Eltek Reports Third Quarter and Nine Months Financial Results

Nov 27, 2013, 04:16 ET from Eltek Ltd.

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