6-K 1 zk2227934.htm 6-K

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 May 2022

TAT TECHNOLOGIES LTD.
(Name of Registrant)

Giborei Israel 7, Netanya 4250407, 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): ☐

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ☐           No ☒

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ____________


TAT Technologies Ltd.

6-K Items

1.
Press Release dated May 31, 2022 re TAT Technologies Ltd. Reports First Quarter 2022 Results.

2

ITEM 1

Press Release
  

TAT Technologies Reports First Quarter 2022 Results

Netania, Israel, May 31, 2022 - TAT Technologies Ltd. (NASDAQ: TATT - News) (“TAT” or the “Company”), a leading provider of products and services to the commercial and military aerospace and ground defense industries, reported today its unaudited results for the three-month period ended March 31, 2022.

Financial highlights for the first quarter of 2022:
 
•
Revenues for Q1 2022 increased by 8.1% to $19.9 million compared to $18.4 million in Q1 2021.
 
•
Gross profit for Q1 2022 was $3 million (15.2% of revenues) compared to $3.4 million in Q1 2021 (18.5% of revenues).
 
•
Adjusted EBITDA for Q1 2022 decreased to $0.5 million compared to $1.6 million in Q1 2021.

•
Net loss for Q1 2022 was $1.6 million compared to a net income of $0.6 million in Q1 2021.
 
•
Q1 2021 Gross Profit, EBITDA and Net Income included government rants in the amount of $1.4 million ($1 million recorded in the COGS and an additional $0.4 million recorded in G&A)

Mr. Igal Zamir, TAT’s CEO and President commented on the results: “As air travel begins to recoup and more and more plains resume flights, we see a growing demand for our services and products and an increase in order intake. We are working relentlessly to meet this demand despite strong headwinds resulting from supply chain issues and shortages in raw materials, which are hampering our ability to fully ramp up our production.

During Q1 of 2022 we continued making significant steps in improving our manufacturing efficiencies as we successfully completed merging our 2 facilities in Israel to a single manufacturing site. We believe the cost savings expected from this unification will begin to impact us toward the second half of 2022.

In addition we continue to invest in building additional MRO and production capabilities, following the strategic contacts recently signed with Honeywell and hope to have these new capabilities available by the end of this year.”

“Given our growing backlog, the continued recovery of commercial airline traffic and the strategic agreements we signed with Honeywell, coupled with the actions we have taken and to improve our manufacturing efficiencies, I am optimistic about our ability to continue our topline and bottom line growth.” concluded Mr. Zamir

Mr Zamir added: “Mr. Ron Ben-Haim has informed our Board of Directors of his retirement from his directorship position effective, May 30, 2022. I wish to thank Ron for his service on behalf of the Company, its board of directors, its management and its employees"

3

Non-GAAP Financial Measures

To supplement the consolidated financial statements presented in accordance with GAAP, the Company also presents Adjusted EBITDA.  The adjustments to the Company’s GAAP results are made with the intent of providing both management and investors a more complete understanding of the Company’s underlying operational results, trends and performance. Adjusted EBITDA is calculated as net income excluding the impact of: the Company's share in results of affiliated companies, share-based compensation, taxes on income, financial (expenses) income, net, and depreciation and amortization. Adjusted EBITDA, however, should not be considered as alternative to net income and operating income for the period and may not be indicative of the historic operating results of the Company; nor it is meant to be predictive of potential future results. Adjusted EBITDA is not measure of financial performance under generally accepted accounting principles and may not be comparable to other similarly titled measures for other companies. See reconciliation of Adjusted EBITDA in pages 13 below.

About TAT Technologies LTD
 
TAT Technologies Ltd. is a leading provider of services and products to the commercial and military aerospace and ground defense industries. TAT operates under four segments: (i) Original equipment manufacturing (“OEM”) of heat transfer solutions and aviation accessories through its Gedera facility; (ii) MRO services for heat transfer components and OEM of heat transfer solutions through its Limco subsidiary; (iii) MRO services for aviation components through its Piedmont subsidiary; and (iv) Overhaul and coating of jet engine components through its Turbochrome subsidiary. TAT controlling shareholders is the FIMI Private Equity Fund.

TAT’s activities in the area of OEM of heat transfer solutions and aviation accessories primarily include the design, development and manufacture of (i) broad range of heat transfer solutions, such as pre-coolers heat exchangers and oil/fuel hydraulic heat exchangers, used in mechanical and electronic systems on board commercial, military and business aircraft; (ii) environmental control and power electronics cooling systems installed on board aircraft in and ground applications; and (iii) a variety of other mechanical aircraft accessories and systems such as pumps, valves, and turbine power units.

TAT’s activities in the area of MRO Services for heat transfer components and OEM of heat transfer solutions primarily include the MRO of heat transfer components and to a lesser extent, the manufacturing of certain heat transfer solutions. TAT’s Limco subsidiary operates an FAA-certified repair station, which provides heat transfer MRO services for airlines, air cargo carriers, maintenance service centers and the military.

TAT’s activities in the area of MRO services for aviation components include the MRO of APUs, landing gears and other aircraft components. TAT’s Piedmont subsidiary operates an FAA-certified repair station, which provides aircraft component MRO services for airlines, air cargo carriers, maintenance service centers and the military.

4

TAT’s activities in the area of overhaul and coating of jet engine components includes the overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable inlet guide vanes and afterburner flaps.

For more information of TAT Technologies Ltd., please visit our web-site:
www.tat-technologies.com

Contact:
Mr. Ehud Ben-Yair
Chief Financial Officer
Tel: 972-8-862-8503
ehudb@tat-technologies.com

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements which include, without limitation, statements regarding possible or assumed future operation results. These statements are hereby identified as "forward-looking statements" for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause our results to differ materially from management's current expectations. Actual results and performance can also be influenced by other risks that we face in running our operations including, 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, the change of control that will occur on the sale by the receiver of the Company’s shares held by our previously controlling stockholders, and other risks detailed from time to time in the Company's filings with the Securities Exchange Commission, including, its annual report on form 20-F and its periodic reports on form 6-K. 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.


5

TAT TECHNOLOGIES AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)

 
March 31,
    
December 31,
  
   
2022
    
2021
  
   
(unaudited)
    
(audited)
  
ASSETS
            
CURRENT ASSETS:
            
Cash and cash equivalents
  
$
12,798
    
$
12,872
  
Accounts receivable, net
    
14,686
      
13,887
  
Inventory, net
    
43,210
      
41,003
  
Other current assets and prepaid expenses
    
4,327
      
4,219
  
                 
Total current assets
    
75,021
      
71,981
  
                 
NON-CURRENT ASSETS:
                
 Restricted deposit
    
333
      
343
  
 Investment in affiliates
    
668
      
695
  
Funds in respect of employee rights upon retirement
    
1,086
      
1,157
  
 Deferred income taxes
    
1,147
      
1,252
  
Intangible assets, net
    
1,777
      
1,829
  
Property, plant and equipment, net
    
33,780
      
30,462
  
Operating lease right of use assets
    
2,534
      
3,114
  
                 
Total non-current assets
    
41,325
      
38,852
  
Total assets
  
$
116,346
    
$
110,833
  
                 
LIABILITIES AND EQUITY
                
                 
CURRENT LIABILITIES:
                
Current maturities of long-term loans
  
$
1,088
    
$
691
  
Credit line from bank
    
3,016
      
6,008
  
Accounts payable
    
9,860
      
9,093
  
Accrued expenses
    
6,917
      
6,959
  
Operating lease liabilities
    
609
      
1,169
  
Provision for restructuring plan
    
312
      
657
  
                 
Total current liabilities
    
21,802
      
24,577
  
                 
NON CURRENT LIABILITIES:
                
    Long-term loans
    
15,917
      
5,979
  
Liability in respect of employee rights upon retirement
    
1,387
      
1,504
  
Operating lease liabilities
    
1,934
      
1,989
  
                 
 Total non-current liabilities
    
19,238
      
9,472
  
Total liabilities
  
$
41,040
    
$
34,049
  
                 
EQUITY:
                
Share capital
    
2,820
      
2,809
  
Additional paid-in capital
    
65,976
      
65,871
  
Treasury stock at cost
    
(2,088
)
    
(2,088
)
Accumulated other comprehensive income
    
1
      
33
  
Retained earnings
    
8,597
      
10,159
  
Total shareholders' equity
    
75,306
      
76,784
  
                 
Total liabilities and shareholders' equity
  
$
116,346
    
$
110,833
  

6

TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)

   
Three months ended
    
Year ended
  
   
March 31,
    
December 31,
  
   
2022
    
2021
    
2021
  
   
(Unaudited)
    
(Unaudited)
    
(Audited)
  
                   
Revenues:
                  
Products
  
$
6,319
    
$
4,154
    
$
25,870
  
Services
    
13,635
      
14,206
      
52,103
  
     
19,954
      
18,360
      
77,973
  
                         
Cost of goods:
                        
Products
    
5,744
      
3,610
      
23,761
  
Services
    
11,165
      
11,352
      
42,942
  
     
16,909
      
14,962
      
66,703
  
Gross Profit
    
3,045
      
3,398
      
11,270
  
                         
Operating expenses:
                        
Research and development, net
    
(27
)
    
136
      
517
  
Selling and marketing
    
1,335
      
1,205
      
5,147
  
General and administrative
    
2,385
      
1,622
      
8,354
  
Other income
    
(81
)
    
(13
)
    
(468
)
Restructuring and other expenses
    
927
      
533
      
1,755
  
     
4,539
      
3,483
      
15,305
  
                         
Operating loss
    
(1,494
)
    
(85
)
    
(4,035
)
                         
Financial income (expenses), net
    
66
      
397
      
(540
)
                         
Income (loss) before taxes on income (tax benefit)
    
(1,428
)
    
312
      
(4,575
)
                         
Taxes on income (tax benefit)
    
107
      
(131
)
    
(662
)
                         
Income (loss) before share of equity investment
    
(1,535
)
    
443
      
(3,913
)
                         
Share in results of affiliated companies
    
(27
)
    
(12
)
    
(76
)
Net income (loss) from continued operation
  
$
(1,562
)
  
$
431
    
$
(3,989
)
Net income from discontinued operation
    
-
      
156
    
$
427
  
Net income (loss)
  
$
(1,562
)
  
$
587
    
$
(3,562
)
                         
Basic and diluted income per share
                        
                         
Net income (loss) per share basic and diluted from continued operation
  
$
(0.17
)
  
$
0.05
    
$
(0.45
)
Net income per share basic and diluted from discontinued operation
  
$
-
    
$
0.02
    
$
0.05
  
Net income (loss) per share basic and diluted
  
$
(0.17
)
  
$
0.07
    
$
(0.4
)
                         
Weighted average number of shares outstanding
                        
Basic
    
8,886,546
      
8,874,696
      
8,874,696
  
Diluted
    
8,886,546
      
8,874,696
      
8,874,696
  


7


TAT TECHNOLOGIES AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)

   
Three months ended
    
Year ended
  
   
March 31,
    
December 31,
  
   
2022
    
2021
    
2021
  
   
(Unaudited)
    
(Unaudited)
    
(Audited)
  
                   
Net income (loss)
  
$
(1,562
)
  
$
587
    
$
(3,562
)
Other comprehensive income (loss)
                        
Net unrealized losses from derivatives
    
(32
)
    
(143
)
    
(76
)
       Reclassification adjustments for gains included in net income and inventory
    
-
      
-
      
(19
)
  Total comprehensive income (loss)
  
$
(1,594
)
  
$
444
    
$
(3,657
)


8

TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(In thousands, except share data)

   
Share capital
      
Additional paid-in capital
    
Accumulated
other comprehensive income (loss)
      
Treasury shares
      
Retained earnings
      
Total equity
  
   
Number of shares issued
    
Amount
                      
                                           
BALANCE AT DECEMBER 31, 2019
    
9,149,169
    
$
2,809
    
$
65,573
    
$
26
    
$
(2,088
)
  
$
19,050
    
$
85,370
  
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2020:
                                                        
Comprehensive income (loss)
    
-
      
-
      
-
      
102
      
-
      
(5,329
)
    
(5,227
)
 Share based compensation
    
-
      
-
      
138
      
-
      
-
      
-
      
138
  
BALANCE AT DECEMBER 31, 2020
    
9,149,169
    
$
2,809
    
$
65,711
    
$
128
    
$
(2,088
)
  
$
13,721
    
$
80,281
  
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2021:
                                                        
Comprehensive loss
    
-
      
-
      
-
      
(95
)
    
-
      
(3,562
)
    
(3,657
)
 Share based compensation
    
-
      
-
      
160
      
-
      
-
      
-
      
160
  
BALANCE AT DECEMBER 31, 2021
    
9,149,169
    
$
2,809
    
$
65,871
    
$
33
    
$
(2,088
)
  
$
10,159
    
$
76,784
  
CHANGES DURING THE PERIOD ENDED MARCH 31, 2022 (unaudited):
                                                        
Comprehensive loss
    
-
      
-
      
-
      
(32
)
    
-
      
(1,562
)
    
(1,594
)
Exercise of option
    
11,850
      
11
      
56
      
-
      
-
      
-
      
67
  
Share based compensation
    
-
      
-
      
49
      
-
      
-
      
-
      
49
  
BALANCE AT MARCH 31, 2022 (unaudited)
    
9,161,019
    
$
2,820
    
$
65,976
    
$
1
    
$
(2,088
)
    
8,597
    
$
75,306
  




9


TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

   
Three months ended
    
Year ended
  
   
March 31,
    
December 31,
  
   
2022
    
2021
    
2021
  
   
(Unaudited)
    
(Unaudited)
    
(audited)
  
                   
CASH FLOWS FROM OPERATING ACTIVITIES:
                  
Net income (loss) from continued operations
    
(1,562
)
    
431
      
(3,989
)
                         
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
                        
                         
Depreciation and amortization
    
973
      
1,056
      
4,881
  
 Loss (gain) from change in fair value of derivatives
    
17
      
(9
)
    
(19
)
Provision for doubtful accounts
    
-
      
-
      
248
  
Share in results of affiliated Company
    
27
      
12
      
76
  
Share based compensation
    
49
      
26
      
160
  
 Noncash finance expense
    
(35
)
    
(397
)
    
(73
)
 Lease modification
    
-
      
-
      
(1,315
)
 Increase (decrease) in provision for restructuring expenses
    
(345
)
    
533
      
657
  
Liability in respect of employee rights upon retirement
    
(117
)
    
(127
)
    
94
  
Impairment of fixed assets
    
-
      
-
      
1,820
  
Capital gain from sale of fixed assets
    
(81
)
    
-
      
(468
)
Deferred income taxes, net
    
107
      
(136
)
    
(686
)
Government loan forgiveness
    
-
      
(1,442
)
    
(1,442
)
Changes in operating assets and liabilities:
                        
    Increase in trade accounts receivable
    
(895
)
    
(1,573
)
    
(2,934
)
    Decrease (increase) in other current assets and prepaid expenses
    
(62
)
    
(181
)
    
(959
)
Decrease (increase) in inventory
    
(2,222
)
    
798
      
(681
)
    Decrease in trade accounts payable
    
536
      
(106
)
    
2,571
  
    Increase (decrease) in accrued expenses
    
42
      
560
      
(218
)
    Decrease in other long-term liabilities
    
(161
)
    
(27
)
    
8
  
Net cash provided by (used in) operating activities
  
$
(3,729
)
  
$
(583
)
  
$
(2,269
)
                         
CASH FLOWS FROM INVESTING ACTIVITIES:
                        
Proceeds from sale of property and equipment
    
84
      
-
      
1,163
  
Purchase of property and equipment
    
(4,010
)
    
(7,605
)
    
(16,247
)
Purchase of intangible assets
    
-
      
(285
)
    
(555
)
Cash flows used in investing activities
  
$
(3,926
)
  
$
(7,890
)
  
$
(15,639
)
                         
CASH FLOWS FROM FINANCING ACTIVITIES:
                        
Short-term credit received (Repayments) from banks
    
(3,000
)
    
3,000
      
3,000
  
Proceeds from long-term loans received
    
10,504
      
3,042
      
3,042
  
Exercise of options
    
67
      
-
      
-
  
Cash flows provided by financing activities
 
$
7,571
    
$
6,042
    
$
6,042
  
                         
CASH FLOWS FROM DISCONTINUED ACTIVITIES:
                        
Net profit from discontinued operation
    
-
      
156
      
777
  
Net cash provided by discontinued activities
  
$
-
    
$
156
    
$
777
  
                         
 Net decrease in cash and cash equivalents and restricted cash
    
(84
)
    
(2,275
)
    
(11,089
)
Cash and cash equivalents and restricted cash at beginning of period
    
13,215
      
24,304
      
24,304
  
                         
Cash and cash equivalents and restricted cash at the end of period
  
$
13,131
    
$
22,029
    
$
13,215
  


10

TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
 RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (NON-GAAP) (UNAUDITED)
(In thousands)

   
Three months ended
    
Year ended
  
   
March 31,
    
December 31,
  
   
2022
    
2021
    
2021
  
                   
Net income
  
$
(1,562
)
  
$
587
    
$
(3,562
)
Adjustments:
                        
Share in results and sale of equity investment of affiliated companies
    
27
      
12
      
76
  
Taxes on income (tax benefit)
    
107
      
(131
)
    
(662
)
Financial expense/ (income), net
    
(66
)
    
(397
)
    
540
  
Depreciation and amortization
    
1,025
      
1,105
      
5,420
  
Restructuring expenses
    
927
      
533
      
1,755
  
Discontinued operation income
    
-
      
(156
)
    
(427
)
Share based compensation
    
49
      
26
      
160
  
Adjusted EBITDA
  
$
507
    
$
1,579
    
$
3,300
  


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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.

 
TAT TECHNOLOGIES LTD.
(Registrant)

By: /s/ Ehud Ben-Yair
Ehud Ben-Yair
Chief Financial Officer

Date: May 31, 2022

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