Eltek Reports Record Revenues for First Quarter 2013

Eltek Reports Record Revenues for First Quarter 2013

  • $12.5 Million in Revenues
  • Net Income of $127,000

PETACH-TIKVA, Israel--(BUSINESS WIRE)-- Eltek Ltd. (NASDAQ:ELTK), the leading Israeli manufacturer of advanced flex-rigid circuitry solutions, announced today its results for the first quarter of 2013.

Revenues for the quarter ended March 31, 2013 were $12.5 million, compared to revenues of $12.0 million in the first quarter of 2012.


Gross Profit for the first quarter of 2013 was $1.8 million (14% of revenues), compared to gross profit of $2.3 million (19% of revenues) in the first quarter of 2012. Gross profit decreased mainly due to increases in the cost of labor and raw materials.

Operating Profit for the first quarter of 2013 was $230,000 compared to the operating profit of $716,000 in the first quarter of 2012.

Net Profit for first quarter of 2013 was $127,000 or $0.02 per fully diluted share, compared to net profit of $526,000 or $0.08 per fully diluted share in the first quarter of 2012.

EBITDA:

In the quarter ended March 31, 2013, Eltek had EBITDA of $613,000 compared to EBITDA of $1.2 million in the first quarter of 2012.

ELTEK uses EBITDA as a non-GAAP financial performance measurement. EBITDA is calculated by adding back to net income interest, taxes, depreciation and amortization. EBITDA is provided to investors to complement results provided in accordance with GAAP, as management believes the measure helps illustrate underlying operating trends in the Company's business and uses the measure to establish internal budgets and goals, manage the business and evaluate performance. EBITDA should not be considered in isolation or as a substitute for comparable measures calculated and presented in accordance with GAAP. Reconciliation between the company's results on a GAAP and non-GAAP basis is provided in a table immediately following the Consolidated Statement of Operations.

Management Comments:

Arieh Reichart, President and Chief Executive Officer of Eltek, commented: "I am pleased to report that our customers continue to see the value proposition of our products and have a great deal of trust in our company. Specifically, in our own backyard, we have seen greater interest from our local customers, reflecting the continued market recognition of our high quality and reliable products."

"In addition, despite the increase in the cost of raw materials and labor, we were able to achieve a growth in revenues, with $12.5 million in revenues for the first quarter of 2013, while maintaining Eltek's ability to stay profitable despite external market-changing elements," Mr. Reichart concluded.

Amnon Shemer, Chief Financial Officer of Eltek, added: "Although we have been profitable for the last two years, our main challenge continues to be obtaining additional financing, including lines of credit for working capital and investment in fixed assets that are required for the expansion of our production capacity and to replace or refurbish old equipment."

About Eltek

Eltek is Israel's leading manufacturer of printed circuit boards, the core circuitry of most electronic devices. It specializes in the complex high-end of PCB manufacturing, i.e., HDI, multilayered and flex-rigid boards. Eltek's technologically advanced circuitry solutions are used in today's increasingly sophisticated and compact electronic products. For more information, visit Eltek's web site at www.eltekglobal.com.

Forward Looking Statement:

Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties including, but not limited to statements regarding expected results in future quarters, 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.

Eltek Ltd.
Consolidated Statements of Operations
(In thousands US$, except per share data)
 
    Three months ended
March 31,
2013  2012
Unaudited
 
Revenues12,45211,978
Costs of revenues(10,664)(9,657)
 
Gross profit1,7882,321
 
Selling, general and administrative expenses(1,558)(1,605)
  
Operating profit230716
 
Financial income (expenses), net(100)(168)
 
Profit before other income, net130548
 
Other income, net(3)0 
 
Profit before income tax expenses127548
 
Income tax (expenses), net(9)(5)
 
Net profit118544
 
Net profit (loss) attributable to non controlling interest(9)(18)
 
Net profit attributable to controlling interest / Eltek127 526 
 
Earnings per share
 
Basic and diluted net gain per ordinary share0.02 0.08 
 

Weighted average number of ordinary shares used to compute basic and diluted net gain per ordinary share (in thousands)

6,610 6,610 
 
 
Eltek Ltd.
Consolidated Balance Sheets
(In thousands US$)
 
    March 31,
2013  2012
Unaudited
Assets
 
Current assets
Cash and cash equivalents1,2171,414
Receivables:
Trade, net of provision for doubtful accounts9,1878,565
Other126269
Inventories5,1255,005
Prepaid expenses311 350 
 
Total current assets15,966 15,603 
 
Assets held for employees' severance benefits49 41 
 
Fixed assets, less accumulated depreciation9,595 8,214 
 
Goodwill71 521 
 
Total assets25,681 24,379 
 
 

Liabilities and Shareholders' equity

 
Current liabilities
Short-term credit and current maturities of long-term debts5,4524,584
Accounts payable:
Trade6,9997,214
Related parties1,5391,190
Other4,768 4,118 
 
Total current liabilities18,758 17,106 
 
Long-term liabilities
Long term debt, excluding current maturities9691,642
Employee severance benefits203 164 
 
Total long-term liabilities1,172 1,806 
 
Equity
Ordinary shares, NIS 0.6 par value authorized 50,000,000 shares, issued and outstanding 6,610,107.1,3841,384
Additional paid-in capital14,32814,295
Cumulative foreign currency translation adjustments2,8162,829
Capital reserve695695
Accumulated deficit(13,583)(13,872)
Shareholders' equity5,6405,331
Non controlling interest112 136 
Total equity5,752 5,467 
Total liabilities and shareholders' equity25,681 24,379 
 
 
Eltek Ltd.
Unaudited Non-GAAP EBITDA Reconciliations
(In thousands US$, except per share data)
 
Non-GAAP EBITDA Reconciliations    Three months ended
March 31,
2013  2012
Unaudited
 
GAAP net Income127526

Add back items:

 
Financial expenses, net100168
Income tax expense95
Depreciation377476
Adjusted EBITDA6131,174



Eltek Ltd.
Amnon Shemer
Chief Financial Officer
+972-3-9395050

KEYWORDS:   United States  North America  New York  Middle East  Israel

INDUSTRY KEYWORDS:

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