PETACH TIKVA, Israel, Nov. 16,
2023 /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 September 30, 2023.
Third Quarter 2023 Highlights
- Revenues were $11.9 million, up
15% over Q3 2022
- Operating profit was $2.3
million, up 105% over Q3 2022
- Profit before tax was $2.6
million compared to $1.2
million at Q3 2022.
- Net income was $2.1 million or
$0.36 per fully diluted share, up
114% over Q3 2022
- As of September 30, 2023, cash
and cash equivalents amounted $11.3
million compared to $8.3
million at the end of the previous quarter.
"In the third quarter of 2023, we achieved impressive financial
results. We generated $11.9 million
in revenue, leading to a robust gross profit of $3.7 million and a net profit of $2.1 million. These exceptional numbers reflect
the strong market demand for our products, underpinned by our
efficient order selection, which strikes a balance between
maximizing profitability and aligning with our production
capabilities. As of the end of the quarter, our cash and cash
equivalents stood at $11.3 million,
providing substantial financial support for our upcoming capital
expenditure needs," said Eli Yaffe,
CEO of Eltek.
"The ongoing conflict in Israel
underscores the critical significance of a domestic PCB industry.
Such an industry would not only offer advanced technological
solutions but also produce intricate circuits tailored to specific
defense requirements, employing state-of-the-art technology, and
ensuring the highest quality standards. Additionally, it would
enable swift delivery to meet the immediate demands of the defense
sector. Eltek holds the status of an Essential Enterprise as
designated by the Israeli government, granting us permission to
operate around the clock, 365 days a year, as needed," continued
Mr. Yaffe.
"Over the past weeks, and up to the present moment, we have
maintained seamless operations without any disruptions. In certain
instances, we've even accelerated the delivery of products to our
valued customers. Our dedicated workforce remains fully engaged,
reporting for duty on their regular schedules. We have implemented
a series of strategic measures to ensure we meet our customers'
demands. These includes securing commitments from our suppliers to
continue delivering the essential raw materials to our facility in
conformance with our orders, bolstering our inventory levels for
selected raw materials and expediting the deliveries of crucial
resources," continued Mr. Yaffe.
"Eltek management and employees bow their heads in memory of
those killed in the murderous attack that happened on October 7, 2023. Our thoughts and prayers are
with the injured for a speedy recovery and the safe return of those
who were abducted," concluded Mr. Yaffe.
Third Quarter 2023 GAAP Financial Results
- Revenues for the third quarter of 2023 were
$11.9 million, compared to
$10.3 million in the third quarter of
2022;
- Gross profit for the third quarter of 2023 was
$3.7 million (31% of revenues)
compared to $2.4 million (23% of
revenues) in the third quarter of 2022;
- Operating profit for the third quarter of 2023 was
$2.3 million compared to operating
profit of $1.1 million in the third
quarter of 2022;
- Profit before income tax for the third quarter of
2023 was $2.6 million compared to
$1.2 million in the third quarter of
2022;
- Net income for the third quarter of 2023 was
$2.1 million or $0.36 per fully diluted share compared to net
income of $1.0 million or
$0.17 per fully diluted share in the
third quarter of 2022.
Third Quarter 2023 Non-GAAP Financial Results
- EBITDA for the third quarter of 2023 was $2.6 million (22% of revenues) compared to
EBITDA of $1.4 million (14% of
revenues) in the third quarter of 2022.
First Nine Months 2023 GAAP Financial Results
- Revenues for the first nine months of 2023 were
$34.4 million compared to
$29.2 million in the first nine
months of 2022;
- Gross profit for the first nine months of 2023 was
$9.6 million (28% of revenues)
compared to $6.1 million (21% of
revenues) in the first nine months of 2022;
- Operating profit for the first nine months of 2023 was
$5.3 million compared to operating
profit of $2.1 million in the first
nine months of 2022;
- Financial income for the first nine months of 2023 was
$0.8 million compared to financial
income of $0.8 million in the first
nine months of 2022.
- Profit before income tax for the first nine months
of 2023 was $6.0 million compared to
$2.9 million in the first nine months
of 2022;
- Net profit for the first nine months of 2023 was
$5.0 million or $0.85 per fully diluted share compared to net
profit of $2.4 million or
$0.41 per fully diluted share in the
first nine months of 2022.
First Nine Months 2023 Non-GAAP Financial Results
- EBITDA for the first nine months of 2023 was a
$6.2 million (18% of
revenues) compared to EBITDA of $3.3
million (11% of revenues) in the first nine months of
2022.
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 the table below.
Conference Call
Today, Thursday, November 16,
2023, at 8:30am Eastern Time
(15:30pm Israel Time, 5:30am 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 Statement
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.
Investor Contact
Ron
Freund
Chief Financial Officer
Investor-Contact@nisteceltek.com
+972-3-939-5023
Eltek
Ltd.
|
Consolidated
Statements of Income
|
(Unaudited, in
thousands US$, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
11,861
|
|
10,327
|
|
34,374
|
|
29,171
|
|
|
Costs of
revenues
|
|
(8,182)
|
|
(7,908)
|
|
(24,728)
|
|
(23,113)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
3,679
|
|
2,419
|
|
9,646
|
|
6,058
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
(1,357)
|
|
(1,261)
|
|
(4,317)
|
|
(3,859)
|
|
|
R&D expenses,
net
|
|
(12)
|
|
(33)
|
|
(36)
|
|
(77)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
2,310
|
|
1,125
|
|
5,293
|
|
2,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income,
net
|
|
279
|
|
55
|
|
756
|
|
787
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax
|
|
2,589
|
|
1,180
|
|
6,049
|
|
2,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes on
income
|
|
442
|
|
176
|
|
1,027
|
|
520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
2,147
|
|
1,004
|
|
5,022
|
|
2,389
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
profit per ordinary share
|
|
0.36
|
|
0.17
|
|
0.85
|
|
0.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of ordinary shares used to compute
|
|
|
|
|
|
|
|
|
|
|
basic net profit per
ordinary share (in thousands)
|
|
5,914
|
|
5,850
|
|
5,890
|
|
5,846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of ordinary shares used to compute
|
|
|
|
|
|
|
|
|
|
|
diluted net profit per
ordinary share (in thousands)
|
|
5,987
|
|
5,850
|
|
5,927
|
|
5,846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eltek
Ltd.
|
Consolidated Balance
Sheets
|
(Unaudited, in
thousands US$)
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December 31,
|
|
2023
|
|
2022
|
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
11,305
|
|
7,366
|
Receivables: Trade, net of provision for
doubtful accounts
|
10,112
|
|
10,116
|
Other
|
719
|
|
282
|
Inventories
|
5,577
|
|
5,130
|
Prepaid
expenses
|
228
|
|
504
|
|
|
|
|
Total current
assets
|
27,941
|
|
23,398
|
|
|
|
|
Long term
assets:
|
|
|
|
Restricted
deposits
|
-
|
|
202
|
Severance pay
fund
|
54
|
|
59
|
Deferred tax assets and
long term tax receivables, net
|
1,299
|
|
2,496
|
Operating lease right
of use assets
|
6,380
|
|
7,156
|
Total long term
assets
|
7,733
|
|
9,913
|
|
|
|
|
Fixed assets, less
accumulated depreciation
|
6,601
|
|
7,674
|
|
|
|
|
Total
Assets
|
42,275
|
|
40,985
|
|
|
|
|
Liabilities and
Shareholder's equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term credit and
current maturities of long-term debts
|
-
|
|
702
|
Accounts payable:
Trade
|
4,779
|
|
4,793
|
Other
|
5,962
|
|
4,133
|
Short-term operating
lease liabilities
|
757
|
|
846
|
|
|
|
|
Total current
liabilities
|
11,498
|
|
10,474
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
Long term debt,
excluding current maturities
|
-
|
|
2,768
|
Employee severance
benefits
|
291
|
|
280
|
Long-term operating
lease liabilities
|
5,724
|
|
6,443
|
|
|
|
|
Total long-term
liabilities
|
6,015
|
|
9,491
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
Ordinary shares of NIS
3.0 par value – Authorized: 10,000,000 shares at
September 30, 2023 and
December 31, 2022; Issued and outstanding: 5,913,965 shares
at
September 30, 2023 and
5,849,678 shares at December 31, 2022
|
5,358
|
|
5,305
|
Additional paid-in
capital
|
23,137
|
|
22,862
|
Cumulative foreign
currency translation adjustments
|
(635)
|
|
1,189
|
Capital
reserve
|
1,753
|
|
1,537
|
Accumulated
deficit
|
(4,851)
|
|
(9,873)
|
Total shareholders'
equity
|
24,762
|
|
21,020
|
Total liabilities
and shareholders' equity
|
42,275
|
|
40,985
|
|
|
|
|
|
|
|
|
|
|
|
|
Eltek
Ltd.
|
Unaudited Non-GAAP
EBITDA Reconciliations
|
(In thousands
US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
Income
|
|
2,147
|
|
1,004
|
|
5,022
|
|
2,389
|
|
Add back
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income,
net
|
|
(279)
|
|
(55)
|
|
(756)
|
|
(787)
|
|
Income tax
expenses
|
|
442
|
|
176
|
|
1,027
|
|
520
|
|
Depreciation and
amortization
|
|
299
|
|
325
|
|
929
|
|
1,205
|
|
Non-GAAP
EBITDA
|
|
2,609
|
|
1,450
|
|
6,222
|
|
3,327
|
|
Eltek
Ltd.
|
Consolidated
Statement of Cash flow
|
(Unaudited, in
thousands US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
2,147
|
|
1,004
|
|
5,022
|
|
2,389
|
Adjustments to
reconcile net income to net cash flows
|
|
|
|
|
|
|
|
|
provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
299
|
|
325
|
|
929
|
|
1,205
|
Stock-based
compensation
|
|
72
|
|
71
|
|
216
|
|
188
|
Decrease in deferred
tax assets and long term tax receivable
|
|
432
|
|
170
|
|
998
|
|
499
|
|
|
803
|
|
566
|
|
2,143
|
|
1,892
|
|
|
|
|
|
|
|
|
|
Decrease (increase) in
operating lease right-of-use assets
|
|
-
|
|
12
|
|
(22)
|
|
8
|
Decrease (increase) in
trade receivables
|
|
985
|
|
(1,208)
|
|
(799)
|
|
(3,488)
|
Decrease (increase) in
other receivables and prepaid expenses
|
|
87
|
|
311
|
|
(224)
|
|
393
|
Decrease (increase) in
inventories
|
|
(47)
|
|
382
|
|
(856)
|
|
(340)
|
Increase (decrease) in
trade payables
|
|
(74)
|
|
371
|
|
31
|
|
1,143
|
Increase (decrease) in
other liabilities and accrued expenses
|
|
(263)
|
|
277
|
|
1,214
|
|
566
|
Increase
(decrease) in employee severance benefits, net
|
|
11
|
|
11
|
|
33
|
|
11
|
|
|
699
|
|
156
|
|
(623)
|
|
(1,707)
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
3,649
|
|
1,726
|
|
6,542
|
|
2,574
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchase of fixed
assets
|
|
(475)
|
|
(1,841)
|
|
(1,186)
|
|
(2,456)
|
Insurance
Proceeds
|
|
-
|
|
-
|
|
2,000
|
|
-
|
Restricted
deposits
|
|
-
|
|
-
|
|
192
|
|
(2)
|
Net cash provided by
(used in) investing activities
|
|
(475)
|
|
(1,841)
|
|
1,006
|
|
(2,458)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Exercise of
options
|
|
29
|
|
-
|
|
328
|
|
25
|
Repayment of long-term
loans from bank
|
|
-
|
|
(181)
|
|
(3,348)
|
|
(432)
|
Repayment of credit
from fixed asset payables
|
|
-
|
|
(3)
|
|
-
|
|
(10)
|
Net cash provided by
(used in) financing activities
|
|
29
|
|
(184)
|
|
(3,020)
|
|
(417)
|
|
|
|
|
|
|
|
|
|
Effect of translation
adjustments
|
|
(228)
|
|
(100)
|
|
(589)
|
|
(1,135)
|
|
|
|
|
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents
|
|
2,975
|
|
(399)
|
|
3,939
|
|
(1,436)
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the beginning of the period
|
|
8,330
|
|
8,246
|
|
7,366
|
|
9,283
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period
|
|
11,305
|
|
7,847
|
|
11,305
|
|
7,847
|
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SOURCE Eltek Ltd.