PR Newswire | Nov 17, 2021 07:31AM EST

11/17 06:30 CST

Eltek Reports 2021 Third Quarter Financial Results- Revenues of $8.0 million in the third quarter of 2021 compared to $9.3 million in the third quarter of 2020- Net loss of $26,000 in the third quarter of 2021 compared to net profit of $598,000 in the third quarter of 2020- EBITDA of $553,000 in the third quarter of 2021 compared to EBITDA of $1.0 million in the third quarter of 2020- Cash and cash equivalents as of September 30, 2021 were $8.9 million PETACH-TIKVA, Israel, Nov. 17, 2021

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 $1.4 million in new equipment during the first nine months of 2021. We continue to invest in new advanced manufacturing equipment that will strengthen our manufacturing capabilities and increase our competitiveness by implementing improved production processes and adoption of Industry 4.0 technologies," added Mr. Yaffe.

"Eltek has an improved balance sheet and cash flow, with a positive working capital of $12.5 million as of September 30, 2021 and operating cash flow of $3.4 million in the first nine months of 2021. We are making the necessary operational adjustments to expand our business, improve customer satisfaction, increase revenues and return to the trend of improved operational results," concluded Mr. Yaffe.

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: 1-888-723-3164Israel: 03-9180691International: +972-3-9180691

At:8:30 a.m. Eastern Time5:30 a.m. Pacific Time15:30 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 MualemChief Financial Officeralonm@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 December 30, 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 595 676debts

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 5,296 5,296shares, issued and outstanding 5,840,357

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 tonet

cash flows provided by operatingactivities:

Depreciation and amortization 445 391 1,331 1,177

Capital gain on disposal of fixed - (16) - (16)assets, net

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 17 (1) 41 (5)right-of-use assets

Decrease in trade receivables 1,015 949 2,560 1,098

Decrease (increase) in other 48 (1,077) 143 (890)receivables and prepaid expenses

Decrease (increase) in inventories (275) (50) (525) 198

Increase (decrease) in trade payables (464) 397 (875) 27

Increase (decrease) in other (300) (357) (579) 181liabilities and accrued expenses

Increase (decrease) in employee 5 (13) (5) 27severance benefits, net

46 (152) 760 636

Net cash provided by operating 598 873 3,443 3,750activities

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 - - - (571)loan

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 - (87) (285) (391)payables

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 (284) (756) 4,150 1,023cash equivalents

Cash and cash equivalents at beginning 9,169 3,407 4,735 1,628of the period

Cash and cash equivalents at period end 8,885 2,651 8,885 2,651

View original content: https://www.prnewswire.com/news-releases/eltek-reports-2021-third-quarter-financial-results-301426629.html

SOURCE Eltek Ltd.