SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
F O R M 6-K
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2023
TAT TECHNOLOGIES LTD.
(Name of Registrant)
5 Hamelacha St., Netanya 4250540, Israel
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ☐ No ☒
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ____________
6-K Items
1. |
Press Release dated March 29, 2023, re TAT Technologies Ltd. Reports Full Year 2022 Results.
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Press Release
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Source: TAT Technologies Limited
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TAT Technologies Reports Full Year 2022 Results
Netanya, Israel, March 29, 2023 - TAT Technologies Ltd. (NASDAQ: TATT - News) (“TAT” or the “Company”), a leading provider of products and services to the commercial and military aerospace and
ground defense industries, reported today its audited results for the twelve months ended December 31, 2022.
Key Financial Highlights:
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Total revenues for the twelve months ended December 31, 2022, were $84.6 million compared to $78 million for the twelve months ended December 31, 2021, an increase of 8.4%.
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Gross profit for the twelve months ended December 31, 2022, were $15.9 million (18.8% of revenues) compared to $11.3 million (14.5% of revenues) for the twelve months ended December 31,
2021, an increase of 41%.
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Adjusted EBITDA for the twelve months ended December 31, 2022, was $4 million compared to $3.3 million for the twelve months ended December 31, 2021, an increase of 21%.
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GAAP net loss from continued operations for the twelve months ended December 31, 2022, was $1.6 million (net profit of $0.1 million without a onetime impact of our restructuring plan)
compared to GAAP net loss from continued operations of $4 million (net loss of $2.2 million without a onetime impact of our restructuring plan for the twelve months ended December 31, 2021. A decrease of 60% in net loss.
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Net debt for December 31, 2022, was $19.4 million compared to net debt of $0.5 million for December 31, 2021. During the years 2021 and 2022, the Company made significant capital
investments related to large strategic agreements and the restructuring plan.
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During 2021 and 2022 the Company recorded a reduction of expenses due to ERC grants in the amount of $3.6 million and $1.2 million, respectively.
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During the years 2021 and 2022 the Company recorded restructuring expenses in the amount of $1.7 million for each of the years.
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Proforma results comparison, representing 2021 and 2022 without grants and restructuring cost:
Thousands USD
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YTD 22
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YTD 21
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YTD 20
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Revenues
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84,556
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77,973
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75,359
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COGS
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69,582
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69,550
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68,274
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Gross Profit
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14,974
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8,423
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7,085
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GM
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17.7 %
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10.8%
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9.4%
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R&D & SG&M
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16,236
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14,524
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12,831
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EBITDA
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2,832
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(461)
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(2,816)
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Mr. Igal Zamir, CEO and President of TAT Technologies stated that 2022 was a unique year for TAT and the aviation industry. Throughout the year, we suffered from the impact of COVID and the war in
Ukraine on our supply chain, resulting in lack of substantial parts, material availability and costs increases. We worked closely with our customer to assist them with the ramp up while overcoming the challenges. We completed the transition of the
heat exchange activity from Israel to the US and merged our two facilities in Israel into one new modern facility. In the second half of the year, we saw swift change and a large increase in orders both for the MRO and OEM. During the second half
of the year, we secured several strategic contracts with some of the leading companies in the industry which led to an increase in the expected value of our long term agreements by $130 million. As a result, we saw an increase in MRO revenues and
profitability and ended 2022 with expected total value of long-term commercial agreement and backlog of $400 million- almost double compared to 2021. We enter 2023 with very strong order backlog and expect to present improved results for the full
year. During 2023 we will benefit from our new line of business that includes MRO for APU331-500 and APU131-9A/B as well as MRO for the Gulfstream Landing gear platforms of G4 and G5.
Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in accordance with GAAP, the Company also presents a Non-GAAP presentation of Net Income and Adjusted EBITDA. The adjustments to the
Company’s GAAP results are made with the intent of providing both management and investors a more complete understanding of the Company’s underlying operational results, trends and performance. Non-GAAP Net Income excludes changes, income or
losses, as applicable, related to one or more of the following: (1) share-based compensation expenses and/or (2) certain tax impact and/or (3) acquisition related expenses and/or (4) share in results of equity investment of affiliated companies.
Adjusted EBITDA is calculated as net income before the Company's share in results and sale of equity investment of affiliated companies, share-based compensation, taxes on income, financial (expenses) income, net, depreciation and amortization,
inventory impairment from exit and dismissal activity and customers relationship write off. Non-GAAP Net Income and Adjusted EBITDA, however, should not be considered as alternatives to net income and operating income for the period and may not be
indicative of the historic operating results of the Company; nor they are meant to be predictive of potential future results. Non-GAAP Net Income and Adjusted EBITDA are not measures of financial performance under generally accepted accounting
principles and may not be comparable to other similarly titled measures for other companies. See reconciliation of GAAP Net Income to Non-GAAP Net Income and Adjusted EBITDA in page 11.
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 four segments: (i) Original equipment
manufacturing (“OEM”) of heat transfer solutions and aviation accessories through its Gedera facility; (ii) MRO services for heat transfer components and OEM of heat transfer solutions through its Limco subsidiary; (iii) MRO services for aviation
components through its Piedmont subsidiary; and (iv) Overhaul and coating of jet engine components through its Turbochrome subsidiary. TAT controlling shareholders is the FIMI Private Equity Fund.
TAT’s activities in the area of OEM of heat transfer solutions and aviation accessories primarily include the design, development and manufacture of (i) broad range of heat transfer solutions, such
as pre-coolers heat exchangers and oil/fuel hydraulic heat exchangers, used in mechanical and electronic systems on board commercial, military and business aircraft; (ii) environmental control and power electronics cooling systems installed on
board aircraft in and ground applications; and (iii) a variety of other mechanical aircraft accessories and systems such as pumps, valves, and turbine power units.
TAT’s activities in MRO Services for heat transfer components and OEM of heat transfer solutions primarily include the MRO of heat transfer components and to a lesser extent, the manufacturing of
certain heat transfer solutions. TAT’s Limco subsidiary operates an FAA-certified repair station, which provides heat transfer MRO services for airlines, air cargo carriers, maintenance service centers and the military.
TAT’s activities in MRO services for aviation components include the MRO of APUs, landing gears 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’s activities in the area of overhaul and coating of jet engine components includes the overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable
inlet guide vanes and afterburner flaps.
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ASSETS
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CURRENT ASSETS:
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Cash and cash equivalents
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$
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7,722
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$
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12,872
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Accounts receivable, net of allowance for credit losses of $527
and $389 thousand as of December 31, 2022 and December 31, 2021 respectively
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15,622
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13,887
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Other current assets and prepaid expenses
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6,047
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4,219
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Inventory, net
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45,759
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41,003
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Total current assets
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NON-CURRENT ASSETS:
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Restricted deposit
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304
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343
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Investment in affiliates
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1,665
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695
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Funds in respect of employee rights upon retirement
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780
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1,157
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Deferred income taxes
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1,229
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1,252
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Property, plant and equipment, net
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43,423
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30,462
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Operating lease right of use assets
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2,477
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3,114
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Intangible assets, net
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1,623
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1,829
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Total non-current assets
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Total assets
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