Eltek Reports Record Revenues for Second Quarter of 2013

-- $12.4 Million in Revenues

-- Net Income of $339,000

29 Aug, 2013, 03:17 ET from Eltek Ltd.

PETACH-TIKVA, Israel, Aug. 29, 2013 /PRNewswire/ -- (NASDAQ: ELTK) - Eltek Ltd., the leading Israeli manufacturer of advanced flex-rigid circuitry solutions, announced today its results for the second quarter of 2013.

Revenues for the quarter ended June 30, 2013 were $12.4 million, compared to revenues of $11.5 million in the second quarter of 2012. 

Gross Profit for the second quarter of 2013 was $2.1 million (17% of revenues), compared to gross profit of $1.9 million (17% of revenues) in the second quarter of 2012.

Operating Profit for the second quarter of 2013 was $491,000 compared to the operating profit of $465,000 in the second quarter of 2012.

Net Profit for second quarter of 2013 was $339,000 or $0.05 per fully diluted share, compared to net profit of $351,000 or $0.05 per fully diluted share in the second quarter of 2012.

First six months of 2013:

Revenues for the first six months of 2013 were $24.8 million compared to revenues of $23.5 million recorded in the first six months of 2012. 

Gross profit for the first six months of 2013 was $3.9 million (16% of revenues) compared to gross profit of $4.2 million (18% of revenues) in the first six months of 2012.

Operating profit for the first six months of 2013 was $721,000 compared to operating profit of $1.2 million in the first six months of 2012.

Net profit for the first six months of 2013 was $465,000 or $0.07 per fully diluted share, compared to net profit of $877,000, or $0.13 per fully diluted share, in the first six months of 2012.

EBITDA:

In the quarter ended June 30, 2013, Eltek had EBITDA of $932,000 compared to EBITDA of $928,000 in the second quarter of 2012.

In the first six months of 2013, Eltek had EBITDA of $1.5 million compared to EBITDA of $2.1 million in the first six months of 2012.

ELTEK uses EBITDA as a non-GAAP financial performance measurement. EBITDA is calculated by adding back to net income interest, taxes, depreciation and amortization. EBITDA is provided to investors to complement results provided in accordance with GAAP, as management believes the measure helps illustrate underlying operating trends in the Company's business and uses the measure to establish internal budgets and goals, manage the business and evaluate performance. EBITDA should not be considered in isolation or as a substitute for comparable measures calculated and presented in accordance with GAAP. Reconciliation between the company's results on a GAAP and non-GAAP basis is provided in a table immediately following the Consolidated Statement of Operations

Management Comments:

Arieh Reichart, President and Chief Executive Officer of Eltek commented: "For three consecutive quarters Eltek has seen growing demand from its current customer base, but production capacity constraints prevented the full exploitation of this potential. Our customers continue to see the value proposition of our products and have a great deal of trust in our company. Specifically, in our local market, we have seen greater interest from our local customers, reflecting the continued market recognition of our high quality and reliable products."

"We are pleased with Nistec's decision to invest in Eltek. This significant investment is an important validation of our vision and achievements and will support our long-term growth plans. This investment will enable Eltek to fully realize its growth potential as well as other opportunities in the diverse markets we serve," Mr. Reichart concluded.

Amnon Shemer, Chief Financial Officer of Eltek added: "The record revenues in this quarter and the ten consecutive quarters of profitability, demonstrate Eltek's potential for growth and profitability, which we could not fully capitalize on due to the lack of capital expenditures. We believe that Nistec's capital investment in the Company will enable us to invest in sophisticated manufacturing equipment, which is expected to assist us in growing the business of manufacturing high-end products and improve production efficiency. We believe that such investments will not only increase revenues but also improve gross margins and net income."

"In addition, the capital infusion into the Company will improve our cash position and strengthen our balance sheet through increasing shareholders' equity," Mr. Shemer concluded.

About the Eltek Eltek is Israel's leading manufacturer of printed circuit boards, the core circuitry of most electronic devices. It specializes in the complex high-end of PCB manufacturing, i.e., HDI, multilayered and flex-rigid boards. Eltek's technologically advanced circuitry solutions are used in today's increasingly sophisticated and compact electronic products. For more information, visit Eltek's web site at www.eltekglobal.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, 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.

Contact: Amnon Shemer Chief Financial Officer amnons@eltek.co.il  +972-3-9395050

Eltek Ltd.

Consolidated Statements of Operations

(In thousands US$, except per share data)

Three months ended

Six months ended

June  30,

June  30,

2013

2012

2013

2012

Unaudited

Unaudited

Revenues

12,350

11,533

24,803

23,512

Costs of revenues

(10,256)

(9,620)

(20,920)

(19,277)

Gross profit

2,094

1,914

3,882

4,235

Selling, general and administrative expenses

(1,603)

(1,449)

(3,161)

(3,054)

Operating profit (loss)

491

465

721

1,181

Financial income (expenses), net

(144)

(98)

(244)

(266)

Profit (loss) before other income, net

347

367

477

916

Other income, net

(7)

0

(10)

0

Profit (loss) before income tax expenses

340

367

466

916

Income tax (expenses), net

(9)

(21)

(18)

(25)

Net Profit (loss)

331

346

448

890

Net profit (loss) attributable to non controlling interest

(8)

(4)

(17)

14

Net Profit (loss) attributable to controlling interest / Eltek

339

351

465

877

Earnings per share

Basic and diluted net gain (loss) per ordinary share

0.05

0.05

0.07

0.13

Weighted average number of ordinary shares 

used to compute basic and diluted net gain (loss) per

ordinary share (in thousands)

6,610

6,610

6,610

6,610

 

Eltek Ltd.

Consolidated Balance Sheets

(In thousands US$)

June  30,

2013

2012

Unaudited

Assets

Current assets

Cash and cash equivalents

829

1,621

Receivables:   Trade, net of provision for doubtful accounts

9,583

7,755

                     Other

325

321

Inventories 

5,647

4,540

Prepaid expenses 

262

240

Total current assets

16,646

14,477

Assets held for employees' severance benefits

49

43

Fixed assets, less accumulated depreciation

9,585

7,769

Goodwill

74

497

Total assets

26,354

22,786

Liabilities and Shareholder's equity

Current liabilities

Short-term credit and current maturities of long-term debts

4,813

5,036

Accounts payable: Trade

7,158

6,335

                            Related parties

1,523

1,219

                            Other

4,967

4,087

Total current liabilities

18,461

16,677

Long-term liabilities

Long term debt, excluding current maturities

1,563

503

Employee severance benefits

193

145

Total long-term liabilities

1,756

648

Equity

Ordinary shares, NIS 0.6  par value authorized 50,000,000

shares, issued and outstanding 6,610,107 

1,384

1,384

Additional paid-in capital

14,328

14,295

Cumulative foreign currency translation adjustments

2,997

2,484

Capital reserve

695

695

Accumulated deficit

(13,370)

(13,521)

Shareholders' equity

6,034

5,337

Non controlling interest

103

124

Total equity

6,137

5,461

Total liabilities and shareholders' equity

26,354

22,786

 

Eltek Ltd.

Unaudited Non-GAAP EBITDA Reconciliations

For the period ended June 30, 2013

(In thousands US$, except per share data)

Non-GAAP EBITDA Reconciliations

Three months ended

Six months ended

June  30,

June  30,

2013

2012

2013

2012

Unaudited

Unaudited

GAAP net Income (loss)

339

351

465

877

Add back items:

Financial (income) expenses, net 

143

98

244

266

Income tax (benefit) expense

9

21

18

25

Depreciation

441

459

818

935

Adjusted EBITDA            

932

928

1,546

2,102

 

SOURCE Eltek Ltd.



RELATED LINKS

http://www.eltekglobal.com