Eltek Reports 2021 Third Quarter Financial Results
Eltek Ltd. (NASDAQ: ELTK) reported its financial results for the third quarter of 2021, revealing revenues of $8.0 million, down from $9.3 million in Q3 2020. The company experienced a net loss of $26,000 compared to a net profit of $598,000 in the prior year. Gross profit also fell to $1.4 million (17.5% of revenues), down from $1.8 million (19.7%). Despite these challenges, Eltek noted an improved balance sheet with positive working capital of $12.5 million and operating cash flow of $3.4 million.
- Invested $1.4 million in new equipment for manufacturing capabilities.
- Improved balance sheet with positive working capital of $12.5 million.
- Operating cash flow of $3.4 million in the first nine months of 2021.
- Revenues decreased to $8.0 million in Q3 2021 from $9.3 million in Q3 2020.
- Net loss of $26,000 in Q3 2021 compared to a net profit of $598,000 in Q3 2020.
- EBITDA dropped to $553,000 in Q3 2021 from $1.0 million in Q3 2020.
PETACH-TIKVA, Israel, Nov. 17, 2021 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards, announced today its financial results for the quarter ended September 30, 2021.
Mr. Eli Yaffe, Chief Executive Officer, commented: "Our third quarter results reflect a reduction in working days during this quarter, compared to the number of working days in the third quarter of 2020. In addition, we incurred higher expenses due to the strength of the New Israeli Shekel ("NIS") compared to the US$ during the third quarter."
"We are conducting several R&D programs in order to keep our position as an innovative industry leader. In addition, we invested
"Eltek has an improved balance sheet and cash flow, with a positive working capital of
Highlights of the Third Quarter of 2021 compared to the Third Quarter of 2020
- Revenues for the third quarter of 2021 were
$8.0 million compared to revenues of$9.3 million in the third quarter of 2020; - Gross profit was
$1.4 million (17.5% of revenues) in the third quarter of 2021 compared to$1.8 million (19.7% of revenues) in the third quarter of 2020; - Operating profit was
$65,000 during the third quarter of 2021 as compared to operating profit of$638,000 in the third quarter of 2020; - Net loss was
$26,000 , or ($0.00) per share in the third quarter of 2021 as compared to net profit of$598,000 , or$0.14 per fully diluted share, in the third quarter of 2020; - EBITDA was
$553,000 in the third quarter of 2021 compared to EBITDA of$1.0 million in the third quarter of 2020; - Net cash provided by operating activities amounted to
$598,000 in the third quarter of 2021 compared to net cash provided by operating activities of$873,000 in the third quarter of 2020. - Cash and cash equivalents as of September 30, 2021 totaled
$8.9 million compared to$4.7 million as of December 31, 2020.
Highlights for the First Nine Months of 2021
- Revenues for the first nine months of 2021 were
$24.3 million compared to$27.2 million in the first nine months of 2020; - Gross profit was
$4.9 million (20.2% of revenues) compared to gross profit of$5.5 million (20.3% of revenues) in the first nine months of 2020; - Operating profit was
$1.1 million compared to operating profit of$2.1 million in the first nine months of 2020; - Net profit was
$1.0 million , or$0.17 per fully diluted share compared to net profit of$1.8 million , or$0.42 per fully diluted share in the first nine months of 2020; - EBITDA was
$2.5 million in the first nine months of 2021, compared to EBITDA of$3.2 million in the first nine months of 2020; - Net cash provided by operating activities amounted to
$3.4 million in the first nine months of 2021 compared to net cash provided by operating activities of$3.7 million in the first nine months of 2020.
Conference Call
Today, Wednesday, November 17, 2021, at 8:30 a.m. Eastern Time, Eltek will conduct a conference call to discuss the results. The call will feature remarks by Eli Yaffe, Chief Executive Officer and Alon Mualem, Chief Financial Officer.
To participate, please call the following teleconference numbers. Please allow for additional time to connect prior to the call:
United States: 1-888-723-3164
Israel: 03-9180691
International: +972-3-9180691
At:
8:30 a.m. Eastern Time
5:30 a.m. Pacific Time
15:30 p.m. Israel Time
A replay of the call will be available through the Investor Info section on Eltek's corporate website at http://www.nisteceltek.com approximately 24 hours after the conference call is completed and will be archived for 30 days.
About Eltek
Eltek – "Innovation Across the Board", is a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs), and is the Israeli leader in this industry. PCBs are the core circuitry of most electronic devices. Eltek specializes in the manufacture and supply of complex and high quality PCBs, HDI, multilayered and flex-rigid boards for the high-end market. Eltek is ITAR compliant and has AS-9100 and NADCAP Electronics certifications. Its customers include leading companies in the defense, aerospace and medical industries in Israel, the United States, Europe and Asia.
Eltek was founded in 1970. The Company's headquarters, R&D, production and marketing center are located in Israel. Eltek also operates through its subsidiary in North America and by agents and distributors in Europe, India, South Africa and South America.
For more information, visit Eltek's web site at www.nisteceltek.com.
Use of Non-GAAP Financial Information
The Company reports financial results in accordance with U.S. GAAP. To supplement the consolidated financial statements presented in accordance with GAAP, the Company presents the Non-GAAP presentation of EBITDA. This non-GAAP measure is not in accordance with, nor is it a substitute for, a GAAP measure. The Company uses EBITDA to evaluate and manage the Company's operations internally. The Company is also providing this information to assist investors in performing additional financial analysis. Reconciliation between the company's results on a GAAP and non-GAAP basis is provided in a table below.
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, the impact of the Coronavirus on the economy and our operations, 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.
Investor Contact:
Alon Mualem
Chief Financial Officer
alonm@nisteceltek.com
+972-3-9395023
Eltek Ltd. | ||||||||
Consolidated Statements of Operations | ||||||||
(In thousands US$, except per share data) | ||||||||
Three months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Revenues | 7,965 | 9,256 | 24,302 | 27,206 | ||||
Costs of revenues | (6,570) | (7,433) | (19,397) | (21,679) | ||||
Gross profit | 1,395 | 1,823 | 4,905 | 5,527 | ||||
Selling, general and administrative expenses | (1,285) | (1,183) | (3,706) | (3,467) | ||||
R&D expenses, net | (45) | (2) | (55) | - | ||||
Operating profit | 65 | 638 | 1,144 | 2,060 | ||||
Financial expenses, net | (121) | (19) | (101) | (158) | ||||
Other income (expenses), net | 44 | (10) | 41 | (10) | ||||
Profit before income tax | (12) | 609 | 1,084 | 1,892 | ||||
Tax expenses | (14) | (11) | (64) | (50) | ||||
Net Profit (loss) | (26) | 598 | 1,020 | 1,842 | ||||
Earnings per share | ||||||||
Basic and diluted net profit per ordinary share | (0.00) | 0.14 | 0.17 | 0.42 | ||||
Weighted average number of ordinary shares used to compute | ||||||||
basic net profit per ordinary share (in thousands) | 5,840 | 4,380 | 5,840 | 4,380 | ||||
Weighted average number of ordinary shares used to compute | ||||||||
diluted net profit per ordinary share (in thousands) | 5,840 | 4,380 | 5,871 | 4,380 | ||||
Eltek Ltd. | ||||||||
Consolidated Balance Sheets | ||||||||
(In thousands US$) | ||||||||
September 30, | December 31, | |||||||
2021 | 2020 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | 8,885 | 4,735 | ||||||
Receivables: Trade, net of provision for doubtful accounts | 6,441 | 9,062 | ||||||
Other | 901 | 700 | ||||||
Inventories | 4,216 | 3,704 | ||||||
Prepaid expenses | 269 | 619 | ||||||
Total current assets | 20,712 | 18,820 | ||||||
Long term assets | ||||||||
Restricted deposits | 218 | 62 | ||||||
Severance pay fund | 64 | 64 | ||||||
Operating lease right of use assets | 8,802 | 8,948 | ||||||
Total long term assets | 9,084 | 9,074 | ||||||
Fixed assets, less accumulated depreciation | 7,414 | 7,263 | ||||||
Total Assets | 37,210 | 35,157 | ||||||
Liabilities and Shareholder's equity | ||||||||
Current liabilities | ||||||||
Short-term credit and current maturities of long-term debts | 595 | 676 | ||||||
Accounts payable: Trade | 3,523 | 4,452 | ||||||
Other | 3,230 | 3,831 | ||||||
Short-term operating lease liabilities | 852 | 742 | ||||||
Total current liabilities | 8,200 | 9,701 | ||||||
Long-term liabilities | ||||||||
Long term debt, excluding current maturities | 3,965 | 1,495 | ||||||
Employee severance benefits | 332 | 338 | ||||||
Deferred tax liabilities | 107 | 84 | ||||||
Long-term operating lease liabilities | 8,057 | 8,272 | ||||||
Total long-term liabilities | 12,461 | 10,189 | ||||||
Equity | ||||||||
Ordinary shares, NIS 3.0 par value authorized 10,000,000 shares, issued and outstanding 5,840,357 | 5,296 | 5,296 | ||||||
Additional paid-in capital | 22,846 | 22,846 | ||||||
Cumulative foreign currency translation adjustments | 3,103 | 3,153 | ||||||
Capital reserve | 1,394 | 1,084 | ||||||
Accumulated deficit | (16,090) | (17,112) | ||||||
Shareholders' equity | 16,549 | 15,267 | ||||||
Total liabilities and shareholders' equity | 37,210 | 35,157 | ||||||
Eltek Ltd. | ||||||||
Unaudited Non-GAAP EBITDA Reconciliations | ||||||||
(In thousands US$) | ||||||||
Non-GAAP EBITDA Reconciliations | Three months ended | Nine months ended | ||||||
September 30, | September 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
GAAP net Income (loss) | (26) | 598 | 1,020 | 1,842 | ||||
Add back items: | ||||||||
Financial expenses, net | 121 | 19 | 101 | 158 | ||||
Income tax expense | 14 | 11 | 64 | 50 | ||||
Depreciation and amortization | 444 | 390 | 1,330 | 1,176 | ||||
Non-GAAP EBITDA | 553 | 1,018 | 2,515 | 3,226 | ||||
Eltek Ltd. | ||||||||
Consolidated Statement of Cash flow | ||||||||
(In thousands US$) | ||||||||
Three months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Cash flows from operating activities: | ||||||||
Net Income | (26) | 598 | 1,020 | 1,842 | ||||
Adjustments to reconcile net profit to net | ||||||||
cash flows provided by operating activities: | ||||||||
Depreciation and amortization | 445 | 391 | 1,331 | 1,177 | ||||
Capital gain on disposal of fixed assets, net | - | (16) | - | (16) | ||||
Stock-based compensation | 127 | 48 | 310 | 91 | ||||
Revaluation of long term loans | - | (2) | - | 2 | ||||
Increase in deferred tax liabilities | 6 | 6 | 22 | 18 | ||||
578 | 427 | 1,663 | 1,272 | |||||
Decrease (Increase) in operating lease right-of-use assets | 17 | (1) | 41 | (5) | ||||
Decrease in trade receivables | 1,015 | 949 | 2,560 | 1,098 | ||||
Decrease (increase) in other receivables and prepaid expenses | 48 | (1,077) | 143 | (890) | ||||
Decrease (increase) in inventories | (275) | (50) | (525) | 198 | ||||
Increase (decrease) in trade payables | (464) | 397 | (875) | 27 | ||||
Increase (decrease) in other liabilities and accrued expenses | (300) | (357) | (579) | 181 | ||||
Increase (decrease) in employee severance benefits, net | 5 | (13) | (5) | 27 | ||||
46 | (152) | 760 | 636 | |||||
Net cash provided by operating activities | 598 | 873 | 3,443 | 3,750 | ||||
Cash flows from investing activities: | ||||||||
Purchase of fixed assets | (824) | (348) | (1,362) | (802) | ||||
Restricted deposits | (2) | (1) | (156) | (58) | ||||
Net cash used in investing activities | (826) | (349) | (1,518) | (860) | ||||
Cash flows from financing activities: | ||||||||
Short- term bank credit, net | - | (1,163) | (377) | (1,928) | ||||
Repayment of short- term shareholder loan | - | - | - | (571) | ||||
Repayment of long-term loans from bank | (111) | (37) | (188) | (145) | ||||
Proceeds from long-term loans | - | - | 3,062 | 1,141 | ||||
Repayment of credit from fixed asset payables | - | (87) | (285) | (391) | ||||
Net cash used in financing activities | (111) | (1,287) | 2,212 | (1,894) | ||||
Effect of translation adjustments | 55 | 7 | 13 | 27 | ||||
Net increase (decrease) in cash and cash equivalents | (284) | (756) | 4,150 | 1,023 | ||||
Cash and cash equivalents at beginning of the period | 9,169 | 3,407 | 4,735 | 1,628 | ||||
Cash and cash equivalents at period end | 8,885 | 2,651 | 8,885 | 2,651 | ||||
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SOURCE Eltek Ltd.
FAQ
What were Eltek's revenues for Q3 2021?
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What equipment investments did Eltek make in 2021?
