Eltek Ltd 6-K, filed Apr 27, 2020
Eltek Ltd (ELTK)
6-K
2020-04-27
For: 2020-04-27
View Original
Added on
July 04, 2026
About this 6-K
Eltek Ltd filed this 6-K on April 27, 2020.
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 April 2020
Commission file number 000-28884
Eltek Ltd.
(Name of Registrant)
Sgoola Industrial Zone, Petach Tikva, 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): ☐
This Form 6-K is being incorporated by reference into the Registrant’s Form S-8 Registration Statements File Nos.
333-123559 and 333-130611.
Eltek Ltd.
EXPLANATORY NOTE
The following exhibit is attached:
99.1 Announcement: Eltek
Reports Full Year and Fourth Quarter 2019 Financial Results.
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.
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ELTEK LTD.
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|||
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(Registrant)
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|||
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By:
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/s/ Alon Mualem
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Alon Mualem
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|||
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Chief Financial Officer
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|||
Date: April 27, 2020
EXHIBIT INDEX
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EXHIBIT NO.
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DESCRIPTION
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Exhibit 99.1
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Press Release
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Eltek Reports Full Year and Fourth Quarter 2019 Financial Results
| • |
Revenues of $34.8 million in 2019 compared to $33.9 million in 2018
|
| • |
Net profit of $1.8 million in 2019 compared to a net loss of $2.6 million in 2018
|
| • |
Revenues of $8.6 million in the fourth quarter of 2019 compared to $7.8 million in the fourth quarter of 2018
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| • |
Net profit of $370,000 in the fourth quarter of 2019 compared to a net loss of $631,000 in the fourth quarter of 2018
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PETACH-TIKVA, Israel, April 27, 2020 - Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards, announced
today its financial results for the full year and fourth quarter ended December 31, 2019.
Mr. Eli Yaffe, Chief Executive Officer, commented: "We are pleased with the growth in our revenues and profitability in the fourth quarter and the
significant change in our full year results. The improved results reflect the implementation of our previously announced turnaround plan.”
"The outbreak and spread of the Coronavirus has created new operational and business challenges that we are dealing with. We see both additional risks and opportunities in this new environment,”
concluded Mr. Yaffe.
Highlights of the Full Year of 2019 compared to the Full Year of 2018
| • |
Revenues for the full year of 2019 amounted to $34.8 million compared to revenues of $33.9 million in 2018.
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| • |
Gross profit was $6.0 million (17.3% of revenues) in 2019 compared to gross profit of $2.6 million (7.7% of revenues) in 2018.
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| • |
Operating profit was $1.4 million in 2019 compared to an operating loss of $2.1 million in 2018.
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| • |
Net profit was $1.8 million or $0.48 per fully diluted share in 2019, compared to a net loss of $2.6 million or $1.28 per fully diluted share in 2018.
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| • |
EBITDA was $3.8 million in 2019 compared to negative EBITDA of $420,000 in 2018.
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| • |
Net cash provided by operating activities amounted to $2.6 million in 2019 compared to $813,000 used in operating activities in 2018.
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| • |
Cash and cash equivalents as of December 31, 2019 were $1.6 million compared to $992,000 as of December 31, 2018.
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Highlights of the Fourth Quarter of 2019 compared to the Fourth Quarter of 2018
| • |
Revenues for the fourth quarter of 2019 were $8.6 million compared to revenues of $7.8 million in the fourth quarter of 2018.
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| • |
Gross profit was $1.5 million (17.0% of revenues) in the fourth quarter of 2019 compared to a gross profit of $603,000 (7.7% of revenues) in the fourth quarter of 2018.
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| • |
Operating profit was $379,000 in the fourth quarter of 2019 compared to an operating loss of $416,000 in the fourth quarter of 2018.
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| • |
Net profit was $370,000 or $0.08 per fully diluted share in the fourth quarter of 2019 compared to a net loss of $631,000 or $0.31 per fully diluted share in the fourth quarter of 2018.
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| • |
EBITDA was $817,000 in the fourth quarter of 2019 compared to negative EBITDA of $43,000 in the fourth quarter of 2018.
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| • |
Net cash used in operating activities amounted to $141,000 in the fourth quarter of 2019 compared to $136,000 of cash provided from operating activities in the fourth quarter of 2018.
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Use of Non-GAAP Financial Information
The Company reports financial results in accordance with U.S. GAAP and herein provides some non-GAAP measures, including EBITDA. These non-GAAP measures are not in accordance with, nor are they a
substitute for, GAAP measures. These non-GAAP measures are intended to supplement the Company’s presentation of its financial results that are prepared in accordance with GAAP. The Company uses the non-GAAP measures presented to evaluate and
manage the Company’s operations internally. The Company is also providing this information to assist investors in performing additional financial analysis. Reconciliation between the company's results on a GAAP and non-GAAP basis is provided in a
table below.
Conference Call
Eltek will conduct a conference call to discuss the results today, Monday, April 27, 2019, at 8:30 a.m. Eastern Time. The call will feature remarks by Eli Yaffe, Chief
Executive Officer and Alon Mualem, Chief Financial Officer.
To participate, please call the following teleconference numbers. Please allow for additional time to connect prior to the call:
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United States:
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1-888-668-9141
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Israel:
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03-9180609
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International:
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+972-3-9180609
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At:
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8:30 a.m. Eastern Time
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5:30 a.m. Pacific Time
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15:30 p.m. Israel Time
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A replay of the call will be available through the Investor Info section on Eltek’s corporate website at http://www.nisteceltek.com approximately 24 hours after the
conference call is completed and will be archived for 30 days.
About Eltek
Eltek – "Innovation Across the Board", is a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs), and is the Israeli leader in this
industry. PCBs are the core circuitry of most electronic devices. Eltek specializes in the manufacture and supply of complex and high quality PCBs, HDI, multilayered and flex-rigid boards for the high-end market. Eltek is ITAR compliant and has
AS-9100 and NADCAP Electronics certifications. Its customers include leading companies in the defense, aerospace and medical industries in Israel, the United States, Europe and Asia.
Eltek, which was founded in 1970, has its headquarters in Israel Eltek also operates through its subsidiaries in North America and in Europe and by agents and distributors in Europe, India, South
Africa and South America.
For more information, visit Eltek's web site at www.nisteceltek.com.
Forward Looking Statement:
Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties including, but not limited to statements regarding expected results
in future quarters, the impact of the Coronavirus on the economy and our operations, risks in product and technology development and rapid technological change, product demand, the impact of competitive products and pricing, market acceptance,
the sales cycle, changing economic conditions and other risk factors detailed in the Company's Annual Report on Form 20-F and other filings with the United States Securities and Exchange Commission.
Investor Contact:
Alon Mualem
Chief Financial Officer
alonm@nisteceltek.com
Chief Financial Officer
alonm@nisteceltek.com
+972-3-9395023
(Tables follow)
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Eltek Ltd.
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Consolidated Statements of Operations
|
|
(In thousands US$, except per share data)
|
|
Three months ended
|
Twelve months ended
|
|||||||||||||||
|
December 31,
|
December 31,
|
|||||||||||||||
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2019
|
2018
|
2019
|
2018
|
|||||||||||||
|
Revenues
|
8,582
|
7,827
|
34,794
|
33,939
|
||||||||||||
|
Costs of revenues
|
(7,124
|
)
|
(7,224
|
)
|
(28,787
|
)
|
(31,342
|
)
|
||||||||
|
Gross profit
|
1,458
|
603
|
6,007
|
2,597
|
||||||||||||
|
Selling, general and administrative expenses
|
(1,063
|
)
|
(1,022
|
)
|
(4,604
|
)
|
(4,669
|
)
|
||||||||
|
R&D expenses, net
|
(16
|
)
|
3
|
(16
|
)
|
-
|
||||||||||
|
Operating profit (loss)
|
379
|
(416
|
)
|
1,387
|
(2,072
|
)
|
||||||||||
|
Financial expenses, net
|
(32
|
)
|
(211
|
)
|
(440
|
)
|
(475
|
)
|
||||||||
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Other income, net
|
48
|
3
|
923
|
3
|
||||||||||||
|
Profit (loss) before income tax
|
395
|
(624
|
)
|
1,870
|
(2,544
|
)
|
||||||||||
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Tax expenses
|
(25
|
)
|
(7
|
)
|
(77
|
)
|
(63
|
)
|
||||||||
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Net Profit (loss)
|
370
|
(631
|
)
|
1,793
|
(2,607
|
)
|
||||||||||
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Earnings per share
|
||||||||||||||||
|
Basic and diluted net profit (loss) per ordinary share
|
0.08
|
(0.31
|
)
|
0.48
|
(1.28
|
)
|
||||||||||
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Weighted average number of ordinary shares
|
||||||||||||||||
|
used to compute basic and diluted net profit (loss)
|
||||||||||||||||
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per ordinary share (in thousands)
|
4,380
|
2,029
|
3,734
|
2,029
|
||||||||||||
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Eltek Ltd.
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Consolidated Balance Sheets
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(In thousands US$)
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December 31,
|
December 31,
|
|||||||
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2019
|
2018
|
|||||||
|
Assets
|
||||||||
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Current assets
|
||||||||
|
Cash and cash equivalents
|
1,628
|
992
|
||||||
|
Receivables: Trade, net of provision for doubtful accounts
|
7,480
|
5,682
|
||||||
|
Other
|
145
|
868
|
||||||
|
Inventories
|
3,735
|
3,611
|
||||||
|
Prepaid expenses
|
530
|
292
|
||||||
|
Total current assets
|
13,518
|
11,445
|
||||||
|
Long term assets
|
||||||||
|
Severance pay fund
|
60
|
53
|
||||||
|
Long term prepaid expenses
|
-
|
39
|
||||||
|
Operating lease right of use assets
|
2,490
|
-
|
||||||
|
Total long term assets
|
2,550
|
92
|
||||||
|
Fixed assets, less accumulated depreciation
|
6,761
|
6,623
|
||||||
|
Total Assets
|
22,829
|
18,160
|
||||||
|
Liabilities and Shareholder's equity
|
||||||||
|
Current liabilities
|
||||||||
|
Short-term credit and current maturities of long-term debts
|
2,120
|
6,606
|
||||||
|
Short-term credit from related party
|
3,472
|
2,668
|
||||||
|
Accounts payable: Trade
|
4,673
|
4,108
|
||||||
|
Other
|
3,118
|
3,377
|
||||||
|
Short-term operating lease liabilities
|
1,383
|
-
|
||||||
|
Total current liabilities
|
14,766
|
16,759
|
||||||
|
Long-term liabilities
|
||||||||
|
Long term debt, excluding current maturities
|
387
|
308
|
||||||
|
Employee severance benefits
|
268
|
211
|
||||||
|
Deferred tax liabilities
|
45
|
-
|
||||||
|
Long-term operating lease liabilities
|
1,094
|
-
|
||||||
|
Total long-term liabilities
|
1,794
|
519
|
||||||
|
Equity
|
||||||||
|
Ordinary shares, NIS 3.0 par value authorized 10,000,000 shares, issued and outstanding 4,380,268 and 2,028,552 at December 31, 2019 and December 31, 2018, respectively
|
3,964
|
1,985
|
||||||
|
Additional paid-in capital
|
18,583
|
17,270
|
||||||
|
Cumulative foreign currency translation adjustments
|
2,479
|
2,340
|
||||||
|
Capital reserve
|
963
|
800
|
||||||
|
Accumulated deficit
|
(19,720
|
)
|
(21,513
|
)
|
||||
|
Shareholders' equity
|
6,269
|
882
|
||||||
|
Total liabilities and shareholders' equity
|
22,829
|
18,160
|
||||||
|
Eltek Ltd.
|
|
|
Unaudited Non-GAAP EBITDA Reconciliations
|
|
|
(In thousands US$)
|
|
Non-GAAP EBITDA Reconciliations
|
Three months ended
|
Twelve months ended
|
||||||||||||||
|
December 31,
|
December 31,
|
|||||||||||||||
|
2019
|
2018
|
2019
|
2018
|
|||||||||||||
|
GAAP net Income (loss)
|
370
|
(631
|
)
|
1,793
|
(2,607
|
)
|
||||||||||
|
Add back items:
|
||||||||||||||||
|
Financial expenses, net
|
32
|
211
|
440
|
475
|
||||||||||||
|
Income tax expense
|
25
|
7
|
77
|
63
|
||||||||||||
|
Depreciation and amortization
|
390
|
370
|
1,508
|
1,649
|
||||||||||||
|
Non-GAAP EBITDA
|
817
|
(43
|
)
|
3,818
|
(420
|
)
|
||||||||||
|
Eltek Ltd.
|
|
Consolidated Statement of Cash flow
|
|
(In thousands US$)
|
|
Three months ended
|
Twelve months ended
|
|||||||||||||||
|
December 31,
|
December 31,
|
|||||||||||||||
|
2019
|
2018
|
2019
|
2018
|
|||||||||||||
|
Cash flows from operating activities:
|
||||||||||||||||
|
Net Income (loss)
|
370
|
(631
|
)
|
1,793
|
(2,607
|
)
|
||||||||||
|
Adjustments to reconcile net loss to net
|
||||||||||||||||
|
cash flows provided by operating activities:
|
||||||||||||||||
|
Depreciation and amortization
|
390
|
367
|
1,508
|
1,649
|
||||||||||||
|
Capital loss on disposal of fixed assets, net
|
-
|
101
|
-
|
101
|
||||||||||||
|
Stock-based compensation
|
53
|
56
|
141
|
56
|
||||||||||||
|
Transaction with controlling shareholder
|
(22
|
)
|
49
|
22
|
49
|
|||||||||||
|
Revaluation of long term loans
|
(2
|
)
|
6
|
(38
|
)
|
29
|
||||||||||
|
Increase in deferred tax liabilities
|
45
|
-
|
45
|
-
|
||||||||||||
|
464
|
579
|
1,678
|
1,884
|
|||||||||||||
|
Decrease (Increase) in operating lease right-of-use assets
|
8
|
-
|
(3
|
)
|
-
|
|||||||||||
|
Decrease (increase) in trade receivables
|
(565
|
)
|
1,264
|
(1,277
|
)
|
790
|
||||||||||
|
Decrease (Increase) in other receivables and prepaid expenses
|
(58
|
)
|
155
|
598
|
467
|
|||||||||||
|
Decrease (increase) in inventories
|
77
|
631
|
175
|
(30
|
)
|
|||||||||||
|
Increase (decrease) in trade payables
|
15
|
(1,518
|
)
|
107
|
(871
|
)
|
||||||||||
|
Decrease in other liabilities and accrued expenses
|
(473
|
)
|
(309
|
)
|
(529
|
)
|
(443
|
)
|
||||||||
|
Increase (decrease) in employee severance benefits, net
|
21
|
(35
|
)
|
36
|
(3
|
)
|
||||||||||
|
(975
|
)
|
188
|
(893
|
)
|
(90
|
)
|
||||||||||
|
Net cash provided by (used in) operating activities
|
(141
|
)
|
136
|
2,578
|
(813
|
)
|
||||||||||
|
Cash flows from investing activities:
|
||||||||||||||||
|
Purchase of fixed assets
|
(263
|
)
|
(425
|
)
|
(806
|
)
|
(619
|
)
|
||||||||
|
Net cash used in investing activities
|
(263
|
)
|
(425
|
)
|
(806
|
)
|
(619
|
)
|
||||||||
|
Cash flows from financing activities:
|
||||||||||||||||
|
Short- term bank credit, net
|
135
|
30
|
(4,181
|
)
|
986
|
|||||||||||
|
Short- term shareholder loan
|
2
|
(40
|
)
|
561
|
1,390
|
|||||||||||
|
Issuance of ordinary shares in rights offering, net
|
-
|
-
|
3,298
|
-
|
||||||||||||
|
Repayment of long-term loans from bank
|
(216
|
)
|
(220
|
)
|
(891
|
)
|
(910
|
)
|
||||||||
|
Proceeds from long-term loans
|
(0
|
)
|
377
|
558
|
378
|
|||||||||||
|
Repayment of credit from fixed asset payables
|
(188
|
)
|
(83
|
)
|
(477
|
)
|
(317
|
)
|
||||||||
|
Net cash provided by (used in) financing activities
|
(267
|
)
|
64
|
(1,132
|
)
|
1,527
|
||||||||||
|
Effect of translation adjustments
|
11
|
15
|
(4
|
)
|
10
|
|||||||||||
|
Net increase (decrease) in cash and cash equivalents
|
(660
|
)
|
(210
|
)
|
636
|
105
|
||||||||||
|
Cash and cash equivalents at beginning of the period
|
2,288
|
1,202
|
992
|
887
|
||||||||||||
|
Cash and cash equivalents at period end
|
1,628
|
992
|
1,628
|
992
|
||||||||||||