6-K 1 zk1618960.htm 6-K
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
 
          
F O R M 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2016

TAT TECHNOLOGIES LTD.
(Name of Registrant)
 
      P.O.BOX 80, Gedera 70750 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- ____________
 

TAT Technologies Ltd.

6-K Items

1. Press Release dated August 31, 2016 re TAT Technologies Ltd. Reports Second Quarter 2016 Results.

2
 
ITEM 1

Press Release
Source: TAT Technologies Limited

TAT Technologies Reports Second Quarter 2016 Results

GEDERA, Israel, Wednesday, August 31, 2016 - TAT Technologies Ltd. (NASDAQ: TATT - News) (the “Company”), a leading provider of services and products to the commercial and military aerospace and ground defense industries, reported today its unaudited results for the three month and six month periods ended June 30, 2016.
 
Financial Highlights for the Second quarter of 2016 (unaudited):
 
·
Total Revenue: $23.5 million compared to $21.5 million in the second quarter of 2015.

·
Operating income: $0.3 million compared to $1.1 million in the second quarter of 2015.
 
·
EBITDA: $1.2 million compared to $1.8 million in the second quarter of 2015.
 
·
Net income (loss): $(2.5) million loss, of which $ 2.4 million is attributable to tax expenses, compared to $0.7 million income in the second quarter of 2015.
 
·
Dividend: The Company declared a cash dividend in the total amount of $3.0 million. The dividend was paid to the shareholders on August 9, 2016.
The Company recorded an accrual, related to tax expenses, of approximately $2.4 million of which $ 2 million is related to a deferred tax liability for future distribution of earnings from foreign subsidiaries of the Company, since the Company's Board of Directors considers future distribution of dividends from these earnings to the Company's shareholders.

·
Earnings (loss) per share basic and diluted: $(0.28) loss per share compared to $0.08 earnings per share in the second quarter of 2015.
 
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 or “OEM” of Heat Management Solutions (ii) Heat Transfer Services and Products (iii) Maintenance, Repair and Overhaul or “MRO” services of Aviation Components; and (iv) overhaul and coating of jet engine components.

TAT’s activities in the area of OEM Heat Management Solutions are focused on the design, development, manufacture, and sale of the following: (i) a broad range of heat transfer components including heat exchangers, pre-coolers and oil/fuel hydraulic coolers used in mechanical and electronic systems on-board commercial, military and business aircraft; (ii) environmental control and cooling systems on board aircraft and for ground applications; and (iii) a variety of other electronic and mechanical aircraft accessories and systems such as pumps, valves, power systems and turbines.

3
TAT’s activities in the area of Heat Transfer Services and Products include the maintenance, repair and overhaul of heat transfer equipment and to a lesser extent, the manufacture of certain heat transfer product parts. TAT’s Limco subsidiary operates an FAA certified repair station, which provides heat transfer MRO services and products for airlines, air cargo carriers, maintenance service centers and the military.

TAT’s activities in the area of MRO services for Aviation Components include the maintenance, repair and overhaul 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 jet engine overhaul includes the overhaul and coating of jet engine components such as turbine vanes and blades, fan blades, variable inlet guide vanes, afterburner flaps and other components.
 
For more information of TAT Technologies Ltd., please visit our web-site:
www.tat-technologies.com
 
Guy Nathanzon – CFO
TAT Technologies Ltd.
Tel: 972-8-862-8500
guyn@tat-technologies.com
 
Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements which include, without limitation, statements regarding possible or assumed future operation results. These statements are hereby identified as "forward-looking statements" for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause our results to differ materially from management's current expectations. Actual results and performance can also be influenced by other risks that we face in running our operations including, but are not limited to, general business conditions in the airline industry, changes in demand for our services and products, the timing and amount or cancellation of orders, the price and continuity of supply of component parts used in our operations, the change of control that will occur on the sale by the receiver of the Company’s shares held by our previously controlling stockholders, and other risks detailed from time to time in the Company's filings with the Securities Exchange Commission, including, its annual report on form 20-F and its periodic reports on form 6-K. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statement.

4
 
TAT TECHNOLOGIES AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)

 
June 30,
    
December 31,
  
   
2016
    
2015
  
   
(unaudited)
    
(audited)
  
ASSETS
            
CURRENT ASSETS:
            
Cash and cash equivalents
  
$
15,703
    
$
18,688
  
Short-term bank deposits
    
6,133
      
8,122
  
Accounts receivable, net
    
22,605
      
19,151
  
Other current assets and prepaid expenses
    
2,392
      
3,025
  
Inventory, net
    
37,099
      
36,664
  
                 
Total current assets
    
83,932
      
85,650
  
                 
NON-CURRENT ASSETS:
                
Investment in affiliates
    
168
      
169
  
Funds in respect of employee rights upon retirement
    
2,527
      
2,626
  
Deferred income taxes
    
566
      
890
  
Intangible assets, net
    
1,247
      
1,314
  
Property, plant and equipment, net
    
20,958
      
18,934
  
                 
Total non-current assets
    
25,466
      
23,933
  
                 
Total assets
  
$
109,398
    
$
109,583
  
                 
LIABILITIES AND EQUITY
                
                 
CURRENT LIABILITIES:
                
Accounts payable
    
7,005
      
7,022
  
Dividends declared, not yet paid
    
3,000
      
-
  
Accrued expenses
    
8,160
      
7,815
  
Total current liabilities
    
18,165
      
14,837
  
                 
NON CURRENT LIABILITIES:
                
Other long-term liabilities
    
67
      
189
  
Liability in respect of employee rights upon retirement
    
2,884
      
2,871
  
Deferred income taxes
    
2,038
      
262
  
                 
Total non-current liabilities
    
4,989
      
3,322
  
                 
Total liabilities
    
23,154
      
18,159
  
                 
EQUITY:
                
Share capital
    
2,797
      
2,793
  
Additional paid-in capital
    
64,682
      
64,529
  
Treasury stock at cost
    
(2,088
)
    
(2,088
)
Accumulated other comprehensive loss
    
67
      
(4
)
Retained earnings
    
20,786
      
26,194
  
Total shareholders' equity
    
86,244
      
91,424
  
                 
Total liabilities and shareholders' equity
  
$
109,398
    
$
109,583
  
 
 
5
TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)

   
Three months ended
    
Six months ended
    
Year ended
  
   
June 30,
    
December 31,
  
   
2016
    
2015
    
2016
    
2015
    
2015
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Unaudited)
        
         
(Revised)
          
(Revised)
    
(Revised)
  
Revenues:
                              
Products
  
$
7,941
    
$
7,747
    
$
16,010
    
$
14,726
    
$
31,339
  
Services
    
15,589
      
13,723
      
31,154
      
27,230
      
54,268
  
     
23,530
      
21,470
      
47,164
      
41,956
      
85,607
  
                                         
Cost of goods:
                                        
Products
    
6,341
      
6,034
      
13,032
      
11,588
      
24,466
  
Services
    
12,794
      
11,321
      
25,802
      
22,399
      
47,476
  
     
19,135
      
17,355
      
38,834
      
33,987
      
71,942
  
Gross Profit
    
4,395
      
4,115
      
8,330
      
7,969
      
13,665
  
                                         
Operating expenses:
                                        
Research and development, net
    
474
      
185
      
738
      
323
      
890
  
Selling and marketing
    
947
      
758
      
1,957
      
1,483
      
2,903
  
General and administrative
    
2,682
      
2,024
      
5,092
      
3,948
      
8,469
  
Other loss (income)
    
(4
)
    
-
      
(3
)
    
1
      
631
  
Gain on bargain purchase
    
-
      
-
      
-
      
-
      
(4,833
)
     
4,099
      
2,967
      
7,784
      
5,755
      
8,060
  
Operating income
    
296
      
1,148
      
546
      
2,214
      
5,605
  
                                         
Financial expenses, net
    
(13
)
    
(64
)
    
(32
)
    
(249
)
    
(349
)
                                         
Income before taxes on income
    
283
      
1,084
      
514
      
1,965
      
5,256
  
                                         
Taxes on income
    
2,722
      
351
      
2,908
      
782
      
644
  
                                         
Income (loss) before equity investment
    
(2,439
)
    
733
      
(2,394
)
    
1,183
      
4,612
  
                                         
Share in results and sale of equity investment of affiliated companies
    
(14
)
    
-
      
(14
)
    
1,491
      
1,237
  
                                         
Net income (loss)
  
$
(2,453
)
  
$
733
    
$
(2,408
)
  
$
2,674
    
$
5,849
  
                                         
Basic and diluted income (loss) per share
                                        
                                         
Net income (loss) per share
  
$
(0.28
)
  
$
0.08
    
$
(0.27
)
  
$
0.30
    
$
0.66
  
                                         
Weighted average number of shares outstanding
                                        
Basic
    
8,828,444
      
8,808,344
      
8,828,444
      
8,808,344
      
8,808,344
  
Diluted
    
8,828,444
      
8,811,044
      
8,828,444
      
8,809,423
      
8,810,689
  


6
 
TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
 
   
Three months ended
    
Six months ended
    
Year ended
  
   
June 30,
    
December 31,
  
   
2016
    
2015
    
2016
    
2015
    
2015
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Unaudited)
        
         
(Revised)
          
(Revised)
    
(Revised)
  
Net income (loss)
  
$
(2,453
)
  
$
733
    
$
(2,408
)
  
$
2,674
    
$
5,849
  
Other comprehensive income
                                        
Net unrealized gains (losses) from derivatives
    
(173
)
    
-
      
192
      
-
      
(5
)
Reclassification adjustments  for gains included in net income and
  inventory
    
(74
)
    
-
      
(121
)
    
-
      
1
  
Total other comprehensive income (loss)
  
$
(2,700
)
  
$
733
    
$
(2,337
)
  
$
2,674
    
$
5,845
  


7
 
TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 
   
Three months ended
    
Six months ended
    
Year ended
  
   
June 30,
    
December 31,
  
   
2016
    
2015
    
2016
    
2015
    
2015
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Unaudited)
        
         
(Revised)
          
(Revised)
    
(Revised)
  
CASH FLOWS FROM OPERATING ACTIVITIES:
                              
Net income (loss) attributable to TAT Technologies Ltd. shareholders
  
$
(2,453
)
  
$
733
    
$
(2,408
)
  
$
2,674
    
$
5,849
  
                                         
Adjustments to reconcile net income to net cash provided by operating activities:
                                        
                                         
Depreciation and amortization
    
880
      
661
      
1,731
      
1,215
      
2,781
  
Loss on sale of  property, plant and equipment
    
-
      
-
      
1
      
1
      
-
  
Interest from short-term bank deposits and restricted deposits
    
-
      
(15
)
    
(11
)
    
(15
)
    
(33
)
Loss (gain) from change in fair value of derivatives
    
5
      
-
      
(48
)
    
-
      
10
  
Provision for doubtful accounts
    
-
      
-
      
43
      
-
      
206
  
Share in results and sale of equity investment of affiliated Company
    
14
      
-
      
14
      
(1,491
)
    
(1,237
)
Share based compensation
    
13
      
-
      
27
      
15
      
38
  
Gain on bargain purchase
    
-
      
-
      
-
      
-
      
(4,833
)
Liability in respect of employee rights upon retirement
    
(5
)
    
152
      
13
      
121
      
28
  
Deferred income taxes, net
    
2,218
      
277
      
2,100
      
643
      
(21
)
Changes in operating assets and liabilities:
                                        
   Increase in trade accounts receivable
    
(2,060
)
    
(1,940
)
    
(3,497
)
    
(2,642
)
    
(2,375
)
   Decrease (increase) in other current assets and prepaid expenses
    
1,480
      
(729
)
    
944
      
(311
)
    
(85
)
   Increase in inventory
    
(677
)
    
(163
)
    
(505
)
    
(1,199
)
    
(571
)
   Increase (decrease) in trade accounts payable
    
(551
)
    
1,317
      
(124
)
    
(405
)
    
436
  
   Increase (decrease) in  accrued expenses
    
(207
)
    
(148
)
    
345
      
1,288
      
525
  
   Increase (decrease) in other long-term liabilities
    
25
      
(7
)
    
(122
)
    
(14
)
    
15
  
Net cash provided by (used in) operating activities
  
$
(1,318
)
  
$
138
    
$
(1,497
)
  
$
(120
)
  
$
733
  
                                         
CASH FLOWS FROM INVESTING ACTIVITIES:
                                        
Acquisitions of subsidiary, net of cash acquired
    
-
      
-
      
-
      
-
      
(1,796
)
Investment in affiliated company
    
(13
)
    
-
      
(13
)
    
-
      
-
  
Proceeds from sale of equity investment of affiliated Company
    
-
      
-
      
-
      
3,624
      
3,624
  
Funds in respect of employee rights upon retirement
    
117
      
(85
)
    
(23
)
    
(137
)
    
8
  
Proceeds from sale of property and equipment
            
-
      
1
      
6
      
9
  
Purchase of property and equipment
    
(2,915
)
    
(846
)
    
(3,583
)
    
(1,699
)
    
(3,315
)
Investments in short-term deposits
    
-
      
-
      
-
      
-
      
(8,109
)
Maturities of short-term deposits
    
-
      
-
      
2,000
      
-
      
5,109
  
Cash flows provided by (used in) investing activities
  
$
(2,811
)
  
$
(931
)
  
$
(1,618
)
  
$
1,794
    
$
(4,470
)
                                         
Cash flows  provided by (used in) financing activities
  
$
-
    
$
-
    
$
130
    
$
-
    
$
(469
)
                                         
Net increase (decrease) in cash and cash equivalents
    
(4,129
)
    
(793
)
    
(2,985
)
    
1,674
      
(4,206
)
                                         
Cash and cash equivalents at beginning of period
    
19,832
      
25,361
      
18,688
      
22,894
      
22,894
  
                                         
Cash and cash equivalents at end of period
  
$
15,703
    
$
24,568
    
$
15,703
    
$
24,568
    
$
18,688
  
 
   
Three months ended
    
Six months ended
    
Year ended
  
   
June 30,
    
December 31,
  
   
2016
    
2015
    
2016
    
2015
    
2015
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Unaudited)
        
         
(Revised)
          
(Revised)
    
(Revised)
  
SUPPLEMENTARY INFORMATION ON INVESTING ACTIVITIES NOT INVOLVING CASH FLOW:
                              
Dividends declared, not yet paid
  
$
3,000
    
$
-
    
$
3,000
    
$
-
    
$
-
  
 
8
 
SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
TAT TECHNOLOGIES LTD.
            (Registrant)
  
       
 
By:
/s/ Guy Nathanzon  
   
Guy Nathanzon
  
   
Chief Financial Officer
  
       
Date: August 31, 2016
 
9