Eltek Reports 2016 Second Quarter Financial Results
- Revenues of $9.9 million in the Second Quarter of 2016
- 10% growth in sales to the North American market compared to Q2-2015
- Gross profit of $1.5 million
- Net profit of $213,000
PETACH-TIKVA, Israel, Aug. 10, 2016 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards, announced today its financial results for the second quarter ended June 30, 2016.
Mr. Yitzhak Nissan, Chairman of the Board and Chief Executive Officer, commented: "Revenues in the second quarter of 2016 amounted to $9.9 million, slightly lower (5%) than revenues in the second quarter of last year. The revenues reflect the continued competition in the Israeli market for high end products. Revenues from the North American market in the second quarter of 2016 grew by 12% as compared to the first quarter of 2016 and amounted to $2.0 million. Our focus on profitability by improving production processes and closely monitoring expenses, led us to a net profit of $213,000 in the second quarter of 2016.
"We remain focused on growth in the global markets, which we expect will continue to have a positive effect on our revenues," Mr. Nissan concluded.
Highlights of the Second Quarter of 2016
- Revenues for the second quarter of 2016 were $9.9 million compared to $10.4 million in the second quarter of 2015
- Gross profit was $1.5 million (14.8% of revenues) compared to gross profit of $1.9 million (18.3% of revenues) in the second quarter of 2015. The decrease in gross profit and gross margins reflects the decreased sales, while a significant portion of our cost of sales remained constant.
- Operating profit was $244,000 compared to operating profit of $543,000 in the second quarter of 2015.
- Net profit was $213,000 or $0.02 per fully diluted share compared to net profit of $424,000 or $0.04 per fully diluted share in the second quarter of 2015.
- EBITDA amounted to $754,000 (7.6% of revenues) compared to EBITDA of $1.0 million (10% of revenues) in the second quarter of 2015.
- Net cash used by operating activities amounted to $37,000 compared to net cash used by operating activities of $118,000 in the second quarter of 2015. The improvement is mainly attributable to a decrease in working capital requirements.
- Cash and cash equivalents as of June 30, 2016 were $894,000 compared to $994,000 as of June 30, 2015.
Highlights for the First Six Months of 2016
- Revenues for the first six months of 2016 were $19.7 million compared to $20.1 million in the first six months of 2015.
- Gross profit was $2.4 million (12.2% of revenues) compared to gross profit of $3.1 million (15.6% of revenues) in the first six months of 2015.
- Operating loss was $48,000 compared to operating profit of $435,000 in the first six months of 2015.
- Net loss was $171,000, or $0.02 per fully diluted share compared to net profit of $190,000 or $0.02 per fully diluted share in the first six months of 2015.
- EBITDA amounted to $921,000 (4.7% of revenues) compared to EBITDA of $1.4 million (6.7% of revenues) in the first six months of 2015.
- Net cash provided by operating activities amounted to $853,000 compared to net cash used by operating activities of $289,000 in the first six months of 2015. The improvement is mainly attributable to a decrease in working capital requirements.
Conference Call
Today, Wednesday, August 10, 2016 at 9:30 a.m. Eastern Time, Eltek will conduct a conference call to discuss the results. The call will feature remarks by Mr. Yitzhak Nissan, Chairman of the Board of Directors and Chief Executive Officer, Roberto Tulman, Deputy CEO and Chief Technology Officer, and Mr. Amnon Shemer, Chief Financial Officer.
To participate, please call the following teleconference numbers. Please allow for additional time to connect prior to the call:
| United States: |
1-866-860-9642 |
| Israel: |
03-9180688 |
| International: |
+972-3-9180688 |
| At: |
|
| 9:30 a.m. Eastern Time |
|
| 6:30 a.m. Pacific Time |
|
| 16:30 p.m. Israel Time |
|
A replay of the call will be available through the Investor Info section on Eltek's corporate website at www.nisteceltek.com approximately 24 hours after the conference call is completed and will be archived for 30 days.
(Tables follow)
About Eltek
Eltek – "Innovation across the board", is a global manufacturer and supplier of technologically advanced solutions in the field of Printed Circuit Boards, and is the Israeli leader in this industry. PCBs are the core circuitry of most electronic devices. Eltek specializes in the manufacture and supply of complex and high quality PCBs, HDI, multilayered and flex-rigid boards for the high-end market. Eltek has ITAR, AS-9100 and NADCAP Electronics permits and its customers include top-of-the-line companies in the defense, aerospace and medical industries in Israel, the United States, Europe and Asia.
Eltek was founded in 1970. The Company's headquarters, and R&D, production and marketing center are located in Israel. Eltek also operates through its subsidiaries, Eltek USA (100%) in North America and Kubatronik (79%) in Europe, and by agents and distributors in Europe, India, South Africa and South America.
For additional information, visit Eltek's web site at www.nisteceltek.com.
Use of Non-GAAP Financial Information
The Company reports financial results in accordance with U.S. GAAP and includes some non-GAAP measures, such as EBITDA. These non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. The non-GAAP measures are intended to supplement the Company's presentation of its financial results that are prepared in accordance with GAAP. The Company uses EBITDA to evaluate and manage its internal operations and is also providing this information to assist investors in performing additional financial analysis. Reconciliation between the Company's results on a GAAP and non-GAAP basis is provided in a table below.
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.
Investor Contact:
Nir Zalik
KM Investor relations
Tel: +972- 3-5167620
[email protected]
www.km-ir.co.il
Amnon Shemer
Chief Financial Officer
[email protected]
+972-3-9395023
| Eltek Ltd. |
|||||||||
| Consolidated Statements of Operations |
|||||||||
| (In thousands US$, except per share data) |
|||||||||
| Three months ended |
Six months ended |
||||||||
| June 30, |
June 30, |
||||||||
| 2016 |
2015 |
2016 |
2015 |
||||||
| Revenues |
9,904 |
10,383 |
19,705 |
20,100 |
|||||
| Costs of revenues |
(8,442) |
(8,481) |
(17,305) |
(16,972) |
|||||
| Gross profit |
1,462 |
1,902 |
2,400 |
3,128 |
|||||
| Selling, general and administrative expenses |
(1,186) |
(1,286) |
(2,384) |
(2,585) |
|||||
| R&D expenses, net |
(32) |
(73) |
(64) |
(108) |
|||||
| Operating profit (loss) |
244 |
543 |
(48) |
435 |
|||||
| Financial expenses, net |
(37) |
(87) |
(98) |
(205) |
|||||
| Profit (loss) before other income, net |
207 |
456 |
(146) |
230 |
|||||
| Other income, net |
0 |
3 |
0 |
5 |
|||||
| Profit (loss) before income tax expenses |
208 |
459 |
(146) |
235 |
|||||
| Tax expenses |
(25) |
(17) |
(48) |
(31) |
|||||
| Net Profit (loss) |
182 |
442 |
(194) |
204 |
|||||
| Net loss attributable to non controlling interest |
(30) |
18 |
(23) |
14 |
|||||
| Net Profit (loss) attributable to Eltek Ltd. |
213 |
424 |
(171) |
190 |
|||||
| Earnings per share |
|||||||||
| Basic and diluted net gain (loss) per ordinary share |
0.02 |
0.04 |
(0.02) |
0.02 |
|||||
| Weighted average number of ordinary shares |
|||||||||
| used to compute basic and diluted net gain (loss) per |
|||||||||
| ordinary share (in thousands) |
10,143 |
10,143 |
10,143 |
10,143 |
|||||
| Eltek Ltd. |
||||
| Consolidated Balance Sheets |
||||
| (In thousands US$) |
||||
| June 30 |
||||
| 2016 |
2015 |
|||
| Assets |
||||
| Current assets |
||||
| Cash and cash equivalents |
894 |
994 |
||
| Receivables: Trade, net of provision for doubtful accounts |
7,548 |
8,185 |
||
| Other |
222 |
504 |
||
| Inventories |
4,618 |
5,278 |
||
| Prepaid expenses |
227 |
274 |
||
| Total current assets |
13,509 |
15,235 |
||
| Deferred taxes |
1,066 |
1,089 |
||
| Assets held for employees' severance benefits |
49 |
50 |
||
| Fixed assets, less accumulated depreciation |
9,747 |
9,971 |
||
| Intangible asset |
301 |
215 |
||
| Total assets |
24,672 |
26,560 |
||
| Liabilities and Shareholder's equity |
||||
| Current liabilities |
||||
| Short-term credit and current maturities of long-term debts |
1,373 |
2,302 |
||
| Accounts payable: Trade |
5,778 |
6,629 |
||
| Other |
4,611 |
4,733 |
||
| Total current liabilities |
11,762 |
13,664 |
||
| Long-term liabilities |
||||
| Long term debt, excluding current maturities |
2,423 |
2,921 |
||
| Employee severance benefits |
296 |
206 |
||
| Total long-term liabilities |
2,719 |
3,127 |
||
| Equity |
||||
| Ordinary shares, NIS 0.6 par value authorized 50,000,000 shares, issued and outstanding 10,142,762 |
1,985 |
1,985 |
||
| Additional paid-in capital |
17,270 |
17,270 |
||
| Cumulative foreign currency translation adjustments |
2,037 |
2,241 |
||
| Capital reserve |
695 |
695 |
||
| Accumulated deficit |
(11,679) |
(12,359) |
||
| Shareholders' equity |
10,308 |
9,832 |
||
| Non controlling interest |
(117) |
(63) |
||
| Total equity |
10,191 |
9,769 |
||
| Total liabilities and shareholders' equity |
24,672 |
26,560 |
||
| Eltek Ltd. |
|||||||||
| Unaudited Non-GAAP EBITDA Reconciliations |
|||||||||
| (In thousands US$) |
|||||||||
| Non-GAAP EBITDA Reconciliations |
Three months ended |
Six months ended |
|||||||
| June 30, |
June 30, |
||||||||
| 2016 |
2015 |
2016 |
2015 |
||||||
| GAAP net Income (loss) |
213 |
424 |
(171) |
190 |
|||||
| Add back items: |
|||||||||
| Financial expenses (income), net |
37 |
87 |
98 |
205 |
|||||
| Income tax expense |
25 |
17 |
48 |
31 |
|||||
| Depreciation and amortization |
479 |
508 |
946 |
926 |
|||||
| Adjusted EBITDA |
754 |
1,036 |
921 |
1,352 |
|||||
| Eltek Ltd. |
|||||||||
| Consolidated Statement of Cash flows |
|||||||||
| (In thousands US$, except per share data) |
|||||||||
| Three months ended |
Six months ended |
||||||||
| June 30, |
June 30, |
||||||||
| 2016 |
2015 |
2016 |
2015 |
||||||
| Cash flows from operating activities: |
|||||||||
| Net Income (loss) |
182 |
442 |
(194) |
204 |
|||||
| Adjustments to reconcile net loss to net |
|||||||||
| cash flows provided by operating activities: |
|||||||||
| Depreciation and amortization |
479 |
432 |
946 |
850 |
|||||
| Capital lose on disposal of fixed assets, net |
76 |
- |
76 |
||||||
| Revaluation of long term loans |
- |
5 |
1 |
3 |
|||||
| Decrease (increase) in Deferred Tax |
7 |
- |
14 |
- |
|||||
| 487 |
514 |
961 |
929 |
||||||
| Decrease (increase) in trade receivables |
(15) |
(301) |
575 |
284 |
|||||
| Decrease (increase) in other receivables and prepaid expenses |
(17) |
57 |
18 |
102 |
|||||
| Decrease (increase) in inventories |
(232) |
(281) |
(106) |
(443) |
|||||
| Increase (decrease) in trade payables |
(435) |
(320) |
(354) |
(750) |
|||||
| Increase (decrease) in other liabilities and accrued expenses |
(11) |
(200) |
(49) |
(566) |
|||||
| Increase (decrease) in employee severance benefits, net |
5 |
(28) |
3 |
(49) |
|||||
| (706) |
(1,074) |
86 |
(1,422) |
||||||
| Net cash provided by (used in) operating activities |
(37) |
(118) |
853 |
(289) |
|||||
| Cash flows from investing activities: |
|||||||||
| Owners investment |
|||||||||
| Purchase of fixed assets |
(238) |
(268) |
(330) |
(493) |
|||||
| Purchase of Intangible asset |
(14) |
- |
(21) |
- |
|||||
| Net cash used in investing activities |
(251) |
(268) |
(351) |
(493) |
|||||
| Cash flows from financing activities: |
|||||||||
| Increase (decrease) in short- term credit |
577 |
581 |
91 |
(914) |
|||||
| Repayment of long-term loans from bank |
(175) |
(52) |
(330) |
(18) |
|||||
| Proceeds from long-term loans |
- |
- |
- |
1,707 |
|||||
| Repayment of credit from fixed asset payables |
(137) |
(127) |
(394) |
(295) |
|||||
| Net cash provided by (used in) financing activities |
265 |
403 |
(634) |
480 |
|||||
| Effect of translation adjustments |
(20) |
73 |
(12) |
167 |
|||||
| Net increase (decrease) in cash and cash equivalents |
(44) |
90 |
(144) |
(135) |
|||||
| Cash and cash equivalents at beginning of the period |
938 |
904 |
1,038 |
1,129 |
|||||
| - |
|||||||||
| Cash and cash equivalents at period end |
894 |
994 |
894 |
994 |
|||||
SOURCE Eltek Ltd.
Share this article