NETANYA, Israel, May 22, 2024
/PRNewswire/ -- TAT Technologies Ltd. (NASDAQ: TATT) (TASE: TATT)
("TAT" or the "Company"), a leading provider of products and
services to the commercial and military aerospace and ground
defense industries, reported today its unaudited results for the
three-month period ended March 31,
2024.
Financial highlights for the first quarter of
2024:
- Revenues for Q1 2024 increased by 35.3% to $34.1 million compared to $25.2 million in Q1 2023.
- Gross profit for Q1 2024 increased by 65.1% to
$7.1 million compared to $4.3 million in Q1 2023.
- Gross Margin for Q1 2024 improved by 3.8bp to 20.7% of
revenues, compared to 16.9% of revenues in Q1 2023.
- Adjusted EBITDA for Q1 2024 increased by 76.8% to
$3.7 million (10.8% of Revenues)
compared to $2.08 million (8.25% of
revenues) in Q1 2023.
- Operating Income for Q1 2024 increased by 133% to
$2.2 million (6.5% of Revenues)
compared to $0.95 million (3.8% of
revenues) in Q1 2023.
- Net income for Q1 2024 increased by 221% to $2.1 million compared to a net Income of
$0.6 million in Q1 2023.
- Cash flow from Operating activities was negative
$3.5 million in Q1 2024 compared to
positive $1.7 million in Q1
2023.
Mr. Igal Zamir, TAT's CEO and President commented on the
results: "The first quarter of 2024 marked the
seventh straight quarter of Revenue and EBITDA growth,
demonstrating consistent demand for our solutions and the
sustainability of our business model.
As we grow our business and further scale our capacity to meet
near-term demand, we are prioritizing operational efficiency to
reduce backorders, better navigate industry wide supply chain
dynamics, improve customer satisfaction and maximize our
profitability.
During the first quarter we secured orders and long-term
agreements at a value of over $40
million, increasing our backlog and LTA Value of over
$410 million. This strength will
drive continued momentum in our business and support our revenue
growth plan for the rest of 2024 and for years to come."
Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in
accordance with GAAP, the Company also presents Adjusted
EBITDA. The adjustments to the Company's GAAP results are
made with the intent of providing both management and investors a
more complete understanding of the Company's underlying operational
results, trends and performance. Adjusted EBITDA is calculated as
net income excluding the impact of: the Company's share in results
of affiliated companies, share-based compensation, taxes on income,
financial (expenses) income, net, and depreciation and
amortization. Adjusted EBITDA, however, should not be considered as
alternative to net income and operating income for the period and
may not be indicative of the historic operating results of the
Company; nor it is meant to be predictive of potential future
results. Adjusted EBITDA is not measure of financial performance
under generally accepted accounting principles and may not be
comparable to other similarly titled measures for other companies.
See reconciliation of Adjusted EBITDA below.
About TAT Technologies LTD
TAT Technologies Ltd. is a leading provider of services and
products to the commercial and military aerospace and ground
defense industries. TAT operates under four segments: (i) Original
equipment manufacturing ("OEM") of heat transfer solutions and
aviation accessories through its Gedera facility; (ii) MRO services
for heat transfer components and OEM of heat transfer solutions
through its Limco subsidiary; (iii) MRO services for aviation
components through its Piedmont subsidiary; and (iv) Overhaul and
coating of jet engine components through its Turbochrome
subsidiary. TAT controlling shareholders is the FIMI Private Equity
Fund.
TAT's activities in the area of OEM of heat transfer solutions
and aviation accessories primarily include the design, development
and manufacture of (i) broad range of heat transfer solutions, such
as pre-coolers heat exchangers and oil/fuel hydraulic heat
exchangers, used in mechanical and electronic systems on board
commercial, military and business aircraft; (ii) environmental
control and power electronics cooling systems installed on board
aircraft in and ground applications; and (iii) a variety of other
mechanical aircraft accessories and systems such as pumps, valves,
and turbine power units.
TAT's activities in the area of MRO Services for heat transfer
components and OEM of heat transfer solutions primarily include the
MRO of heat transfer components and to a lesser extent, the
manufacturing of certain heat transfer solutions. TAT's Limco
subsidiary operates an FAA-certified repair station, which provides
heat transfer MRO services for airlines, air cargo carriers,
maintenance service centers and the military.
TAT's activities in the area of MRO services for aviation
components include the MRO of APUs, landing gears and other
aircraft components. TAT's Piedmont subsidiary operates an
FAA-certified repair station, which provides aircraft component MRO
services for airlines, air cargo carriers, maintenance service
centers and the military.
TAT's activities in the area of overhaul and coating of jet
engine components includes the overhaul and coating of jet engine
components, including turbine vanes and blades, fan blades,
variable inlet guide vanes and afterburner flaps.
For more information of TAT Technologies Ltd., please visit our
web-site:
www.tat-technologies.com
Contact:
Mr. Eran
Yunger
Director of IR
erany@tat-technologies.com
Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements which
include, without limitation, statements regarding possible or
assumed future operation results. These statements are hereby
identified as "forward-looking statements" for purposes of the safe
harbor provided by the Private Securities Litigation Reform Act of
1995. These forward-looking statements involve risks and
uncertainties that could cause our results to differ materially
from management's current expectations. Actual results and
performance can also be influenced by other risks that we face in
running our operations including, but are not limited to, general
business conditions in the airline industry, changes in demand for
our services and products, the timing and amount or cancellation of
orders, [LTAs] and backlog, the price and continuity of supply of
component parts used in our operations, and other risks detailed
from time to time in the Company's filings with the Securities
Exchange Commission, including, its annual report on form 20-F and
its periodic reports on form 6-K. These documents contain and
identify other important factors that could cause actual results to
differ materially from those contained in our projections or
forward-looking statements. Shareholders and other readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date on which they are made.
We undertake no obligation to update publicly or revise any
forward-looking statement.
|
TAT TECHNOLOGIES
AND ITS SUBSIDIARIES
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEET
|
|
|
(In
thousands)
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2024
|
|
2023
|
|
|
(unaudited)
|
|
(audited)
|
|
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
8,973
|
|
$
15,979
|
|
|
Accounts receivable,
net of allowance for credit losses of $345
and $345
thousand as of March 31, 2024 and December 31, 2023
respectively
|
20,829
|
|
20,009
|
|
|
Restricted
deposit
|
139
|
|
661
|
|
|
Other current assets
and prepaid expenses
|
6,578
|
|
6,397
|
|
|
|
|
|
|
|
Inventory
|
53,857
|
|
51,280
|
|
|
|
|
|
|
|
Total current
assets
|
90,376
|
|
94,326
|
|
|
|
|
|
|
|
NON-CURRENT
ASSETS:
|
|
|
|
|
|
Restricted
deposit
|
161
|
|
302
|
|
|
Investment in
affiliates
|
2,366
|
|
2,168
|
|
|
Funds in respect of
employee rights upon retirement
|
659
|
|
664
|
|
|
Deferred income
taxes
|
1,403
|
|
994
|
|
|
Property, plant and
equipment, net
|
41,318
|
|
42,554
|
|
|
Operating lease right
of use assets
|
2,911
|
|
2,746
|
|
|
Intangible assets,
net
|
1,755
|
|
1,823
|
|
|
|
|
|
|
|
Total non-current
assets
|
50,573
|
|
51,251
|
|
|
Total
assets
|
$
140,949
|
|
$
145,577
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Current maturities of
long-term loans
|
$
1,996
|
|
$
2,200
|
|
|
Credit line from
bank
|
8,027
|
|
12,138
|
|
|
Accounts
payable
|
9,288
|
|
9,988
|
|
|
Accrued
expenses
|
12,381
|
|
13,952
|
|
|
Operating lease
liabilities
|
1,134
|
|
1,033
|
|
|
|
|
|
|
|
Total current
liabilities
|
32,826
|
|
39,311
|
|
|
|
|
|
|
|
NON CURRENT
LIABILITIES:
|
|
|
|
|
|
Long-term loans
|
12,547
|
|
12,886
|
|
|
Liability in respect of
employee rights upon retirement
|
1,003
|
|
1,000
|
|
|
Operating lease
liabilities
|
1,765
|
|
1,697
|
|
|
|
|
|
|
|
Total
non-current liabilities
|
15,315
|
|
15,583
|
|
|
Total
liabilities
|
$
48,141
|
|
$
54,894
|
|
|
EQUITY:
|
|
|
|
|
|
Share
capital
|
3,141
|
|
3,140
|
|
|
Additional paid-in
capital
|
76,376
|
|
76,335
|
|
|
Treasury stock at
cost
|
(2,088)
|
|
(2,088)
|
|
|
Accumulated other
comprehensive income
|
|
|
27
|
|
|
Retained
earnings
|
15,379
|
|
13,269
|
|
|
Total shareholders'
equity
|
92,808
|
|
90,683
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
140,949
|
|
$
145,577
|
|
|
TAT TECHNOLOGIES AND
ITS SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
|
(In thousands, except
share and per share data)
|
|
|
Three months
ended
|
Year
ended
|
|
March
31,
|
December
31,
|
|
2024
|
|
2023
|
2023
|
|
(Unaudited)
|
|
(Unaudited)
|
(Audited)
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
Products
|
$
11,935
|
|
$
7,291
|
$
35,241
|
|
Services
|
22,153
|
|
17,926
|
78,553
|
|
34,088
|
|
25,217
|
113,794
|
|
|
|
|
|
|
Cost of
goods:
|
|
|
|
|
|
Products
|
8,986
|
|
6,274
|
30,517
|
|
Services
|
18,036
|
|
14,685
|
60,809
|
|
27,022
|
|
20,959
|
91,326
|
|
Gross Profit
|
7,066
|
|
4,258
|
22,468
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Research and
development, net
|
277
|
|
99
|
715
|
|
Selling and
marketing
|
1,660
|
|
1,159
|
5,523
|
|
General and
administrative
|
3,309
|
|
2,459
|
10,588
|
|
Other income
|
(388)
|
|
(406)
|
(433)
|
|
4,858
|
|
3,311
|
16,393
|
|
|
|
|
|
|
Operating
income
|
2,208
|
|
948
|
6,075
|
|
|
|
|
|
|
Interest
expenses
|
(343)
|
|
(366)
|
(1,683)
|
|
Other financial income
(expenses), net
|
(106)
|
|
(19)
|
353
|
|
|
|
|
|
|
Income before taxes on
income (tax benefit)
|
1,759
|
|
563
|
4,745
|
|
|
|
|
|
|
Taxes on income (tax
benefit)
|
(153)
|
|
(27)
|
576
|
|
|
|
|
|
|
Income before share of
equity investment
|
1,912
|
|
590
|
4,169
|
|
|
|
|
|
|
Profit of equity
investment of affiliated companies
|
198
|
|
68
|
503
|
|
Net income
|
$ 2,110
|
|
$ 658
|
$
4,672
|
|
|
|
|
|
|
Basic and diluted
income per share
|
|
|
|
|
|
Net income per share
basic
|
$ 0.20
|
|
$ 0.074
|
$
0.52
|
|
Net income per share
diluted
|
$
0.19
|
|
$ 0.074
|
$
0.51
|
|
|
|
|
|
|
Weighted average number
of shares outstanding :
|
|
|
|
|
|
Basic
|
10,378,978
|
|
8,911,546
|
8,961,689
|
|
Diluted
|
10,554,351
|
|
8,911,546
|
9,084,022
|
|
TAT TECHNOLOGIES AND
ITS SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
|
(In
thousands)
|
|
|
|
|
Three months
ended
|
Year
ended
|
|
March
31,
|
December
31,
|
|
2024
|
2023
|
2023
|
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|
|
|
|
|
Net income
|
$
2,110
|
$
658
|
$
4,672
|
|
Other comprehensive
income (loss)
|
|
|
|
|
Net unrealized losses
from derivatives
|
(27)
|
-
|
53
|
|
Total
comprehensive income
|
$
2,083
|
$
658
|
$
4,725
|
|
TAT TECHNOLOGIES AND
ITS SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
|
|
(In thousands, except
share data)
|
|
|
Share
capital
|
|
Accumulated
|
|
|
|
|
Number of shares
issued
|
Amount
|
Additional paid-in
capital
|
other comprehensive
income (loss)
|
Treasury
shares
|
Retained
earnings
|
Total
equity
|
|
|
|
|
|
|
|
|
|
BALANCE AT DECEMBER
31, 2021
|
9,149,169
|
$ 2,809
|
$
65,871
|
$
33
|
$
(2,088)
|
$
10,159
|
$
76,784
|
|
CHANGES DURING THE
YEAR ENDED
DECEMBER 31, 2022:
|
|
|
|
|
|
|
|
|
Comprehensive
loss
|
-
|
-
|
-
|
(59)
|
-
|
(1,562)
|
(1,621)
|
|
Exercise of
option
|
36,850
|
33
|
156
|
-
|
-
|
-
|
189
|
|
Share based
compensation
|
-
|
-
|
218
|
-
|
-
|
-
|
218
|
|
BALANCE AT DECEMBER
31, 2022
|
9,186,019
|
$
2,842
|
$
66,245
|
$
(26)
|
$
(2,088)
|
$
8,597
|
$
75,570
|
|
CHANGES DURING THE
YEAR ENDED
DECEMBER 31,
2023:
|
|
|
|
|
|
|
|
|
Comprehensive
loss
|
-
|
-
|
-
|
53
|
-
|
4,672
|
4,725
|
|
Exercise of
option
|
32,466
|
8
|
157
|
-
|
-
|
-
|
165
|
|
Issuance of common
shares net of issuance costs of $141
thousands
|
1,158,600
|
290
|
9,774
|
-
|
-
|
-
|
10,064
|
|
Share based
compensation
|
-
|
-
|
159
|
-
|
-
|
-
|
159
|
|
BALANCE AT DECEMBER
31, 2023
|
10,377,085
|
$
3,140
|
$ 76,335
|
$
27
|
$
(2,088)
|
$
13,269
|
$
90,683
|
|
CHANGES DURING THE
PERIOD ENDED
MARCH 31, 2024 (unaudited):
|
|
|
|
|
|
|
|
|
Comprehensive
profit
|
-
|
-
|
-
|
(27)
|
-
|
2,110
|
2,083
|
|
Exercise of
option
|
5,552
|
1
|
-
|
-
|
-
|
-
|
1
|
|
Share based
compensation
|
-
|
-
|
41
|
-
|
-
|
-
|
41
|
|
BALANCE AT MARCH 31,
2024 (unaudited)
|
10,382,637
|
$
3,141
|
$ 76,376
|
$
0
|
$
(2,088)
|
$
15,379
|
$
92,808
|
|
TAT TECHNOLOGIES AND
ITS SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In
thousands)
|
|
|
Three months
ended
|
Year
ended
|
|
March
31,
|
December
31,
|
|
2024
|
2023
|
2023
|
|
(Unaudited)
|
(Unaudited)
|
(audited)
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net income (loss) from
continued operations
|
$ 2,110
|
$ 658
|
$ 4,672
|
|
|
|
|
|
Adjustments to
reconcile net income (loss) to net cash provided
by (used in) operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
1,374
|
1,041
|
4,710
|
|
Loss (gain) from change
in fair value of derivatives
|
22
|
-
|
(9)
|
|
Change in funds in
respect of employee rights upon retirement
|
5
|
70
|
116
|
|
Change in operating
right of use asset and operating leasing liability
|
4
|
(6)
|
22
|
|
Non-cash financial
expenses
|
(214)
|
(115)
|
(172)
|
|
Decrease in
restructuring plan provision
|
(20)
|
(58)
|
(126)
|
|
Change in allowance for
credit losses
|
-
|
(3)
|
(182)
|
|
Share in results of
affiliated companies
|
(198)
|
(68)
|
(503)
|
|
Share based
compensation
|
41
|
90
|
159
|
|
Liability in respect of
employee rights upon retirement
|
3
|
(79)
|
(148)
|
|
Capital gain from sale
of property, plant and equipment
|
(354)
|
(456)
|
(530)
|
|
Deferred income taxes,
net
|
(409)
|
22
|
235
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Increase in trade accounts receivable
|
(820)
|
(2,012)
|
(4,205)
|
|
Decrease (increase) in other current assets and prepaid
expenses
|
(181)
|
1,135
|
(341)
|
|
Decrease (increase) in inventory
|
(2,637)
|
2,959
|
(5,400)
|
|
Decrease in trade accounts payable
|
(700)
|
(1,121)
|
(245)
|
|
Increase (decrease) in accrued expenses and other
|
(1,573)
|
(290)
|
4,202
|
|
Net cash provided by
(used in) operating activities from
continued operation
|
$
(3,547)
|
$
1,767
|
$ 2,255
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Proceeds from sale of
property and equipment
|
1,306
|
1,560
|
2,002
|
|
Purchase of property
and equipment
|
(989)
|
(1,433)
|
(5,102)
|
|
Purchase of intangible
assets
|
-
|
-
|
(479)
|
|
Net cash used in
investing activities from continued operations
|
$ 317
|
$127
|
$ (3,579)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Repayments of long-term
loans
|
(440)
|
(422)
|
(1,701)
|
|
Short-term credit
received (repayment) from banks
|
(4,000)
|
-
|
1,000
|
|
Proceeds from long-term
loans received
|
-
|
-
|
712
|
|
Proceeds from issuance
of common shares, net
|
-
|
-
|
10,064
|
|
Exercise of
options
|
1
|
-
|
165
|
|
Net cash provided by
financing activities from continued operations
|
$
(4,439)
|
$
(422)
|
$ 10,240
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents and
restricted cash
|
(7,669)
|
1,472
|
8,916
|
|
Cash and cash
equivalents and restricted cash at beginning of
period
|
16,942
|
8,026
|
8,026
|
|
|
|
|
|
Cash and cash
equivalents and restricted cash at the end of period
|
$
9,273
|
$ 9,498
|
$ 16,942
|
|
|
|
|
|
SUPPLEMENTARY
INFORMATION ON INVESTING
ACTIVITIES NOT INVOLVING CASH FLOW:
|
|
|
|
|
Additions of operating
lease right-of-use assets and operating lease
liabilities
|
345
|
-
|
1,345
|
|
Reclassification of
inventory to property, plant and equipment
|
60
|
-
|
68
|
|
Supplemental disclosure
of cash flow information:
|
|
|
|
|
|
|
|
|
Interest
paid
|
(442)
|
-
|
(1,438)
|
|
TAT TECHNOLOGIES AND
ITS SUBSIDIARIES
|
|
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
(NON-GAAP) (UNAUDITED)
|
|
(In
thousands)
|
|
|
Three months
ended
|
Year
ended
|
|
March
31,
|
December
31,
|
|
2024
|
2023
|
2023
|
|
|
|
|
|
|
|
|
|
Net income
(Loss)
|
$
2,110
|
$
658
|
$
4,672
|
|
Adjustments:
|
|
|
|
|
|
|
Taxes on income (tax
benefit)
|
(153)
|
(27)
|
576
|
|
Financial expense/
(income), net
|
449
|
385
|
1,330
|
|
Depreciation and
amortization
|
1,428
|
1,041
|
4,902
|
|
Share based
compensation
|
41
|
90
|
159
|
|
Share in results and
sale of equity
investment of affiliated companies
|
(198)
|
(68)
|
(503)
|
|
Adjusted
EBITDA
|
$
3,677
|
$
2,079
|
$
11,136
|
View original
content:https://www.prnewswire.com/news-releases/tat-technologies-reports-first-quarter-2024-results-302153440.html
SOURCE TAT Technologies Ltd.
