Form 6-K ELTEK LTD For: May 18
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
F O R M 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2022
Commission file number 000-28884
Eltek Ltd.
(Name of Registrant)
Sgoola Industrial Zone, Petach Tikva, Israel
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form
20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7): ☐
Eltek Ltd.
EXPLANATORY NOTE
On May 18, 2022 Eltek issued a press release
reporting 2022 first quarter financial results. A copy of this press release is furnished herewith as Exhibit 99.1:
99.1
|
Announcement: Eltek Reports 2022 First Quarter Financial Results.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
ELTEK LTD.
|
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(Registrant)
|
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By: /s/ Ron Freund
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Ron Freund
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Chief Financial Officer
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Date: May 18, 2022
EXHIBIT INDEX
EXHIBIT NO.
|
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DESCRIPTION
|
|
|
|
Exhibit 99.1
Press Release
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Eltek
Reports 2022 First Quarter Financial Results
• |
Revenues of $9.8 million in the first quarter of 2022 compared to $7.2 million in the first quarter of 2021
|
• |
Gross profit of $2.0 million in the first quarter of 2022 compared to $1.1 million in the first quarter of 2021
|
• |
Profit before income tax of $0.8 million in the first quarter of 2022 compared to $0.2 million in the first quarter of 2021
|
• |
Net profit of $0.6 million in the first quarter of 2022 compared to net profit of $0.2 million in the first quarter of 2021
|
• |
Net cash provided by operating activities of $0.3 million during the first quarter of 2022
|
• |
Cash and cash equivalents as of March 31, 2022 were $9.1 million
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Petach Tikva, Israel (May 18, 2022) 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 quarter ended March 31, 2022.
“The world's exit from the Covid-19 crisis, the increased demand for defense products and the continuation of the trend of shifting back high end PCB production to Western countries continue to
have a positive impact on our Company's results of operations. The Company's backlog as of March 31, 2022 increased by 50% compared to the beginning of the year. Eltek is a key supplier to several major defense contractors and its revenues and
backlog are influenced directly from the increased demand of their customers”, said Eli Yaffe, Chief Executive Officer of Eltek. “During the first quarter of 2022, we began our accelerated investment program at the Company's plant in Petach Tikva
in order to cope with the increase in demand we forecast and the need for higher efficiency. The first phase of the plan includes investments in production lines and infrastructure amounting to $9 million. The total cost of our accelerated
investment plan is expected to be $15 million. We are also continuing our efforts to increase our skilled workforce in order to expand our production capacity”, concluded Mr. Yaffe.
Highlights of the First Quarter of 2022 compared to the First Quarter of 2021
• |
Revenues were $9.8 million in the first quarter of 2022 compared to revenues of $7.2 million in the first quarter of 2021;
|
• |
Gross profit was $2.0 million (20.1% of revenues) in the first quarter of 2022 compared to $1.1 (15.9% of revenues) in the first quarter of 2021;
|
• |
Operating profit was $0.7 million in the first quarter of 2022 compared to operating profit of $0.1 million in the first quarter of 2021;
|
• |
Profit before income tax was $0.8 million in the first quarter of 2022 compared to $0.2 million in the first quarter of 2021;
|
• |
Net profit was $0.6 million or $0.11 per fully diluted share for the first quarter of 2022 compared to net profit of $0.2 million or $0.04 per fully diluted share in the first quarter of 2021;
|
• |
EBITDA was a $1.1 million (11% of revenues) in the first quarter of 2022 compared to EBITDA of $0.6 million (8% of revenues) in the first quarter of 2021;
|
• |
Net cash provided by operating activities amounted to $0.3 million in the first quarter of 2022 compared to net cash provided by operating activities of $2.5 million in the first quarter of 2021;
|
• |
Cash and cash equivalents as of March 31, 2022 were $9.1 million compared to $9.3 million as of December 31, 2021.
|
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
Today, Wednesday, May 18, 2022, at 8:30am Eastern 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:
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1-866-860-9642
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Israel:
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03-918-0691
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International:
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+972-3-918-0691
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at:
8:30am Eastern Time
5:30am Pacific Time
15:30pm Israel Time
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A 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 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
+972-3-939-5023
(Tables follow)
Eltek Ltd.
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||||||
Consolidated Statements of Operations
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||||||
(In thousands US$, except per share data)
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Three months ended
|
||||||||
March 31,
|
||||||||
2022
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2021
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|||||||
Revenues
|
9,755
|
7,205
|
||||||
Costs of revenues
|
(7,794
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)
|
(6,063
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)
|
||||
Gross profit
|
1,961
|
1,142
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||||||
Selling, general and administrative expenses
|
1,293
|
1,000
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||||||
R&D expenses, net
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17
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-
|
||||||
Operating profit
|
651
|
142
|
||||||
Financial income, net
|
121
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104
|
||||||
Other income (loss), net
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-
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(2
|
)
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|||||
Profit before income tax
|
772
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244
|
||||||
Tax expenses
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140
|
15
|
||||||
Net Profit
|
632
|
229
|
||||||
Earnings per share
|
||||||||
Basic and diluted net profit per ordinary share
|
0.11
|
0.04
|
||||||
Weighted average number of ordinary shares used to compute
|
||||||||
basic net profit per ordinary share (in thousands)
|
5,843
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5,840
|
||||||
Weighted average number of ordinary shares used to compute
|
||||||||
diluted net profit per ordinary share (in thousands)
|
5,843
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5,866
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Eltek Ltd.
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||||||
Consolidated Balance Sheets
|
||||||
(In thousands US$)
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March 31,
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December 31,
|
|||||||
2022
|
2021
|
|||||||
Assets
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
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9,054
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9,283
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||||||
Receivables: Trade, net of provision for doubtful accounts
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8,043
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7,021
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||||||
Other
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856
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798
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||||||
Inventories
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5,469
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4,893
|
||||||
Prepaid expenses
|
582
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586
|
||||||
Total current assets
|
24,004
|
22,581
|
||||||
Long term assets
|
||||||||
Restricted deposits
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222
|
226
|
||||||
Severance pay fund
|
65
|
66
|
||||||
Deferred tax assets and long term tax receivables, net
|
3,348
|
3,563
|
||||||
Operating lease right of use assets
|
8,536
|
8,979
|
||||||
Total long term assets
|
12,171
|
12,834
|
||||||
Fixed assets, less accumulated depreciation
|
7,192
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7,368
|
||||||
Total Assets
|
43,367
|
42,783
|
||||||
Liabilities and Shareholder's equity
|
||||||||
Current liabilities
|
||||||||
Short-term credit and current maturities of long-term debts
|
783
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708
|
||||||
Accounts payable: Trade
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4,568
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4,044
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||||||
Other
|
4,011
|
3,577
|
||||||
Short-term operating lease liabilities
|
861
|
931
|
||||||
Total current liabilities
|
10,223
|
9,260
|
||||||
Long-term liabilities
|
||||||||
Long term debt, excluding current maturities
|
3,631
|
3,921
|
||||||
Employee severance benefits
|
339
|
344
|
||||||
Long-term operating lease liabilities
|
7,814
|
8,186
|
||||||
Total long-term liabilities
|
11,784
|
12,451
|
||||||
Equity
|
||||||||
Ordinary shares, NIS 3.0 par value authorized 10,000,000 shares, issued and outstanding
5,849,678 at March 31. 2022 and 5,840,357 at December 31, 2021
|
5,305
|
5,296
|
||||||
Additional paid-in capital
|
22,862
|
22,846
|
||||||
Cumulative foreign currency translation adjustments
|
3,294
|
3,716
|
||||||
Capital reserve
|
1,340
|
1,287
|
||||||
Accumulated deficit
|
(11,441
|
)
|
(12,073
|
)
|
||||
Shareholders' equity
|
21,360
|
21,072
|
||||||
Total liabilities and shareholders' equity
|
43,367
|
42,783
|
Eltek Ltd.
|
||||||
Unaudited Non-GAAP EBITDA Reconciliations
|
||||||
(In thousands US$)
|
Non-GAAP EBITDA Reconciliations
|
Three months ended
|
|||||||
March 31,
|
||||||||
2022
|
2021
|
|||||||
Unaudited
|
||||||||
GAAP net Income
|
632
|
229
|
||||||
Add back items:
|
||||||||
Financial income, net
|
(121
|
)
|
(104
|
)
|
||||
Income tax expenses
|
140
|
15
|
||||||
Depreciation and amortization
|
435
|
443
|
||||||
Non-GAAP EBITDA
|
1,086
|
583
|
Eltek Ltd.
|
||||||
Consolidated Statement of Cash flow
|
||||||
(In thousands US$)
|
Three months ended
|
||||||||
March 31,
|
||||||||
2022
|
2021
|
|||||||
Cash flows from operating activities:
|
||||||||
Net Income
|
632
|
229
|
||||||
Adjustments to reconcile net profit to net
|
||||||||
cash flows provided by operating activities:
|
||||||||
Depreciation and amortization
|
435
|
443
|
||||||
Stock-based compensation
|
53
|
7
|
||||||
Decrease in deferred tax assets and long term tax receivable
|
140
|
8
|
||||||
628
|
458
|
|||||||
Decrease (increase) in operating lease right-of-use assets
|
4
|
4
|
||||||
Decrease (increase) in trade receivables
|
(1,160
|
)
|
3,028
|
|||||
Decrease (increase) in other receivables and prepaid expenses
|
(82
|
)
|
(220
|
)
|
||||
Decrease (increase) in inventories
|
(674
|
)
|
(502
|
)
|
||||
Increase (decrease) in trade payables
|
485
|
(200
|
)
|
|||||
Increase (decrease) in other liabilities and accrued expenses
|
506
|
(323
|
)
|
|||||
Increase (decrease) in employee severance benefits, net
|
2
|
(6
|
)
|
|||||
(919
|
)
|
1,781
|
||||||
Net cash provided by operating activities
|
341
|
2,468
|
||||||
Cash flows from investing activities:
|
||||||||
Purchase of fixed assets
|
(289
|
)
|
(208
|
)
|
||||
Net cash used in investing activities
|
(289
|
)
|
(208
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Short- term bank credit, net
|
-
|
(377
|
)
|
|||||
Exercise of options
|
25
|
-
|
||||||
Repayment of long-term loans from bank
|
(114
|
)
|
(38
|
)
|
||||
Repayment of credit from fixed asset payables
|
(3
|
)
|
(11
|
)
|
||||
Net cash used in financing activities
|
(92
|
)
|
(426
|
)
|
||||
Effect of translation adjustments
|
(189
|
)
|
(163
|
)
|
||||
Net increase (decrease) in cash and cash equivalents
|
(229
|
)
|
1,671
|
|||||
Cash and cash equivalents at beginning of the period
|
9,283
|
4,735
|
||||||
Cash and cash equivalents at period end
|
9,054
|
6,406
|
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