PETACH-TIKVA, Israel,
Nov 27, 2017 /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, 2016.
Mr. Yitzhak Nissan,
Chairman of the Board and Chief Executive Officer, commented:
"The third quarter was very challenging for our company due to
several significant equipment failures, which impacted our ability
to supply our customers' orders and affected our on-time delivery
performance. In addition, the unsatisfactory operating results
resulted into a $1.3 million impact
on our operating cash flows. As a result, in November 2017, the Company obtained an additional
NIS 3.0 million ($850,000) line of credit that was guaranteed by
Nistec, Eltek's controlling shareholder.
We have recently made several changes in our manufacturing
operations to address the difficulties encountered in the third
quarter and the vast majority of the delayed orders were
successfully supplied during October
2017. Based on these changes, we are better organized to
supply higher sales in the fourth quarter, compared to the third
quarter. Furthermore, the backlog of orders as of September 30, 2017 was higher than that at
September 30, 2016.
In addition to the changes made to the manufacturing operations,
we were able to reduce our operating costs compared to the third
quarter of 2016.
During the third quarter, the Company received a $1.3 million order from one of our existing
customers in the United States.
Additionally, it should be noted that the governmental project,
which we announced in July 2017, is
progressing as scheduled.
Cash and cash equivalents as of September
30, 2017 were $1.0 million
compared to $842,000 as of
September 30, 2016. Taking into
account the Company's current cash position, management believes
that the Company needs to generate quarterly revenues of at least
$8.8 million in order to continue
operations without external financing. Management believes that the
revenue goals for the fourth quarter will be achieved.
The results to the third quarter and the first nine months
of 2017 do not include the operations of Kubatronik Leiterplatten
GmbH, which were included in Eltek's results for the comparable
periods in 2016. Therefore, we have provided selected financial
information on a proforma basis, excluding Kubatronik's results for
2016," Mr. Nissan concluded.
Highlights of the Third Quarter of 2017
- Revenues for the third quarter of 2017 were $7.7 million, compared to $9.3 million in the third quarter of 2016
($8.4 million excluding
Kubatronik).
- Gross loss was $32,000
(0.4% of revenues), compared to a gross profit of $880,000 (9.5% of revenues) in the third quarter
of 2016 ($871,000 or 10.3% of
revenues excluding Kubatronik). Excluding a $348,000 one-time amortization of a software
system, gross profit for the third quarter was $316.000. The decrease in gross profit and gross
profit margins reflects the decreased sales, while a significant
portion of our cost of sales remained constant, along with the
adverse effects of the amortization expense and the 6.3% decrease
in the US Dollar exchange rate.
- Operating loss was $1.2
million, compared to an operating loss of $338,000 in the third quarter of 2016
($193,000 excluding Kubatronik).
- Net loss was $1.2 million
or $0.12 per fully diluted share
($0.59 per new share post a 5:1
reverse stock split effected on November 22,
2017 ("Post Split Share"), compared to a net loss of
$446,000 or $0.04 per fully diluted share ($0.22 per Post Split Share) in the third
quarter of 2016 ($317,000 or
$0.03 per fully diluted share
excluding Kubatronik ($0.16 per Post
Split Share);
- EBITDA was a negative amount of $422,000 compared to a positive amount of
$164,000 in the third quarter of 2016
($239,000 excluding Kubatronik).
- Net cash used in operating activities was $1.3 million, compared to net cash provided by
operating activities of $643,000 in
the third quarter of 2016 ($705,000
excluding Kubatronik)
- Cash and cash equivalents as of September 30, 2017 were $1.0 million, compared to $842,000 as of September
30, 2016.
Highlights for the first nine months of 2017
- Revenues for the first nine months of 2017 were
$23.7 million, compared to
$29 million in the first nine months
of 2016 ($25.9 million excluding
Kubatronik).
- Gross profit was $587,000
(2.5% of revenues), compared to a gross profit of $3.3 million (11.3% of revenues) in the first
nine months of 2016 ($3 million or
2.5% of revenues excluding Kubatronik).
- Operating loss was $2.9
million, compared to an operating loss of $387,000 in the first nine months of 2016
($162,000 excluding Kubatronik).
- Net loss was $3.1 million
or $0.31 per fully diluted share
($1.53 per Post Split Share),
compared to a net loss of $617,000,
or $0.06 per fully diluted share
($0.30 per Post Split Share) in
the first nine months of 2016 ($399,000 or $0.04
per fully diluted share excluding Kubatronik ($0.20 per Post Split Share).
- EBITDA was a negative amount of $1.2 million, compared to a positive amount of
$1.1 million in the first nine months
of 2016 ($1.1 million excluding
Kubatronik).
- Net cash used in operating activities amounted to
$2.6 million, compared to net cash
provided by operating activities of $1.5
million in the first nine months of 2016 ($1.5 million excluding Kubatronik).
Conference Call
Today, Monday, November 27, 2016
at 9:30 a.m. Eastern Time, Eltek will
conduct a conference call to discuss the results. The call will
feature remarks by Mr. Yitzhak
Nissan, Chairman of the Board of Directors and Chief
Executive Officer, Mr. Roberto
Tulman, Deputy CEO and Chief Technology Officer, and Mr.
Amnon Shemer, Chief Financial
Officer.
To participate, please call the following teleconference
numbers. Please allow for additional time to connect prior to the
call:
United States: +1-888-668-9141
Israel: 03-9180610
International: +972-3-9180610
At:
9:30 a.m. Eastern Time
6:30 a.m. Pacific Time
16:30 p.m. Israel
Time
A replay of the call will be available through the Investor Info
section on Eltek's corporate website at www.nisteceltek.com
approximately 24 hours after the conference call is completed and
will be archived for 30 days.
Eltek
Ltd.
|
Consolidated
Statements of Operations
|
(In thousands US$,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
Revenues
|
|
7,703
|
|
9,252
|
|
23,662
|
|
28,956
|
|
Costs of
revenues
|
|
(7,734)
|
|
(8,372)
|
|
(23,075)
|
|
(25,677)
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
(32)
|
|
880
|
|
587
|
|
3,279
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
(1,166)
|
|
(1,185)
|
|
(3,399)
|
|
(3,569)
|
|
|
|
|
|
|
|
|
|
|
|
R&D expenses,
net
|
|
(3)
|
|
(34)
|
|
(38)
|
|
(97)
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
|
(1,201)
|
|
(338)
|
|
(2,850)
|
|
(387)
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
|
(3)
|
|
(114)
|
|
(220)
|
|
(212)
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss)
before other income, net
|
|
(1,204)
|
|
(452)
|
|
(3,071)
|
|
(599)
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
0
|
|
0
|
|
16
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss)
before income tax expenses
|
|
(1,204)
|
|
(452)
|
|
(3,055)
|
|
(598)
|
|
|
|
|
|
|
|
|
|
|
|
Tax
expenses
|
|
(2)
|
|
(29)
|
|
(52)
|
|
(77)
|
|
|
|
|
|
|
|
|
|
|
|
Net Profit
(loss)
|
|
(1,206)
|
|
(481)
|
|
(3,107)
|
|
(675)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to non controlling interest
|
|
0
|
|
(34)
|
|
0
|
|
(58)
|
|
|
|
|
|
|
|
|
|
|
|
Net Profit (loss)
attributable to Eltek Ltd.
|
|
(1,206)
|
|
(446)
|
|
(3,107)
|
|
(617)
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
gain (loss) per ordinary share
|
|
(0.12)
|
|
(0.04)
|
|
(0.31)
|
|
(0.06)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares
|
|
|
|
|
|
|
|
|
|
used to compute basic
and diluted net gain (loss) per
|
|
|
|
|
|
|
|
|
|
ordinary share (in
thousands)
|
|
10,143
|
|
10,143
|
|
10,143
|
|
10,143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares post
the reverse split (in thousands)
|
|
2,029
|
|
2,029
|
|
2,029
|
|
2,029
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
gain (loss) per post-reverse-split share
|
|
(0.59)
|
|
(0.22)
|
|
(1.53)
|
|
(0.30)
|
|
Eltek
Ltd.
|
Consolidated
Balance Sheets
|
(In thousands
US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
1,003
|
|
842
|
|
|
|
|
|
Receivables: Trade, net of provision for
doubtful accounts
|
|
5,871
|
|
6,786
|
|
|
|
|
|
Other
|
|
956
|
|
272
|
|
|
|
|
|
Inventories
|
|
4,342
|
|
4,834
|
|
|
|
|
|
Prepaid
expenses
|
|
348
|
|
321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
12,520
|
|
13,055
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
taxes
|
|
0
|
|
1,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets held for
employees' severance benefits
|
|
54
|
|
51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed assets, less
accumulated depreciation
|
|
8,624
|
|
9,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible
asset
|
|
0
|
|
330
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
21,198
|
|
24,129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholder's equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
Short-term credit and
current maturities of long-term debts
|
|
6,659
|
|
1,244
|
|
|
|
|
|
Accounts payable:
Trade
|
|
5,065
|
|
5,910
|
|
|
|
|
|
Other
|
|
3,852
|
|
4,511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
15,576
|
|
11,665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
|
|
|
|
|
Long term debt,
excluding current maturities
|
|
1,402
|
|
2,205
|
|
|
|
|
|
Employee severance
benefits
|
|
159
|
|
299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total long-term
liabilities
|
|
1,561
|
|
2,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
Ordinary shares, NIS
0.6 par value authorized 50,000,000 shares, issued and
outstanding 10,142,762
|
|
1,985
|
|
1,985
|
|
|
|
|
|
Additional paid-in
capital
|
|
17,270
|
|
17,270
|
|
|
|
|
|
Cumulative foreign
currency translation adjustments
|
|
2,348
|
|
2,287
|
|
|
|
|
|
Capital
reserve
|
|
695
|
|
695
|
|
|
|
|
|
Accumulated
deficit
|
|
(18,237)
|
|
(12,125)
|
|
|
|
|
|
Shareholders'
equity
|
|
4,061
|
|
10,112
|
|
|
|
|
|
Non controlling
interest
|
|
0
|
|
(152)
|
|
|
|
|
|
Total
equity
|
|
4,061
|
|
9,960
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
21,198
|
|
24,129
|
|
|
|
|
|
Eltek
Ltd.
|
Unaudited Non-GAAP
EBITDA Reconciliations
|
(In thousands
US$)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP EBITDA
Reconciliations
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net Income
(loss)
|
|
(1,206)
|
|
(446)
|
|
(3,107)
|
|
(617)
|
|
Add back
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses
(income), net
|
|
3
|
|
114
|
|
220
|
|
211
|
|
Income tax
expense
|
|
2
|
|
29
|
|
52
|
|
77
|
|
Depreciation and
amortization
|
|
780
|
|
467
|
|
1,619
|
|
1,413
|
|
Adjusted
EBITDA
|
|
(422)
|
|
164
|
|
(1,215)
|
|
1,084
|
|
Eltek
Ltd.
|
Consolidated
Statement of Cash flow
|
(In thousands US$,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(loss)
|
|
(1,206)
|
|
(481)
|
|
(3,107)
|
|
(675)
|
|
|
|
|
|
|
|
-
|
|
|
|
Adjustments to
reconcile net loss to net
|
|
|
|
|
|
-
|
|
|
|
cash flows
provided by operating activities:
|
|
|
|
|
|
-
|
|
|
|
Depreciation and
amortization
|
|
432
|
|
467
|
|
1,284
|
|
1,413
|
|
Capital lose on
disposal of fixed assets, net
|
|
-
|
|
|
|
(13)
|
|
-
|
|
Amortization of
Intangible asset
|
|
348
|
|
|
|
348
|
|
|
|
Revaluation of long
term loans
|
|
2
|
|
-
|
|
(0)
|
|
1
|
|
Decrease (increase)
in Deferred Tax
|
|
-
|
|
8
|
|
5
|
|
22
|
|
|
|
782
|
|
475
|
|
1,624
|
|
1,436
|
|
|
|
|
|
|
|
|
|
|
|
Decrease (increase)
in trade receivables
|
|
168
|
|
928
|
|
377
|
|
1,502
|
|
Decrease (increase)
in other receivables and prepaid expenses
|
|
(738)
|
|
(132)
|
|
(802)
|
|
(114)
|
|
Decrease (increase)
in inventories
|
|
(76)
|
|
(108)
|
|
(70)
|
|
(214)
|
|
Increase (decrease)
in trade payables
|
|
(99)
|
|
171
|
|
(305)
|
|
(183)
|
|
Increase (decrease)
in other liabilities and accrued expenses
|
|
(118)
|
|
(206)
|
|
(294)
|
|
(255)
|
|
Increase (decrease)
in employee severance benefits, net
|
|
3
|
|
(5)
|
|
2
|
|
(2)
|
|
|
|
(859)
|
|
649
|
|
(1,092)
|
|
734
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by (used in) operating activities
|
|
(1,283)
|
|
643
|
|
(2,575)
|
|
1,495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Owners
investment
|
|
|
|
|
|
|
|
|
|
Purchase of fixed
assets
|
|
(71)
|
|
(231)
|
|
(232)
|
|
(561)
|
|
Purchase of
Intangible asset
|
|
|
|
(22)
|
|
-
|
|
(43)
|
|
Net cash used in
investing activities
|
|
(71)
|
|
(253)
|
|
(232)
|
|
(604)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
Increase (decrease)
in short- term credit
|
|
2,109
|
|
(158)
|
|
1,948
|
|
(67)
|
|
Increase (decrease)
in short- term shareholder loan
|
|
-
|
|
-
|
|
1,430
|
|
-
|
|
Repayment of
long-term loans from bank
|
|
(230)
|
|
(176)
|
|
(636)
|
|
(506)
|
|
Proceeds from
long-term loans
|
|
(36)
|
|
-
|
|
167
|
|
-
|
|
Repayment of credit
from fixed asset payables
|
|
(8)
|
|
(158)
|
|
(173)
|
|
(552)
|
|
Net cash provided
by (used in) financing activities
|
|
1,836
|
|
(491)
|
|
2,736
|
|
(1,125)
|
|
|
|
|
|
|
|
|
|
|
|
Effect of
translation adjustments
|
|
(271)
|
|
50
|
|
(160)
|
|
38
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
211
|
|
(52)
|
|
(230)
|
|
(196)
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of the period
|
|
792
|
|
894
|
|
1,234
|
|
1,038
|
|
|
|
|
|
|
|
-
|
|
-
|
|
Cash and cash
equivalents at period end
|
|
1,003
|
|
842
|
|
1,003
|
|
842
|
|
Eltek
ltd.
|
Proforma
(Non-GAAP) Statements of Operations
|
(In thousands US$,
except per share data)
|
Excluding
Kubatronik's operation in 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Solo
|
|
Solo
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
|
Sep
30,
|
|
Sep
30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
7,703
|
|
8,444
|
|
23,662
|
|
25,814
|
|
Costs of
revenues
|
|
(7,734)
|
|
(7,573)
|
|
(23,075)
|
|
(22,779)
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
(32)
|
|
871
|
|
587
|
|
3,035
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development income, net
|
|
(3)
|
|
(34)
|
|
(38)
|
|
(97)
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
(1,166)
|
|
(1,030)
|
|
(3,399)
|
|
(3,100)
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
|
(1,201)
|
|
(193)
|
|
(2,850)
|
|
(162)
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
|
(3)
|
|
(95)
|
|
(221)
|
|
(160)
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss)
before other income, net
|
|
(1,204)
|
|
(289)
|
|
(3,071)
|
|
(323)
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
0
|
|
0
|
|
16
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss)
before income tax expenses
|
|
(1,204)
|
|
(289)
|
|
(3,055)
|
|
(323)
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
(expenses), net
|
|
(1)
|
|
(29)
|
|
(51)
|
|
(77)
|
|
|
|
|
|
|
|
|
|
|
|
Net Profit
(loss)
|
|
(1,205)
|
|
(317)
|
|
(3,106)
|
|
(399)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net loss per
ordinary share
|
|
(0.12)
|
|
(0.03)
|
|
(0.31)
|
|
(0.04)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares
|
|
|
|
|
|
|
|
|
|
used to compute
diluted net loss per
|
|
|
|
|
|
|
|
|
|
ordinary share (in
thousands)
|
|
10,143
|
|
10,143
|
|
10,143
|
|
10,143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares post
the reverse split (in thousands)
|
|
2,029
|
|
2,029
|
|
2,029
|
|
2,029
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
gain (loss) per post-reverse-split share
|
|
(0.59)
|
|
(0.16)
|
|
(1.53)
|
|
(0.20)
|
|
|
|
|
|
|
|
|
|
|
|
Eltek
ltd.
|
Proforma
(Non-GAAP) Balance Sheets
|
(In thousands
US$)
|
Excluding
Kubatronik's operation in 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep
30,
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
1,003
|
|
924
|
|
|
|
|
|
Receivables: Trade, net of provision for
doubtful accounts
|
|
5,871
|
|
6,512
|
|
|
|
|
|
Other
|
|
956
|
|
1,319
|
|
|
|
|
|
Inventories
|
|
4,342
|
|
4,477
|
|
|
|
|
|
Prepaid
expenses
|
|
348
|
|
346
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
12,520
|
|
13,578
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
taxes
|
|
0
|
|
1,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets held for
employees' severance benefits
|
|
54
|
|
51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed assets, less
accumulated depreciation
|
|
8,624
|
|
9,014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
|
|
0
|
|
(571)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible
asset
|
|
0
|
|
330
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
21,198
|
|
23,484
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholder's equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
Short-term credit and
current maturities of long-term debts
|
|
6,659
|
|
1,244
|
|
|
|
|
|
Accounts payable:
Trade
|
|
5,065
|
|
5,498
|
|
|
|
|
|
Other
|
|
3,852
|
|
4,321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
15,576
|
|
11,063
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
|
|
|
|
|
Long term debt,
excluding current maturities
|
|
1,402
|
|
2,055
|
|
|
|
|
|
Employee severance
benefits
|
|
159
|
|
255
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total long-term
liabilities
|
|
1,561
|
|
2,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
Ordinary shares, NIS
0.6 par value authorized 50,000,000 shares, issued and
outstanding 6,610,107 as of December 31, 2011.
|
|
1,985
|
|
1,985
|
|
|
|
|
|
Additional paid-in
capital
|
|
17,270
|
|
17,270
|
|
|
|
|
|
Cumulative foreign
currency translation adjustments
|
|
2,348
|
|
2,286
|
|
|
|
|
|
Capital
reserve
|
|
695
|
|
695
|
|
|
|
|
|
Accumulated
deficit
|
|
(18,237)
|
|
(12,125)
|
|
|
|
|
|
Shareholders'
equity
|
|
4,061
|
|
10,111
|
|
|
|
|
|
Non controlling
interest
|
|
0
|
|
0
|
|
|
|
|
|
Total
equity
|
|
4,061
|
|
10,111
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
21,198
|
|
23,484
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eltek
Ltd.
|
Proforma Unaudited
Non-GAAP EBITDA Reconciliations
|
(In thousands
US$)
|
Excluding
Kubatronik's operation in 2016
|
|
|
|
|
|
|
|
|
|
Non-GAAP EBITDA
Reconciliations
|
|
Three months
ended
|
|
six months
ended
|
|
|
Sep
30,
|
|
Sep
30,
|
|
Sep
30,
|
|
Sep
30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
GAAP net Income
(loss)
|
|
(1,205)
|
|
(317)
|
|
(3,106)
|
|
(399)
|
Add back
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses
(income), net
|
|
3
|
|
95
|
|
221
|
|
160
|
Income tax
expense
|
|
1
|
|
29
|
|
51
|
|
77
|
Depreciation and
amortization
|
|
780
|
|
432
|
|
1,619
|
|
1,271
|
Adjusted
EBITDA
|
|
(421)
|
|
239
|
|
(1,215)
|
|
1,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eltek
Ltd.
|
Proforma
(Non-GAAP) Consolidated Statement of Cash flow
|
(In thousands US$,
except per share data)
|
Excluding
Kubatronik's operation in 2016
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(loss)
|
|
(1,206)
|
|
(446)
|
|
(3,107)
|
|
(617)
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net loss to net
|
|
|
|
|
|
|
|
|
cash flows
provided by operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
432
|
|
431
|
|
1,284
|
|
1,301
|
Capital lose on
disposal of fixed assets, net
|
|
-
|
|
|
|
(13)
|
|
-
|
Amortization of
Intangible asset
|
|
348
|
|
|
|
348
|
|
|
Revaluation of long
term loans
|
|
2
|
|
8
|
|
(0)
|
|
22
|
Decrease (increase)
in Deferred Tax
|
|
-
|
|
-
|
|
5
|
|
1
|
Equity loss
(gain)
|
|
-
|
|
124
|
|
-
|
|
209
|
|
|
782
|
|
563
|
|
1,624
|
|
1,533
|
|
|
|
|
|
|
|
|
|
Decrease (increase)
in trade receivables
|
|
168
|
|
753
|
|
377
|
|
1,415
|
Decrease (increase)
in other receivables and prepaid expenses
|
(738)
|
|
(115)
|
|
(802)
|
|
(104)
|
Decrease (increase)
in inventories
|
|
(76)
|
|
(51)
|
|
(70)
|
|
(205)
|
Increase (decrease)
in trade payables
|
|
(99)
|
|
182
|
|
(305)
|
|
(266)
|
Increase (decrease)
in other liabilities and accrued expenses
|
(118)
|
|
(183)
|
|
(294)
|
|
(265)
|
Increase (decrease)
in employee severance benefits, net
|
|
3
|
|
3
|
|
2
|
|
7
|
|
|
(859)
|
|
589
|
|
(1,092)
|
|
581
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
|
(1,283)
|
|
705
|
|
(2,575)
|
|
1,497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Owners
investment
|
|
|
|
|
|
|
|
|
Purchase of fixed
assets
|
|
(71)
|
|
(229)
|
|
(232)
|
|
(565)
|
Purchase of
Intangible asset
|
|
-
|
|
-
|
|
-
|
|
-
|
Purchase of
Intangible asset
|
|
-
|
|
(22)
|
|
-
|
|
(43)
|
Net cash used in
investing activities
|
|
(71)
|
|
(251)
|
|
(232)
|
|
(607)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Increase (decrease)
in short- term credit
|
|
2,109
|
|
(158)
|
|
1,948
|
|
(67)
|
Increase (decrease)
in short- term shareholder loan
|
|
-
|
|
-
|
|
1,430
|
|
|
Repayment of
long-term loans from bank
|
|
(230)
|
|
(176)
|
|
(636)
|
|
(506)
|
Proceeds from
long-term loans
|
|
(36)
|
|
-
|
|
167
|
|
-
|
Repayment of credit
from fixed asset payables
|
|
(8)
|
|
(118)
|
|
(173)
|
|
(442)
|
Net cash provided by
(used in) financing activities
|
|
1,836
|
|
(452)
|
|
2,736
|
|
(1,016)
|
|
|
|
|
|
|
|
|
|
Effect of translation
adjustments
|
|
(271)
|
|
31
|
|
(160)
|
|
52
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
211
|
|
33
|
|
(230)
|
|
(74)
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of the period
|
|
792
|
|
891
|
|
1,234
|
|
998
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at period end
|
|
1,003
|
|
923
|
|
1,003
|
|
923
|
|
|
|
|
|
|
|
|
|
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 has ITAR, AS-9100 and NADCAP Electronics
permits and its customers include top of the line 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 Statements:
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 and changing economic conditions.. Any
forward-looking statement is not a guarantee of future performance
and actual results could differ materially from those contained in
the forward-looking statement. These statements speak only as of
the date they were made, and we undertake no obligation to update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise. We operate in a
changing environment. New risks emerge from time to time and it is
not possible for us to predict all risks that may affect us. For
more information regarding these risks and uncertainties as well as
certain additional risks that we face, you should refer to the Risk
Factors detailed in our Annual Report on Form 20-F and subsequent
reports and filings made from time to time with the Securities and
Exchange Commission.
Investor Contact:
Amnon Shemer
Chief
Financial Officer
amnons@nisteceltek.com
+972-3-9395023
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content:http://www.prnewswire.com/news-releases/eltek-reports-2017-third-quarter-financial-results-300561729.html
SOURCE Eltek Ltd.