TAT Technologies Reports First Quarter 2014 Results

May 15, 2014, 15:57 ET from TAT Technologies

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