1. |
Press Release dated March 9, 2022,
re TAT Technologies Ltd. Reports Full Year 2021 Results.
|
Press Release
|
Source: TAT Technologies Limited
|
• |
Total revenues for the twelve months ended December 31, 2021, were $78 million compared to $75.3 million for the twelve months ended December 31, 2020, an increase of 3.6%.
|
• |
Gross profit for the twelve months ended December 31, 2021, were $11.3 million (14.5% of revenues) compared to $8.4 million (11.2% of revenues) for the twelve months ended December 31, 2020, an increase of 35%. The Gross margin for 2021
without a onetime impact of the restructuring plan was $12.5 million (16% out of revenues). The improvement in gross margin is mainly attribute to government grants that the company received during the year and to cost cutting measures that
were taken during the year.
|
• |
Adjusted EBITDA for the twelve months ended December 31, 2021, was $3.3 million compared to $1.1 million for the twelve months ended December 31, 2020. An improvement of 296%.
|
• |
GAAP net loss from continued operations for the twelve months ended December 31, 2021, was $4 million ($2.2 million without a onetime impact of our restructuring plan) compared to GAAP net loss from continued operations of $3.5 million for
the twelve months ended December 31, 2020. A decrease of 62% in net loss from continued operations without a onetime impact of our restructuring plan.
|
• |
Cash net of debt for December 31, 2021, was $0.5 million compared to $16.2 million for December 31, 2020. During the years 2020 and 2021, the Company made significant capital investments related to the three large strategic agreements with
Honeywell and the restructuring plan.
|
December 31,
|
||||||||
2021
|
2020
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
12,872
|
$
|
24,128
|
||||
Accounts receivable, net of allowance for credit losses of $389
and $306 thousands as of December 31, 2021 and December 31, 2020 respectively |
13,887
|
11,355
|
||||||
Inventory, net
|
41,003
|
41,223
|
||||||
Other current assets and prepaid expenses
|
4,219
|
2,737
|
||||||
Total current assets
|
71,981
|
79,443
|
||||||
NON-CURRENT ASSETS:
|
||||||||
Restricted deposit
|
343
|
176
|
||||||
Investment in affiliates
|
695
|
771
|
||||||
Funds in respect of employee rights upon retirement
|
1,157
|
1,186
|
||||||
Deferred income taxes
|
1,252
|
566
|
||||||
Property, plant and equipment, net
|
30,462
|
25,737
|
||||||
Operating lease right of use assets
|
3,114
|
6,767
|
||||||
Intangible assets, net
|
1,829
|
1,475
|
||||||
Total non-current assets
|
38,852
|
36,678
|
||||||
Total assets
|
$
|
110,833
|
$
|
116,121
|
December 31,
|
||||||||
2021
|
2020
|
|||||||
LIABILITIES AND EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Current maturities of long-term loans
|
$
|
691
|
$
|
1,477
|
||||
Credit line from bank
|
6,008
|
3,000
|
||||||
Accounts payable
|
9,093
|
12,222
|
||||||
Accrued expenses
|
6,959
|
6,691
|
||||||
Operating lease liabilities
|
1,169
|
1,614
|
||||||
Provision for restructuring plan
|
657
|
-
|
||||||
Liabilities belong to discontinued operation
|
-
|
179
|
||||||
Total current liabilities
|
24,577
|
25,183
|
||||||
NON-CURRENT LIABILITIES:
|
||||||||
Long-term loans
|
5,979
|
3,489
|
||||||
Liability in respect of employee rights upon retirement
|
1,504
|
1,410
|
||||||
Operating lease liabilities
|
1,989
|
5,758
|
||||||
Total non-current liabilities
|
9,472
|
10,657
|
||||||
COMMITMENTS AND CONTINGENCIES LIABILITIES (NOTE 15)
|
||||||||
Total liabilities
|
34,049
|
35,840
|
||||||
EQUITY:
|
||||||||
Ordinary shares of NIS 0.9 par value:
Authorized: 13,000,000 shares at December 31, 2021 and at December 31, 2020; Issued: 9,149,169 shares at December 31, 2021 and at December 31, 2020; Outstanding: 8,874,696 shares at
December 31, 2021 and at December 31, 2020
|
2,809
|
2,809
|
||||||
Additional paid-in capital
|
65,871
|
65,711
|
||||||
Treasury shares, at cost, 274,473 shares at December 31, 2021 and 2020
|
(2,088
|
)
|
(2,088
|
)
|
||||
Accumulated other comprehensive income
|
33
|
128
|
||||||
Retained earnings
|
10,159
|
13,721
|
||||||
Total shareholders' equity
|
76,784
|
80,281
|
||||||
Total liabilities and shareholders' equity
|
$
|
110,833
|
$
|
116,121
|
Year ended December 31,
|
||||||||||||
2021
|
2020
|
2019
|
||||||||||
Revenue:
|
||||||||||||
Products
|
$
|
25,870
|
$
|
22,739
|
$
|
25,019
|
||||||
Services
|
52,103
|
52,620
|
72,460
|
|||||||||
77,973
|
75,359
|
97,479
|
||||||||||
Cost of revenue:
|
||||||||||||
Products
|
23,761
|
20,751
|
21,557
|
|||||||||
Services
|
42,942
|
46,173
|
60,622
|
|||||||||
66,703
|
66,924
|
82,179
|
||||||||||
Gross profit
|
11,270
|
8,435
|
15,300
|
|||||||||
Operating expenses:
|
||||||||||||
Research and development, net
|
517
|
185
|
113
|
|||||||||
Selling and marketing
|
5,147
|
4,369
|
4,929
|
|||||||||
General and administrative
|
8,354
|
7,612
|
7,654
|
|||||||||
Other (income) expenses
|
(468
|
)
|
315
|
-
|
||||||||
Restructuring expenses, net
|
1,755
|
-
|
-
|
|||||||||
15,305
|
12,481
|
12,696
|
||||||||||
Operating income (loss)
|
(4,035
|
)
|
(4,046
|
)
|
2,604
|
|||||||
Financial expenses
|
(683
|
)
|
(999
|
)
|
(1,270
|
)
|
||||||
Financial income
|
143
|
229
|
848
|
|||||||||
Income (loss) before taxes on income (tax benefit)
|
(4,575
|
)
|
(4,816
|
)
|
2,182
|
|||||||
Taxes on income (tax benefit)
|
(662
|
)
|
(1,517
|
)
|
589
|
|||||||
Income (loss) before share of equity investment
|
(3,913
|
)
|
(3,299
|
)
|
1,593
|
|||||||
Share in results of equity investment of affiliated companies
|
(76
|
)
|
(185
|
)
|
(132
|
)
|
||||||
Net income (loss) from continued operation
|
$
|
(3,989
|
)
|
$
|
(3,484
|
)
|
$
|
1,461
|
Year ended December 31, |
||||||||||||
2021
|
2020
|
2019
|
||||||||||
Net income (loss) from discontinued operation
|
$
|
427
|
$
|
(1,845
|
)
|
$
|
(655
|
)
|
||||
Net income (loss)
|
$
|
(3,562
|
)
|
$
|
(5,329
|
)
|
$
|
806
|
||||
Net income (loss) per share basic and diluted from continued operation
|
$
|
(0.45
|
)
|
$
|
(0.39
|
)
|
$
|
0.17
|
||||
Net income (loss) per share basic and diluted from discontinued operation
|
$
|
0.05
|
$
|
(0.21
|
)
|
$
|
(0.07
|
)
|
||||
Net income (loss) per share basic and diluted
|
$
|
(0.4
|
)
|
$
|
(0.6
|
)
|
$
|
0.1
|
||||
Weighted average number of shares outstanding:
|
||||||||||||
Basic and diluted
|
8,874,696
|
8,874,696
|
8,874,696
|
Year ended December 31, |
||||||||||||
2021
|
2020
|
2019
|
||||||||||
Net income (loss)
|
$
|
(3,562
|
)
|
$
|
(5,329
|
)
|
$
|
806
|
||||
Other comprehensive income (loss), net
|
||||||||||||
Net unrealized gains (losses) from derivatives
|
(76
|
)
|
232
|
372
|
||||||||
Reclassification adjustments for gains from derivatives included in net income
|
(19
|
)
|
(130
|
)
|
(140
|
)
|
||||||
Total other comprehensive income (loss)
|
$
|
(95
|
)
|
$
|
102
|
$
|
232
|
|||||
Total comprehensive income (loss)
|
$
|
(3,657
|
)
|
$
|
(5,227
|
)
|
$
|
1,038
|
Ordinary shares
|
Accumulated
|
|||||||||||||||||||||||||||
Number of shares issued
|
Amount
|
Additional paid-in capital
|
other comprehensive income (loss)
|
Treasury shares
|
Retained earnings
|
Total equity
|
||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2018
|
9,122,501
|
$
|
2,809
|
$
|
65,535
|
$
|
(206
|
)
|
$
|
(2,088
|
)
|
$
|
18,244
|
$
|
84,294
|
|||||||||||||
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2019:
|
||||||||||||||||||||||||||||
Comprehensive income
|
-
|
-
|
-
|
232
|
-
|
806
|
1,038
|
|||||||||||||||||||||
Share based compensation
|
-
|
-
|
38
|
-
|
-
|
-
|
38
|
|||||||||||||||||||||
BALANCE AT DECEMBER 31, 2019
|
9,149,169
|
$
|
2,809
|
$
|
65,573
|
$
|
26
|
$
|
(2,088
|
)
|
$
|
19,050
|
$
|
85,370
|
||||||||||||||
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2020:
|
||||||||||||||||||||||||||||
Comprehensive income (loss)
|
-
|
-
|
-
|
102
|
-
|
(5,329
|
)
|
(5,227
|
)
|
|||||||||||||||||||
Share based compensation
|
-
|
-
|
138
|
-
|
-
|
-
|
138
|
|||||||||||||||||||||
BALANCE AT DECEMBER 31, 2020
|
9,149,169
|
$
|
2,809
|
$
|
65,711
|
$
|
128
|
$
|
(2,088
|
)
|
13,721
|
$
|
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
|
Year ended December 31,
|
||||||||||||
2021
|
2020
|
2019
|
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
Net income (loss) from continued operations
|
$
|
(3,989
|
)
|
$
|
(3,484
|
)
|
$
|
1,461
|
||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
||||||||||||
Depreciation and amortization
|
4,881
|
4,065
|
4,292
|
|||||||||
Gain from change in fair value of derivatives
|
(19
|
)
|
(34
|
)
|
(311
|
)
|
||||||
Non cash finance expense
|
(73
|
)
|
566
|
354
|
||||||||
Lease modification
|
(1,315
|
)
|
-
|
-
|
||||||||
Provision for restructuring expenses
|
657
|
-
|
-
|
|||||||||
Change in provision for doubtful accounts
|
248
|
(8
|
)
|
38
|
||||||||
Share in results of affiliated companies
|
76
|
185
|
132
|
|||||||||
Share based compensation
|
160
|
138
|
38
|
|||||||||
Liability in respect of employee rights upon retirement
|
94
|
(341
|
)
|
(897
|
)
|
|||||||
Impairment of intangible assets
|
-
|
298
|
-
|
|||||||||
Impairment of fixed assets
|
1,820
|
-
|
-
|
|||||||||
Capital gain from sale of fixed assets
|
(468
|
)
|
-
|
-
|
||||||||
Deferred income taxes, net
|
(686
|
)
|
(1,438
|
)
|
(450
|
)
|
||||||
Government loan forgiveness
|
(1,442
|
)
|
-
|
-
|
||||||||
Changes in operating assets and liabilities:
|
||||||||||||
Decrease (increase) in trade accounts receivable
|
(2,934
|
)
|
9,472
|
(2,037
|
)
|
|||||||
Decrease (increase) in other current assets and prepaid expenses
|
(959
|
)
|
310
|
2,500
|
||||||||
Decrease (increase) in inventory
|
(681
|
)
|
1,868
|
(5,740
|
)
|
|||||||
Increase (decrease) in trade accounts payable
|
2,571
|
(5,336
|
)
|
3,349
|
||||||||
Increase (decrease) in accrued expenses
|
(218
|
)
|
(252
|
)
|
982
|
|||||||
Increase (decrease) in other long-term liabilities
|
8
|
(62
|
)
|
(118
|
)
|
|||||||
Net cash provided by (used in) operating activities from continued operation
|
$
|
(2,269
|
)
|
$
|
5,947
|
$
|
3,593
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||
Investment in affiliated company
|
-
|
-
|
(10
|
)
|
||||||||
Proceeds from sale of property and equipment
|
1,163
|
-
|
-
|
|||||||||
Purchase of property and equipment
|
(16,247
|
)
|
(3,894
|
)
|
(3,269
|
)
|
||||||
Purchase of intangible assets
|
(555
|
)
|
(1,513
|
)
|
-
|
|||||||
Net cash used in continued investing activities
|
$
|
(15,639
|
)
|
$
|
(5,407
|
)
|
$
|
(3,279
|
)
|
Year ended December 31,
|
||||||||||||
2021
|
2020
|
2019
|
||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||
Short-term credit received from banks
|
3,000
|
3,960
|
-
|
|||||||||
Proceeds from long-term loans received
|
3,042
|
3,692
|
||||||||||
Net cash provided by continued financing activities
|
$
|
6,042
|
$
|
7,652
|
-
|
|||||||
CASH FLOWS FROM DISCONTINUED ACTIVITIES:
|
||||||||||||
Net income (loss) from discontinued operation
|
427
|
(1,845
|
)
|
(655
|
)
|
|||||||
Net cash provided by operating activities
|
350
|
1,998
|
484
|
|||||||||
Net cash used in investing activities
|
-
|
-
|
(134
|
)
|
||||||||
Net cash provided by (used in) discontinued activities
|
$
|
777
|
$
|
153
|
$
|
(305
|
)
|
|||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
|
(11,089
|
)
|
8,345
|
9
|
||||||||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR
|
24,304
|
15,959
|
15,950
|
|||||||||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR
|
13,215
|
24,304
|
15,959
|
|||||||||
SUPPLEMENTARY INFORMATION ON INVESTING ACTIVITIES NOT INVOLVING CASH FLOW:
|
||||||||||||
Purchase of property, plant and equipment on credit
|
$
|
199
|
$
|
6,575
|
$
|
942
|
||||||
Additions of operating lease right-of-use assets and operating lease liabilities
|
$
|
399
|
$
|
1,756
|
$
|
648
|
||||||
Classification inventory to fixed assets
|
$
|
829
|
-
|
-
|
||||||||
Supplemental disclosure of cash flow information:
|
||||||||||||
Interest paid
|
$
|
(251
|
)
|
$
|
(3
|
)
|
$
|
(28
|
)
|
|||
Income taxes received (paid), net
|
$
|
-
|
$
|
(3
|
)
|
$
|
673
|
December 31,
|
December 31,
|
|||||||
2021
|
2020
|
|||||||
(audited)
|
(audited)
|
|||||||
Net income (loss)
|
$
|
(3,562
|
)
|
$
|
(5,329
|
)
|
||
Adjustments:
|
||||||||
Share in results of equity investment of affiliated companies
|
76
|
185
|
||||||
Taxes on income (tax benefit)
|
(662
|
)
|
(1,517
|
)
|
||||
Financial expenses, net
|
540
|
770
|
||||||
Exit and disposal activity
|
-
|
765
|
||||||
Depreciation and amortization
|
5,420
|
4,259
|
||||||
Net loss (income) from discontinued operation
|
(427
|
)
|
1,845
|
|||||
Share base compensation
|
160
|
138
|
||||||
Restructuring expenses
|
1,755
|
-
|
||||||
Adjusted EBITDA
|
3,300
|
1,116
|
|
TAT TECHNOLOGIES LTD.
(Registrant)
By: /s/ Ehud Ben-Yair
Ehud Ben-Yair
Chief Financial Officer
|