PETACH TIKVA, Israel, Aug. 21,
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 quarter ended June 30, 2023.
Second Quarter 2023 Highlights
- Revenues were $11.0 million, 21%
up over Q2 2022
- Operating profit was $1.4
million, 300% up over Q2 2022
- Profit before tax was $1.6
million (2022 Q2 - $1.0
million)
- Net income was $1.3 million or
$0.22 per fully diluted share, 74% up
over Q2 2022
- As of June 30, 2023 cash and cash
equivalents amounted $8.3 million,
after full repayment of bank loans.
"We are proud to announce our strong second quarter results for
2023, with a growth of 21% in sales compared to the same quarter
last year. The second quarter is characterized by a relatively low
number of working days due to holidays. Despite this, we managed to
achieve $11 million in sales," said
Eli Yaffe, CEO of Eltek.
"Throughout the quarter, we continued to experience the demand
for our high-end, high-reliability products. In light of the
continued demand for our products, we continue our efforts to
recruit employees and to procure and install new machines that will
enable us to increase manufacturing capacity," continued Mr.
Yaffe.
"Earlier this month, we were informed by the Ministry of
Environmental Protection that it rejected our claim to reduce the
clean air penalty imposed on us. Therefore, we have provided a full
allowance for this penalty in our Q2 interim financial statements
and recorded a one-time expense in the amount of $0.35 million," concluded Mr. Yaffe.
Second Quarter 2023 GAAP Financial Results
Revenues for the second quarter of 2023 were
$11.0 million, compared to
$9.1 million in the second quarter of
2022;
Gross profit for the second quarter of 2023 was
$3.0 million (27% of revenues)
compared to $1.7 million (18% of
revenues) in the second quarter of 2022;
Operating profit for the second quarter of 2023 was
$1.4 million compared to operating
profit of $0.3 million in the second
quarter of 2022;
Profit before income tax for the second quarter of
2023 was $1.6 million compared to
$1.0 million in the second quarter of
2022;
Net income for the second quarter of 2023 was
$1.3 million or $0.22 per fully diluted share compared to net
income of $0.8 million or
$0.13 per fully diluted share in the
second quarter of 2022;
Second Quarter 2023 Non-GAAP Financial Results
EBITDA for the second quarter of 2023 was $1.7 million (15.3% of revenues) compared to
EBITDA of $0.8 million (8.7% of
revenues) in the second quarter of 2022;
First Six Months 2023 GAAP Financial Results
Revenues for the first six months of 2023 were
$22.5 million compared to
$18.8 million in the first six months
of 2022;
Gross profit for the first six months of 2023 was
$6.0 million (26% of revenues)
compared to $3.6 million (19% of
revenues) in the first six months of 2022;
Operating profit for the first six months of 2023 was
$3.0 million compared to operating
profit of $1.0 million in the first
six months of 2022;
Financial income for the first six months of 2023 was
$0.4 million compared to financial
income of $0.7 million in the first
six months of 2022. Financial income primarily results from the
erosion of the NIS against the US dollar.
Profit before income tax for the first six months of
2023 was $3.5 million compared to
$1.7 million in the first six months
of 2022;
Net profit for the first six months of 2023 was
$2.9 million or $0.49 per fully diluted share compared to net
profit of $1.4 million or
$0.24 per fully diluted share in the
first six months of 2022;
First Six Months 2023 Non-GAAP Financial Results
EBITDA for the first six months of 2023 was a
$3.6 million (16% of revenues)
compared to EBITDA of $1.9 million
(10% of revenues) in the first six months of 2022;
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.
Conference Call
Today, Monday, August 21, 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.
Investor Contact
Ron Freund
Chief Financial Officer
Investor-Contact@nisteceltek.com
+972-3-939-5023
Eltek Ltd.
|
Consolidated Statements of
Income
|
(Unaudited, in thousands US$, except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
11,043
|
|
9,089
|
|
22,513
|
|
18,844
|
|
|
Costs of
revenues
|
|
(8,091)
|
|
(7,411)
|
|
(16,546)
|
|
(15,205)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
2,952
|
|
1,678
|
|
5,967
|
|
3,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
(1,543)
|
|
(1,306)
|
|
(2,960)
|
|
(2,598)
|
|
|
R&D expenses,
net
|
|
(15)
|
|
(26)
|
|
(24)
|
|
(44)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
|
1,394
|
|
346
|
|
2,983
|
|
997
|
|
|
Financial income
(expenses), net
|
|
190
|
|
611
|
|
477
|
|
732
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax
|
|
1,584
|
|
957
|
|
3,460
|
|
1,729
|
|
|
Taxes on
income
|
|
271
|
|
204
|
|
585
|
|
344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
1,313
|
|
753
|
|
2,875
|
|
1,385
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
profit per ordinary share
|
|
0.22
|
|
0.13
|
|
0.49
|
|
0.24
|
|
|
Weighted average number
of ordinary shares used to compute
basic net profit per
ordinary share (in thousands)
|
|
5,908
|
|
5,850
|
|
5,879
|
|
5,846
|
|
|
Weighted average number
of ordinary shares used to compute
diluted net profit per
ordinary share (in thousands)
|
|
5,943
|
|
5,850
|
|
5,897
|
|
5,846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eltek Ltd.
|
Consolidated Balance Sheets
|
(Unaudited, in thousands US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December 31,
|
|
|
2023
|
|
2022
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
8,330
|
|
7,366
|
Receivables: Trade, net of provision for
doubtful accounts
|
|
11,383
|
|
10,116
|
Other
|
|
733
|
|
282
|
Inventories
|
|
5,688
|
|
5,130
|
Prepaid
expenses
|
|
326
|
|
504
|
Total current
assets
|
|
26,460
|
|
23,398
|
|
|
|
|
|
Long term assets:
|
|
|
|
|
Restricted
deposits
|
|
-
|
|
202
|
Severance pay
fund
|
|
56
|
|
59
|
Deferred tax assets and
long term tax receivables, net
|
|
1,808
|
|
2,496
|
Operating lease right
of use assets
|
|
6,742
|
|
7,156
|
Total long term
assets
|
|
8,606
|
|
9,913
|
|
|
|
|
|
Fixed assets, less accumulated
depreciation
|
|
6,399
|
|
7,674
|
|
|
|
|
|
Total Assets
|
|
41,465
|
|
40,985
|
|
|
|
|
|
Liabilities and Shareholder's
equity
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Short-term credit and
current maturities of long-term debts
|
|
-
|
|
702
|
Accounts payable:
Trade
|
|
4,690
|
|
4,793
|
Other
|
|
6,352
|
|
4,133
|
Short-term operating
lease liabilities
|
|
788
|
|
846
|
|
|
|
|
|
Total current
liabilities
|
|
11,830
|
|
10,474
|
|
|
|
|
|
Long-term liabilities:
|
|
|
|
|
Long term debt,
excluding current maturities
|
|
-
|
|
2,768
|
Employee severance
benefits
|
|
288
|
|
280
|
Long-term operating
lease liabilities
|
|
6,058
|
|
6,443
|
|
|
|
|
|
Total long-term
liabilities
|
|
6,346
|
|
9,491
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
Ordinary shares
of NIS 3.0 par value – Authorized: 10,000,000 shares at June
30, 2023 and December
31, 2022; Issued and
outstanding: 5,907,715 shares at June 30, 2023 and 5,849,678 shares
at
December 31,
2022
|
|
5,353
|
|
5,305
|
Additional paid-in
capital
|
|
23,113
|
|
22,862
|
Cumulative foreign
currency translation adjustments
|
|
140
|
|
1,189
|
Capital
reserve
|
|
1,681
|
|
1,537
|
Accumulated
deficit
|
|
(6,998)
|
|
(9,873)
|
Total shareholders'
equity
|
|
23,289
|
|
21,020
|
Total liabilities and shareholders'
equity
|
|
41,465
|
|
40,985
|
Eltek Ltd.
|
Unaudited Non-GAAP EBITDA
Reconciliations
|
(In thousands US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
Income
|
|
1,313
|
|
753
|
|
2,875
|
|
1,385
|
|
Add back
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses
(income), net
|
|
(190)
|
|
(611)
|
|
(477)
|
|
(732)
|
|
Income tax
expenses
|
|
271
|
|
204
|
|
585
|
|
344
|
|
Depreciation and
amortization
|
|
301
|
|
445
|
|
630
|
|
880
|
|
Non-GAAP EBITDA
|
|
1,695
|
|
791
|
|
3,613
|
|
1,877
|
|
Eltek Ltd.
|
Consolidated Statement of Cash
flow
|
(Unaudited, in thousands US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
1,313
|
|
753
|
|
2,875
|
|
1,385
|
|
|
Adjustments to
reconcile net income to net cash flows
|
|
|
|
|
|
|
|
|
|
|
provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
301
|
|
445
|
|
630
|
|
880
|
|
|
Stock-based
compensation
|
|
72
|
|
64
|
|
144
|
|
117
|
|
|
Decrease in deferred
tax assets and long term tax receivable
|
|
260
|
|
194
|
|
566
|
|
335
|
|
|
|
|
633
|
|
703
|
|
1,340
|
|
1,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease (increase) in
operating lease right-of-use assets
|
|
11
|
|
(8)
|
|
(22)
|
|
(4)
|
|
|
Decrease (increase) in
trade receivables
|
|
(1,896)
|
|
(1,140)
|
|
(1,784)
|
|
(2,300)
|
|
|
Decrease (increase) in
other receivables and prepaid expenses
|
|
214
|
|
165
|
|
(311)
|
|
83
|
|
|
Decrease (increase) in
inventories
|
|
(496)
|
|
(57)
|
|
(809)
|
|
(731)
|
|
|
Increase (decrease) in
trade payables
|
|
(307)
|
|
301
|
|
105
|
|
786
|
|
|
Increase (decrease) in
other liabilities and accrued expenses
|
|
629
|
|
(204)
|
|
1,477
|
|
302
|
|
|
Increase
(decrease) in employee severance benefits, net
|
|
17
|
|
(2)
|
|
22
|
|
-
|
|
|
|
|
(1,828)
|
|
(945)
|
|
(1,322)
|
|
(1,864)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating
activities
|
|
118
|
|
511
|
|
2,893
|
|
853
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
|
|
|
|
Purchase of fixed
assets
|
|
(406)
|
|
(326)
|
|
(711)
|
|
(615)
|
|
|
Insurance
Proceeds
|
|
2,000
|
|
-
|
|
2,000
|
|
-
|
|
|
Restricted
deposits
|
|
192
|
|
(1)
|
|
192
|
|
(1)
|
|
|
Net cash provided by (used in) investing
activities
|
|
1,786
|
|
(327)
|
|
1,481
|
|
(616)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
|
|
|
|
Exercise of
options
|
|
299
|
|
-
|
|
299
|
|
25
|
|
|
Repayment of long-term
loans from bank
|
|
(1,768)
|
|
(144)
|
|
(3,348)
|
|
(258)
|
|
|
Repayment of credit
from fixed asset payables
|
|
-
|
|
(3)
|
|
-
|
|
(7)
|
|
|
Net cash provided by (used in) financing
activities
|
|
(1,469)
|
|
(147)
|
|
(3,049)
|
|
(240)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of translation
adjustments
|
|
(164)
|
|
(845)
|
|
(361)
|
|
(1,034)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents
|
|
271
|
|
(808)
|
|
964
|
|
(1,037)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the beginning of the period
|
|
8,059
|
|
9,054
|
|
7,366
|
|
9,283
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the end of the
period
|
|
8,330
|
|
8,246
|
|
8,330
|
|
8,246
|
|
|
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SOURCE Eltek Ltd.