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.

 

Eltek Logo

 

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

 

Cision View original content:http://www.prnewswire.com/news-releases/eltek-reports-2020-first-quarter-financial-results-301069136.html

SOURCE Eltek Ltd.

Copyright 2020 PR Newswire

Eltek (NASDAQ:ELTK)
Historical Stock Chart
From Sep 2020 to Oct 2020 Click Here for more Eltek Charts.
Eltek (NASDAQ:ELTK)
Historical Stock Chart
From Oct 2019 to Oct 2020 Click Here for more Eltek Charts.