6-K 1 zk1618543.htm 6-K zk1618543.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 May 2016

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 May 20, 2016 re TAT Technologies Ltd. Reports First Quarter 2016 Results.
 
ITEM 1

Press Release
Source: TAT Technologies Limited

TAT Technologies Reports First Quarter 2016 Results

GEDERA, Israel, May 20, 2016 - 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 unaudited results for the three month period ended March 31, 2016.

Financial Highlights for the First quarter of 2016 (unaudited):
 
Total Revenue: $23.6 million compared to $20.5 million in the first quarter of 2015.

Operating income: $0.3 million compared to $1.1 million in the first quarter of 2015.
 
EBITDA: $1.1 million compared to $1.6 million in the first quarter of 2015.
   
Net income: $0.04 million compared to $1.9 million in the first quarter of 2015.
 
Earnings per share basic and diluted: $0.01 per share compared to $0.22 per share in the first quarter of 2015.

Cash and cash equivalents and short-term bank deposits: $26 million compared to $26.8 million as of December 31, 2015.

 
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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 four segments:  (i) Original Equipment Manufacturing or “OEM” of Heat Management Solutions (ii) Heat Transfer Services and Products (iii) Maintenance, Repair and Overhaul or “MRO” services of Aviation Components; and (iv) overhaul and coating of jet engine components.

TAT’s activities in the area of OEM Heat Management Solutions are focused on the design, development, manufacture, and sale of the following: (i) a broad range of heat transfer components including 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 to a lesser extent, the manufacture of certain heat transfer product parts. TAT’s Limco subsidiary operates an 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 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 jet engine overhaul includes the overhaul and coating of jet engine components such as turbine vanes and blades, fan blades, variable inlet guide vanes, afterburner flaps and other components.
 
For more information of TAT Technologies Ltd., please visit our web-site:
www.tat-technologies.com

Guy Nathanzon – CFO
TAT Technologies Ltd.
Tel: 972-8-862-8500
guyn@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 SHEET
(In thousands)

   
March 31,
   
December 31,
 
   
2016
   
2015
 
   
(unaudited)
   
(audited)
 
ASSETS
           
CURRENT ASSETS:
           
Cash and cash equivalents
  $ 19,832     $ 18,688  
Short-term bank deposits
    6,133       8,122  
Accounts receivable, net
    20,545       19,151  
Other current assets and prepaid expenses
    4,161       3,025  
Inventory, net
    36,465       36,664  
                 
Total current assets
    87,136       85,650  
                 
NON-CURRENT ASSETS:
               
Investment in First Aviation Services Inc.
    169       169  
Funds in respect of employee rights upon retirement
    2,564       2,626  
Deferred income taxes
    990       890  
Intangible assets, net
    1,280       1,314  
Property, plant and equipment, net
    19,293       18,934  
                 
Total non-current assets
    24,296       23,933  
                 
Total assets
  $ 111,432     $ 109,583  
                 
LIABILITIES AND EQUITY
               
                 
CURRENT LIABILITIES:
               
Accounts payable
    7,959       7,022  
Accrued expenses
    8,367       7,815  
Total current liabilities
    16,326       14,837  
                 
NON CURRENT LIABILITIES:
               
Other long-term liabilities
    42       189  
Liability in respect of employee rights upon retirement
    2,889       2,871  
Deferred income taxes
    244       262  
                 
 Total non-current liabilities
    3,175       3,322  
                 
Total liabilities
    19,501       18,159  
                 
EQUITY:
               
Share capital
    2,797       2,793  
Additional paid-in capital
    64,669       64,529  
Treasury stock at cost
    (2,088 )     (2,088 )
Accumulated other comprehensive loss
    314       (4 )
Retained earnings
    26,239       26,194  
Total shareholders' equity
    91,931       91,424  
                 
Total liabilities and shareholders' equity
  $ 111,432     $ 109,583  

 
5

 

TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)

   
Three months ended
   
Year ended
 
   
March 31,
   
December 31,
 
   
2016
   
2015
   
2015
 
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
         
(Revised)
       
Revenues:
 
 
             
   Products
  $ 8,069     $ 6,979     $ 31,339  
   Services
    15,565       13,507       54,268  
      23,634       20,486       85,607  
                         
Cost of revenue:
                       
Products
    6,691       5,554       24,466  
Services
    13,008       11,078       47,476  
      19,699       16,632       71,942  
Gross Profit
    3,935       3,854       13,665  
                         
Operating expenses:
                       
Research and development, net
    264       138       890  
Selling and marketing
    1,010       725       2,903  
General and administrative
    2,410       1,924       8,469  
Other expenses
    1       1       631  
Gain on bargain purchase
    -       -       (4,833 )
      3,685       2,788       8,060  
Operating income
    250       1,066       5,605  
                         
Financial expenses, net
    (19 )     (185 )     (349 )
                         
Income before taxes on income
    231       881       5,256  
                         
Taxes on income
    186       431       644  
                         
Income before equity investment
    45       450       4,612  
Share in results of equity investment of affiliated Company
    -       1,491       1,237  
                         
Net income
  $ 45     $ 1,941     $ 5,849  
                         
Basic and diluted income per share
                       
                         
Net income per share
  $ 0.01     $ 0.22     $ 0.66  
                         
Weighted average number of shares outstanding
                       
Basic
    8,828,444       8,808,344       8,808,344  
Diluted
    8,828,444       8,808,344       8,810,689  

 
6

 
 
TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)

   
Three months ended
   
Year ended
 
   
March 31,
   
December 31,
 
   
2016
   
2015
   
2015
 
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
                   
Net income
  $ 45     $ 1,941     $ 5,849  
Other comprehensive income
                       
Net unrealized gains (losses) from derivatives
    365       -       (5 )
Reclassification adjustments  for gains included in net income and inventory
    (47 )     -       1  
       Total other comprehensive income
  $ 363     $ 1,941     $ 5,845  

 
7

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

   
Three months ended March 31,
   
Year ended December 31,
 
   
2016
   
2015
   
2015
 
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
         
(Revised)
       
CASH FLOWS FROM OPERATING ACTIVITIES:
                 
Net income attributable to TAT Technologies Ltd. shareholders
  $ 45     $ 1,941     $ 5,849  
                         
Adjustments to reconcile net income to net cash provided by operating activities:
                       
                         
Depreciation and amortization
    851       554       2,781  
Loss on sale of  property, plant and equipment
    1       1       -  
Interest from short-term bank deposits and restricted deposits
    (11 )     -       (33 )
Loss (gain) from change in fair value of derivatives
    (53 )     -       10  
Provision for doubtful accounts
    43       -       206  
Share in results and sale of equity investment of affiliated Company
    -       (1,491 )     (1,237 )
Share based compensation
    14       15       38  
Gain on bargain purchase
    -       -       (4,833 )
Liability in respect of employee rights upon retirement
    18       (31 )     28  
Deferred income taxes, net
    (118 )     366       (21 )
Changes in operating assets and liabilities:
                       
    Increase in trade accounts receivable
    (1,437 )     (702 )     (2,375 )
    Decrease (increase) in other current assets and prepaid expenses
    (536 )     418       (85 )
Decrease (increase) in inventory
    172       (1,036 )     (571 )
    Increase (decrease) in trade accounts payable
    427       (1,722 )     436  
    Increase in accrued expenses
    552       1,436       525  
    Increase (decrease) in other long-term liabilities
    (147 )     (7 )     15  
                         
Net cash provided by (used in) operating activities
  $ (179 )   $ (258 )   $ 733  
                         
CASH FLOWS FROM INVESTING ACTIVITIES:
                       
Acquisitions of subsidiary, net of cash acquired
    -       -       (1,796 )
Proceeds from sale of equity investment of affiliated Company
    -       3,624       3,624  
Funds in respect of employee rights upon retirement
    (140 )     (52 )     8  
Proceeds from sale of property and equipment
    1       6       9  
Purchase of property and equipment
    (668 )     (853 )     (3,315 )
Investments in short-term deposits
    -       -       (8,109 )
Maturities of short-term deposits
    2,000       -       5,109  
Cash flows provided by (used in) investing activities
  $ 1,193     $ 2,725     $ (4,470 )
                         
Cash flows  provided by (used in) financing activities
  $ 130     $ -     $ (469 )
                         
Net increase (decrease) in cash and cash equivalents
    1,144       2,467       (4,206 )
                         
Cash and cash equivalents at beginning of period
    18,688       22,894       22,894  
                         
Cash and cash equivalents at end of period
  $ 19,832     $ 25,361     $ 18,688  
 
Additional comment:
 
During the three months ended March 31, 2015 the Company recognized a gain from the revaluation to fair value of the remaining holding in the investment in First Aviation Services Inc. The capital gain from the revaluation was $254. During the three months period ended December 31, 2015 the Company adjusted the gain from the revaluation reported in the three months period ended March 31, 2015.

 
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/ Guy Nathanzon
 
   
Guy Nathanzon
 
   
Chief Financial Officer
 
 
Date: May 20, 2016
 
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