EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1
Exhibit 99.1

 
Press Release
 
Eltek Ltd. Reports Full year and Fourth Quarter 2022 Financial Results
 
Petach Tikva, Israel (March 9, 2023) 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 full year and fourth quarter ended December 31, 2022.
 
Full Year and Fourth Quarter 2022 Highlights
 

 ◾
Revenues were $39.6 million (Q4 - $10.5 million)
 

 ◾
Operating profit was $3.0 million (Q4 - $0.8 million)
 

 ◾
Profit before tax was $3.9 million (Q4 - $0.9 million)
 

 ◾
Net profit was $3.2 million or $0.55 per fully diluted share (Q4 - $0.8 million or $0.14 per fully diluted share)
 

 ◾
Net cash provided by operating activities amounted to $3.8 million (Q4 - $1.3 million)
 
“We are pleased to announce strong growth in revenues and earnings for the year 2022. This was due to increased demand for our high-quality printed circuit boards. The growth in revenues is a testament to the hard work and dedication of our team, as well as the loyalty of our customers. We are excited to continue building upon this momentum in the coming year,” said Eli Yaffe, CEO of Eltek.

"The global PCB market is expected to continue to grow in the coming years, with the military, aerospace and defense sectors being the key drivers. As a leading provider of PCBs to these industries, Eltek is well-positioned to capitalize on this trend and continues to deliver strong results for our shareholders. We ended 2022 with a 70% growth in backlog.
 
During Q4 we received final approval from the Israel Innovation Authority (“IIA”) for a 40%, royalty bearing participation in an approximately $800,000 one-year development program, which started in January 2023.  This program is part of our investments in CapEx and research and development to bring new, high-quality products to the market and further drive growth in the future," continued Mr. Yaffe.
 
“We have a strong balance sheet and a talented team, and we will continue to invest in our operations, products and people to sustain our long-term success," concluded Mr. Yaffe.
 

2022 Full Year GAAP Financial Results
 
Revenues for 2022 were $39.7 million compared to $33.8 million in 2021.
 
Gross profit for 2022 was $8.3 million (21% of revenues) compared to $6.9 million (20% of revenues) in 2021.
 
Operating profit for 2022 was $3.0 million compared to operating profit of $1.9 million in 2021.
 
Financial income for 2022 was $0.9 million compared to financial expense of $0.5 million in 2021. Financial income, which was primarily generated in the second quarter of 2022, resulted from the erosion of the NIS against the US dollar.
 
Profit before income tax for 2022 was $3.9 million compared to $1.5 million in 2021.
 
Net profit for 2022 was $3.2 million or $0.55 per fully diluted share compared to net profit of $5.0 million or $0.86 per fully diluted share in 2021. Net profit in 2021 includes a one-time tax benefit of $3.5 million.
 
2022 Full Year Non-GAAP Financial Results
 
EBITDA for 2022 was a $4.5 million (11% of revenues) compared to EBITDA of $3.8 million (11% of revenues) in 2021.
 
Fourth Quarter 2022 GAAP Financial Results
 
Revenues for the fourth quarter of 2022 were $10.5 million compared to $9.5 million in the fourth quarter of 2021.
 
Gross profit for the fourth quarter of 2022 was $2.2 million (21% of revenues) compared to $2.0 (21% of revenues) in the fourth quarter of 2021.
 
Operating profit for the fourth quarter of 2022 was $0.8 million compared to operating profit of $0.6 million in the fourth quarter of 2021.
 
Profit before income tax for the fourth quarter of 2022 was $0.9 million compared to $0.2 million in the fourth quarter of 2021.
 
Net profit for the fourth quarter of 2022 was $0.8 million or $0.14 per fully diluted share compared to net profit of $3.8 million or $0.65 per fully diluted share in the Fourth quarter of 2021. Net income in the fourth quarter of 2021 includes a one-time tax benefit of $3.6 million.

 
Fourth Quarter 2022 Non-GAAP Financial Results
 
EBITDA for the fourth quarter of 2022 was a $1.2 million (12% of revenues) compared to EBITDA of $1.1 million (11% of revenues) in the fourth quarter of 2021.
 
Conference Call
 
Today, Thursday, March 9, 2023, at 8:30am Eastern Time (15:30pm Israel Time, 5:30am 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 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.
 
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 a table below.
 
Investor Contact
 
Ron Freund
Chief Financial Officer
Investor-Contact@nisteceltek.com
+972-3-939-5023

(Tables follow)

Eltek Ltd.
Consolidated Statements of Income
(In thousands US$, except per share data)

   
Three months ended
    
Twelve months ended
  
   
December 31,
    
December 31,
  
   
2022
    
2021
    
2022
    
2021
  
                         
Revenues
    
10,479
      
9,521
      
39,650
      
33,823
  
Costs of revenues
    
(8,267
)
    
(7,565
)
    
(31,380
)
    
(26,926
)
                                 
Gross profit
    
2,212
      
1,956
      
8,270
      
6,897
  
                                 
Selling, general and administrative expenses
    
(1,348
)
    
(1,310
)
    
(5,207
)
    
(4,870
)
R&D expenses, net
    
(15
)
    
(23
)
    
(92
)
    
(78
)
                                 
Operating profit
    
849
      
623
      
2,971
      
1,949
  
                                 
Financial income (expenses), net
    
100
      
(387
)
    
887
      
(488
)
Other income (loss), net
    
-
      
-
      
-
      
41
  
                                 
Profit before income tax
    
949
      
236
      
3,858
      
1,502
  
                                 
Tax expenses (income)
    
144
      
(3,600
)
    
664
      
(3,537
)
                                 
Net Profit
    
805
      
3,836
      
3,194
      
5,039
  
                                 
Earnings per share:
                                
Basic net profit per ordinary share
    
0.14
      
0.66
      
0.55
      
0.86
  
                                 
Diluted net profit per ordinary share
    
0.14
      
0.65
      
0.55
      
0.86
  
                                 
Weighted average number of ordinary shares used to compute
                          
basic net profit per ordinary share (in thousands)
    
5,850
      
5,840
      
5,848
      
5,840
  
                                 
Weighted average number of ordinary shares used to compute
                          
diluted net profit per ordinary share (in thousands)
    
5,850
      
5,860
      
5,848
      
5,869
  


Eltek Ltd.
  
Consolidated Balance Sheets
  
(In thousands US$)
  

   
December 31,
    
December 31,
  
   
2022
    
2021
  
             
Assets
            
             
Current assets:
            
Cash and cash equivalents
    
7,366
      
9,283
  
Receivables:   Trade, net of provision for doubtful accounts
    
10,116
      
7,021
  
Other
    
282
      
798
  
Inventories
    
5,130
      
4,893
  
Prepaid expenses
    
504
      
586
  
                 
Total current assets
    
23,398
      
22,581
  
                 
Long term assets:
                
Restricted deposits
    
202
      
226
  
Severance pay fund
    
59
      
66
  
Deferred tax assets and long term tax receivables, net
    
2,496
      
3,563
  
Operating lease right of use assets
    
7,693
      
8,979
  
Total long term assets
    
10,450
      
12,834
  
                 
Fixed assets, less accumulated depreciation
    
7,674
      
7,368
  
                 
Total Assets
    
41,522
      
42,783
  
                 
Liabilities and Shareholder's equity
                
                 
Current liabilities:
                
Short-term credit and current maturities of long-term debts
    
702
      
708
  
Accounts payable: Trade
    
4,793
      
4,044
  
Other
    
4,133
      
3,577
  
Short-term operating lease liabilities
    
846
      
931
  
                 
Total current liabilities
    
10,474
      
9,260
  
                 
Long-term liabilities:
                
Long term debt, excluding current maturities
    
2,768
      
3,921
  
Employee severance benefits
    
280
      
344
  
Long-term operating lease liabilities
    
6,980
      
8,186
  
                 
Total long-term liabilities
    
10,028
      
12,451
  
                 
Shareholders' equity:
                
Ordinary shares, NIS 3.0 par value authorized 10,000,000 shares, issued and outstanding 5,849,678 at December 31, 2022 and 5,840,357 at December 31, 2021
    
5,305
      
5,296
  
Additional paid-in capital
    
22,862
      
22,846
  
Cumulative foreign currency translation adjustments
    
1,189
      
3,716
  
Capital reserve
    
1,537
      
1,287
  
Accumulated deficit
    
(9,873
)
    
(12,073
)
Total shareholders' equity
    
21,020
      
21,072
  
Total liabilities and shareholders' equity
    
41,522
      
42,783
  


Eltek Ltd.
Unaudited Non-GAAP EBITDA Reconciliations
(In thousands US$)

   
Three months ended
    
Twelve months ended
  
   
December 31,
    
December 31,
  
   
2022
    
2021
    
2022
    
2021
  
                         
GAAP net Income
    
805
      
3,836
      
3,194
      
5,039
  
Add back items:
                                
                                 
Financial expenses (income), net
    
(100
)
    
387
      
(887
)
    
488
  
Income tax expenses (income)
    
144
      
(3,600
)
    
664
      
(3,537
)
Depreciation and amortization
    
357
      
450
      
1,541
      
1,781
  
Non-GAAP EBITDA
    
1,206
      
1,073
      
4,512
      
3,771
  


Eltek Ltd.
Consolidated Statements of  Cash Flows
(In thousands US$)

   
Three months ended
    
Twelve months ended
  
   
December 31,
    
December 31,
  
   
2022
    
2021
    
2022
    
2021
  
                         
Cash flows from operating activities:
                        
                         
Net Income
    
805
      
3,836
      
3,194
      
5,039
  
Adjustments to reconcile net income to net cash flows provided by operating activities:
                                
Depreciation and amortization
    
357
      
450
      
1,541
      
1,781
  
Stock-based compensation
    
62
      
74
      
250
      
203
  
Decrease in deferred tax assets and long term tax receivable
    
151
      
(3,585
)
    
653
      
(3,563
)
     
570
      
(3,061
)
    
2,444
      
(1,579
)
                                 
Decrease (increase) in operating lease right-of-use assets
    
3
      
25
      
11
      
66
  
Decrease (increase) in trade receivables
    
(446
)
    
(301
)
    
(3,941
)
    
2,260
  
Decrease (increase) in other receivables and prepaid expenses
    
42
      
(161
)
    
437
      
(18
)
Decrease (increase) in inventories
    
(463
)
    
(499
)
    
(806
)
    
(1,023
)
Increase (decrease) in trade payables
    
380
      
424
      
1,543
      
(451
)
Increase (decrease) in other liabilities and accrued expenses
    
402
      
164
      
972
      
(414
)
Increase (decrease)  in employee severance benefits, net
    
(36
)
    
-
      
(25
)
    
(5
)
     
(118
)
    
(348
)
    
(1,809
)
    
415
  
                                 
Net cash provided by operating activities
    
1,257
      
427
      
3,829
      
3,875
  
                                 
Cash flows from investing activities:
                                
Purchase of fixed assets
    
(571
)
    
(173
)
    
(3,027
)
    
(1,535
)
Repayment from insuarance
    
-
      
44
      
-
      
44
  
Restricted deposits
    
-
      
-
      
(2
)
    
(156
)
Net cash used in investing activities
    
(571
)
    
(129
)
    
(3,029
)
    
(1,647
)
                                 
Cash flows from financing activities:
                                
Short- term bank credit, net
    
-
      
-
      
-
      
(377
)
Exercise of options
    
-
      
-
      
25
      
-
  
Dividend distribution
    
(994
)
    
-
      
(994
)
    
-
  
Repayment of long-term loans from bank
    
(227
)
    
(114
)
    
(669
)
    
(301
)
Proceeds from long-term loans
    
-
      
-
      
-
      
3,063
  
Repayment of credit from fixed asset payables
    
-
      
25
      
-
      
(261
)
Net cash provided by (used in) financing activities
    
(1,221
)
    
(89
)
    
(1,638
)
    
2,124
  
                                 
Effect of translation adjustments
    
54
      
189
      
(1,079
)
    
196
  
                                 
Net increase (decrease) in cash and cash equivalents
    
(481
)
    
398
      
(1,917
)
    
4,548
  
                                 
Cash and cash equivalents at the beginning of the period
    
7,847
      
8,885
      
9,283
      
4,735
  
                                 
Cash and cash equivalents at the end of the period
    
7,366
      
9,283
      
7,366
      
9,283