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