The 29.4% decrease in net income for
the three month period ended March 31, 2009 compared with the three month period ended
March 31, 2008, is primarily attributable to the decrease in the net income of our 62%
held subsidiary, Limco-Piedmont from $1.0 million in the three month period ended March
31, 2008 to a loss of $0.2 million in the three month period ended March 31, 2009
partially offset by improved results for the Companys operations in Israel for the
three month period ended March 31, 2009 compared with the three month period ended March
31, 2008.
Dr.
Shmuel Fledel, TATs CEO commented: The first quarter of year 2009
saw encouraging revenue growth for the TAT group, compared to the same period
ended March 31, 2008, in large part due to our acquisition on August 18, 2008 of
70% of Bental Industries Ltd. We have improved our results of operation in
Israel while experiencing a decrease in our revenues and gross margins in our
operations in the U.S.. We are taking aggressive expense control measures,
including the consolidation of our two US based operating entities into one
location, in order to further improve the results of operations in the
future.
About TAT Technologies
Ltd.
TAT provides a variety of services
and products to the military and commercial aerospace and ground defense industries
through its Gedera facility in Israel, as well as through its subsidiaries, Bental
Industries Ltd., or Bental, in Israel and Limco in the U.S.
TAT operates under four operational
segments: (i) OEM of Heat Transfer products (ii) OEM of Electric Motion Systems (iii) MRO
services; and (iv) parts services, each with the following characteristics.
TATs activities in the area of
OEM of Heat Transfer products primarily relate to the (i) design, development, manufacture
and sale of 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; and (ii) manufacture and sale of
environmental control and cooling systems and (iii) a variety of other electronic and
mechanical aircraft accessories and systems such as pumps, valves, power systems and
turbines.
TATs activities in the area of
OEM of Electric Motion Systems primarily relate to the design, development, manufacture
and sale of a broad range of electrical motor applications for airborne and ground
systems. TAT activities in this segment commenced with the acquisition of Bental in August
2008 and accordingly, the results in this segment for fiscal year 2008 are not compared
with the previous years.
TATs MRO services include the
remanufacture, overhaul and repair of heat transfer equipment and other aircraft
components, APUs, propellers and landing gear. TATs Limco subsidiary operates FAA
certified repair stations, which provide aircraft component MRO services for airlines, air
cargo carriers, maintenance service centers and the military.
TATs parts segment focuses on
inventory management and sale of APU parts, propellers and landing gear. TAT offers parts
services for commercial, regional and charter airlines and business aircraft owners.
TATs executive offices are
located in the Reem Industrial Park, Neta Boulevard, Bnei Ayish, Gedera 70750,
Israel, and TATs telephone number is 972-8-862-8500.
Safe Harbor for
Forward-Looking Statements
This press release contains
forward-looking statements that are subject to risks and uncertainties. Factors that could
cause actual results to differ materially from these forward-looking statements include,
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, and other risks
detailed from time to time in the Companys filings with the Securities and Exchange
Commission. 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. Shareholders 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 SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
|
March 31,
2009
|
March 31,
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
Cash and cash equivalents
|
|
|
$
|
21,091
|
|
$
|
17,509
|
|
Marketable securities
|
|
|
|
22,309
|
|
|
22,886
|
|
Trade accounts receivable (net of allowance for doubtful
|
|
|
accounts of $176 and $93 at March 31, 2009 and March 31,
|
|
|
2008, respectively)
|
|
|
|
19,569
|
|
|
17,169
|
|
Inventories
|
|
|
|
34,579
|
|
|
32,607
|
|
Other accounts receivable and prepaid expenses
|
|
|
|
7,127
|
|
|
4,492
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
|
104,675
|
|
|
94,663
|
|
|
|
|
Funds in respect of employee right upon retirement
|
|
|
|
3,764
|
|
|
3,997
|
|
Property, plant and equipment, net
|
|
|
|
14,905
|
|
|
12,509
|
|
Intangible assets, net
|
|
|
|
1,946
|
|
|
1,634
|
|
Goodwill
|
|
|
|
5,764
|
|
|
4, 780
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
131,054
|
|
$
|
117,583
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current Liabilities:
|
|
|
Current maturities of long-term loans
|
|
|
|
138
|
|
|
-
|
|
Trade accounts payables
|
|
|
|
8,437
|
|
|
9,328
|
|
Accounts payables for dividend
|
|
|
|
4,463
|
|
|
-
|
|
Other accounts payable and accrued expenses
|
|
|
|
5,941
|
|
|
4,418
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
18,979
|
|
|
13,746
|
|
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES:
|
|
|
Long-term loans, net of current maturities
|
|
|
|
6,385
|
|
|
-
|
|
Liability in respect of employee rights upon retirement
|
|
|
|
4,359
|
|
|
4,145
|
|
Long-term deferred tax liability
|
|
|
|
1,024
|
|
|
548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,768
|
|
|
4,693
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY:
|
|
|
Share capital
|
|
|
Ordinary shares of NIS 0.9 par value - Authorized:
|
|
|
10,000,000 shares at March 31, 2009 and 2008; Issued and
|
|
|
outstanding: 6,548,021 shares and 6,542,671 shares at March
|
|
|
31, 2009 and 2008, respectively
|
|
|
|
2,204
|
|
|
2,201
|
|
Additional paid-in capital
|
|
|
|
39,667
|
|
|
39,356
|
|
Accumulated other comprehensive loss
|
|
|
|
(1,918
|
)
|
|
-
|
|
Treasury stock, at cost, 4,650 shares at March 31, 2009
|
|
|
|
(26
|
)
|
|
-
|
|
Retained earnings
|
|
|
|
32,614
|
|
|
32,787
|
|
|
|
|
|
|
Total shareholders equity
|
|
|
|
72,541
|
|
|
74,344
|
|
|
|
|
|
|
Noncontrolling interest
|
|
|
|
27,766
|
|
|
24,800
|
|
|
|
|
|
|
|
|
|
Total equity:
|
|
|
|
100,307
|
|
|
99,144
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
|
$
|
131,054
|
|
$
|
117,583
|
|
|
|
|
|
|
TAT TECHNOLOGIES AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share data)
|
Three months ended
March 31,
|
|
2009
|
2008
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
MRO services
|
|
|
$
|
11,484
|
|
$
|
12,985
|
|
OEM - Heat Transfer products
|
|
|
|
6,686
|
|
|
5,123
|
|
OEM - Electric Motion Systems
|
|
|
|
3,736
|
|
|
-
|
|
Parts services
|
|
|
|
2,637
|
|
|
4,135
|
|
|
|
|
|
|
|
|
|
|
24,543
|
|
|
22,243
|
|
|
|
|
|
|
|
|
|
Cost and operating expenses
|
|
|
|
|
|
Cost of revenue
|
|
|
|
18,106
|
|
|
16,406
|
|
Research and development costs
|
|
|
|
165
|
|
|
-
|
|
Selling and marketing expenses
|
|
|
|
879
|
|
|
1,032
|
|
General and administrative expenses
|
|
|
|
2,943
|
|
|
2,826
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
2,450
|
|
|
1,979
|
|
|
|
|
|
|
|
|
|
Financial (expense) income, net
|
|
|
|
(295
|
)
|
|
290
|
|
Other (expenses) income, net
|
|
|
|
(209
|
)
|
|
3
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
1,946
|
|
|
2,272
|
|
|
|
|
Income taxes
|
|
|
|
741
|
|
|
389
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
1,205
|
|
|
1,883
|
|
less: Net income attributable to
|
|
|
noncontrolling interest
|
|
|
|
(147
|
)
|
|
(384
|
)
|
|
|
|
|
|
Net income attributable to controlling
|
|
|
interest
|
|
|
$
|
1,058
|
|
$
|
1,499
|
|
|
|
|
|
|
|
|
|
Basic net income per share attributable to
|
|
|
controlling interest
|
|
|
$
|
016
|
|
$
|
0.23
|
|
Diluted net income per share attributable
|
|
|
to controlling interest
|
|
|
$
|
0.16
|
|
$
|
0.23
|
|
|
|
|
Weighted average number of shares - basic
|
|
|
|
6,552,671
|
|
|
6,542,671
|
|
Weighted average number of shares - diluted
|
|
|
|
6,552,671
|
|
|
6,557,090
|
|
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
|
TAT TECHNOLOGIES LTD.
(Registrant)
By: /s/ Yaron Shalem
Yaron Shalem
Chief Financial Officer
|
Date: May 15, 2009
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