PETACH TIKVA, Israel, March 9,
2023 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a
global manufacturer and supplier of technologically advanced
solutions in the field of printed circuit boards (PCBs), today
announced its financial results for the full year and fourth
quarter ended December 31, 2022.
Full Year and Fourth Quarter 2022 Highlights
- Revenues were $39.6 million (Q4 -
$10.5 million)
- Operating profit was $3.0 million
(Q4 - $0.8 million)
- Profit before tax was $3.9
million (Q4 - $0.9
million)
- Net profit was $3.2 million or
$0.55 per fully diluted share (Q4 -
$0.8 million or $0.14 per fully diluted share)
- Net cash provided by operating activities amounted to
$3.8 million (Q4 - $1.3 million)
"We are pleased to announce strong growth in revenues and
earnings for the year 2022. This was due to increased
demand for our high-quality printed circuit boards. The growth
in revenues is a testament to the hard work and dedication of our
team, as well as the loyalty of our customers. We are excited to
continue building upon this momentum in the coming year," said
Eli Yaffe, CEO of Eltek.
"The global PCB market is expected to continue to grow in the
coming years, with the military, aerospace and defense sectors
being the key drivers. As a leading provider of PCBs to these
industries, Eltek is well-positioned to capitalize on this trend
and continues to deliver strong results for our shareholders. We
ended 2022 with a 70% growth in backlog.
During Q4 we received final approval from the Israel Innovation
Authority ("IIA") for a 40%, royalty bearing participation in an
approximately $800,000 one-year
development program, which started in January 2023. This program is part of our
investments in CapEx and research and development to bring new,
high-quality products to the market and further drive growth in the
future," continued Mr. Yaffe.
"We have a strong balance sheet and a talented team, and we will
continue to invest in our operations, products and people to
sustain our long-term success," concluded Mr. Yaffe.
2022 Full Year GAAP Financial
Results
Revenues for 2022 were $39.7 million compared to $33.8 million in 2021.
Gross profit for 2022 was $8.3
million (21% of revenues) compared to $6.9 million (20% of revenues) in 2021.
Operating profit for 2022 was $3.0
million compared to operating profit of $1.9 million in 2021.
Financial income for 2022 was $0.9
million compared to financial expense of $0.5 million in 2021. Financial income, which was
primarily generated in the second quarter of 2022, resulted from
the erosion of the NIS against the US dollar.
Profit before income tax for 2022 was $3.9 million compared to $1.5 million in 2021.
Net profit for 2022 was $3.2
million or $0.55 per fully
diluted share compared to net profit of $5.0
million or $0.86 per fully
diluted share in 2021. Net profit in 2021 includes a one-time
tax benefit of $3.5 million.
2022 Full Year Non-GAAP Financial Results
EBITDA for
2022 was a $4.5 million (11% of
revenues) compared to EBITDA of $3.8
million (11% of revenues) in 2021.
Fourth Quarter 2022 GAAP Financial
Results
Revenues for the fourth quarter of 2022 were
$10.5 million compared to
$9.5 million in the fourth quarter of
2021.
Gross profit for the fourth quarter of 2022 was
$2.2 million (21% of revenues)
compared to $2.0 (21% of revenues) in
the fourth quarter of 2021.
Operating profit for the fourth quarter of 2022 was
$0.8 million compared to operating
profit of $0.6 million in the fourth
quarter of 2021.
Profit before income tax for the fourth quarter of 2022
was $0.9 million compared to
$0.2 million in the fourth quarter of
2021.
Net profit for the fourth quarter of 2022 was
$0.8 million or $0.14 per fully diluted share compared to net
profit of $3.8 million or
$0.65 per fully diluted share in the
Fourth quarter of 2021. Net income in the fourth quarter of 2021
includes a one-time tax benefit of $3.6
million.
Fourth Quarter 2022 Non-GAAP Financial Results
EBITDA
for the fourth quarter of 2022 was a $1.2
million (12% of revenues) compared to EBITDA of
$1.1 million (11% of
revenues) in the fourth quarter of 2021.
Conference Call
Today, Thursday, March 9, 2023, at 8:30am Eastern Time (15:30pm Israel Time, 5:30am Pacific Time), Eltek will conduct a
conference call to discuss the results. The call will feature
remarks by Eli Yaffe, Chief
Executive Officer and Ron Freund,
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:
03-918-0691
International: +972-3-918-0691
To Access a Replay of the Call
A replay of the call
will be available for 30 days on the Investor Info section on
Eltek's corporate website at http://www.nisteceltek.com
approximately 24 hours after the conference call is completed.
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 an
Israeli leading company 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 was founded in 1970. The Company's headquarters, R&D,
production and marketing center are located in Israel. Eltek also operates through its
subsidiary in North America 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
Some of the statements
included in this press release may be forward-looking statements
that involve a number of risks and uncertainties including, but not
limited to 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. Any forward-looking statements set forth in this press
release speak only as of the date of this press release. The
information found on our website is not incorporated by reference
into this press release and is included for reference purposes
only.
About our 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.
Eltek
Ltd.
|
Consolidated
Statements of Income
|
(In thousands US$,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
10,479
|
|
9,521
|
|
39,650
|
|
33,823
|
|
|
Costs of
revenues
|
|
(8,267)
|
|
(7,565)
|
|
(31,380)
|
|
(26,926)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
2,212
|
|
1,956
|
|
8,270
|
|
6,897
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
(1,348)
|
|
(1,310)
|
|
(5,207)
|
|
(4,870)
|
|
|
R&D expenses,
net
|
|
(15)
|
|
(23)
|
|
(92)
|
|
(78)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
849
|
|
623
|
|
2,971
|
|
1,949
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income
(expenses), net
|
|
100
|
|
(387)
|
|
887
|
|
(488)
|
|
|
Other income (loss),
net
|
|
-
|
|
-
|
|
-
|
|
41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before income
tax
|
|
949
|
|
236
|
|
3,858
|
|
1,502
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax expenses
(income)
|
|
144
|
|
(3,600)
|
|
664
|
|
(3,537)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Profit
|
|
805
|
|
3,836
|
|
3,194
|
|
5,039
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic net profit per
ordinary share
|
|
0.14
|
|
0.66
|
|
0.55
|
|
0.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net profit per
ordinary share
|
|
0.14
|
|
0.65
|
|
0.55
|
|
0.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of ordinary shares used to compute
|
|
|
|
|
|
|
|
|
|
|
basic net profit per
ordinary share (in thousands)
|
|
5,850
|
|
5,840
|
|
5,848
|
|
5,840
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of ordinary shares used to compute
|
|
|
|
|
|
|
|
|
|
|
diluted net profit per
ordinary share (in thousands)
|
|
5,850
|
|
5,860
|
|
5,848
|
|
5,869
|
|
|
Eltek
Ltd.
|
Unaudited Non-GAAP
EBITDA Reconciliations
|
(In thousands
US$)
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2022
|
|
2021
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
7,366
|
|
9,283
|
Receivables: Trade, net of provision for
doubtful accounts
|
|
10,116
|
|
7,021
|
Other
|
|
282
|
|
798
|
Inventories
|
|
5,130
|
|
4,893
|
Prepaid
expenses
|
|
504
|
|
586
|
|
|
|
|
|
Total current
assets
|
|
23,398
|
|
22,581
|
|
|
|
|
|
Long term
assets:
|
|
|
|
|
Restricted
deposits
|
|
202
|
|
226
|
Severance pay
fund
|
|
59
|
|
66
|
Deferred tax assets and
long term tax receivables, net
|
|
2,496
|
|
3,563
|
Operating lease right
of use assets
|
|
7,693
|
|
8,979
|
Total long term
assets
|
|
10,450
|
|
12,834
|
|
|
|
|
|
Fixed assets, less
accumulated depreciation
|
|
7,674
|
|
7,368
|
|
|
|
|
|
Total
Assets
|
|
41,522
|
|
42,783
|
|
|
|
|
|
Liabilities and
Shareholder's equity
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term credit and
current maturities of long-term debts
|
|
702
|
|
708
|
Accounts payable:
Trade
|
|
4,793
|
|
4,044
|
Other
|
|
4,133
|
|
3,577
|
Short-term operating
lease liabilities
|
|
846
|
|
931
|
|
|
|
|
|
Total current
liabilities
|
|
10,474
|
|
9,260
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
Long term debt,
excluding current maturities
|
|
2,768
|
|
3,921
|
Employee severance
benefits
|
|
280
|
|
344
|
Long-term operating
lease liabilities
|
|
6,980
|
|
8,186
|
|
|
|
|
|
Total long-term
liabilities
|
|
10,028
|
|
12,451
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Ordinary shares, NIS
3.0 par value authorized 10,000,000
shares, issued and outstanding 5,849,678 at December 31,
2022 and 5,840,357 at December 31, 2021
|
|
5,305
|
|
5,296
|
Additional paid-in
capital
|
|
22,862
|
|
22,846
|
Cumulative foreign
currency translation adjustments
|
|
1,189
|
|
3,716
|
Capital
reserve
|
|
1,537
|
|
1,287
|
Accumulated
deficit
|
|
(9,873)
|
|
(12,073)
|
Total shareholders'
equity
|
|
21,020
|
|
21,072
|
Total liabilities
and shareholders' equity
|
|
41,522
|
|
42,783
|
Eltek
Ltd.
|
Unaudited Non-GAAP
EBITDA Reconciliations
|
(In thousands
US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
Income
|
|
805
|
|
3,836
|
|
3,194
|
|
5,039
|
|
Add back
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses
(income), net
|
|
(100)
|
|
387
|
|
(887)
|
|
488
|
|
Income tax expenses
(income)
|
|
144
|
|
(3,600)
|
|
664
|
|
(3,537)
|
|
Depreciation and
amortization
|
|
357
|
|
450
|
|
1,541
|
|
1,781
|
|
Non-GAAP
EBITDA
|
|
1,206
|
|
1,073
|
|
4,512
|
|
3,771
|
|
Eltek
Ltd.
|
Consolidated
Statements of Cash Flows
|
(In thousands
US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
805
|
|
3,836
|
|
3,194
|
|
5,039
|
|
|
Adjustments to
reconcile net income to net cash flows
|
|
|
|
|
|
|
|
|
|
|
provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
357
|
|
450
|
|
1,541
|
|
1,781
|
|
|
Stock-based
compensation
|
|
62
|
|
74
|
|
250
|
|
203
|
|
|
Decrease in deferred
tax assets and long term tax receivable
|
|
151
|
|
(3,585)
|
|
653
|
|
(3,563)
|
|
|
|
|
570
|
|
(3,061)
|
|
2,444
|
|
(1,579)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease (increase) in
operating lease right-of-use assets
|
|
3
|
|
25
|
|
11
|
|
66
|
|
|
Decrease (increase) in
trade receivables
|
|
(446)
|
|
(301)
|
|
(3,941)
|
|
2,260
|
|
|
Decrease (increase) in
other receivables and prepaid expenses
|
|
42
|
|
(161)
|
|
437
|
|
(18)
|
|
|
Decrease (increase) in
inventories
|
|
(463)
|
|
(499)
|
|
(806)
|
|
(1,023)
|
|
|
Increase (decrease) in
trade payables
|
|
380
|
|
424
|
|
1,543
|
|
(451)
|
|
|
Increase (decrease) in
other liabilities and accrued expenses
|
|
402
|
|
164
|
|
972
|
|
(414)
|
|
|
Increase
(decrease) in employee severance benefits, net
|
|
(36)
|
|
-
|
|
(25)
|
|
(5)
|
|
|
|
|
(118)
|
|
(348)
|
|
(1,809)
|
|
415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
1,257
|
|
427
|
|
3,829
|
|
3,875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
Purchase of fixed
assets
|
|
(571)
|
|
(173)
|
|
(3,027)
|
|
(1,535)
|
|
|
Repayment from
insuarance
|
|
-
|
|
44
|
|
-
|
|
44
|
|
|
Restricted
deposits
|
|
-
|
|
-
|
|
(2)
|
|
(156)
|
|
|
Net cash used in
investing activities
|
|
(571)
|
|
(129)
|
|
(3,029)
|
|
(1,647)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
Short- term bank
credit, net
|
|
-
|
|
-
|
|
-
|
|
(377)
|
|
|
Exercise of
options
|
|
-
|
|
-
|
|
25
|
|
-
|
|
|
Dividend
distribution
|
|
(994)
|
|
-
|
|
(994)
|
|
-
|
|
|
Repayment of long-term
loans from bank
|
|
(227)
|
|
(114)
|
|
(669)
|
|
(301)
|
|
|
Proceeds from long-term
loans
|
|
-
|
|
-
|
|
-
|
|
3,063
|
|
|
Repayment of credit
from fixed asset payables
|
|
-
|
|
25
|
|
-
|
|
(261)
|
|
|
Net cash provided by
(used in) financing activities
|
|
(1,221)
|
|
(89)
|
|
(1,638)
|
|
2,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of translation
adjustments
|
|
54
|
|
189
|
|
(1,079)
|
|
196
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents
|
|
(481)
|
|
398
|
|
(1,917)
|
|
4,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the beginning of the period
|
|
7,847
|
|
8,885
|
|
9,283
|
|
4,735
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period
|
|
7,366
|
|
9,283
|
|
7,366
|
|
9,283
|
|
|
Investor Contact
Ron
Freund
Chief Financial Officer
Investor-Contact@nisteceltek.com
+972-3-939-5023
View original
content:https://www.prnewswire.com/news-releases/eltek-ltd-reports-full-year-and-fourth-quarter-2022-financial-results-301767829.html
SOURCE Eltek Ltd.