PETACH-TIKVA, Israel,
June 2, 2020 /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 March 31, 2020.
Mr. Eli Yaffe, Chief Executive
Officer, commented: "We are gratified that despite the global
Covid-19 related challenges encountered in the first quarter we
were able to continue the growth and profitability we achieved in
2019. During this year, we plan to significantly increase our
investment in new equipment and the expansion of our facilities and
infrastructure, in order to support our continued growth, despite
the impact of the Covid-19 pandemic."
"We are operating in a challenging business environment and
making the necessary adjustments to increase operating
efficiencies, improve customer satisfaction, increase revenues and
reach sustained profitability," concluded Mr. Yaffe.
Highlights of the First Quarter of 2020 compared to the First
Quarter of 2019
- Revenues for the first quarter of 2020 were
$9.2 million
compared to revenues of $8.7
million in the first quarter of 2019;
- Gross profit increased from $1.5 million (17.6% of revenues) in the first
quarter of 2019 to $1.8 (19.7% of
revenues) in the first quarter of 2020;
- Operating profit was $612,000 as compared to an operating
profit of $433,000 in the first
quarter of 2019;
- Net profit was $541,000, or $0.12 per fully diluted share compared to a net
profit of $242,000, or $0.12 per fully diluted share, in the first
quarter of 2019;
- EBITDA was a $1.0
million (11.0% of revenues) compared to EBITDA of
$811,000 (9.3% of revenues) in
the first quarter of 2019;
- Net cash provided by operating activities amounted to
$1.5 million compared to net
cash provided by operating activities of $1.6 million in the first quarter of 2019.
Conference Call
Today, Tuesday, June 2, 2020, 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 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, the impact of the Coronavirus
on the economy and our operations, 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
|
|
|
|
March
31,
|
|
|
|
2020
|
2019
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
9,157
|
8,735
|
|
Costs of
revenues
|
(7,354)
|
(7,196)
|
|
|
|
|
|
|
Gross
profit
|
1,803
|
1,539
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
(1,189)
|
(1,106)
|
|
|
|
|
|
|
R&D expenses,
net
|
(2)
|
-
|
|
Operating
profit
|
612
|
433
|
|
|
|
|
|
|
Financial expenses,
net
|
(55)
|
(184)
|
|
Other income,
net
|
(1)
|
6
|
|
|
|
|
|
|
Profit before
income tax
|
556
|
255
|
|
|
|
|
|
|
Tax
expenses
|
(15)
|
(13)
|
|
|
|
|
|
|
Net
Profit
|
541
|
242
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Basic and diluted net
profit per ordinary share
|
0.12
|
0.12
|
|
|
|
|
|
|
Weighted average
number of ordinary shares
|
|
|
|
used to compute basic
and diluted net profit per
|
|
|
|
ordinary share (in
thousands)
|
4,380
|
2,029
|
|
|
|
|
|
|
Eltek
Ltd.
|
Consolidated
Balance Sheets
|
(In thousands
US$)
|
|
|
|
|
|
|
|
March
31,
|
December
31,
|
|
|
|
2020
|
2019
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
2,214
|
1,628
|
|
Receivables: Trade, net of provision for
doubtful accounts
|
7,379
|
7,480
|
|
Other
|
164
|
145
|
|
Inventories
|
3,404
|
3,735
|
|
Prepaid
expenses
|
354
|
530
|
|
|
|
|
|
|
Total current
assets
|
13,515
|
13,518
|
|
|
|
|
|
|
Long term
assets
|
|
|
|
Severance pay
fund
|
58
|
60
|
|
Operating lease right
of use assets
|
2,140
|
2,490
|
|
Total long term
assets
|
2,198
|
2,550
|
|
|
|
|
|
|
Fixed assets, less
accumulated depreciation
|
6,506
|
6,761
|
|
|
|
|
|
|
Total
Assets
|
22,219
|
22,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholder's equity
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
Short-term credit and
current maturities of long-term debts
|
|
1,589
|
2,120
|
|
Short-term credit
from related party
|
|
3,366
|
3,472
|
|
Accounts payable:
Trade
|
4,277
|
4,673
|
|
Other
|
3,533
|
3,118
|
|
Short-term operating
lease liabilities
|
1,091
|
1,383
|
|
|
|
|
|
|
Total current
liabilities
|
13,856
|
14,766
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
Long term debt,
excluding current maturities
|
340
|
387
|
|
Employee severance
benefits
|
275
|
268
|
|
Deferred tax
liabilities
|
49
|
45
|
|
Long-term operating
lease liabilities
|
1,033
|
1,094
|
|
|
|
|
|
|
Total long-term
liabilities
|
1,697
|
1,794
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Ordinary shares, NIS
3.0 par value authorized 10,000,000
shares, issued and outstanding 4,380,268
|
|
3,964
|
3,964
|
|
Additional paid-in
capital
|
|
18,583
|
18,583
|
|
Cumulative foreign
currency translation adjustments
|
|
2,310
|
2,479
|
|
Capital
reserve
|
|
989
|
963
|
|
Accumulated
deficit
|
|
(19,180)
|
(19,720)
|
|
Shareholders'
equity
|
|
6,666
|
6,269
|
|
Total liabilities
and shareholders' equity
|
22,219
|
22,829
|
|
Eltek
Ltd.
|
Unaudited Non-GAAP
EBITDA Reconciliations
|
(In thousands
US$)
|
|
|
|
|
|
Non-GAAP EBITDA
Reconciliations
|
|
Three months
ended
|
|
|
|
March
31,
|
|
|
|
2020
|
2019
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
GAAP net Income
(loss)
|
|
541
|
242
|
|
Add back
items:
|
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
|
55
|
184
|
|
Income tax
expense
|
|
15
|
13
|
|
Depreciation and
amortization
|
|
395
|
372
|
|
Non-GAAP
EBITDA
|
|
1,006
|
811
|
|
Eltek
Ltd.
|
Consolidated
Statement of Cash flow
|
(In thousands
US$)
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
March
31,
|
|
|
|
2020
|
2019
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
541
|
242
|
|
|
|
|
|
|
Adjustments to
reconcile net profit to net
|
|
|
|
|
cash flows
provided by operating activities:
|
|
|
|
|
Depreciation and
amortization
|
|
395
|
372
|
|
Stock-based
compensation
|
|
26
|
31
|
|
Transaction with
controlling shareholder
|
|
-
|
14
|
|
Revaluation of long
term loans
|
|
10
|
(16)
|
|
Increase in deferred
tax liabilities
|
|
5
|
-
|
|
|
|
436
|
401
|
|
|
|
|
|
|
Decrease in operating
lease right-of-use assets
|
|
(5)
|
(9)
|
|
Decrease (increase)
in trade receivables
|
|
(132)
|
240
|
|
Decrease in other
receivables and prepaid expenses
|
|
139
|
315
|
|
Decrease (increase)
in inventories
|
|
221
|
(415)
|
|
Increase
(decrease) in trade payables
|
|
(257)
|
846
|
|
Increase in other
liabilities and accrued expenses
|
|
520
|
4
|
|
Increase in
employee severance benefits, net
|
|
16
|
-
|
|
|
|
502
|
981
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
|
1,479
|
1,624
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Purchase of fixed
assets
|
|
(204)
|
(159)
|
|
Net cash used in
investing activities
|
|
(204)
|
(159)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Short- term bank
credit, net
|
|
(438)
|
(1,608)
|
|
Short- term
shareholder loan
|
|
-
|
549
|
|
Repayment of
long-term loans from bank
|
|
(73)
|
(225)
|
|
Repayment of credit
from fixed asset payables
|
|
(151)
|
(96)
|
|
Net cash used in
financing activities
|
|
(662)
|
(1,380)
|
|
|
|
|
|
|
Effect of
translation adjustments
|
|
(27)
|
(10)
|
|
|
|
|
|
|
Net increase in
cash and cash equivalents
|
|
586
|
75
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of the period
|
|
1,628
|
993
|
|
|
|
|
|
|
Cash and cash
equivalents at period end
|
|
2,214
|
1,068
|
|
Investor Contact:
Alon Mualem
Chief Financial Officer
alonm@nisteceltek.com
+972-3-9395023
View original
content:http://www.prnewswire.com/news-releases/eltek-reports-2020-first-quarter-financial-results-301069136.html
SOURCE Eltek Ltd.