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TAT Technologies(TATT) - 2024 Q4 - Annual Report
2025-03-26 20:07
[Introduction](index=6&type=section&id=INTRODUCTION) TAT Technologies Ltd. provides aerospace and defense solutions, including thermal management, power, actuation, and MRO services, operating through four units and facing macroeconomic and geopolitical challenges - TAT operates through four main business units: **TAT Israel (OEM)**, **Limco (Heat Transfer MRO/OEM)**, **Piedmont (APU & Landing Gear MRO)**, and **Turbochrome (Jet Engine MRO)**[19](index=19&type=chunk) - The company serves major clients such as **Boeing, Embraer, Lockheed Martin, Collins, the U.S. Armed Forces, and various airlines**[20](index=20&type=chunk) - As of December 31, 2024, TAT employed **634 people** across its facilities in Israel and the United States[21](index=21&type=chunk) - The company faces negative impacts from macroeconomic conditions, including **inflation, rising interest rates, and supply chain pressures**, which are expected to continue into 2025[28](index=28&type=chunk) - Geopolitical events, particularly the conflicts involving **Russia/Ukraine and Israel/Hamas**, have increased global economic uncertainty[29](index=29&type=chunk) PART I [Item 3. Key Information](index=9&type=section&id=Item%203.%20Key%20Information) This section details significant investment risks, including high industry regulation, intense competition, customer concentration, reliance on government contracts, and geopolitical instability affecting Israeli operations [Risk Factors](index=9&type=section&id=D.%20Risk%20Factors) Key risks include intense competition, customer concentration, reliance on government contracts, share price volatility, and significant geopolitical instability impacting Israeli operations - Five major customers accounted for approximately **29.9% of TAT's revenues in 2024**, with a single MRO customer representing **12.8% of total revenues**[54](index=54&type=chunk) - Sales to the U.S. and Israeli governments constituted **12.4% of revenues in 2024**, up from 8.3% in 2023 and 6.3% in 2022[56](index=56&type=chunk) - The company depends on a limited number of suppliers, such as **Honeywell for APU spare parts**, and has a ten-year agreement with Honeywell for commercial MRO applications[61](index=61&type=chunk) - The ongoing war in Israel and related hostilities with Hamas, Hezbollah, and Iran pose a significant risk to the company's business, operations, and employee availability due to military reserve duties[102](index=102&type=chunk)[105](index=105&type=chunk)[112](index=112&type=chunk) - The company's principal shareholder, FIMI Funds, beneficially owns approximately **26.6% of outstanding shares**, and substantial sales by FIMI could depress the share price[101](index=101&type=chunk) [Item 4. Information on the Company](index=32&type=section&id=Item%204.%20Information%20on%20the%20Company) This section provides a comprehensive overview of TAT Technologies, detailing its history, corporate development, business operations across four segments, strategy, customers, and regulatory environment [Business Overview](index=32&type=section&id=A.%20Business%20Overview) TAT operates in four segments, focusing on enhancing OEM capabilities, expanding MRO services, and increasing market share, with a significant backlog of $42 million in purchase orders and $429 million from long-term agreements - The company's business strategy focuses on enhancing OEM capabilities, expanding MRO services, increasing market share, creating synergy among group members, and pursuing both organic growth and M&A[171](index=171&type=chunk)[174](index=174&type=chunk) - Piedmont has strategic agreements with Honeywell for a **10-year license to MRO key APU lines** for Boeing (B777, B737) and Airbus (A320 family) platforms[161](index=161&type=chunk) - In June 2020, Turbochrome decided to discontinue its JT8D engine blades reconditioning activity to focus on newer engine types; this activity became immaterial by 2023[169](index=169&type=chunk) Backlog as of December 31, 2024 | Backlog Component | Amount (in millions) | | :--- | :--- | | Outstanding Purchase Orders | $42 | | Estimated Sales from Long-Term Agreements | $429 | - The joint venture in Russia, TAT-Engineering LLC, has materially limited its MRO services due to sanctions preventing it from purchasing heat-exchange cores from its US subsidiary, Limco[170](index=170&type=chunk) [Government Regulations](index=62&type=section&id=B.%20Government%20Regulations) The company's operations are subject to extensive regulations, including military export permits in Israel, U.S. ITAR, aerospace certifications (FAA, EASA), worker safety laws, and environmental regulations - Export of military-related products from Israel requires permits from the Israeli Ministry of Defense[257](index=257&type=chunk) - U.S. subsidiaries' export of defense products and technical data is subject to U.S. government approvals under ITAR[259](index=259&type=chunk) - The company must maintain certifications from aerospace authorities like the FAA and EASA to manufacture, sell, and service aircraft parts[260](index=260&type=chunk) [Organizational Structure](index=65&type=section&id=C.%20Organizational%20Structure) TAT Technologies Ltd. is an Israeli company with two wholly-owned subsidiaries: Limco-Piedmont Inc. and Turbochrome Ltd - The company has two wholly-owned subsidiaries, Limco-Piedmont Inc. and Turbochrome Ltd., and holds a **51% stake in the joint venture TAT-Engineering LLC**[271](index=271&type=chunk)[662](index=662&type=chunk) [Property, Plants and Equipment](index=65&type=section&id=D.%20Property,%20Plants%20and%20Equipment) The company operates from key facilities including a leased 138,000 sq. ft. plant in Kiryat Gat, Israel, an owned 55,000 sq. ft. plant in Tulsa, Oklahoma, and leased facilities in North Carolina - The company completed the transfer of its heat exchanger activity from Gedera, Israel to facilities in Tulsa, Oklahoma and Kiryat Gat, Israel in 2022[272](index=272&type=chunk) - Key facilities include a leased **138,000 sq. ft. plant in Kiryat Gat, Israel**; an owned **55,000 sq. ft. plant in Tulsa, OK**; and leased facilities in Greensboro and Kernersville, NC[272](index=272&type=chunk)[274](index=274&type=chunk)[277](index=277&type=chunk) [Operating and Financial Review and Prospects](index=67&type=section&id=Item%205.%20Operating%20and%20Financial%20Review%20and%20Prospects) This section analyzes TAT's financial performance, showing 2024 revenue growth to $152.1 million, improved profitability, and a decrease in cash to $7.4 million due to increased working capital needs [Results of Operations](index=74&type=section&id=Results%20of%20Operations) TAT's 2024 total revenues grew 33.7% to $152.1 million, with all segments contributing to growth, leading to improved gross profit margin and increased operating and net income Consolidated Results of Operations (in thousands) | Metric | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Total Revenues | $152,116 | $113,794 | $84,556 | | Gross Profit | $33,014 | $22,468 | $15,928 | | Operating Income (Loss) | $12,502 | $6,075 | $(1,775) | | Net Income (Loss) | $11,167 | $4,672 | $(1,562) | Revenues by Segment (in thousands) | Segment | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | OEM of heat transfer solutions | $36,466 | $27,555 | $21,844 | | MRO services for heat transfer | $43,863 | $32,995 | $24,796 | | MRO services for aviation components | $67,475 | $50,760 | $35,879 | | Overhaul and coating of jet engine | $7,392 | $6,854 | $5,770 | Revenues by Geography (in thousands) | Geography | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | United States | $104,326 | $81,999 | $56,570 | | Israel | $7,868 | $7,697 | $7,162 | | Other | $39,922 | $24,098 | $20,824 | [Liquidity and Capital Resources](index=82&type=section&id=Liquidity%20and%20Capital%20Resources) As of Dec 31, 2024, cash decreased to $7.4 million due to increased working capital, despite a $10 million private placement, with net cash used in operating activities at $5.8 million - In September 2024, TAT completed a private placement, raising net proceeds of approximately **NIS 36.5 million (approx. $10 million)**[344](index=344&type=chunk)[773](index=773&type=chunk) Cash and Cash Equivalents | Date | Amount (in millions) | | :--- | :--- | | Dec 31, 2024 | $7.4 | | Dec 31, 2023 | $16.9 | Cash Flow Summary (in millions) | Cash Flow Activity | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | $(5.8) | $2.3 | $(4.9) | | Net Cash from Investing Activities | $(3.9) | $(3.6) | $(16.1) | | Net Cash from Financing Activities | $0.2 | $10.2 | $15.8 | - The decrease in cash was primarily due to an increase in working capital, including a **$17.1 million increase in inventory** and a **$9.7 million increase in trade accounts receivable**[346](index=346&type=chunk)[355](index=355&type=chunk) [Tabular Disclosure of Contractual Obligations](index=89&type=section&id=D.%20Tabular%20Disclosure%20of%20Contractual%20Obligations) As of December 31, 2024, total contractual obligations are $40.5 million, comprising $2.3 million in operating leases and $38.2 million in purchase commitments, with most due within one year Contractual Obligations as of Dec 31, 2024 (in thousands) | Contractual Obligations | Total | Less than 1 year | 1-3 Years | 3-5 Years | More than 5 years | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating lease obligations | $2,285 | $939 | $916 | $276 | $154 | | Purchase commitments | $38,219 | $33,578 | $4,241 | $400 | - | | **Total** | **$40,504** | **$34,517** | **$5,157** | **$676** | **$154** | [Item 6. Directors, Senior Management and Employees](index=90&type=section&id=Item%206.%20Directors,%20Senior%20Management%20and%20Employees) This section details the company's leadership, compensation practices, board structure, and employee base, including total compensation of $3.575 million for directors and executives in 2024 [Compensation of Directors and Executive Officers](index=94&type=section&id=B.%20Compensation%20of%20Directors%20and%20Executive%20Officers) Total compensation for all directors and executive officers in 2024 was approximately $3.575 million, with CEO Igal Zamir receiving $835,000 and CFO Ehud Ben-Yair receiving $702,000 Total Compensation for Directors & Executive Officers (2024) | Compensation Type | Amount (in thousands US$) | | :--- | :--- | | Salaries, fees, Commissions and bonuses | $3,467 | | Other benefits | $108 | | **Total** | **$3,575** | Compensation of 5 Most Highly Compensated Executives (2024, in thousands US$) | Name and Principal Position | Base Salary | Benefits & Perquisites | Variable Compensation | Equity-Based Compensation | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Igal Zamir, CEO and President | 339 | 130 | 346 | 20 | 835 | | Ehud Ben- Yair, CFO | 324 | 57 | 225 | 96 | 702 | | Jason Lewandowski, COO | 267 | 22 | 152 | 31 | 472 | | Liron Topaz, GM TAT Israel | 156 | 71 | 68 | 37 | 328 | | Lars Hebjerg, VP Sales | 221 | 23 | 62 | 37 | 323 | [Employees](index=111&type=section&id=D.%20Employees) As of December 31, 2024, TAT employed 634 people across Israel and the United States, with collective bargaining agreements in place for Israeli employees until March 2028 - As of December 31, 2024, the company employed **634 people**, with **194 in Israel** and **440 in the United States**[450](index=450&type=chunk) - Collective bargaining agreements are in place for employees at TAT Israel and Turbochrome, with new agreements signed in early 2025 effective until **March 31, 2028**[451](index=451&type=chunk)[452](index=452&type=chunk) [Item 7. Major Shareholders and Related Party Transactions](index=114&type=section&id=Item%207.%20Major%20Shareholders%20and%20Related%20Party%20Transactions) This section details the company's ownership structure, with FIMI Funds (26.6%), MEITAV INVESTMENT HOUSE LTD. (14.0%), and Y.D. More Investments Ltd. (11.1%) as major shareholders as of December 31, 2024 Major Shareholders as of December 31, 2024 | Name | Percentage of Ownership | | :--- | :--- | | FIMI Funds | 26.6% | | MEITAV INVESTMENT HOUSE LTD. | 14.0% | | Y.D. More Investments Ltd. | 11.1% | - In September 2024, FIMI Funds sold a significant portion of its holdings, reducing its beneficial ownership to approximately **26.6%**[475](index=475&type=chunk) - As of December 31, 2024, there were **23 holders of record**, with CEDE & Co. (nominee for the DTC) holding approximately **74% of outstanding ordinary shares** on behalf of beneficial owners[477](index=477&type=chunk) [Item 8. Financial Information](index=118&type=section&id=Item%208.%20Financial%20Information) This section refers to consolidated financial statements, notes ongoing litigation, and describes the company's dividend distribution policy, allowing dividends from retained earnings or recent profits - The company's dividend policy allows the board of directors to declare dividends limited to the greater of retained earnings or earnings from the previous two years, without requiring shareholder approval[483](index=483&type=chunk)[484](index=484&type=chunk) [Item 10. Additional Information](index=119&type=section&id=Item%2010.%20Additional%20Information) This section covers corporate and legal details, including an increase in authorized share capital to 15,000,000 shares, articles of association, and material Israeli and U.S. tax considerations - In March 2025, shareholders approved an increase in authorized share capital to **15,000,000 ordinary shares**[493](index=493&type=chunk) - The company benefits from reduced Israeli tax rates under the **'Preferred Enterprise' regime**, with a rate of **7.5%** for its operations in Development Zone A[526](index=526&type=chunk)[527](index=527&type=chunk)[528](index=528&type=chunk) - For U.S. tax purposes, the company believes it is not a Passive Foreign Investment Company (PFIC) for the current taxable year, but this is subject to annual review[572](index=572&type=chunk) [Item 12. Quantitative and Qualitative Disclosures about Market Risk](index=140&type=section&id=Item%2012.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is currency exchange fluctuation, particularly between the U.S. dollar and Israeli New Shekel, which it mitigates using derivative instruments - The company is exposed to currency exchange risk as its reporting currency is the U.S. dollar, while some expenses (primarily Israeli labor) are in NIS[592](index=592&type=chunk) PART II [Item 16. Controls and Procedures](index=141&type=section&id=Item%2016.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2024, with the Audit Committee overseeing cybersecurity risks and a formal insider trading policy in place - Management concluded that the company's disclosure controls and procedures, and its internal control over financial reporting, were **effective as of December 31, 2024**[598](index=598&type=chunk)[602](index=602&type=chunk) - The company follows Israeli home country practice instead of certain NASDAQ rules regarding shareholder approval for equity compensation plans[613](index=613&type=chunk) - The Audit Committee is responsible for overseeing cybersecurity risks, and the company has implemented security measures to address these threats; to date, no material cybersecurity incidents have been identified[620](index=620&type=chunk)[622](index=622&type=chunk) Principal Accountant Fees (in US$) | Services Rendered | 2024 | 2023 | | :--- | :--- | :--- | | Audit | $323,321 | $396,873 | | Tax | $16,000 | $19,571 | | **Total** | **$339,321** | **$413,444** | PART III [Item 18. Financial Statements](index=147&type=section&id=Item%2018.%20Financial%20Statements) This section presents the complete consolidated financial statements for TAT Technologies Ltd. as of December 31, 2024, prepared under U.S. GAAP, including the auditor's report and detailed financial statements [Report of Independent Registered Public Accounting Firm](index=152&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) The independent auditor issued an unqualified opinion on the consolidated financial statements, identifying the write-down of obsolete and unmarketable inventory as a Critical Audit Matter due to significant management judgment - The auditor identified the write-down of obsolete and unmarketable inventory as a **Critical Audit Matter**[640](index=640&type=chunk) - The primary reason for this determination was the significant management judgment required for assumptions about future demand, market conditions, and sales forecasts, which led to a high degree of auditor subjectivity and effort[642](index=642&type=chunk) [Consolidated Financial Statements](index=154&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements show total assets of $163.4 million, driven by increased inventory, with shareholders' equity growing to $112.0 million and net income reaching $11.2 million in 2024 Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Assets | $163,362 | $145,577 | | Inventory | $68,540 | $51,280 | | Total Liabilities | $51,393 | $54,894 | | Total Shareholders' Equity | $111,969 | $90,683 | Consolidated Statement of Operations Highlights (in thousands) | Account | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Total Revenue | $152,116 | $113,794 | $84,556 | | Gross Profit | $33,014 | $22,468 | $15,928 | | Net Income (Loss) | $11,167 | $4,672 | $(1,562) | Earnings Per Share | EPS Type | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Basic | $1.08 | $0.52 | $(0.175) | | Diluted | $1.00 | $0.51 | $(0.175) |
TAT Technologies to Announce Fourth Quarter and Full-Year 2024 Financial Results on March 26 and Host Earnings Webcast on March 27
Prnewswire· 2025-03-24 12:00
Core Viewpoint - TAT Technologies Ltd. is set to release its fourth quarter and full year 2024 financial results on March 26, 2025, followed by a webcast for investors on March 27, 2025, to discuss these results and provide a business update [1][2]. Company Overview - TAT Technologies Ltd. is a prominent supplier of products and services for the commercial and military aviation industries, as well as ground defense industries [3]. - The company operates under four segments: Original Equipment Manufacturing (OEM) of heat transfer solutions and aviation accessories, MRO services for heat transfer components, MRO services for aviation components, and overhaul and coating of jet engine components [3]. OEM Activities - TAT's OEM activities focus on designing, developing, and manufacturing a wide range of heat transfer solutions, including pre-coolers, heat exchangers, and hydraulic heat exchangers for various aircraft systems [4]. - The company also provides environmental control and power electronics cooling systems for aircraft and ground applications, along with various mechanical aircraft accessories [4]. MRO Services - TAT's MRO services for heat transfer components are primarily conducted through its Limco subsidiary, which operates an FAA-certified repair station, serving airlines, air cargo carriers, maintenance service centers, and military clients [5]. - The Piedmont subsidiary offers MRO services for aviation components, including APUs and landing gears, also operating an FAA-certified repair station [6]. Overhaul and Coating Services - TAT's overhaul and coating services for jet engine components include the refurbishment of turbine vanes, blades, fan blades, variable inlet guide vanes, and afterburner flaps [7].
TAT Technologies: A Strong Buy On Extremely Strong Earnings Growth
Seeking Alpha· 2024-12-13 09:14
Group 1 - TAT Technologies (NASDAQ: TATT) has shown a stock price return of 123%, significantly outperforming the broader market [1] - The Aerospace Forum aims to identify investment opportunities in the aerospace, defense, and airline sectors, leveraging data analytics for informed analysis [1] - The analyst has maintained a positive outlook on TATT stock since coverage began in April of this year [1] Group 2 - The investing group provides direct access to data analytics monitors, enhancing the investment research process [1]
TAT Technologies Signs a 5-Year, $17 Million MRO Agreement with Major North American Cargo Carrier
Prnewswire· 2024-12-11 23:05
Core Insights - TAT Technologies Ltd. has signed a five-year agreement with a major North American cargo carrier to provide repair and overhaul services for auxiliary power units (APUs) on Boeing 757 and 767 aircraft, with a total contract value of approximately $17 million [1][2][3] Company Overview - TAT Technologies Ltd. is a leading supplier of products and services for the commercial and military aviation industries, operating under four segments: OEM of heat transfer solutions, MRO services for heat transfer components, MRO services for aviation components, and overhaul and coating of jet engine components [3][4][5][6][7] MRO Services - The MRO services provided by TAT include repair and maintenance of APUs, landing gears, and other aircraft components, with FAA-certified repair stations operated by its subsidiaries Limco and Piedmont [5][6] - TAT's Limco subsidiary focuses on MRO of heat transfer components, while Piedmont specializes in MRO services for various aviation components [5][6] Market Position - The new contract signifies TAT's leadership in the APU cargo carrier market and enhances its existing MRO agreements with major cargo carriers in North America [2][3]
TAT Technologies(TATT) - 2024 Q3 - Earnings Call Transcript
2024-11-19 19:12
Financial Data and Key Metrics Changes - Revenue for Q3 2024 increased to $40.5 million, a 35% increase compared to $29.9 million in Q3 2023 [23] - Net income rose by 33% from $2.2 million to $2.9 million in the same period [23] - EBITDA increased by 70%, from 10.1% of revenue to 12.6% in Q3 2024 [23] - Gross margin improved to 21% from 19.4%, and operating margin increased from 5.9% to 8.5% [23] Business Line Data and Key Metrics Changes - Heat exchange activity revenue rose from $12.9 million to $16.6 million, a 33% increase year-over-year [27] - APU activity increased from $8.2 million to $10.5 million, a 27% increase [27] - Trading and leasing revenue surged from $1.9 million to $5.7 million, attributed to opportunistic deals [27] - Landing gear segment faced challenges due to supply chain issues, impacting revenue growth [28] Market Data and Key Metrics Changes - North America contributed 75% of total revenue, with Europe at 11% [31] - The company is experiencing significant demand in both OEM and MRO sectors, particularly from non-contractual customers [12][13] - The backlog at the end of Q3 2024 stood at $423 million, with 52% from heat exchange and 26% from APU segments [30] Company Strategy and Development Direction - The company aims to improve profitability alongside revenue growth, targeting a gross margin above 25% and EBITDA above 15% [36][41] - Strategic focus on key areas such as heat exchangers, APUs, and landing gear, avoiding commodity markets [59] - The company is investing in infrastructure and human capital to support future growth [42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing a larger opportunity funnel than ever before [14][20] - Supply chain challenges are acknowledged, with expectations for stabilization by the end of next year [13][15] - Seasonal trends in MRO demand were discussed, with expectations for a flat fourth quarter due to typical industry patterns [16][51] Other Important Information - The company has undergone significant transformation during COVID, investing in new strategies and organizational structures [20] - The company is actively working to expand its presence in the U.S. market and attract North American investors [55][57] Q&A Session Summary Question: Does the gross margin have further upside potential? - Management aims for a gross margin above 25%, viewing it as a threshold to meet [36] Question: When should we expect 131 sales to start ramping up? - The company is currently focusing on one-off deals to build operational efficiencies before pursuing larger contracts [37][39] Question: Can you share some longer-term EBITDA margin targets? - The goal is to achieve an EBITDA margin above 15% as the company scales [41] Question: Can you elaborate on the backlog and its significance? - The backlog consists of OEM contracts and MRO contracts, with actual purchase orders expected to replace forecasts as they are secured [63][64]
TAT Technologies(TATT) - 2024 Q3 - Earnings Call Presentation
2024-11-19 16:19
| --- | --- | --- | --- | |-------|-------|-------------------------------|-------| | | | | | | | | P R E S ENTAT Q3 2024 | ION | | | | | | | | | | | FORWARD-LOOKING STATEMENTS This presentation may contain certain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Generally, the words "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," variations of such words and ...
TAT Technologies Grows Revenue by 35%, Increases Net Income by 33% and Adjusted EBITDA by 70% for the Third Quarter of 2024
Prnewswire· 2024-11-19 00:37
Core Insights - TAT Technologies Ltd. reported its eighth consecutive quarter of revenue growth, with significant increases in both revenues and profitability for Q3 2024 compared to Q3 2023 [1][7]. Financial Performance - Revenues for Q3 2024 increased by 35.2% to $40.5 million from $29.9 million in Q3 2023. Year-to-date revenues rose by 36% to $111.1 million compared to $82.0 million for the same period last year [2]. - Gross profit for Q3 2024 was $8.5 million, a 45.9% increase from $5.8 million in Q3 2023, representing 21% of revenues compared to 19.4% in the prior year. Year-to-date gross profit increased by 51.8% to $23.5 million [3]. - Net income for Q3 2024 rose by 33% to $2.9 million, or $0.26 per diluted share, compared to $2.2 million, or $0.24 per diluted share, in Q3 2023. For the nine-month period, net income increased by 77% to $7.6 million [4]. - Adjusted EBITDA for Q3 2024 increased by 70% to $5.1 million compared to $3.0 million in Q3 2023, with a similar increase for the nine-month period [5]. Cash Flow and Capital Raising - Cash flow from operations in Q3 2024 was positive at $2.8 million, a turnaround from negative cash flow of ($3.7) million in Q3 2023. However, for the nine-month period, cash flow from operations was negative ($4.9) million compared to positive $0.5 million in the same period last year [6]. - The company raised $9.9 million in shares from the capital markets during Q3 2024 [7]. Business Outlook - The CEO of TAT Technologies indicated that the company is experiencing record revenue and profitability, with a backlog of orders and long-term agreements totaling $423 million. The company is preparing for challenges in the supply of parts for APUs and landing gears by increasing parts inventory [7].
TAT Technologies(TATT) - 2024 Q3 - Quarterly Report
2024-11-18 21:56
Financial Performance - Revenues increased by 35.2% to $40.5 million in Q3'24 compared to $29.9 million in Q3'23[10] - Gross profit rose by 45.9% to $8.5 million, representing 21% of revenues in Q3'24, up from 19.4% in Q3'23[11] - Net income increased by 33% to $2.9 million, or $0.26 per diluted share in Q3'24, compared to $2.2 million, or $0.24 per diluted share in Q3'23[12] - Adjusted EBITDA surged by 70% to $5.1 million in Q3'24, compared to $3.0 million in Q3'23[13] - Total revenues for the three months ended September 2023 were $40,459 million, a 35.5% increase from $29,935 million in the same period of 2022[29] - Gross profit for the nine months ended September 2023 was $23,531 million, up 42.1% from $15,499 million in the same period of 2022[29] - Operating income for the three months ended September 2023 reached $3,446 million, compared to $1,760 million in the same period of 2022, representing a 95.3% increase[29] - Net income for the nine months ended September 2023 was $7,592 million, a 77.0% increase from $4,283 million in the same period of 2022[31] - Basic net income per share for the three months ended September 2023 was $0.27, compared to $0.24 in the same period of 2022[29] - The company reported total comprehensive income of $2,822 million for the three months ended September 2023, compared to $2,149 million in the same period of 2022[31] - Net income for the three months ended September 30, 2024, was $2,865 million, an increase from $2,151 million in the same period last year, representing a 33% growth[37] - Adjusted EBITDA for the nine months ended September 30, 2024, reached $13,150 million, up from $7,747 million in the previous year, indicating a 70% increase[39] Cash Flow and Capital - Cash flow from operations was positive $2.8 million in Q3'24, a significant improvement from negative ($3.7) million in Q3'23[14] - The company reported a net cash increase of $516 million for the three months ended September 30, 2024, contrasting with a decrease of $(3,470) million in the same period last year[37] - Cash flows used in operating activities for the nine months ended September 30, 2024, were $(4,857) million, compared to $493 million in the same period last year[37] - The company issued common shares, resulting in proceeds of $9,923 million for the nine months ended September 30, 2024[37] - Interest paid during the nine months ended September 30, 2024, totaled $(1,289) million, compared to $(1,071) million in the same period last year[38] Assets and Liabilities - Total assets grew to $157.7 million as of September 30, 2024, up from $145.6 million at the end of 2023[27] - Total liabilities decreased to $49.2 million as of September 30, 2024, down from $54.9 million at the end of 2023[27] - Inventory increased to $61.9 million as of September 30, 2024, compared to $51.3 million at the end of 2023[26] Operational Metrics - Orders and long-term agreement (LTA) backlog increased to $423 million, indicating strong demand for products and services[15] - Research and development expenses for the three months ended September 2023 were $326 million, an increase from $194 million in the same period of 2022[29] - Selling and marketing expenses for the nine months ended September 2023 totaled $5,647 million, up from $3,807 million in the same period of 2022[29] - The company experienced a significant increase in trade accounts payable, which rose by $3,825 million for the three months ended September 30, 2024[37] - Depreciation and amortization expenses for the three months ended September 30, 2024, were $1,565 million, compared to $1,240 million in the same period last year, reflecting a 27% increase[39] Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[29]
TAT Technologies to Announce Third Quarter Financial Results on November 18 and Host Earnings Webcast on November 19
Prnewswire· 2024-11-12 13:30
Company Overview - TAT Technologies Ltd. is a leading provider of products and services for the commercial and military aviation industries as well as ground defense industries [3] - The company operates under four segments: Original Equipment Manufacturing (OEM) of heat transfer solutions, MRO services for heat transfer components, MRO services for aviation components, and overhaul and coating of jet engine components [3] Financial Results Announcement - TAT Technologies will release its third quarter results for 2024 on November 18, 2024, after market close [1] - A webcast to review the financial results and provide a business update will be hosted by TAT's CEO and CFO on November 19, 2024, at 8:15 a.m. ET [2] Product and Service Segments - The OEM segment focuses on designing, developing, and manufacturing heat transfer solutions and aviation accessories, including heat exchangers and cooling systems for aircraft [4] - The MRO services for heat transfer components are provided through the Limco subsidiary, which operates an FAA-certified repair station [5] - The MRO services for aviation components are managed by the Piedmont subsidiary, also operating an FAA-certified repair station [6] - The overhaul and coating segment includes services for jet engine components such as turbine vanes and blades [7]
TAT Technologies to Present at LD Micro Main Event VXII on October 29, 2024
Prnewswire· 2024-10-21 20:05
Group 1 - TAT Technologies Ltd. will participate in the LD Micro Main Event XVII on October 29, 2024, in Los Angeles, CA, with management available for one-on-one meetings [1] - The LD Micro Main Event will feature around 150 companies presenting and attending private meetings with investors from October 28 to 30, 2024 [2] - TAT Technologies operates under four segments: OEM of heat transfer solutions, MRO services for heat transfer components, MRO services for aviation components, and overhaul and coating of jet engine components [2][4] Group 2 - TAT's OEM activities include the design and manufacture of heat transfer solutions and aviation accessories for commercial and military aircraft [3] - The MRO services provided by TAT's Limco subsidiary include heat transfer component repairs for airlines and military, while Piedmont subsidiary focuses on MRO for various aircraft components [4] - TAT's overhaul and coating services involve jet engine components, including turbine vanes and blades, ensuring high-quality maintenance for aviation engines [5]