- Revenues of $34.8 million
in 2019 compared to
$33.9 million in 2018
- Net profit of $1.8 million in
2019 compared to a net loss of $2.6
million in 2018
- Revenues of $8.6 million in
the fourth quarter of
2019 compared to
$7.8 million in the
fourth quarter of
2018
- Net profit of
$370,000 in the
fourth quarter of 2019 compared to a net loss
of $631,000 in
the fourth quarter of 2018
PETACH-TIKVA, Israel,
April 27, 2020 /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 full year and fourth quarter ended December 31, 2019.
Mr. Eli Yaffe, Chief Executive
Officer, commented: "We are pleased with the growth in our
revenues and profitability in the fourth quarter and the
significant change in our full year results. The improved results
reflect the implementation of our previously announced turnaround
plan."
"The outbreak and spread of the Coronavirus has created new
operational and business challenges that we are dealing with. We
see both additional risks and opportunities in this new
environment," concluded Mr. Yaffe.
Highlights of the Full Year of 2019 compared to the Full Year
of 2018
- Revenues for the full year of 2019 amounted to
$34.8 million compared to revenues of
$33.9 million in 2018.
- Gross profit was $6.0
million (17.3% of revenues) in 2019 compared to gross profit
of $2.6 million (7.7% of revenues) in
2018.
- Operating profit was $1.4
million in 2019 compared to an operating loss of
$2.1 million in 2018.
- Net profit was $1.8
million or $0.48 per fully
diluted share in 2019, compared to a net loss of $2.6 million or $1.28 per fully diluted share in 2018.
- EBITDA was $3.8 million in
2019 compared to negative EBITDA of $420,000 in 2018.
- Net cash provided by operating activities amounted to
$2.6 million in 2019 compared to
$813,000 used in operating activities
in 2018.
- Cash and cash equivalents as of December 31, 2019 were $1.6 million compared to $992,000 as of December
31, 2018.
Highlights of the Fourth Quarter of 2019 compared to the
Fourth Quarter of 2018
- Revenues for the fourth quarter of 2019 were
$8.6 million compared to revenues of
$7.8 million in the fourth quarter of
2018.
- Gross profit was $1.5
million (17.0% of revenues) in the fourth quarter of 2019
compared to a gross profit of $603,000 (7.7% of revenues) in the fourth quarter
of 2018.
- Operating profit was $379,000 in the fourth quarter of 2019 compared
to an operating loss of $416,000 in
the fourth quarter of 2018.
- Net profit was $370,000 or
$0.08 per fully diluted share in the
fourth quarter of 2019 compared to a net loss of $631,000 or $0.31
per fully diluted share in the fourth quarter of 2018.
- EBITDA was $817,000 in the
fourth quarter of 2019 compared to negative EBITDA of $43,000 in the fourth quarter of 2018.
- Net cash used in operating activities amounted to
$141,000 in the fourth quarter of
2019 compared to $136,000 of cash
provided from operating activities in the fourth quarter of
2018.
Use of Non-GAAP Financial Information
The Company reports financial results in accordance with U.S.
GAAP and herein provides some non-GAAP measures, including EBITDA.
These non-GAAP measures are not in accordance with, nor are they a
substitute for, GAAP measures. These 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 the
non-GAAP measures presented to evaluate and manage the Company's
operations internally. The Company 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.
Conference Call
Eltek will conduct a conference call to discuss the results
today, Monday, April 27, 2019, at
8:30 a.m. Eastern Time. The call will
feature remarks by Eli Yaffe, Chief
Executive Officer and Alon Mualem,
Chief Financial Officer.
To participate, please call the following teleconference
numbers. Please allow for additional time to connect prior to the
call:
United States:
1-888-668-9141
Israel: 03-9180609
International: +972-3-9180609
At:
8:30 a.m. Eastern
Time
5:30 a.m. Pacific Time
15:30 p.m. Israel Time
A replay of the call will be available through the Investor Info
section on Eltek's corporate website at http://www.nisteceltek.com
approximately 24 hours after the conference call is completed and
will be archived for 30 days.
About Eltek
Eltek – "Innovation Across the Board", is a global manufacturer
and supplier of technologically advanced solutions in the field of
printed circuit boards (PCBs), 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 is ITAR compliant and has AS-9100 and NADCAP
Electronics certifications. Its customers include leading companies
in the defense, aerospace and medical industries in Israel, the United
States, Europe and
Asia.
Eltek, which was founded in 1970, has its headquarters in
Israel Eltek also operates through
its subsidiaries in North America
and in Europe and by agents and
distributors in Europe,
India, South Africa and South America.
For more information, visit Eltek's web site at
www.nisteceltek.com.
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, the impact of the Coronavirus
on the economy and our operations, 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.
Eltek
Ltd.
|
Consolidated
Statements of Operations
|
(In thousands US$,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2019
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
Revenues
|
8,582
|
7,827
|
|
34,794
|
|
33,939
|
|
Costs of
revenues
|
(7,124)
|
(7,224)
|
|
(28,787)
|
|
(31,342)
|
|
Gross
profit
|
1,458
|
603
|
|
6,007
|
|
2,597
|
|
Selling, general and
administrative expenses
|
(1,063)
|
(1,022)
|
|
(4,604)
|
|
(4,669)
|
|
Impairment loss on
goodwill
|
0
|
0
|
|
0
|
|
0
|
|
R&D expenses,
net
|
(16)
|
3
|
|
(16)
|
|
-
|
|
Operating profit
(loss)
|
379
|
(416)
|
|
1,387
|
|
(2,072)
|
|
Financial expenses,
net
|
(32)
|
(211)
|
|
(440)
|
|
(475)
|
|
Other income,
net
|
48
|
3
|
|
923
|
|
3
|
|
|
|
|
|
|
|
|
|
|
Loss before income
tax
|
347
|
(627)
|
|
947
|
|
(2,547)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss)
before income tax
|
395
|
(624)
|
|
1,870
|
|
(2,544)
|
|
|
|
|
|
|
|
|
|
|
Tax
expenses
|
(25)
|
(7)
|
|
(77)
|
|
(63)
|
|
|
|
|
|
|
|
|
|
|
Net Profit
(loss)
|
370
|
(631)
|
|
1,793
|
|
(2,607)
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to non controlling interest
|
0
|
0
|
|
0
|
|
0
|
|
Net loss attributable
to non controlling interest
|
|
|
|
|
Net Profit (loss)
attributable to Eltek Ltd.
|
369.73
|
(631)
|
|
1,792.88
|
|
(2,607)
|
|
בקרה
|
|
370
|
-630
|
|
1,793
|
|
-2,607
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
profit (loss) per ordinary share
|
0.08
|
(0.31)
|
|
0.48
|
|
(1.28)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares
|
|
|
|
|
used to compute basic
and diluted net profit (loss)
|
|
|
|
|
per ordinary share
(in thousands)
|
4,380
|
2,029
|
|
3,734
|
|
2,029
|
|
|
|
|
|
|
|
|
|
|
Eltek
Ltd.
|
Consolidated
Balance Sheets
|
(In thousands
US$)
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
December
31,
|
|
|
|
|
|
|
|
2019
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
1,628
|
992
|
|
|
|
|
|
Receivables: Trade, net of provision for
doubtful accounts
|
7,480
|
5,682
|
|
|
|
|
|
Other
|
145
|
868
|
|
|
|
|
|
Inventories
|
3,735
|
3,611
|
|
|
|
|
|
Prepaid
expenses
|
530
|
292
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
13,518
|
11,445
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long term
assets
|
0
|
0
|
|
|
|
|
|
Long term
assets
|
|
|
|
|
|
|
|
Severance pay
fund
|
60
|
53
|
|
|
|
|
|
Long term prepaid
expenses
|
-
|
39
|
|
|
|
|
|
Operating lease right
of use assets
|
2,490
|
-
|
|
|
|
|
|
Total long term
assets
|
2,550
|
92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed assets, less
accumulated depreciation
|
6,761
|
6,623
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
22,829
|
18,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholder's equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Short-term credit and
current maturities of long-term debts
|
|
2,120
|
6,606
|
|
|
|
|
|
Short-term credit
from related party
|
|
3,472
|
2,668
|
|
|
|
|
|
Accounts payable:
Trade
|
4,673
|
4,108
|
|
|
|
|
|
Related parties
|
-
|
0
|
|
|
|
|
|
Other
|
3,118
|
3,377
|
|
|
|
|
|
Short-term operating
lease liabilities
|
1,383
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
14,766
|
16,759
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
|
|
Long term debt,
excluding current maturities
|
387
|
308
|
|
|
|
|
|
Employee severance
benefits
|
268
|
211
|
|
|
|
|
|
Deferred tax
liabilities
|
45
|
-
|
|
|
|
|
|
Long-term operating
lease liabilities
|
1,094
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total long-term
liabilities
|
1,794
|
519
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
Ordinary shares, NIS
3.0 par value authorized 10,000,000 shares, issued and
outstanding 4,380,268 and 2,028,552 at December 31, 2019 and
December 31, 2018, respectively
|
|
3,964
|
1,985
|
|
|
|
|
|
Additional paid-in
capital
|
|
18,583
|
17,270
|
|
|
|
|
|
Cumulative foreign
currency translation adjustments
|
|
2,479
|
2,340
|
|
|
|
|
|
Capital
reserve
|
|
963
|
800
|
|
|
|
|
|
Accumulated
deficit
|
|
(19,720)
|
(21,513)
|
|
|
|
|
|
Shareholders'
equity
|
|
6,269
|
882
|
|
|
|
|
|
Non controlling
interest
|
|
0
|
0
|
|
|
|
|
|
Total
equity
|
|
6,269
|
882
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
22,829
|
18,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eltek
Ltd.
|
Unaudited Non-GAAP
EBITDA Reconciliations
|
(In thousands
US$)
|
|
|
|
|
|
|
|
|
Non-GAAP EBITDA
Reconciliations
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2019
|
2018
|
|
2019
|
|
2018
|
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net Income
(loss)
|
|
370
|
(631)
|
|
1,793
|
|
(2,607)
|
Add back
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
|
32
|
211
|
|
440
|
|
475
|
Income tax
expense
|
|
25
|
7
|
|
77
|
|
63
|
Impairment loss on
goodwill
|
|
0
|
0
|
|
0
|
|
0
|
Depreciation and
amortization
|
|
390
|
370
|
|
1,508
|
|
1,649
|
Non-GAAP
EBITDA
|
|
817
|
(43)
|
|
3,818
|
|
(420)
|
Eltek
Ltd.
|
Consolidated
Statement of Cash flow
|
(In thousands
US$)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2019
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(loss)
|
|
370
|
(631)
|
|
1,793
|
|
(2,607)
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net loss to net
|
|
|
|
|
|
|
|
|
cash flows
provided by operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
390
|
367
|
|
1,508
|
|
1,649
|
|
Capital loss on
disposal of fixed assets, net
|
|
-
|
101
|
|
-
|
|
101
|
|
Stock-based
compensation
|
|
53
|
56
|
|
141
|
|
56
|
|
Transaction with
controlling shareholder
|
|
(22)
|
49
|
|
22
|
|
49
|
|
Revaluation of long
term loans
|
|
(2)
|
6
|
|
(38)
|
|
29
|
|
Increase in deferred
tax liabilities
|
|
45
|
-
|
|
45
|
|
-
|
|
Impairment of
goodwill
|
|
-
|
|
|
|
|
-
|
|
|
|
464
|
579
|
|
1,678
|
|
1,884
|
|
|
|
|
|
|
|
|
|
|
Decrease (Increase)
in operating lease right-of-use assets
|
|
8
|
-
|
|
(3)
|
|
-
|
|
Decrease in operating
lease liabilities
|
|
|
-
|
|
|
|
-
|
|
Decrease (increase)
in trade receivables
|
|
(565)
|
1,264
|
|
(1,277)
|
|
790
|
|
Decrease (Increase)
in other receivables and prepaid expenses
|
|
(58)
|
155
|
|
598
|
|
467
|
|
Decrease (increase)
in inventories
|
|
77
|
631
|
|
175
|
|
(30)
|
|
Increase
(decrease) in trade payables
|
|
15
|
(1,518)
|
|
107
|
|
(871)
|
|
Decrease in other
liabilities and accrued expenses
|
|
(473)
|
(309)
|
|
(529)
|
|
(443)
|
|
Increase (decrease)
in employee severance benefits, net
|
|
21
|
(35)
|
|
36
|
|
(3)
|
|
|
|
(975)
|
188
|
|
(893)
|
|
(90)
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by (used in) operating activities
|
|
(141)
|
136
|
|
2,578
|
|
(813)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Owners
investment
|
|
|
|
|
|
|
|
|
Purchase of fixed
assets
|
|
(263)
|
(425)
|
|
(806)
|
|
(619)
|
|
Purchase of
Intangible asset
|
|
-
|
|
|
-
|
|
-
|
|
Purchase of
Intangible asset
|
|
-
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
(263)
|
(425)
|
|
(806)
|
|
(619)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Short- term bank
credit, net
|
|
135
|
30
|
|
(4,181)
|
|
986
|
|
Short- term
shareholder loan
|
|
2
|
(40)
|
|
561
|
|
1,390
|
|
Issuance of ordinary
shares in rights offering, net
|
|
-
|
-
|
|
3,298
|
|
-
|
|
Repayment of
long-term loans from bank
|
|
(216)
|
(220)
|
|
(891)
|
|
(910)
|
|
Proceeds from
long-term loans
|
|
(0)
|
377
|
|
558
|
|
378
|
|
Repayment of credit
from fixed asset payables
|
|
(188)
|
(83)
|
|
(477)
|
|
(317)
|
|
Net cash provided
by (used in) financing activities
|
|
(267)
|
64
|
|
(1,132)
|
|
1,527
|
|
|
|
|
|
|
|
|
|
|
Effect of
translation adjustments
|
|
11
|
15
|
|
(4)
|
|
10
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
(660)
|
(210)
|
|
636
|
|
105
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of the period
|
|
2,288
|
1,202
|
|
992
|
|
887
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at period end
|
|
1,628
|
992
|
|
1,628
|
|
992
|
|
Investor Contact:
Alon
Mualem
Chief Financial Officer
alonm@nisteceltek.com
+972-3-9395023
View original
content:http://www.prnewswire.com/news-releases/eltek-reports-full-year-and-fourth-quarter-2019-financial-results-301047450.html
SOURCE Eltek Ltd.