6-K 1 zk2330529.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 2023

TAT TECHNOLOGIES LTD.
(Name of Registrant)

      Hamelacha 5, Netanya 4250407, 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 13, 2023 re TAT Technologies Ltd. Reports Third Quarter 2023 Results.

2
ITEM 1

Press Release
Source: TAT Technologies Limited

TAT Technologies Reports Third Quarter 2023 Results

Netanya , Israel, November 13, 2023 - 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 months and nine months periods ended September 30, 2023.

Financial highlights for third quarter of 2023:

•
Revenues for Q3 2023 were $29.9 million, an increase of 43% compared with $20.9 million in Q3 2022. Revenues for the nine-month period that ended on September 30, 2023, were $81.9 million an increase of 33% compared with $61.7 million in the nine-month period that ended on September 30, 2022

•
Gross profit for Q3 2023 was $5.8 million (19. 3% as a percentage of revenues) an increase of 70% compared with $3.4 million (16.4% as a percentage of revenues) in Q3 2022.  Gross profit for the nine-month period that ended on September 30, 2023, was $15.5 million (19% as a percentage of revenues) an increase of 47.6% compared with $10.5 million (17% as a percentage of revenues) in the nine-month period that ended on September 30, 2022.

•
Adjusted EBITDA for Q3 2023 increased by 438% to $3 million compared with $0.6 million in Q3 2022. Adjusted EBITDA for the nine-month period that ended on September 30, 2023, increased by 297% to $7.7 million compared with $1.9 million in the nine-month period that ended on September 30, 2022.

•
Net lncome in Q3 2023 increased to $2.1 million, or income of $0.24 per diluted share, compared with a net loss of ($0.3) million, or loss of ($0.04) per diluted share, in Q3 2022. For the nine-month period that ended on September 30, 2023, net income was $4.3 million, or income of $0.47 per diluted share compared with a net loss of ($2) million, or $(0.23) per diluted share, in the nine-month period that ended on September 30, 2022.

•
Cash flow from operations in Q3 2023 was negative  ($3.7) million compared to negative ($3.1) million in Q3 2022. For the nine-month period ended on September 30, 2023 cash flow from operations was positive $0.5 million compared to negative ($9.5) million in the nine-month period that ended on September 30, 2022.

Mr. Igal Zamir, TAT's CEO and President commented on the results: "we are very pleased with the results of the third quarter and nine months of 2023. We are facing swift growth in demand for our products and services, which has resulted in increasing revenue and profitability quarter after quarter. We remain positive that the trend will continue for the following quarters to come.

As part of our preparation to support the growth in the following quarters and meeting customers' expectations for a short turnaround time, we focus on operational ramp up including manpower hiring and increasing the level of our available inventories.”
Mr. Zamir continues: " In regard to the war in Israel, at this stage, there are no indications that prohibit us from continuing the growth and meeting our plans for the following quarters to come.

We are very proud of our employees in the Israeli facility for their spirit and consistent effort to continue the operations despite the war in Israel. “

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.

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

4

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,
  
   
2023
    
2022
  
   
(unaudited)
    
(audited)
  
ASSETS
            
CURRENT ASSETS:
            
   Cash and cash equivalents
  
$
7,288
    
$
7,722
  
   Accounts receivable, net
    
17,890
      
15,622
  
   Inventory, net
    
49,005
      
45,759
  
   Other current assets and prepaid expenses
    
5,094
      
6,047
  
                 
Total current assets
    
79,277
      
75,150
  
                 
NON-CURRENT ASSETS:
                
   Restricted deposit
    
286
      
304
  
 Investment in affiliates
    
2,012
      
1,665
  
Funds in respect of employee rights upon retirement
    
661
      
780
  
 Deferred income taxes
    
1,693
      
1,229
  
Intangible assets, net
    
1,608
      
1,623
  
Property, plant and equipment, net
    
41,917
      
43,423
  
Operating lease right of use assets
    
3,022
      
2,477
  
                 
Total non-current assets
    
51,199
      
51,501
  
                 
 Total assets
  
$
130,476
    
$
126,651
  
                 
LIABILITIES AND EQUITY
                
                 
CURRENT LIABILITIES:
                
   Current maturities of long-term loans
  
$
1,874
    
$
1,876
  
   Credit line from bank
    
12,131
      
6,101
  
   Accounts payable
    
8,558
      
10,233
  
   Accrued expenses and other
    
10,889
      
9,686
  
   Operating lease liabilities
    
1,073
      
904
  
   Provision for restructuring plan
    
85
      
190
  
                 
Total current liabilities
    
34,610
      
28,990
  
                 
NON CURRENT LIABILITIES:
                
   Long-term loans
    
12,820
      
19,408
  
   Liability in respect of employee rights upon retirement
    
993
      
1,148
  
   Operating lease liabilities
    
1,904
      
1,535
  
                 
Total non-current liabilities
    
15,717
      
22,091
  
                 
Total liabilities
  
$
50,327
    
$
51,081
  
                 
EQUITY:
                
                 
   Share capital
    
2,850
      
2,842
  
   Additional paid-in capital
    
66,531
      
66,245
  
   Treasury stock at cost
    
(2,088
)
    
(2,088
)
   Accumulated other comprehensive income (loss)
    
(24
)
    
(26
)
   Retained earnings
    
12,880
      
8,597
  
Total shareholders' equity
    
80,149
      
75,570
  
                 
Total liabilities and shareholders' equity
    
130,476
    
$
126,651
  

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,
  
   
2023
    
2022
    
2023
    
2022
    
2022
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
                               
Revenues:
                              
Products
  
$
10,003
    
$
5,694
    
$
25,461
    
$
19,157
    
$
25,460
  
Services
    
19,932
      
15,283
      
56,496
      
42,550
      
59,096
  
     
29,935
      
20,977
      
81,957
      
61,707
      
84,556
  
                                         
Cost of revenue, net:
                                        
Products
    
7,550
      
4,710
      
19,372
      
16,280
      
21,631
  
Services
    
16,571
      
12,833
      
47,086
      
34,915
      
46,997
  
     
24,121
      
17,543
      
66,458
      
51,195
      
68,628
  
Gross Profit
    
5,814
      
3,434
      
15,499
      
10,512
      
15,928
  
                                         
Operating expenses:
                                        
Research and development, net
    
194
      
197
      
450
      
349
      
479
  
Selling and marketing, net
    
1,350
      
1,312
      
3,807
      
4,164
      
5,629
  
General and administrative, net
    
2,547
      
2,463
      
7,482
      
7,341
      
9,970
  
Other income
    
(37
)
    
-
      
(478
)
    
(90
)
    
(90
)
Restructuring expenses, net
    
-
      
(30
)
    
-
      
1,673
      
1,715
  
     
4,054
      
3,942
      
11,261
      
13,437
      
17,703
  
                                         
Operating Profit (Loss)
    
1,760
      
(508
)
    
4,238
      
(2,925
)
    
(1,775
)
                                         
Interest expenses
    
(408
)
    
(283
)
    
(1,214
)
    
(524
)
    
(902
)
Other financial income (expenses), Net
    
283
      
356
      
433
      
1,171
      
1,029
  
Income (loss) before taxes on income (tax benefit)
    
1,635
      
(435
)
    
3,457
      
(2,278
)
    
(1,648
)
                                         
Taxes on income (tax benefit)
    
(390
)
    
(44
)
    
(479
)
    
(107
)
    
98
  
                                         
Income (loss) before share of equity investment
    
2,025
      
(391
)
    
3,936
      
(2,171
)
    
(1,746
)
                                         
Share in profits (losses) of equity investment of affiliated companies
    
126
      
36
      
347
      
124
      
184
  
                                         
Net Income (loss)
    
2,151
    
$
(355
)
  
$
4,283
    
$
(2,047
)
  
$
(1,562
)
                               
Basic and diluted income per share
                              
                               
Net income (loss) per share
  
$
0.24
    
$
(0.04
)
  
$
0.48
    
$
(0.23
)
  
$
(0.17
)
Net income per diluted shares
  
$
0.24
    
$
(0.04
)
  
$
0.47
    
$
(0.23
)
  
$
(0.17
)
                                         
Weighted average number of shares outstanding
                                        
Basic
    
8,929,332
      
8,909,046
      
8,929,332
      
8,909,046
      
8,911,546
  
Diluted
    
9,134,476
      
8,909,046
      
9,134,476
      
8,909,046
      
8,911,546
  

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,
  
   
2023
    
2022
    
2023
    
2022
    
2022
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
                               
Net income (loss)
  
$
2,151
    
$
(355
)
  
$
4,283
    
$
(2,047
)
  
$
(1,562
)
Other comprehensive income (loss), net
                                        
Net unrealized gain (loss) from derivatives
    
(24
)
    
34
      
2
      
(114
)
    
(89
)
Reclassification adjustments for loss (gains) from derivatives included in net income
    
-
      
-
      
-
      
-
      
30
  
       Total comprehensive income (loss)
  
$
2,149
    
$
(321
)
  
$
4,285
    
$
(2,161
)
  
$
(1,621
)

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, 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 SEPTEMBER 30, 2023 (unaudited):
                                                        
Comprehensive income
    
-
      
-
      
-
      
2
      
-
      
4,283
      
4,285
  
Exercise of option
    
32,466
      
8
      
157
      
-
      
-
      
-
      
165
  
Share based compensation
    
-
      
-
      
129
      
-
      
-
      
-
      
129
  
BALANCE AT SEPTEMBER 30, 2023 (unaudited)
    
9,218,485
    
$
2,850
    
$
66,531
    
$
(24
)
  
$
(2,088
)
    
12,880
    
$
80,149
  

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,
  
   
2023
    
2022
    
2023
    
2022
    
2022
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
CASH FLOWS FROM OPERATING ACTIVITIES:
                              
Net income (loss)
  
$
2,151
    
$
(355
)
  
$
4,283
    
$
(2,047
)
  
$
(1,562
)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
                                        
                                         
Depreciation and amortization
    
1,099
      
931
      
3,040
      
2,830
      
3,706
  
Loss (gain) from change in fair value of derivatives
    
-
      
(7
)
    
-
      
1
      
8
  
Change in provision for doubtful accounts
    
(83
)
    
-
      
(88
)
    
(45
)
    
138
  
Share in results of affiliated Company
    
(126
)
    
(36
)
    
(347
)
    
(124
)
    
(184
)
Share based compensation
    
8
      
56
      
129
      
167
      
218
  
Non cash finance income
    
(1
)
    
(4
)
    
(7
)
    
(91
)
    
-
  
Change in operating right of use asset and operating leasing liability
                                    
(82
)
Decrease in provision for restructuring expenses
    
(15
)
    
(914
)
    
(105
)
    
(457
)
    
(467
)
Liability in respect of employee rights upon retirement
    
(28
)
    
9
      
(155
)
    
(317
)
    
(356
)
Capital gain from sale of property, plant and equipment
    
(43
)
    
-
      
(529
)
    
(90
)
    
(90
)
Deferred income taxes, net
    
(388
)
    
(47
)
    
(464
)
    
(128
)
    
23
  
Changes in operating assets and liabilities:
                                        
    Decrease (increase) in trade accounts receivable
    
(4,051
)
    
1,127
      
(2,927
)
    
(219
)
    
(2,659
)
     Decrease (increase)  in other current assets and prepaid expenses
    
(1
)
    
(557
)
    
1,535
      
(672
)
    
(1,459
)
    Increase in inventory
    
(4,450
)
    
(3,485
)
    
(4,734
)
    
(6,711
)
    
(5,069
)
    Increase (decrease) in trade accounts payable
    
480
      
(182
)
    
(1,675
)
    
(1,073
)
    
1,143
  
    Decrease in other long-term liabilities
    
(254
)
    
(160
)
    
(502
)
    
(1,045
)
    
(902
)
    Increase in accrued expenses
    
1,976
      
499
      
3,039
      
531
      
2,727
  
Net cash provided by (used  in) operating activities
  
$
(3,726
)
  
$
(3,125
)
  
$
493
    
$
(9,490
)
  
$
(4,867
)
                                         
CASH FLOWS FROM INVESTING ACTIVITIES:
                                        
Proceeds from sale of property and equipment
    
37
      
-
      
1,972
      
93
      
93
  
Purchase of property and equipment
    
(569
)
    
(3,833
)
    
(3,024
)
    
(11,418
)
    
(16,213
)
Net cash provided by (used in) investing activities
  
$
(532
)
  
$
(3,833
)
  
$
(1,052
)
  
$
(11,325
)
  
$
(16,120
)
                                         
CASH FLOWS FROM FINANCING ACTIVITIES:
                                        
  Short-term credit received (repayment) from banks
    
1,000
      
3,000
      
1,000
      
-
      
-
  
  Proceeds from long-term loans received
    
249
      
3,200
      
249
      
15,680
      
16,680
  
  Repayment of long-term loans
    
(461
)
    
(375
)
    
(1,307
)
    
(636
)
    
(1,071
)
  Exercise of options
    
-
      
123
      
165
      
190
      
189
  
Cash flows provided by (used in) financing activities
  
$
788
    
$
5,948
    
$
107
    
$
15,234
    
$
15,798
  
                                         
Net decrease in cash and restricted cash
    
(3,470
)
    
(1,010
)
    
(452
)
    
(5,581
)
    
(5,189
)
Cash and cash equivalents and restricted cash at beginning of period
    
11,044
      
8,644
      
8,026
      
13,215
      
13,215
  
Cash and cash equivalents and restricted cash at end of period
  
$
7,574
    
$
7,634
    
$
7,574
    
$
7,634
    
$
8,026
  

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,
  
   
2023
    
2022
    
2023
    
2022
    
2022
  
                               
Net income (loss)
  
$
2,151
    
$
(355
)
  
$
4,283
    
$
(2,047
)
  
$
(1,562
)
Adjustments:
                                        
                                         
Share in results of equity investment of affiliated companies
    
(126
)
    
(36
)
    
(347
)
    
(124
)
    
(184
)
Taxes on income (tax benefit)
    
(390
)
    
(44
)
    
(480
)
    
(107
)
    
98
  
Financial expenses (income), net
    
125
      
(73
)
    
781
      
(647
)
    
(127
)
Depreciation and amortization
    
1,240
      
1,041
      
3,381
      
3,037
      
3,878
  
Restructuring (income) expenses
    
-
      
(30
)
    
-
      
1,673
      
1,715
  
Share based compensation
    
9
      
56
      
129
      
167
      
218
  
Adjusted EBITDA
    
3,009
    
$
559
      
7,747
    
$
1,952
    
$
4,036
  

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 13, 2023

12