,340
|
Capital
reserve
|
|
932
|
800
|
Accumulated
deficit
|
|
(20,090)
|
(21,513)
|
Shareholders'
equity
|
|
5,824
|
882
|
Total liabilities
and shareholders' equity
|
|
23,137
|
18,160
|
Eltek
Ltd.
|
Unaudited Non-GAAP
EBITDA Reconciliations
|
(In thousands
US$)
|
|
|
|
|
|
|
|
|
Non-GAAP EBITDA
Reconciliations
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2019
|
2018
|
|
2019
|
|
2018
|
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net Income
(loss)
|
|
391
|
(463)
|
|
1,424
|
|
(1,976)
|
Add back
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
|
146
|
132
|
|
409
|
|
264
|
Income tax
expense
|
|
29
|
24
|
|
51
|
|
57
|
Depreciation and
amortization
|
|
374
|
416
|
|
1,118
|
|
1,282
|
Non-GAAP
EBITDA
|
|
940
|
109
|
|
3,002
|
|
(373)
|
Eltek
Ltd.
|
Consolidated
Statement of Cash flow
|
(In thousands
US$)
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2019
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(loss)
|
|
391
|
(463)
|
|
1,423
|
|
(1,976)
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net loss to net
|
|
|
|
|
|
|
|
cash flows
provided by operating activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
371
|
416
|
|
1,119
|
|
1,282
|
Stock-based
compensation
|
|
26
|
-
|
|
88
|
|
-
|
Transaction with
controlling shareholder
|
|
15
|
-
|
|
44
|
|
-
|
Revaluation of long
term loans
|
|
(12)
|
(1)
|
|
(36)
|
|
23
|
|
|
400
|
415
|
|
1,215
|
|
1,305
|
|
|
|
|
|
|
|
|
Changes in operating
leases, net
|
|
(1)
|
-
|
|
(11)
|
|
-
|
Decrease (increase)
in trade receivables
|
|
886
|
1,016
|
|
(712)
|
|
(474)
|
Decrease in
other receivables and prepaid expenses
|
|
(224)
|
(538)
|
|
655
|
|
313
|
Decrease (increase)
in inventories
|
|
211
|
253
|
|
98
|
|
(661)
|
Increase
(decrease) in trade payables
|
|
(102)
|
(440)
|
|
92
|
|
645
|
Increase (decrease)
in other liabilities and accrued expenses
|
|
(188)
|
(84)
|
|
(55)
|
|
(134)
|
Increase (decrease)
in employee severance benefits, net
|
|
23
|
5
|
|
14
|
|
32
|
|
|
605
|
212
|
|
81
|
|
(279)
|
|
|
|
|
|
|
|
|
Net cash provided
by (used in) operating activities
|
|
1,396
|
164
|
|
2,719
|
|
(950)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Purchase of fixed
assets
|
|
(293)
|
(86)
|
|
(543)
|
|
(196)
|
Net cash used in
investing activities
|
|
(293)
|
(86)
|
|
(543)
|
|
(196)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Short- term bank
credit, net
|
|
(921)
|
113
|
|
(4,315)
|
|
956
|
Short- term
shareholder loan
|
|
-
|
275
|
|
557
|
|
1,431
|
Issuance of ordinary
shares in rights offering, net
|
|
-
|
-
|
|
3,298
|
|
-
|
Repayment of
long-term loans from bank
|
|
(220)
|
(225)
|
|
(675)
|
|
(689)
|
Proceeds from
long-term loans
|
|
557
|
-
|
|
558
|
|
-
|
Repayment of credit
from fixed asset payables
|
|
(94)
|
(74)
|
|
(289)
|
|
(233)
|
Net cash provided
by (used in) financing activities
|
|
(678)
|
89
|
|
(866)
|
|
1,465
|
|
|
|
|
|
|
|
|
Effect of
translation adjustments
|
|
27
|
43
|
|
(13)
|
|
(5)
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
452
|
210
|
|
1,297
|
|
314
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of the period
|
|
1,837
|
991
|
|
992
|
|
887
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at period end
|
|
2,289
|
1,201
|
|
2,289
|
|
1,201
|
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SOURCE Eltek Ltd.