6-K 1 zk2330235.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 2023

TAT TECHNOLOGIES LTD.
(Name of Registrant)

Hamelacha 5, Netanya 4250540, 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 29, 2023 re TAT Technologies Ltd. Reports Second Quarter 2023 Results.

2
ITEM 1

Press Release
  

TAT Technologies Reports Second Quarter 2023 Results

Netanya, Israel, August 29, 2023 - TAT Technologies Ltd. (NASDAQ: TATT) (“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 six-month period ended June 30, 2023.

Financial highlights for H1 of 2023:
 
•
Revenues for Q2 2023 were $26.8 million, an increase of 29% compared with $20.8 million in Q2 2022.  Revenues for the six-month period that ended on June 30,2023 increased by 28% to $52.02 million compared with $40.7 million in the six-month period that ended on June 30, 2022.

•
Gross profit for Q2 2023 was $5.4 million (20.3% as a percentage of revenues) an increase of 35% compared with $4 million (19.4% as a percentage of revenues) in Q2 2022.  Gross profit for the six-month period that ended on June 30, 2023 was $9.7 million (18.6% as a percentage of revenues) an increase of 36.8% compared with $7 million (17.4% as a percentage of revenues) in the six-month period that ended on June 30, 2022.

•
Adjusted EBITDA for Q2 2023 increased by 291% to $2.57 million compared with $0.9 million in Q2 2022. Adjusted EBITDA for the six-month period that ended on June 30, 2023 increased by 340% to $4.74 million compared with $1.4 million in the six-month period that ended on June 30, 2022.

•
Net lncome in Q2 2023 increased to $1.5 million, or income of $0.15 per diluted share, compared with a net loss of ($0.1) million, or loss of ($0.01) per diluted share, in Q2 2022. For the six-month period that ended on June 30, 2022, net income was $2.1 million, or income of $0.23 per diluted share compared with a net loss of ($1.7) million, or $(0.19) per diluted share in the six-month period that ended on June 30, 2022.

•
Cash flow from operations in Q2 2023 was positive $2.5 million compared to negative ($2.6) million in Q2 2022. For the six-month period ended on June 30, 2023 cash flow from operations was positive $4.2 million compared to negative ($6.4) million in in the six-month period that ended on June 30, 2022.

Mr. Igal Zamir, TAT’s CEO and President commented on the results: “We are excited with the results of the second quarter and the first six month of 2023. TAT continues to improve its revenues, gross margins and profitability. We are enjoying an increase in OEM purchase orders and MRO intake, and with a combination of a positive recovery trend in supply chain and materials availability, both OEM and MRO segments are improving. We continue to grow our APU line of business, a direct result of the Company’s growth strategy, and our operations are focused on increasing capacity and improving efficiency to meet our customers’ growing demand and expectations across all business segments.

Mr. Zamir continued: “we are very optimistic with the expected results for the second half of the year as we see a strong order backlog. We are prepared to implement the second wave of our landing gear contracts with 2 of our strategic customers, which will yield additional revenues towards 2024. Also, we completed our operational preparations to enable us to bid for RFPs to support both the APU 331-500 and APU 131 product lines serving a worldwide fleet of over 17,000 aircrafts.”

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, financial (expenses) income, net, and 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.

4
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

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)

 
June 30,
    
December 31,
  
   
2023
    
2022
  
   
(unaudited)
    
(audited)
  
ASSETS
            
CURRENT ASSETS:
            
Cash and cash equivalents
  
$
10,748
    
$
7,722
  
Accounts receivable, net
    
14,504
      
15,622
  
Inventory, net
    
44,744
      
45,759
  
Other current assets and prepaid expenses
    
5,985
      
6,047
  
                 
Total current assets
    
75,981
      
75,150
  
                 
NON-CURRENT ASSETS:
                
Restricted deposit
    
296
      
304
  
Investment in affiliates
    
1,886
      
1,665
  
Funds in respect of employee rights upon retirement
    
683
      
780
  
Deferred income taxes
    
1,305
      
1,229
  
Intangible assets, net
    
1,665
      
1,623
  
Property, plant and equipment, net
    
42,391
      
43,423
  
Operating lease right of use assets
    
2,119
      
2,477
  
                 
Total non-current assets
    
50,345
      
51,501
  
Total assets
  
$
126,326
    
$
126,651
  
                 
LIABILITIES AND EQUITY
                
                 
CURRENT LIABILITIES:
                
Current maturities of long-term loans
  
$
1,975
    
$
1,876
  
Credit line from bank
    
6,091
      
6,101
  
Accounts payable
    
8,078
      
10,233
  
Accrued expenses and other
    
10,748
      
9,686
  
Operating lease liabilities
    
825
      
904
  
Provision for restructuring plan
    
100
      
190
  
                 
Total current liabilities
    
27,817
      
28,990
  
                 
NON CURRENT LIABILITIES:
                
Long-term loans
    
18,224
      
19,408
  
Liability in respect of employee rights upon retirement
    
1,021
      
1,148
  
Operating lease liabilities
    
1,250
      
1,535
  
                 
Total non-current liabilities
    
20,495
      
22,091
  
Total liabilities
  
$
48,312
    
$
51,081
  
                 
EQUITY:
            
Share capital
    
2,850
      
2,842
  
Additional paid-in capital
    
66,522
      
66,245
  
Treasury stock at cost
    
(2,088
)
    
(2,088
)
Accumulated other comprehensive income (loss)
    
-
      
(26
)
Retained earnings
    
10,730
      
8,597
  
Total shareholders' equity
    
78,014
      
75,570
  
                 
Total liabilities and shareholders' equity
  
$
126,326
    
$
126,651
  

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

   
Three months ended
    
Six months ended
    
Year ended
  
   
June 30,
    
December 31,
  
   
2023
    
2022
    
2023
    
2022
    
2022
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
                               
Revenues:
                              
Products
  
$
8,167
    
$
7,144
    
$
15,458
    
$
13,463
    
$
25,460
  
Services
    
18,637
      
13,631
      
36,564
      
27,267
      
59,096
  
     
26,804
      
20,775
      
52,022
      
40,730
      
84,556
  
                                         
Cost of goods:
                                        
Products
    
5,548
      
5,826
      
11,822
      
11,569
      
21,631
  
Services
    
15,830
      
10,917
      
30,515
      
22,083
      
46,997
  
     
21,378
      
16,743
      
42,337
      
33,652
      
68,628
  
Gross Profit
    
5,426
      
4,032
      
9,685
      
7,078
      
15,928
  
                                         
Operating expenses:
                                        
Research and development, net
    
157
      
180
      
256
      
153
      
479
  
Selling and marketing
    
1,298
      
1,517
      
2,457
      
2,852
      
5,629
  
General and administrative
    
2,474
      
2,494
      
4,933
      
4,879
      
9,970
  
Other income
    
(35
)
    
(9
)
    
(441
)
    
(90
)
    
(90
)
Restructuring expenses
    
-
      
775
      
-
      
1,703
      
1,715
  
     
3,894
      
4,957
      
7,205
      
9,497
      
17,703
  
                                         
Operating Profit (Loss)
    
1,532
      
(925
)
    
2,480
      
(2,419
)
    
(1,775
)
                                         
Interest expenses
    
(440
)
    
(136
)
    
(806
)
    
(240
)
    
(902
)
Other financial income (expenses), Net
    
167
      
645
      
148
      
814
      
1,029
  
Income (loss) before taxes on income (tax benefit)
    
1,259
      
(417
)
    
1,822
      
(1,845
)
    
(1,648
)
                                         
Taxes on income (tax benefit)
    
(63
)
    
(170
)
    
(90
)
    
(63
)
    
98
  
                                         
Income (loss) before share of equity investment
    
1,322
      
(247
)
    
1,912
      
(1,782
)
    
(1,746
)
                                         
Share in profits (losses) of equity investment of affiliated companies
    
153
      
115
      
221
      
88
      
184
  
                                         
Net Income (loss)
  
$
1,475
    
$
(132
)
  
$
2,133
    
$
(1,694
)
  
$
(1,562
)

                                       
Basic and diluted income per share
                              
                               
Net income (loss) per share
  
$
0.16
    
$
(0. 01
)
  
$
0.24
    
$
(0.19
)
  
$
(0.17
)
Net income per diluted shares
  
$
0.15
    
$
(0. 01
)
  
$
0.23
    
$
(0.19
)
  
$
(0.17
)
                                         
Weighted average number of shares outstanding
                                        
Basic
    
8,942,423
      
8,886,546
      
8,942,423
      
8,886,546
      
8,911,546
  
Diluted
    
9,052,163
      
8,886,546
      
9,052,163
      
8,886,546
      
8,911,546
  

7
TAT TECHNOLOGIES AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)

   
Three months ended
    
Six months ended
    
Year ended
  
   
June 30,
    
December 31,
  
   
2023
    
2022
    
2023
    
2022
    
2022
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
                               
Net income (Loss)
  
$
1,475
    
$
(132
)
  
$
2,133
    
$
(1,694
)
  
$
(1,562
)
Other comprehensive income (loss), net (
                                        
Net unrealized income (loss) from derivatives
    
26
      
(116
)
    
26
      
(148
)
    
(89
)
Reclassification adjustments for gains included in net income
    
-
      
-
      
-
      
-
      
30
  
Total comprehensive income (loss)
  
$
1,501
    
$
(248
)
  
$
2,159
    
$
(1,842
)
  
$
(1,621
)

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

   
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, 2020
    
9,149,169
    
$
2,809
    
$
65,711
    
$
128
    
$
(2,088
)
  
$
13,721
    
$
80,281
  
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2021:
                                                        
Comprehensive loss
    
-
      
-
      
-
      
(95
)
    
-
      
(3,562
)
    
(3,657
)
 Share based compensation
    
-
      
-
      
160
      
-
      
-
      
-
      
160
  
BALANCE AT DECEMBER 31, 2021
    
9,149,169
    
$
2,809
    
$
65,871
    
$
33
    
$
(2,088
)
  
$
10,159
    
$
76,784
  
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2022:
                                                        
Comprehensive loss
    
-
      
-
      
-
      
(59
)
    
-
      
(1,562
)
    
(1,621
)
Exercise of option
    
36,850
      
33
      
156
      
-
      
-
      
-
      
189
  
Share based compensation
    
-
      
-
      
218
      
-
      
-
      
-
      
218
  
BALANCE AT DECEMBER 31, 2022
    
9,186,019
    
$
2,842
    
$
66,245
    
$
(26
)
  
$
(2,088
)
  
$
8,597
    
$
75,570
  
CHANGES DURING THE PERIOD ENDED JUNE 30, 2023 (unaudited):
                                                        
Comprehensive profit
    
-
      
-
      
-
      
26
      
-
      
2,133
      
2,159
  
Exercise of option
    
30,877
      
8
      
157
      
-
      
-
      
-
      
165
  
Share based compensation
    
-
      
-
      
120
      
-
      
-
      
-
      
120
  
BALANCE AT JUNE 30, 2023 (unaudited)
    
9,216,896
    
$
2,850
    
$
66,522
    
$
-
    
$
(2,088
)
    
10,730
    
$
78,014
  

9
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,
  
   
2023
    
2022
    
2023
    
2022
    
2022
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
CASH FLOWS FROM OPERATING ACTIVITIES:
                              
Net income (loss)
  
$
1,475
    
$
(132
)
  
$
2,133
    
$
(1,694
)
  
$
(1,562
)
Adjustments to reconcile net income (loss) to net cash provided by (used by) operating activities:
                                        
                                         
Depreciation and amortization
    
901
      
926
      
1,942
      
1,899
      
3,706
  
Loss (gain) from change in fair value of derivatives
    
0
      
(9
)
    
0
      
8
      
8
  
Provision for doubtful accounts
    
(2
)
    
(45
)
    
(5
)
    
(45
)
    
138
  
Share in results of equity investment of affiliated Company
    
(153
)
    
(115
)
    
(221
)
    
(88
)
    
(184
)
Share based compensation
    
30
      
62
      
120
      
111
      
218
  
Non cash finance (income) expense
    
-
      
(777
)
    
(6
)
    
(972
)
    
-
  
Change in operating right of use asset and operating leasing liability
    
-
      
-
      
-
      
-
      
(82
)
Increase (decrease) in provision for restructuring expenses
    
(32
)
    
802
      
(90
)
    
457
      
(467
)
Liability in respect of employee rights upon retirement
    
(47
)
    
(209
)
    
(127
)
    
(326
)
    
(356
)
Capital gain from sale of property, plant and equipment
    
(29
)
    
(9
)
    
(485
)
    
(90
)
    
(90
)
Deferred income taxes, net
    
(98
)
    
(188
)
    
(76
)
    
(81
)
    
23
  
Changes in operating assets and liabilities:
                                        
    Decrease (increase) in trade accounts receivable
    
3,137
      
(451
)
    
1,123
      
(1,346
)
    
(2,659
)
     Decrease (increase) in other current assets and prepaid expenses
    
332
      
(81
)
    
1,537
      
(60
)
    
(1,459
)
Decrease (increase) in inventory
    
(3,248
)
    
(1,143
)
    
(285
)
    
(3,365
)
    
(5,069
)
    Increase (decrease) in trade accounts payable
    
(1,034
)
    
(1,428
)
    
(2,155
)
    
(892
)
    
1,143
  
     Decrease in other long-term liabilities
    
(134
)
    
-
      
(248
)
    
-
      
(902
)
    Increase (decrease) in accrued expenses
    
1,352
      
161
      
1,062
      
119
      
2,727
  
Net cash provided by operating activities
  
$
2,452
    
$
(2,636
)
  
$
4,219
    
$
(6,365
)
  
$
(4,867
)
                                         
CASH FLOWS FROM INVESTING ACTIVITIES:
                                        
Proceeds from sale of property and equipment
    
375
      
9
      
1,935
      
93
      
93
  
Purchase of property and equipment
    
(1,021
)
    
(3,575
)
    
(2,454
)
    
(7,585
)
    
(16,213
)
Cash flows used in investing activities
  
$
(646
)
  
$
(3,566
)
  
$
(519
)
  
$
(7,492
)
  
$
(16,120
)
                                         
 CASH FLOWS FROM FINANCING ACTIVITIES:
                                        
  Repayment of long-term loans
    
(425
)
    
(261
)
    
(847
)
    
(3,261
)
    
(1,071
)
  Proceeds from long-term loans received
    
-
      
1,976
      
-
      
12,480
      
16,680
  
  Exercise of options
    
165
      
-
      
165
      
67
      
189
  
Cash flows provided by financing activities
  
$
(260
)
  
$
1,715
    
$
(682
)
  
$
9,286
    
$
15,798
  
                                         
Net increase (decrease) in cash and restricted cash
    
1546
      
(4,487
)
    
3,018
      
(4,571
)
    
(5,189
)
Cash and cash equivalents and restricted cash at beginning of period
    
9,498
      
13,131
      
8,026
      
13,215
      
13,215
  
Cash and  cash equivalents and  restricted cash at end of period
  
$
11,044
    
$
8,644
    
$
11,044
    
$
8,644
    
$
8,206
  



10

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

   
Three months ended
    
Six months ended
    
Year ended
  
   
June 30,
    
June 30,
    
December 31,
  
   
2023
    
2022
    
2023
    
2022
    
2022
  
                               
Net income (Loss)
  
$
1,475
    
$
(132
)
  
$
2,133
    
$
(1,694
)
  
$
(1,562
)
Adjustments:
                                        
Share in results of equity investment of affiliated companies
    
(153
)
    
(115
)
    
(221
)
    
(88
)
    
(184
)
Taxes on income (tax benefit)
    
(63
)
    
(170
)
    
(90
)
    
(63
)
    
98
  
Financial expenses (income), net
    
272
      
(508
)
    
658
      
(574
)
    
(127
)
Depreciation and amortization
    
1,006
      
974
      
2,140
      
1,998
      
3,878
  
Restructuring expenses
    
-
      
775
      
-
      
1,703
      
1,715
  
Share based compensation
    
30
      
62
      
120
      
111
      
218
  
Adjusted EBITDA
  
$
2,567
    
$
886
    
$
4,740
    
$
1,393
    
$
4,036
  

11
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: August 29, 2023

12