GEDERA, Israel, Nov. 29, 2019 /PRNewswire/ -- TAT Technologies
Ltd. (NASDAQ: TATT) ("TAT" or the "Company"), a leading provider of
products and services to the commercial and military aerospace and
ground defense industries, reported today its unaudited results for
the three month and nine months periods ended September 30, 2019.
Key Financial Highlights:
- Revenues for Q3 2019 increased by 13% to $26.1 million compared with $23.2 million in Q3 2018. Revenues for the
nine-months period that ended on September
30, 2019 increased by 4% to $75.4
million compared with $72.4
million in the nine-months period that ended on September 30, 2018.
- Gross profit for Q3 2019 increased by 40% to $4.2 million (16.3% of revenues) compared with
$3.0 million (13.1% of revenues) in
Q3 2018. Gross profit for the nine-months period that ended
on September 30, 2019 increased by
27% to $11.2 million (14.8% of
revenues) compared with $8.8 million
(12.2% of revenues) in the nine-months period that ended on
September 30, 2018.
- EBITDA for Q3 2019 increased by 100% to $2.0 million compared with $1.0 million in Q3 2018. EBITDA for the
nine-months period that ended on September
30, 2019 increased by 380% to $4.8
million compared with $1.0
million in the nine-months period that ended on September 30, 2018.
- GAAP net income was $0.16
million, or $0.02 per diluted
share in Q3 2019 compared with a net loss of $0.5 million, or ($0.06) per diluted share in Q3 2018. GAAP net
income was $0.34 million, or
$0.04 per diluted share in the
nine-months period that ended on September
30, 2019 compared with a net loss of $2.7 million, or ($0.30) per diluted share in the nine-months
period that ended on September 30,
2018.
Mr. Igal Zamir, CEO and President
of TAT Technologies stated, "We are pleased with the results of the
recent nine months. Revenues continue to grow both on the MRO and
OEM segments. TAT continues its improvements in all operational
aspects and profitability."
Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in
accordance with GAAP, the Company also presents a Non-GAAP
presentation of Net Income and Adjusted EBITDA. The
adjustments to the Company's GAAP results are made with the intent
of providing both management and investors a more complete
understanding of the Company's underlying operational results,
trends and performance. Non-GAAP Net Income excludes changes,
income or losses, as applicable, related to one or more of the
following: (1) share-based compensation expenses and/or (2) certain
tax impact and/or (3) acquisition related expenses and/or (4) share
in results of equity investment of affiliated companies. Adjusted
EBITDA is calculated as net income before the Company's share in
results and sale of equity investment of affiliated companies,
share-based compensation, taxes on income, financial (expenses)
income, net, and depreciation and amortization. Non-GAAP Net
Income and Adjusted EBITDA, however, should not be considered as
alternatives to net income and operating income for the period and
may not be indicative of the historic operating results of the
Company; nor they are meant to be predictive of potential future
results. Non-GAAP Net Income and Adjusted EBITDA are not
measures of financial performance under generally accepted
accounting principles and may not be comparable to other similarly
titled measures for other companies. See reconciliation of GAAP Net
Income to Non-GAAP Net Income and Adjusted EBITDA in pages
9 and 12 below.
About TAT Technologies LTD
TAT Technologies Ltd. is a leading provider of services and
products to the commercial and military aerospace and ground
defense industries. TAT operates under four segments: (i) Original
equipment manufacturing ("OEM") of heat transfer solutions and
aviation accessories through its Gedera facility; (ii) MRO services
for heat transfer components and OEM of heat transfer solutions
through its Limco subsidiary; (iii) MRO services for aviation
components through its Piedmont subsidiary; and (iv) Overhaul and
coating of jet engine components through its Turbochrome
subsidiary. TAT controlling shareholders is the FIMI Private Equity
Fund.
TAT's activities in the area of OEM of heat transfer solutions
and aviation accessories primarily include the design, development
and manufacture of (i) broad range of heat transfer solutions, such
as pre-coolers heat exchangers and oil/fuel hydraulic heat
exchangers, used in mechanical and electronic systems on board
commercial, military and business aircraft; (ii) environmental
control and power electronics cooling systems installed on board
aircraft in and ground applications; and (iii) a variety of other
mechanical aircraft accessories and systems such as pumps, valves,
and turbine power units.
TAT's activities in the area of MRO Services for heat transfer
components and OEM of heat transfer solutions primarily include the
MRO of heat transfer components and to a lesser extent, the
manufacturing of certain heat transfer solutions. TAT's Limco
subsidiary operates an FAA-certified repair station, which provides
heat transfer MRO services for airlines, air cargo carriers,
maintenance service centers and the military.
TAT's activities in the area of MRO services for aviation
components include the MRO of APUs, landing gears and other
aircraft components. TAT's Piedmont subsidiary operates an
FAA-certified repair station, which provides aircraft component MRO
services for airlines, air cargo carriers, maintenance service
centers and the military.
TAT's activities in the area of overhaul and coating of jet
engine components includes the overhaul and coating of jet engine
components, including turbine vanes and blades, fan blades,
variable inlet guide vanes and afterburner flaps.
For more information of TAT Technologies Ltd., please visit our
web-site: www.tat-technologies.com
Contact:
Mr. Ehud Ben-Yair
Chief Financial Officer
Tel: 972-8-862-8503
ehudb@tat-technologies.com
Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements which
include, without limitation, statements regarding possible or
assumed future operation results. These statements are hereby
identified as "forward-looking statements" for purposes of the safe
harbor provided by the Private Securities Litigation Reform Act of
1995. These forward-looking statements involve risks and
uncertainties that could cause our results to differ materially
from management's current expectations. Actual results and
performance can also be influenced by other risks that we face in
running our operations including, but are not limited to, general
business conditions in the airline industry, changes in demand for
our services and products, the timing and amount or cancellation of
orders, the price and continuity of supply of component parts used
in our operations, the change of control that will occur on the
sale by the receiver of the Company's shares held by our previously
controlling stockholders, and other risks detailed from time to
time in the Company's filings with the Securities Exchange
Commission, including, its annual report on form 20-F and its
periodic reports on form 6-K. These documents contain and identify
other important factors that could cause actual results to differ
materially from those contained in our projections or
forward-looking statements. Stockholders and other readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date on which they are made.
We undertake no obligation to update publicly or revise any
forward-looking statement.
TAT
TECHNOLOGIES AND ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEET
|
(In
thousands)
|
|
|
September
30,
|
|
December
31,
|
2019
|
|
2018
|
|
(unaudited)
|
|
(audited)
|
ASSETS
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$
16,815
|
|
$
15,950
|
Accounts receivable,
net
|
20,515
|
|
19,277
|
Other current assets
and prepaid expenses
|
3,404
|
|
3,627
|
Inventory,
net
|
41,686
|
|
38,605
|
|
|
|
|
Total current
assets
|
82,420
|
|
77,459
|
|
|
|
|
NON-CURRENT
ASSETS:
|
|
|
|
Investment in
affiliates
|
949
|
|
1,078
|
Funds in respect of
employee rights upon retirement
|
1,372
|
|
2,253
|
Deferred income
taxes
|
230
|
|
162
|
Intangible assets,
net
|
810
|
|
911
|
Property, plant and
equipment, net
|
21,213
|
|
21,424
|
Operating lease right
of use assets
|
6,779
|
|
-
|
|
|
|
|
Total non-current
assets
|
31,353
|
|
25,828
|
Total
assets
|
$
113,773
|
|
$
103,287
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Accounts
payable
|
$
10,779
|
|
$
8,270
|
Accrued
expenses
|
7,946
|
|
6,411
|
Operating lease
liabilities
|
1,331
|
|
-
|
|
|
|
|
Total current
liabilities
|
20,056
|
|
14,681
|
|
|
|
|
NON CURRENT
LIABILITIES:
|
|
|
|
Other
long-term liabilities
|
82
|
|
180
|
Liability in respect
of employee rights upon retirement
|
1,736
|
|
2,648
|
Deferred income
taxes
|
1,259
|
|
1,484
|
Operating lease
liabilities
|
5,772
|
|
-
|
|
|
|
|
Total
non-current liabilities
|
8,849
|
|
4,312
|
Total
liabilities
|
28,905
|
|
18,993
|
|
|
|
|
EQUITY:
|
|
|
|
Share
capital
|
2,809
|
|
2,809
|
Additional paid-in
capital
|
65,526
|
|
65,535
|
Treasury stock at
cost
|
(2,088)
|
|
(2,088)
|
Accumulated other
comprehensive income (loss)
|
34
|
|
(206)
|
Retained
earnings
|
18,587
|
|
18,244
|
Total shareholders'
equity
|
84,868
|
|
84,294
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
113,773
|
|
$
103,287
|
|
|
|
|
TAT TECHNOLOGIES
AND ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(In thousands, except
share and per share data)
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
Year
ended
|
|
September
30,
|
|
December
31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2018
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Audited)
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Products
|
$
5,725
|
|
$
5,543
|
|
$
17,924
|
|
$
18,539
|
|
$
23,151
|
Services
|
20,351
|
|
17,642
|
|
57,454
|
|
53,835
|
|
70,027
|
|
26,076
|
|
23,185
|
|
75,378
|
|
72,374
|
|
93,178
|
|
|
|
|
|
|
|
|
|
|
Cost of
goods:
|
|
|
|
|
|
|
|
|
|
Products
|
4,853
|
|
5,752
|
|
15,037
|
|
18,733
|
|
23,807
|
Services
|
16,983
|
|
14,399
|
|
49,166
|
|
44,838
|
|
60,980
|
|
21,836
|
|
20,151
|
|
64,203
|
|
63,571
|
|
84,787
|
Gross
Profit
|
4,240
|
|
3,034
|
|
11,175
|
|
8,803
|
|
8,391
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development, net
|
46
|
|
(35)
|
|
95
|
|
460
|
|
553
|
Selling and
marketing
|
1,329
|
|
1,171
|
|
3,803
|
|
3,806
|
|
4,913
|
General and
administrative
|
2,031
|
|
1,987
|
|
5,833
|
|
6,733
|
|
8,559
|
Other
loss
|
-
|
|
(1)
|
|
-
|
|
(1)
|
|
(4)
|
|
3,406
|
|
3,122
|
|
9,731
|
|
10,998
|
|
14,021
|
Operating income
(loss)
|
834
|
|
(88)
|
|
1,444
|
|
(2,195)
|
|
(5,630)
|
|
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
(159)
|
|
(58)
|
|
(543)
|
|
(39)
|
|
(102)
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
taxes on income (tax
benefit)
|
675
|
|
(146)
|
|
901
|
|
(2,234)
|
|
(5,732)
|
|
|
|
|
|
|
|
|
|
|
Taxes on income (tax
benefit)
|
453
|
|
356
|
|
419
|
|
326
|
|
(1,464)
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
equity investment
|
222
|
|
(502)
|
|
482
|
|
(2,560)
|
|
(4,268)
|
|
|
|
|
|
|
|
|
|
|
Share in results of
affiliated companies
|
(65)
|
|
(42)
|
|
(139)
|
|
(102)
|
|
(140)
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
157
|
|
$
(544)
|
|
$
343
|
|
$
(2,662)
|
|
$
(4,408)
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
income (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share
|
$
0.02
|
|
$
(0.06)
|
|
$
0.04
|
|
$
(0.30)
|
|
$
(0.5)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
8,874,696
|
|
8,874,696
|
|
8,874,696
|
|
8,861,567
|
|
8,864,885
|
Diluted
|
8,874,696
|
|
8,874,696
|
|
8,874,696
|
|
8,861,567
|
|
8,864,885
|
|
|
|
|
|
|
|
|
|
|
TAT TECHNOLOGIES
AND ITS SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
(In
thousands)
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
Year
ended
|
|
|
September
30,
|
|
December
31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2018
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Audited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
157
|
|
$
(544)
|
|
$
343
|
|
$
(2,662)
|
|
$
(4,408)
|
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
Net unrealized income
(losses) from
derivatives
|
72
|
|
16
|
|
358
|
|
(332)
|
|
(672)
|
|
Reclassification
adjustments for gains (losses)
included
in net income and inventory
|
(104)
|
|
123
|
|
(118)
|
|
165
|
|
331
|
|
Total other comprehensive income (loss)
|
$
125
|
|
$
(405)
|
|
$
583
|
|
$
(2,829)
|
|
$
(4,749)
|
|
TAT TECHNOLOGIES
AND ITS SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
|
|
(In thousands, except
share data)
|
|
|
|
|
|
TAT Technologies
Ltd. Shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
capital
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other
|
|
|
|
|
|
|
|
|
|
Number
of
|
|
|
|
Additional
paid-
|
|
comprehensive
|
|
Treasury
|
|
Retained
|
|
|
|
|
|
shares
issued
|
|
Amount
|
|
in
capital
|
|
income
(loss)
|
|
shares
|
|
earnings
|
|
Total
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE AT DECEMBER
31, 2016 (audited)
|
|
9,102,917
|
|
$
2,797
|
|
$
64,760
|
|
$
(73)
|
|
$
(2,088)
|
|
$
23,256
|
|
$
88,652
|
|
CHANGES DURING THE
YEAR ENDED
DECEMBER 31, 2017 (audited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
-
|
|
-
|
|
-
|
|
208
|
|
-
|
|
2,396
|
|
2,604
|
|
Share based
compensation expenses
|
|
-
|
|
-
|
|
174
|
|
-
|
|
-
|
|
-
|
|
174
|
|
Exercise of
option
|
|
19,584
|
|
5
|
|
139
|
|
-
|
|
-
|
|
-
|
|
144
|
|
Dividend
distributed
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(3,000)
|
|
(3,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE AT
DECEMBER 31, 2017 (audited)
|
|
9,122,501
|
|
$
2,802
|
|
$
65,073
|
|
$
135
|
|
$
(2,088)
|
|
$
22,652
|
|
$
88,574
|
|
CHANGES DURING THE
YEAR ENDED
DECEMBER 31, 2018
(audited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss
|
|
-
|
|
-
|
|
-
|
|
(341)
|
|
-
|
|
(4,408)
|
|
(4,749)
|
|
Share based
compensation expenses
|
|
-
|
|
-
|
|
272
|
|
-
|
|
-
|
|
-
|
|
272
|
|
Exercise of
options
|
|
26,668
|
|
7
|
|
190
|
|
-
|
|
-
|
|
-
|
|
197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE AT
DECEMBER 31, 2018 (audited)
|
|
9,149,169
|
|
$
2,809
|
|
$
65,535
|
|
$
(206)
|
|
$
(2,088)
|
|
$
8,244
|
|
$
84,294
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAT TECHNOLOGIES
AND ITS SUBSIDIARIES
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
|
|
|
(In thousands, except
share data)
|
|
|
|
|
TAT Technologies
Ltd. Shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
capital
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares
issued
|
|
Amount
|
|
Additional paid-in
capital
|
|
Accumulated other
comprehensive income (loss)
|
|
Treasury
shares
|
|
Retained
earnings
|
|
Total
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE AT
DECEMBER 31, 2018 (audited)
|
|
9,149,169
|
|
$
2,809
|
|
$
65,535
|
|
$
(206)
|
|
$
(2,088)
|
|
$
8,244
|
|
$
84,294
|
CHANGES DURING THE
NINE MONTHS ENDED
SEPTEMBER 30, 2019 (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
-
|
|
-
|
|
-
|
|
240
|
|
-
|
|
343
|
|
583
|
Share based
compensation income
|
|
-
|
|
-
|
|
(9)
|
|
-
|
|
-
|
|
-
|
|
(9)
|
BALANCE AT
SEPTEMBER 30, 2019 (unaudited)
|
|
9,149,169
|
|
$
2,809
|
|
$
65,526
|
|
$
34
|
|
$
(2,088)
|
|
$
18,587
|
|
$
84,868
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
capital
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares
issued
|
|
Amount
|
|
Additional paid-in
capital
|
|
Accumulated other
comprehensive income (loss)
|
|
Treasury
shares
|
|
Retained
earnings
|
|
Total
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE AT JULY 1,
2019 (unaudited)
|
|
9,149,169
|
|
$
2,809
|
|
$
65,490
|
|
$
66
|
|
$
(2,088)
|
|
$
18,430
|
|
$
84,707
|
CHANGES DURING THE
THREE MONTHS
ENDED SEPTEMBER 30, 2019 (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
-
|
|
-
|
|
-
|
|
(32)
|
|
-
|
|
157
|
|
125
|
Share based
compensation income
|
|
-
|
|
-
|
|
36
|
|
-
|
|
-
|
|
-
|
|
36
|
BALANCE AT
SEPTEMBER 30, 2019 (unaudited)
|
|
9,149,169
|
|
$
2,809
|
|
$
65,526
|
|
$
34
|
|
$
(2,088)
|
|
$
18,587
|
|
$
84,868
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAT TECHNOLOGIES
AND ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
Year
ended
|
|
|
September
30,
|
|
December
31,
|
|
|
2019
|
|
2018
|
|
2019
|
2018
|
|
2018
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
(Unaudited)
|
|
(Audited)
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
157
|
|
$
(544)
|
|
$
343
|
$
(2,662)
|
|
$
(4,408)
|
Adjustments to
reconcile net income (loss) to net cash
provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
1,097
|
|
1,048
|
|
3,245
|
422
|
|
4,185
|
Loss (gain) from change
in fair value of derivatives
|
|
(38)
|
|
35
|
|
(293)
|
(347)
|
|
382
|
Provision for doubtful
accounts
|
|
-
|
|
(474)
|
|
-
|
102
|
|
(347)
|
Share in results of
equity investment of affiliated Company
|
|
65
|
|
42
|
|
139
|
165
|
|
140
|
Share based
compensation
|
|
36
|
|
46
|
|
(9)
|
422
|
|
272
|
Non cash finance
expense
|
|
107
|
|
-
|
|
324
|
-
|
|
-
|
Liability in respect of
employee rights upon retirement
|
|
(134)
|
|
16
|
|
(912)
|
(287)
|
|
(587)
|
Deferred income taxes,
net
|
|
(115)
|
|
181
|
|
(293)
|
126
|
|
(102)
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Decrease
(increase) in trade accounts receivable
|
|
1,965
|
|
2,015
|
|
(1,238)
|
5,036
|
|
6,814
|
Decrease (increase) in
other current assets and prepaid
expenses
|
|
487
|
|
172
|
|
1,743
|
(576)
|
|
(1,575)
|
Decrease(increase) in
inventory
|
|
(1,043)
|
|
(569)
|
|
(3,165)
|
(481)
|
|
161
|
Increase
(decrease) in trade accounts payable
|
|
56
|
|
1,042
|
|
2,590
|
10
|
|
(969)
|
Increase
(decrease) in accrued expenses
|
|
1,193
|
|
151
|
|
1,535
|
(1,741)
|
|
(1,920)
|
Increase
(decrease) in other long-term liabilities
|
|
(20)
|
|
(25)
|
|
(98)
|
54
|
|
34
|
Net cash provided by
operating activities
|
|
$
3,813
|
|
$
3,136
|
|
$
3,911
|
$
2,906
|
|
$
2,080
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Investment in
affiliated company
|
|
-
|
|
-
|
|
(10)
|
-
|
|
(26)
|
Funds in respect of
employee rights upon retirement
|
|
-
|
|
-
|
|
(22)
|
(22)
|
|
(22)
|
Proceeds from sale of
property and equipment
|
|
-
|
|
-
|
|
-
|
7
|
|
7
|
Purchase of property
and equipment
|
|
(1,287)
|
|
(1,177)
|
|
(3,014)
|
(3,362)
|
|
(4,270)
|
Maturities of
short-term deposits
|
|
|
|
|
|
-
|
-
|
|
470
|
Cash flows used in
investing activities
|
|
$
(1,287)
|
|
$
(1,177)
|
|
$
(3,046)
|
$
(3,377)
|
|
$
(3,841)
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Exercise of
options
|
|
-
|
|
95
|
|
-
|
197
|
|
197
|
Cash flows provided
by financing activities
|
|
$ -
|
|
$
95
|
|
$ -
|
$
197
|
|
$
197
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
2,525
|
|
2,054
|
|
865
|
(274)
|
|
(1,564)
|
Cash and cash
equivalents at beginning of period
|
|
14,290
|
|
15,186
|
|
15,950
|
17,514
|
|
17,514
|
Cash and cash
equivalents at end of period
|
|
$
16,815
|
|
$
17,240
|
|
$
16,815
|
$
17,240
|
|
$
15,950
|
TAT TECHNOLOGIES
AND ITS SUBSIDIARIES
|
RECONCILIATION OF
NET INCOME TO ADJUSTED EBITDA (NON-GAAP)
(UNAUDITED)
|
(In
thousands)
|
|
|
Three months
ended
|
Nine months
ended
|
Year
ended
|
|
September
30,
|
September
30,
|
December
31,
|
|
2019
|
|
2018
|
2019
|
2018
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
157
|
|
$
(544)
|
$
343
|
$
(2,662)
|
$
(4,408)
|
Adjustments:
|
|
|
|
|
|
|
Share in results of
equity investment
of affiliated companies
|
65
|
|
42
|
139
|
102
|
140
|
Taxes on income (tax
benefit)
|
453
|
|
356
|
419
|
326
|
(1,464)
|
Financial expenses,
net
|
159
|
|
58
|
543
|
39
|
102
|
Depreciation and
amortization
|
1,145
|
|
1,048
|
3,341
|
3,085
|
4,185
|
Share based compensation
|
36
|
|
46
|
(9)
|
165
|
272
|
Adjusted
EBITDA
|
$
2,015
|
|
$
1,006
|
$
4,776
|
$
1,055
|
$
(1,173)
|
|
|
|
|
|
|
|
Note to the financial statements
In February 2016, the
FASB issued ASU No. 2016-02, Leases (Topic 842), which requires
lessees to recognize leases on-balance sheet and disclose key
information about leasing arrangements. The new standard
establishes a right-of-use (ROU) model that requires a lessee to
recognize a ROU assets and lease liabilities on the balance sheet.
Leases will be classified as finance or operating, with
classification affecting the pattern and classification of expense
recognition in the statement of operations. The Company adopted the
new standard on January 1, 2019 using the modified retrospective
transition method and did not restate comparative periods. The new
standard provides a number of optional practical expedients in
transition. The Company recognizes the lease expenses in the
consolidated statements of Operations on a straight-line basis over
the lease period.
|
Additionally, the Company did not separate lease and non-lease
components for all of its leases. The Company elected the
short-term lease recognition exemption for all leases that qualify.
This means, for those leases that qualify, the Company will not
recognize ROU assets or lease liabilities, and this includes not
recognizing ROU assets or lease liabilities for existing short-term
leases of those assets in transition. Instead, the Company will
continue to recognize the lease payments for those leases in profit
or loss on a straight-line basis over the lease term.
The most significant effects of adoption relate to (1) the
recognition of new ROU assets and lease liabilities on its balance
sheet for real estate operating leases; and (2) recording of
Non-cash finance expenses on its statement of income.
The adoption of the standard resulted in recognition of
$7.3 million of lease assets and
lease liabilities as of January 1, 2019 on the Company's
consolidated balance sheets. During the three months period ended
September 30, 2019 and during the
nine months period ended September 30,
2019 the Company recorded non-cash finance expenses in the
amount of $0.11 million and
$0.32 million, respectively.
View original
content:http://www.prnewswire.com/news-releases/tat-technologies-reports-third-quarter-2019-results-300966779.html
SOURCE TAT Technologies Ltd