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Eltek Ltd

Eltek Ltd. Reports 2024 Third Quarter Financial Results

PETACH TIKVA, Israel, Nov. 19, 2024 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs), today announced its financial results for the quarter ended September 30, 2024.

Eltek Ltd.

Third Quarter 202 4 Highlights

  • Revenues were $13.5 million, up 14 % over Q3 2023
  • Operating profit was $1.9 million
  • Profit before tax was $2.0 million
  • Net income was $1.7 million or $0.25 per fully diluted share
  • As of September 30, 2024, cash and cash equivalents amounted $18.1 million

"In the third quarter of 2024, we delivered strong financial results. We generated a record of $13.5 million in sales, bringing our revenues to $35.8 million for the first three quarters of 2024 and twelve-month trailing revenues (TTM) of $48 million. Our gross profit for the quarter totaled $3.5 million, with a net profit of $1.7 million. The gross margin for the third quarter reached 26%, reflecting the alignment of our product mix with market demand and the adjustment of production workers' wages to the current state of the local employment market. We continue to see robust demand across our two main customer segments: defense and aerospace, and medical devices. As of the end of the quarter, our cash and cash equivalents stood at $18.1 million, providing significant financial support for our growth strategy," said Eli Yaffe, CEO of Eltek.

"Throughout the quarter, we also advanced our accelerated investment plan. By year-end 2024, we plan to open a new 15,000 sq. ft. manufacturing space in our facility, which will include a state-of-the-art full Solder Mask Application line," Mr. Yaffe added.

"In response to continued demand for our products and our strong profitability, Eltek's Board of Directors has adopted a dividend policy, effective from 2024 year-end onwards. The policy will allow for an annual distribution of up to 25% of our net income, as determined under US GAAP," concluded Mr. Yaffe.

Third Quarter 2024 GAAP Financial Results

Revenues for the third quarter of 2024 were $13.5 million, compared to $11.9 million in the third quarter of 2023, a 14% increase;

Gross profit for the third quarter of 2024 was $3.5 million (26% of revenues) compared to $3.7 million (31% of revenues) in the third quarter of 2023. Gross margin in the third quarter of 2023 was exceptional due to sales orders which included an exceptional low material components;

Operating profit for the third quarter of 2024 was $1.9 million compared to operating profit of $2.3 million in the third quarter of 2023;

Income before income tax for the third quarter of 2024 was $2.0 million compared to $2.6 million in the third quarter of 2023;

Net income for the third quarter of 2024 was $1.7 million or $0.25 per fully diluted share compared to net income of $2.1 million or $0.36 per fully diluted share in the third quarter of 2023.

Third Quarter 2024 Non-GAAP Financial Results

EBITDA for the third quarter of 2024 was $2.3 million (17% of revenues) compared to EBITDA of $2.6 million (22% of revenues) in the third quarter of 2023.

First Nine Months 2024 GAAP Financial Results

Revenues for the first nine months of 2024 were $35.8 million compared to $34.4 million in the first nine months of 2023;

Gross profit for the first nine months of 2024 was $8.4 million (23% of revenues) compared to $9.6 million (28% of revenues) in the first nine months of 2023;

Operating profit for the first nine months of 2024 was $4.0 million compared to operating profit of $5.3 million in the first nine months of 2023;

Financial income for the first nine months of 2024 was $1.0 million compared to financial income of $0.8 million in the first nine months of 2023.

Income before income tax for the first nine months of 2024 was $5.0 million compared to $6.0 million in the first nine months of 2023;

Net profit for the first nine months of 2024 was $4.2 million or $0.63 per fully diluted share compared to net profit of $5.0 million or $0.85 per fully diluted share in the first nine months of 2023.

First Nine Months 2024 Non-GAAP Financial Results

EBITDA for the first nine months of 2024 was a $5.2 million (14% of revenues) compared to EBITDA of $6.2 million (18% of revenues) in the first nine months of 2023.

About our Non-GAAP Financial Information

The Company reports financial results in accordance with U.S. GAAP and herein provides some non-GAAP measures, including EBITDA. These non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. These non-GAAP measures are intended to supplement the Company's presentation of its financial results that are prepared in accordance with GAAP. The Company uses the non-GAAP measures presented 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 the table below.

Conference Call

Today, Tuesday, November 19, 2024, at 9:00am Eastern Time (16:00pmIsrael Time, 6:00am Pacific Time), Eltek will conduct a conference call to discuss the results. The call will feature remarks by Eli Yaffe, Chief Executive Officer and Ron Freund, Chief Financial Officer.

To participate, please call the following teleconference numbers. Please allow for additional time to connect prior to the call:

United States: 1-866-860-9642
Israel:              03-918-0691
International: +972-3-918-0691

To Access a Replay of the Call

A replay of the call will be available for 30 days on the Investor Info section on Eltek's corporate website at http://www.nisteceltek.com approximately 24 hours after the conference call is completed.

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 an Israeli leading company 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 

Forward Looking Statement

Some of the statements included in this press release may be forward-looking statements that involve a number of risks and uncertainties including, but not limited to expected results in future quarters, the impact of Israel's continuing war against Hamas and Hezbollah, 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. Any forward-looking statements set forth in this press release speak only as of the date of this press release. The information found on our website is not incorporated by reference into this press release and is included for reference purposes only.

Investor Contact
 Ron Freund
Chief Financial Officer
Investor-Contact@nisteceltek.com
+972-3-939-5023

 

 

Eltek Ltd.

Consolidated Statements of Income

U.S dollars in thousands (except per share data)




































Three months ended


Nine months ended





September 30,


September 30,





2024


2023


2024


2023























Revenues


13,520


11,861


35,769


34,374



Costs of revenues


(10,003)


(8,182)


(27,364)


(24,728)














Gross profit


3,517


3,679


8,405


9,646














Research and development expenses, net


(17)


(12)


(79)


(36)



Selling, general and administrative expenses


(1,592)


(1,357)


(4,292)


(4,317)














Operating profit


1,908


2,310


4,034


5,293














Financial income, net


137


279


976


756














Income before income tax 


2,045


2,589


5,010


6,049














Income tax expenses


333


442


808


1,027














Net income 


1,712


2,147


4,202


5,022

























Earnings per share:











Basic net profit per ordinary share


0.26


0.36


0.64


0.85














Diluted net profit per ordinary share


0.25


0.36


0.63


0.85














Weighted average number of ordinary shares used to compute











basic net profit per ordinary share (in thousands)


6,710


5,914


6,597


5,890














Weighted average number of ordinary shares used to compute











diluted net profit per ordinary share (in thousands)


6,768


5,987


6,675


5,927














 

 

Eltek Ltd.

Consolidated Balance Sheets

U.S dollars in thousands 

























September 30,


December 31,









2024


2023
















Assets






















Current assets:











Cash and cash equivalents


8,548


9,278







Short-term bank deposits


9,530


2,862







Receivables:   Trade, net of provision for doubtful accounts


12,800


10,898







                       Other


83


689







Inventories 


6,775


6,135







Prepaid expenses 


225


245


















Total current assets


37,961


30,107


















Long term assets:











Severance pay fund


56


57







Deferred tax asset, net


663


1,098







Operating lease right of use assets


5,933


6,555







Total long term assets


6,652


7,710


















Fixed assets, less accumulated depreciation


14,166


9,354


















Total Assets


58,779


47,171


















Liabilities and Shareholder's equity






















Current liabilities:











Accounts payable: Trade


6,166


7,503







                              Other


5,812


5,689







Short-term operating lease liabilities


799


789


















Total current liabilities


12,777


13,981


















Long-term liabilities:











Employee severance benefits


436


447







Long-term operating lease liabilities


5,240


5,871


















Total long-term liabilities


5,676


6,318


















Shareholders' equity:











Ordinary shares of NIS 3.0 par value – Authorized: 10,000,000 shares
at September 30, 2024 and December 31, 2023; Issued and
outstanding: 6,712,040 shares at September 30, 2024 and 6,020,693
shares at December 31, 2023


6,009


5,443







Additional paid-in capital


32,611


23,587







Cumulative foreign currency translation adjustments


(1)


783







Capital reserve


2,346


1,900







Accumulated deficit


(639)


(4,841)







Total shareholders' equity


40,326


26,872







Total liabilities and shareholders' equity


58,779


47,171








































 

 

Eltek Ltd.

Unaudited Non-GAAP EBITDA Reconciliations

U.S dollars in thousands 

























Three months ended


Nine months ended




September 30,


September 30,




2024


2023


2024


2023




















GAAP net income 


1,712


2,147


4,202


5,022


Add back items:




















Financial income, net 


(137)


(279)


(976)


(756)


Income tax expenses 


333


442


808


1,027


Depreciation and amortization


388


299


1,141


929


Non-GAAP EBITDA


2,296


2,609


5,175


6,222
































 

 

Eltek Ltd.

Consolidated Statement of Cash flow

U.S dollars in thousands  














Three months ended


Nine months ended





September 30,


September 30,





2024


2023


2024


2023














Cash flows from operating activities:






















Net Income


1,712


2,147


4,202


5,022



Adjustments to reconcile net income to net cash flows











provided by operating activities:











Depreciation and amortization


388


299


1,141


929



Accrued interest


115


-


(71)


-



Stock-based compensation


160


72


446


216



Decrease in deferred tax assets and long term tax receivable


313


432


404


998





976


803


1,920


2,143














Decrease (increase) in operating lease right-of-use assets


1


-


4


(22)



Decrease (increase) in trade receivables


(2,735)


985


(2,218)


(799)



Decrease (increase) in other receivables and prepaid expenses


292


87


601


(224)



Decrease (increase) in inventories


(256)


(47)


(821)


(856)



Increase (decrease) in trade payables


1,087


(74)


551


31



Increase (decrease) in other liabilities and accrued expenses


538


(263)


289


1,214



Increase (decrease)  in employee severance benefits, net


32


11


2


33





(1,041)


699


(1,592)


(623)














Net cash provided by operating activities


1,647


3,649


4,530


6,542














 

Cash flows from investing activities:

 









Purchase of property and equipment


(1,967)


(475)


(7,914)


(1,186)



Insurance Proceeds


-


-


-


2,000



Investment in short-term bank deposits, net


(134)


-


(6,668)


-



Restricted deposits


-


-


-


192



 
Net cash provided by (used in) investing activities


(2,101)


(475)


(14,582)


1,006














 

Cash flows from financing activities:

 









Exercise of options


17


29


278


328



Repayment of long-term loans from bank


-


-


-


(3,348)



Issuance of shares, net


-


-


9,312


-



 

Net cash provided by (used in) financing activities

 

17


29


9,590


(3,020)














Effect of translation adjustments


108


(228)


(268)


(589)














Net increase (decrease) in cash and cash equivalents


(329)


2,975


(730)


3,939














Cash and cash equivalents at the beginning of the period


8,877


8,330


9,278


7,366

























 

Cash and cash equivalents at the end of the period 

8,548


11,305


8,548


11,305



 

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SOURCE Eltek Ltd.