PETACH-TIKVA, Israel,
May 20, 2021 /PRNewswire/ -- Eltek
Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of
technologically advanced solutions in the field of printed circuit
boards (PCBs), today announced its financial results for the
quarter ended March 31, 2021.
"Despite the global challenges we encountered related to both
the Covid-19 pandemic and the shortage of key raw materials, we
were able to respond quickly, maintain operational efficiency and
remain profitable in the first quarter," said Eli
Yaffe, Chief Executive Officer of Eltek. "We expect that
revenues will rebound during the rest of the year and lost sales
will be recovered upon the expected availability of key raw
material (Pyralux AP) which was in short supply and with the
authorization of the use of alternative raw materials by our
customers," added Mr. Yaffe. "The approval process with our
customers for the use of the alternative raw materials is
proceeding as planned and, is reducing our production costs. In
addition, we are exploring ways to strengthen our position in the
multi-billion dollar PCB market in North
America, and can serve as a rapid growth engine for Eltek,"
further explained Mr. Yaffe.
"We are operating in a challenging business environment and
making the necessary adjustments to increase revenues, expand our
operating efficiencies, improve customer satisfaction and maintain
sustained profitability. We plan to strengthen our sales activities
and continue our investments in new equipment to expand our
manufacturing facilities and infrastructure during the remainder of
the year as part of our strategic growth plan. Our board of
directors approved our obtaining a loan of NIS 10 million (approximately $3.1 million) from Bank Leumi B.M. The loan has a
term of ten years, with favorable terms, including a repayment
schedule that starts after a 12 month grace period and carried
interest of Prime + 1.50%, which is waived for the first year of
the loan," concluded Mr. Yaffe.
Highlights of the First Quarter of 2021 compared to the First
Quarter of 2020
- Revenues were $7.2 million
in the first quarter of 2021 compared to revenues of $9.2 million in the first quarter of 2020;
- Gross profit was $1.1
million (15.9% of revenues) in the first quarter of 2021
compared to $1.8 (19.7% of revenues)
in the first quarter of 2020;
- Operating profit was $136,000 in the first quarter of 2021 compared to
operating profit of $612,000 in the
first quarter of 2020;
- Net profit was $223,000 or
$0.04 per fully diluted share for the
first quarter of 2021 compared to net profit of $541,000 or $0.12
per fully diluted share in the first quarter of 2020;
- EBITDA was a $577,000
(8.0% of revenues) in the first quarter of 2021 compared to EBITDA
of $1.0 million (11.0% of revenues)
in the first quarter of 2020;
- Net cash provided by operating activities amounted to
$2.5 million in the first quarter of
2021 compared to net cash provided by operating activities of
$1.5 million in the first quarter of
2020; and
- Cash and cash equivalents as of March 31, 2021 were $6.4
million compared to $4.7
million as of December 31,
2020.
Conference Call
Today, Thursday, May 20, 2021, at
8:30am 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:
1-888-723-3164
Israel:
03-918-0691
International:
+972-3-918-0691
at:
8:30am Eastern Time
5:30am Pacific Time
15:30pm Israel Time
A replay of the call will be available for 30 days on the
Investor Info section on Eltek's corporate website at
http://www.nisteceltek.com approximately 24 hours after the
conference call is completed.
About Eltek
Eltek is a global manufacturer and supplier of technologically
advanced solutions in the field of printed circuit boards (PCBs)
and is the leading Israeli company in this industry. PCBs are the
core circuitry of most electronic devices for which 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
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 COVID-19 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,
shortage of raw materials, 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.
Investor Contact
Alon Mualem
Chief Financial Officer
alonm@nisteceltek.com
+972-3-939-5023
(Tables follow)
Eltek
Ltd.
|
Consolidated
Statements of Operations
|
(In thousands US$,
except per share data)
|
|
|
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2021
|
2020
|
|
|
|
|
|
|
|
Revenues
|
7,205
|
9,157
|
Costs of
revenues
|
(6,061)
|
(7,354)
|
Gross
profit
|
1,144
|
1,803
|
|
|
|
|
Selling, general and
administrative expenses
|
(1,008)
|
(1,189)
|
R&D expenses,
net
|
-
|
(2)
|
Operating
profit
|
136
|
612
|
|
|
|
|
Financial expenses,
net
|
104
|
(55)
|
Other income,
net
|
|
(2)
|
(1)
|
Profit before
income tax
|
238
|
556
|
|
|
|
|
Tax
expenses
|
(15)
|
(15)
|
Net
Profit
|
223
|
541
|
|
|
|
|
Earnings per
share
|
|
|
Basic and diluted net
profit per ordinary share
|
0.04
|
0.12
|
|
|
|
|
Weighted average
number of ordinary shares used to compute
|
|
|
basic net profit per
ordinary share (in thousands)
|
5,840
|
4,380
|
|
|
|
|
Weighted average
number of ordinary shares used to compute
|
|
|
diluted net profit
per ordinary share (in thousands)
|
5,866
|
4,382
|
Eltek
Ltd.
|
Consolidated
Balance Sheets
|
(In thousands
US$)
|
|
|
|
|
|
|
March
31,
|
December
31,
|
|
|
2021
|
2020
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
|
6,406
|
4,735
|
Receivables: Trade, net of provision for
doubtful accounts
|
|
5,770
|
9,062
|
Other
|
|
938
|
700
|
Inventories
|
|
4,065
|
3,704
|
Prepaid
expenses
|
|
552
|
619
|
|
|
|
|
Total current
assets
|
|
17,731
|
18,820
|
|
|
|
|
Long term
assets
|
|
|
|
Restricted
deposits
|
|
60
|
62
|
Severance pay
fund
|
|
62
|
64
|
Operating lease right
of use assets
|
|
8,694
|
8,948
|
Total long term
assets
|
|
8,816
|
9,074
|
|
|
|
|
Fixed assets, less
accumulated depreciation
|
|
7,029
|
7,263
|
|
|
|
|
Total
Assets
|
|
33,576
|
35,157
|
|
|
|
|
Liabilities and
Shareholder's equity
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
Short-term credit and
current maturities of long-term debts
|
|
364
|
676
|
Accounts payable:
Trade
|
|
4,289
|
4,452
|
Other
|
|
3,378
|
3,831
|
Short-term operating
lease liabilities
|
|
713
|
742
|
|
|
|
|
Total current
liabilities
|
|
8,744
|
9,701
|
|
|
|
|
Long-term
liabilities
|
|
|
|
Long term debt,
excluding current maturities
|
|
1,387
|
1,495
|
Employee severance
benefits
|
|
320
|
338
|
Deferred tax
liabilities
|
|
88
|
84
|
Long-term operating
lease liabilities
|
|
8,049
|
8,272
|
|
|
|
|
Total long-term
liabilities
|
|
9,844
|
10,189
|
|
|
|
|
Equity
|
|
|
|
Ordinary shares, NIS
3.0 par value authorized 10,000,000
shares, issued and outstanding 5,840,357
|
|
5,296
|
5,296
|
Additional paid-in
capital
|
|
22,846
|
22,846
|
Cumulative foreign
currency translation adjustments
|
|
2,638
|
3,153
|
Capital
reserve
|
|
1,097
|
1,084
|
Accumulated
deficit
|
|
(16,889)
|
(17,112)
|
Shareholders'
equity
|
|
14,988
|
15,267
|
Total liabilities
and shareholders' equity
|
|
33,576
|
35,157
|
Eltek
Ltd.
|
Unaudited Non-GAAP
EBITDA Reconciliations
|
(In thousands
US$)
|
|
|
|
|
Non-GAAP EBITDA
Reconciliations
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2021
|
2020
|
|
|
Unaudited
|
|
|
|
|
|
|
|
GAAP net Income
(loss)
|
|
223
|
541
|
Add back
items:
|
|
|
|
|
|
|
|
Financial expenses,
net
|
|
(104)
|
55
|
Income tax
expense
|
|
15
|
15
|
Depreciation and
amortization
|
|
443
|
395
|
Non-GAAP
EBITDA
|
|
577
|
1,006
|
Eltek
Ltd.
|
Consolidated
Statement of Cash flow
|
(In thousands
US$)
|
|
|
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2021
|
2020
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net
Income
|
|
223
|
541
|
|
|
|
|
Adjustments to
reconcile net profit to net
|
|
|
|
cash flows
provided by operating activities:
|
|
|
|
Depreciation and
amortization
|
|
443
|
395
|
Stock-based
compensation
|
|
13
|
26
|
Revaluation of long
term loans
|
|
-
|
10
|
Increase in deferred
tax liabilities
|
|
8
|
5
|
|
|
464
|
436
|
|
|
|
|
Decrease (increase)
in operating lease right-of-use assets
|
|
4
|
(5)
|
Decrease (increase)
in trade receivables
|
|
3,028
|
(132)
|
Decrease (increase)
in other receivables and prepaid expenses
|
|
(220)
|
139
|
Decrease (increase)
in inventories
|
|
(502)
|
221
|
Decrease in trade
payables
|
|
(200)
|
(257)
|
Increase (decrease)
in other liabilities and accrued expenses
|
|
(323)
|
520
|
Increase
(decrease) in employee severance benefits, net
|
|
(6)
|
16
|
|
|
1,781
|
502
|
|
|
|
|
Net cash provided
by operating activities
|
|
2,468
|
1,479
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Purchase of fixed
assets
|
|
(208)
|
(204)
|
Net cash used in
investing activities
|
|
(208)
|
(204)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Short- term bank
credit, net
|
|
(377)
|
(438)
|
Repayment of
long-term loans from bank
|
|
(38)
|
(73)
|
Repayment of credit
from fixed asset payables
|
|
(11)
|
(151)
|
Net cash used in
financing activities
|
|
(426)
|
(662)
|
|
|
|
|
Effect of
translation adjustments
|
|
(163)
|
(27)
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
1,671
|
586
|
|
|
|
|
Cash and cash
equivalents at beginning of the period
|
|
4,735
|
1,628
|
|
|
|
|
Cash and cash
equivalents at period end
|
|
6,406
|
2,214
|
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SOURCE Eltek Ltd.