TAT Technologies Reports a Correction to Fourth Quarter and Full Year 2012 Results
GEDERA, Israel, April 22, 2013 /PRNewswire/ --
TAT Technologies Ltd. (NASDAQ: TATT - News) ("the Company"), a leading provider of services and products to the commercial and military aerospace and ground defense industries, reported today that following the reconciliation of an audit of royalties payable by the Company to one of its suppliers in the MRO business, the Company's net income (loss) for the three months and year ended December 31, 2012 was $0.13 million and $(1.71) million, respectively, rather than the net income (loss) of $0.37 million and $(1.48) million, respectively as previously reported in the Form 6K dated March 22, 2013. The audited results will be included in the Company's 20F released by end of April 2013.
TAT TECHNOLOGIES AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except share data)
December 31, December 31, 2012 2011 ASSETS Current Assets: Cash and cash equivalents $ 16,581 $ 26,232 Short-term bank deposits 10,048 - Marketable securities at fair value - 1,900 Short-term restricted deposits 2,307 954 Trade accounts receivable (net of allowance for doubtful accounts of $376 and $190 at December 31, 2012 and 2011, respectively) 20,930 20,621 Other accounts receivable and prepaid expenses 4,587 6,479 Inventories, net 33,031 31,303 Total current assets 87,484 87,489 Long-term assets: Long-term restricted deposits - 2,300 Investment in affiliated company 1,264 5,020 Funds in respect of employee right upon retirement 3,318 2,859 Long-term deferred tax 2,535 3,669 Property, plant and equipment, net 12,910 12,939 Goodwill, net - 1,042 Total Long-term assets 20,027 27,829 Total assets $ 107,511 $ 115,318 LIABILITIES AND EQUITY Current Liabilities: Current maturities of long-term loans 3,274 4,916 Trade accounts payables 5,373 5,073 Other accounts payable and accrued expenses 7,407 6,835 Total current liabilities 16,054 16,824 Long-term liabilities: Long-term loans, net of current maturities 1,116 4,420 Other long-term liabilities - 86 Liability in respect of employee rights upon retirement 3,815 3,414 Long-term deferred tax liability 1,490 1,413 Total long-term liabilities 6,421 9,333 EQUITY: Share capital Ordinary shares of NIS 0.9 par value - Authorized: 10,000,000 shares at December 31, 2012 and 2011; Issued: 9,073,043 shares at December 31, 2012 and 2011; Outstanding: 8,798,570 and 8,815,003 shares at December 31, 2012 and 2011, respectively 2,790 2,790 Additional paid-in capital 64,410 64,402 Treasury stock, at cost, 274,473 and 258,040 shares at December 31, 2012 and 2011, respectively (2,088) (2,018) Accumulated other comprehensive loss (897) (1,036) Retained earnings 18,018 22,232 Total TAT Technologies Ltd. shareholders' equity 82,233 86,370 Noncontrolling interest 2,803 2,791 Total equity: 85,036 89,161 Total liabilities and equity $ 107,511 $ 115,318
TAT TECHNOLOGIES AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, in thousands, except share and per share data)
Three months ended Twelve months ended December 31, December 31, 2012 2011 2012 2011 Revenues: OEM of Heat Management Solutions $ 8,311 $ 8,424 $ 31,032 $ 30,020 Heat Transfer Services and Products 7,167 7,638 27,709 27,603 MRO services for Aviation Components 5,776 5,343 22,442 20,146 OEM of Electric Motion Systems 3,092 3,103 10,007 11,658 Eliminations (1,307) (1,118) (3,268) (4,030) 23,039 23,390 87,922 85,397 Cost and operating expenses: OEM of Heat Management Solutions 6,256 6,270 23,105 22,660 Heat Transfer Services and Products 4,925 5,801 19,671 20,173 MRO services for Aviation Components 5,346 4,973 19,044 17,882 OEM of Electric Motion Systems 2,464 2,524 8,043 9,388 Write down of inventory and impairment charges of long lived assets - - - 5,763 Eliminations (1,212) (1,127) (3,281) (3,884) 17,779 18,441 66,582 71,982 Gross Profit 5,260 4,949 21,340 13,415 Research and development costs, net 313 143 1,152 786 Selling and marketing expenses 830 958 3,426 3,439 General and administrative expenses 3,233 2,939 11,487 10,949 Other expenses (income) (1) (44) 9 (169) Impairment of goodwill - - 1,015 - 4,375 3,996 17,089 15,005 Operating income (loss) 885 953 4,251 (1,590) Financial expenses (577) (630) (2,229) (2,203) Financial income 560 296 2,048 1,823 Gain from dilution of interests in affiliated company - - - 240 Income (loss) before taxes on income 868 619 4,070 (1,730) Taxes on income (benefit) 190 363 2,086 (316) Net income (loss) after taxes on income 678 256 1,984 (1,414) Share in results of affiliated company and impairment of share in affiliated company (540) (119) (3,756) 331 Net income (loss) 138 137 (1,772) (1,083) Net loss (income) attributable to Noncontrolling interest (8) (20) 58 53 Net income (loss) attributable to TAT Technologies Ltd. shareholders $ 130 $ 117 $ (1,714) $ (1,030) Earning per share Basic and diluted net income (loss) per share attributable to controlling interest $ 0.01 $ 0.01 $ (0.19) $ (0.12) Weighted average number of shares - basic and diluted 8,798,570 8,815,003 8,808,075 8,815,003
About TAT Technologies LTD
TAT Technologies LTD is a leading provider of services and products 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) OEM of Electric Motion Systems (iii) Heat Transfer Services and Products and (iv) Maintenance, Repair and Overhaul or "MRO" services of Aviation Components.
TAT's activities in the area of OEM of Heat Management Solutions primarily include the design, development, manufacture and sale of (i) a broad range of heat transfer components (such as 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 OEM of Electric Motion Systems primarily include the design, development, manufacture and sale of a broad range of electrical motor applications for airborne and ground systems.
TAT's activities in the area of Heat Transfer Services and Products include the maintenance, repair and overhaul of heat transfer equipment and in a lesser extent, the manufacturing of certain heat transfer products. TAT's Limco subsidiary operates 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 Gear 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 also holds approximately 30% of the equity of First Aviation Services, a one-stop-shop for MRO services (wheels, breaks, propellers and landing gear) for the General Aviation Industry.
TAT's executive offices are located in the Re'em Industrial Park, Neta Boulevard, Bnei Ayish, Gedera 70750, Israel, and TAT's telephone number is 972-8-862-8500.
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, 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.
For more information of TAT Technologies, please visit our web-site: http://www.tat-technologies.com
Yaron Shalem - CFO
TAT Technologies Ltd.
SOURCE TAT Technologies Ltd