6-K 1 zk2431952.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 2024

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 28, 2024 re TAT Technologies Ltd. Reports Second Quarter 2024 Results.

2

ITEM 1

Press Release
 

TAT Technologies Reports Second Quarter 2024 Results

Netanya, Israel, August 28, 2024 - TAT Technologies Ltd. (NASDAQ and TASE: 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 six-month period ended June 30, 2024.

Financial highlights for the second quarter of 2024:
 
Revenues increased by 36.2% to $36.5 million compared to $26.8 million for the second quarter of 2024. For the first half of 2024 revenues increased by 36% to 70.6$ million compared to $52 million in the first half of 2023.
Gross profit increased by 47.1% to $8 million compared to $5.4 million for the second quarter of 2023 (21.9% of revenues in Q2\24 compared to 20.2% of revenues in Q2\23). For the first half of 2024 gross profit increase by 55.4% to $15.1 million compared to $9.7 million in the first half of 2023 (20.9% of revenues in H1\24 compared to 18.6% of revenues in H1\23)
Operating Income increased by 78.5% to $2.7 million compared to $1.5 million in Q2\23, (7.5% of revenues in Q2\24 compared to 6.5% of revenues in Q2\23). For the first half of 2024 operating income increased by 99% to $4.9 million compared to $2.5 million in the first half of 2023 (7% of revenues in H1\24 compared to 4.8% of revenues in H1\23).
Net Income increased by 78% to $2.6 million compared to $1.5 million in the second quarter of 2023. For the first half of 2024 net income increased by 122% to 4.7$ million compared to $2.1 million in the first half of 2023.
Adjusted EBITDA increased by 69.4% to $4.3 million (11.9% of revenues) compared to $2.6 million (9.6% of revenues) in the second quarter of 2023. Adjusted EBITDA for the first half of 2024 increased by 73% to $8 million compared $4.6 in the first half of 2023 (11.4% of revenues in H1\24 compared to 9% in H1\23).
Cash flow from operating activities was negative $(4.1) million compared to positive cash flow of $2.45 million in the second half of 2023 2023. Cash flow from operating activities for the first half of 2024 was negative $(7.65) million compared to positive cash flow of $4.22 million in the first half of 2023.

Mr. Igal Zamir, TAT’s CEO and President commented: “We are very proud to report another record quarter marked by revenue growth, margin expansion, and profitability improvement. Our results demonstrate increasing demand for our products and services, which are aligned with our growth strategy. This was the seventh consecutive quarter of growth in revenue and EBITDA, and given our growing momentum and backlog, we expect this trend to continue.”

“During the second quarter, we secured orders of more than $40 million, resulting in a record backlog and LTA Value of over $414 million,” continued Mr. Zamir. “These new orders give us significant visibility into revenue potential over the coming quarters and bolster our confidence in continued success. On top of the continued revenue growth, we invest efforts in improving our operational efficiency and cost structure. This resulted in an improved Gross Margin and EBITDA margin.
3

During the first six months of 2024 we started serving APU of the newly certified 131 and 331-500 which serves a fleet of close to 20,000 aircraft (with a total addressable annual market of about $2 Billion). The revenue obtained during the first half of 2024 is mainly driven from TAT’s historical products and services. The revenue from these new engines’ capabilities is yet insignificant. We are very excited about our future revenue growth and profits, as we start leveraging the potential of this new market. We will continue to expand our customer base for those engines MRO services according to our growth strategy”

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 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. Eran Yunger
Director of IR
erany@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, [LTAs] and backlog, the price and continuity of supply of component parts used in our operations, 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. Shareholders 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)

 
Jun 30,
   
December 31,
 
   
2024
   
2023
 
   
(unaudited)
   
(audited)
 
ASSETS
           
CURRENT ASSETS:
           
Cash and cash equivalents
 
$
8,058
   
$
15,979
 
Accounts receivable, net of allowance for credit losses of $305
   and $345 thousand as of Jun 30, 2024 and December 31, 2023 respectively
   
26,197
     
20,009
 
Restricted deposit
   
-
     
661
 
Other current assets and prepaid expenses
   
6,722
     
6,397
 
                 
Inventory
   
56,763
     
51,280
 
                 
Total current assets
   
97,740
     
94,326
 
                 
NON-CURRENT ASSETS:
               
Restricted deposit
   
294
     
302
 
Investment in affiliates
   
2,763
     
2,168
 
Funds in respect of employee rights upon retirement
   
644
     
664
 
 Deferred income taxes
   
1,097
     
994
 
Property, plant and equipment, net
   
40,934
     
42,554
 
Operating lease right of use assets
   
2,656
     
2,746
 
Intangible assets, net
   
1,687
     
1,823
 
                 
Total non-current assets
   
50,075
     
51,251
 
Total assets
 
$
147,815
   
$
145,577
 
                 
LIABILITIES AND EQUITY
               
                 
CURRENT LIABILITIES:
               
Current maturities of long-term loans
 
$
1,937
   
$
2,200
 
Short term loans
   
12,547
     
12,138
 
Accounts payable
   
9,079
     
9,988
 
Accrued expenses
   
12,907
     
13,952
 
Operating lease liabilities
   
1,155
     
1,033
 
 
               
Total current liabilities
   
37,625
     
39,311
 
                 
NON CURRENT LIABILITIES:
               
Long-term loans
   
11,970
     
12,886
 
Liability in respect of employee rights upon retirement
   
998
     
1,000
 
Operating lease liabilities
   
1,486
     
1,697
 
                 
Total non-current liabilities
   
14,454
     
15,583
 
Total liabilities
 
$
52,079
   
$
54,894
 

EQUITY:
           
Share capital
   
3,152
     
3,140
 
Translation reserves
   
164
     
-
 
Additional paid-in capital
   
76,512
     
76,335
 
Treasury shares at cost
   
(2,088
)
   
(2,088
)
Accumulated other comprehensive income
           
27
 
Retained earnings
   
17,996
     
13,269
 
Total shareholders' equity
   
95,736
     
90,683
 
                 
Total liabilities and shareholders' equity
  $
147,815
   
$
145,577
 

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,
 
   
2024
   
2023
   
2024
   
2023
   
2023
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
Revenues:
                             
Products
 
$
11,732
   
$
8,167
   
$
23,667
   
$
15,458
   
$
35,241
 
Services
   
24,793
     
18,637
     
46,946
     
36,564
     
78,553
 
     
36,525
     
26,804
     
70,613
     
52,022
     
113,794
 
                                         
Cost of goods:
                                       
Products
   
7,673
     
5,548
     
16,659
     
11,822
     
30,517
 
Services
   
20,868
     
15,830
     
38,904
     
30,515
     
60,809
 
     
28,541
     
21,378
     
55,563
     
42,337
     
91,326
 
Gross Profit
   
7,984
     
5,426
     
15,050
     
9,685
     
22,468
 
                                         
Operating expenses:
                                       
Research and development, net
   
343
     
157
     
620
     
256
     
715
 
Selling and marketing
   
1,993
     
1,298
     
3,653
     
2,457
     
5,523
 
General and administrative
   
2,916
     
2,474
     
6,225
     
4,933
     
10,588
 
Other income
   
(2
)
   
(35
)
   
(390
)
   
(441
)
   
(433
)
     
5,250
     
3,894
     
10,108
     
7,205
     
16,393
 
                                         
Operating income (Loss)
   
2,734
     
1,532
     
4,942
     
2,480
     
6,075
 
                                         
Interest expenses
   
(413
)
   
(440
)
   
(763
)
   
(806
)
   
(1,683
)
Other financial income (expenses), Net
   
106
     
167
     
7
     
148
     
353
 
Income before taxes on income (tax benefit)
   
2,427
     
1,259
     
4,186
     
1,822
     
4,745
 
                                         
Taxes on income (tax benefit)
   
44
     
(63
)
   
(109
)
   
(90
)
   
576
 
                                         
Income before share of equity investment
   
2,383
     
1,322
     
4,295
     
1,912
     
4,169
 
                                         
Profit of equity investment of affiliated companies
   
234
     
153
     
432
     
221
     
503
 
                                         
Net Income
 
$
2,617
   
$
1,475
   
$
4,727
   
$
2,133
   
$
4,672
 

Basic and diluted income per share
                             
                               
Net income per share
 
$
0.26
   
$
0.16
   
$
0.46
   
$
0.24
   
$
0.52
 
Net income per diluted shares
 
$
0.25
   
$
0.15
   
$
0.44
   
$
0.23
   
$
0.51
 
                                         
Weighted average number of shares outstanding
                                       
Basic
   
10,394,654
     
8,942,423
     
10,386,859
     
8,942,423
     
8,961,689
 
Diluted
   
10,561,420
     
9,052,163
     
10,722,153
     
9,052,163
     
9,084,022
 

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,
 
   
2024
   
2023
   
2024
   
2023
   
2023
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
Net income
 
$
2,617
   
$
1,475
   
$
4,727
   
$
2,133
   
$
4,672
 
Other comprehensive income , net
                                       
Change in foreign currency translation adjustments
   
164
     
-
     
164
     
-
     
-
 
Net unrealized income from derivatives
   
-
     
26
     
(27
)
   
26
     
53
 
Total comprehensive income
   
2,781
   
$
1,501
   
$
4,864
   
$
2,159
   
$
4,725
 

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
   
Translation reserves
   
other comprehensive income (loss)
   
Treasury shares
   
Retained earnings
   
Total equity
 
                                                 
BALANCE AT DECEMBER 31, 2022
   
9,186,019
   
$
2,842
   
$
66,245
     
-
   
$
(26
)
 
$
(2,088
)
 
$
8,597
   
$
75,570
 
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2023:
                                                               
Comprehensive loss
   
-
     
-
     
-
             
53
     
-
     
4,672
     
4,725
 
Exercise of option
   
32,466
     
8
     
157
             
-
     
-
     
-
     
165
 
Issuance of common shares net of issuance costs of $141  thousands
   
1,158,600
     
290
     
9,774
             
-
     
-
     
-
     
10,064
 
Share based compensation
   
-
     
-
     
159
             
-
     
-
     
-
     
159
 
BALANCE AT DECEMBER 31, 2023
   
10,377,085
   
$
3,140
   
$
76,335
     
-
   
$
27
   
$
(2,088
)
 
$
13,269
   
$
90,683
 
CHANGES DURING THE PERIOD ENDED JUN 31, 2024 (unaudited):
                                                               
Comprehensive profit
                           
164
     
(27
)
   
-
     
4,727
     
4,864
 
Exercise of option
   
49,109
     
12
     
(12
)
                   
-
             
-
 
Change in foreign currency translation adjustments
                                           
-
                 
Share based compensation
                   
189
                                     
189
 
BALANCE AT JUN 30, 2024 (unaudited)
   
10,426,194
     
3,152
     
76,512
     
164
     
-
     
(2,088
)
   
17,996
     
95,736
 

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,
 
   
2024
   
2023
   
2024
   
2023
   
2023
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
CASH FLOWS FROM OPERATING ACTIVITIES:
                             
Net income
 
$
2,617
   
$
1,475
   
$
4,727
   
$
2,133
   
$
4,672
 
Adjustments to reconcile net income (loss) to net cash provided by (used by) operating activities:
                                       
                                         
Depreciation and amortization
   
1,431
     
901
     
2,805
     
1,942
     
4,710
 
Loss (gain) from change in fair value of derivatives
   
-
     
-
     
22
     
-
     
(9
)
Change in funds in respect of employee rights upon retirement
   
15
     
(27
)
   
20
     
(97
)
   
116
 
Change in operating right of use asset and operating leasing liability
   
(3
)
   
-
     
1
     
(6
)
   
22
 
Non-cash financial expenses
   
(274
)
   
(134
)
   
(488
)
   
(248
)
   
(172
)
Decrease in restructuring plan provision
   
(43
)
   
(32
)
   
(63
)
   
(90
)
   
(126
)
Change in allowance for credit losses
   
40
     
(2
)
   
40
     
(5
)
   
(182
)
Share in results of affiliated companies
   
(233
)
   
(153
)
   
(431
)
   
(221
)
   
(503
)
Share based compensation
   
148
     
30
     
189
     
120
     
159
 
Liability in respect of employee rights upon retirement
   
(5
)
   
(47
)
   
(2
)
   
(127
)
   
(148
)
Capital gain from sale of property, plant and equipment
   
(1
)
   
(29
)
   
(355
)
   
(485
)
   
(530
)
Deferred income taxes, net
   
306
     
(98
)
   
(103
)
   
(76
)
   
235
 
Changes in operating assets and liabilities:
                                       
     Decrease (increase) in trade accounts receivable
   
(5,430
)
   
3,137
     
(6,250
)
   
1,123
     
(4,205
)
    Decrease (increase) in other current assets and prepaid expenses
   
(144
)
   
359
     
(325
)
   
1,634
     
(341
)
        Increase in inventory
   
(2,906
)
   
(3,248
)
   
(5,543
)
   
(285
)
   
(5,400
)
    Decrease in trade accounts payable
   
(209
)
   
(1,034
)
   
(909
)
   
(2,155
)
   
(245
)
    Increase (decrease) in accrued expenses and other
   
591
     
1,352
     
(982
)
   
1,062
     
4,202
 
Net cash provided by (used in) operating activities from continued operation
 
$
(4,100
)
 
$
2,450
     
(7,647
)
 
$
4,219
   
$
2,255
 
                                         
CASH FLOWS FROM INVESTING ACTIVITIES:
                                       
Proceeds from sale of property and equipment
   
-
     
375
     
1,306
     
1,935
     
2,002
 
Purchase of property and equipment
   
(978
)
   
(1,021
)
   
(1,967
)
   
(2,454
)
   
(5,102
)
Purchase of intangible assets
   
-
     
-
     
-
     
-
     
(479
)
Cash flows used in investing activities
 
$
(978
)
 
$
(646
)
 
$
(661
)
 
$
(519
)
 
$
(3,579
)
                                         
CASH FLOWS FROM FINANCING ACTIVITIES:
                                       
Repayments of long-term loans
   
(510
)
   
(425
)
   
(950
)
   
(847
)
   
(1,701
)
Short-term credit received from banks
   
4,668
             
668
             
1,000
 
Proceeds from long-term loans received
           
-
             
-
     
712
 
Issuance of common shares
   
12
     
-
     
12
     
-
     
-
 
Proceeds from issuance of common shares, net
   
-
     
-
     
-
     
-
     
10,064
 
Exercise of options
   
(13
)
   
165
     
(12
)
   
165
     
165
 
Cash flows provided by (used in) financing activities
 
$
4,157
   
$
(260
)
 
$
(282
)
 
$
(682
)
 
$
10,240
 
                                         
Net increase (decrease) in cash and cash equivalents and restricted cash
   
(921
)
   
1,546
     
(8,590
)
   
3,018
     
8,916
 
Cash and cash equivalents and restricted cash at beginning of period
   
9,273
     
9,498
     
16,942
     
8,026
     
8,026
 
Cash and cash equivalents and restricted cash at the end of period
   
8,352
     
11,044
     
8,352
     
11,044
     
16,942
 
                                         
SUPPLEMENTARY INFORMATION ON INVESTING ACTIVITIES NOT INVOLVING CASH FLOW:
                                       
                                         
Additions of operating lease right-of-use assets and operating lease liabilities
   
245
     
-
     
590
     
-
     
1,345
 
Reclassification of inventory to property, plant and equipment
   
-
     
-
     
60
     
-
     
68
 
Supplemental disclosure of cash flow information:
                                       
                                         
Interest paid
   
(410
)
   
(267
)
   
(852
)
   
(512
)
   
(1,438
)

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,
 
   
2024
   
2023
   
2024
   
2023
   
2023
 
                               
Net income (Loss)
 
$
2,617
   
$
1,475
   
$
4,727
   
$
2,133
   
$
4,672
 
Adjustments:
                                       
Share in results and sale of equity investment of affiliated companies
   
(234
)
   
(153
)
   
(432
)
   
(221
)
   
(503
)
Taxes on income (tax benefit)
   
44
     
(63
)
   
(109
)
   
(90
)
   
576
 
Financial expenses (income), net
   
306
     
272
     
755
     
658
     
1,330
 
Depreciation and amortization
   
1,468
     
1,006
     
2,898
     
2,140
     
4,902
 
Share based compensation
   
148
     
30
     
189
     
120
     
159
 
Adjusted EBITDA
 
$
4,349
   
$
2,567
   
$
8,028
   
$
4,740
   
$
11,136
 

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: August 28, 2024

12