- 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. 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.
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) | ||||
בקרה | 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.
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