TAT Technologies Reports First Quarter 2016 Results

GEDERA, Israel, May 20, 2016 /PRNewswire/ -- TAT Technologies Ltd. TATT (the "Company"), a leading provider of services and products to the commercial and military aerospace and ground defense industries, reported today its unaudited results for the three month period ended March 31, 2016.

Financial Highlights for the First quarter of 2016 (unaudited):

  • Total Revenue: $23.6 million compared to $20.5 million in the first quarter of 2015.
  • Operating income: $0.3 million compared to $1.1 million in the first quarter of 2015.
  • EBITDA: $1.1 million compared to $1.6 million in the first quarter of 2015.
  • Net income: $0.04 million compared to $1.9 million in the first quarter of 2015.
  • Earnings per share basic and diluted: $0.01 per share compared to $0.22 per share in the first quarter of 2015.
  • Cash and cash equivalents and short-term bank deposits: $26 million compared to $26.8 million as of December 31, 2015.

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 or "OEM" of Heat Management Solutions (ii) Heat Transfer Services and Products (iii) Maintenance, Repair and Overhaul or "MRO" services of Aviation Components; and (iv) overhaul and coating of jet engine components.

TAT's activities in the area of OEM Heat Management Solutions are focused on the design, development, manufacture, and sale of the following: (i) a broad range of heat transfer components including heat exchangers, pre-coolers and oil/fuel hydraulic coolers used in mechanical and electronic systems on-board commercial, military and business aircraft; (ii) environmental control and cooling systems on board aircraft and for ground applications; and (iii) a variety of other electronic and mechanical aircraft accessories and systems such as pumps, valves, power systems and turbines.

TAT's activities in the area of Heat Transfer Services and Products include the maintenance, repair and overhaul of heat transfer equipment and to a lesser extent, the manufacture of certain heat transfer product parts. TAT's Limco subsidiary operates an FAA certified repair station, which provides heat transfer MRO services and products 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 maintenance, repair and overhaul 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 jet engine overhaul includes the overhaul and coating of jet engine components such as turbine vanes and blades, fan blades, variable inlet guide vanes, afterburner flaps and other components.

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, the price and continuity of supply of component parts used in our operations, the change of control that will occur on the sale by the receiver of the Company's shares held by our previously controlling stockholders, 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. Stockholders 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,

2016


2015


(unaudited)


(audited)

ASSETS




CURRENT ASSETS:




Cash and cash equivalents

$                   19,832


$                   18,688

Short-term bank deposits

6,133


8,122

Accounts receivable, net

20,545


19,151

Other current assets and prepaid expenses

4,161


3,025

Inventory, net

36,465


36,664





Total current assets

87,136


85,650





NON-CURRENT ASSETS:




 Investment in First Aviation Services Inc.

169


169

Funds in respect of employee rights upon retirement

2,564


2,626

 Deferred income taxes

990


890

Intangible assets, net

1,280


1,314

Property, plant and equipment, net

19,293


18,934





Total non-current assets

24,296


23,933





Total assets

$                 111,432


$                 109,583





LIABILITIES AND EQUITY








CURRENT LIABILITIES:




Accounts payable

7,959


7,022

Accrued expenses

8,367


7,815

Total current liabilities

16,326


14,837





NON CURRENT LIABILITIES:




   Other long-term liabilities

42


189

Liability in respect of employee rights upon retirement

2,889


2,871

Deferred income taxes

244


262





 Total non-current liabilities

3,175


3,322





Total liabilities

19,501


18,159





EQUITY:




Share capital

2,797


2,793

Additional paid-in capital

64,669


64,529

Treasury stock at cost

(2,088)


(2,088)

Accumulated other comprehensive loss

314


(4)

Retained earnings

26,239


26,194

Total shareholders' equity

91,931


91,424





Total liabilities and shareholders' equity

$                 111,432


$                 109,583





 

TAT TECHNOLOGIES AND ITS SUBSIDIARIES


CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share data)






Three months ended


Year ended


March 31,


December 31,


2016


2015


2015


(Unaudited)


(Unaudited)


(Audited)




(Revised)



Revenues:






   Products

$              8,069


$                6,979


$              31,339

   Services

15,565


13,507


54,268


23,634


20,486


85,607







Cost of revenue:






Products

6,691


5,554


24,466

Services

13,008


11,078


47,476


19,699


16,632


71,942

Gross Profit

3,935


3,854


13,665







Operating expenses:






Research and development, net

264


138


890

Selling and marketing

1,010


725


2,903

General and administrative

2,410


1,924


8,469

Other expenses

1


1


631

Gain on bargain purchase

-


-


(4,833)


3,685


2,788


8,060

Operating income

250


1,066


5,605







Financial expenses, net

(19)


(185)


(349)







Income before taxes on income

231


881


5,256







Taxes on income

186


431


644







Income before equity investment

45


450


4,612

Share in results of equity investment of affiliated Company

-


1,491


1,237













Net income

$                   45


$               1,941


$               5,849







Basic and diluted income per share












Net income per share

$                0.01


$                 0.22


$                 0.66







Weighted average number of shares outstanding






Basic

8,828,444


8,808,344


8,808,344

Diluted

8,828,444


8,808,344


8,810,689







 

TAT TECHNOLOGIES AND ITS SUBSIDIARIES


CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)






Three months ended


Year ended


March 31,


December 31,


2016


2015


2015


(Unaudited)


(Unaudited)


(Audited)







Net income

$                   45


$              1,941


$               5,849

Other comprehensive income






Net unrealized gains (losses) from derivatives

365


-


(5)

Reclassification adjustments  for gains included in net income and inventory

(47)


-


1

       Total other comprehensive income

$                 363


$              1,941


$               5,845







 

TAT TECHNOLOGIES AND ITS SUBSIDIARIES


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)










Three months ended

March 31,


Year ended

December 31,



2016


2015


2015



(Unaudited)


(Unaudited)


(Audited)





(Revised)



CASH FLOWS FROM OPERATING ACTIVITIES:







Net income attributable to TAT Technologies Ltd. shareholders


$             45


$      1,941


$      5,849








Adjustments to reconcile net income to net cash provided by operating activities:














Depreciation and amortization


851


554


2,781

Loss on sale of  property, plant and equipment


1


1


-

Interest from short-term bank deposits and restricted deposits


(11)


-


(33)

Loss (gain) from change in fair value of derivatives


(53)


-


10

Provision for doubtful accounts


43


-


206

Share in results and sale of equity investment of affiliated Company 


-


(1,491)


(1,237)

Share based compensation


14


15


38

Gain on bargain purchase


-


-


(4,833)

Liability in respect of employee rights upon retirement


18


(31)


28

Deferred income taxes, net


(118)


366


(21)

Changes in operating assets and liabilities:







    Increase in trade accounts receivable


(1,437)


(702)


(2,375)

   Decrease (increase) in other current assets and prepaid expenses


(536)


418


(85)

Decrease (increase) in inventory


172


(1,036)


(571)

    Increase (decrease) in trade accounts payable


427


(1,722)


436

    Increase in accrued expenses


552


1,436


525

    Increase (decrease) in other long-term liabilities


(147)


(7)


15















Net cash provided by (used in) operating activities


$        (179)


$           (258)


$    733








CASH FLOWS FROM INVESTING ACTIVITIES:







Acquisitions of subsidiary, net of cash acquired


-


-


(1,796)

Proceeds from sale of equity investment of affiliated Company


-


3,624


3,624

Funds in respect of employee rights upon retirement


(140)


(52)


8

Proceeds from sale of property and equipment


1


6


9

Purchase of property and equipment


(668)


(853)


(3,315)

Investments in short-term deposits


-


-


(8,109)

Maturities of short-term deposits


2,000


-


5,109

Cash flows provided by (used in) investing activities


$        1,193


$      2,725


$    (4,470)








Cash flows  provided by (used in) financing activities


$          130


$              -


$     (469)








Net increase (decrease) in cash and cash equivalents


1,144


2,467


(4,206)








Cash and cash equivalents at beginning of period


18,688


22,894


22,894








Cash and cash equivalents at end of period


$     19,832


$    25,361


$    18,688















 

Additional comment:

During the three months ended March 31, 2015 the Company recognized a gain from the revaluation to fair value of the remaining holding in the investment in First Aviation Services Inc. The capital gain from the revaluation was $254. During the three months period ended December 31, 2015 the Company adjusted the gain from the revaluation reported in the three months period ended March 31, 2015.

For more information of TAT Technologies Ltd., please visit our web-site: www.tat-technologies.com

Guy Nathanzon – CFO
TAT Technologies Ltd.
Tel: +1-972-8-862-8500
guyn@tat-technologies.com

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/tat-technologies-reports-first-quarter-2016-results-300272327.html

SOURCE TAT Technologies Ltd

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