TAT Technologies Reports First Quarter 2014 Results

GEDERA, Israel, May 15, 2014 /PRNewswire/ -- TAT Technologies Ltd. (NASDAQ: TATT) ("the Company"), a leading provider of services and products to the commercial and military aerospace and ground defense industries, reported today its results for the three month period ended March 31, 2014.

Mr. Itsik Maaravi, TAT's President & CEO commented, "As experienced in the past, 2014 first quarter was a challenging period for TAT group following a very successful year in 2013 in terms of revenues and profit. We plan to continue and increase our marketing and sales efforts, as well as to increase our activity in improving our production efficiency and the responsiveness and support to our customers. We believe that our efforts will assist us in improving our performance throughout the next quarters of 2014. In addition, we are continuing to preserve a strong balance sheet with limited liabilities, strong working capital and sufficient financial assets to support the future growth of our operations."

Financial Highlights for the First quarter of 2014:

  • Total Revenue: $18.4 million compared to $19.6 million for the first quarter of 2013.
  • Operating income: $0.4 million compared to $1.7 million for the first quarter of 2013.
  • Net income: $0.4 million compared to $1.7 million for the first quarter of 2013.
  • Earnings per share: $0.05 per share compared to $0.19 per share in the first quarter of 2013.
  • Cash and cash equivalents and short-term bank deposits: $35.2 million compared to $29.9 million as of December 31, 2013.

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 three segments:  (i) Original Equipment Manufacturing or "OEM" of Heat Management Solutions (ii) Heat Transfer Services and Products and (iii) 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 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 29% of the equity of First Aviation Services, a world-wide service provider to the aerospace industry and a one-stop-shop for maintenance, repair and overhaul services (for propellers and landing gear) for the General Aviation Industry.

For more information of TAT Technologies, please visit our web-site:  www.tat-technologies.com

Tiko Gadot – CFO
TAT Technologies Ltd.
Tel: 972-8-862-8500
TikoG@tat-technologies.com

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, the change of control that will occur on the sale by the receiver of the Company's shares held by our previously controlling stockholders, 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.


TAT TECHNOLOGIES AND ITS SUBSIDIARIES

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands, except share data)



March 31,


December 31,

2014


2013


(unaudited)


(audited)

ASSETS




Current Assets:




Cash and cash equivalents

$                   25,158


$                   19,814

Short-term bank deposits

10,059


10,059

Accounts receivable-trade (net of allowance for doubtful accounts of  $123 as of March 31, 2014 and December 31, 2013)

16,618


18,387

Other accounts receivable and prepaid expenses

3,301


3,314

Inventories, net

30,084


29,395

Assets held for sale

-


9,959





Total current assets

85,220


90,928





Long-term assets:




Investment in an affiliated company

2,431


2,289

Funds in respect of employee rights upon retirement

2,919


2,900

Long-term deferred tax

1,541


1,616

Property, plant and equipment, net

11,332


11,147





Total Long-term assets

18,223


17,952





Total assets

$                 103,443


$                 108,880





 

LIABILITIES AND EQUITY








Current Liabilities:




Short term bank loan and current maturities of long-term loans

$                        883


$                        910

Trade accounts payables

6,265


6,941

Other accounts payable and accrued expenses

7,621


5,815

Liabilities held for sale

-


3,428





Total current liabilities

14,769


17,094





Long-term liabilities:




Other accounts payable

53


58

Liability in respect of employee rights upon retirement

3,131


3,140

Long-term deferred tax liability

1,073


1,058





Total long-term liabilities

4,257


4,256





















 

EQUITY:




Share capital

2,792


2,792

Additional paid-in capital

64,463


64,454

Treasury stock at cost

(2,088)


(2,088)

Accumulated other comprehensive loss

-


(429)

Retained earnings

19,250


20,840

Total TAT Technologies shareholders' equity

84,417


85,569

Non-controlling interest

-


1,961





Total equity:

84,417


87,530





Total liabilities and equity

$                 103,443


$                 108,880





 

TAT TECHNOLOGIES AND ITS SUBSIDIARIES

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME



Three months ended


Year ended


March 31,


December 31,


2014


2013


2013







Revenues:






Products

$            8,098


$            8,255


$             34,364

Services

10,319


11,324


45,187


18,417


19,579


79,551







Cost and operating expenses:






Products

5,995


5,811


24,892

Services

8,794


8,792


35,987


14,789


14,603


60,879

Gross Profit

3,628


4,976


18,672







Operating expenses:






Research and development, net

255


224


713

Selling and marketing

750


766


3,150

General and administrative

2,276


2,313


9,512

Other income

(7)


(7)


(20)


3,274


3,296


13,355

Operating income from continuing operations

354


1,680


5,317







Financial income (expenses), net

11


16


(50)







Income from continuing operations before taxes on income

365


1,696


5,267







Taxes on income

97


483


1,041







Net income from continuing operations after taxes on income

268


1,213


4,226

Share in results of affiliated company

142


911


1,025







Net income from continuing operations

410


2,124


5,251

Net loss from discontinued operations, net of tax

-


(416)


(2,429)







Net income attributable to TAT Technologies Ltd. shareholders

$                 410


$                1,708


$               2,822







Basic and diluted income (loss) per share






Net income from continuing operations per share attributable to controlling interest

$                0.05


$                0.24


$                0.60

Loss from discontinued operations per share attributable to controlling interest

-


(0.05)


(0.28)


$                0.05


$                0.19


$                0.32







Weighted average number of shares outstanding






Basic

8,805,236


8,798,570


8,799,237

Diluted

8,827,702


8,798,570


8,808,920







 

TAT TECHNOLOGIES AND ITS SUBSIDIARIES

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS







Three months ended March 31,


Year ended

December 31,



2014


2013


2013








CASH FLOWS FROM OPERATING ACTIVITIES:







Net income


$               410


$          1,708


$             2,822

Net loss from discontinued operations


-


(416)


(2,429)

Income from continuing operations


410


2,124


5,251








Adjustments to reconcile net income to net cash provided by operating activities:


420


(629)


1,243








Changes in operating assets and liabilities


446


(1,969)


709








Net cash provided by (used in) operating activities


1,276


(474)


7,203








Cash flows provided by investing activities


4,094


1,712


70








Cash flows provided by (used in)  financing activities


(26)


295


(2,936)








Cash flows provided by discontinued operations


-


990


514








Net increase in cash and cash equivalents


5,344


2,523


4,851








Cash and cash equivalents at beginning of period


19,814


17,786


17,786








Cash and cash equivalents at end of period


25,158


20,309


22,637

Less- Cash and cash equivalents of discontinued operations at end of period


-


3,299


2,823








Cash and cash equivalents of continuing operations at end of period


$          25,158


$        17,010


$           19,814

 

SOURCE TAT Technologies



RELATED LINKS
http://www.tat-technologies.com

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