TAT Technologies Reports First Quarter 2014 Results

             TAT Technologies Reports First Quarter 2014 Results

PR Newswire

GEDERA, Israel, May 15, 2014

GEDERA, Israel, May 15, 2014 /PRNewswire/ --TAT Technologies Ltd. (NASDAQ:
TATT) ("the Company"), a leading provider of services and products to the
commercial and military aerospace and ground defense industries, reported
today its results for the three month period ended March 31, 2014.

Mr. Itsik Maaravi, TAT's President & CEO commented, "As experienced in the
past, 2014 first quarter was a challenging period for TAT group following a
very successful year in 2013 in terms of revenues and profit. We plan to
continue and increase our marketing and sales efforts, as well as to increase
our activity in improving our production efficiency and the responsiveness and
support to our customers. We believe that our efforts will assist us in
improving our performance throughout the next quarters of 2014. In addition,
we are continuing to preserve a strong balance sheet with limited liabilities,
strong working capital and sufficient financial assets to support the future
growth of our operations."

Financial Highlights for the First quarter of 2014:

  oTotal Revenue: $18.4 million compared to $19.6 million for the first
    quarter of 2013.
  oOperating income: $0.4 million compared to $1.7 million for the first
    quarter of 2013.
  oNet income: $0.4 million compared to $1.7 million for the first quarter of
    2013.
  oEarnings per share: $0.05 per share compared to $0.19 per share in the
    first quarter of 2013.
  oCash and cash equivalents and short-term bank deposits:  $35.2 million
    compared to $29.9 million as of December 31, 2013.

About TAT Technologies LTD

TAT Technologies LTD is a leading provider of services and products to the
commercial and military aerospace and ground defense industries. TAT operates
under three segments: (i) Original Equipment Manufacturing or "OEM" of Heat
Management Solutions (ii) Heat Transfer Services and Products and (iii)
Maintenance, Repair and Overhaul or "MRO" services of Aviation Components.

TAT's activities in the area of OEM of Heat Management Solutions primarily
include the design, development, manufacture and sale of (i) 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; (ii) environmental control and
cooling systems on board aircraft and for ground applications; and (iii) a
variety of other electronic and mechanical aircraft accessories and systems
such as pumps, valves, power systems and turbines.

TAT's activities in the area of Heat Transfer Services and Products include
the maintenance, repair and overhaul of heat transfer equipment and in a
lesser extent, the manufacturing of certain heat transfer products. TAT's
Limco subsidiary operates FAA certified repair station, which provides heat
transfer MRO services and products for airlines, air cargo carriers,
maintenance service centers and the military.

TAT's activities in the area of MRO services for Aviation Components include
the maintenance, repair and overhaul of APUs, Landing Gear and other aircraft
components. TAT's Piedmont subsidiary operates an FAA certified repair
station, which provides aircraft component MRO services for airlines, air
cargo carriers, maintenance service centers and the military.

TAT also holds approximately 29% of the equity of First Aviation Services, a
world-wide service provider to the aerospace industry and a one-stop-shop for
maintenance, repair and overhaul services (for propellers and landing gear)
for the General Aviation Industry.

For more information of TAT Technologies, please visit our web-site:
www.tat-technologies.com

Tiko Gadot – CFO
TAT Technologies Ltd.
Tel: 972-8-862-8500
TikoG@tat-technologies.com

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements which include, without
limitation, statements regarding possible or assumed future operation results.
These statements are hereby identified as "forward-looking statements" for
purposes of the safe harbor provided by the Private Securities Litigation
Reform Act of 1995. These forward-looking statements involve risks and
uncertainties that could cause our results to differ materially from
management's current expectations. Actual results and performance can also be
influenced by other risks that we face in running our operations including,
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, the change of control that will occur on the sale by
the receiver of the Company's shares held by our previously controlling
stockholders, and other risks detailed from time to time in the company's
filings with the Securities Exchange Commission, including, its annual report
on form 20-F and its periodic reports on form 6-K. 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. Stockholders 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 ITS SUBSIDIARIES



CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands, except share data)
                                        March 31,            December 31,
                                        2014                 2013
                                        (unaudited)          (audited)
ASSETS
Current Assets:
Cash and cash equivalents               $           $        
                                        25,158                19,814
Short-term bank deposits                10,059               10,059
Accounts receivable-trade (net of
allowance for doubtful accounts of     16,618               18,387
$123 as of March 31, 2014 and December
31, 2013)
Other accounts receivable and prepaid   3,301                3,314
expenses
Inventories, net                        30,084               29,395
Assets held for sale                    -                    9,959
Total current assets                    85,220               90,928
Long-term assets:
Investment in an affiliated company     2,431                2,289
Funds in respect of employee rights     2,919                2,900
upon retirement
Long-term deferred tax                  1,541                1,616
Property, plant and equipment, net      11,332               11,147
Total Long-term assets                  18,223               17,952
Total assets                            $            $        
                                        103,443              108,880


LIABILITIES AND EQUITY
Current Liabilities:
Short term bank loan and current        $           $        
maturities of long-term loans             883                910
Trade accounts payables                 6,265                6,941
Other accounts payable and accrued      7,621                5,815
expenses
Liabilities held for sale               -                    3,428
Total current liabilities               14,769               17,094
Long-term liabilities:
Other accounts payable                  53                   58
Liability in respect of employee rights 3,131                3,140
upon retirement
Long-term deferred tax liability        1,073                1,058
Total long-term liabilities             4,257                4,256


EQUITY:
Share capital                           2,792                2,792
Additional paid-in capital              64,463               64,454
Treasury stock at cost                  (2,088)              (2,088)
Accumulated other comprehensive loss    -                    (429)
Retained earnings                       19,250               20,840
Total TAT Technologies shareholders'    84,417               85,569
equity
Non-controlling interest                -                    1,961
Total equity:                           84,417               87,530
Total liabilities and equity            $            $        
                                        103,443              108,880



TAT TECHNOLOGIES AND ITS SUBSIDIARIES



CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                             Three months ended                Year ended
                             March 31,                         December 31,
                             2014             2013             2013
Revenues:
Products                     $           $           $      
                             8,098           8,255           34,364
Services                     10,319           11,324           45,187
                             18,417           19,579           79,551
Cost and operating expenses:
Products                     5,995            5,811            24,892
Services                     8,794            8,792            35,987
                             14,789           14,603           60,879
Gross Profit                 3,628            4,976            18,672
Operating expenses:
Research and development,    255              224              713
net
Selling and marketing        750              766              3,150
General and administrative   2,276            2,313            9,512
Other income                 (7)              (7)              (20)
                             3,274            3,296            13,355
Operating income from        354              1,680            5,317
continuing operations
Financial income (expenses), 11               16               (50)
net
Income from continuing
operations before taxes on   365              1,696            5,267
income
Taxes on income              97               483              1,041
Net income from continuing
operations after taxes on    268              1,213            4,226
income
Share in results of          142              911              1,025
affiliated company
Net income from continuing   410              2,124            5,251
operations
Net loss from discontinued   -                (416)            (2,429)
operations, net of tax
Net income attributable to   $         $         $       
TAT Technologies Ltd.         410            1,708           2,822
shareholders
Basic and diluted income
(loss) per share
Net income from continuing
operations per share         $         $         $       
attributable to controlling  0.05            0.24            0.60
interest
Loss from discontinued
operations per share         -                (0.05)           (0.28)
attributable to controlling
interest
                             $         $         $       
                             0.05            0.19            0.32
Weighted average number of
shares outstanding
Basic                        8,805,236        8,798,570        8,799,237
Diluted                      8,827,702        8,798,570        8,808,920



TAT TECHNOLOGIES AND ITS SUBSIDIARIES



CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                 Year ended
                                   Three months ended March 31,
                                                                 December 31,
                                   2014               2013       2013
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income                         $           $      $      
                                   410                1,708     2,822
Net loss from discontinued         -                  (416)      (2,429)
operations
Income from continuing operations  410                2,124      5,251
Adjustments to reconcile net
income to net cash provided by     420                (629)      1,243
operating activities:
Changes in operating assets and    446                (1,969)    709
liabilities
Net cash provided by (used in)     1,276              (474)      7,203
operating activities
Cash flows provided by investing   4,094              1,712      70
activities
Cash flows provided by (used in)   (26)               295        (2,936)
financing activities
Cash flows provided by             -                  990        514
discontinued operations
Net increase in cash and cash      5,344              2,523      4,851
equivalents
Cash and cash equivalents at       19,814             17,786     17,786
beginning of period
Cash and cash equivalents at end   25,158             20,309     22,637
of period
Less- Cash and cash equivalents
of discontinued operations at end  -                  3,299      2,823
of period
Cash and cash equivalents of                          $       $     
continuing operations at end of    $     25,158  17,010    19,814
period



SOURCE TAT Technologies

Website: http://www.tat-technologies.com
 
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