TAT Technologies Reports Second Quarter 2015 Results

Aug 10, 2015, 16:10 ET from TAT Technologies

GEDERA, Israel, Aug. 10, 2015 /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 and six month periods ended June 30, 2015.

Financial Highlights for the Second quarter of 2015:

  • Total Revenue: $21.5 million compared to $20.6 million in the second quarter of 2014, increase of 4.2%.
  • Operating income: $1.1 million compared to $0.7 million in the second quarter of 2014.
  • Net income: $0.7 million compared to $0.3 million in the second quarter of 2014.
  • Earnings per share basic and diluted: $0.08 per share compared to $0.04 per share in the second quarter of 2014.
  • Cash and cash equivalents and short-term bank deposits: During the first 6 months of 2015, the cash balance has been increased in $ 1.7 million, from $28 million as of December 31, 2014 to $29.7 million as of June 30, 2015.

Mr. Itsik Maaravi, TAT's President & CEO commented, "We are pleased with the financial results of the second quarter of 2015, reflecting growth in revenue and operating income compared with both the previous quarter of 2015 and the second quarter of 2014.

We continue to strengthen our business and put efforts in leveraging the relationships with our customers. In addition, we continue to focus on expanding our customer base and pipeline in order to increase efficiency and profitability."

The company announced today that it has entered into a definitive agreement to acquire Chromalloy Israel Ltd. ("Chromalloy Israel") for approximately US$ 3.5 million (subject to certain price adjustments) in cash payable at the closing of the transaction. TAT shall pay additional amounts of up to US$ 2 million in the event that Chromalloy Israel meets certain annual revenue targets in 2015 and 2016. The acquisition is expected to close before the end of September 2015.

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.

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

Guy Nathanzon – CFO TAT Technologies Ltd. Tel: 972-8-862-8500 guyn@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 SHEET

(In thousands)

June 30,

December 31,

2015

2014

(unaudited)

(audited)

ASSETS

Current Assets:

Cash and cash equivalents

$ 24,568

$ 22,894

Short-term bank deposits

5,104

5,089

Accounts receivable-trade (net of allowance for doubtful accounts of $113 as of June 30, 2015 and $125 as of December 31, 2014)

18,299

15,657

Other accounts receivable and prepaid expenses

4,691

4,298

Inventories, net

36,619

35,404

Total current assets

89,281

83,342

Long-term assets:

Investment in an affiliated company

-

2,556

Investment in investee company

423

-

Funds in respect of employee rights upon retirement

2,581

2,496

Long-term deferred tax

1,189

1,550

Property, plant and equipment, net

11,958

11,524

Total Long-term assets

16,151

18,126

Total assets

$ 105,432

$ 101,468

LIABILITIES AND EQUITY

Current Liabilities:

Accounts payables trade

5,437

5,886

Other accounts payable and accrued expenses

7,244

5,651

Total current liabilities

12,681

11,537

Long-term liabilities:

Other accounts payable

20

34

Liability in respect of employee rights upon retirement

2,776

2,655

Long-term deferred tax liability

1,781

1,774

Total long-term liabilities

4,577

4,463

Total liabilities

17,258

16,000

EQUITY:

Share capital

2,793

2,793

Additional paid-in capital

64,506

64,491

Treasury stock at cost

(2,088)

(2,088)

Retained earnings

22,963

20,272

Total equity

88,174

85,468

Total liabilities and equity

$ 105,432

$ 101,468

TAT TECHNOLOGIES AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except share data)

Three months ended

Six months ended

Year ended

June 30,

December 31,

2015

2014

2015

2014

2014

(unaudited)

(audited)

Revenues:

Products

$ 7,747

$ 7,434

$ 14,726

$ 15,532

$ 31,363

Services

13,723

13,166

27,230

23,485

49,363

21,470

20,600

41,956

39,017

80,726

Cost of goods:

Products

5,964

5,605

11,444

11,600

23,340

Services

11,153

10,862

22,046

19,656

40,286

17,117

16,467

33,490

31,256

63,626

Gross Profit

4,353

4,133

8,466

7,761

17,100

Operating expenses:

Research and development, net

185

306

323

561

1,070

Selling and marketing

758

889

1,483

1,639

3,203

General and administrative

2,261

2,279

4,428

4,555

9,019

Other loss (income)

-

-

1

(7)

(11)

3,204

3,474

6,235

6,748

13,281

Operating income

1,149

659

2,231

1,013

3,819

Financial income (expenses), net

(64)

18

(249)

29

(1,294)

Loss from dilution of interests in affiliated company

-

(45)

-

(45)

-

Income before taxes on income

1,085

632

1,982

997

2,525

Taxes on income

351

398

782

495

1,360

Net income after taxes on income

734

234

1,200

502

1,165

Share in results and sale of equity investment of affiliated company

-

77

1,491

219

267

Net income

$ 734

$ 311

$ 2,691

$ 721

$ 1,432

Basic and diluted income per share

Net income per share

$ 0.08

$ 0.04

$ 0.31

$ 0.08

$ 0.16

Weighted average number of shares outstanding

Basic

8,808,344

8,805,236

8,808,344

8,805,236

8,805,495

Diluted

8,811,044

8,829,645

8,809,423

8,832,992

8,826,542

TAT TECHNOLOGIES AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)

Three months ended

Six months ended

Year ended December 31,

June 30,

2015

2014

2015

2014

2014

(unaudited)

(audited)

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$ 734

$ 311

$ 2,691

$ 721

$ 1,432

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

1,079

112

493

532

2,465

Changes in operating assets and liabilities

(1,675)

549

(3,304)

995

(5,355)

Net cash provided by (used in) operating activities

138

972

(120)

2,248

(1,458)

Cash flows provided by (used in) investing activities

(931)

(989)

1,794

3,105

4,624

Cash flows used in financing activities

-

(2,883)

-

(2,909)

(2,909)

Net increase (decrease) in cash and cash equivalents

(793)

(2,900)

1,674

2,444

257

Cash and cash equivalents at beginning of period

25,361

25,158

22,894

19,814

22,637

Cash and cash equivalents at end of period

24,568

22,258

24,568

22,258

22,894

SOURCE TAT Technologies



RELATED LINKS

http://www.tat-technologies.com