zk1415917.htm
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 December 2014

TAT TECHNOLOGIES LTD.
(Name of Registrant)
    
  P.O.BOX 80, Gedera 70750 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 x    Form 40-F o

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): o

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): o

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 o    No x

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 December 1, 2014 re TAT Technologies Ltd. Reports Third Quarter 2014 Results.

 
2
 
 
ITEM 1

Press Release
Source: TAT Technologies Limited

TAT Technologies Reports Third Quarter 2014 Results

GEDERA, Israel, Monday, December 1, 2014 - TAT Technologies Ltd. (NASDAQ: TATT - News) (“the Company”), a leading provider of services and products to the commercial and military aerospace and ground defense industries, reported today its results for the three month and nine month periods ended September 30, 2014.

Mr. Itsik Maaravi, TAT’s President & CEO commented “The first nine months of 2014 were a challenging period for the TAT group in terms of revenues and profits mainly due to changes in product mix and delays in some orders. Continuously, we increase our marketing and sales efforts, as well as our activities in improving our production efficiency and the responsiveness and support to our customers. Sharp increase in the USD/NIS exchange rate at the end of the third quarter had a negative impact on the company’s financial expenses as the company recorded losses on some outstanding currency hedging instruments. The recent devaluation of the NIS vs. the USD is expected to favorably impact the company’s operational expenses quoted in NIS beginning in the fourth quarter. During the third quarter we announced a significant contract awarded to our Piedmont subsidiary for the maintenance of landing gear systems of the Embraer E-175 fleet of Republic Airlines. We believe that such contract will position us as a world leading maintenance service provider for Embraer E – 170/190 Landing Gear as the fleet is just entering the first cycle of major overhaul requirements”.

Financial Highlights for the Third quarter of 2014:

●
Total Revenue: $20.3 million compared to $18.9 million for the third quarter of 2013.

●
Operating income: $0.6 million compared to $0.9 million for the third quarter of 2013.

·
Net income (loss): net loss of $(0.4) million compared to net income $0.8 million for the third quarter of 2013.

●
Earnings (loss) per share basic and diluted: loss of $(0.05) per share compared to earnings of $0.09 per share in the third quarter of 2013.

●
Cash and cash equivalents and short-term bank deposits: $30.5 million compared to $29.9 million as of December 31, 2013.

 
3
 
 
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 three segments: (i) Original Equipment Manufacturing or “OEM” of Heat Management Solutions (ii) Heat Transfer Services and Products and (iii) Maintenance, Repair and Overhaul or “MRO” services of Aviation Components.
 
TAT’s activities in the area of OEM of Heat Management Solutions primarily include the design, development, manufacture and sale of (i) 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) environmental control and cooling systems on board aircraft and for ground applications; and (iii) a variety of other electronic and mechanical aircraft accessories and systems such as pumps, valves, power systems and turbines.

TAT’s activities in the area of Heat Transfer Services and Products include the maintenance, repair and overhaul of heat transfer equipment and in a lesser extent, the manufacturing of certain heat transfer products. TAT’s Limco subsidiary operates FAA certified repair station, which provides heat transfer MRO services and products 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 maintenance, repair and overhaul of APUs, Landing Gear 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.
 
TAT also holds approximately 28% of the equity of First Aviation Services, a world-wide service provider to the aerospace industry and a one-stop-shop for maintenance, repair and overhaul services (for propellers and landing gear) for the General Aviation Industry.
 
For more information of TAT Technologies, please visit our web-site: www.tat-technologies.com

Tiko Gadot – CFO
TAT Technologies Ltd.
Tel: 972-8-862-8500
TikoG@tat-technologies.com

 
4
 
 
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)

   
September 30,
    
December 31,
  
   
2014
    
2013
  
   
(unaudited)
    
(audited)
  
ASSETS
            
Current Assets:
            
Cash and cash equivalents
   $ 20,399     $ 19,814  
Short-term bank deposits
     10,128       10,059  
Accounts receivable-trade (net of allowance for doubtful accounts of  $123 as of September 30, 2014 and December 31, 2013)
     14,305       18,387  
Other accounts receivable and prepaid expenses
     5,572       3,314  
Inventory
     30,794       29,395  
Assets held for sale
     -       9,959  
                 
Total current assets
     81,198       90,928  
                 
Long-term assets:
                
Investment in an affiliated company
     2,511       2,289  
Funds in respect of employee rights upon retirement
     2,820       2,900  
Long-term deferred tax
     1,392       1,616  
Property, plant and equipment, net
     11,589       11,147  
                 
Total Long-term assets
     18,312       17,952  
                 
Total assets
   $ 99,510     $ 108,880  
                 
LIABILITIES AND EQUITY
                
                 
Current Liabilities:
                
Short term bank loan and current maturities of long-term loans
   $ -     $ 910  
Trade accounts payables
     4,577       6,941  
Other accounts payable and accrued expenses
     6,443       5,815  
Liabilities held for sale
     -       3,428  
                 
Total current liabilities
     11,020       17,094  
                 
Long-term liabilities:
                
Other accounts payable
     40       58  
Liability in respect of employee rights upon retirement
     3,028       3,140  
Long-term deferred tax liability
     1,111       1,058  
                 
Total long-term liabilities
     4,179       4,256  
                 
EQUITY:
                
Share capital
     2,792       2,792  
Additional paid-in capital
     64,482       64,454  
Treasury stock at cost
     (2,088 )     (2,088 )
Accumulated other comprehensive loss
     -       (429 )
Retained earnings
     19,125       20,840  
Total TAT Technologies shareholders' equity
     84,311       85,569  
Non-controlling interest
     -       1,961  
                 
Total equity
     84,311       87,530  
                 
Total liabilities and equity
   $ 99,510     $ 108,880  

 
6
 
 
TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)
 
   
Three months ended
    
Nine months ended
    
Year ended
  
   
September 30,
    
December 31,
  
   
2014
    
2013
    
2014
    
2013
    
2013
  
   
(unaudited)
    
(audited)
  
Revenues:
  
 
                          
Products
   $ 7,483     $ 7,578     $ 23,015     $ 23,592     $ 34,364  
Services
     12,841       11,379       36,326       34,763       45,187  
      20,324       18,957       59,341       58,355       79,551  
                                         
Cost and operating expenses:
                                        
Products
     5,911       6,013       17,511       17,700       24,892  
Services
     10,458       8,875       30,114       26,773       35,987  
      16,369       14,888       47,625       44,473       60,879  
Gross Profit
     3,955       4,069       11,716       13,882       18,672  
                                         
Operating expenses:
                                        
Research and development, net
     324       177       885       605       713  
Selling and marketing
     776       768       2,415       2,334       3,150  
General and administrative
     2,216       2,205       6,771       6,957       9,512  
Other income
     (4 )     (6 )     (11 )     (13 )     (20 )
      3,312       3,144       10,060       9,883       13,355  
Operating income from continuing operations
     643       925       1,656       3,999       5,317  
                                         
Financial income (expenses), net
     (812 )     (26 )     (783 )     7       (50 )
Loss from dilution of interests in affiliated company
     -       -       (45 )     -       -  
                                         
Income (loss) from continuing operations before taxes on income
     (169 )     899       828       4,006       5,267  
                                         
Taxes on income
     315       245       810       1,181       1,041  
                                         
Net income (loss) from continuing operations after taxes on income
     (484 )     654       18       2,825       4,226  
Share in results of affiliated company
     48       18       267       1,116       1,025  
                                         
Net income (loss) from continuing operations
     (436 )     672       285       3,941       5,251  
Net income (loss) from discontinued operations, net of tax
     -       119       -       (423 )     (2,429 )
                                         
Net income (loss) attributable to TAT Technologies Ltd. shareholders
   $ (436 )   $ 791     $ 285     $ 3,518     $ 2,822  
                                         
Basic and diluted income (loss) per share
                                        
Net income from continuing operations per share attributable to controlling interest
   $ (0.05 )   $ 0.08     $ 0.03     $ 0.45     $ 0.60  
Loss from discontinued operations per share attributable to controlling interest
     -       0.01       -       (0.05 )     (0.28 )
    $ (0.05 )   $ 0.09     $ 0.03     $ 0.40     $ 0.32  
                                         
Weighted average number of shares outstanding
                                        
Basic
     8,805,236       8,798,570       8,805,236       8,798,570       8,799,237  
Diluted
     8,805,236       8,798,570       8,830,610       8,798,570       8,808,920  

 
7
 

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

   
Three months ended
    
Nine months ended
    
Year ended December 31,
  
   
September 30,
        
   
2014
    
2013
    
2014
    
2013
    
2013
  
   
(unaudited)
    
(audited)
  
CASH FLOWS FROM OPERATING ACTIVITIES:
                              
Net (loss) income
   $ (436 )   $ 791     $ 285     $ 3,518     $ 2,822  
Net income (loss) from discontinued operations
     -       119       -       (423 )     (2,429 )
Income (loss) from continuing operations
     (436 )     672       285       3,941       5,251  
                                         
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
     351       1,166       883       1,508       1,243  
                                         
Changes in operating assets and liabilities
     (1,521 )     (391 )     (526 )     944       709  
                                         
Net cash provided by (used in) operating activities
     (1,606 )     1,447       642       6,393       7,203  
                                         
Cash flows provided by (used in) investing activities
     (253 )     (616 )     2,852       390       70  
                                         
Cash flows used in financing activities
     -       (592 )     (2,909 )     (2,905 )     (2,936 )
                                         
Cash flows provided by (used in) discontinued operations
     -       (189 )     -       778       514  
                                         
Net increase (decrease) in cash and cash equivalents
     (1,859 )     50       585       4,656       4,851  
                                         
Cash and cash equivalents at beginning of period
     22,258       22,392       19,814       17,786       17,786  
                                         
Cash and cash equivalents at end of period
     20,399       22,442       20,399       22,442       22,637  
Less- Cash and cash equivalents of discontinued operations at end of period
     -       3,087       -       3,087       2,823  
                                         
Cash and cash equivalents of continuing operations at end of period
   $ 20,399     $ 19,355     $ 20,399     $ 19,355     $ 19,814  


 
8
 
 
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/ Tiko Gadot  
   
Tiko Gadot
  
   
Chief Financial Officer
  
       
Date: December 1, 2014
 

9