PETACH TIKVA, Israel, May 18, 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 March 31, 2023.
First Quarter 2023 Highlights
- Revenues were $11.5 million, 18%
up over Q1 2022
- Operating profit was $1.6
million, 144% up over Q1 2022
- Profit before tax was $1.9
million (2022 Q1 - $0.8
million)
- Net income was $1.6 million
or $0.27 per fully diluted share,
147% up over Q1 2022
- Net cash provided by operating activities amounted to
$2.8 million
"Eltek is proud to announce its strong first quarter results for
2023, with growth of 18% in sales compared to the same quarter last
year, and an impressive 147% increase in net income. These results
are a testament to the success of the Company's strategy to invest
in innovative equipment to increase production volumes, and an
unwavering commitment to product quality to meet customer
satisfaction and provide technological solutions for every
customer's needs. As of today our backlog increased 10% from
the beginning of the year.
Our strong cash flows from operating activities in the first
quarter of $2.8 million allowed us to
repay $1.6 of our long-term debt and
consequently lower our interest expenses, given the current high
rates," said Eli Yaffe, CEO of
Eltek.
"Throughout the quarter, we continued to execute on our
accelerated investment plan and ordered three new plating lines
valued at 5.5 million Euros. The
deployment of these coating lines is scheduled for the latter half
of 2023, 2024 and 2025, which will enable the simultaneous
additional enhancement of production capacity, efficiency, and
diversification of our product offerings," continued Mr.
Yaffe.
"Concurrently with our accelerated investment plan, we are also
allocating resources towards acquiring additional machinery and
equipment, as well as enhancing our manufacturing procedures. These
endeavors supported the increase in both revenues and net income,
resulting in our quarterly net income of $1.6 million," concluded Mr. Yaffe.
First Quarter 2023 GAAP Financial Results
Revenues for the first quarter of 2023 were
$11.5 million, compared to
$9.8 million in the first quarter of
2022;
Gross profit for the first quarter of 2023 was
$3.0 million (26% of revenues)
compared to $2.0 (20% of revenues) in
the first quarter of 2022;
Operating profit for the first quarter of 2023 was
$1.6 million compared to operating
profit of $0.7 million in the first
quarter of 2022;
Profit before income tax for the first quarter of
2023 was $1.9 million compared to
$0.8 million in the first quarter of
2022;
Net income for the first quarter of 2023 was
$1.6 million or $0.27 per fully diluted share compared to net
income of $0.6 million or
$0.11 per fully diluted share in the
first quarter of 2022;
First Quarter 2023 Non-GAAP Financial Results
EBITDA for the first quarter of 2023 was $1.9 million (17% of revenues) compared to EBITDA
of $1.1 million (11% of revenues) in
the first quarter of 2022.
Conference Call
Today, Thursday, May 18, 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.
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
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
11,470
|
|
9,755
|
|
|
|
|
|
Costs of
revenues
|
|
(8,455)
|
|
(7,794)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
3,015
|
|
1,961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
(1,417)
|
|
(1,293)
|
|
|
|
|
|
R&D expenses,
net
|
|
(9)
|
|
(17)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
1,589
|
|
651
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income,
net
|
|
287
|
|
121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before income
tax
|
|
1,876
|
|
772
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax expenses
|
|
314
|
|
140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
1,562
|
|
632
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
Basic net income per
ordinary share
|
|
0.27
|
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per
ordinary share
|
|
0.27
|
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of ordinary shares used to compute
|
|
|
|
|
|
|
|
|
|
basic net income per
ordinary share (in thousands)
|
|
5,850
|
|
5,843
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of ordinary shares used to compute
|
|
|
|
|
|
|
|
|
|
diluted net income per
ordinary share (in thousands)
|
|
5,852
|
|
5,843
|
|
|
|
|
|
Eltek
Ltd.
|
Consolidated Balance
Sheets
|
(In thousands
US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
8,059
|
|
7,366
|
|
|
|
|
|
Receivables: Trade, net of provision for
doubtful accounts
|
|
9,761
|
|
10,116
|
|
|
|
|
|
Other
|
|
675
|
|
282
|
|
|
|
|
|
Inventories
|
|
5,307
|
|
5,130
|
|
|
|
|
|
Prepaid
expenses
|
|
615
|
|
504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
24,417
|
|
23,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long term
assets:
|
|
|
|
|
|
|
|
|
|
Restricted
deposits
|
|
198
|
|
202
|
|
|
|
|
|
Severance pay
fund
|
|
57
|
|
59
|
|
|
|
|
|
Deferred tax assets and
long term tax receivables, net
|
|
2,124
|
|
2,496
|
|
|
|
|
|
Operating lease right
of use assets
|
|
7,050
|
|
7,693
|
|
|
|
|
|
Total long term
assets
|
|
9,429
|
|
10,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed assets, less
accumulated depreciation
|
|
7,345
|
|
7,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
41,191
|
|
41,522
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholder's equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
Short-term credit and
current maturities of long-term debts
|
|
281
|
|
702
|
|
|
|
|
|
Accounts payable:
Trade
|
|
4,977
|
|
4,793
|
|
|
|
|
|
Other
|
|
4,871
|
|
4,133
|
|
|
|
|
|
Short-term operating
lease liabilities
|
|
849
|
|
846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
10,978
|
|
10,474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
|
|
Long term debt,
excluding current maturities
|
|
1,565
|
|
2,768
|
|
|
|
|
|
Employee severance
benefits
|
|
278
|
|
280
|
|
|
|
|
|
Long-term operating
lease liabilities
|
|
6,297
|
|
6,980
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total long-term
liabilities
|
|
8,140
|
|
10,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
Ordinary shares, NIS
3.0 par value authorized 10,000,000 shares, issued
and outstanding 5,849,678 at March 31, 2023 and December 31,
2022
|
|
5,305
|
|
5,305
|
|
|
|
|
|
Additional paid-in
capital
|
|
22,862
|
|
22,862
|
|
|
|
|
|
Cumulative foreign
currency translation adjustments
|
|
608
|
|
1,189
|
|
|
|
|
|
Capital
reserve
|
|
1,609
|
|
1,537
|
|
|
|
|
|
Accumulated
deficit
|
|
(8,311)
|
|
(9,873)
|
|
|
|
|
|
Total shareholders'
equity
|
|
22,073
|
|
21,020
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
41,191
|
|
41,522
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eltek
Ltd.
|
Unaudited Non-GAAP
EBITDA Reconciliations
|
(In thousands
US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
March
31,
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
Income
|
|
1,562
|
|
632
|
|
|
|
|
Add back
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income,
net
|
|
(287)
|
|
(121)
|
|
|
|
|
Income tax
expenses
|
|
314
|
|
140
|
|
|
|
|
Depreciation and
amortization
|
|
329
|
|
435
|
|
|
|
|
Non-GAAP
EBITDA
|
|
1,918
|
|
1,086
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eltek
Ltd.
|
Consolidated
Statements of Cash Flows
|
(In thousands
US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
1,562
|
|
632
|
|
|
|
|
|
Adjustments to
reconcile net income to net cash flows
|
|
|
|
|
|
|
|
|
|
provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
329
|
|
435
|
|
|
|
|
|
Stock-based
compensation
|
|
72
|
|
53
|
|
|
|
|
|
Decrease in deferred
tax assets and long term tax receivable
|
|
306
|
|
140
|
|
|
|
|
|
|
|
707
|
|
628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease (increase) in
operating lease right-of-use assets
|
|
(33)
|
|
4
|
|
|
|
|
|
Decrease (increase) in
trade receivables
|
|
112
|
|
(1,160)
|
|
|
|
|
|
Decrease (increase) in
other receivables and prepaid expenses
|
|
(525)
|
|
(82)
|
|
|
|
|
|
Decrease (increase) in
inventories
|
|
(313)
|
|
(674)
|
|
|
|
|
|
Increase (decrease) in
trade payables
|
|
412
|
|
485
|
|
|
|
|
|
Increase (decrease) in
other liabilities and accrued expenses
|
|
847
|
|
506
|
|
|
|
|
|
Increase
(decrease) in employee severance benefits, net
|
|
5
|
|
2
|
|
|
|
|
|
|
|
505
|
|
(919)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
2,774
|
|
341
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Purchase of fixed
assets
|
|
(305)
|
|
(289)
|
|
|
|
|
|
Net cash used in
investing activities
|
|
(305)
|
|
(289)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
Exercise of
options
|
|
-
|
|
25
|
|
|
|
|
|
Repayment of long-term
loans from bank
|
|
(1,580)
|
|
(114)
|
|
|
|
|
|
Repayment of credit
from fixed asset payables
|
|
-
|
|
(3)
|
|
|
|
|
|
Net cash used in
financing activities
|
|
(1,580)
|
|
(92)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of translation
adjustments
|
|
(196)
|
|
(189)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents
|
|
693
|
|
(229)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the beginning of the period
|
|
7,366
|
|
9,283
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period
|
|
8,059
|
|
9,054
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/eltek-ltd-reports-2023-first-quarter-financial-results-301828163.html
SOURCE Eltek Ltd.