Eltek Ltd. Reports Full year and Fourth Quarter 2023 Financial Results
PETACH TIKVA, Israel,
Full Year and Fourth Quarter 2023 Highlights
-
Revenues: Full-year revenue soared to a record
$46.7 million in 2023, representing 18% year-over-year growth. This remarkable growth is attributed to our increased production capacity and to our continued commitment to delivering high-quality PCB solutions to our valued customers. -
Profitability: Net income reached
$6.4 million in 2023, reflecting almost two times 2022 net income. EBITDA reached$8.6 million , a 91% increase compared to$4.5 million in 2022. This substantial growth underscores the efficiency of our operations, strategic initiatives, and the unwavering trust our customers place inEltek . -
Earnings per Share (EPS): Diluted EPS jumped to
$1.07 in 2023, an increase of 93% compared to 2022. This accomplishment reflects the dedication of our team and the effectiveness of our business strategies. -
Q4 Highlights: Revenue climbed to
$12.3 million in Q4, marking an 18% increase from the same period last year. Net income for the quarter reached$1.3 million and EBITDA for the quarter reached$2.4 million .
Driving Growth and Innovation :
- Innovation: Our relentless pursuit of innovation has allowed us to stay at the forefront of technological advancements, meeting the evolving needs of the defense, aerospace, and medical industries.
- Customer Focus: Building strong, long-lasting relationships with our customers has been a cornerstone of our success. We understand the unique challenges faced by the defense, aerospace and medical sectors, and our tailored solutions have contributed to our customers' success.
- Operational Efficiency: Eltek continues to invest in state-of-the-art manufacturing processes and quality control measures, ensuring the production of reliable and high-performance PCBs.
Market Trends and Outlook :
The PCB industry is experiencing dynamic shifts, driven by advancements in technology and evolving market demands. As
- Increasing Demand for
Advanced Electronics : The defense and aerospace industries are witnessing a growing need for sophisticated electronic components, driving the demand for high-performance PCBs. Eltek's focus on innovation aligns perfectly with this trend. - Emphasis on Reliability and Quality: With critical applications in defense, aerospace and medical devices, reliability and quality are non-negotiable. Eltek has consistently delivered PCB solutions that meet the stringent standards of these industries, reinforcing our position as a trusted partner.
- Global Supply Chain Challenges: The industry has faced challenges related to the global supply chain. Eltek has proactively managed these challenges through strategic partnerships and diversified sourcing, ensuring minimal impact on our operations.
Management Statement :
Our decision at the start of 2022 to allocate
2023 Full Year GAAP Financial Results
Revenues for 2023 were
Gross profit for 2023 was
Operating profit for 2023 was
Financial income for 2023 was
Net profit for 2023 was
2023 Full Year Non-GAAP Financial Results
EBITDA for 2023 was a
Fourth Quarter 2023 GAAP Financial Results
Revenues for the fourth quarter of 2023 were
Gross profit for the fourth quarter of 2023 was
Operating profit for the fourth quarter of 2023 was
Financial expenses for the fourth quarter of 2023 were
Net profit for the fourth quarter of 2023 was
Fourth Quarter 2023 Non-GAAP Financial Results
EBITDA for the fourth quarter of 2023 was a
Conference Call
Today,
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
About
For more information, visit
Forward Looking Statements
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 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
About our Non-GAAP Financial Information
The Company reports financial results in accordance with
Investor Contact
Chief Financial Officer
Investor-Contact@nisteceltek.com
+972-3-939-5023
(Tables follow)
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Consolidated Statements of Income |
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(In thousands US$, except per share data) |
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Three months ended |
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Twelve months ended |
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2023 |
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2022 |
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2023 |
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2022 |
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Revenues |
|
12,321 |
|
10,479 |
|
46,695 |
|
39,650 |
|
|
Costs of revenues |
|
(8,865) |
|
(8,267) |
|
(33,593) |
|
(31,380) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
3,456 |
|
2,212 |
|
13,102 |
|
8,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
(1,405) |
|
(1,348) |
|
(5,722) |
|
(5,207) |
|
|
Research and development expenses, net |
|
(49) |
|
(15) |
|
(85) |
|
(92) |
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Operating profit |
|
2,002 |
|
849 |
|
7,295 |
|
2,971 |
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Financial income (expenses), net |
|
(334) |
|
100 |
|
422 |
|
887 |
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|
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|
|
|
|
|
|
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Profit before income tax |
|
1,668 |
|
949 |
|
7,717 |
|
3,858 |
|
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|
|
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|
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|
|
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Tax expenses |
|
337 |
|
144 |
|
1,364 |
|
664 |
|
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|
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Net Profit |
|
1,331 |
|
805 |
|
6,353 |
|
3,194 |
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Earnings per share: |
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Basic net profit per ordinary share |
|
0.22 |
|
0.14 |
|
1.08 |
|
0.55 |
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Diluted net profit per ordinary share |
|
0.22 |
|
0.14 |
|
1.07 |
|
0.55 |
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Weighted average number of ordinary shares used to compute |
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basic net profit per ordinary share (in thousands) |
|
5,977 |
|
5,850 |
|
5,902 |
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5,848 |
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Weighted average number of ordinary shares used to compute |
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diluted net profit per ordinary share (in thousands) |
|
6,074 |
|
5,850 |
|
5,956 |
|
5,848 |
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Consolidated Balance Sheets |
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(In thousands US$) |
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2023 |
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2022 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
|
9,278 |
|
7,366 |
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Short-term bank deposits |
|
2,862 |
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- |
|
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|
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Receivables: Trade, net of provision for doubtful accounts |
|
10,898 |
|
10,116 |
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Other |
|
689 |
|
282 |
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Inventories |
|
6,135 |
|
5,130 |
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Prepaid expenses |
|
245 |
|
504 |
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Total current assets |
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30,107 |
|
23,398 |
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Long term assets: |
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Restricted deposits |
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- |
|
202 |
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Severance pay fund |
|
57 |
|
59 |
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Deferred tax assets and long term tax receivables, net |
|
1,098 |
|
2,496 |
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Operating lease right of use assets |
|
6,555 |
|
7,156 |
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Total long term assets |
|
7,710 |
|
9,913 |
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Fixed assets, less accumulated depreciation |
|
9,354 |
|
7,674 |
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Total Assets |
|
47,171 |
|
40,985 |
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Liabilities and Shareholder's equity |
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Current liabilities: |
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Short-term credit and current maturities of long-term debts |
|
- |
|
702 |
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Accounts payable: Trade |
|
7,503 |
|
4,793 |
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Other |
|
5,689 |
|
4,133 |
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Short-term operating lease liabilities |
|
789 |
|
846 |
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Total current liabilities |
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13,981 |
|
10,474 |
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Long-term liabilities: |
|
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Long term debt, excluding current maturities |
|
- |
|
2,768 |
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Employee severance benefits |
|
447 |
|
280 |
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Long-term operating lease liabilities |
|
5,871 |
|
6,443 |
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Total long-term liabilities |
|
6,318 |
|
9,491 |
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Shareholders' equity: |
|
|
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Ordinary shares, |
|
5,443 |
|
5,305 |
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Additional paid-in capital |
|
23,587 |
|
22,862 |
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|
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Cumulative foreign currency translation adjustments |
|
783 |
|
1,189 |
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Capital reserve |
|
1,900 |
|
1,537 |
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Accumulated deficit |
|
(4,841) |
|
(9,873) |
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Total shareholders' equity |
|
26,872 |
|
21,020 |
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Total liabilities and shareholders' equity |
|
47,171 |
|
40,985 |
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|||||||||
Unaudited Non-GAAP EBITDA Reconciliation |
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(In thousands US$) |
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Three months ended |
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Twelve months ended |
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||||
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|
2023 |
|
2022 |
|
2023 |
|
2022 |
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||
|
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|
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GAAP Net Income |
|
1,331 |
|
805 |
|
6,353 |
|
3,194 |
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Add back items: |
|
|
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|
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|
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|
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|
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Financial expenses (income), net |
|
334 |
|
(100) |
|
(422) |
|
(887) |
|
Income tax expenses |
|
337 |
|
144 |
|
1,364 |
|
664 |
|
Depreciation and amortization |
|
388 |
|
357 |
|
1,317 |
|
1,541 |
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Non-GAAP EBITDA |
|
2,390 |
|
1,206 |
|
8,612 |
|
4,512 |
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Consolidated Statements of Cash Flows |
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(In thousands US$) |
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|
Three months ended |
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Twelve months ended |
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|
2023 |
|
2022 |
|
2023 |
|
2022 |
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Cash flows from operating activities: |
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net Income |
|
1,331 |
|
805 |
|
6,353 |
|
3,194 |
|
|
Adjustments to reconcile net income to net cash flows |
|
|
|
|
|
|
|
|
|
|
provided by operating activities: |
|
|
|
|
|
|
|
|
|
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Depreciation and amortization |
|
388 |
|
357 |
|
1,317 |
|
1,541 |
|
|
Stock-based compensation |
|
147 |
|
62 |
|
363 |
|
250 |
|
|
Decrease in deferred tax assets and long term tax receivable |
|
304 |
|
151 |
|
1,302 |
|
653 |
|
|
|
|
839 |
|
570 |
|
2,982 |
|
2,444 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease (increase) in operating lease right-of-use assets |
|
(1) |
|
3 |
|
(23) |
|
11 |
|
|
Decrease (increase) in trade receivables |
|
(211) |
|
(446) |
|
(1,010) |
|
(3,941) |
|
|
Decrease (increase) in other receivables and prepaid expenses |
|
55 |
|
42 |
|
(169) |
|
437 |
|
|
Decrease (increase) in inventories |
|
(283) |
|
(463) |
|
(1,139) |
|
(806) |
|
|
Increase (decrease) in trade payables |
|
958 |
|
380 |
|
989 |
|
1,543 |
|
|
Increase (decrease) in other liabilities and accrued expenses |
|
(507) |
|
402 |
|
707 |
|
972 |
|
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Increase (decrease) in employee severance benefits, net |
|
139 |
|
(36) |
|
172 |
|
(25) |
|
|
|
|
150 |
|
(118) |
|
(473) |
|
(1,809) |
|
|
|
|
|
|
|
|
|
|
|
|
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Net cash provided by operating activities |
|
2,320 |
|
1,257 |
|
8,862 |
|
3,829 |
|
|
|
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|
|
|
|
|
|
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|
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|
|
|
|
|
|
|
|
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Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
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Purchase of fixed assets |
|
(1,246) |
|
(571) |
|
(2,432) |
|
(3,027) |
|
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Repayment from insurance |
|
- |
|
- |
|
2,000 |
|
- |
|
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Investment in short-term bank deposits |
|
(2,719) |
|
- |
|
(2,719) |
|
- |
|
|
Restricted deposits |
|
- |
|
- |
|
192 |
|
(2) |
|
|
Net cash used in investing activities |
|
(3,965) |
|
(571) |
|
(2,959) |
|
(3,029) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
Exercise of options |
|
535 |
|
- |
|
863 |
|
25 |
|
|
Dividend distribution |
|
(1,321) |
|
(994) |
|
(1,321) |
|
(994) |
|
|
Repayment of long-term loans from bank |
|
- |
|
(227) |
|
(3,348) |
|
(669) |
|
|
Net cash used in financing activities |
|
(786) |
|
(1,221) |
|
(3,806) |
|
(1,638) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of translation adjustments |
|
404 |
|
54 |
|
(185) |
|
(1,079) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
|
(2,027) |
|
(481) |
|
1,912 |
|
(1,917) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the beginning of the period |
|
11,305 |
|
7,847 |
|
7,366 |
|
9,283 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the end of the period |
|
9,278 |
|
7,366 |
|
9,278 |
|
7,366 |
|
|
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