Eltek Reports Full Year and Fourth Quarter 2019 Financial Results
-- Revenues of $34.8 million in 2019 compared to $33.9 million in 2018 -- Net profit of $1.8 million in 2019 compared to a net loss of $2.6 million in 2018 -- Revenues of $8.6 million in the fourth quarter of 2019 compared to $7.8 million in the fourth quarter of 2018 -- Net profit of $370,000 in the fourth quarter of 2019 compared to a net loss of $631,000 in the fourth quarter of 2018
PETACH-TIKVA, Israel, April 27, 2020 /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 full year and fourth quarter ended December 31, 2019.
https://mma.prnewswire.com/media/881148/Eltek_Logo.jpg
Mr. Eli Yaffe, Chief Executive Officer, commented: "We are pleased with the growth in our revenues and profitability in the fourth quarter and the significant change in our full year results. The improved results reflect the implementation of our previously announced turnaround plan."
"The outbreak and spread of the Coronavirus has created new operational and business challenges that we are dealing with. We see both additional risks and opportunities in this new environment," concluded Mr. Yaffe.
Highlights of the Full Year of 2019 compared to the Full Year of 2018
-- Revenues for the full year of 2019 amounted to $34.8 million compared to revenues of $33.9 million in 2018. -- Gross profit was $6.0 million (17.3% of revenues) in 2019 compared to gross profit of $2.6 million (7.7% of revenues) in 2018. -- Operating profit was $1.4 million in 2019 compared to an operating loss of $2.1 million in 2018. -- Net profit was $1.8 million or $0.48 per fully diluted share in 2019, compared to a net loss of $2.6 million or $1.28 per fully diluted share in 2018. -- EBITDA was $3.8 million in 2019 compared to negative EBITDA of $420,000 in 2018. -- Net cash provided by operating activities amounted to $2.6 million in 2019 compared to $813,000 used in operating activities in 2018. -- Cash and cash equivalents as of December 31, 2019 were $1.6 million compared to $992,000 as of December 31, 2018.
Highlights of the Fourth Quarter of 2019 compared to the Fourth Quarter of 2018
-- Revenues for the fourth quarter of 2019 were $8.6 million compared to revenues of $7.8 million in the fourth quarter of 2018. -- Gross profit was $1.5 million (17.0% of revenues) in the fourth quarter of 2019 compared to a gross profit of $603,000 (7.7% of revenues) in the fourth quarter of 2018. -- Operating profit was $379,000 in the fourth quarter of 2019 compared to an operating loss of $416,000 in the fourth quarter of 2018. -- Net profit was $370,000 or $0.08 per fully diluted share in the fourth quarter of 2019 compared to a net loss of $631,000 or $0.31 per fully diluted share in the fourth quarter of 2018. -- EBITDA was $817,000 in the fourth quarter of 2019 compared to negative EBITDA of $43,000 in the fourth quarter of 2018. -- Net cash used in operating activities amounted to $141,000 in the fourth quarter of 2019 compared to $136,000 of cash provided from operating activities in the fourth quarter of 2018.
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.
Conference Call
Eltek will conduct a conference call to discuss the results today, Monday, April 27, 2019, at 8:30 a.m. Eastern Time. 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: 03-9180609
International: +972-3-9180609
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, which was founded in 1970, has its headquarters 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.
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, 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.
Eltek Ltd. Consolidated Statements of Operations (In thousands US$, except per share data) Three months ended Twelve months ended December 31, December 31, 2019 2018 2019 2018 Revenues 8,582 7,827 34,794 33,939 Costs of revenues (7,124) (7,224) (28,787) (31,342) Gross profit 1,458 603 6,007 2,597 Selling, general and administrative expenses (1,063) (1,022) (4,604) (4,669) Impairment loss on goodwill 0 0 0 0 R&D expenses, net (16) 3 (16) Operating profit (loss) 379 (416) 1,387 (2,072) Financial expenses, net (32) (211) (440) (475) Other income, net 48 3 923 3 Loss before income tax 347 (627) 947 (2,547) Profit (loss) before income tax 395 (624) 1,870 (2,544) Tax expenses (25) (7) (77) (63) Net Profit (loss) 370 (631) 1,793 (2,607) Net loss attributable to non controlling interest 0 0 0 0 Net loss attributable to non controlling interest Net Profit (loss) attributable to Eltek Ltd. 369.73 (631) 1,792.88 (2,607) ???? 370 -630 1,793 -2,607 Earnings per share Basic and diluted net profit (loss) per ordinary share 0.08 (0.31) 0.48 (1.28) Weighted average number of ordinary shares used to compute basic and diluted net profit (loss) per ordinary share (in thousands) 4,380 2,029 3,734 2,029
Eltek Ltd. Consolidated Balance Sheets (In thousands US$) December 31, December 31, 2019 2018 Assets Current assets Cash and cash equivalents 1,628 992 Receivables: Trade, net of provision for doubtful accounts 7,480 5,682 Other 145 868 Inventories 3,735 3,611 Prepaid expenses 530 292 Total current assets 13,518 11,445 Long term assets 0 0 Long term assets Severance pay fund 60 53 Long term prepaid expenses - 39 Operating lease right of use assets 2,490 Total long term assets 2,550 92 Fixed assets, less accumulated depreciation 6,761 6,623 Total Assets 22,829 18,160 Liabilities and Shareholder's equity Current liabilities Short-term credit and current maturities of long-term debts 2,120 6,606 Short-term credit from related party 3,472 2,668 Accounts payable: Trade 4,673 4,108 Related parties - 0 Other 3,118 3,377 Short-term operating lease liabilities 1,383 Total current liabilities 14,766 16,759 Long-term liabilities Long term debt, excluding current maturities 387 308 Employee severance benefits 268 211 Deferred tax liabilities 45 Long-term operating lease liabilities 1,094 Total long-term liabilities 1,794 519 Equity Ordinary shares, NIS 3.0 par value authorized 10,000,000 shares, issued and outstanding 4,380,268 and 2,028,552 at December 31, 2019 and December 31, 2018, respectively 3,964 1,985 Additional paid-in capital 18,583 17,270 Cumulative foreign currency translation adjustments 2,479 2,340 Capital reserve 963 800 Accumulated deficit (19,720) (21,513) Shareholders' equity 6,269 882 Non controlling interest 0 0 Total equity 6,269 882 Total liabilities and shareholders' equity 22,829 18,160
Eltek Ltd. Unaudited Non-GAAP EBITDA Reconciliations (In thousands US$) Non-GAAP EBITDA Reconciliations Three months ended Twelve months ended December 31, December 31, 2019 2018 2019 2018 Unaudited Unaudited GAAP net Income (loss) 370 (631) 1,793 (2,607) Add back items: --- Financial expenses, net 32 211 440 475 Income tax expense 25 7 77 63 Impairment loss on goodwill 0 0 0 0 Depreciation and amortization 390 370 1,508 1,649 Non-GAAP EBITDA 817 (43) 3,818 (420)
Eltek Ltd. Consolidated Statement of Cash flow (In thousands US$) Three months ended Twelve months ended December 31, December 31, 2019 2018 2019 2018 Cash flows from operating activities: Net Income (loss) 370 (631) 1,793 (2,607) Adjustments to reconcile net loss to net cash flows provided by operating activities: Depreciation and amortization 390 367 1,508 1,649 Capital loss on disposal of fixed assets, net 101 101 Stock-based compensation 53 56 141 56 Transaction with controlling shareholder (22) 49 22 49 Revaluation of long term loans (2) 6 (38) 29 Increase in deferred tax liabilities 45 45 Impairment of goodwill 464 579 1,678 1,884 Decrease (Increase) in operating lease right-of- use assets 8 (3) Decrease in operating lease liabilities Decrease (increase) in trade receivables (565) 1,264 (1,277) 790 Decrease (Increase) in other receivables and prepaid expenses (58) 155 598 467 Decrease (increase) in inventories 77 631 175 (30) Increase (decrease) in trade payables 15 (1,518) 107 (871) Decrease in other liabilities and accrued expenses (473) (309) (529) (443) Increase (decrease) in employee severance benefits, net 21 (35) 36 (3) (975) 188 (893) (90) Net cash provided by (used in) operating activities (141) 136 2,578 (813) Cash flows from investing activities: Owners investment Purchase of fixed assets (263) (425) (806) (619) Purchase of Intangible asset Purchase of Intangible asset Net cash used in investing activities (263) (425) (806) (619) Cash flows from financing activities: Short- term bank credit, net 135 30 (4,181) 986 Short- term shareholder loan 2 (40) 561 1,390 Issuance of ordinary shares in rights offering, net 3,298 Repayment of long-term loans from bank (216) (220) (891) (910) Proceeds from long-term loans (0) 377 558 378 Repayment of credit from fixed asset payables (188) (83) (477) (317) Net cash provided by (used in) financing activities (267) 64 (1,132) 1,527 Effect of translation adjustments 11 15 (4) 10 Net increase (decrease) in cash and cash equivalents (660) (210) 636 105 Cash and cash equivalents at beginning of the period 2,288 1,202 992 887 Cash and cash equivalents at period end 1,628 992 1,628 992
Investor Contact:
Alon Mualem
Chief Financial Officer
alonm@nisteceltek.com
+972-3-9395023
View original content:http://www.prnewswire.com/news-releases/eltek-reports-full-year-and-fourth-quarter-2019-financial-results-301047450.html
SOURCE Eltek Ltd.