TAT Technologies(TATT) - 2023 Q4 - Annual Report

Financial Performance - Revenues for Q3 2023 were $29.9 million, an increase of 43% compared to $20.9 million in Q3 2022[11] - Gross profit for Q3 2023 was $5.8 million, representing 19.3% of revenues, a 70% increase from $3.4 million (16.4% of revenues) in Q3 2022[11] - Adjusted EBITDA for Q3 2023 increased by 438% to $3 million compared to $0.6 million in Q3 2022[11] - Net income in Q3 2023 was $2.1 million, or $0.24 per diluted share, compared to a net loss of $0.3 million, or loss of $0.04 per diluted share, in Q3 2022[11] - Revenues for the nine-month period ended September 30, 2023, were $81.9 million, an increase of 33% compared to $61.7 million in the same period in 2022[11] - Gross profit for the nine-month period was $15.5 million, or 19% of revenues, a 47.6% increase from $10.5 million (17% of revenues) in the same period in 2022[11] - Net income for the nine-month period was $4.3 million, or $0.47 per diluted share, compared to a net loss of $2 million, or loss of $0.23 per diluted share, in the same period in 2022[11] - Total revenues for the three months ended September 30, 2023, were $29,935 thousand, a 42.9% increase from $20,977 thousand in the same period of 2022[24] - Operating profit for the three months ended September 30, 2023, was $1,760 thousand, a significant improvement from an operating loss of $208 thousand in the same period of 2022[24] - Net income for the three months ended September 30, 2023, was $2,151 thousand, compared to a net loss of $355 thousand in the same period of 2022[26] - Basic and diluted income per share for the three months ended September 30, 2023, was $0.24, compared to a loss of $0.04 per share in the same period of 2022[24] - Total comprehensive income for the nine months ended September 30, 2023, was $4,285 thousand, compared to a loss of $2,161 thousand in the same period of 2022[26] Cash Flow and Expenses - Cash flow from operations in Q3 2023 was negative $3.7 million, compared to negative $3.1 million in Q3 2022[11] - Cash flows from operating activities for the nine months ended September 30, 2023, showed a net cash outflow of $493 thousand, an improvement from a net cash outflow of $9.490 million in the same period of 2022[30] - The company reported a net cash outflow from investing activities of $532 thousand for the three months ended September 30, 2023, compared to a net cash outflow of $3.833 million in the same period of 2022[30] - The company incurred restructuring expenses of $1.673 million for the nine months ended September 30, 2023, compared to $1.715 million in the same period of 2022[32] - Research and development expenses for the three months ended September 30, 2023, were $194 thousand, slightly down from $197 thousand in the same period of 2022[24] - Selling and marketing expenses for the three months ended September 30, 2023, were $1,350 thousand, compared to $1,312 thousand in the same period of 2022, indicating a 2.9% increase[24] Operational Insights - The company is focusing on operational ramp-up, including manpower hiring and increasing inventory levels to support future growth[10] - There are currently no indications that the ongoing war in Israel will hinder the company's growth plans for the upcoming quarters[10] Balance Sheet and Liabilities - Cash and cash equivalents at the end of the period were $7.574 million, a decrease from $8.026 million at the end of the previous year[30] - The company reported a decrease in trade accounts receivable by $4.051 million for the three months ended September 30, 2023, compared to an increase of $1.127 million in the same period of 2022[30] - The company’s total liabilities decreased by $254 thousand for the three months ended September 30, 2023, compared to a decrease of $160 thousand in the same period of 2022[30] - Short-term credit received from banks amounted to $1.000 million during the three months ended September 30, 2023[30] Depreciation and Amortization - Total depreciation and amortization for the three months ended September 30, 2023, was $1.099 million, up from $931 thousand in the same period of 2022[30]