Financial Performance - Revenues for 2024 were $46.5 million, a slight decline of 0.4% compared to $46.7 million in 2023[6]. - Net income for 2024 was $4.2 million, down 34.4% from $6.4 million in 2023, with diluted EPS at $0.63 compared to $1.07 in 2023[6][14]. - Q4 2024 revenues were $10.8 million, a decrease of 12.2% from $12.3 million in Q4 2023, with net income at $0 million compared to $1.3 million in Q4 2023[6][17]. - Gross profit for 2024 was $10.3 million, representing 22% of revenues, down from $13.1 million or 28% of revenues in 2023[12]. - EBITDA for 2024 was $5.9 million, accounting for 13% of revenues, compared to $8.6 million or 18% of revenues in 2023[15]. Strategic Initiatives - The company is undergoing a strategic transition with a $15 million investment plan aimed at enhancing manufacturing capabilities and increasing annual production capacity to $55 million to $65 million[3][4]. - Eltek is positioned to leverage market opportunities by enhancing manufacturing capabilities and strengthening supply chain resilience[9]. - The company anticipates improved operational performance as the investment program progresses, despite short-term fluctuations in profitability[5][10]. Asset and Equity Changes - Total assets increased to $60.2 million in 2024 from $47.2 million in 2023, with total shareholders' equity rising to $41.2 million from $26.9 million[31]. Cash Flow and Investments - Net cash provided by operating activities for the twelve months ended December 31, 2024, was $4,540 million, down from $8,862 million in 2023, reflecting a decline of approximately 48.5%[35]. - Cash flows from investing activities showed a net cash outflow of $15,871 million for the twelve months ended December 31, 2024, compared to $2,959 million in 2023, indicating a substantial increase in investment expenditures[35]. - The company reported a purchase of fixed assets totaling $9,506 million for the twelve months ended December 31, 2024, compared to $2,432 million in 2023, indicating a significant increase in capital expenditures[35]. - The exercise of options generated $296 million in cash for the twelve months ended December 31, 2024, compared to $863 million in 2023, reflecting a decrease in option exercises[35]. Inventory and Receivables Management - The company reported a decrease in inventories of $3,532 million for the twelve months ended December 31, 2024, compared to a decrease of $1,139 million in 2023, suggesting a significant reduction in stock levels[35]. - The company reported a decrease in trade receivables of $988 million for the twelve months ended December 31, 2024, compared to a decrease of $1,010 million in 2023, indicating a slight improvement in receivables management[35]. Cash and Dividends - Cash and cash equivalents at the end of the period were $7,575 million as of December 31, 2024, down from $9,278 million at the end of the same period in 2023[35]. - The company did not distribute dividends in the three months ended December 31, 2024, compared to a distribution of $1,321 million in the same period of 2023[35]. Market Trends - The global PCB industry is experiencing shifts due to geopolitical factors, with increased demand for defense-related PCBs driven by rising defense budgets worldwide[7][8].
Eltek .(ELTK) - 2024 Q4 - Annual Report