Eltek Ltd. (NASDAQ:ELTK) Q1 2022 Earnings Conference Call May 18, 2022 8:30 AM ET Company Participants Eli Yaffe - Chief Executive Officer Ron Freund - Chief Financial Officer Conference Call Participants Operator Ladies and gentlemen, thank you for standing by. Welcome to the Eltek Ltd First Quarter 2022 Financial Results Conference Call. All participants are present in a listen-only mode. Following management's formal presentation, instructions will be given for the question-and-answer session. [Operator ...

Eltek Ltd. (NASDAQ:ELTK) Q4 2021 Earnings Conference Call March 23, 2022 8:30 AM ET Company Participants Eli Yaffe - CEO Ron Freund - CFO Conference Call Participants Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are designed to help you navigate the audio should the corresponding text be unclear. The machine-assisted output provided is partly edited and is designed as a guide. Operator 00:06 Ladies and gentl ...

Financial Performance - Revenues for the full year of 2021 amounted to $33.8 million, a decrease of 8% compared to $36.7 million in 2020[8] - Net profit for 2021 was $5.0 million, or $0.86 per fully diluted share, compared to a net profit of $2.6 million, or $0.58 per fully diluted share in 2020[10] - Gross margin for 2021 was 20%, with a gross profit of $6.9 million compared to $7.7 million in 2020[9] - In the fourth quarter of 2021, revenues were $9.5 million, unchanged from the fourth quarter of 2020[14] - Net profit for the fourth quarter of 2021 was $3.8 million, or $0.65 per fully diluted share, compared to $0.8 million, or $0.16 per fully diluted share in the fourth quarter of 2020[15] - EBITDA for 2021 was $3.8 million, representing 11% of total sales, compared to $4.6 million in 2020[11] - GAAP net income for the three months ended December 31, 2021, was $3,836,000, compared to $766,000 for the same period in 2020, representing a significant increase of 401%[30] - Non-GAAP EBITDA for the twelve months ended December 31, 2021, was $3,771,000, down 18% from $4,608,000 in 2020[30] Cash Flow and Investments - The company ended 2021 with cash balances of approximately $9.3 million, up from $4.7 million at the end of 2020[13] - Cash flows from operating activities for the twelve months ended December 31, 2021, provided $3,875,000, an increase from $3,252,000 in 2020[32] - Net cash used in investing activities for the twelve months ended December 31, 2021, was $1,647,000, compared to $1,140,000 in 2020[32] - Net cash provided by financing activities for the twelve months ended December 31, 2021, was $2,124,000, an increase from $814,000 in 2020[32] - Cash and cash equivalents at the end of the period on December 31, 2021, were $9,283,000, up from $4,735,000 at the end of 2020[32] Operational Efficiency and Future Outlook - The company built a strong backlog for 2022, including a $1.4 million purchase order from a defense customer[6] - Eltek's working capital as of the end of 2021 was $13.3 million, indicating improved financial condition[7] - The company plans to continue investing in equipment and machinery to enhance operational efficiency[7] Depreciation and Compensation - Depreciation and amortization for the twelve months ended December 31, 2021, totaled $1,781,000, compared to $1,592,000 in 2020[30] - Stock-based compensation for the three months ended December 31, 2021, was $74,000, up from $30,000 in the same period of 2020[32] Trade Receivables and Adjustments - The company reported a decrease in trade receivables of $301,000 for the three months ended December 31, 2021, compared to a decrease of $2,054,000 in the same period of 2020[32] - The effect of translation adjustments for the three months ended December 31, 2021, was an increase of $189,000, compared to $152,000 in 2020[32]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Ordinary Shares, NIS 3.00 Nominal Value ELTK NASDAQ Capital Market FORM 20-F For the fiscal year ended December 31, 2021 ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRAN ...

Financial Performance - Revenues for the full year of 2021 amounted to $33.8 million, a decrease of 8% compared to $36.7 million in 2020[8] - Net profit for 2021 was $5.0 million, or $0.86 per fully diluted share, compared to a net profit of $2.6 million, or $0.58 per fully diluted share in 2020[10] - Gross margin for 2021 was 20%, with gross profit of $6.9 million compared to $7.7 million in 2020[9] - In the fourth quarter of 2021, revenues were $9.5 million, unchanged from the fourth quarter of 2020[14] - Net profit for the fourth quarter of 2021 was $3.8 million, or $0.65 per fully diluted share, compared to $0.8 million, or $0.16 per fully diluted share in the fourth quarter of 2020[15] - Operating profit for the full year 2021 was $1.9 million, compared to $3.0 million in 2020[10] - EBITDA for the full year 2021 was $3.8 million, down from $4.6 million in 2020[11] - Non-GAAP EBITDA for the twelve months ended December 31, 2021, was $3,771,000, down 18% from $4,608,000 in 2020[30] Cash Flow and Investments - The company ended 2021 with cash balances of approximately $9.3 million, up from $4.7 million at the end of 2020[13] - Cash flows from operating activities for the twelve months ended December 31, 2021, provided $3,875,000, an increase from $3,252,000 in 2020[32] - The company reported a net cash used in investing activities of $1,647,000 for the twelve months ended December 31, 2021, compared to $1,140,000 in 2020[32] - Cash and cash equivalents at the end of the period for December 31, 2021, were $9,283,000, up from $4,735,000 at the end of December 31, 2020[32] - The net cash provided by financing activities for the twelve months ended December 31, 2021, was $2,124,000, compared to $814,000 in 2020[32] Operational Highlights - The company built a strong backlog for 2022, including a $1.4 million purchase order from a defense customer[6] - The company aims to continue expanding its customer base and investing in equipment and machinery in 2022[7] Other Financial Metrics - GAAP net income for the three months ended December 31, 2021, was $3,836,000, compared to $766,000 for the same period in 2020, representing a significant increase of 402%[30] - Depreciation and amortization for the twelve months ended December 31, 2021, totaled $1,781,000, an increase from $1,592,000 in 2020[30] - The company experienced a decrease in trade receivables of $2,260,000 for the twelve months ended December 31, 2021, compared to a decrease of $956,000 in 2020[32] - The company recorded an increase in long-term tax receivables of $1,013,000 for the twelve months ended December 31, 2021[32] - The effect of translation adjustments resulted in a net increase of $196,000 for the twelve months ended December 31, 2021[32]

Eltek Ltd. (NASDAQ:ELTK) Q3 2021 Earnings Conference Call November 17, 2021 8:30 AM ET Company Participants Eli Yaffe - CEO Alon Mualem - CFO Conference Call Participants Dean Chin - RU Group International Operator Ladies and gentlemen, thank you for standing by. Welcome to the Eltek Ltd. Third Quarter 2021 Financial Results Conference Call. All participants are at present in a listen-only mode. Following management's formal presentation, instructions will be given for the question-and-answer session. [Oper ...

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Third Quarter 2021 Overview](index=1&type=section&id=Third%20Quarter%202021%20Overview) Eltek reported a decrease in Q3 2021 revenue, a net loss, and lower EBITDA, with cash and cash equivalents at **8.9 million USD** Q3 2021 Financial Highlights Comparison | Metric | Q3 2021 (million USD) | Q3 2020 (million USD) | | :------------- | :-------------------- | :-------------------- | | Revenue | 8.0 | 9.3 | | Net Profit (Loss) | (0.026) | 0.598 | | EBITDA | 0.553 | 1.0 | - As of September 30, 2021, cash and cash equivalents totaled **8.9 million USD**[2](index=2&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Eli Yaffe attributed Q3 performance decline to fewer working days and currency impact, highlighting investments in equipment and R&D for future growth - Third quarter performance decline was attributed to fewer working days and increased expenses due to the stronger New Israeli Shekel against the USD[3](index=3&type=chunk) - The company invested **1.4 million USD** in new equipment and undertook multiple R&D projects in the first nine months of 2021 to enhance manufacturing capabilities and competitiveness[3](index=3&type=chunk) - As of September 30, 2021, the company had **12.5 million USD** in positive working capital and **3.4 million USD** in operating cash flow for the first nine months, indicating improved balance sheet and cash flow positions[4](index=4&type=chunk) [Financial Highlights](index=2&type=section&id=Financial%20Highlights) [Third Quarter 2021 vs. Third Quarter 2020](index=2&type=section&id=Third%20Quarter%202021%20vs.%20Third%20Quarter%202020) Eltek experienced year-over-year declines in Q3 2021 revenue, gross profit, operating profit, net profit (turning to loss), and EBITDA, alongside reduced operating cash flow Q3 2021 Financial Highlights Comparison | Metric | Q3 2021 (million USD) | Q3 2020 (million USD) | Change (YoY) | | :------------------------- | :-------------------- | :-------------------- | :----------- | | Revenue | 8.0 | 9.3 | -14.0% | | Gross Profit | 1.4 (17.5% of Revenue) | 1.8 (19.7% of Revenue) | -22.2% | | Operating Profit | 0.065 | 0.638 | -89.8% | | Net Profit (Loss) | (0.026) | 0.598 | -104.3% | | EBITDA | 0.553 | 1.0 | -44.7% | | Cash Flow from Operations | 0.598 | 0.873 | -31.5% | [First Nine Months 2021 vs. First Nine Months 2020](index=2&type=section&id=First%20Nine%20Months%202021%20vs.%20First%20Nine%20Months%202020) For the first nine months of 2021, Eltek saw declines across revenue, gross profit, operating profit, net profit, and EBITDA, with diluted EPS falling to **0.17 USD**, though cash and cash equivalents significantly increased to **8.9 million USD** First Nine Months 2021 Financial Highlights Comparison | Metric | First Nine Months 2021 (million USD) | First Nine Months 2020 (million USD) | Change (YoY) | | :------------------------- | :----------------------------------- | :----------------------------------- | :----------- | | Revenue | 24.3 | 27.2 | -10.7% | | Gross Profit | 4.9 (20.2% of Revenue) | 5.5 (20.3% of Revenue) | -10.9% | | Operating Profit | 1.1 | 2.1 | -47.6% | | Net Profit | 1.0 | 1.8 | -44.4% | | Diluted Net Income Per Common Share | 0.17 | 0.42 | -59.5% | | EBITDA | 2.5 | 3.2 | -21.9% | | Cash Flow from Operations | 3.4 | 3.7 | -8.1% | | Cash and cash equivalents (period-end) | 8.9 | 4.7 (2020年12月31日) | +89.4% | [Company Information](index=3&type=section&id=Company%20Information) [Conference Call Details](index=3&type=section&id=Conference%20Call%20Details) Eltek held a conference call on November 17, 2021, to discuss financial results, hosted by CEO Eli Yaffe and CFO Alon Mualem, with replay available online - The conference call was held on November 17, 2021, at 8:30 AM ET, hosted by CEO Eli Yaffe and CFO Alon Mualem[8](index=8&type=chunk) Conference Call Dial-in Numbers | Region | Number | | :----------- | :------------ | | USA | 1-888-723-3164| | Israel | 03-9180691 | | International | +972-3-9180691| - A replay of the conference call will be available on Eltek's website (http://www.nisteceltek.com) in the Investor Information section for 30 days[9](index=9&type=chunk) [About Eltek](index=3&type=section&id=About%20Eltek) Eltek is a global leader in manufacturing and supplying complex, high-quality PCBs, HDI, multilayer, and rigid-flex boards for high-end markets, headquartered in Israel since 1970 - Eltek is a global manufacturer and supplier of Printed Circuit Boards (PCBs) and a leader in the Israeli industry[10](index=10&type=chunk) - The company specializes in manufacturing and supplying complex, high-quality PCBs, HDI, multilayer, and rigid-flex boards for leading customers in high-end markets such as defense, aerospace, and medical[10](index=10&type=chunk) - Founded in 1970, Eltek's headquarters, R&D, production, and marketing centers are in Israel, operating through a North American subsidiary and global agents and distributors[11](index=11&type=chunk) [Financial Disclosures](index=4&type=section&id=Financial%20Disclosures) [Use of Non-GAAP Financial Information](index=4&type=section&id=Use%20of%20Non-GAAP%20Financial%20Information) The company reports financial results in accordance with US GAAP and provides non-GAAP EBITDA as a supplementary metric for internal assessment and investor analysis - The company reports financial results in accordance with US GAAP and provides non-GAAP EBITDA as a supplementary metric[13](index=13&type=chunk) - EBITDA is not a GAAP measure nor a substitute for it, but the company uses it internally for operational assessment and management, and to assist investors with additional financial analysis[13](index=13&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward%20Looking%20Statement) Forward-looking statements in the press release involve risks and uncertainties, including future results, COVID-19 impact, product development, market demand, competition, and economic conditions - Forward-looking statements involve risks and uncertainties, including expected future quarterly results and the impact of the COVID-19 pandemic on the economy and operations[14](index=14&type=chunk) - Other risk factors include product and technology development, rapid technological change, product demand, competitive products and pricing, market acceptance, sales cycles, and evolving economic conditions[14](index=14&type=chunk) [Investor Contact](index=4&type=section&id=Investor%20Contact) Investors can contact CFO Alon Mualem for further information - Investor Contact: Alon Mualem, Chief Financial Officer, Email: alonm@nisteceltek.com, Phone: +972-3-9395023[15](index=15&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) The consolidated statements of operations present Eltek's revenue, costs, gross profit, expenses, operating profit, net profit (loss), and EPS for Q3 and the first nine months of 2021 and 2020 Eltek Ltd. Consolidated Statements of Operations (in thousand USD, except per share data) | Metric | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :---------------------------------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Revenue | 7,965 | 9,256 | 24,302 | 27,206 | | Cost of Revenue | (6,570) | (7,433) | (19,397) | (21,679) | | **Gross Profit** | **1,395** | **1,823** | **4,905** | **5,527** | | Selling, General and Administrative Expenses | (1,285) | (1,183) | (3,706) | (3,467) | | Research and Development Expenses, net | (45) | (2) | (55) | - | | **Operating Profit** | **65** | **638** | **1,144** | **2,060** | | Financial Expenses, net | (121) | (19) | (101) | (158) | | Other Income (Expenses), net | 44 | (10) | 41 | (10) | | **Profit Before Taxes** | **(12)** | **609** | **1,084** | **1,892** | | Taxes on Income | (14) | (11) | (64) | (50) | | **Net Profit (Loss)** | **(26)** | **598** | **1,020** | **1,842** | | Earnings Per Share | | | | | | Basic and Diluted Net Income Per Common Share | (0.00) | 0.14 | 0.17 | 0.42 | | Weighted Average Common Shares Used in Computing Basic Net Income Per Common Share (in thousand shares) | 5,840 | 4,380 | 5,840 | 4,380 | | Weighted Average Common Shares Used in Computing Diluted Net Income Per Common Share (in thousand shares) | 5,840 | 4,380 | 5,871 | 4,380 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets show Eltek's assets, liabilities, and shareholders' equity as of September 30, 2021, and December 31, 2020, indicating growth in total assets and shareholders' equity Eltek Ltd. Consolidated Balance Sheets (in thousand USD) | Metric | Sep 30, 2021 | Dec 31, 2020 | | :------------------------------------------------------------------------------------------------ | :----------- | :----------- | | **ASSETS** | | | | **CURRENT ASSETS** | | | | Cash and cash equivalents | 8,885 | 4,735 | | Accounts receivable: trade, net of allowance for doubtful accounts | 6,441 | 9,062 | | Other | 901 | 700 | | Inventories | 4,216 | 3,704 | | Prepaid expenses | 269 | 619 | | **Total current assets** | **20,712** | **18,820** | | **NON-CURRENT ASSETS** | | | | Restricted deposits | 218 | 62 | | Severance pay fund | 64 | 64 | | Operating lease right-of-use assets | 8,802 | 8,948 | | **Total non-current assets** | **9,084** | **9,074** | | Property and equipment, net of accumulated depreciation | 7,414 | 7,263 | | **TOTAL ASSETS** | **37,210** | **35,157** | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | **CURRENT LIABILITIES** | | | | Short-term credit and current maturities of long-term debt | 595 | 676 | | Accounts payable: trade | 3,523 | 4,452 | | Other | 3,230 | 3,831 | | Short-term operating lease liabilities | 852 | 742 | | **Total current liabilities** | **8,200** | **9,701** | | **NON-CURRENT LIABILITIES** | | | | Long-term debt, excluding current maturities | 3,965 | 1,495 | | Employee severance benefits | 332 | 338 | | Deferred tax liability | 107 | 84 | | Long-term operating lease liabilities | 8,057 | 8,272 | | **Total non-current liabilities** | **12,461** | **10,189** | | **EQUITY** | | | | Ordinary shares, NIS 3.0 par value, 10,000,000 shares authorized, 5,840,357 shares issued and outstanding | 5,296 | 5,296 | | Additional paid-in capital | 22,846 | 22,846 | | Accumulated foreign currency translation adjustment | 3,103 | 3,153 | | Capital reserve | 1,394 | 1,084 | | Accumulated deficit | (16,090) | (17,112) | | **Total shareholders' equity** | **16,549** | **15,267** | | **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | **37,210** | **35,157** | [Unaudited Non-GAAP EBITDA Reconciliations](index=7&type=section&id=Unaudited%20Non-GAAP%20EBITDA%20Reconciliations) The unaudited non-GAAP EBITDA reconciliations provide a reconciliation between Eltek's GAAP net profit (loss) and non-GAAP EBITDA for Q3 and the first nine months of 2021 and 2020 Eltek Ltd. Unaudited Non-GAAP EBITDA Reconciliations (in thousand USD) | Metric | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :------------------------------------ | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | GAAP Net Profit (Loss) | (26) | 598 | 1,020 | 1,842 | | Add back: | | | | | | Financial expenses, net | 121 | 19 | 101 | 158 | | Income tax expense | 14 | 11 | 64 | 50 | | Depreciation and amortization | 444 | 390 | 1,330 | 1,176 | | **Non-GAAP EBITDA** | **553** | **1,018** | **2,515** | **3,226** | [Consolidated Statements of Cash Flow](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flow) The consolidated statements of cash flow detail Eltek's cash flows from operating, investing, and financing activities, and period-end cash and cash equivalents for Q3 and the first nine months of 2021 and 2020 Eltek Ltd. Consolidated Statements of Cash Flow (in thousand USD) | Metric | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :---------------------------------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | **CASH FLOWS FROM OPERATING ACTIVITIES:** | | | | | | Net profit | (26) | 598 | 1,020 | 1,842 | | Adjustments | 578 | 427 | 1,663 | 1,272 | | Changes in working capital | 46 | (152) | 760 | 636 | | **Net cash provided by operating activities** | **598** | **873** | **3,443** | **3,750** | | **CASH FLOWS FROM INVESTING ACTIVITIES:** | | | | | | Purchase of property and equipment | (824) | (348) | (1,362) | (802) | | Restricted deposits | (2) | (1) | (156) | (58) | | **Net cash used in investing activities** | **(826)** | **(349)** | **(1,518)** | **(860)** | | **CASH FLOWS FROM FINANCING ACTIVITIES:** | | | | | | Short-term bank credit, net | - | (1,163) | (377) | (1,928) | | Repayment of long-term bank loans | (111) | (37) | (188) | (145) | | Proceeds from long-term loans | - | - | 3,062 | 1,141 | | **Net cash used in financing activities** | **(111)** | **(1,287)** | **2,212** | **(1,894)** | | Effect of exchange rate changes | 55 | 7 | 13 | 27 | | **Net increase (decrease) in cash and cash equivalents** | **(284)** | **(756)** | **4,150** | **1,023** | | Cash and cash equivalents at beginning of period | 9,169 | 3,407 | 4,735 | 1,628 | | **Cash and cash equivalents at end of period** | **8,885** | **2,651** | **8,885** | **2,651** |

Call Start: 08:00 January 1, 0000 8:14 AM ET Eltek Ltd. (NASDAQ:ELTK) Q2 2021 Earnings Conference Call August 18, 2021 08:00 ET Company Participants Eli Yaffe - Chief Executive Officer Alon Mualem - Chief Financial Officer & Vice President of Finance Conference Call Participants Operator Ladies and gentlemen, thank you for standing by. Welcome to the Eltek Ltd. Second Quarter 2021 Financial Results Conference Call. All participants are at present in listen-only mode. Following management's formal presentati ...

Eltek Ltd (NASDAQ:ELTK) Q1 2021 Earnings Conference Call May 19, 2021 8:30 AM ET Company Participants Eli Yaffe - CEO Alon Mualem - CFO & VP, Finance Conference Call Participants Operator Ladies and gentlemen, thank you for standing by. Welcome to the Eltek Ltd. First Quarter 2021 Financial Results Conference Call. [Operator Instructions]. As a reminder, this conference is being recorded. Before I turn over the call to Mr. Eli Yaffe, Chief Executive Officer; and Alon Mualem, Chief Financial Officer; I'd lik ...

Eltek Ltd. (NASDAQ:ELTK) Q4 2020 Earnings Conference Call March 25, 2021 8:30 AM ET Company Participants Eli Yaffe - Chief Executive Officer Alon Mualem - Chief Financial Officer Conference Call Participants Operator Ladies and gentlemen, thank you for standing by. Welcome to the Eltek Limited Fourth Quarter and Full Year 2020 Financial Results Conference Call. All participants are at present in a listen-only mode. Following management's formal presentation, instructions will be given for the question-and-a ...