Eltek Ltd. Reports Full year and Fourth Quarter 2022 Financial Results

PETACH TIKVA, Israel, March 9, 2023 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs), today announced its financial results for the full year and fourth quarter ended December 31, 2022.

Full Year and Fourth Quarter 2022 Highlights

• Revenues were $39.6 million (Q4 - $10.5 million)
• Operating profit was $3.0 million (Q4 - $0.8 million)
• Profit before tax was $3.9 million (Q4 - $0.9 million)
• Net profit was $3.2 million or $0.55 per fully diluted share (Q4 - $0.8 million or $0.14 per fully diluted share)
• Net cash provided by operating activities amounted to $3.8 million (Q4 - $1.3 million)

"We are pleased to announce strong growth in revenues and earnings for the year 2022. This was due to increased demand for our high-quality printed circuit boards. The growth in revenues is a testament to the hard work and dedication of our team, as well as the loyalty of our customers. We are excited to continue building upon this momentum in the coming year," said Eli Yaffe, CEO of Eltek.

"The global PCB market is expected to continue to grow in the coming years, with the military, aerospace and defense sectors being the key drivers. As a leading provider of PCBs to these industries, Eltek is well-positioned to capitalize on this trend and continues to deliver strong results for our shareholders. We ended 2022 with a 70% growth in backlog.

During Q4 we received final approval from the Israel Innovation Authority ("IIA") for a 40%, royalty bearing participation in an approximately $800,000 one-year development program, which started in January 2023.  This program is part of our investments in CapEx and research and development to bring new, high-quality products to the market and further drive growth in the future," continued Mr. Yaffe.

"We have a strong balance sheet and a talented team, and we will continue to invest in our operations, products and people to sustain our long-term success," concluded Mr. Yaffe.

2022 Full Year GAAP Financial ResultsRevenues for 2022 were $39.7 million compared to $33.8 million in 2021.Gross profit for 2022 was $8.3 million (21% of revenues) compared to $6.9 million (20% of revenues) in 2021.Operating profit for 2022 was $3.0 million compared to operating profit of $1.9 million in 2021.Financial income for 2022 was $0.9 million compared to financial expense of $0.5 million in 2021. Financial income, which was primarily generated in the second quarter of 2022, resulted from the erosion of the NIS against the US dollar.Profit before income tax for 2022 was $3.9 million compared to $1.5 million in 2021.Net profit for 2022 was $3.2 million or $0.55 per fully diluted share compared to net profit of $5.0 million or $0.86 per fully diluted share in 2021. Net profit in 2021 includes a one-time tax benefit of $3.5 million.

2022 Full Year Non-GAAP Financial ResultsEBITDA for 2022 was a $4.5 million (11% of revenues) compared to EBITDA of $3.8 million (11% of revenues) in 2021.

Fourth Quarter 2022 GAAP Financial ResultsRevenues for the fourth quarter of 2022 were $10.5 million compared to $9.5 million in the fourth quarter of 2021.Gross profit for the fourth quarter of 2022 was $2.2 million (21% of revenues) compared to $2.0 (21% of revenues) in the fourth quarter of 2021.Operating profit for the fourth quarter of 2022 was $0.8 million compared to operating profit of $0.6 million in the fourth quarter of 2021.Profit before income tax for the fourth quarter of 2022 was $0.9 million compared to $0.2 million in the fourth quarter of 2021.Net profit for the fourth quarter of 2022 was $0.8 million or $0.14 per fully diluted share compared to net profit of $3.8 million or $0.65 per fully diluted share in the Fourth quarter of 2021. Net income in the fourth quarter of 2021 includes a one-time tax benefit of $3.6 million.

Fourth Quarter 2022 Non-GAAP Financial ResultsEBITDA for the fourth quarter of 2022 was a $1.2 million (12% of revenues) compared to EBITDA of $1.1 million (11% of revenues) in the fourth quarter of 2021.

Conference CallToday, Thursday, March 9, 2023, at 8:30am Eastern Time (15:30pm Israel Time, 5:30am Pacific Time), Eltek will conduct a conference call to discuss the results. 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: 1-866-860-9642Israel:              03-918-0691International:   +972-3-918-0691

To Access a Replay of the CallA replay of the call will be available for 30 days on the Investor Info section on Eltek's corporate website at http://www.nisteceltek.com approximately 24 hours after the conference call is completed.

About EltekEltek – "Innovation Across the Board", is a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs), and is an Israeli leading company 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 StatementSome 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.

About our Non-GAAP Financial InformationThe 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.

Investor ContactRon FreundChief Financial Officer[email protected]+972-3-939-5023

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SOURCE Eltek Ltd.