Eltek Reports 2021 Second Quarter Financial Results

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    <br /> Eltek Reports 2021 Second Quarter Financial Results<br />

    – Revenues of $9.1 million in the second quarter of 2021 compared to $8.8 million in the second quarter of 2020

    – Gross profit of $2.4 million in the second quarter of 2021 compared to $1.9 million in the second quarter of 2020

    – Net profit of $825,000 in the second quarter of 2021 compared to net profit of $704,000 in the second quarter of 2020

    – Achieved EBITDA of $1.4 million in the second quarter of 2021, or 15.2% of total sales compared to EBITDA of $1.2 million in the second quarter of 2020

    – Cash and cash equivalents as of June 20, 2021 were $9.2 million

    PR Newswire

    PETACH-TIKVA,

    Israel

    ,

    Aug. 18, 2021

    /PRNewswire/ — Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards, announced today its financial results for the quarter ended

    June 30, 2021

    .

    Eltek_Logo


    Mr.

    Eli Yaffe

    , Chief Executive Officer

    , commented: “We are pleased that our second quarter reflects the return to improved results. We are gratified that despite the global Covid-19 pandemic that resulted in the short supply of various critical raw materials and the related challenges, we were able to grow our top line by 3.9% compared to the second quarter of 2020 and improve our gross margins from 21.6% in Q2 2020 to 25.9% in Q2 2021.”



    “We are operating in a challenging business environment these days, mainly due to the global supply chain crisis, which was not resolved yet. As previously announced, during 2021 we were impacted by the worldwide shortage of Pyralux AP, a key material produced by DuPont. During the second quarter we were able to obtain authorizations from some of our customers to use alternative raw materials.” added Mr. Yaffe.

    “During the second quarter we faced price increases for some of our raw materials. In addition, some of our operating expenses are dominated in New Israeli Shekel (“NIS”) and were negatively affected due to the devaluation of the US$ against the NIS. Nevertheless these challenges, we were able to improve our gross margin in the second quarter” said Mr. Yaffe.

    “We are conducting several R&D programs and making effort to become an innovative industry leader. Eltek is making the necessary operational adjustments to expand our business, improve customer satisfaction, increase revenues, maintain the trend of improved operational results,” concluded Mr. Yaffe.



    Highlights of the Second Quarter of 2021 compared to the Second Quarter of 2020


    • Revenues

      for the second quarter of 2021 were

      $9.1 million

      compared to revenues of

      $8.8 million

      in the second quarter of 2020;

    • Gross profit

      increased to

      $2.4 million

      (25.9% of revenues) in the second quarter of 2021 compared to

      $1.9 million

      (21.6% of revenues) in the second quarter of 2020;

    • Operating profit

      increased to

      $944,000

      (10.3% of revenues) during the second quarter of 2021 as compared to operating profit of

      $809,000

      (9.2% of revenues)in the second quarter of 2020;

    • Net profit

      was

      $825,000

      , or

      $0.14

      per fully diluted share in the second quarter of 2021 compared to net profit of

      $704,000

      , or

      $0.16

      per fully diluted share, in the second quarter of 2020;

    • EBITDA

      was

      $1.4 million

      in the second quarter of 2021 compared to EBITDA of

      $1.2 million

      in the second quarter of 2020;

    • Net cash provided by operating activities

      amounted to

      $380,000

      in the second quarter of 2021 compared to net cash provided by operating activities of

      $1.4 million

      in the second quarter of 2020.

    • Cash and cash equivalents

      as of

      June 30, 2021

      were

      $9.2 million

      compared to

      $4.7 million

      as of

      December 31, 2020

      .



    Highlights for the First Six Months of 2021


    • Revenues

      for the first six months of 2021 were

      $16.3 million

      compared to

      $17.9 million

      in the first six months of 2020;

    • Gross profit

      was

      $3.5 million

      (21.5% of revenues) compared to gross profit of

      $3.7 million

      (20.6% of revenues) in the first six months of 2020;

    • Operating profit

      was

      $1.1 million

      compared to operating profit of

      $1.4 million

      in the first six months of 2020;

    • Net profit

      was

      $1.0 million

      , or

      $0.18

      per fully diluted share compared to net profit of

      $1.2 million

      , or

      $0.28

      per fully diluted share in the first six months of 2020;

    • EBITDA

      was

      $2.0 million

      in the first six months of 2021, compared to EBITDA of

      $2.2 million

      in the first six months of 2020;

    • Net cash provided by operating activities

      amounted to

      $2.8 million

      in the first six months of 2021 compared to net cash provided by operating activities of

      $2.9 million

      in the first six months of 2020.


    Conference Call

    Today,

    Wednesday, August 18, 2021

    , at

    8:00 a.m. Eastern Time

    , Eltek will conduct a conference call to discuss the results. The call will feature remarks by

    Eli Yaffe

    , Chief Executive Officer and

    Alon Mualem

    , Chief Financial Officer.

    To participate, please call the following teleconference numbers. Please allow for additional time to connect prior to the call:


    United States

    :                     1-888-723-3164

    Israel:                                   03-9180691

    International:                      +972-3-9180691

    At:

    8:00 a.m. Eastern Time

    5:00 a.m. Pacific Time

    15:00 p.m. Israel Time

    A replay of the call will be available through the Investor Info section on Eltek’s corporate website at

    Home



    approximately 24 hours after the conference call is completed and will be archived for 30 days.


    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 the Israeli leader 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 subsidiaries 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

    .


    Use of 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.


    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, 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.


    Investor Contact:



    Alon Mualem



    Chief Financial Officer



    [email protected]



    +972-3-9395023



    Eltek Ltd.



    Consolidated Statements of Operations



    (In thousands US$, except per share data)



    Three months ended



    Six months ended



    June  30,



    June  30,



    2021



    2020



    2021



    2020



    Revenues



    9,132



    8,792



    16,338



    17,949



    Costs of revenues



    (6,765)



    (6,892)



    (12,827)



    (14,246)



    Gross profit



    2,367



    1,900



    3,511



    3,703


    Selling, general and administrative expenses



    (1,413)



    (1,095)



    (2,421)



    (2,284)


    R&D expenses, net



    (10)



    4



    (10)



    2



    Operating profit



    944



    809



    1,080



    1,421


    Financial expenses, net



    (84)



    (83)



    20



    (139)


    Other income, net



    –



    –



    (3)



    –



    Profit before income tax



    860



    726



    1,097



    1,282


    Tax expenses



    (35)



    (22)



    (50)



    (38)



    Net Profit



    825



    704



    1,047



    1,244



    Earnings per share


    Basic and diluted net profit per ordinary share



    0.14



    0.16



    0.18



    0.28


    Weighted average number of ordinary shares used to compute


    basic net profit per ordinary share (in thousands)



    5,840



    4,380



    5,840



    4,380


    Weighted average number of ordinary shares used to compute


    diluted net profit per ordinary share (in thousands)



    5,871



    4,380



    5,868



    4,380



    Eltek Ltd.



    Consolidated Balance Sheets



    (In thousands US$)



    June  30,



    December  31,



    2021



    2020



    Assets



    Current assets


    Cash and cash equivalents



    9,169



    4,735


    Receivables:   Trade, net of provision for doubtful accounts



    7,388



    9,062


    Other



    784



    700


    Inventories



    3,904



    3,704


    Prepaid expenses



    422



    619



    Total current assets



    21,667



    18,820



    Long term assets


    Restricted deposits



    215



    62


    Severance pay fund



    63



    64


    Operating lease right of use assets



    8,801



    8,948



    Total long term assets



    9,079



    9,074



    Fixed assets, less accumulated depreciation



    6,893



    7,263



    Total Assets



    37,639



    35,157



    Liabilities and Shareholder’s equity



    Current liabilities


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



    502



    676


    Accounts payable: Trade



    3,881



    4,452


    Other



    3,499



    3,831


    Short-term operating lease liabilities



    806



    742



    Total current liabilities



    8,688



    9,701



    Long-term liabilities


    Long term debt, excluding current maturities



    4,125



    1,495


    Employee severance benefits



    323



    338


    Deferred tax liabilities



    99



    84


    Long-term operating lease liabilities



    8,085



    8,272



    Total long-term liabilities



    12,632



    10,189



    Equity


    Ordinary shares, NIS 3.0 par value authorized 10,000,000 shares, issued and outstanding 5,840,357



    5,296



    5,296


    Additional paid-in capital



    22,846



    22,846


    Cumulative foreign currency translation adjustments



    2,975



    3,153


    Capital reserve



    1,267



    1,084


    Accumulated deficit



    (16,065)



    (17,112)



    Shareholders’ equity



    16,319



    15,267



    Total liabilities and shareholders’ equity



    37,639



    35,157



    Eltek Ltd.



    Unaudited Non-GAAP EBITDA Reconciliations



    (In thousands US$)



    Non-GAAP EBITDA Reconciliations



    Three months ended



    Six months ended



    June  30,



    June  30,



    2021



    2020



    2021



    2020



    Unaudited



    Unaudited



    GAAP net Income (loss)



    825



    704



    1,047



    1,244




    Add back items:


    Financial expenses, net



    84



    83



    (20)



    139


    Income tax expense



    35



    22



    50



    38


    Depreciation and amortization



    442



    391



    885



    786



    Non-GAAP EBITDA



    1,386



    1,200



    1,962



    2,207



    Eltek Ltd.



    Consolidated Statement of  Cash flow



    (In thousands US$)



    Three months ended



    Six months ended



    June  30,



    June  30,



    2021



    2020



    2021



    2020



    Cash flows from operating activities:



    Net Income



    825



    704



    1,047



    1,244



    Adjustments to reconcile net profit to net



    cash flows provided by operating activities:


    Depreciation and amortization



    442



    391



    886



    786


    Stock-based compensation



    170



    17



    183



    43


    Revaluation of long term loans



    –



    (6)



    –



    4


    Increase in deferred tax liabilities



    9



    6



    16


    12



    621



    408



    1,085



    845


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



    20



    1



    24



    (4)


    Decrease (increase) in trade receivables



    (1,482)



    280



    1,546



    149


    Decrease in other receivables and prepaid expenses



    315



    49



    95



    187


    Decrease (increase) in inventories



    252



    27



    (250)



    248


    Decrease  in trade payables



    (211)



    (113)



    (411)



    (370)


    Increase (decrease) in other liabilities and accrued expenses



    44



    17



    (279)



    538


    Increase (decrease) in employee severance benefits, net



    (4)



    24



    (10)



    40



    (1,066)



    285



    715



    788



    Net cash provided by operating activities



    380



    1,397



    2,847



    2,877



    Cash flows from investing activities:


    Purchase of fixed assets



    (331)



    (250)



    (538)



    (454)


    Restricted deposits



    (154)



    (58)



    (154)



    (58)



    Net cash used in investing activities



    (485)



    (308)



    (692)



    (512)



    Cash flows from financing activities:


    Short- term bank credit, net



    –



    (326)



    (377)



    (765)


    Repayment of short- term shareholder loan



    –



    (571)



    –



    (571)


    Repayment of long-term loans from bank



    (38)



    (35)



    (77)



    (108)


    Proceeds from long-term loans



    3,062



    1,141



    3,062



    1,141


    Repayment of credit from fixed asset payables



    (274)



    (152)



    (285)



    (304)



    Net cash used in financing activities



    2,750



    57



    2,323



    (607)



    Effect of translation adjustments



    119



    47



    (44)



    21



    Net increase (decrease) in cash and cash equivalents



    2,764



    1,193



    4,434



    1,779



    Cash and cash equivalents at beginning of the period



    6,406



    2,214



    4,735



    1,628



    Cash and cash equivalents at period end



    9,169



    3,407



    9,169



    3,407

    Cision
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    SOURCE Eltek Ltd.

    PR Newswire
    August 18, 2021 – 4:00 AM PDT