Eltek Ltd 6-K, filed Mar 23, 2022
Eltek Ltd (ELTK)
6-K
2022-03-23
For: 2022-03-23
View Original
Added on
July 04, 2026
About this 6-K
Eltek Ltd filed this 6-K on March 23, 2022.
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 March 2022
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): ☐
Eltek Ltd.
EXPLANATORY NOTE
On March 23, 2022 Eltek issued a press
release reporting full year and fourth quarter 2021 financial results. A copy of this press release is furnished herewith as Exhibit 99.1:
99.1 Announcement:
Eltek Reports Full Year and Fourth Quarter 2021 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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(Registrant)
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By: /s/ Ron Freund
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Ron Freund
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Chief Financial Officer
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Date: March 23, 2022
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 2021 Financial Results
| • |
Revenues of $33.8 million in 2021 compared to $36.7 million in 2020.
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| • |
Net profit of $5.0 million in 2021 compared to a net profit of $2.6 million in 2020.
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| • |
Revenues of $9.5 million in the fourth quarter of 2021 compared to $9.5 million in the fourth quarter of 2020.
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| • |
Net profit of $3.8 million in the fourth quarter of 2021 compared to net profit of $0.8 million in the fourth quarter of 2020.
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| • |
Gross margin of 20% for 2021.
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| • |
$3.8 million EBITDA in the year, or 11% of total sales.
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| • |
Cash flow provided by operating activities of $3.9 million for the year.
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PETACH-TIKVA, Israel, March 23, 2022 - 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, 2021.
Mr. Eli Yaffe, Chief Executive Officer, commented: "2021 was a challenging year in which we had to deal with a shortage of raw materials and the devaluation of the US Dollar against the Israeli Shekel. These
two challenges impacted our results of operations. Despite this, we managed to end the year with $1.5 million of pre-tax income. In the fourth quarter we released the tax loss carryforward valuation allowance recorded in prior years, which resulted
in income of $3.5 million. This release was based on our conclusion that it is more likely than not that our company will realize its deferred tax losses in the future. Thus, our net profit for 2021 was $5.0 million".
"In the fourth quarter and the beginning of 2022 Eltek succeeded in building a strong backlog for 2022. I am also glad to report
that we received the $1.4 million purchase order from a defense customer which we reported earlier on February 7, 2022. We are continuing with our R&D programs in order to maintain our position as an Industry Innovation leader as well as to
streamline and improve production processes and increase operational efficiency ” , Mr. Yaffe added.
"We ended 2021 with a strong balance sheet. The company's cash balances as of the end of 2021 amounted to approximately $9.3
million and we had working capital of $13.3 million. Our improved financial condition allows us to continue to invest in equipment and machinery.
During 2021, we were able to increase the company's customer base and we hope to continue this positive trend during 2022 as
well", Mr. Yaffe concluded.
Highlights of the Full Year of 2021 compared to the Full Year of 2020
| • |
Revenues for the full year of 2021 amounted to $33.8 million compared to revenues of $36.7 million in 2020, a decrease of 8% YoY.
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| • |
Gross profit was $6.9 million (20% of revenues) in 2021 compared to a gross profit of $7.7 million (21% of revenues) in 2020.
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| • |
Operating profit was $1.9 million in 2021 compared to operating profit of $3.0 million in 2020.
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| • |
Net profit was $5.0 million or $0.86 per fully diluted share in 2021, compared to a net profit of $2.6 million, or $0.58 per fully diluted share in 2020.
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| • |
EBITDA was $3.8 million in 2021 compared to EBITDA of $4.6 million in 2020.
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Net cash provided by operating activities amounted to $3.9 million in 2021 compared to $3.3 million in 2020.
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Cash and cash equivalents as of December 31, 2021 were $9.3 million compared to $4.7 million as of December 31, 2020.
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Highlights of the Fourth Quarter of 2021 compared to the Fourth Quarter of 2020
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Revenues for the fourth quarter of 2021 were $9.5 million the same as in the fourth quarter of 2020.
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| • |
Gross profit was $2.0 million (21% of revenues) in the fourth quarter of 2021 compared to $2.2 million (23% of revenues) in the fourth quarter of 2020.
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| • |
Operating profit was $0.6 million in the fourth quarter of 2021 compared to operating profit of $1.0 million in the fourth quarter of 2020.
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| • |
Net profit was $3.8 million or $0.65 per fully diluted share in the fourth quarter of 2021 compared to a net profit of $0.8 million or $0.16 per fully diluted share in the fourth quarter of 2020.
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EBITDA was $1.1 million in the fourth quarter of 2021 compared to $1.4 million in the fourth quarter of 2020.
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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, Thursday, March 23, 2021, at 8:30 a.m.
Eastern Time. The call will feature remarks by Eli Yaffe, Chief Executive Officer and Ron Freund, 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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1-866-860-9642
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Israel:
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03-9180691
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International:
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+972-3-9180691
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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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| 14:30 p.m. Israel Time |
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 was founded in 1970. The Company’s headquarters, R&D, production and marketing center are
located in Israel. Eltek also operates through its subsidiary in North America 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:
Some of the statements included in this press release may be forward-looking statements that involve a
number of risks and uncertainties including, but not limited to 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. Any forward-looking statements set forth in this press release speak only as of the date of this press release. The information found on our website is not incorporated by reference into this press release and is included for
reference purposes only.
Investor Contact:
Ron Freund
Chief Financial Officer
ronf@nisteceltek.com
Chief Financial Officer
ronf@nisteceltek.com
+972-3-9395023
(Tables follow)
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Eltek Ltd.
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Consolidated Statements of Operations
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(In thousands US$, except per share data)
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| Three months ended | Three months ended | |||||||||||||||
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December 31,
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December 31,
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|||||||||||||||
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2021
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2020
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2021
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2020
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|||||||||||||
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Revenues
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9,521
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9,501
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33,823
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36,707
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||||||||||||
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Costs of revenues
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(7,565
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)
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(7,290
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)
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(26,926
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)
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(28,969
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)
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||||||||
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Gross profit
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1,956
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2,211
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6,897
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7,738
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||||||||||||
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R&D expenses, net
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(23
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)
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(2
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)
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(78
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)
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(2
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)
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||||||||
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Selling, general and administrative expenses
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(1,310
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)
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(1,236
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)
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(4,870
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)
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(4,704
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)
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||||||||
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Operating profit
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623
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973
|
1,949
|
3,032
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||||||||||||
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Financial expenses, net
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(387
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)
|
(179
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)
|
(488
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)
|
(337
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)
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||||||||
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Other income (expenses), net
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-
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(6
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)
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41
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(16
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)
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||||||||||
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Profit before income tax
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236
|
788
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1,502
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2,679
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||||||||||||
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Tax income (expenses), net
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3,600
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(22
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)
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3,537
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(71
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)
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||||||||||
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Net Profit
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3,836
|
766
|
5,039
|
2,608
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||||||||||||
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Earnings per share
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||||||||||||||||
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Basic net profit per ordinary share
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0.66
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0.16
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0.86
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0.58
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||||||||||||
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Diluted net profit per ordinary share
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0.65
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0.16
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0.86
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0.58
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||||||||||||
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Weighted average number of ordinary shares used to compute
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||||||||||||||||
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basic net profit per ordinary share (in thousands)
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5,840
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4,841
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5,840
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4,495
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||||||||||||
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Weighted average number of ordinary shares used to compute
|
||||||||||||||||
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diluted net profit per ordinary share (in thousands)
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5,860
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4,852
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5,869
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4,501
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||||||||||||
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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,
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December 31,
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|||||||
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2021
|
2020
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|||||||
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Assets
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||||||||
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Current assets
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||||||||
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Cash and cash equivalents
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9,283
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4,735
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||||||
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Receivables: Trade, net of provision for doubtful accounts
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7,021
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9,062
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||||||
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Other
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798
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700
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||||||
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Inventories
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4,893
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3,704
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||||||
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Prepaid expenses
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586
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619
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||||||
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Total current assets
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22,581
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18,820
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||||||
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Long term assets
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||||||||
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Restricted deposits
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226
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62
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||||||
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Severance pay fund
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66
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64
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||||||
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Deferred tax assets and long term tax receivables, net
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3,563
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-
|
||||||
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Operating lease right of use assets
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8,979
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8,948
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||||||
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Total long term assets
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12,834
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9,074
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||||||
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Fixed assets, less accumulated depreciation
|
7,368
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7,263
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||||||
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Total Assets
|
42,783
|
35,157
|
||||||
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Liabilities and Shareholder's equity
|
||||||||
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Current liabilities
|
||||||||
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Short-term credit and current maturities of long-term debts
|
708
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676
|
||||||
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Accounts payable: Trade
|
4,044
|
4,452
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||||||
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Other
|
3,577
|
3,831
|
||||||
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Short-term operating lease liabilities
|
931
|
742
|
||||||
|
Total current liabilities
|
9,260
|
9,701
|
||||||
|
Long-term liabilities
|
||||||||
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Long term debt, excluding current maturities
|
3,921
|
1,495
|
||||||
|
Employee severance benefits
|
344
|
338
|
||||||
|
Deferred tax liabilities, net
|
-
|
84
|
||||||
|
Long-term operating lease liabilities
|
8,186
|
8,272
|
||||||
|
Total long-term liabilities
|
12,451
|
10,189
|
||||||
|
Equity
|
||||||||
|
Ordinary shares, NIS 3.0 par value authorized 10,000,000 shares, issued and outstanding 5,840,357 at December 31, 2021 and December 31, 2020
|
5,296
|
5,296
|
||||||
|
Additional paid-in capital
|
22,846
|
22,846
|
||||||
|
Cumulative foreign currency translation adjustments
|
3,716
|
3,153
|
||||||
|
Capital reserve
|
1,287
|
1,084
|
||||||
|
Accumulated deficit
|
(12,073
|
)
|
(17,112
|
)
|
||||
|
Shareholders' equity
|
21,072
|
15,267
|
||||||
|
Total liabilities and shareholders' equity
|
42,783
|
35,157
|
||||||
|
Eltek Ltd.
|
|
Unaudited Non-GAAP EBITDA Reconciliations
|
|
(In thousands US$)
|
|
Non-GAAP EBITDA Reconciliations
|
Three months ended
|
Twelve months ended
|
||||||||||||||
|
December 31,
|
December 31,
|
|||||||||||||||
|
2021
|
2020
|
2021
|
2020
|
|||||||||||||
|
Unaudited
|
Unaudited
|
|||||||||||||||
|
GAAP net Income
|
3,836
|
766
|
5,039
|
2,608
|
||||||||||||
|
Add back items:
|
||||||||||||||||
|
Financial expenses, net
|
387
|
179
|
488
|
337
|
||||||||||||
|
Income tax expense
|
(3,600
|
)
|
22
|
(3,537
|
)
|
71
|
||||||||||
|
Depreciation and amortization
|
450
|
415
|
1,781
|
1,592
|
||||||||||||
|
Non-GAAP EBITDA
|
1,073
|
1,382
|
3,771
|
4,608
|
||||||||||||
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Eltek Ltd.
|
|
Consolidated Statement of Cash flow
|
|
(In thousands US$)
|
|
Three months ended
|
Twelve months ended
|
|||||||||||||||
|
December 31,
|
December 31,
|
|||||||||||||||
|
2021
|
2020
|
2021
|
2020
|
|||||||||||||
|
Cash flows from operating activities:
|
||||||||||||||||
|
Net Income
|
3,836
|
766
|
5,039
|
2,608
|
||||||||||||
|
Adjustments to reconcile net profit to net
|
||||||||||||||||
|
cash flows provided by operating activities:
|
||||||||||||||||
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Depreciation and amortization
|
450
|
415
|
1,781
|
1,592
|
||||||||||||
|
Capital (gain) loss on disposal of fixed assets, net
|
-
|
14
|
-
|
(2
|
)
|
|||||||||||
|
Stock-based compensation
|
74
|
30
|
203
|
121
|
||||||||||||
|
Revaluation of long term loans
|
-
|
-
|
-
|
2
|
||||||||||||
|
Increase in long term tax receivables
|
(1,013
|
)
|
-
|
(1,013
|
)
|
-
|
||||||||||
|
Decrease (increase) in deferred tax assets, net
|
(2,572
|
)
|
15
|
(2,550
|
)
|
33
|
||||||||||
|
(3,061
|
)
|
474
|
(1,579
|
)
|
1,746
|
|||||||||||
|
Decrease (increase) in operating lease right-of-use assets
|
25
|
79
|
66
|
74
|
||||||||||||
|
Decrease (increase) in trade receivables
|
(301
|
)
|
(2,054
|
)
|
2,260
|
(956
|
)
|
|||||||||
|
Decrease (increase) in other receivables and prepaid expenses
|
(161
|
)
|
334
|
(18
|
)
|
(556
|
)
|
|||||||||
|
Decrease (increase) in inventories
|
(499
|
)
|
93
|
(1,023
|
)
|
290
|
||||||||||
|
Increase (decrease) in trade payables
|
424
|
(476
|
)
|
(451
|
)
|
(449
|
)
|
|||||||||
|
Increase (decrease) in other liabilities and accrued expenses
|
164
|
267
|
(414
|
)
|
448
|
|||||||||||
|
Increase (decrease) in employees severance benefits, net
|
-
|
20
|
(5
|
)
|
47
|
|||||||||||
|
(348
|
)
|
(1,737
|
)
|
415
|
(1,102
|
)
|
||||||||||
|
Net cash provided by (used in) operating activities
|
427
|
(497
|
)
|
3,875
|
3,252
|
|||||||||||
|
Cash flows from investing activities:
|
||||||||||||||||
|
Purchase of fixed assets
|
(173
|
)
|
(279
|
)
|
(1,535
|
)
|
(1,082
|
)
|
||||||||
|
Restricted deposits
|
-
|
-
|
(156
|
)
|
(58
|
)
|
||||||||||
|
Repayment from insurance
|
44
|
-
|
44
|
-
|
||||||||||||
|
Net cash used in investing activities
|
(129
|
)
|
(279
|
)
|
(1,647
|
)
|
(1,140
|
)
|
||||||||
|
Cash flows from financing activities:
|
||||||||||||||||
|
Short- term bank credit, net
|
-
|
328
|
(377
|
)
|
(1,600
|
)
|
||||||||||
|
Repayment of short- term shareholder loan
|
-
|
(3,090
|
)
|
-
|
(3,661
|
)
|
||||||||||
|
Issuance of shares in rights offering, net
|
5,594
|
5,594
|
||||||||||||||
|
Repayment of long-term loans from bank
|
(114
|
)
|
(38
|
)
|
(301
|
)
|
(183
|
)
|
||||||||
|
Proceeds from long-term loans
|
-
|
-
|
3,063
|
1,141
|
||||||||||||
|
Repayment of credit from fixed asset payables
|
25
|
(86
|
)
|
(261
|
)
|
(477
|
)
|
|||||||||
|
Net cash provided by (used in) financing activities
|
(89
|
)
|
2,708
|
2,124
|
814
|
|||||||||||
|
Effect of translation adjustments
|
189
|
152
|
196
|
181
|
||||||||||||
|
Net increase (decrease) in cash and cash equivalents
|
398
|
2,084
|
4,548
|
3,107
|
||||||||||||
|
Cash and cash equivalents at beginning of the period
|
8,885
|
2,651
|
4,735
|
1,628
|
||||||||||||
|
Cash and cash equivalents at period end
|
9,283
|
4,735
|
9,283
|
4,735
|
||||||||||||