- Revenues of $8.7
million
- Gross profit of $1.5
million
- Net Profit of $242,000
PETACH TIKVA, Israel,
May 29, 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 March 31,
2019.
Mr. Eli Yaffe, Chief Executive
Officer, commented: "We are glad that this quarter's results
reflect the implementation of the first stage of our turnaround
plan, which we started during the last quarter of 2018. We
continue in our efforts to further increase operating efficiencies,
to improve customer satisfaction, to formulate a more effective
sales strategy and continue implementing our plan to reach
sustained profitability."
Highlights of the First Quarter of 2019 compared to the First
Quarter of 2018
- Revenues for the first quarter of 2019 were
$8.7 million compared to revenues of
$8.9 million in the first
quarter of 2018;
- Gross profit increased from $444,000 (5.0% of revenues) in the first quarter
of 2018 to $1,539,000
(17.6% of revenues) in the first quarter of 2019;
- Operating profit was $433,000 as compared to an operating loss of
$626,000 in the first quarter of
2018;
- Net profit was $242,000, or $0.12
per fully diluted share compared to a net loss of $670,000, or ($0.33) per fully diluted share, in the first
quarter of 2018;
- EBITDA was a $811,000
(9.3% of revenues) compared to negative EBITDA of $185,000 (2.1% of revenues) in the first
quarter of 2018;
- Net cash provided by operating activities amounted to
$1.6 million compared to net
cash used in operating activities of $859,000 in the first quarter of 2018.
Conference Call
Today, Wednesday, May 29, 2018, 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:
|
03-9180687
|
International:
|
+972-3-9180687
|
|
|
|
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
|
|
|
March
31,
|
|
|
2019
|
2018
|
|
|
|
|
|
|
|
Revenues
|
8,735
|
8,943
|
Costs of
revenues
|
(7,196)
|
(8,499)
|
|
|
|
|
Gross
profit
|
1,539
|
444
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
(1,106)
|
(1,069)
|
|
|
|
|
|
|
|
|
R&D expenses,
net
|
0
|
(1)
|
|
|
|
|
Operating profit
(loss)
|
433
|
(626)
|
|
|
|
|
Financial expenses,
net
|
(184)
|
(27)
|
Other income,
net
|
6
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss)
before income tax
|
255
|
(653)
|
|
|
|
|
Tax
expenses
|
(13)
|
(17)
|
|
|
|
|
Net profit
(loss)
|
242
|
(670)
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
Basic and diluted net
profit (loss) per ordinary share
|
0.12
|
(0.33)
|
|
|
|
|
Weighted average
number of ordinary shares
|
used to compute basic
and diluted net profit
|
(loss) per ordinary
share (in thousands)
|
2,029
|
2,029
|
Eltek
Ltd.
|
Consolidated
Balance Sheets
|
(In thousands
US$)
|
|
|
|
|
|
|
March
31,
|
December
31,
|
|
|
2019
|
2018
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
1,068
|
992
|
Receivables: Trade, net of provision for
doubtful accounts
|
5,623
|
5,682
|
Other
|
660
|
868
|
Inventories
|
4,142
|
3,611
|
Prepaid
expenses
|
150
|
292
|
|
|
|
|
Total current
assets
|
11,643
|
11,445
|
|
|
|
|
Long term
assets
|
|
|
Severance pay
fund
|
55
|
53
|
Long term prepaid
expenses
|
112
|
39
|
Operating lease right
of use assets
|
3,117
|
-
|
Total long term
assets
|
3,284
|
92
|
|
|
|
|
Fixed assets, less
accumulated depreciation
|
6,540
|
6,623
|
|
|
|
|
Total
Assets
|
21,467
|
18,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholder's equity
|
|
|
|
|
Current
liabilities
|
|
|
Short-term credit and
current maturities of long-term debts
|
|
4,978
|
6,606
|
Short-term credit
from related party
|
|
3,304
|
2,668
|
Accounts payable:
Trade
|
5,000
|
4,108
|
Other
|
3,487
|
3,377
|
Short-term operating
lease liabilities
|
1,003
|
-
|
|
|
|
|
Total current
liabilities
|
17,772
|
16,759
|
|
|
|
|
Long-term
liabilities
|
|
Long term debt,
excluding current maturities
|
213
|
308
|
Employee severance
benefits
|
218
|
211
|
Long-term operating
lease liabilities
|
2,105
|
-
|
|
|
|
|
Total long-term
liabilities
|
2,536
|
519
|
|
|
|
|
Equity
|
|
|
|
Ordinary shares, NIS
3.0 par value authorized 10,000,000 shares, issued and
outstanding 2,028,552
|
|
1,985
|
1,985
|
Additional paid-in
capital
|
|
17,270
|
17,270
|
Cumulative foreign
currency translation adjustments
|
|
2,330
|
2,340
|
Capital
reserve
|
|
845
|
800
|
Accumulated
deficit
|
|
(21,271)
|
(21,513)
|
Shareholders'
equity
|
|
1,159
|
882
|
Total liabilities
and shareholders' equity
|
21,467
|
18,160
|
Eltek
Ltd.
|
Unaudited Non-GAAP
EBITDA Reconciliations
|
(In thousands
US$)
|
|
|
|
|
Non-GAAP EBITDA
Reconciliations
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2019
|
2018
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
|
242
|
(670)
|
Add back
items:
|
|
|
|
|
|
|
|
Financial expenses,
net
|
|
184
|
27
|
Income tax
expense
|
|
13
|
17
|
Depreciation and
amortization
|
|
372
|
441
|
Non-GAAP
EBITDA
|
|
811
|
(185)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eltek
Ltd.
|
Unaudited Proforma
Equity information
|
(In thousands
US$)
|
|
|
As of March 31,
2019
|
|
|
As
presented
|
As adjusted
(*)
|
Equity
|
|
|
|
Ordinary
shares
|
|
1,985
|
3,966
|
Additional paid-in
capital
|
|
17,270
|
18,619
|
Cumulative foreign
currency translation adjustments
|
|
2,330
|
2,330
|
Capital
reserve
|
|
845
|
845
|
Accumulated
deficit
|
|
(21,274)
|
(21,274)
|
Shareholders'
equity
|
|
1,156
|
4,486
|
|
|
|
|
(*) The proforma
information reflects on an as adjusted basis the issuance of
2,351,701 ordinary shares
in the April 2019 rights offering at a subscription price of $1.464
per ordinary share with aggregate net
proceeds of approximately $3.3 million, after deducting offering
expenses.
|
|
|
|
Eltek
Ltd.
|
Consolidated
Statement of Cash flow
|
(In thousands US$,
except per share data)
|
|
|
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2019
|
2018
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
242
|
(670)
|
|
|
|
|
Adjustments to
reconcile net loss to net
|
|
|
|
cash flows
provided by operating activities:
|
|
|
|
Depreciation and
amortization
|
|
372
|
441
|
Stock-based
compensation
|
|
31
|
-
|
Transaction with
controlling shareholder
|
|
14
|
-
|
Revaluation of long
term loans
|
|
(16)
|
16
|
|
|
401
|
457
|
|
|
|
|
Decrease (increase)
in trade receivables
|
|
240
|
(1,569)
|
Decrease in other
receivables and prepaid expenses
|
|
315
|
719
|
Increase in
inventories
|
|
(415)
|
(585)
|
Increase in trade
payables
|
|
846
|
975
|
Increase (decrease)
in other liabilities and accrued expenses
|
|
4
|
(199)
|
Increase in employee
severance benefits, net
|
|
-
|
13
|
Changes in operating
leases, net
|
|
(9)
|
-
|
|
|
981
|
(646)
|
|
|
|
|
Net cash provided
by (used in) operating activities
|
|
1,624
|
(859)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Purchase of fixed
assets
|
|
(159)
|
(80)
|
Net cash used in
investing activities
|
|
(159)
|
(80)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Short- term bank
credit, net
|
|
(1,608)
|
(341)
|
Short- term
shareholder loan
|
|
549
|
1,156
|
Repayment of
long-term loans from bank
|
|
(225)
|
(237)
|
Proceeds from
long-term loans
|
|
0
|
|
Repayment of credit
from fixed asset payables
|
|
(96)
|
(85)
|
Net cash provided
by (used in) financing activities
|
|
(1,380)
|
493
|
|
|
|
|
Effect of
translation adjustments
|
|
(10)
|
(6)
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
75
|
(452)
|
|
|
|
|
Cash and cash
equivalents at beginning of the period
|
|
993
|
887
|
|
|
|
|
Cash and cash
equivalents at period end
|
|
1,068
|
435
|
Investor Contact:
Alon Mualem
Chief Financial Officer
alonm@nisteceltek.com
+972-3-9395023
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SOURCE Eltek Ltd.