Back to mobile site

TAT Technologies Reports First Quarter 2023 Results

FREE Breaking News Alerts from StreetInsider.com!

E-mail Address

StreetInsider.com Top Tickers, 7/15/2026

1. IBM
2. SPY
3. LCID
4. JPM
5. BAC
6. ERAS
7. AAPL
8. TREX
9. SPCX
10. WFC

May 31, 2023 3:42 AM EDT

NETANIA, Israel, May 31, 2023 /PRNewswire/ -- TAT Technologies Ltd. (NASDAQ: TATT) ("TAT" or the "Company"), a leading provider of products and services to the commercial and military aerospace and ground defense industries, reported today its unaudited results for the three-month period ended March 31, 2023.

Financial highlights for the first quarter of 2023:

  • Revenues for Q1 2023 increased by 26.6% to $25.2 million compared to $19.9 million in Q1 2022.
  • Gross profit for Q1 2023 increased to $4.3 million (16.9% of revenues) compared to $3 million in Q1 2022 (15.2% of revenues).
  • Adjusted EBITDA for Q1 2023 increased by 328% to $2.2 million compared to $0.5 million in Q1 2022.
  • Net income for Q1 2023 was $0.66 million compared to a net loss of $1.6 million in Q1 2022.
  • Operational cash flow was positive $1.4 million compared to $0 million in Q1 2021.

Mr. Igal Zamir, TAT's CEO and President commented on the results: "We are excited with the results of the first quarter of 2023. As our industry continues to ramp up, it is the second consecutive quarter that we continue to increase our revenues, improve gross profits, and improve EBITDA and net income. Cash flow from operations continues to be positively strong. The world's supply chain challenges continue to negatively affect our results and customer satisfaction. As of the end of March 2023 our past due customers' orders amount to $33 million.

Our order backlog and LTA continue to grow as the demand for our products and services rapidly increases and as we enter the second half of the year, we expect to see the fruits of the strategic deals that we signed with Honeywell both for the APU 331-500 and APU 131. These strategic deals represent a major growth engine and are expected to yield a much better profitability."

Mr. Zamir continued: "We are optimistic with the coming quarters of 2023 and expect substantial growth in revenues and EBITDA compared to 2022".

Non-GAAP Financial Measures

To supplement the consolidated financial statements presented in accordance with GAAP, the Company also presents Adjusted EBITDA.  The adjustments to the Company's GAAP results are made with the intent of providing both management and investors a more complete understanding of the Company's underlying operational results, trends and performance. Adjusted EBITDA is calculated as net income excluding the impact of: the Company's share in results of affiliated companies, share-based compensation, taxes on income, financial (expenses) income, net, and depreciation and amortization. Adjusted EBITDA, however, should not be considered as alternative to net income and operating income for the period and may not be indicative of the historic operating results of the Company; nor it is meant to be predictive of potential future results. Adjusted EBITDA is not measure of financial performance under generally accepted accounting principles and may not be comparable to other similarly titled measures for other companies. See reconciliation of Adjusted EBITDA in pages 13 below.

About TAT Technologies LTD

TAT Technologies Ltd. is a leading provider of services and products to the commercial and military aerospace and ground defense industries. TAT operates under four segments: (i) Original equipment manufacturing ("OEM") of heat transfer solutions and aviation accessories through its Gedera facility; (ii) MRO services for heat transfer components and OEM of heat transfer solutions through its Limco subsidiary; (iii) MRO services for aviation components through its Piedmont subsidiary; and (iv) Overhaul and coating of jet engine components through its Turbochrome subsidiary. TAT controlling shareholders is the FIMI Private Equity Fund.

TAT's activities in the area of OEM of heat transfer solutions and aviation accessories primarily include the design, development and manufacture of (i) broad range of heat transfer solutions, such as pre-coolers heat exchangers and oil/fuel hydraulic heat exchangers, used in mechanical and electronic systems on board commercial, military and business aircraft; (ii) environmental control and power electronics cooling systems installed on board aircraft in and ground applications; and (iii) a variety of other mechanical aircraft accessories and systems such as pumps, valves, and turbine power units.

TAT's activities in the area of MRO Services for heat transfer components and OEM of heat transfer solutions primarily include the MRO of heat transfer components and to a lesser extent, the manufacturing of certain heat transfer solutions. TAT's Limco subsidiary operates an FAA-certified repair station, which provides heat transfer MRO services for airlines, air cargo carriers, maintenance service centers and the military.

TAT's activities in the area of MRO services for aviation components include the MRO of APUs, landing gears and other aircraft components. TAT's Piedmont subsidiary operates an FAA-certified repair station, which provides aircraft component MRO services for airlines, air cargo carriers, maintenance service centers and the military.

TAT's activities in the area of overhaul and coating of jet engine components includes the overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable inlet guide vanes and afterburner flaps.

For more information of TAT Technologies Ltd., please visit our web-site:  www.tat-technologies.com

Contact:

Mr. Ehud Ben-Yair
Chief Financial Officer
Tel: 972-8-862-8503
[email protected]

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements which include, without limitation, statements regarding possible or assumed future operation results. These statements are hereby identified as "forward-looking statements" for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause our results to differ materially from management's current expectations. Actual results and performance can also be influenced by other risks that we face in running our operations including, but are not limited to, general business conditions in the airline industry, changes in demand for our services and products, the timing and amount or cancellation of orders, the price and continuity of supply of component parts used in our operations, the change of control that will occur on the sale by the receiver of the Company's shares held by our previously controlling stockholders, and other risks detailed from time to time in the Company's filings with the Securities Exchange Commission, including, its annual report on form 20-F and its periodic reports on form 6-K. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statement.

 

TAT TECHNOLOGIES AND ITS SUBSIDIARIES

 

CONDENSED CONSOLIDATED BALANCE SHEET

(In thousands)

 



March 31,


December 31,


2023


2022



(unaudited)


(audited)


ASSETS





CURRENT ASSETS:





Cash and cash equivalents

$               9,196


$      7,722


Accounts receivable, net

17,643


15,622


Inventory, net

 

42,848


45,759


Other current assets and prepaid expenses

4,912


6,047







Total current assets

74,599


75,150







NON-CURRENT ASSETS:





 Restricted deposit

302


304


 Investment in affiliates

1,733


1,665


Funds in respect of employee rights upon retirement

710


780


 Deferred income taxes

1,207


1,229


Intangible assets, net

1,722


1,623


Property, plant and equipment, net

42,560


43,423


Operating lease right of use assets

2,257


2,477







Total non-current assets

50,491


51,501


Total assets

$              125,090


$    126,651


 

 

 

LIABILITIES AND EQUITY










CURRENT LIABILITIES:





Current maturities of long-term loans

$                   1,975


$        1,876


Credit line from bank

6,112


6,101


Accounts payable

9,112


10,233


Accrued expenses

9,395


9,686


Operating lease liabilities

866


904


Provision for restructuring plan

132


190







Total current liabilities

27,592


28,990







NON CURRENT LIABILITIES:





    Long-term loans

18,764


19,408


Liability in respect of employee rights upon retirement

1,069


1,148


Operating lease liabilities

1,347


1,535







 Total non-current liabilities

21,180


22,091


Total liabilities

$                48,772


51,081







EQUITY:





Share capital

2,842


2,842


Additional paid-in capital

66,335


66,245


Treasury stock at cost

(2,088)


(2,088)


Accumulated other comprehensive income

(26)


(26)


Retained earnings

9,255


8,597


Total shareholders' equity

76,318


75,570







Total liabilities and shareholders' equity

$            125,090


$      126,651







 

 

TAT TECHNOLOGIES AND ITS SUBSIDIARIES

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share and per share data)

 


 



Three months ended


Year ended



March 31,


December 31,



2023


2022


2022



(Unaudited)


(Unaudited)


(Audited)









Revenues:







Products

$         7,291


$         6,319


$    25,460


Services

17,926


13,635


59,096



25,217


19,954


84,556









Cost of goods:







Products

6,274


5,744


21,631


Services

14,685


11,165


46,997



20,959


16,909


68,628


Gross Profit

4,258


3,045


15,928









Operating expenses:







Research and development, net

99


(27)


479


Selling and marketing

1,159


1,335


5,629


General and administrative

2,459


2,385


9,970


Other income

(406)


(81)


(90)


Restructuring and other expenses

-


927


1,715



3,311


4,539


17,703









Operating income (loss)

948


(1,494)


(1,775)









Interest expenses

(366)


(104)


(902)


Other financial income (expenses), net

(19)


 

170


1,029









Income (loss) before taxes on income (tax benefit)

563


 

(1,428)


(1,648)









Taxes on income (tax benefit)

(27)


107


98









Income (loss) before share of equity investment

590


 

(1,535)


(1,746)









Share in results of affiliated companies

68


 

(27)


184


Net income (loss) from continued operation

$    658


 

$     (1,562)


$   (1,562)


 

Net income from discontinued operation

-


 

 

-


-


 

Net income (loss)

$    658


 

$     (1,562)


$   (1,562)









 

 

 

Basic and diluted income per share














Net income (loss) per share basic and diluted

$     0.074


 

$     (0.17)


$    (0.175)









Weighted average number of shares outstanding :







Basic and Diluted

8,911,546


8,886,546


8,911,546









 

 

TAT TECHNOLOGIES AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)


 



Three months ended


Year ended



March 31,


December 31,



2023


2022


2022



(Unaudited)


(Unaudited)


(Audited)









Net income (loss)

$       658


$         (1,562)


$     (1,562)


Other comprehensive income (loss)







Net unrealized losses from derivatives

-


(32)


(89)


       Reclassification adjustments for gains included in net 
        income and inventory

-


 

-


30


        Total comprehensive income (loss)

$         658


$         (1,594)


$     (1,621)









 

 

TAT TECHNOLOGIES AND ITS SUBSIDIARIES

 

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In thousands, except share data)




Share capital














Number of
shares
issued


Amount


Additional
paid-in
capital


Accumulated
other
comprehensive
income (loss)


Treasury
shares


Retained
earnings


Total equity
















BALANCE AT DECEMBER 31, 2010


9,149,169


$ 2,809


$       65,711


$          128


$     (2,088)


$     13,329


$80,281


CHANGES DURING THE YEAR ENDED DECEMBER 31, 2021:
















Comprehensive loss


-


-


-


(95)


-


(3,562)


(3,657)


 Share based compensation


-


-


160


-


-


-


160


BALANCE AT DECEMBER 31, 2021


9,149,169


$ 2,809


$       65,871


$            33


$     (2,088)


$     10,159


$76,784


CHANGES DURING THE YEAR ENDED
 DECEMBER 31, 2022:
















Comprehensive loss


-


-


-


(59)


-


(1,562)


(1,621)


Exercise of option


36,850


33


156


-


-


-


189


Share based compensation


-


-


218


-


-


-


218


BALANCE AT DECEMBER 31, 2022


9,186,019


$ 2,842


$       66,245


$           (26)


$     (2,088)


$       8,597


$75,570


CHANGES DURING THE PERIOD ENDED
 MARCH 31, 2023 (unaudited):
















Comprehensive profit


-


-


-


-


-


658


658


Exercise of option


-


-


-


-


-


-


-


Share based compensation


-


-


90


-


-


-


90


BALANCE AT MARCH 31, 2023 (unaudited)


9,186,019


$ 2,842


$       66,335


$            (26)


$     (2,088)


9,255


$76,318




















 

 







TAT TECHNOLOGIES AND ITS SUBSIDIARIES

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

 


 


 




Three months ended


Year ended




March 31,


December 31,




2023


2022


2022




(Unaudited)


(Unaudited)


(audited)










CASH FLOWS FROM OPERATING ACTIVITIES:








Net income (loss) from continued operations


658


(1,562)


(1,562)










Adjustments to reconcile net income (loss) to net cash provided
 by (used in) operating activities:
















Depreciation and amortization


1,041


973


3,706


Loss (gain) from change in fair value of derivatives


-


17


8


Provision for doubtful accounts


(3)


-


138


Share in results of affiliated Company 


(68)


27


(184)


Share based compensation


90


49


218


 Noncash finance expense


(6)


(35)


-


Lease modification


-


-


(82)



Increase (decrease) in provision for restructuring expenses


(58)


(345)


(467)


Liability in respect of employee rights upon retirement


(79)


(117)


(356)


Capital gain from sale of fixed assets


(456)


(81)


(90)



Deferred income taxes, net


22


107


23


Changes in operating assets and liabilities:








    Increase in trade accounts receivable


(2,012)


(895)


(2,659)


    Decrease (increase) in other current assets and prepaid expenses


 

1,205


 

(62)


(1,459)


Decrease (increase) in inventory


2,959


(2,222)


(5,069)


    Decrease (increase) in trade accounts payable


(1,121)


536


1,143


    Increase (decrease) in accrued expenses


(290)


42


2,727


    Decrease in other long-term liabilities


(115)


(161)


(902)


Net cash provided by (used in) operating activities


$    1,767


$    (3,729)


$      (4,867)










CASH FLOWS FROM INVESTING ACTIVITIES:








Proceeds from sale of property and equipment


1,560


84


93


Purchase of property and equipment


(1,433)


(4,010)


(16,213)


Purchase of intangible assets


-


-


-


Cash flows provided by (used in) investing activities


$      127


$   (3,926)


$   (16,120)










CASH FLOWS FROM FINANCING ACTIVITIES:








Short-term credit received (Repayments) from banks


-


(3,000)


(1,071)


Proceeds (repayments) from long-term loans received


(422)


10,504


16,680


Exercise of options


-


67


189


Cash flows provided by (used in) financing activities  


$     (422)


$    7,571


$    15,798


















Net increase (decrease) in cash and cash equivalents and
restricted cash

 


1,472


 

(84)


(5,189)


Cash and cash equivalents and restricted cash at beginning
of period


8,026


 

13,215


13,215










Cash and cash equivalents and restricted cash at the end of
period


$     9,498


 

$     13,131


8,026


 

 

TAT TECHNOLOGIES AND ITS SUBSIDIARIES

 

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (NON-GAAP)

(UNAUDITED)

(In thousands)


 



Three months ended


Year ended



March 31,


December 31,



2023


2022


2022
















Net income (Loss)

$             658


$           (1,562)


$        (1,562)


Adjustments:







Share in results and sale of equity
 investment of affiliated companies

(68)


 

27


 

(184)


Taxes on income (tax benefit)

(27)


107


98


Financial expense/ (income), net

385


(66)


(127)


Depreciation and amortization

1,041


1,025


3,878


Restructuring expenses

-


927


1,715


Share based compensation

90


49


218


Adjusted EBITDA

$            2,079


$            507


$      4,036









 

Cision View original content:https://www.prnewswire.com/news-releases/tat-technologies-reports-first-quarter-2023-results-301838282.html

SOURCE TAT Technologies Ltd.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

PRNewswire, Press Releases

Related Entities

Earnings