Eltek Reports 2022 Second Quarter Financial Results

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Eltek Ltd., a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs), announced its financial results for the quarter ended June 30, 2022.

Second Quarter 2022 Highlights

• Revenues were $9.1 million
• Operating profit was $0.3 million
• Profit before tax was $1.0 million.
• Net profit was $0.8 million or $0.13 per fully diluted share
• Net cash provided by operating activities amounted to $0.5 million
• Repair of the damaged production line was completed and production has returned to normal capacity

"While we were able to record revenues of $9.1 million in the second quarter of 2022, our revenues and operating profit was affected by the fire that broke out at our plant in Petach-Tikvah. The fire was extinguished, but completely shut down the production phase carried out in one of our production departments. Within a period of approximately two weeks we managed to employ an alternative process using other machines and renewed partial deliveries to customers while prioritizing critical orders. As of today, our production levels are at normal volume," said Eli Yaffe, CEO of Eltek.

"As a result of the fire, our ability to supply finished products to our customers was impaired, resulting in lower than planned sales and increased costs. We are currently discussing with the insurance company the amount of compensation for the damages we incurred," further explained Mr. Yaffe.

"During July, we renewed our shelf registration statement which will permit us to raise up to $20 million. The registration statement is intended to enable us to raise capital at a time when market conditions and our share price will be appropriate," concluded Mr. Yaffe.

Second Quarter 2022 GAAP Financial Results

• Revenues for the second quarter of 2022 were $9.1 million, compared to $9.1 million in the second quarter of 2021;
• Gross profit for the second quarter of 2022 was $1.7 million (18% of revenues) compared to $2.4 (26% of revenues) in the second quarter of 2021;
• Operating profit for the second quarter of 2022 was $0.3 million compared to operating profit of $1.0 million in the second quarter of 2021;
• Financial income for the second quarter of 2022 was $0.6 million compared to financial expenses of $0.1 million in the second quarter of 2021. Financial income resulted from the erosion of the NIS against the US dollar.
• Profit before income tax for the second quarter of 2022 was $1.0 million compared to $1.0 million in the second quarter of 2021;
• Net profit for the second quarter of 2022 was $0.8 million or $0.13 per fully diluted share compared to net profit of $0.9 million or $0.16 per fully diluted share in the second quarter of 2021;

Second Quarter 2022 Non-GAAP Financial Results

• EBITDA for the second quarter of 2022 was a $0.8 million (9% of revenues) compared to EBITDA of $1.4 million (16% of revenues) in the second quarter of 2021;

First six months of 2022 GAAP Financial Results

• Revenues for the first six months of 2022 were $18.8 million, compared to $16.3 million in the first six months of 2021;
• Gross profit for the first six months of 2022 was $3.6 million (19% of revenues) compared to $3.5 (22% of revenues) in the first six months of 2021;
• Operating profit for the first six months of 2022 was $1.0 million compared to operating profit of $1.2 million in the first six months of 2021;
• Financial income for the first six months of 2022 was $732,000 compared to financial income of $20,000 in the first six months of 2021. Financial income resulted from the erosion of the NIS against the US dollar.
• Profit before income tax for the first six months of 2022 was $1.7 million compared to $1.2 million in the first six months of 2021;
• Net profit for the first six months of 2022 was $1.4 million or $0.24 per fully diluted share compared to net profit of $1.2 million or $0.20 per fully diluted share in the first six months of 2021;

First six months of 2022 Non-GAAP Financial Results

EBITDA for the first six months of 2022 was a $1.9 million (10% of revenues) compared to EBITDA of $2.1 million (13% of revenues) in the first six months of 2021.