GEDERA, Israel, March 12 /PRNewswire-FirstCall/ -- TAT Technologies
Ltd. (NASDAQ:TATTF), reported today its results for the three and
twelve month periods ended December 31, 2008. TAT Technologies Ltd.
(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 $784,000 on revenues of $31.1 million for the three
months ended December 31, 2008 compared to net income of $1.4
million on revenues of $19.8 million for the three months ended
December 31, 2007. For the twelve months ended December 31, 2008,
TAT announced net income of $4.3 million on revenues of $103.3
million compared to net income of $32.0 million and revenues of
$88.7 million for the same period ended December 31, 2007. Whereas
the 2008 period benefited from significant increased revenues
offset by declining margins, 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. Revenues from the company's three principal
lines of business for the three and twelve month periods ended
December 31, 2008 and 2007 were as follows: Three Months Ended
December 31, 2008 2007 Revenues % of Total Revenues % of Total
Revenues Revenues In Thousands Revenues: MRO Services $14,012 44.9%
$11,515 58.3% OEM products 15,084 48.4% 6,094 30.8% Parts Services
3,929 12.6% 3,362 17.0% Elimination (1,882) (5.9%) (1,220) (6.1%)
Total Revenues 31,143 100.0% 19,751 100.0% Year Ended December 31,
2008 2007 Revenues % of Total Revenues % of Total Revenues Revenues
In Thousands Revenues: MRO Services $54,276 52.5% $49,392 55.7% OEM
products 37,696 36.4% 23,489 26.4% Parts Services 17,289 16.7%
20,384 23.0% Elimination (5,973) (5.6%) (4,561) (5.1%) Total
Revenues 103,288 100.0% 88,704 100.0% The 58% and 16% increases in
revenues for the three and twelve month periods ended December 31,
2008 compared with the same periods of December 31, 2007,
respectively, reflect increased revenues in the OEM segment due to
organic growth as well as revenues from the consolidation of the
company's 70% controlled subsidiary, Bental Industries Ltd
commencing August 18, 2008 ; increased revenues in the MRO segment
offset by a moderate decrease of revenues in the Parts segment. The
decrease in net income for the twelve month period ended December
31, 2008 compared with the twelve month period ended December 31,
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 (i) a one time compensation charge of approximately $1.2
million arising from the previously announced retirement of certain
managers; (ii) the decline in the exchange rate between the U.S.
dollar and the Israeli Shekel that resulted in increased
operational expenses; and (iii) the decrease in the net profit of
Limco-Piedmont from $5.2 million in the twelve month periods ended
December 31, 2007 to $2.7 million in the twelve month periods ended
December 31, 2008. These factors were offset by improved results
for the Company's operations in Israel for the three and twelve
month periods ended December 31, 2008 compared with those of
December 31, 2007. Dr. Shmuel Fledel, TAT's CEO commented: "The
fourth quarter and Year ended December 31, 2008 saw encouraging
revenue growth for the TAT group, compared to the same periods
ended December 31, 2007. 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 coming years.
The expense control measures we have taken, including the
consolidation of our two US based operating entities in one
location, will contribute to improved earnings going forward. We
believe that our business opportunities, along with anticipated
expense control and improvement in operational performance should
give us the ability to realize an improved 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 (i) design, development, 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; (ii) 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; and (iii) design, development,
manufacture and sale of a broad range of electrical motor
applications for airborne and ground systems 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. 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. TAT TECHNOLOGIES AND
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands,
except per share data) December 31, December 31, 2008 2007 ASSETS
Current Assets: Cash and cash equivalents $ 33,908 $15,114
Short-term investments 11,300 28,806 Accounts receivable (net of
allowance for doubtful accounts of $154 and $155 at December 31,
2008 and December 31, 2007, respectively) 22,086 14,679 Inventories
34,884 28,189 Other accounts receivable and prepaid expenses 6,536
4,047 Total current assets 108,714 90,835 Funds in respect of
employee right upon retirement 3,705 4,156 Property, plant and
equipment, net 15,187 11,927 Intangible assets, net 2,195 1,709
Goodwill 5,998 4,780 Total assets $135,799 $113,407 LIABILITIES AND
SHAREHOLDERS' EQUITY Current Liabilities: Current maturities of
long-term loans 150 Accounts payables 10,585 7,067 Other accounts
payable and accrued expenses 7,363 4,310 Total current liabilities
18,098 11,377 LONG-TERM LIABILITIES: Fair value of Call options to
minority 2,183 - Long-term loans, net of current maturities 5,188 -
Liability in respect of employee rights upon retirement 4,468 4,175
Long-term deferred tax liability 1,087 581 12,926 4,756 Minority
interest 28,700 24,481 SHAREHOLDERS' EQUITY: Share capital Ordinary
shares of NIS 0.9 par value - Authorized: 10,000,000 shares at
December 31, 2008 and 2007; Issued and outstanding: 6,552,671
shares and 6,542,671 shares at December 31, 2008 and 2007,
respectively 2,204 2,201 Additional paid-in capital 39,476 39,308
Accumulated other comprehensive loss (763) - Retained earnings
35,158 31,284 SHAREHOLDERS' EQUITY: 76,075 72,793 Total liabilities
and shareholders' equity $135,799 $113,407 TAT TECHNOLOGIES AND
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in
thousands, except per share data) Three months ended Year ended
December 31, December 31, 2008 2007 2008 2007 Revenues MRO services
$ 14,012 $11,515 $54,276 $49,392 OEM products 13,202 4,874 31,723
18,928 Parts services 3,929 3,362 17,289 20,384 31,143 19,751
103,288 88,704 Cost and operating expenses Cost of revenue 25,209
15,058 80,563 65,207 Selling and marketing 901 902 4,369 3,719
General and administrative 3,689 2,958 12,407 10,995 Operating
income 1,344 833 5,949 8,783 Interest income(expense) net 318 506
1,173 701 Loss on sale of investments (236) - (236) Other income,
net (57) - 26,478 Income before taxes and minority interest 1,426
1,282 6,886 35,962 Provision for income taxes 421 (412) 1,794 3,212
Income before minority interest 1,005 1,694 5,092 32,750 Share in
result of affiliated company prior to its consolidation - 674 -
Minority interest income (221) (303) (1,500) (771) Net income $784
$1,391 $4,266 $31,979 Basic net income per share $0.12 $0.21 $0.65
$5.041 Diluted net income per share $0.12 $0.21 $0.65 $4.99
Weighted average number of shares - basic 6,554,504 6,542,671
6,546,055 6,344,041 Weighted average number of shares - diluted
6,559,587 6,558,689 6,566,249 6,407,504 DATASOURCE: TAT
Technologies Ltd CONTACT: For further information, please call Mr.
Yaron Shalem, the Company CFO, at +972-8-8628503.
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