PETACH-TIKVA,

Israel

,

March 25, 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 full year and fourth quarter ended

December 31, 2020

.

Mr.

Eli Yaffe

, Chief Executive Officer

, commented: “We are pleased with the growth in our revenues and profitability in the fourth quarter and the significant change in our full year results. The improved results reflect the growth in our revenues and the continued improved operating efficiencies.”

Eltek has managed successfully through the COVID pandemic in 2020 because of the following actions:

• Eltek’s balance market sectors strategy enabled Eltek to mitigate the downturn in the commercial aerospace market through its involvement in the defense market and the medical devices market.
• Eltek managed carefully its cash during the pandemic period by obtaining a reduced rate long term loan guaranteed by the government and by raising
  
  $5.7 million
  
  in a rights offering.
• Eltek increased investments during 2020 capitalizing on the reduced prices of capital equipment due to Covid.

In addition, we were able to emphasis the following:

• Eltek used its strong cash flow during 2020 in order to pay back part of its short-term loans. As a result, the ratio of Equity/Total Balance sheet increased to 43.4% at the end of 2020 compared to 27.5% at the end of 2019.
• Eltek accelerated its R&D plans and was awarded a grant from the Israel Investment Authority and approval for participation in a special R&D program funded by the Israel Innovation Authority.

“The outbreak and spread of the Coronavirus has created new operational and business challenges, including a shortage of certain raw material that we are dealing with. The Covid pandemic forced Eltek to start a new expense reduction plan at the end of 2020 that will reduce further the breakeven point of the company.” concluded Mr. Yaffe.

Highlights of the Full Year of 2020 compared to the Full Year of 2019

• 
  Revenues
  
  for the full year of 2020 amounted to
  
  $36.7 million
  
  compared to revenues of
  
  $34.8 million
  
  in 2019, an increase of 5.5% YoY.
• 
  Gross profit
  
  increased by 28.3% to
  
  $7.7 million
  
  (21.0% of revenues) in 2020 from gross profit of
  
  $6.0 million
  
  (17.3% of revenues) in 2019.
• 
  Operating profit
  
  was
  
  $3.0 million
  
  in 2020 compared to an operating profit of
  
  $1.4 million
  
  in 2019, an increase of 114.3% YoY.
• 
  Net profit
  
  was
  
  $2.6 million
  
  , or
  
  $0.58
  
  per fully diluted share in 2020, compared to a net profit of
  
  $1.8 million
  
  , or
  
  $0.48
  
  per fully diluted share in 2019. Net profit increased 44.4% YoY.
• 
  EBITDA
  
  was
  
  $4.6 million
  
  in 2020 compared to EBITDA of
  
  $3.8 million
  
  in 2019, an increase of 21.1% YoY.
• 
  Net cash provided by operating activities
  
  amounted to
  
  $3.3 million
  
  in 2020 compared to
  
  $2.6 million
  
  in 2019.
• 
  Cash and cash equivalents
  
  as of
  
  December 31, 2020
  
  were
  
  $4.7 million
  
  compared to
  
  $1.6 million
  
  as of
  
  December 31, 2019
  
  .

Highlights of the Fourth Quarter of 2020 compared to the Fourth Quarter of 2019

• 
  Revenues
  
  for the fourth quarter of 2020 were
  
  $9.5 million
  
  compared to revenues of
  
  $8.6 million
  
  in the fourth quarter of 2019, an increase of 10.5% YoY.
• 
  Gross profit
  
  increased by 46.7% from gross profit of
  
  $1.5 million
  
  (17.0% of revenues) in the fourth quarter of 2019 to
  
  $2.2 million
  
  (23.2% of revenues) in the fourth quarter of 2020.
• 
  Operating profit
  
  was
  
  $973,000
  
  in the fourth quarter of 2020 compared to an operating profit of
  
  $379,000
  
  in the fourth quarter of 2019, an increase of 156.7% YoY.
• 
  Net profit
  
  was
  
  $766,000
  
  or
  
  $0.16
  
  per fully diluted share in the fourth quarter of 2020 compared to a net profit of
  
  $370,000
  
  or
  
  $0.08
  
  per fully diluted share in the fourth quarter of 2019. Fourth quarter net profit increased 107.0% YoY.
• 
  EBITDA
  
  was
  
  $1.4 million
  
  in the fourth quarter of 2020 compared to EBITDA of
  
  $817,000
  
  in the fourth quarter of 2019, an increase of 71.4% YoY.
• 
  Short term credit and loans
  
  were down from 24.5% of the total balance sheet at the end of 2019 to 1.9% at the end of 2020.

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.

Conference Call

Eltek will conduct a conference call to discuss the results today,

Thursday, March 25, 2021

, at

8:30 a.m. Eastern Time

. 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

:                     1-888-668-9141

Israel:                                   03-9180691

International:                      +972-3-9180691

At:

8:30 a.m. Eastern Time


5:30 a.m. Pacific Time


14:30 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

Forward Looking Statement:

Some of the statements included in this press release may be forward-looking statements that involve a number of risks and uncertainties including, but not limited to 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. Any forward-looking statements set forth in this press release speak only as of the date of this press release. The information found on our website is not incorporated by reference into this press release and is included for reference purposes only.

Investor Contact:

Alon Mualem



Chief Financial Officer



[email protected]



+972-3-9395023

View original content:

http://www.prnewswire.com/news-releases/eltek-reports-full-year-and-fourth-quarter-2020-financial-results-301255853.html

SOURCE Eltek Ltd.