Eltek Reports Record Revenues for First Quarter 2013 *$12.5 Million in Revenues *Net Income of $127,000 Business Wire PETACH-TIKVA, Israel -- May 29, 2013 Eltek Ltd. (NASDAQ:ELTK), the leading Israeli manufacturer of advanced flex-rigid circuitry solutions, announced today its results for the first quarter of 2013. Revenues for the quarter ended March 31, 2013 were $12.5 million, compared to revenues of $12.0 million in the first quarter of 2012. Gross Profit for the first quarter of 2013 was $1.8 million (14% of revenues), compared to gross profit of $2.3 million (19% of revenues) in the first quarter of 2012. Gross profit decreased mainly due to increases in the cost of labor and raw materials. Operating Profit for the first quarter of 2013 was $230,000 compared to the operating profit of $716,000 in the first quarter of 2012. Net Profit for first quarter of 2013 was $127,000 or $0.02 per fully diluted share, compared to net profit of $526,000 or $0.08 per fully diluted share in the first quarter of 2012. EBITDA: In the quarter ended March 31, 2013, Eltek had EBITDA of $613,000 compared to EBITDA of $1.2 million in the first quarter of 2012. ELTEK uses EBITDA as a non-GAAP financial performance measurement. EBITDA is calculated by adding back to net income interest, taxes, depreciation and amortization. EBITDA is provided to investors to complement results provided in accordance with GAAP, as management believes the measure helps illustrate underlying operating trends in the Company's business and uses the measure to establish internal budgets and goals, manage the business and evaluate performance. EBITDA should not be considered in isolation or as a substitute for comparable measures calculated and presented in accordance with GAAP. Reconciliation between the company's results on a GAAP and non-GAAP basis is provided in a table immediately following the Consolidated Statement of Operations. Management Comments: Arieh Reichart, President and Chief Executive Officer of Eltek, commented: "I am pleased to report that our customers continue to see the value proposition of our products and have a great deal of trust in our company. Specifically, in our own backyard, we have seen greater interest from our local customers, reflecting the continued market recognition of our high quality and reliable products." "In addition, despite the increase in the cost of raw materials and labor, we were able to achieve a growth in revenues, with $12.5 million in revenues for the first quarter of 2013, while maintaining Eltek's ability to stay profitable despite external market-changing elements," Mr. Reichart concluded. Amnon Shemer, Chief Financial Officer of Eltek, added: “Although we have been profitable for the last two years, our main challenge continues to be obtaining additional financing, including lines of credit for working capital and investment in fixed assets that are required for the expansion of our production capacity and to replace or refurbish old equipment." About Eltek Eltek is Israel's leading manufacturer of printed circuit boards, the core circuitry of most electronic devices. It specializes in the complex high-end of PCB manufacturing, i.e., HDI, multilayered and flex-rigid boards. Eltek's technologically advanced circuitry solutions are used in today's increasingly sophisticated and compact electronic products. For more information, visit Eltek's web site at www.eltekglobal.com. Forward Looking Statement: Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties including, but not limited to statements regarding expected results in future quarters, risks in product and technology development and rapid technological change, product demand, the impact of competitive products and pricing, market acceptance, the sales cycle, changing economic conditions and other risk factors detailed in the Company's Annual Report on Form 20-F and other filings with the United States Securities and Exchange Commission. Eltek Ltd. Consolidated Statements of Operations (In thousands US$, except per share data) Three months ended March 31, 2013 2012 Unaudited Revenues 12,452 11,978 Costs of revenues (10,664 ) (9,657 ) Gross profit 1,788 2,321 Selling, general and administrative expenses (1,558 ) (1,605 ) Operating profit 230 716 Financial income (expenses), net (100 ) (168 ) Profit before other income, net 130 548 Other income, net (3 ) 0 Profit before income tax expenses 127 548 Income tax (expenses), net (9 ) (5 ) Net profit 118 544 Net profit (loss) attributable to non (9 ) (18 ) controlling interest Net profit attributable to controlling interest 127 526 / Eltek Earnings per share Basic and diluted net gain per ordinary share 0.02 0.08 Weighted average number of ordinary shares used to compute basic and diluted net gain per 6,610 6,610 ordinary share (in thousands) Eltek Ltd. Consolidated Balance Sheets (In thousands US$) March 31, 2013 2012 Unaudited Assets Current assets Cash and cash equivalents 1,217 1,414 Receivables: Trade, net of provision for doubtful accounts 9,187 8,565 Other 126 269 Inventories 5,125 5,005 Prepaid expenses 311 350 Total current assets 15,966 15,603 Assets held for employees' severance benefits 49 41 Fixed assets, less accumulated depreciation 9,595 8,214 Goodwill 71 521 Total assets 25,681 24,379 Liabilities and Shareholders' equity Current liabilities Short-term credit and current maturities of 5,452 4,584 long-term debts Accounts payable: Trade 6,999 7,214 Related parties 1,539 1,190 Other 4,768 4,118 Total current liabilities 18,758 17,106 Long-term liabilities Long term debt, excluding current maturities 969 1,642 Employee severance benefits 203 164 Total long-term liabilities 1,172 1,806 Equity Ordinary shares, NIS 0.6 par value authorized 50,000,000 shares, issued and outstanding 1,384 1,384 6,610,107. Additional paid-in capital 14,328 14,295 Cumulative foreign currency translation 2,816 2,829 adjustments Capital reserve 695 695 Accumulated deficit (13,583 ) (13,872 ) Shareholders' equity 5,640 5,331 Non controlling interest 112 136 Total equity 5,752 5,467 Total liabilities and shareholders' equity 25,681 24,379 Eltek Ltd. Unaudited Non-GAAP EBITDA Reconciliations (In thousands US$, except per share data) Non-GAAP EBITDA Reconciliations Three months ended March 31, 2013 2012 Unaudited GAAP net Income 127 526 Add back items: Financial expenses, net 100 168 Income tax expense 9 5 Depreciation 377 476 Adjusted EBITDA 613 1,174 Contact: Eltek Ltd. Amnon Shemer Chief Financial Officer +972-3-9395050
Eltek Reports Record Revenues for First Quarter 2013
Press spacebar to pause and continue. Press esc to stop.