Eltek Reports Record Revenues for Second Quarter of 2013
-- $12.4 Million in Revenues
-- Net Income of $339,000
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.
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
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.
Chief Financial Officer
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
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)
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
Other income, net (7) 0 (10) 0
Profit (loss) before income tax 340 367 466 916
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
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
Weighted average number of ordinary
used to compute basic and diluted net
gain (loss) per
ordinary share (in thousands) 6,610 6,610 6,610 6,610
Consolidated Balance Sheets
(In thousands US$)
Cash and cash equivalents 829 1,621
Receivables: Trade, net of provision for doubtful 9,583 7,755
Other 325 321
Inventories 5,647 4,540
Prepaid expenses 262 240
Total current assets 16,646 14,477
Assets held for employees' severance benefits 49 43
Fixed assets, less accumulated depreciation 9,585 7,769
Goodwill 74 497
Total assets 26,354 22,786
Liabilities and Shareholder's equity
Short-term credit and current maturities of long-term 4,813 5,036
Accounts payable: Trade 7,158 6,335
Related parties 1,523 1,219
Other 4,967 4,087
Total current liabilities 18,461 16,677
Long term debt, excluding current maturities 1,563 503
Employee severance benefits 193 145
Total long-term liabilities 1,756 648
Ordinary shares, NIS 0.6 par value authorized
50,000,000 1,384 1,384
shares, issued and outstanding 6,610,107
Additional paid-in capital 14,328 14,295
Cumulative foreign currency translation adjustments 2,997 2,484
Capital reserve 695 695
Accumulated deficit (13,370) (13,521)
Shareholders' equity 6,034 5,337
Non controlling interest 103 124
Total equity 6,137 5,461
Total liabilities and shareholders' equity 26,354 22,786
Unaudited Non-GAAP EBITDA Reconciliations
For the period ended June 30, 2013
(In thousands US$, except per share data)
Non-GAAP EBITDA Reconciliations Three months ended Six months ended
June 30, June 30,
2013 2012 2013 2012
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.
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