6-K 1 zk1415386.htm 6-K zk1415386.htm


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 August 2014

TAT TECHNOLOGIES LTD.
(Name of Registrant)

      P.O.BOX 80, Gedera 70750 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 x   Form 40-F o

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): o

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): o

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o                       No x

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ____________
 
 
 

 
 
TAT Technologies Ltd.

6-K Items

1.
Press Release dated August 7, 2014 re TAT Technologies Ltd. Reports Second Quarter 2014 Results.

 
2

 
 
ITEM 1

Press Release
Source: TAT Technologies Limited

TAT Technologies Reports Second Quarter 2014 Results

GEDERA, Israel, Thursday, August 7, 2014 - TAT Technologies Ltd. (NASDAQ: TATT - News) (“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 and six month periods ended June 30, 2014.

Mr. Itsik Maaravi, TAT’s President & CEO commented, “The first half of 2014 was a challenging period for TAT group in terms of revenues and profit, due to temporary change in product mix, delays in some orders and effects of the strong Israeli Shekel. Continuously, we increase our marketing and sales efforts, as well as our activity in improving our production efficiency and the responsiveness and support to our customers. We believe that our efforts will assist us in improving our performance throughout the next quarters of 2014. 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”.
 
Financial Highlights for the Second quarter of 2014:
 
·
Total Revenue: $20.6 million compared to $19.8 million for the second quarter of 2013.

·
Operating income: $0.7 million compared to $1.4 million for the second quarter of 2013.
 
·
Net income: $0.3 million compared to $1.0 million for the second quarter of 2013.
 
·
Earnings per share basic and diluted: $0.04 per share compared to $0.12 per share in the second quarter of 2013.

·
Cash and cash equivalents and short-term bank deposits: $32.4 million compared to $29.9 million as of December 31, 2013.

·
Distribution of cash dividend: On May 7, 2014, the Company paid a cash dividend in the total amount of $2,000 (approximately NIS6.9 million), or approximately $0.2271 per share (approximately NIS0.783 per share), for all of the shareholders of record on April 21, 2014.

 
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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.
 
TAT also holds approximately 28% of the equity of First Aviation Services, a world-wide service provider to the aerospace industry and a one-stop-shop for maintenance, repair and overhaul services (for propellers and landing gear) for the General Aviation Industry.
 
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
 
 
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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.
 
 
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TAT TECHNOLOGIES AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

   
June 30,
   
December 31,
 
   
2014
   
2013
 
   
(unaudited)
   
(audited)
 
ASSETS
           
Current Assets:
           
Cash and cash equivalents
  $ 22,258     $ 19,814  
Short-term bank deposits
    10,128       10,059  
Accounts receivable-trade (net of allowance for doubtful accounts of  $123 as of June 30, 2014 and December 31, 2013)
    14,948       18,387  
Other accounts receivable and prepaid expenses
    4,093       3,314  
Inventory
    30,024       29,395  
Assets held for sale
    -       9,959  
                 
Total current assets
    81,451       90,928  
                 
Long-term assets:
               
Investment in an affiliated company
    2,463       2,289  
Funds in respect of employee rights upon retirement
    2,917       2,900  
Long-term deferred tax
    1,537       1,616  
Property, plant and equipment, net
    11,697       11,147  
                 
Total Long-term assets
    18,614       17,952  
                 
Total assets
  $ 100,065     $ 108,880  
                 
LIABILITIES AND EQUITY
               
                 
Current Liabilities:
               
Short term bank loan and current maturities of long-term loans
  $ -     $ 910  
Trade accounts payables
    5,448       6,941  
Other accounts payable and accrued expenses
    5,599       5,815  
Liabilities held for sale
    -       3,428  
                 
Total current liabilities
    11,047       17,094  
                 
Long-term liabilities:
               
Other accounts payable
    47       58  
Liability in respect of employee rights upon retirement
    3,143       3,140  
Long-term deferred tax liability
    1,098       1,058  
                 
Total long-term liabilities
    4,288       4,256  
EQUITY:
           
Share capital
    2,792       2,792  
Additional paid-in capital
    64,465       64,454  
Treasury stock at cost
    (2,088 )     (2,088 )
Accumulated other comprehensive loss
    -       (429 )
Retained earnings
    19,561       20,840  
Total TAT Technologies shareholders' equity
    84,730       85,569  
Non-controlling interest
    -       1,961  
                 
Total equity:
    84,730       87,530  
                 
Total liabilities and equity
  $ 100,065     $ 108,880  
 

 
 
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TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)
 
   
Three months ended
   
Six months ended
   
Year ended
 
   
June 30,
   
December 31,
 
   
2014
   
2013
   
2014
   
2013
   
2013
 
   
(unaudited)
   
(audited)
 
Revenues:
 
 
                         
Products
  $ 7,434     $ 7,759     $ 15,532     $ 16,014     $ 34,364  
Services
    13,166       12,060       23,485       23,384       45,187  
      20,600       19,819       39,017       39,398       79,551  
                                         
Cost and operating expenses:
                                       
Products
    5,605       5,876       11,600       11,687       24,892  
Services
    10,862       9,106       19,656       17,898       35,987  
      16,467       14,982       31,256       29,585       60,879  
Gross Profit
    4,133       4,837       7,761       9,813       18,672  
                                         
Operating expenses:
                                       
Research and development, net
    306       204       561       428       713  
Selling and marketing
    889       800       1,639       1,566       3,150  
General and administrative
    2,279       2,439       4,555       4,752       9,512  
Other income
    -       -       (7 )     (7 )     (20 )
      3,474       3,443       6,748       6,739       13,355  
Operating income from continuing operations
    659       1,394       1,013       3,074       5,317  
                                         
Financial income (expenses), net
    18       17       29       33       (50 )
Loss from dilution of interests in affiliated company
    (45 )     -       (45 )     -       -  
                                         
Income from continuing operations before taxes on income
    632       1,411       997       3,107       5,267  
                                         
Taxes on income
    398       453       495       936       1,041  
                                         
Net income from continuing operations after taxes on income
    234       958       502       2,171       4,226  
Share in results of affiliated company
    77       187       219       1,098       1,025  
                                         
Net income from continuing operations
    311       1,145       721       3,269       5,251  
Net loss from discontinued operations, net of tax
    -       (126 )     -       (542 )     (2,429 )
                                         
Net income attributable to TAT Technologies Ltd. shareholders
  $ 311     $ 1,019     $ 721     $ 2,727     $ 2,822  
                                         
Basic and diluted income (loss) per share
                                       
Net income from continuing operations per share attributable to controlling interest
  $ 0.04     $ 0.13     $ 0.08     $ 0.37     $ 0.60  
Loss from discontinued operations per share attributable to controlling interest
    -       (0.01 )     -       (0.06 )     (0.28 )
    $ 0.04     $ 0.12     $ 0.08     $ 0.31     $ 0.32  
                                         
Weighted average number of shares outstanding
                                       
Basic
    8,805,236       8,798,570       8,805,236       8,798,570       8,799,237  
Diluted
    8,829,645       8,798,570       8,832,992       8,798,570       8,808,920  

 
7

 

TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

   
Three months ended
   
Six months ended
   
Year ended December 31,
 
   
June 30,
       
   
2014
   
2013
   
2014
   
2013
   
2013
 
   
(unaudited)
   
(audited)
 
CASH FLOWS FROM OPERATING ACTIVITIES:
                             
Net income
  $ 311     $ 1,019     $ 721     $ 2,727     $ 2,822  
Net loss from discontinued operations
    -       (126 )     -       (542 )     (2,429 )
Income from continuing operations
    311       1,145       721       3,269       5,251  
                                         
Adjustments to reconcile net income to net cash provided by operating activities:
    112       971       532       342       1,243  
                                         
Changes in operating assets and liabilities
    549       3,304       995       1,335       709  
                                         
Net cash provided by operating activities
    972       5,420       2,248       4,946       7,203  
                                         
Cash flows provided by (used in) investing activities
    (989 )     (706 )     3,105       1,006       70  
                                         
Cash flows used in financing activities
    (2,883 )     (2,608 )     (2,909 )     (2,313 )     (2,936 )
                                         
Cash flows provided by (used in)discontinued operations
    -       (23 )     -       967       514  
                                         
Net increase (decrease) in cash and cash equivalents
    (2,900 )     2,083       2,444       4,606       4,851  
                                         
Cash and cash equivalents at beginning of period
    25,158       20,309       19,814       17,786       17,786  
                                         
Cash and cash equivalents at end of period
    22,258       22,342       22,258       22,342       22,637  
Less- Cash and cash equivalents of discontinued operations at end of period
    -       3,279       -       3,279       2,823  
                                         
Cash and cash equivalents of continuing operations at end of period
  $ 22,258     $ 19,133     $ 22,258     $ 19,133     $ 19,814  
 
 
8

 
 
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.
 
 
TAT TECHNOLOGIES LTD.
(Registrant)
 
       
 
By:
/s/ Tiko Gadot  
   
Tiko Gadot
 
   
Chief Financial Officer
 
       
Date: August 7, 2014
 
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