GEDERA, Israel, Nov. 13 /PRNewswire-FirstCall/ -- TAT Technologies
Limited (NASDAQ:TATTF), reported today its results for the three
and nine month periods ended September 30, 2008. TAT Technologies
Limited (TAT), directly and through its subsidiaries, provides a
variety of services and products to the aerospace industry, such as
the manufacture, maintenance and repair of a broad range of heat
transfer components (such as heat exchangers, pre-coolers and
oil/fuel hydraulic coolers) used in mechanical and electronic
systems on-board commercial, military and business aircraft; other
environmental control and cooling systems and a variety of other
electronic and mechanical aircraft accessories. TAT announced net
income of $679,120 on revenues of $26,702,134 for the three months
ended September 30, 2008 compared to net income of $26,080,046 on
revenues of $20,862,079 for the three months ended September 30,
2007. The 2007 period benefited from the capital gain of $26.4
million that the company recorded in connection with the July 2007
IPO of its 62% held subsidiary, Limco-Piedmont Inc. For the nine
months ended September 30, 2008 TAT announced net income of
$3,582,221 on revenues of $72,145,103 compared to net income of
$30,588,308 and revenues of $68,983,537 for the same period ended
September 30, 2007. Revenues from the company's three principal
lines of business for the three and nine month periods ended
September 30, 2008 and 2007 were as follows: Three Months Ended
September 30, 2008 2007 Revenues % of Total Revenues % of Total
Revenues Revenues In Thousands Revenues: MRO Services 14,054 52.6%
12,821 61.5% OEM products 9,153 34.3% 5,377 25.8% Parts Services
4,773 17.9% 3,813 18.3% Elimination (1,278) (4.8%) (1,149) (5.6%)
Total Revenues 26,702 100.0% 20,862 100.0% Nine Months Ended
September 30, 2008 2007 Revenues % of Total Revenues % of Total
Revenues Revenues In Thousands Revenues: MRO Services 40,264 55.8%
37,877 54.9% OEM products 22,599 31.3% 17,395 25.2% Parts Services
13,360 18.5% 17,022 24.7% Elimination (4,078) (5.6%) (3,311) (4.8%)
Total Revenues 72,145 100.0% 68,983 100.0% The 28% and 5% increases
in revenues for the three and nine month periods ended September
30, 2008 compared with those of September 30, 2007, respectively,
reflect increased revenues in all three segments of the company in
addition to the consolidation of the company's 70% owned
subsidiary, Bental Industries Ltd. commencing August 18, 2008.
Bental contributed revenues of $3,066 thousands during the third
quarter. The decrease in net income for both the three and nine
month periods ended September 30, 2008 compared with those of
September 30, 2007, is primarily attributable to the $26.4 million
capital gain recorded in connection with the IPO of the company's
62% held subsidiary, Limco-Piedmont Inc. in July 2007. Also
impacting net income was the decrease in the net profits of the
company's operations in Israel from $1.7 million in the nine months
ended September 30, 2007 to $ 911,000 in the nine months ended
September 30, 2008, primarily resulting from the decline in the
exchange rate between the U.S. dollar and the Israeli Shekel that
resulted in increased operational expenses and decreased net
profit. Other factors impacting net income was a one time
compensation charge of $930,000 arising from the previously
announced retirement of certain managers and the decrease in the
net profit of Limco-Piedmont from $4.4 million in the nine months
ended September 30, 2007 to $2.6 million in the nine months ended
September 30, 2008. The third quarter of 2008 results also reflect
the positive addition of $ 989,000 of net income attributable to
Bental Industries Ltd. Since the end of the second quarter, TAT,
directly and through its subsidiaries, has entered into a number of
long-term agreements with customers for the provision of products
and services. Among such agreements, are agreements for the
provision of Heat Exchangers commencing in 2010, pursuant to which
revenues may reach approximately $20 to 35 million over a 5 to 15
years period. We also entered into agreements to provide cooling
systems commencing in 2009, pursuant to which revenues may reach
approximately $10 to 20 million over a 5 to 15 years period. Dr.
Shmuel Fledel, TAT's CEO commented: "The third quarter of 2008 saw
encouraging revenue growth for the TAT group, versus the third
quarter of last year and second quarter of this year. We have
experienced a decrease in our gross margins, and consequently we
are taking aggressive actions to manage costs through the weakness
that is developing in the aviation industries. We are pursuing
initiatives with new customers for 2009 and looking positively
towards the fourth quarter of 2008 and 2009. We believe that our
business opportunities, along with consistent expense control and
improvement in operational performance give us the ability to
realize an improved fourth quarter and 2009." About TAT
Technologies Ltd. TAT Technologies Limited provides a variety of
services and products to the aerospace industry under three
operational segments: (i) OEM products (ii) MRO services and (iii)
parts, each with the following characteristics: Our OEM activities
primarily relate to the manufacture and sale of a broad range of
heat transfer components (such as heat exchangers, pre-coolers and
oil/fuel hydraulic coolers) used in mechanical and electronic
systems on-board commercial, military and business aircraft. We
also manufacture and sell other environmental control and cooling
systems and a variety of other electronic and mechanical aircraft
accessories and systems such as pumps, valves, power systems and
turbines. Our MRO services include the remanufacture, overhaul and
repair of heat transfer equipment and other aircraft components,
APUs, propellers and landing gear. Our Limco-Piedmont subsidiary
operates four FAA certified repair stations, which provide aircraft
component MRO services for airlines, air cargo carriers,
maintenance service centers and the military. Our parts segment
focuses on the sale of APU parts propellers and landing gear. We
offer parts services for commercial, regional and charter airlines
and business aircraft owners. Safe Harbor for Forward-Looking
Statements This press release contains forward-looking statements
that are subject to risks and uncertainties. Factors that could
cause actual results to differ materially from these
forward-looking statements include, 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, 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 and Exchange Commission.
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.
Stockholders 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. TAT
TECHNOLOGIES AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED
BALANCE SHEETS (in thousands, except per share data) September 30,
December 31, 2008 2007 ASSETS Current Assets: Cash and cash
equivalents $23,201 $15,114 Short-term investments 21,110 28,806
Accounts receivable (net of allowance for doubtful accounts of $202
and $140 at September 30, 2008 and December 31, 2007, respectively)
21,445 14,679 Inventories 37,736 28,189 Other accounts receivable
and prepaid expenses 5,966 4,047 Total current assets 109,458
90,835 Funds in respect of employee right upon retirement 4,424
4,156 Property, plant and equipment, net 15,263 11,927 Intangible
assets, net 2,307 1,709 Goodwill 6,501 4,780 Total assets $137,953
$113,407 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities:
Current maturities of long-term loans 165 - Accounts payables
11,885 7,067 Other accounts payable and accrued expenses 7,710
4,310 Total current liabilities 19,760 11,377 LONG-TERM
LIABILITIES: fair value of Call options to minority 2,408 -
Long-term loans, net of current maturities 5,247 - Liability in
respect of employee rights upon retirement 5,030 4,175 Long-term
deferred tax liability 1,000 581 13,685 4,756 Minority interest
28,586 24,481 SHAREHOLDERS' EQUITY: Share capital Ordinary shares
of NIS 0.9 par value - Authorized: 10,000,000 shares at September
30, 2008 and December 31, 2007; Issued and outstanding: 6,547,671
shares and 6,542,671 shares at September 30, 2008 and December 31,
2007, respectively 2,202 2,201 Additional paid-in capital 39,468
39,308 Accumulated other comprehensive loss (308) - Retained
earnings 34,560 31,284 SHAREHOLDERS' EQUITY: 75,922 72,793 Total
liabilities and shareholders' equity $137,953 $113,407 TAT
TECHNOLOGIES AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF INCOME (in thousands, except per share data) Three
months ended Nine months ended September 30, September 30, 2008
2007 2008 2007 Revenues MRO services 14,054 12,821 40,264 37,877
OEM products 7,875 4,228 18,521 14,084 Parts services 4,773 3,813
13,360 17,022 26,702 20,862 72,145 68,983 Cost and operating
expenses Cost of revenue 20,684 15,816 55,354 50,035 Selling and
marketing 1,329 967 3,468 2,817 General and administrative 3,085
2,348 8,718 8,037 Operating income 1,604 1,731 4,605 8,094 Interest
income(expense) net 195 305 844 194 Other income, net - 26,374 -
26,393 Income before taxes and minority interest 1,799 28,410 5,449
34,681 Provision for income taxes 818 1,862 1,375 3,625 Income
before minority interest 981 26,548 4,074 31,056 Share in result of
affiliated company prior to its consolidation 252 - 686 - Minority
interest income (554) (468) (1,178) (468) Net income $679 $26,080
$3,582 $30,588 Basic net income per share $0.10 $3.99 $0.55 $4.74
Diluted net income per share $0.10 $3.98 $0.55 $4.68 Weighted
average number Of shares - basic 6,547,671 6,542,671 6,544,338
6,450,078 Weighted average number of shares - diluted 6,557,559
6,558,362 6,559,186 6,530,396 DATASOURCE: TAT Technologies Limited
CONTACT: Yaron Shalem, Chief Financial Officer, TAT Technologies
Ltd., +972-8-8595500
Copyright
Tat Technologies (NASDAQ:TATTF)
Historical Stock Chart
From Jun 2024 to Jul 2024
Tat Technologies (NASDAQ:TATTF)
Historical Stock Chart
From Jul 2023 to Jul 2024