Eltek Reports 2019 First Quarter Financial Results
-- Revenues of $8.7 million
-- Gross profit of $1.5 million
-- Net Profit of $242,000
PETACH TIKVA, Israel, May 29, 2019 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards, announced today its financial results for the quarter ended March 31, 2019.
Mr. Eli Yaffe, Chief Executive Officer, commented: "We are glad that this quarter's results reflect the implementation of the first stage of our turnaround plan, which we started during the last quarter of 2018. We continue in our efforts to further increase operating efficiencies, to improve customer satisfaction, to formulate a more effective sales strategy and continue implementing our plan to reach sustained profitability."
Highlights of the First Quarter of 2019 compared to the First Quarter of 2018
-- Revenues for the first quarter of 2019 were $8.7 million compared to
revenues of $8.9 million in the first quarter of 2018;
-- Gross profit increased from $444,000 (5.0% of revenues) in the first
quarter of 2018 to $1,539,000 (17.6% of revenues) in the first quarter
of 2019;
-- Operating profit was $433,000 as compared to an operating loss of
$626,000 in the first quarter of 2018;
-- Net profit was $242,000, or $0.12 per fully diluted share compared to a
net loss of $670,000, or ($0.33) per fully diluted share, in the first
quarter of 2018;
-- EBITDA was a $811,000 (9.3% of revenues) compared to negative EBITDA of
$185,000 (2.1% of revenues) in the first quarter of 2018;
-- Net cash provided by operating activities amounted to $1.6 million
compared to net cash used in operating activities of $859,000 in the
first quarter of 2018.
Conference Call
Today, Wednesday, May 29, 2018, at 8:30 a.m. Eastern Time, Eltek will conduct a conference call to discuss the results. The call will feature remarks by Eli Yaffe, Chief Executive Officer and Alon Mualem, Chief Financial Officer.
To participate, please call the following teleconference numbers. Please allow for additional time to connect prior to the call:
United States:
1-888-668-9141
Israel:
03-9180687
International:
+972-3-9180687
At:
8:30 a.m. Eastern Time
5:30 a.m. Pacific Time
15:30 p.m. Israel Time
A replay of the call will be available through the Investor Info section on Eltek's corporate website at http://www.nisteceltek.com approximately 24 hours after the conference call is completed and will be archived for 30 days.
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 the Israeli leader 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 subsidiaries in North America and in Europe 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.
Use of 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.
Forward Looking Statement:
Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties including, but not limited to statements regarding expected results in future quarters, 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.
(Tables follow)
Eltek Ltd.
Consolidated Statements of Operations
(In thousands US$, except per share data)
Three months
ended
March 31,
2019 2018
Revenues 8,735 8,943
Costs of
revenues (7,196) (8,499)
Gross
profit 1,539 444
Selling,
general
and
administrative
expenses (1,106) (1,069)
R&D
expenses,
net 0 (1)
Operating
profit
(loss) 433 (626)
Financial
expenses,
net (184) (27)
Other
income,
net 6 0
Profit
(loss)
before
income
tax 255 (653)
Tax
expenses (13) (17)
Net
profit
(loss) 242 (670)
Earnings per share
Basic
and
diluted
net
profit
(loss)
per
ordinary
share 0.12 (0.33)
Weighted average number of ordinary shares
used to compute basic and diluted net profit
(loss)
per
ordinary
share
(in
thousands) 2,029 2,029
Eltek Ltd.
Consolidated Balance Sheets
(In thousands US$)
March 31, December 31,
2019 2018
Assets
Current assets
Cash and cash equivalents 1,068 992
Receivables: Trade, net of
provision for doubtful accounts 5,623 5,682
Other 660 868
Inventories 4,142 3,611
Prepaid expenses 150 292
Total current assets 11,643 11,445
Long term assets
Severance pay fund 55 53
Long term prepaid expenses 112 39
Operating lease right of use
assets 3,117 -
Total long term assets 3,284 92
Fixed assets, less accumulated
depreciation 6,540 6,623
Total Assets 21,467 18,160
Liabilities and Shareholder's equity
Current liabilities
Short-term credit and current
maturities of long-term debts 4,978 6,606
Short-term credit from related
party 3,304 2,668
Accounts payable: Trade 5,000 4,108
Other 3,487 3,377
Short-term operating lease
liabilities 1,003 -
Total current liabilities 17,772 16,759
Long-term liabilities
Long term debt, excluding
current maturities 213 308
Employee severance benefits 218 211
Long-term operating lease
liabilities 2,105 -
Total long-term liabilities 2,536 519
Equity
Ordinary shares, NIS 3.0 par
value authorized 10,000,000
shares, issued and outstanding
2,028,552 1,985 1,985
Additional paid-in capital 17,270 17,270
Cumulative foreign currency
translation adjustments 2,330 2,340
Capital reserve 845 800
Accumulated deficit (21,271) (21,513)
Shareholders' equity 1,159 882
Total liabilities and
shareholders' equity 21,467 18,160
Eltek Ltd.
Unaudited Non-GAAP EBITDA Reconciliations
(In thousands US$)
Non-GAAP EBITDA Reconciliations Three months ended
March 31,
2019 2018
GAAP net income (loss) 242 (670)
Add back items:
---
Financial expenses, net 184 27
Income tax expense 13 17
Depreciation and amortization 372 441
Non-GAAP EBITDA 811 (185)
Eltek Ltd.
Unaudited Proforma Equity information
(In thousands US$)
As of March 31, 2019
As presented
As adjusted (*)
Equity
Ordinary shares 1,985 3,966
Additional paid-in capital 17,270 18,619
Cumulative foreign currency
translation adjustments 2,330 2,330
Capital reserve 845 845
Accumulated deficit (21,274) (21,274)
Shareholders' equity 1,156 4,486
(*) The proforma information
reflects on an as adjusted basis
the issuance of 2,351,701
ordinary shares
in the April 2019 rights offering
at a subscription price of $1.464
per ordinary share with aggregate
net
proceeds of approximately $3.3
million, after deducting offering
expenses.
Eltek Ltd.
Consolidated Statement of Cash flow
(In thousands US$, except per share data)
Three months ended
March 31,
2019 2018
Cash flows from operating
activities:
Net income (loss) 242 (670)
Adjustments to reconcile net
loss to net
cash flows provided by
operating activities:
Depreciation and amortization 372 441
Stock-based compensation 31
Transaction with controlling
shareholder 14
Revaluation of long term
loans (16) 16
401 457
Decrease (increase) in trade
receivables 240 (1,569)
Decrease in other receivables
and prepaid expenses 315 719
Increase in inventories (415) (585)
Increase in trade payables 846 975
Increase (decrease) in other
liabilities and accrued
expenses 4 (199)
Increase in employee
severance benefits, net 13
Changes in operating leases,
net (9)
981 (646)
Net cash provided by (used
in) operating activities 1,624 (859)
Cash flows from investing
activities:
Purchase of fixed assets (159) (80)
Net cash used in investing
activities (159) (80)
Cash flows from financing
activities:
Short- term bank credit, net (1,608) (341)
Short- term shareholder loan 549 1,156
Repayment of long-term loans
from bank (225) (237)
Proceeds from long-term
loans 0
Repayment of credit from
fixed asset payables (96) (85)
Net cash provided by (used
in) financing activities (1,380) 493
Effect of translation
adjustments (10) (6)
Net increase (decrease) in
cash and cash equivalents 75 (452)
Cash and cash equivalents at
beginning of the period 993 887
Cash and cash equivalents at
period end 1,068 435
Investor Contact:
Alon Mualem
Chief Financial Officer
alonm@nisteceltek.com
+972-3-9395023
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SOURCE Eltek Ltd.
