Eltek Reports Full Year and Fourth Quarter 2021 Financial Results

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    <br /> Eltek Reports Full Year and Fourth Quarter 2021 Financial Results<br />

    PR Newswire


    • Revenues of

      $33.8 million

      in 2021 compared to



      $36.7 million

      in 2020.

    • Net profit of

      $5.0 million

      in 2021 compared to a


      net profit of

      $2.6 million

      in 2020


      .

    • Revenues of

      $9.5 million

      in the


      fourth


      quarter of 2021 compared to



      $9.5 million

      in the


      fourth


      quarter of


      2020.

    • Net


      profit


      of

      $3.8 million



      in the


      fourth


      quarter of 2021 compared to


      net profit of



      $0.8 million



      in the


      fourth


      quarter of


      2020.

    • Gross margin of 20% for 2021.


    • $3.8 million

      EBITDA in the year, or 11% of total sales.

    • Cash flow provided by operating activities of

      $3.9 million

      for the year.

    PETACH-TIKVA,

    Israel

    ,

    March 23, 2022

    /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, 2021

    .

    Eltek_Logo


    Mr.

    Eli Yaffe

    , Chief Executive Officer

    , commented: “2021 was a challenging year in which we had to deal with a shortage of raw materials and the devaluation of the US Dollar against the Israeli Shekel. These two challenges impacted our results of operations. Despite this, we managed to end the year with

    $1.5 million

    of pre-tax income. In the fourth quarter we released the tax loss carryforward valuation allowance recorded in prior years, which resulted in income of

    $3.5 million

    . This release was based on our conclusion that it is more likely than not that our company will realize its deferred tax losses in the future. Thus, our net profit for 2021 was

    $5.0 million


    .

    ”

    “In the fourth quarter and the beginning of 2022 Eltek succeeded in building a strong backlog for 2022. I am also glad to report that we received the

    $1.4 million

    purchase order from a defense customer which we reported earlier on

    February 7, 2022

    . We are continuing with our R&D programs in order to maintain our position as an Industry Innovation leader as well as to streamline and improve production processes and increase operational efficiency

    ,

    ” Mr. Yaffe added.

    “We ended 2021 with a strong balance sheet. The company’s cash balances as of the end of 2021 amounted to approximately $

    9.3

    million and we had working capital of

    $13.3 million

    . Our improved financial condition allows us to continue to invest in equipment and machinery.

    During 2021, we were able to increase the company’s customer base and we hope to continue this positive trend during 2022 as well,

    ”

    Mr. Yaffe concluded.



    Highlights of the Full Year of 2021 compared to the Full Year of 2020


    • Revenues

      for the full year of 2021 amounted to

      $33.8 million

      compared to revenues of

      $36.7 million

      in 2020, a decrease of 8% YoY.

    • Gross profit

      was

      $6.9 million

      (20% of revenues) in 2021 compared to a gross profit of

      $7.7 million

      (21% of revenues) in 2020.

    • Operating profit

      was

      $1.9 million

      in 2021 compared to operating profit of

      $3.0 million

      in 2020.

    • Net profit

      was

      $5.0 million

      or

      $0.86

      per fully diluted share in 2021, compared to a net profit of

      $2.6 million

      , or

      $0.58

      per fully diluted share in 2020.

    • EBITDA

      was

      $3.8 million

      in 2021 compared to EBITDA of

      $4.6 million

      in 2020.

    • Net cash provided by operating activities

      amounted to

      $3.9 million

      in 2021 compared to

      $3.3 million

      in 2020.

    • Cash and cash equivalents

      as of

      December 31, 2021

      were

      $9.3 million

      compared to

      $4.7 million

      as of

      December 31, 2020

      .



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


    • Revenues

      for the fourth quarter of 2021 were

      $9.5 million

      the same as in the fourth quarter of 2020.

    • Gross profit

      was

      $2.0 million

      (21% of revenues) in the fourth quarter of 2021 compared to

      $2.2 million

      (23% of revenues) in the fourth quarter of 2020.

    • Operating profit

      was

      $0.6 million

      in the fourth quarter of 2021 compared to operating profit of

      $1.0 million

      in the fourth quarter of 2020.

    • Net profit

      was

      $3.8 million

      or

      $0.65

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

      $0.8 million

      or

      $0.16

      per fully diluted share in the fourth quarter of 2020.

    • EBITDA

      was

      $1.1 million

      in the fourth quarter of 2021 compared to

      $1.4 million

      in the fourth quarter 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 23, 2021

    , at

    8:30 a.m. Eastern Time

    . The call will feature remarks by

    Eli Yaffe

    , Chief Executive Officer and

    Ron Freund

    , Chief Financial Officer.

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


    United States

    :                       1-866-860-9642

    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:



    Ron Freund



    Chief Financial Officer



    [email protected]



    +972-3-9395023



    Eltek Ltd.



    Consolidated Statements of Operations



    (In thousands US$, except per share data)



    Three months ended



    Twelve months ended



    December  31,



    December  31,



    2021



    2020



    2021



    2020



    Revenues



    9,521



    9,501



    33,823



    36,707



    Costs of revenues



    (7,565)



    (7,290)



    (26,926)



    (28,969)



    Gross profit



    1,956



    2,211



    6,897



    7,738


    R&D expenses, net



    (23)



    (2)



    (78)



    (2)


    Selling, general and administrative expenses



    (1,310)



    (1,236)



    (4,870)



    (4,704)



    Operating profit



    623



    973



    1,949



    3,032


    Financial expenses, net



    (387)



    (179)



    (488)



    (337)


    Other income (expenses), net



    –



    (6)



    41



    (16)



    Profit before income tax



    236



    788



    1,502



    2,679


    Tax income (expenses), net



    3,600



    (22)



    3,537



    (71)



    Net Profit



    3,836



    766



    5,039



    2,608



    Earnings per share


    Basic net profit per ordinary share



    0.66



    0.16



    0.86



    0.58


    Diluted net profit per ordinary share



    0.65



    0.16



    0.86



    0.58


    Weighted average number of ordinary shares used to compute


    basic net profit per ordinary share (in thousands)



    5,840



    4,841



    5,840



    4,495


    Weighted average number of ordinary shares used to compute


    diluted net profit per ordinary share (in thousands)



    5,860



    4,852



    5,869



    4,501



    Eltek Ltd.



    Consolidated Balance Sheets



    (In thousands US$)



    December  31,



    December 31,



    2021



    2020



    Assets



    Current assets


    Cash and cash equivalents



    9,283



    4,735


    Receivables:   Trade, net of provision for doubtful accounts



    7,021



    9,062


    Other



    798



    700


    Inventories



    4,893



    3,704


    Prepaid expenses



    586



    619



    Total current assets



    22,581



    18,820



    Long term assets


    Restricted deposits



    226



    62


    Severance pay fund



    66



    64


    Deferred tax assets and long term tax receivables, net



    3,563



    –


    Operating lease right of use assets



    8,979



    8,948



    Total long term assets



    12,834



    9,074



    Fixed assets, less accumulated depreciation



    7,368



    7,263



    Total Assets



    42,783



    35,157



    Liabilities and Shareholder’s equity



    Current liabilities


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



    708



    676


    Accounts payable: Trade



    4,044



    4,452


    Other



    3,577



    3,831


    Short-term operating lease liabilities



    931



    742



    Total current liabilities



    9,260



    9,701



    Long-term liabilities


    Long term debt, excluding current maturities



    3,921



    1,495


    Employee severance benefits



    344



    338


    Deferred tax liabilities, net



    –



    84


    Long-term operating lease liabilities



    8,186



    8,272



    Total long-term liabilities



    12,451



    10,189



    Equity


    Ordinary shares, NIS 3.0  par value authorized 10,000,000 shares, issued and outstanding 5,840,357 at December 31, 2021 and December 31, 2020



    5,296



    5,296


    Additional paid-in capital



    22,846



    22,846


    Cumulative foreign currency translation adjustments



    3,716



    3,153


    Capital reserve



    1,287



    1,084


    Accumulated deficit



    (12,073)



    (17,112)



    Shareholders’ equity



    21,072



    15,267



    Total liabilities and shareholders’ equity



    42,783



    35,157



    Eltek Ltd.



    Unaudited Non-GAAP EBITDA Reconciliations



    (In thousands US$)



    Non-GAAP EBITDA Reconciliations



    Three months ended



    Twelve months ended



    December  31,



    December  31,



    2021



    2020



    2021



    2020



    Unaudited



    Unaudited



    GAAP net Income



    3,836



    766



    5,039



    2,608




    Add back items:


    Financial expenses, net



    387



    179



    488



    337


    Income tax expense (income)



    (3,600)



    22



    (3,537)



    71


    Depreciation and amortization



    450



    415



    1,781



    1,592



    Non-GAAP EBITDA



    1,073



    1,382



    3,771



    4,608



    Eltek Ltd.



    Consolidated Statement of  Cash flow



    (In thousands US$)



    Three months ended



    Twelve months ended



    December  31,



    December  31,



    2021



    2020



    2021



    2020



    Cash flows from operating activities:



    Net Income



    3,836



    766



    5,039



    2,608



    Adjustments to reconcile net profit to net



    cash flows provided by operating activities:


    Depreciation and amortization



    450



    415



    1,781



    1,592


    Capital (gain) loss on disposal of fixed assets, net



    –



    14



    –



    (2)


    Stock-based compensation



    74



    30



    203



    121


    Revaluation of long term loans



    –



    –



    –



    2


    Increase in long term tax receivables



    (1,013)



    –



    (1,013)



    –


    Decrease (increase) in deferred tax assets, net



    (2,572)



    15



    (2,550)



    33



    (3,061)



    474



    (1,579)



    1,746


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



    25



    79



    66



    74


    Decrease (increase) in trade receivables



    (301)



    (2,054)



    2,260



    (956)


    Decrease (increase) in other receivables and prepaid expenses



    (161)



    334



    (18)



    (556)


    Decrease (increase) in inventories



    (499)



    93



    (1,023)



    290


    Increase (decrease)  in trade payables



    424



    (476)



    (451)



    (449)


    Increase (decrease) in other liabilities and accrued expenses



    164



    267



    (414)



    448


    Increase (decrease) in employees severance benefits, net



    –



    20



    (5)



    47



    (348)



    (1,737)



    415



    (1,102)



    Net cash provided by (used in) operating activities



    427



    (497)



    3,875



    3,252



    Cash flows from investing activities:


    Purchase of fixed assets



    (173)



    (279)



    (1,535)



    (1,082)


    Restricted deposits



    –



    –



    (156)



    (58)


    Repayment from insurance



    44



    –



    44



    –



    Net cash used in investing activities



    (129)



    (279)



    (1,647)



    (1,140)



    Cash flows from financing activities:


    Short- term bank credit, net



    –



    328



    (377)



    (1,600)


    Repayment of short- term shareholder loan



    –



    (3,090)



    –



    (3,661)


    Issuance of shares in rights offering, net



    5,594



    5,594


    Repayment of long-term loans from bank



    (114)



    (38)



    (301)



    (183)


    Proceeds from long-term loans



    –



    –



    3,063



    1,141


    Repayment of credit from fixed asset payables



    25



    (86)



    (261)



    (477)



    Net cash provided by (used in) financing activities



    (89)



    2,708



    2,124



    814



    Effect of translation adjustments



    189



    152



    196



    181



    Net increase in cash and cash equivalents



    398



    2,084



    4,548



    3,107



    Cash and cash equivalents at beginning of the period



    8,885



    2,651



    4,735



    1,628



    Cash and cash equivalents at period end



    9,283



    4,735



    9,283



    4,735

    Cision
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    https://www.prnewswire.com/news-releases/eltek-reports-full-year-and-fourth-quarter-2021-financial-results-301508809.html

    SOURCE Eltek Ltd.

    PR Newswire
    March 23, 2022 – 4:30 AM PDT