TAT TECHNOLOGIES LTD. GEDERA, Israel, May 28, 2015 /PRNewswire/ -- TAT Technologies Ltd. (NASDAQ: TATT) ("the Company"), a leading provider of services and products to the commercial and military aerospace and ground defense industries, reported today its results for the three month period ended March 31, 2015.
Mr. Itsik Maaravi, TAT's President & CEO commented, "The results of the first quarter of 2015 reflect an improvement in revenues and gross profit of approximately 11% and 13% respectively compared to the first quarter of 2014.
We continue to focus on our core capabilities, establishing relations with key players in relevant markets and investing in the development of new products. We plan to continue and increase our marketing and sales efforts. In addition, we are continuing to preserve a strong balance sheet with limited liabilities, strong working capital and sufficient financial assets to support the future growth of our operations, including seeking potential candidates for acquisition."
Financial Highlights for the First quarter of 2015:
-- Total Revenue: $20.5 million compared to $18.4 million for the first
quarter of 2014, an increase of 11%.
-- Operating income: $1.1 million compared to $0.4 million for the first
quarter of 2014, an increase of 175%.
-- Sale of equity interest in an affiliated company: The sale of 23.18% of
FAvS' common stock for an aggregate amount of $3.6 million contributed
approximately $1.5 million of capital gains during the first quarter of
2015of which approximately $0.3 million are attributed to a revaluation
of our remaining holdings in FAvS.
-- Net income: $2 million compared to $0.4 million for the first quarter of
2014.
-- Earnings per share: $0.22 per share compared to $0.05 per share in the
first quarter of 2014.
-- Cash and cash equivalents and short-term bank deposits: $30.5 million
compared to $28 million as of December 31, 2014.
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 three segments: (i) Original Equipment Manufacturing or "OEM" of Heat Management Solutions (ii) Heat Transfer Services and Products and (iii) Maintenance, Repair and Overhaul or "MRO" services of Aviation Components.
TAT's activities in the area of OEM of Heat Management Solutions primarily include the design, development, manufacture and sale of (i) a broad range of heat transfer components (such as heat exchangers, pre-coolers and oil/fuel hydraulic coolers) used in mechanical and electronic systems on-board commercial, military and business aircraft; (ii) environmental control and cooling systems on board aircraft and for ground applications; and (iii) a variety of other electronic and mechanical aircraft accessories and systems such as pumps, valves, power systems and turbines.
TAT's activities in the area of Heat Transfer Services and Products include the maintenance, repair and overhaul of heat transfer equipment and in a lesser extent, the manufacturing of certain heat transfer products. TAT's Limco subsidiary operates FAA certified repair station, which provides heat transfer MRO services and products 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 maintenance, repair and overhaul of APUs, Landing Gear 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.
For more information of TAT Technologies, please visit our web-site: www.tat-technologies.com
Tiko Gadot - CFO
TAT Technologies Ltd.
Tel: 972-8-862-8500
TikoG@tat-technologies.com
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 SHEETS
(Unaudited, in thousands, except share data)
-------------------------------------------
March 31, December 31,
2015 2014
---- ----
(unaudited) (audited)
ASSETS
Current Assets:
Cash and cash equivalents $25,361 $22,894
Short-term bank deposits 5,089 5,089
Accounts receivable-trade
(net of allowance for
doubtful accounts of $123
as of March 31, 2015 and
December 31, 2014) 16,359 15,657
Other accounts receivable
and prepaid expenses 3,935 4,298
Inventories, net 36,454 35,404
------ ------
Total current assets 87,198 83,342
------ ------
Long-term assets:
Investment in an affiliated
company - 2,556
Investment in equity 423 -
Funds in respect of employee
rights upon retirement 2,496 2,496
Long-term deferred tax 1,355 1,550
Property, plant and
equipment, net 11,772 11,524
------ ------
Total Long-term assets 16,046 18,126
------ ------
Total assets $103,244 $101,468
======== ========
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payables trade 4,120 5,886
Other accounts payable and
accrued expenses 7,289 5,651
Total current liabilities 11,409 11,537
Long-term liabilities:
Other accounts payable 27 34
Liability in respect of
employee rights upon
retirement 2,624 2,655
Long-term deferred tax
liability 1,744 1,774
Total long-term liabilities 4,395 4,463
----- -----
Total liabilities 15,804 16,000
EQUITY:
Share capital 2,793 2,793
Additional paid-in capital 64,506 64,491
Treasury stock at cost (2,088) (2,088)
Retained earnings 22,229 20,272
------ ------
Total equity 87,440 85,468
Total liabilities and equity $103,244 $101,468
======== ========
TAT TECHNOLOGIES AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, in thousands, except share data)
-------------------------------------------
Three months ended Year ended
March 31, December 31,
2015 2014 2014
---- ----
Revenues:
Products $6,979 $8,098 $31,363
Services 13,507 10,319 49,363
20,486 18,417 80,726
------ ------ ------
Cost and operating expenses:
Products 5,480 5,995 23,340
Services 10,893 8,794 40,286
16,373 14,789 63,626
------ ------ ------
Gross Profit 4,113 3,628 17,100
----- ----- ------
Operating expenses:
Research and
development, net 138 255 1,070
Selling and
marketing 725 750 3,203
General and
administrative 2,167 2,276 9,019
Other loss (income) 1 (7) (11)
--- --- ---
3,031 3,274 13,281
----- ----- ------
Operating income 1,082 354 3,819
----- --- -----
Financial income
(expenses), net (185) 11 (1,294)
Income before taxes
on income 897 365 2,525
Taxes on income 431 97 1,360
--- --- -----
Net income after
taxes on income 466 268 1,165
Share in results and
sale of equity
investment of
affiliated company 1,491 142 267
----- --- ---
Net income $1,957 $410 $1,432
====== ==== ======
Basic and diluted income per share
Net income per share $0.22 $0.05 $0.16
===== ===== =====
Weighted average number of shares outstanding
Basic 8,808,344 8,805,236 8,805,495
Diluted 8,808,344 8,827,702 8,826,542
========= ========= =========
TAT TECHNOLOGIES AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
------------------------
Three months ended Year ended December 31,
March 31,
---------
2015 2014 2014
---- ---- ----
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,957 $410 $1,432
Adjustments to reconcile net income to net cash provided by (used in) operating activities: (586) 420 2,465
Changes in operating assets and liabilities (1,629) 446 (5,355)
------ --- ------
Net cash provided by (used in) operating activities (258) 1,276 (1,458)
Cash flows provided by investing activities 2,725 4,094 4,624
Cash flows used in financing activities - (26) (2,909)
--- --- ------
Net increase in cash and cash equivalents 2,467 5,344 257
Cash and cash equivalents at beginning of period 22,894 19,814 22,637
------ ------ ------
Cash and cash equivalents at end of period 25,361 25,158 22,894
------ ------ ------
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SOURCE TAT Technologies Ltd.
