PETACH TIKVA, Israel, March 11,
2024 /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 full year and fourth
quarter ended December 31, 2023.
Full Year and Fourth Quarter 2023 Highlights
- Revenues: Full-year revenue soared to a record
$46.7 million in 2023, representing
18% year-over-year growth. This remarkable growth is attributed to
our increased production capacity and to our continued commitment
to delivering high-quality PCB solutions to our valued
customers.
- Profitability: Net income reached $6.4 million in 2023, reflecting almost two times
2022 net income. EBITDA reached $8.6
million, a 91% increase compared to $4.5 million in 2022. This substantial growth
underscores the efficiency of our operations, strategic
initiatives, and the unwavering trust our customers place in
Eltek.
- Earnings per Share (EPS): Diluted EPS jumped to
$1.07 in 2023, an increase of 93%
compared to 2022. This accomplishment reflects the dedication of
our team and the effectiveness of our business strategies.
- Q4 Highlights: Revenue climbed to $12.3 million in Q4, marking an 18% increase from
the same period last year. Net income for the quarter reached
$1.3 million and EBITDA for the
quarter reached $2.4 million.
Driving Growth and Innovation:
Eltek's success stems from a multi-pronged approach:
- Innovation: Our relentless pursuit of innovation has allowed us
to stay at the forefront of technological advancements, meeting the
evolving needs of the defense, aerospace, and medical
industries.
- Customer Focus: Building strong, long-lasting relationships
with our customers has been a cornerstone of our success. We
understand the unique challenges faced by the defense, aerospace
and medical sectors, and our tailored solutions have contributed to
our customers' success.
- Operational Efficiency: Eltek continues to invest in
state-of-the-art manufacturing processes and quality control
measures, ensuring the production of reliable and high-performance
PCBs.
Market Trends and Outlook:
The PCB industry is experiencing dynamic shifts, driven by
advancements in technology and evolving market demands. As Eltek
primarily operates in the defense, aerospace and medical sectors,
we are well-positioned to capitalize on the following market
trends:
- Increasing Demand for Advanced Electronics: The defense and
aerospace industries are witnessing a growing need for
sophisticated electronic components, driving the demand for
high-performance PCBs. Eltek's focus on innovation aligns
perfectly with this trend.
- Emphasis on Reliability and Quality: With critical applications
in defense, aerospace and medical devices, reliability and quality
are non-negotiable. Eltek has consistently delivered PCB
solutions that meet the stringent standards of these industries,
reinforcing our position as a trusted partner.
- Global Supply Chain Challenges: The industry has faced
challenges related to the global supply chain. Eltek has
proactively managed these challenges through strategic partnerships
and diversified sourcing, ensuring minimal impact on our
operations.
Management Statement:
Eli Yaffe, CEO of Eltek, stated,
"We are thrilled to report a very strong fourth quarter and year,
surpassing all financial targets and solidifying our position as a
leader in the PCB market. This achievement is a testament to the
dedication and expertise of our team, the trust of our valued
partners and the unwavering support of our shareholders. Looking
ahead, we are confident in our ability to navigate the evolving
industry landscape and continue delivering exceptional value to all
shareholders. The defense, aerospace and medical industries present
significant opportunities and Eltek is well-positioned to
capitalize on them.
Our decision at the start of 2022 to allocate $15 million in an investment plan for expanding
and enhancing our manufacturing capabilities aligns seamlessly with
the existing robust demand for our products. Presently, a material
portion of the investment plan has either been implemented or is
currently in the installation phase. These investments will
facilitate the augmentation of our production capacity, improve our
operational efficiency and enhance our technological
capabilities."
Ron Freund, CFO of Eltek added:
"During February 2024, we raised
$10 million in equity before
expenses. We are grateful for the trust given by the investors who
participated in the offering. We are committed to the continued
growth of the Company, and we intend to use the funds raised for
the expansion of our production capabilities as well as for working
capital needs."
2023 Full Year GAAP Financial Results
Revenues for 2023 were $46.7
million compared to $39.7
million in 2022.
Gross profit for 2023 was $13.1 million (28% of revenues) compared to
$8.3 million (21% of revenues) in
2022.
Operating profit for 2023 was $7.3
million compared to operating profit of $3.0 million in 2022.
Financial income for 2023 was $0.4
million compared to financial income of $0.9 million in 2022.
Net profit for 2023 was $6.4
million or $1.07 per fully
diluted share compared to net profit of $3.2
million or $0.55 per fully
diluted share in 2022.
2023 Full Year Non-GAAP Financial Results
EBITDA for 2023 was a $8.6 million
(18% of revenues) compared to EBITDA of $4.5
million (11% of revenues) in 2022.
Fourth Quarter 2023 GAAP Financial Results
Revenues for the fourth quarter of 2023 were
$12.3 million compared to
$10.5 million in the fourth quarter
of 2022.
Gross profit for the fourth quarter of 2023 was
$3.5 million (28% of revenues)
compared to $2.2 million (21% of
revenues) in the fourth quarter of 2022.
Operating profit for the fourth quarter of 2023 was
$2.0 million compared to operating
profit of $0.8 million in the fourth
quarter of 2022.
Financial expenses for the fourth quarter of 2023 were
$0.3 million compared to financial
income of $0.1 million in the fourth
quarter of 2022. The financial expenses in the fourth quarter
of 2023, derive primarily from the erosion of the US Dollar against
the NIS during the quarter.
Net profit for the fourth quarter of 2023 was
$1.3 million or $0.22 per fully diluted share compared to net
profit of $0.8 million or
$0.14 per fully diluted share in the
fourth quarter of 2022.
Fourth Quarter 2023 Non-GAAP Financial Results
EBITDA for the fourth quarter of 2023 was a $2.4 million (19% of revenues) compared to
EBITDA of $1.2 million (12% of
revenues) in the fourth quarter of 2022.
Conference Call
Today, Monday, March 11, 2024, at
10:00am Eastern Time (16:00pm Israel Time, 7:00am Pacific Time), Eltek will conduct a
conference call to discuss the results. The call will feature
remarks by Eli Yaffe, Chief
Executive Officer and Ron Freund,
Chief Financial Officer.
To participate, please call the following teleconference
numbers. Please allow for additional time to connect prior to the
call:
United States:
|
1-866-860-9642
|
Israel:
|
03-918-0691
|
International:
|
+972-3-918-0691
|
To Access a Replay of the Call
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 – "Innovation Across the Board", is a global manufacturer
and supplier of technologically advanced solutions in the field of
printed circuit boards (PCBs), and is an Israeli leading company 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
subsidiary in North America 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
Forward Looking Statements
Some of the statements included in this press release may be
forward-looking statements that involve a number of risks and
uncertainties including, but not limited to 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. Any
forward-looking statements set forth in this press release speak
only as of the date of this press release. The information found on
our website is not incorporated by reference into this press
release and is included for reference purposes only.
About our 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.
Investor Contact
Ron Freund
Chief Financial Officer
Investor-Contact@nisteceltek.com
+972-3-939-5023
(Tables follow)
Eltek
Ltd.
|
Consolidated
Statements of Income
|
(In thousands US$,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
12,321
|
|
10,479
|
|
46,695
|
|
39,650
|
|
|
Costs of
revenues
|
|
(8,865)
|
|
(8,267)
|
|
(33,593)
|
|
(31,380)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
3,456
|
|
2,212
|
|
13,102
|
|
8,270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
(1,405)
|
|
(1,348)
|
|
(5,722)
|
|
(5,207)
|
|
|
Research and
development expenses, net
|
|
(49)
|
|
(15)
|
|
(85)
|
|
(92)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
2,002
|
|
849
|
|
7,295
|
|
2,971
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income
(expenses), net
|
|
(334)
|
|
100
|
|
422
|
|
887
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before income
tax
|
|
1,668
|
|
949
|
|
7,717
|
|
3,858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax expenses
|
|
337
|
|
144
|
|
1,364
|
|
664
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Profit
|
|
1,331
|
|
805
|
|
6,353
|
|
3,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic net profit per
ordinary share
|
|
0.22
|
|
0.14
|
|
1.08
|
|
0.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net profit per
ordinary share
|
|
0.22
|
|
0.14
|
|
1.07
|
|
0.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of ordinary shares used to compute
|
|
|
|
|
|
|
|
|
|
|
basic net profit per
ordinary share (in thousands)
|
|
5,977
|
|
5,850
|
|
5,902
|
|
5,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of ordinary shares used to compute
|
|
|
|
|
|
|
|
|
|
|
diluted net profit per
ordinary share (in thousands)
|
|
6,074
|
|
5,850
|
|
5,956
|
|
5,848
|
|
|
Eltek
Ltd.
|
Consolidated Balance
Sheets
|
(In thousands
US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
9,278
|
|
7,366
|
|
|
|
|
|
|
Short-term bank
deposits
|
|
2,862
|
|
-
|
|
|
|
|
|
|
Receivables: Trade, net of provision for
doubtful accounts
|
|
10,898
|
|
10,116
|
|
|
|
|
|
|
Other
|
|
689
|
|
282
|
|
|
|
|
|
|
Inventories
|
|
6,135
|
|
5,130
|
|
|
|
|
|
|
Prepaid
expenses
|
|
245
|
|
504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
30,107
|
|
23,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long term
assets:
|
|
|
|
|
|
|
|
|
|
|
Restricted
deposits
|
|
-
|
|
202
|
|
|
|
|
|
|
Severance pay
fund
|
|
57
|
|
59
|
|
|
|
|
|
|
Deferred tax assets and
long term tax receivables, net
|
|
1,098
|
|
2,496
|
|
|
|
|
|
|
Operating lease right
of use assets
|
|
6,555
|
|
7,156
|
|
|
|
|
|
|
Total long term
assets
|
|
7,710
|
|
9,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed assets, less
accumulated depreciation
|
|
9,354
|
|
7,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
47,171
|
|
40,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholder's equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
Short-term credit and
current maturities of long-term debts
|
|
-
|
|
702
|
|
|
|
|
|
|
Accounts payable:
Trade
|
|
7,503
|
|
4,793
|
|
|
|
|
|
|
Other
|
|
5,689
|
|
4,133
|
|
|
|
|
|
|
Short-term operating
lease liabilities
|
|
789
|
|
846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
13,981
|
|
10,474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
|
|
|
Long term debt,
excluding current maturities
|
|
-
|
|
2,768
|
|
|
|
|
|
|
Employee severance
benefits
|
|
447
|
|
280
|
|
|
|
|
|
|
Long-term operating
lease liabilities
|
|
5,871
|
|
6,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total long-term
liabilities
|
|
6,318
|
|
9,491
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares, NIS
3.0 par value authorized 10,000,000 shares, issued
and outstanding 6,020,693 at December 31, 2023 and 5,849,678 at
December 31, 2022
|
|
5,443
|
|
5,305
|
|
|
|
|
|
|
Additional paid-in
capital
|
|
23,587
|
|
22,862
|
|
|
|
|
|
|
Cumulative foreign
currency translation adjustments
|
|
783
|
|
1,189
|
|
|
|
|
|
|
Capital
reserve
|
|
1,900
|
|
1,537
|
|
|
|
|
|
|
Accumulated
deficit
|
|
(4,841)
|
|
(9,873)
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
26,872
|
|
21,020
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
47,171
|
|
40,985
|
|
|
|
|
|
|
Eltek
Ltd.
|
Unaudited Non-GAAP
EBITDA Reconciliation
|
(In thousands
US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
Income
|
|
1,331
|
|
805
|
|
6,353
|
|
3,194
|
|
Add back items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses
(income), net
|
|
334
|
|
(100)
|
|
(422)
|
|
(887)
|
|
Income tax
expenses
|
|
337
|
|
144
|
|
1,364
|
|
664
|
|
Depreciation and
amortization
|
|
388
|
|
357
|
|
1,317
|
|
1,541
|
|
Non-GAAP
EBITDA
|
|
2,390
|
|
1,206
|
|
8,612
|
|
4,512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eltek
Ltd.
|
Consolidated
Statements of Cash Flows
|
(In thousands
US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
1,331
|
|
805
|
|
6,353
|
|
3,194
|
|
|
Adjustments to
reconcile net income to net cash flows
|
|
|
|
|
|
|
|
|
|
|
provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
388
|
|
357
|
|
1,317
|
|
1,541
|
|
|
Stock-based
compensation
|
|
147
|
|
62
|
|
363
|
|
250
|
|
|
Decrease in deferred
tax assets and long term tax receivable
|
|
304
|
|
151
|
|
1,302
|
|
653
|
|
|
|
|
839
|
|
570
|
|
2,982
|
|
2,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease (increase) in
operating lease right-of-use assets
|
|
(1)
|
|
3
|
|
(23)
|
|
11
|
|
|
Decrease (increase) in
trade receivables
|
|
(211)
|
|
(446)
|
|
(1,010)
|
|
(3,941)
|
|
|
Decrease (increase) in
other receivables and prepaid expenses
|
|
55
|
|
42
|
|
(169)
|
|
437
|
|
|
Decrease (increase) in
inventories
|
|
(283)
|
|
(463)
|
|
(1,139)
|
|
(806)
|
|
|
Increase (decrease) in
trade payables
|
|
958
|
|
380
|
|
989
|
|
1,543
|
|
|
Increase (decrease) in
other liabilities and accrued expenses
|
|
(507)
|
|
402
|
|
707
|
|
972
|
|
|
Increase (decrease) in
employee severance benefits, net
|
|
139
|
|
(36)
|
|
172
|
|
(25)
|
|
|
|
|
150
|
|
(118)
|
|
(473)
|
|
(1,809)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
2,320
|
|
1,257
|
|
8,862
|
|
3,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
Purchase of fixed
assets
|
|
(1,246)
|
|
(571)
|
|
(2,432)
|
|
(3,027)
|
|
|
Repayment from
insurance
|
|
-
|
|
-
|
|
2,000
|
|
-
|
|
|
Investment in
short-term bank deposits
|
|
(2,719)
|
|
-
|
|
(2,719)
|
|
-
|
|
|
Restricted
deposits
|
|
-
|
|
-
|
|
192
|
|
(2)
|
|
|
Net cash used in
investing activities
|
|
(3,965)
|
|
(571)
|
|
(2,959)
|
|
(3,029)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
Exercise of
options
|
|
535
|
|
-
|
|
863
|
|
25
|
|
|
Dividend
distribution
|
|
(1,321)
|
|
(994)
|
|
(1,321)
|
|
(994)
|
|
|
Repayment of long-term
loans from bank
|
|
-
|
|
(227)
|
|
(3,348)
|
|
(669)
|
|
|
Net cash used in
financing activities
|
|
(786)
|
|
(1,221)
|
|
(3,806)
|
|
(1,638)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of translation
adjustments
|
|
404
|
|
54
|
|
(185)
|
|
(1,079)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents
|
|
(2,027)
|
|
(481)
|
|
1,912
|
|
(1,917)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the beginning of the period
|
|
11,305
|
|
7,847
|
|
7,366
|
|
9,283
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period
|
|
9,278
|
|
7,366
|
|
9,278
|
|
7,366
|
|
|
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SOURCE Eltek Ltd.