Eltek Reports 2021 Third Quarter Financial Results

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

    – Revenues of $8.0 million in the third quarter of 2021 compared to $9.3 million in the third quarter of 2020

    – Net loss of $26,000 in the third quarter of 2021 compared to net profit of $598,000 in the third quarter of 2020

    – EBITDA of $553,000 in the third quarter of 2021 compared to EBITDA of $1.0 million in the third quarter of 2020

    – Cash and cash equivalents as of September 30, 2021 were $8.9 million

    PR Newswire

    PETACH-TIKVA,

    Israel

    ,

    Nov. 17, 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

    September 30, 2021

    .

    Eltek Logo


    Mr.

    Eli Yaffe

    , Chief Executive Officer

    , commented: “Our third quarter results reflect a reduction in working days during this quarter, compared to the number of working days in the third quarter of 2020. In addition, we incurred higher expenses due to the strength of the New Israeli Shekel (“NIS”) compared to the US$ during the third quarter.”

    “We are conducting several R&D programs in order to keep our position as an innovative industry leader. In addition, we invested

    $1.4 million

    in new equipment during the first nine months of 2021. We continue to invest in new advanced manufacturing equipment that will strengthen our manufacturing capabilities and increase our competitiveness by implementing improved production processes and adoption of Industry 4.0 technologies,” added Mr. Yaffe.

    “Eltek has an improved balance sheet and cash flow, with a positive working capital of

    $12.5 million

    as of

    September 30, 2021

    and operating cash flow of $3.4 million in the first nine months of 2021. We are making the necessary operational adjustments to expand our business, improve customer satisfaction, increase revenues and return to the trend of improved operational results,” concluded Mr. Yaffe.



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


    • Revenues

      for the third quarter of 2021 were

      $8.0 million

      compared to revenues of

      $9.3 million

      in the third quarter of 2020;

    • Gross profit

      was

      $1.4 million

      (17.5% of revenues) in the third quarter of 2021 compared to

      $1.8 million

      (19.7% of revenues) in the third quarter of 2020;

    • Operating profit

      was

      $65,000

      during the third quarter of 2021 as compared to operating profit of

      $638,000

      in the third quarter of 2020;

    • Net loss

      was

      $26,000

      , or

      ($0.00)

      per share in the third quarter of 2021 as compared to net profit of

      $598,000

      , or

      $0.14

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

    • EBITDA

      was

      $553,000

      in the third quarter of 2021 compared to EBITDA of

      $1.0 million

      in the third quarter of 2020;

    • Net cash provided by operating activities

      amounted to

      $598,000

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

      $873,000

      in the third quarter of 2020.

    • Cash and cash equivalents

      as of

      September 30, 2021

      totaled

      $8.9 million

      compared to

      $4.7 million

      as of

      December 31, 2020

      .



    Highlights for the First Nine Months of 2021


    • Revenues

      for the first nine months of 2021 were

      $24.3 million

      compared to

      $27.2 million

      in the first nine months of 2020;

    • Gross profit

      was

      $4.9 million

      (20.2% of revenues) compared to gross profit of

      $5.5 million

      (20.3% of revenues) in the first nine months of 2020;

    • Operating profit

      was

      $1.1 million

      compared to operating profit of

      $2.1 million

      in the first nine months of 2020;

    • Net profit

      was

      $1.0 million

      , or

      $0.17

      per fully diluted share compared to net profit of

      $1.8 million

      , or

      $0.42

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

    • EBITDA

      was

      $2.5 million

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

      $3.2 million

      in the first nine months of 2020;

    • Net cash provided by operating activities

      amounted to

      $3.4 million

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

      $3.7 million

      in the first nine months of 2020.


    Conference Call

    Today,

    Wednesday, November 17, 2021

    , at

    8:30 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:


    8:30 a.m. Eastern Time



    5:30 a.m. Pacific Time



    15:30 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 subsidiary 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. To supplement the consolidated financial statements presented in accordance with GAAP, the Company presents the Non-GAAP presentation of EBITDA. This non-GAAP measure is not in accordance with, nor is it a substitute for, a GAAP measure. The Company uses EBITDA 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



    Nine months ended



    September  30,



    September  30,



    2021



    2020



    2021



    2020



    Revenues



    7,965



    9,256



    24,302



    27,206



    Costs of revenues



    (6,570)



    (7,433)



    (19,397)



    (21,679)



    Gross profit



    1,395



    1,823



    4,905



    5,527


    Selling, general and administrative expenses



    (1,285)



    (1,183)



    (3,706)



    (3,467)


    R&D expenses, net



    (45)



    (2)



    (55)



    –



    Operating profit



    65



    638



    1,144



    2,060


    Financial expenses, net



    (121)



    (19)



    (101)



    (158)


    Other income (expenses), net



    44



    (10)



    41



    (10)



    Profit before income tax



    (12)



    609



    1,084



    1,892


    Tax expenses



    (14)



    (11)



    (64)



    (50)



    Net Profit (loss)



    (26)



    598



    1,020



    1,842



    Earnings per share


    Basic and diluted net profit per ordinary share



    (0.00)



    0.14



    0.17



    0.42


    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)



    5,840



    4,380



    5,871



    4,380



    Eltek Ltd.



    Consolidated Balance Sheets



    (In thousands US$)



    September  30,



    December  31,



    2021



    2020



    Assets



    Current assets


    Cash and cash equivalents



    8,885



    4,735


    Receivables: Trade, net of provision for doubtful accounts



    6,441



    9,062


    Other



    901



    700


    Inventories



    4,216



    3,704


    Prepaid expenses



    269



    619



    Total current assets



    20,712



    18,820



    Long term assets


    Restricted deposits



    218



    62


    Severance pay fund



    64



    64


    Operating lease right of use assets



    8,802



    8,948



    Total long term assets



    9,084



    9,074



    Fixed assets, less accumulated depreciation



    7,414



    7,263



    Total Assets



    37,210



    35,157



    Liabilities and Shareholder’s equity



    Current liabilities


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



    595



    676


    Accounts payable: Trade



    3,523



    4,452


    Other



    3,230



    3,831


    Short-term operating lease liabilities



    852



    742



    Total current liabilities



    8,200



    9,701



    Long-term liabilities


    Long term debt, excluding current maturities



    3,965



    1,495


    Employee severance benefits



    332



    338


    Deferred tax liabilities



    107



    84


    Long-term operating lease liabilities



    8,057



    8,272



    Total long-term liabilities



    12,461



    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



    3,103



    3,153


    Capital reserve



    1,394



    1,084


    Accumulated deficit



    (16,090)



    (17,112)



    Shareholders’ equity



    16,549



    15,267



    Total liabilities and shareholders’ equity



    37,210



    35,157



    Eltek Ltd.



    Unaudited Non-GAAP EBITDA Reconciliations



    (In thousands US$)



    Non-GAAP EBITDA Reconciliations



    Three months ended



    Nine months ended



    September  30,



    September  30,



    2021



    2020



    2021



    2020



    GAAP net Income (loss)



    (26)



    598



    1,020



    1,842




    Add back items:


    Financial expenses, net



    121



    19



    101



    158


    Income tax expense



    14



    11



    64



    50


    Depreciation and amortization



    444



    390



    1,330



    1,176



    Non-GAAP EBITDA



    553



    1,018



    2,515



    3,226



    Eltek Ltd.



    Consolidated Statement of  Cash flow



    (In thousands US$)



    Three months ended



    Nine months ended



    September  30,



    September  30,



    2021



    2020



    2021



    2020



    Cash flows from operating activities:



    Net Income



    (26)



    598



    1,020



    1,842



    Adjustments to reconcile net profit to net



    cash flows provided by operating activities:


    Depreciation and amortization



    445



    391



    1,331



    1,177


    Capital gain on disposal of fixed assets, net



    –



    (16)



    –



    (16)


    Stock-based compensation



    127



    48



    310



    91


    Revaluation of long term loans



    –



    (2)



    –



    2


    Increase in deferred tax liabilities



    6



    6



    22



    18



    578



    427



    1,663



    1,272


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



    17



    (1)



    41



    (5)


    Decrease in trade receivables



    1,015



    949



    2,560



    1,098


    Decrease (increase) in other receivables and prepaid expenses



    48



    (1,077)



    143



    (890)


    Decrease (increase) in inventories



    (275)



    (50)



    (525)



    198


    Increase (decrease)  in trade payables



    (464)



    397



    (875)



    27


    Increase (decrease) in other liabilities and accrued expenses



    (300)



    (357)



    (579)



    181


    Increase (decrease) in employee severance benefits, net



    5



    (13)



    (5)



    27



    46



    (152)



    760



    636



    Net cash provided by operating activities



    598



    873



    3,443



    3,750



    Cash flows from investing activities:


    Purchase of fixed assets



    (824)



    (348)



    (1,362)



    (802)


    Restricted deposits



    (2)



    (1)



    (156)



    (58)



    Net cash used in investing activities



    (826)



    (349)



    (1,518)



    (860)



    Cash flows from financing activities:


    Short- term bank credit, net



    –



    (1,163)



    (377)



    (1,928)


    Repayment of short- term shareholder loan



    –



    –



    –



    (571)


    Repayment of long-term loans from bank



    (111)



    (37)



    (188)



    (145)


    Proceeds from long-term loans



    –



    –



    3,062



    1,141


    Repayment of credit from fixed asset payables



    –



    (87)



    (285)



    (391)



    Net cash used in financing activities



    (111)



    (1,287)



    2,212



    (1,894)



    Effect of translation adjustments



    55



    7



    13



    27



    Net increase (decrease) in cash and cash equivalents



    (284)



    (756)



    4,150



    1,023



    Cash and cash equivalents at beginning of the period



    9,169



    3,407



    4,735



    1,628



    Cash and cash equivalents at period end



    8,885



    2,651



    8,885



    2,651

    Cision
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    SOURCE Eltek Ltd.

    PR Newswire
    November 17, 2021 – 4:30 AM PST