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Eltek Ltd. Reports 2022 Third Quarter Financial Results
[November 16, 2022]

Eltek Ltd. Reports 2022 Third Quarter Financial Results


PETACH TIKVA, Israel, Nov. 16, 2022 /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 September 30, 2022.

Eltek Logo

Third Quarter 2022 Highlights

  • Revenues were $10.3 million
  • Operating profit was $1.1 million
  • Profit before tax was $1.2 million.
  • Net profit was $1.0 million or $0.17 per fully diluted share
  • Net cash provided by operating activities amounted to $1.7 million

"Revenues in the third quarter of 2022 amounted to $10.3 million. This result is in line with the Company's policy to increase production capacity in order to support higher revenues and net income. We estimate that this trend will continue as we will progress in the first phase of our investment program during the years 2023 and 2024. Our backlog continues to be strong as we are benefiting from the growing demand for high-end products, especially in the defense and medical sectors. We believe that this trend of strong demand for high technology products will continue," said Eli Yaffe, CEO of Eltek.

"In the operational area, we continue to carry out optimization procedures in the production lines and are continuing our efforts to absorb and train new employees. We increased our number of employees by 18% since the beginning of the year. During the quarter, we managed the successful installation and operation of three brand new production machines and during Q4 2022 we will install two additional machines," continued Mr. Yaffe.

"The net profit in the quarter amounted to $1 million, most of which was achieved from current activity, without a material impact from financing income as was the case in the previous quarter," concluded Mr. Yaffe.

Third Quarter 2022 GAAP Financial Results

Revenues for the third quarter of 2022 were $10.3 million, compared to $8.0 million in the third quarter of 2021;

Gross profit for the third quarter of 2022 was $2.4 million (23% of revenues) compared to $1.4 (18% of revenues) in the third quarter of 2021;

Operating profit for the third quarter of 2022 was $1.1 million compared to operating profit of $0.1 million in the third quarter of 2021;

Profit before income tax for the third quarter of 2022 was $1.2 million compared to $0 million in the third quarter of 2021;

Net profit for the third quarter of 2022 was $1.0 million or $0.17 per fully diluted share compared to net profit of $0 million or $0.00  per fully diluted share in the third quarter of 2021;

Third Quarter 2022 Non-GAAP Financial Results

EBITDA for the third quarter of 2022 was a $1.4 million (14% of revenues) compared to EBITDA of $0.6 million (8% of revenues) in the third quarter of 2021;

First Nine Months 2022 GAAP Financial Results

Revenues for the first nine months of 2022 were $29.2 million compared to $24.3 million in the first nine months of 2021;

Gross profit for the first nine months of 2022 was $6.1 million (21% of revenues) compared to $4.9 million (20% of revenues) in the first nine months of 2021;

Operating profit for the first nine months of 2022 was $2.1 million compared to operating profit of $1.3 million in the first nine months of 2021;

Financial income for the first nine months of 2022 was $0.8 million compared to financial expense of $0.1 million in the first nine months of 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 the first nine months of 2022 was $2.9 million compared to $1.3 million in the first nine months of 2021;

Net profit for the first nine months of 2022 was $2.4 million or $0.41per fully diluted share compared to net profit of $1.2 million or $0.20 per fully diluted share in the first nine months of 2021;

First Nine Months 2022 Non-GAAP Financial Results

EBITDA for the first nine months of 2022 was a $3.3 million (11% of revenues) compared to EBITDA of $2.7 million (11% of revenues) in the first nine months of 2021;

Conference Call

Today, Wednesday, November 16, 2022, 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

(Unaudited, in thousands US$, except per share data)




































Three months ended


Nine months ended





September  30,


September  30,





2022


2021


2022


2021























Revenues


10,327


7,965


29,171


24,302



Costs of revenues


(7,908)


(6,555)


(23,113)


(19,361)














Gross profit


2,419


1,410


6,058


4,941














Selling, general and administrative expenses


(1,261)


(1,228)


(3,859)


(3,560)



R&D expenses, net


(33)


(45)


(77)


(55)














Operating profit


1,125


137


2,122


1,326














Financial income (expenses), net


55


(121)


787


(101)



Other income (loss), net


-


44


-


42














Profit before income tax 


1,180


60


2,909


1,267














Tax expenses


176


14


520


64














Net Profit 


1,004


46


2,389


1,203

























Earnings per share:











Basic and diluted net profit per ordinary share


0.17


-


0.41


0.20














Weighted average number of ordinary shares used to compute











basic net profit per ordinary share (in thousands)


5,850


5,840


5,846


5,840














Weighted average number of ordinary shares used to compute











  diluted net profit per ordinary share (in thousands)


5,850


5,840


5,846


5,871















 

 

Eltek Ltd.

Consolidated Balance Sheets

(Unaudited, in thousands US$)

























September  30,


December  31,









2022


2021
















Assets






















Current assets:











Cash and cash equivalents


7,847


9,283







Receivables:   Trade, net of provision for doubtful accounts


9,651


7,021







                       Other


502


798







Inventories 


4,635


4,893







Prepaid expenses 


320


586


















Total current assets


22,955


22,581


















Long term assets:











Restricted deposits


200


226







Severance pay fund


58


66







Deferred tax assets and long term tax receivables, net


2,629


3,563







Operating lease right of use assets


7,789


8,979







Total long term assets


10,676


12,834


















Fixed assets, less accumulated depreciation


7,495


7,368


















Total Assets


41,126


42,783


















Liabilities and Shareholder's equity






















Current liabilities:











Short-term credit and current maturities of long-term debts


720


708







Accounts payable: Trade


4,469


4,044







                              Other


3,706


3,577







Short-term operating lease liabilities


856


931


















Total current liabilities


9,751


9,260


















Long-term liabilities:











Long term debt, excluding current maturities


2,896


3,921







Employee severance benefits


313


344







Long-term operating lease liabilities


7,062


8,186


















Total long-term liabilities


10,271


12,451


















Shareholders' equity:











Ordinary shares, NIS 3.0 par value authorized 10,000,000 shares, issued and outstanding
 5,849,678 at June 30, 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


1,146


3,716







Capital reserve


1,475


1,287







Accumulated deficit


(9,684)


(12,073)







Total shareholders' equity


21,104


21,072







Total liabilities and shareholders' equity


41,126


42,783





























 

 

Eltek Ltd.

Unaudited Non-GAAP EBITDA Reconciliations

(In thousands US$)

























Three months ended


Nine months ended




September  30,


September  30,




2022


2021


2022


2021




















GAAP net Income 


1,004


46


2,389


1,203


Add back items:




















Financial expenses (income), net 


(55)


121


(787)


101


Income tax expenses 


176


14


520


64


Depreciation and amortization


325


444


1,205


1,330


Non-GAAP EBITDA


1,450


625


3,327


2,698






















 

 

Eltek Ltd.

Consolidated Statements of  Cash Flows

(Unaudited, in thousands US$)

























Three months ended


Nine months ended





September  30,


September  30,





2022


2021


2022


2021














Cash flows from operating activities:






















Net Income


1,004


46


2,389


1,203



Adjustments to reconcile net income to net cash flows











provided by operating activities:











Depreciation and amortization


325


445


1,205


1,331



Stock-based compensation


71


55


188


127



Decrease in deferred tax assets and long term tax receivable


170


6


499


22





566


506


1,892


1,480














Decrease (increase) in operating lease right-of-use assets


12


17


8


41



Decrease (increase) in trade receivables


(1,208)


1,015


(3,488)


2,560



Decrease (increase) in other receivables and prepaid expenses


311


48


393


143



Decrease (increase) in inventories


382


(275)


(340)


(525)



Increase (decrease) in trade payables


371


(464)


1,143


(875)



Increase (decrease) in other liabilities and accrued expenses


277


(300)


566


(579)



Increase (decrease)  in employee severance benefits, net


11


5


11


(5)





156


46


(1,707)


760














Net cash provided by operating activities


1,726


598


2,574


3,443

























Cash flows from investing activities:











Purchase of fixed assets


(1,841)


(824)


(2,456)


(1,362)



Restricted deposits


-


(2)


(2)


(156)



Net cash used in investing activities


(1,841)


(826)


(2,458)


(1,518)

























Cash flows from financing activities:











Short- term bank credit, net


-


-


-


(377)



Exercise of options


-


-


25


-



Repayment of long-term loans from bank


(181)


(111)


(432)


(188)



Proceeds from long-term loans


-


-


-


3,062



Repayment of credit from fixed asset payables


(3)


-


(10)


(285)



Net cash provided by (used in) financing activities


(184)


(111)


(417)


2,212














Effect of translation adjustments


(100)


55


(1,135)


13














Net increase (decrease) in cash and cash equivalents


(399)


(284)


(1,436)


4,150














Cash and cash equivalents at the beginning of the period


8,246


9,169


9,283


4,735














Cash and cash equivalents at the end of the period


7,847


8,885


7,847


8,885



 

Investor Contact

Ron Freund
Chief Financial Officer
[email protected]
+972-3-939-5023

Cision View original content:https://www.prnewswire.com/news-releases/eltek-ltd-reports-2022-third-quarter-financial-results-301679828.html

SOURCE Eltek Ltd.


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