Eltek Reports Third Quarter and Nine Months Financial Results

PETACH-TIKVA, Israel, Nov. 27, 2013 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), the leading Israeli manufacturer of advanced circuitry solutions, including complex build ups of rigid and flex-rigid printed circuit boards, announced today its financial results for the quarter ended September 30, 2013.

Third Quarter 2013:

Revenues for the quarter ended September 30, 2013 were $12.8 million compared with revenues of $10.8 million recorded in the third quarter of 2012.

Gross profit for the third quarter of 2013 was $2.3 million (18.3% of revenues) compared with gross profit of $1.7 million (16.1% of revenues) in the third quarter of 2012.

Operating profit for the third quarter of 2013 was $735,000 compared to operating profit of $285,000 in the third quarter of 2012.

Net profit for the third quarter of 2013 was $585,000 or $0.09 per fully diluted share, compared to net profit of $135,000 or $0.02 per fully diluted share, in the third quarter of 2012. The earnings per share calculation does not include the effect of our sale of 3,532,655 shares to Nistec Ltd. in November 2013.

First nine months of 2013:

Revenues for the nine-month period ended September 30, 2013 were $37.6 million compared to revenues of $34.3 million recorded in the first nine months of 2012. 

Gross profit for the first nine months of 2013 was $6.2 million (16.6% of revenues) compared to gross profit of $6.0 million (17.4% of revenues) in the first nine months of 2012.

Operating profit for the first nine months of 2013 was $1.5 million similar to the operating profit of $1.5 million in the first nine months of 2012.

Net profit for the first nine months of 2013 was $1.1 million, or $0.16 per fully diluted share, compared with net profit of $1.0 million, or $0.15 per fully diluted share, in the first nine months of 2012. The earnings per share calculation does not include the effect of our sale of 3,532,655 shares to Nistec Ltd. in November 2013.

EBITDA:

In the third quarter of 2013, Eltek had EBITDA of $1.2 million compared with EBITDA of $680,000 in the third quarter of 2012. In the first nine months of 2013, Eltek had EBITDA of $2.7 million compared with EBITDA of $2.8 million in the same period in 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:

Erez Meltzer, Eltek's former Chairman of the Board of Directors commented: "Although I continue to serve on the Board of Directors of Eltek, I am pleased to wrap up my service as Chairman of the Board after such a profitable quarter and record breaking revenues. I am confident that Mr. Yitzhak Nissan, my successor as Chairman of the Board, will lead the Company in the path of growth and success, helping generate added value for our investors and strengthen the Company's leading position in the high-end PCB market."

Arieh Reichart, President and Chief Executive Officer of Eltek commented: "I am pleased to report that this is the eleventh consecutive quarter of profitability (excluding the one-time goodwill impairment in Q4-2012) – with record revenues. Nistec's investment in the company validates Eltek's leadership in the printed circuit boards market and greatly supports our long-term growth plans, leveraging the company's growth potential towards additional opportunities in the diverse markets we serve."

About 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, multi-layered 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 website 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
V.P. Finance & CFO
Eltek ltd
Tel: +972 3 939 5023
amnons@eltek.co.il

www.eltekglobal.com

 

Eltek Ltd.

Consolidated Statements of Operations

(In thousands US$, except per share data)













Three months ended


Nine months ended




September  30,


September  30,




2013


2012


2013


2012




Unaudited


Unaudited












Revenues


12,758


10,779


37,560


34,291


Costs of revenues


(10,417)


(9,045)


(31,337)


(28,321)












Gross profit


2,341


1,734


6,224


5,970












Selling, general and administrative expenses


(1,606)


(1,449)


(4,767)


(4,503)












Operating profit


735


285


1,456


1,467












Financial income (expenses), net


(100)


(128)


(345)


(394)












Profit before other income, net


636


157


1,112


1,072












Other income, net


6


(4)


(4)


5












Profit before income tax expenses


642


154


1,108


1,078












Income tax (expenses), net


(52)


(9)


(70)


(43)












Net Profit


590


145


1,038


1,035












Net profit (loss) attributable to non controlling interest


5


10


(12)


23












Net Profit attributable to controlling interest / Eltek


585


135


1,050


1,012












Earnings per share




















Basic and diluted net gain (loss) per ordinary share


0.09


0.02


0.16


0.15












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$)

















September  30,








2013


2012








Unaudited


Assets




















Current assets










Cash and cash equivalents






1,378


1,434


Receivables:   Trade, net of provision for doubtful accounts






9,678


6,808


                     Other






192


285


Inventories 






6,323


5,124


Prepaid expenses 






332


212












Total current assets






17,903


13,863












Assets held for employees' severance benefits






50


44












Fixed assets, less accumulated depreciation






9,870


8,445












Goodwill






73


486












Total assets






27,896


22,838










































Liabilities and Shareholder's equity




















Current liabilities










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






4,799


5,167


Accounts payable: Trade






7,988


5,940


                            Related parties






1,556


1,035


                            Other






4,983


4,024












Total current liabilities






19,326


16,166












Long-term liabilities










Long term debt, excluding current maturities






1,508


898


Employee severance benefits






185


138












Total long-term liabilities






1,693


1,036












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






3,012


2,507


Capital reserve






695


695


Accumulated deficit






(12,658)


(13,386)


Shareholders' equity






6,761


5,495


Non controlling interest






116


141


Total equity






6,877


5,636


Total liabilities and shareholders' equity






27,896


22,838
































Eltek Ltd.

Unaudited Non-GAAP EBITDA Reconciliations

For the period ended September 30, 2013

(In thousands US$, except per share data)











Non-GAAP EBITDA Reconciliations


Three months ended


Nine months ended




September  30,


September  30,




2013


2012


2013


2012




Unaudited


Unaudited












GAAP net Income (loss)


585


135


1,050


1,012


Add back items:




















Financial (income) expenses, net 


100


128


345


394


Income tax (benefit) expense


52


9


70


43


Depreciation


422


408


1,241


1,343


Adjusted EBITDA            


1,159


680


2,706


2,792


 

 

SOURCE Eltek Ltd.



RELATED LINKS
http://www.eltekglobal.com

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