GEDERA, Israel, Nov 18, 2016 /PRNewswire/ -- TAT Technologies Ltd. TATT (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 and nine month periods ended September 30, 2016.
Financial Highlights for the Third quarter of 2016 (unaudited):
- Total Revenue: $23.7 million compared to $22 million in the third quarter of 2015.
- Operating income: $1.5 million compared to $0.5 million in the third quarter of 2015.
- EBITDA: $2.4 million compared to $1.1 million in the third quarter of 2015.
- Net income: $0.9 million compared to $0.2 million in the third quarter of 2015.
- Earnings per share basic and diluted: $0.1 per share compared to $0.02 per share in the third quarter of 2015.
- Net cash provided by (used in) operating activities: $2.2 million compared to $(0.1) million in the third quarter of 2015.
- Dividend distribution: on August 9, 2016, the company distributed to shareholders a cash dividend in the total amount of $3.0 million.
During the second quarter of 2016, the Company recorded an accrual, related to tax expenses, of approximately $2.4 million of which $ 2 million is related to a deferred tax liability for future distribution of earnings from foreign subsidiaries of the Company, since the Company's Board of Directors considers future distribution of dividends from these earnings to the Company's shareholders.
Mr. Igal Zamir, TAT's President & CEO commented; "We are pleased with the 2016 third quarter financial results, reflecting improved profitability mainly due to operational efficiencies improvements. Piedmont completed the move to its new, state of the art landing gears and materials plating facility adding new capabilities, Limco continues to enjoy strong demand with increasing growth opportunities in Heat Exchangers MRO and our OEM Heat Exchangers business enjoys a strong backlog."
About TAT Technologies LTD
TAT Technologies Ltd. is a leading provider of products and services 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 blades and 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.
For more information of TAT Technologies Ltd., please visit our web-site:
www.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, 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) | |||
|
September 30, |
December 31, | ||
|
2016 |
2015 | ||
|
(unaudited) |
(audited) | ||
|
ASSETS |
|||
|
CURRENT ASSETS: |
|||
|
Cash and cash equivalents |
$ 18,227 |
$ 18,688 | |
|
Short-term bank deposits |
951 |
8,122 | |
|
Accounts receivable, net |
22,639 |
19,151 | |
|
Other current assets and prepaid expenses |
3,333 |
3,025 | |
|
Inventory, net |
37,974 |
36,664 | |
|
Total current assets |
83,124 |
85,650 | |
|
NON-CURRENT ASSETS: |
|||
|
Investment in affiliates |
507 |
169 | |
|
Funds in respect of employee rights upon retirement |
2,598 |
2,626 | |
|
Deferred income taxes |
530 |
890 | |
|
Intangible assets, net |
1,213 |
1,314 | |
|
Property, plant and equipment, net |
21,172 |
18,934 | |
|
Total non-current assets |
26,020 |
23,933 | |
|
Total assets |
$ 109,144 |
$ 109,583 | |
|
LIABILITIES AND EQUITY |
|||
|
CURRENT LIABILITIES: |
|||
|
Accounts payable |
8,537 |
7,022 | |
|
Accrued expenses |
8,673 |
7,815 | |
|
Total current liabilities |
17,210 |
14,837 | |
|
NON CURRENT LIABILITIES: |
|||
|
Other long-term liabilities |
66 |
189 | |
|
Liability in respect of employee rights upon retirement |
2,931 |
2,871 | |
|
Deferred income taxes |
1,715 |
262 | |
|
Total non-current liabilities |
4,712 |
3,322 | |
|
Total liabilities |
21,922 |
18,159 | |
|
EQUITY: |
|||
|
Share capital |
2,797 |
2,793 | |
|
Additional paid-in capital |
64,719 |
64,529 | |
|
Treasury stock at cost |
(2,088) |
(2,088) | |
|
Accumulated other comprehensive loss |
155 |
(4) | |
|
Retained earnings |
21,639 |
26,194 | |
|
Total shareholders' equity |
87,222 |
91,424 | |
|
Total liabilities and shareholders' equity |
$ 109,144 |
$ 109,583 | |
|
TAT TECHNOLOGIES AND ITS SUBSIDIARIES | |||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||
|
(In thousands, except share and per share data) | |||||||||
|
Three months ended |
Nine months ended |
Year ended | |||||||
|
September 30, |
December 31, | ||||||||
|
2016 |
2015 |
2016 |
2015 |
2015 | |||||
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||||
|
Revenues: |
|||||||||
|
Products |
$ 6,940 |
$ 8,254 |
$ 22,950 |
$ 22,980 |
$ 31,339 | ||||
|
Services |
16,705 |
13,694 |
47,859 |
40,924 |
54,268 | ||||
|
23,645 |
21,948 |
70,809 |
63,904 |
85,607 | |||||
|
Cost of goods: |
|||||||||
|
Products |
5,147 |
7,003 |
18,179 |
18,591 |
24,466 | ||||
|
Services |
13,605 |
11,547 |
39,407 |
33,946 |
47,476 | ||||
|
18,752 |
18,550 |
57,586 |
52,537 |
71,942 | |||||
|
Gross Profit |
4,893 |
3,398 |
13,223 |
11,367 |
13,665 | ||||
|
Operating expenses: |
|||||||||
|
Research and development, net |
213 |
247 |
951 |
570 |
890 | ||||
|
Selling and marketing |
911 |
647 |
2,868 |
2,130 |
2,903 | ||||
|
General and administrative |
2,300 |
2,033 |
7,392 |
5,981 |
8,469 | ||||
|
Other loss (income) |
(18) |
(1) |
(21) |
- |
631 | ||||
|
Gain on bargain purchase |
(4,833) | ||||||||
|
3,406 |
2,926 |
11,190 |
8,681 |
8,060 | |||||
|
Operating income |
1,487 |
472 |
2,033 |
2,686 |
5,605 | ||||
|
Financial (expenses) income, net |
(60) |
17 |
(92) |
(232) |
(349) | ||||
|
Income before taxes on income |
1,427 |
489 |
1,941 |
2,454 |
5,256 | ||||
|
Taxes on income |
537 |
317 |
3,445 |
1,099 |
644 | ||||
|
Income (loss) before equity investment |
890 |
172 |
(1,504) |
1,355 |
4,612 | ||||
|
Share in results and sale of equity investment of affiliated companies |
(37) |
- |
(51) |
1,491 |
1,237 | ||||
|
Net income (loss) |
$ 853 |
$ 172 |
$ (1,555) |
$ 2,846 |
$ 5,849 | ||||
|
Basic and diluted income (loss) per share |
|||||||||
|
Net income (loss) per share |
$ 0.10 |
$ 0.02 |
$ (0.18) |
$ 0.32 |
$ 0.66 | ||||
|
Weighted average number of shares outstanding |
|||||||||
|
Basic |
8,828,444 |
8,808,344 |
8,828,444 |
8,808,344 |
8,808,344 | ||||
|
Diluted |
8,837,714 |
8,810,824 |
8,829,894 |
8,809,844 |
8,810,689 | ||||
|
TAT TECHNOLOGIES AND ITS SUBSIDIARIES | |||||||||
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||
|
(In thousands) | |||||||||
|
Three months ended |
Nine months ended |
Year ended | |||||||
|
September 30, |
December 31, | ||||||||
|
2016 |
2015 |
2016 |
2015 |
2015 | |||||
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||||
|
Net income (loss) |
$ 853 |
$ 172 |
$ (1,555) |
$ 2,846 |
$ 5,849 | ||||
|
Other comprehensive income |
|||||||||
|
Net unrealized gains (losses) from derivatives |
181 |
- |
373 |
- |
(5) | ||||
|
Reclassification adjustments for gains |
(93) |
- |
(214) |
- |
1 | ||||
|
Total other comprehensive income (loss) |
$ 941 |
$ 172 |
$ (1,396) |
$ 2,846 |
$ 5,845 | ||||
|
TAT TECHNOLOGIES AND ITS SUBSIDIARIES | |||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
|
(In thousands) | |||||||||
|
Three months ended |
Nine months ended |
Year ended | |||||||
|
September 30, |
December 31, | ||||||||
|
2016 |
2015 |
2016 |
2015 |
2015 | |||||
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||||
|
CASH FLOWS FROM OPERATING |
|||||||||
|
Net income (loss) attributable to TAT |
$ 853 |
$ 172 |
$ (1,555) |
$ 2,846 |
$ 5,849 | ||||
|
Adjustments to reconcile net income to net cash |
|||||||||
|
Depreciation and amortization |
929 |
675 |
2,660 |
1,890 |
2,781 | ||||
|
Gain on sale of property, plant and equipment |
(19) |
- |
(18) |
- |
- | ||||
|
Interest from short-term bank deposits and |
- |
(5) |
(11) |
(20) |
(33) | ||||
|
Loss (gain) from change in fair value of |
(122) |
- |
(170) |
- |
10 | ||||
|
Provision for doubtful accounts |
10 |
144 |
53 |
144 |
206 | ||||
|
Share in results and sale of equity investment of |
37 |
- |
51 |
(1,491) |
(1,237) | ||||
|
Share based compensation |
37 |
11 |
64 |
26 |
38 | ||||
|
Gain on bargain purchase |
- |
- |
- |
- |
(4,833) | ||||
|
Liability in respect of employee rights upon |
47 |
(68) |
60 |
53 |
28 | ||||
|
Deferred income taxes, net |
(287) |
30 |
1,813 |
672 |
(21) | ||||
|
Changes in operating assets and liabilities: |
|||||||||
|
Increase in trade accounts receivable |
(44) |
(1,261) |
(3,541) |
(3,903) |
(2,375) | ||||
|
Decrease (increase) in other current assets and prepaid expenses |
(913) |
35 |
31 |
(276) |
(85) | ||||
|
Decrease (increase) in inventory |
(862) |
779 |
(1,367) |
(418) |
(571) | ||||
|
Increase (decrease) in trade accounts payable |
1,503 |
(396) |
1,379 |
(801) |
436 | ||||
|
Increase (decrease) in accrued expenses |
1,013 |
(236) |
1,358 |
1,052 |
525 | ||||
|
Increase (decrease) in other long-term liabilities |
(1) |
39 |
(123) |
25 |
15 | ||||
|
Net cash provided by (used in) operating |
$ 2,181 |
$ (81) |
$ 684 |
$ (201) |
$ 733 | ||||
|
CASH FLOWS FROM INVESTING |
|||||||||
|
Acquisitions of subsidiary, net of cash acquired |
- |
- |
- |
- |
(1,796) | ||||
|
Investment in affiliated company |
(376) |
- |
(389) |
- |
- | ||||
|
Proceeds from sale of equity investment of |
- |
- |
- |
3,624 |
3,624 | ||||
|
Funds in respect of employee rights upon |
98 |
76 |
75 |
(61) |
8 | ||||
|
Proceeds from sale of property and equipment |
17 |
3 |
18 |
9 |
9 | ||||
|
Purchase of property and equipment |
(1,078) |
(745) |
(4,661) |
(2,444) |
(3,315) | ||||
|
Investments in short-term deposits |
- |
- |
- |
- |
(8,109) | ||||
|
Maturities of short-term deposits |
5,182 |
- |
7,182 |
- |
5,109 | ||||
|
Cash flows provided by (used in) investing activities |
$ 3,843 |
$ (666) |
$ 2,225 |
$ 1,128 |
$ (4,470) | ||||
|
Cash flows used in financing activities |
$ (3,500) |
- |
$ (3,370) |
- |
$ (469) | ||||
|
Net increase (decrease) in cash and cash equivalents |
2,524 |
(747) |
(461) |
927 |
(4,206) | ||||
|
Cash and cash equivalents at beginning of |
15,703 |
24,568 |
18,688 |
22,894 |
22,894 | ||||
|
Cash and cash equivalents at end of period |
$ 18,227 |
$ 23,821 |
$ 18,227 |
$ 23,821 |
$ 18,688 | ||||
Contact:
Guy Nathanzon – CFO
TAT Technologies Ltd.
Tel: 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-third-quarter-2016-results-300365827.html
SOURCE TAT Technologies Ltd
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
