GEDERA, Israel, Aug. 31, 2016 /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 unaudited results for the three month and six month periods ended June 30, 2016.
Financial Highlights for the Second quarter of 2016 (unaudited)
- Total Revenue: $23.5 million compared to $21.5 million in the second quarter of 2015.
- Operating income: $0.3 million compared to $1.1 million in the second quarter of 2015.
- EBITDA: $1.2 million compared to $1.8 million in the second quarter of 2015.
- Net income (loss): $(2.5) million loss, of which $ 2.4 million is attributable to tax expenses, compared to $0.7 million income in the second quarter of 2015.
- Dividend: The Company declared a cash dividend in the total amount of $3.0 million. The dividend was paid to the shareholders on August 9, 2016. The Company recorded an accrual, related to tax expenses, of approximately $2.4 million of which $ 2 million is related to a deferred tax liability for future distribution of earnings from foreign subsidiaries of the Company, since the Company's Board of Directors considers future distribution of dividends from these earnings to the Company's shareholders.
- Earnings (loss) per share basic and diluted: $(0.28) loss per share compared to $0.08 earnings per share in the second quarter of 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 four segments: (i) Original Equipment Manufacturing or "OEM" of Heat Management Solutions (ii) Heat Transfer Services and Products (iii) Maintenance, Repair and Overhaul or "MRO" services of Aviation Components; and (iv) overhaul and coating of jet engine components.
TAT's activities in the area of OEM Heat Management Solutions are focused on the design, development, manufacture, and sale of the following: (i) a broad range of heat transfer components including 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 to a lesser extent, the manufacture of certain heat transfer product parts. TAT's Limco subsidiary operates an 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 Gears 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's activities in the area of jet engine overhaul includes the overhaul and coating of jet engine components such as turbine vanes and blades, fan blades, variable inlet guide vanes, afterburner flaps and other components.
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 |
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| CONDENSED CONSOLIDATED BALANCE SHEET |
|||
| (In thousands) |
|||
| June 30, |
December 31, |
||
| 2016 |
2015 |
||
| (unaudited) |
(audited) |
||
| ASSETS |
|||
| CURRENT ASSETS: |
|||
| Cash and cash equivalents |
$ 15,703 |
$ 18,688 |
|
| Short-term bank deposits |
6,133 |
8,122 |
|
| Accounts receivable, net |
22,605 |
19,151 |
|
| Other current assets and prepaid expenses |
2,392 |
3,025 |
|
| Inventory, net |
37,099 |
36,664 |
|
| Total current assets |
83,932 |
85,650 |
|
| NON-CURRENT ASSETS: |
|||
| Investment in affiliates |
168 |
169 |
|
| Funds in respect of employee rights upon retirement |
2,527 |
2,626 |
|
| Deferred income taxes |
566 |
890 |
|
| Intangible assets, net |
1,247 |
1,314 |
|
| Property, plant and equipment, net |
20,958 |
18,934 |
|
| Total non-current assets |
25,466 |
23,933 |
|
| Total assets |
$ 109,398 |
$ 109,583 |
|
| LIABILITIES AND EQUITY |
|||
| CURRENT LIABILITIES: |
|||
| Accounts payable |
7,005 |
7,022 |
|
| Dividends declared, not yet paid |
3,000 |
- |
|
| Accrued expenses |
8,160 |
7,815 |
|
| Total current liabilities |
18,165 |
14,837 |
|
| NON CURRENT LIABILITIES: |
|||
| Other long-term liabilities |
67 |
189 |
|
| Liability in respect of employee rights upon retirement |
2,884 |
2,871 |
|
| Deferred income taxes |
2,038 |
262 |
|
| Total non-current liabilities |
4,989 |
3,322 |
|
| Total liabilities |
23,154 |
18,159 |
|
| EQUITY: |
|||
| Share capital |
2,797 |
2,793 |
|
| Additional paid-in capital |
64,682 |
64,529 |
|
| Treasury stock at cost |
(2,088) |
(2,088) |
|
| Accumulated other comprehensive loss |
67 |
(4) |
|
| Retained earnings |
20,786 |
26,194 |
|
| Total shareholders' equity |
86,244 |
91,424 |
|
| Total liabilities and shareholders' equity |
$ 109,398 |
$ 109,583 |
|
| 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, |
||||||||
| 2016 |
2015 |
2016 |
2015 |
2015 |
|||||
| (Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||||
| (Revised) |
(Revised) |
(Revised) |
|||||||
| Revenues: |
|||||||||
| Products |
$ 7,941 |
$ 7,747 |
$ 16,010 |
$ 14,726 |
$ 31,339 |
||||
| Services |
15,589 |
13,723 |
31,154 |
27,230 |
54,268 |
||||
| 23,530 |
21,470 |
47,164 |
41,956 |
85,607 |
|||||
| Cost of goods: |
|||||||||
| Products |
6,341 |
6,034 |
13,032 |
11,588 |
24,466 |
||||
| Services |
12,794 |
11,321 |
25,802 |
22,399 |
47,476 |
||||
| 19,135 |
17,355 |
38,834 |
33,987 |
71,942 |
|||||
| Gross Profit |
4,395 |
4,115 |
8,330 |
7,969 |
13,665 |
||||
| Operating expenses: |
|||||||||
| Research and development, net |
474 |
185 |
738 |
323 |
890 |
||||
| Selling and marketing |
947 |
758 |
1,957 |
1,483 |
2,903 |
||||
| General and administrative |
2,682 |
2,024 |
5,092 |
3,948 |
8,469 |
||||
| Other loss (income) |
(4) |
- |
(3) |
1 |
631 |
||||
| Gain on bargain purchase |
- |
- |
- |
- |
(4,833) |
||||
| 4,099 |
2,967 |
7,784 |
5,755 |
8,060 |
|||||
| Operating income |
296 |
1,148 |
546 |
2,214 |
5,605 |
||||
| Financial expenses, net |
(13) |
(64) |
(32) |
(249) |
(349) |
||||
| Income before taxes on income |
283 |
1,084 |
514 |
1,965 |
5,256 |
||||
| Taxes on income |
2,722 |
351 |
2,908 |
782 |
644 |
||||
| Income (loss) before equity investment |
(2,439) |
733 |
(2,394) |
1,183 |
4,612 |
||||
|
Share in results and sale of equity |
(14) |
- |
(14) |
1,491 |
1,237 |
||||
| Net income (loss) |
$ (2,453) |
$ 733 |
$ (2,408) |
$ 2,674 |
$ 5,849 |
||||
| Basic and diluted income (loss) per share |
|||||||||
| Net income (loss) per share |
$ (0.28) |
$ 0.08 |
$ (0.27) |
$ 0.30 |
$ 0.66 |
||||
| Weighted average number of shares outstanding |
|||||||||
| Basic |
8,828,444 |
8,808,344 |
8,828,444 |
8,808,344 |
8,808,344 |
||||
| Diluted |
8,828,444 |
8,811,044 |
8,828,444 |
8,809,423 |
8,810,689 |
||||
| TAT TECHNOLOGIES AND ITS SUBSIDIARIES |
|||||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|||||||||
| (In thousands) |
|||||||||
| Three months ended |
Six months ended |
Year ended |
|||||||
| June 30, |
December 31, |
||||||||
| 2016 |
2015 |
2016 |
2015 |
2015 |
|||||
| (Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||||
| (Revised) |
(Revised) |
(Revised) |
|||||||
| Net income (loss) |
$ (2,453) |
$ 733 |
$ (2,408) |
$ 2,674 |
$ 5,849 |
||||
| Other comprehensive income |
|||||||||
| Net unrealized gains (losses) from derivatives |
(173) |
- |
192 |
- |
(5) |
||||
| Reclassification adjustments for gains included in net income and inventory |
(74) |
- |
(121) |
- |
1 |
||||
| Total other comprehensive income (loss) |
$ (2,700) |
$ 733 |
$ (2,337) |
$ 2,674 |
$ 5,845 |
||||
| TAT TECHNOLOGIES AND ITS SUBSIDIARIES |
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| CONDENSED CONSOLIDATED STATEMENTS OF CASHFLOWS |
|||||||||
| (In thousands) |
|||||||||
| Three months ended |
Six months ended |
Year ended |
|||||||
| June 30, |
December 31, |
||||||||
| 2016 |
2015 |
2016 |
2015 |
2015 |
|||||
| (Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||||
| (Revised) |
(Revised) |
(Revised) |
|||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: |
|||||||||
| Net income (loss) attributable to TAT Technologies Ltd. shareholders |
$ (2,453) |
$ 733 |
$ (2,408) |
$ 2,674 |
$ 5,849 |
||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||||
| Depreciation and amortization |
880 |
661 |
1,731 |
1,215 |
2,781 |
||||
| Loss on sale of property, plant and equipment |
- |
- |
1 |
1 |
- |
||||
| Interest from short-term bank deposits and restricted deposits |
- |
(15) |
(11) |
(15) |
(33) |
||||
| Loss (gain) from change in fair value of derivatives |
5 |
- |
(48) |
- |
10 |
||||
| Provision for doubtful accounts |
- |
- |
43 |
- |
206 |
||||
| Share in results and sale of equity investment of affiliated Company |
14 |
- |
14 |
(1,491) |
(1,237) |
||||
| Share based compensation |
13 |
- |
27 |
15 |
38 |
||||
| Gain on bargain purchase |
- |
- |
- |
- |
(4,833) |
||||
| Liability in respect of employee rights upon retirement |
(5) |
152 |
13 |
121 |
28 |
||||
| Deferred income taxes, net |
2,218 |
277 |
2,100 |
643 |
(21) |
||||
| Changes in operating assets and liabilities: |
|||||||||
| Increase in trade accounts receivable |
(2,060) |
(1,940) |
(3,497) |
(2,642) |
(2,375) |
||||
| Decrease (increase) in other current assets and prepaid expenses |
1,480 |
(729) |
944 |
(311) |
(85) |
||||
| Increase in inventory |
(677) |
(163) |
(505) |
(1,199) |
(571) |
||||
| Increase (decrease) in trade accounts payable |
(551) |
1,317 |
(124) |
(405) |
436 |
||||
| Increase (decrease) in accrued expenses |
(207) |
(148) |
345 |
1,288 |
525 |
||||
| Increase (decrease) in other long-term liabilities |
25 |
(7) |
(122) |
(14) |
15 |
||||
| Net cash provided by (used in) operating activities |
$ (1,318) |
$ 138 |
$ (1,497) |
$ (120) |
$ 733 |
||||
| CASH FLOWS FROM INVESTING ACTIVITIES: |
|||||||||
| Acquisitions of subsidiary, net of cash acquired |
- |
- |
- |
- |
(1,796) |
||||
| Investment in affiliated company |
(13) |
- |
(13) |
- |
- |
||||
| Proceeds from sale of equity investment of affiliated Company |
- |
- |
- |
3,624 |
3,624 |
||||
| Funds in respect of employee rights upon retirement |
117 |
(85) |
(23) |
(137) |
8 |
||||
| Proceeds from sale of property and equipment |
- |
1 |
6 |
9 |
|||||
| Purchase of property and equipment |
(2,915) |
(846) |
(3,583) |
(1,699) |
(3,315) |
||||
| Investments in short-term deposits |
- |
- |
- |
- |
(8,109) |
||||
| Maturities of short-term deposits |
- |
- |
2,000 |
- |
5,109 |
||||
| Cash flows provided by (used in) investing activities |
$ (2,811) |
$ (931) |
$ (1,618) |
$ 1,794 |
$ (4,470) |
||||
| Cash flows provided by (used in) financing activities |
$ - |
$ - |
$ 130 |
$ - |
$ (469) |
||||
| Net increase (decrease) in cash and cash equivalents |
(4,129) |
(793) |
(2,985) |
1,674 |
(4,206) |
||||
| Cash and cash equivalents at beginning of period |
19,832 |
25,361 |
18,688 |
22,894 |
22,894 |
||||
| Cash and cash equivalents at end of period |
$ 15,703 |
$ 24,568 |
$ 15,703 |
$ 24,568 |
$ 18,688 |
||||
| Three months ended |
Six months ended |
Year ended |
|||||||
| June 30, |
December 31, |
||||||||
| 2016 |
2015 |
2016 |
2015 |
2015 |
|||||
| (Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||||
| (Revised) |
(Revised) |
(Revised) |
|||||||
| SUPPLEMENTARY INFORMATION ON INVESTING ACTIVITIES NOT INVOLVING CASH FLOW: |
|||||||||
| Dividends declared, not yet paid |
$ 3,000 |
$ - |
$ 3,000 |
$ - |
$ - |
||||
For more information of TAT Technologies Ltd., please visit our web-site: www.tat-technologies.com
Guy Nathanzon – CFO
TAT Technologies Ltd.
Tel: 972-8-862-8500
[email protected]
SOURCE TAT Technologies Ltd
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