Eltek Reports Record Revenues for Second Quarter of 2013 -- $12.4 Million in Revenues -- Net Income of $339,000 PR Newswire PETACH-TIKVA, Israel, Aug. 29, 2013 PETACH-TIKVA, Israel, Aug. 29, 2013 /PRNewswire/ --(NASDAQ:ELTK) - Eltek Ltd., the leading Israeli manufacturer of advanced flex-rigid circuitry solutions, announced today its results for the second quarter of 2013. Revenues for the quarter ended June 30, 2013 were $12.4 million, compared to revenues of $11.5 million in the second quarter of 2012. Gross Profit for the second quarter of 2013 was $2.1 million (17% of revenues), compared to gross profit of $1.9 million (17% of revenues) in the second quarter of 2012. Operating Profit for the second quarter of 2013 was $491,000 compared to the operating profit of $465,000 in the second quarter of 2012. Net Profit for second quarter of 2013 was $339,000 or $0.05 per fully diluted share, compared to net profit of $351,000 or $0.05 per fully diluted share in the second quarter of 2012. First six months of 2013: Revenues for the first six months of 2013 were $24.8 million compared to revenues of $23.5 million recorded in the first six months of 2012. Gross profit for the first six months of 2013 was $3.9 million (16% of revenues) compared to gross profit of $4.2 million (18% of revenues) in the first six months of 2012. Operating profit for the first six months of 2013 was $721,000 compared to operating profit of $1.2 million in the first six months of 2012. Net profit for the first six months of 2013 was $465,000 or $0.07 per fully diluted share, compared to net profit of $877,000, or $0.13 per fully diluted share, in the first six months of 2012. EBITDA: In the quarter ended June 30, 2013, Eltek had EBITDA of $932,000 compared to EBITDA of $928,000 in the second quarter of 2012. In the first six months of 2013, Eltek had EBITDA of $1.5 million compared to EBITDA of $2.1 million in the first six months 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: "For three consecutive quarters Eltek has seen growing demand from its current customer base, but production capacity constraints prevented the full exploitation of this potential. Our customers continue to see the value proposition of our products and have a great deal of trust in our company. Specifically, in our local market, we have seen greater interest from our local customers, reflecting the continued market recognition of our high quality and reliable products." "We are pleased with Nistec's decision to invest in Eltek. This significant investment is an important validation of our vision and achievements and will support our long-term growth plans. This investment will enable Eltek to fully realize its growth potential as well as other opportunities in the diverse markets we serve," Mr. Reichart concluded. Amnon Shemer, Chief Financial Officer of Eltek added: "The record revenues in this quarter and the ten consecutive quarters of profitability, demonstrate Eltek's potential for growth and profitability, which we could not fully capitalize on due to the lack of capital expenditures. We believe that Nistec's capital investment in the Company will enable us to invest in sophisticated manufacturing equipment, which is expected to assist us in growing the business of manufacturing high-end products and improve production efficiency. We believe that such investments will not only increase revenues but also improve gross margins and net income." "In addition, the capital infusion into the Company will improve our cash position and strengthen our balance sheet through increasing shareholders' equity," Mr. Shemer concluded. About the 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. Contact: Amnon Shemer Chief Financial Officer email@example.com +972-3-9395050 Eltek Ltd. Consolidated Statements of Operations (In thousands US$, except per share data) Three months ended Six months ended June 30, June 30, 2013 2012 2013 2012 Unaudited Unaudited Revenues 12,350 11,533 24,803 23,512 Costs of revenues (10,256) (9,620) (20,920) (19,277) Gross profit 2,094 1,914 3,882 4,235 Selling, general and administrative (1,603) (1,449) (3,161) (3,054) expenses Operating profit (loss) 491 465 721 1,181 Financial income (expenses), net (144) (98) (244) (266) Profit (loss) before other income, 347 367 477 916 net Other income, net (7) 0 (10) 0 Profit (loss) before income tax 340 367 466 916 expenses Income tax (expenses), net (9) (21) (18) (25) Net Profit (loss) 331 346 448 890 Net profit (loss) attributable to non (8) (4) (17) 14 controlling interest Net Profit (loss) attributable to 339 351 465 877 controlling interest / Eltek Earnings per share Basic and diluted net gain (loss) per 0.05 0.05 0.07 0.13 ordinary share Weighted average number of ordinary shares used to compute basic and diluted net gain (loss) per ordinary share (in thousands) 6,610 6,610 6,610 6,610 Eltek Ltd. Consolidated Balance Sheets (In thousands US$) June 30, 2013 2012 Unaudited Assets Current assets Cash and cash equivalents 829 1,621 Receivables: Trade, net of provision for doubtful 9,583 7,755 accounts Other 325 321 Inventories 5,647 4,540 Prepaid expenses 262 240 Total current assets 16,646 14,477 Assets held for employees' severance benefits 49 43 Fixed assets, less accumulated depreciation 9,585 7,769 Goodwill 74 497 Total assets 26,354 22,786 Liabilities and Shareholder's equity Current liabilities Short-term credit and current maturities of long-term 4,813 5,036 debts Accounts payable: Trade 7,158 6,335 Related parties 1,523 1,219 Other 4,967 4,087 Total current liabilities 18,461 16,677 Long-term liabilities Long term debt, excluding current maturities 1,563 503 Employee severance benefits 193 145 Total long-term liabilities 1,756 648 Equity Ordinary shares, NIS 0.6 par value authorized 50,000,000 1,384 1,384 shares, issued and outstanding 6,610,107 Additional paid-in capital 14,328 14,295 Cumulative foreign currency translation adjustments 2,997 2,484 Capital reserve 695 695 Accumulated deficit (13,370) (13,521) Shareholders' equity 6,034 5,337 Non controlling interest 103 124 Total equity 6,137 5,461 Total liabilities and shareholders' equity 26,354 22,786 Eltek Ltd. Unaudited Non-GAAP EBITDA Reconciliations For the period ended June 30, 2013 (In thousands US$, except per share data) Non-GAAP EBITDA Reconciliations Three months ended Six months ended June 30, June 30, 2013 2012 2013 2012 Unaudited Unaudited GAAP net Income (loss) 339 351 465 877 Add back items: Financial (income) expenses, net 143 98 244 266 Income tax (benefit) expense 9 21 18 25 Depreciation 441 459 818 935 Adjusted EBITDA 932 928 1,546 2,102 SOURCE Eltek Ltd. Website: http://www.eltekglobal.com
Eltek Reports Record Revenues for Second Quarter of 2013
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