6-K 1 zk2126758.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 November 2021

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 November 4, 2021 re TAT Technologies Ltd. Reports Third Quarter 2021 Results.


2
ITEM 1

Press Release
Source: TAT Technologies Limited

TAT Technologies Reports Third Quarter 2021 Results

GEDERA, Israel, November 4, 2021 - 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 unaudited results for the three month and nine month periods ended September 30, 2021.

Key Financial Highlights:

•
Revenues for Q3 2021 were $17.6 million compared to $16.8 million in Q3 2020.  Revenues for the nine-month period that ended on September 30, 2021 were $57.6 million compared with $58.8 million in the nine-month period that ended on September 30, 2020.

•
Gross profit for Q3 2021 more than doubled to $3 million (16.8% as a percentage of revenues) compared with $1.4 million (8.3% as a percentage of revenues) in Q3 2020.  Gross profit for the nine-month period that ended on September 30, 2021, was $9.5 million (16.5% as a percentage of revenues) compared with $7.5 million (12.7% as a percentage of revenues) in the nine-month period that ended on September 30, 2020.

•
Adjusted EBITDA for Q3 2021 significantly improved to $1.03 million compared with negative $0.3 million in Q3 2020. Adjusted EBITDA for the nine-month period that ended on September30, 2021 improved by 40% to $3 million compared with $2.2 million in the nine-month period that ended on September 30, 2019.

•
Net loss continues to decrease and was ($0.97) million, or loss of ($0.11) per diluted share in Q3 2021 compared with a net loss of ($1.6) million, or ($0.16) per diluted share in Q3 2020. Net loss was ($2.86) million (out of which $2.54 million in restructuring costs) , or loss of ($0.32) per diluted share in the nine-month period that ended on September 30, 2021, compared with a net loss of ($3.38) million, or ($0.37) per diluted share in the nine-month period that ended on September 30, 2020.

•
The implementation of the strategic footprint rationalization scheme is on-track. The main objective of the new footprint calls for concentration in three main production facilities (instead of four) and the creation of a “center of excellence” in the heat transfer activities. In connection with such plan, the Company incurred restructuring expenses of $2.5 million and capital expenditures of $3.1 million in the nine months of 2021.

Mr. Igal Zamir, CEO and President of TAT Technologies stated, “During the last quarter we continued the strategic rationalization scheme to reduce the main production sites from four to three.  We expect to benefit from the internal synergies of combining the heat transfer activity in one center of excellence and improve our cost structure. The process is progressing on track and is expected to be completed by Q2\22.   We continued strengthening our position as Honeywell's premier partner to serve Honeywell's main line of APUs that are used in the majority of the active platform (including the Boeing 737 family and the Airbus 320 family). In this regard we continue to build our capabilities to serve new platform and increase revenues from this segment starting from 2022”.  Mr. Zamir continues: “we continue to enjoy US grants in support of the pandemic impact of $2.5M in Q3 and see a sequential improvement in volumes of the MRO activity as the commercial airline industry starts to recover from the meaningful slow-down of the pandemic”.

3
Non-GAAP Financial Measures

To supplement the consolidated financial statements presented in accordance with GAAP, the Company also presents 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. Adjusted EBITDA is calculated as net income excluding the impact of: the Company's share in results of affiliated companies, share-based compensation, taxes on income, discontinued operation, financial (expenses) income, net, depreciation and amortization. Adjusted EBITDA, however, should not be considered as alternative to net income and operating income for the period and may not be indicative of the historic operating results of the Company; nor it is meant to be predictive of potential future results. Adjusted EBITDA is not measure of financial performance under generally accepted accounting principles and may not be comparable to other similarly titled measures for other companies. See reconciliation of Adjusted EBITDA in pages 13 below.

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 the area of 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 the area of 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.

For more information of TAT Technologies Ltd., please visit our web-site:
www.tat-technologies.com


4
Contact:
Mr. Ehud Ben-Yair
Chief Financial Officer
Tel: 972-8-862-8503
ehudb@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.
5

TAT TECHNOLOGIES AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)

 
September 30,
    
December 31,
  
   
2021
    
2020
  
   
(unaudited)
    
(audited)
  
ASSETS
            
CURRENT ASSETS:
            
   Cash and cash equivalents
  
$
13,689
    
$
24,128
  
   Accounts receivable, net
    
13,155
      
11,355
  
   Inventory, net
    
40,527
      
41,223
  
   Other current assets and prepaid expenses
    
5,428
      
2,737
  
                 
       Total current assets
    
72,799
      
79,443
  
                 
NON-CURRENT ASSETS:
   Restricted deposit
    
330
      
176
  
 Investment in affiliates
    
697
      
771
  
Funds in respect of employee rights upon retirement
    
1,019
      
1,186
  
 Deferred income taxes
    
742
      
566
  
Intangible assets, net
    
1,881
      
1,475
  
Property, plant and equipment, net
    
29,482
      
25,737
  
Operating lease right of use assets
    
4,888
      
6,767
  
                 
Total non-current assets
    
39,039
      
36,678
  
Total assets
  
$
111,838
    
$
116,121
  
                 
LIABILITIES AND EQUITY
                
CURRENT LIABILITIES:
                
   Current maturities of long-term loans
    
1,269
      
1,477
  
   Credit line from bank
    
6,010
      
3,000
  
   Accounts payable
    
6,216
      
12,222
  
   Accrued expenses
    
7,568
      
6,691
  
   Operating lease liabilities
    
1,615
      
1,614
  
   Provision for restructuring plan
    
470
      
-
  
   Liabilities belong to discontinued operation
    
-
      
179
  
                 
       Total current liabilities
    
23,148
      
25,183
  
                 
NON CURRENT LIABILITIES:
                
   Long-term loans
    
5,221
      
3,489
  
   Liability in respect of employee rights upon retirement
    
1,361
      
1,410
  
   Operating lease liabilities
    
4,691
      
5,758
  
                 
 Total non-current liabilities
    
11,273
      
10,657
  
                 
Total liabilities
  
$
34,421
    
$
35,840
  
EQUITY:
                
   Share capital
    
2,809
      
2,809
  
   Additional paid-in capital
    
65,813
      
65,711
  
   Treasury stock at cost
    
(2,088
)
    
(2,088
)
   Accumulated other comprehensive income
    
21
      
128
  
   Retained earnings
    
10,859
      
13,721
  
Total shareholders' equity
    
77,417
      
80,281
  
                 
Total liabilities and shareholders' equity
  
$
111,838
    
$
116,121
  

6
TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)

   
Three months ended
    
Nine months ended
    
Year ended
  
   
September 30,
    
December 31,
  
   
2021
    
2020
    
2021
    
2020
    
2020
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
                               
Revenues:
                              
Products
  
$
5,268
    
$
4,822
    
$
18,221
    
$
18,157
    
$
22,739
  
Services
    
12,351
      
11,995
      
39,343
      
40,667
      
52,620
  
     
17,619
      
16,817
      
57,564
      
58,824
      
75,359
  
                                         
Cost of goods:
                                        
   Products
    
5,226
      
4,383
      
16,362
      
16,156
      
20,751
  
   Services
    
9,443
      
11,036
      
31,700
      
35,179
      
46,173
  
     
14,668
      
15,419
      
48,062
      
51,335
      
66,924
  
   Gross Profit
    
2,951
      
1,398
      
9,502
      
7,489
      
8,435
  
                                         
Operating expenses:
                                        
   Research and development, net
    
97
      
62
      
368
      
131
      
185
  
   Selling and marketing
    
1,330
      
920
      
3,993
      
2,986
      
4,369
  
   General and administrative
    
2,043
      
1,813
      
5,974
      
5,542
      
7,612
  
   Restructuring and other expenses
    
122
      
-
      
2,538
      
21
      
315
  
     
3,592
      
2,795
      
12,873
      
8,680
      
12,481
  
                                         
Operating loss
    
(641
)
    
(1,397
)
    
(3,371
)
    
(1,191
)
    
(4,046
)
                                         
   Financial expenses, net
    
(257
)
    
(177
)
    
(117
)
    
(248
)
    
(770
)
                                         
Income (loss) before taxes on income (tax benefit)
    
(898
)
    
(1,574
)
    
(3,488
)
    
(1,439
)
    
(4,816
)
                                         
Taxes on income (tax benefit)
    
73
      
(180
)
    
(198
)
    
(48
)
    
(1,517
)
                                         
Income (loss) before equity investment
    
(971
)
    
(1,394
)
    
(3,290
)
    
(1,391
)
    
(3,299
)
                                         
Share in results of affiliated companies
    
(36
)
    
(62
)
    
(75
)
    
(179
)
    
(185
)
                                         
Net income (loss) from continued operation
  
$
(1,007
)
  
$
(1,456
)
  
$
(3,365
)
  
$
(1,570
)
  
$
(3,484
)
                                         
Net profit (loss) from discontinued operation
  
$
40
    
$
(120
)
  
$
503
    
$
(1,806
)
  
$
(1,845
)
                                         
Net income (loss)
  
$
(967
)
  
$
(1,576
)
  
$
(2,862
)
  
$
(3,376
)
  
$
(5,329
)
                                         
Basic and diluted income (loss) per share
                                        
                                         
Net income (loss) per share from continued operation
  
$
(0.11
)
  
$
(0.16
)
  
$
(0.38
)
  
$
(0.17
)
  
$
(0.39
)
Net loss per share from discontinued operation
  
$
0
    
$
0
    
$
0.06
    
$
(0.2
)
  
$
(0.21
)
Net income (loss) per share
  
$
(0.11
)
  
$
(0.16
)
  
$
(0.32
)
  
$
(0.37
)
  
$
(0.6
)
                                         
Weighted average number of shares outstanding
                                        
Basic
    
8,874,696
      
8,874,696
      
8,874,696
      
8,874,696
      
8,874,696
  
Diluted
    
8,874,696
      
8,874,696
      
8,874,696
      
8,874,696
      
8,874,696
  

7
TAT TECHNOLOGIES AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)

   
Three months ended
    
Nine months ended
    
Year ended
  
   
September 30,
    
December 31,
  
   
2021
    
2020
    
2021
    
2020
    
2020
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
                               
Net income (loss)
  
$
(967
)
  
$
(1,576
)
  
$
(2,862
)
  
$
(3,376
)
  
$
(5,329
)
Other comprehensive income
                                        
Net unrealized income (loss) from derivatives
    
21
      
(33
)
    
(107
)
    
(7
)
    
232
  
       Reclassification adjustments for gains (losses)
           included in net income and inventory
    
-
      
-
      
-
      
5
      
(130
)
       Total other comprehensive income (loss)
  
$
(946
)
  
$
(1,609
)
  
$
(2,969
)
  
$
(3,378
)
  
$
(5,227
)


8
TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(In thousands, except share data)

   
TAT Technologies Ltd. Shareholders
        
   
Share capital
          
Accumulated
                    
   
Number of
shares issued
    
Amount
    
Additional
paid-in
capital
    
other
comprehensive income (loss)
    
Treasury
shares
    
Retained
earnings
    
Total
equity
  
                                           
BALANCE AT DECEMBER 31, 2018
    
9,122,501
    
$
2,802
    
$
65,535
    
$
(206
)
  
$
(2,088
)
  
$
18,244
    
$
84,294
  
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2019:
                                                        
Comprehensive income
    
-
      
-
      
-
      
232
      
-
      
806
      
1,038
  
Share based compensation
   expenses
    
-
      
-
      
38
      
-
      
-
      
-
      
38
  
BALANCE AT DECEMBER 31, 2019
    
9,149,169
    
$
2,809
    
$
65,573
    
$
26
    
$
(2,088
)
  
$
19,050
    
$
85,370
  
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2020:
                                                        
Comprehensive loss
    
-
      
-
      
-
      
102
      
-
      
(5,329
)
    
(5,227
)
 Share based compensation
   expenses
    
-
      
-
      
138
      
-
      
-
      
-
      
138
  
BALANCE AT DECEMBER 31, 2020
    
9,149,169
    
$
2,809
    
$
65,711
    
$
128
    
$
(2,088
)
  
$
13,721
    
$
80,281
  
CHANGES DURING THE YEAR ENDED SEPTEMBER 30, 2021 (unaudited):
                                                        
Comprehensive (loss)
    
-
      
-
      
-
      
(107
)
    
-
      
(2,862
)
    
(2,969
)
 Share based compensation
   expenses
    
-
      
-
      
105
      
-
      
-
      
-
      
105
  
BALANCE AT SEPTEMBER 30, 2021 (unaudited)
    
9,149,169
    
$
2,809
    
$
65,816
    
$
21
    
$
(2,088
)
  
$
10,859
    
$
77,417
  


9

TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

   
Three months ended
    
Nine months ended
    
Year ended
  
   
September 30,
    
December 31,
  
   
2021
    
2020
    
2021
    
2020
    
2020
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
CASH FLOWS FROM OPERATING ACTIVITIES:
                              
Net income (loss)
  
$
(967
)
  
$
(1,576
)
  
$
(2,862
)
  
$
(3,376
)
  
$
(5,329
)
Net income (loss) from continued operations
    
(1,007
)
    
(1,456
)
    
(3,365
)
    
(1,570
)
    
(3,484
)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
                                        
                                         
Depreciation and amortization
    
1,440
      
1,079
      
3,577
      
3,107
      
4,065
  
Loss (gain) from change in fair value of derivatives
    
(21
)
    
(14
)
    
(46
)
    
7
      
(34
)
Provision for doubtful accounts
    
7
      
(73
)
    
49
      
133
      
(8
)
Share in results of equity investment of affiliated Company
    
36
      
62
      
75
      
179
      
185
  
Share based compensation
    
47
      
33
      
105
      
110
      
138
  
Non cash finance expense
    
(13
)
    
57
      
(407
)
    
(48
)
    
566
  
Provision for restructuring expenses
    
-
      
-
      
470
      
-
      
-
  
Liability in respect of employee rights upon retirement
    
(59
)
    
(159
)
    
(49
)
    
(300
)
    
(341
)
Impairment of intangible assets
    
-
      
-
      
-
      
-
      
298
  
Impairment of fixed assets
    
-
              
1,800
              
-
  
Deferred income taxes, net
    
104
      
441
      
(176
)
    
384
      
(1,438
)
Government loan forgiveness
    
-
      
(794
)
    
(1,442
)
    
265
      
-
  
Changes in operating assets and liabilities:
                                        
    Decrease (increase) in trade accounts receivable
    
1,733
      
787
      
(1,693
)
    
7,027
      
9,472
  
    Decrease (increase) in other current assets and prepaid expenses
    
1,161
      
(729
)
    
(1,177
)
    
(605
)
    
310
  
Decrease (increase) in inventory
    
(1,634
)
    
1,674
      
(185
)
    
3,039
      
1,868
  
    Increase (decrease) in trade accounts payable
    
(1,303
)
    
307
      
191
      
(2,913
)
    
(5,336
)
    Increase (decrease) in accrued expenses
    
(836
)
    
(995
)
    
(532
)
    
(1,080
)
    
(252
)
    Decrease in other long-term liabilities
    
(73
)
    
-
      
(39
)
    
(62
)
    
(62
)
Net cash provided by operating activities
  
$
(418
)
  
$
220
    
$
(2,773
)
  
$
7,673
    
$
5,947
  
CASH FLOWS FROM INVESTING ACTIVITIES:
                                        
Proceeds from sale of property and equipment
    
-
      
-
      
-
      
(22
)
    
-
  
Increase in long-term deposits
    
-
      
(2
)
    
-
      
(165
)
    
-
  
Purchase of property and equipment
    
(4,652
)
    
(1,253
)
    
(13,275
)
    
(3,012
)
    
(3,894
)
Purchase of intangible assets
    
(11
)
    
(950
)
    
(555
)
    
(950
)
    
(1,513
)
Cash flows used in investing activities
  
$
(4,663
)
  
$
(2,205
)
  
$
(13,830
)
  
$
(4,149
)
  
$
(5,407
)
CASH FLOWS FROM FINANCING ACTIVITIES:
                                        
    Short-term credit received from banks
    
-
      
-
      
3,000
      
-
      
3,960
  
    Proceeds from long-term loans received
    
-
      
-
      
3,042
      
4,841
      
3,692
  
Cash flows provided by financing activities
  
$
-
    
$
-
    
$
6,042
    
$
4,841
    
$
7,652
  
Cash flows from discontinued operations:
Net profit (loss) from discontinued operation
  
$
40
    
$
(120
)
  
$
503
    
$
(1,806
)
  
$
(1,845
)
Net cash provided by operating activities
    
88
      
175
      
(156
)
    
1,588
      
1,998
  
Net cash provided by (used in) discontinued activities
  
$
128
    
$
55
    
$
347
    
$
(218
)
  
$
153
  
                                         
Net increase (decrease) in cash and cash equivalents
    
(4,953
)
    
(1,930
)
    
(10,285
)
    
8,147
      
8,345
  
Cash and cash equivalents at beginning of period
    
18,872
      
26,036
      
24,304
      
15,959
      
15,959
  
Cash and cash equivalents at end of period
  
$
14,019
    
$
24,106
    
$
14,019
    
$
24,106
    
$
24,304
  

10

TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
 RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (NON-GAAP) (UNAUDITED)
(In thousands)

   
Three months ended
    
Nine months ended
    
Year ended
  
   
September 30,
    
September 30,
    
December 31,
  
   
2021
    
2020
    
2021
    
2020
    
2020
  
                               
Net income (loss)
  
$
(967
)
  
$
(1,576
)
  
$
(2,862
)
  
$
(3,376
)
  
$
(5,329
)
Adjustments:
                                        
Share in results of equity investment of affiliated companies
    
36
      
62
      
75
      
179
      
185
  
Taxes on income (tax benefit)
    
73
      
(180
)
    
(198
)
    
(48
)
    
(1,517
)
Financial expenses, net
    
257
      
177
      
117
      
250
      
770
  
Depreciation and amortization
    
1,495
      
1,060
      
3,758
      
3,250
      
4,219
  
Restructuring expenses
    
130
      
-
      
2,559
      
-
      
-
  
Exit and disposal activities
    
-
      
-
      
-
      
21
      
805
  
                                         
Discontinued operation (income) loss
    
(40
)
    
120
      
(503
)
    
1,806
      
1,845
  
Share based compensation
    
47
      
33
      
105
      
110
      
138
  
Adjusted EBITDA
  
$
1,031
    
$
(304
)
  
$
3,051
    
$
2,192
    
$
1,116
  


11

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/ Ehud Ben-Yair
Ehud Ben-Yair
Chief Financial Officer

Date: November 4, 2021

12