PETACH TIKVA, Israel, May 21, 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 quarter ended March 31,
2024.
First Quarter 2024 Highlights
- Revenues were $11.8 million, up
3% over Q1 2023
- Operating profit was $1.7
million, up 8% over Q1 2023
- Net income was $1.7 million or
$0.27 per fully diluted share, up 11%
over Q1 2023
- Net cash provided by operating activities amounted to
$1.3 million.
"We have ended another successful quarter with net income of
$1.74 million, compared to
$1.56 million in the first quarter of
2023, an increase of 11%. Revenues reached $11.8 million, marking a 3% rise compared to the
same period last year. These results are the outcome of our
continuous investment in increasing efficiency and quality. We have
seen a consistent uptrend in both product orders and requests for
quotations during the quarter. Recently, we secured a repeat order
worth $1.6 million from a defense
client for PCB supply, with $1
million due by the end of 2024 and the remainder by the end
of 2025. We anticipate sustained high demand in the defense sector,
for the next 2-3 years. Our current principal production constraint
lies in manpower and not in machine capacity. To manage this
increased demand for our products, we're actively seeking to boost
our workforce by 15% in the short term and an additional 10%
thereafter," said Eli Yaffe, CEO of
Eltek.
"Looking ahead to 2024 and 2025, we anticipate significant
challenges as we undertake extensive construction work and
integrate additional new production lines and machines. Our focus
is on ensuring the smooth installation of new equipment while
sustaining full production capacity on our existing lines. Despite
a slight delay of several months in our investment program, our
progress remains steady, with the successful installation of the
first of three ordered coating lines during the
quarter," continued Mr. Yaffe.
"We continue to seek a suitable PCB manufacturing company to
acquire in the American market to enhance our presence in
North America. Concurrently, we
are exploring additional options for expanding production at our
plant in Israel to support our
growth strategy," concluded Mr. Yaffe.
First Quarter 2024 GAAP Financial
Results
- Revenues for the first quarter of 2024 were
$11.8 million, compared to
$11.5 million in the first quarter of
2023;
- Gross profit for the first quarter of 2024 was
$3.3 million (28% of revenues)
compared to $3.0 (26% of revenues) in
the first quarter of 2023;
- Operating profit for the first quarter of 2024 was
$1.7 million compared to operating
profit of $1.6 million in the first
quarter of 2023;
- Net income for the first quarter of 2024 was
$1.7 million or $0.27 per fully diluted share compared to net
income of $1.6 million or
$0.27 per fully diluted share in the
first quarter of 2023;
- Cash and short-term bank deposits amounted to
$19.9 million as of March 31, 2024, with no outstanding debt.
First Quarter 2024 Non-GAAP Financial Results
EBITDA for the first quarter of 2024 was $2.1 million (18% of revenues) compared to EBITDA
of $1.9 million (17% of revenues) in
the first quarter of 2023;
Conference Call
Today, Tuesday, May 21, 2024, 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
|
Eltek
Ltd.
|
|
Consolidated
Statements of Income
|
|
U.S. dollars in
thousands (except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
11,783
|
|
11,470
|
|
|
|
|
|
|
Costs of
revenues
|
|
(8,531)
|
|
(8,455)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
3,252
|
|
3,015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development, expenses, net
|
|
(15)
|
|
(9)
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
(1,516)
|
|
(1,417)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
1,721
|
|
1,589
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income,
net
|
|
350
|
|
287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
2,071
|
|
1,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expenses
|
|
332
|
|
314
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
1,739
|
|
1,562
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
ordinary share
|
|
0.27
|
|
0.27
|
|
|
|
|
|
|
Diluted net income per
ordinary share
|
|
0.27
|
|
0.27
|
|
|
|
|
|
|
Weighted average number
of ordinary shares used to compute
|
|
|
|
|
|
|
|
|
|
|
basic net income per
ordinary share (in thousands)
|
|
6,376
|
|
5,850
|
|
|
|
|
|
|
Weighted average number
of ordinary shares used to compute
|
|
|
|
|
|
|
|
|
|
|
diluted net income per
ordinary share (in thousands)
|
|
6,491
|
|
5,852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eltek Ltd.
|
|
Consolidated Balance Sheets
|
|
U.S. dollars in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
10,610
|
|
9,278
|
|
|
|
|
|
|
Short-term bank
deposits
|
|
9,264
|
|
2,862
|
|
|
|
|
|
|
Receivables: Trade, net of provision for
doubtful accounts
|
|
9,977
|
|
10,898
|
|
|
|
|
|
|
Other
|
|
471
|
|
689
|
|
|
|
|
|
|
Inventories
|
|
6,420
|
|
6,135
|
|
|
|
|
|
|
Prepaid
expenses
|
|
372
|
|
245
|
|
|
|
|
|
|
Total current
assets
|
|
37,114
|
|
30,107
|
|
|
|
|
|
|
Long term
assets:
|
|
|
|
|
|
|
|
|
|
|
Severance pay
fund
|
|
56
|
|
57
|
|
|
|
|
|
|
Deferred tax assets and
long term tax receivables, net
|
|
889
|
|
1,098
|
|
|
|
|
|
|
Operating lease right
of use assets
|
|
6,280
|
|
6,555
|
|
|
|
|
|
|
Total long term
assets
|
|
7,225
|
|
7,710
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed assets, less
accumulated depreciation
|
|
10,996
|
|
9,354
|
|
|
|
|
|
|
Total
Assets
|
|
55,335
|
|
47,171
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholder's equity
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts payable:
Trade
|
|
5,343
|
|
7,503
|
|
|
|
|
|
|
Other
|
|
5,389
|
|
5,689
|
|
|
|
|
|
|
Short-term operating
lease liabilities
|
|
778
|
|
789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
11,510
|
|
13,981
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
|
|
|
Employee severance
benefits
|
|
457
|
|
447
|
|
|
|
|
|
|
Long-term operating
lease liabilities
|
|
5,606
|
|
5,871
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total long-term
liabilities
|
|
6,063
|
|
6,318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares, NIS
3.0 par value authorized 10,000,000 shares, issued and
outstanding 6,704,830
at March 31, 2024 and 6,020,693 at December 31,
2023
Additional paid-in
capital
|
|
6,003
|
|
5,443
|
|
|
|
|
|
|
32,584
|
|
23,587
|
|
|
|
|
|
|
Cumulative foreign
currency translation adjustments
|
|
245
|
|
783
|
|
|
|
|
|
|
Capital
reserve
|
|
2,032
|
|
1,900
|
|
|
|
|
|
|
Accumulated
deficit
|
|
(3,102)
|
|
(4,841)
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
37,762
|
|
26,872
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
55,335
|
|
47,171
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eltek
Ltd.
|
|
|
Unaudited Non-GAAP
EBITDA Reconciliations
|
|
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
Income
|
|
1,739
|
|
1,562
|
|
|
|
|
|
|
Add back
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income,
net
|
|
(350)
|
|
(287)
|
|
|
|
|
|
|
Income tax
expenses
|
|
332
|
|
314
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
365
|
|
329
|
|
|
|
|
|
|
Non-GAAP
EBITDA
|
|
2,086
|
|
1,918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eltek
Ltd.
|
|
Consolidated
Statements of Cash Flows
|
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
1,739
|
|
1,562
|
|
|
|
|
|
|
Adjustments to
reconcile net income to net cash flows
|
|
|
|
|
|
|
|
|
|
|
provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
365
|
|
329
|
|
|
|
|
|
|
Stock-based
compensation
|
|
132
|
|
72
|
|
|
|
|
|
|
Decrease in deferred
tax assets and long term tax receivable
|
|
322
|
|
306
|
|
|
|
|
|
|
|
819
|
|
707
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease (increase) in
operating lease right-of-use assets
|
|
1
|
|
(33)
|
|
|
|
|
|
|
Decrease (increase) in
trade receivables
|
|
736
|
|
112
|
|
|
|
|
|
|
Decrease (increase) in
other receivables and prepaid expenses
|
|
75
|
|
(525)
|
|
|
|
|
|
|
Decrease (increase) in
inventories
|
|
(396)
|
|
(313)
|
|
|
|
|
|
|
Increase (decrease) in
trade payables
|
|
(1,491)
|
|
412
|
|
|
|
|
|
|
Increase (decrease) in
other liabilities and accrued expenses
|
|
(201)
|
|
847
|
|
|
|
|
|
|
Increase
(decrease) in employee severance benefits, net
|
|
18
|
|
5
|
|
|
|
|
|
|
|
(1,258)
|
|
505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
1,300
|
|
2,774
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
Purchase of fixed
assets
|
|
(2,731)
|
|
(305)
|
|
|
|
|
|
|
Investment in
short-term bank deposits, net
|
|
(6,490)
|
|
-
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
(9,221)
|
|
(305)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
Exercise of
options
|
|
246
|
|
-
|
|
|
|
|
|
|
Repayment of long-term
loans from bank
|
|
-
|
|
(1,580)
|
|
|
|
|
|
|
Issuance of shares,
net
|
|
9,180
|
|
-
|
|
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
|
9,426
|
|
(1,580)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of translation
adjustments
|
|
(173)
|
|
(196)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents
|
|
1,332
|
|
693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the beginning of the period
|
|
9,278
|
|
7,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period
|
|
10,610
|
|
8,059
|
|
|
|
|
|
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content:https://www.prnewswire.com/news-releases/eltek-ltd-reports-2024-first-quarter-financial-results-302151122.html
SOURCE Eltek Ltd.