TAT Technologies(TATT) - 2023 Q3 - Quarterly Report

Financial Performance - Revenues for Q2 2023 were $26.8 million, a 29% increase compared to $20.8 million in Q2 2022[12] - Gross profit for Q2 2023 was $5.4 million, representing 20.3% of revenues, up 35% from $4 million (19.4% of revenues) in Q2 2022[12] - Adjusted EBITDA for Q2 2023 increased by 291% to $2.57 million compared to $0.9 million in Q2 2022[12] - Net income in Q2 2023 was $1.5 million, or $0.15 per diluted share, compared to a net loss of $0.1 million, or loss of $0.01 per diluted share, in Q2 2022[12] - Cash flow from operations in Q2 2023 was positive $2.5 million, compared to negative $2.6 million in Q2 2022[12] - Revenues for the six-month period ended June 30, 2023, increased by 28% to $52.02 million compared to $40.7 million in the same period of 2022[12] - Gross profit for the six-month period ended June 30, 2023, was $9.7 million, or 18.6% of revenues, a 36.8% increase from $7 million (17.4% of revenues) in the same period of 2022[12] - Net income for the three months ended June 30, 2023, was $1,475 million, compared to a net loss of $132 million in the same period of 2022[26] - Basic income per share for the three months ended June 30, 2023, was $0.16, compared to a loss of $0.01 per share in the same period of 2022[24] - Operating profit for the six months ended June 30, 2023, was $2,480 million, a significant improvement from an operating loss of $2,419 million in the same period of 2022[24] - Total comprehensive income for the three months ended June 30, 2023, was $1,501 million, compared to a loss of $248 million in the same period of 2022[26] - Adjusted EBITDA for the six months ended June 30, 2023, was $4,740,000, significantly up from $1,393,000 in the same period of 2022[32] Cash Flow and Assets - Cash flows provided by operating activities for the three months ended June 30, 2023, were $2,452,000, compared to cash used of $2,636,000 in the same period of 2022[30] - Cash and cash equivalents at the end of the period on June 30, 2023, were $11,044,000, up from $8,644,000 at the end of the same period in 2022[30] - The company had a net increase in cash and restricted cash of $1,546,000 for the three months ended June 30, 2023[30] - The company reported total assets of $126.326 million as of June 30, 2023, with total liabilities of $48.312 million[22] - Total liabilities decreased by $134,000 in the three months ended June 30, 2023, compared to no change in the same period of 2022[30] Expenses - Research and development expenses for the three months ended June 30, 2023, were $157 million, slightly down from $180 million in the same period of 2022[24] - Selling and marketing expenses for the six months ended June 30, 2023, were $2,457 million, down from $2,852 million in the same period of 2022[24] - Depreciation and amortization for the three months ended June 30, 2023, was $901,000, slightly down from $926,000 in the same period of 2022[30] Inventory and Capital Gains - The company reported a decrease in inventory of $3,248,000 for the three months ended June 30, 2023, compared to a decrease of $1,143,000 in the same period of 2022[30] - The company recorded a capital gain from the sale of property, plant, and equipment of $29,000 for the three months ended June 30, 2023[30] - Proceeds from the sale of property and equipment for the three months ended June 30, 2023, were $375,000, compared to $9,000 in the same period of 2022[30] Company Operations - The company has a strong order backlog and is prepared to implement the second wave of landing gear contracts with two strategic customers, expected to yield additional revenues towards 2024[11] - TAT Technologies operates under four segments, including OEM of heat transfer solutions and MRO services for aviation components[14] Equity - Total equity as of June 30, 2023, was $78,014 million, reflecting an increase from $75,570 million as of December 31, 2022[28] - The weighted average number of diluted shares outstanding for the three months ended June 30, 2023, was 9,052,163, compared to 8,886,546 in the same period of 2022[24]