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TAT Technologies Reports Second Quarter 2014 Results

GEDERA, Israel, Aug. 7, 2014 /PRNewswire/ -- TAT Technologies Ltd. (NASDAQ: TATT) ("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.

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
[email protected]

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.

 

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





 

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

(45)


-


(45)


-


-

     company











Income from continuing operations before taxes

632


1,411


997


3,107


5,267

     on income











Taxes on income 

398


453


495


936


1,041











Net income from continuing operations after taxes

234


958


502


2,171


4,226

     on income

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.

$311


$1,019


$721


$2,727


$2,822

     shareholders 











Basic and diluted income (loss) per share 










Net income from continuing operations per share

$0.04


$0.13


$0.08


$0.37


$0.60

     attributable to controlling interest

Loss from discontinued operations per share

-


(0.01)


-


(0.06)


(0.28)

     attributable to controlling interest


$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

 

 

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


112


971


532


342


1,243

     provided by operating activities:












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


(989)


(706)


3,105


1,006


70

     activities












Cash flows used in financing activities


(2,883)


(2,608)


(2,909)


(2,313)


(2,936)












Cash flows provided by (used in) discontinued


-


-23


-


967


514

     operations












Net increase (decrease) in cash and cash


-2,900


2,083


2,444


4,606


4,851

     equivalents 












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


$22,258


$19,133


$22,258


$19,133


$19,814

     operations at end of period

SOURCE TAT Technologies Ltd.

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