zk1517196.htm
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
 
 
F O R M  6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2015

TAT TECHNOLOGIES LTD.
(Name of Registrant)
 
      P.O.BOX 80, Gedera 70750 Israel
(Address of Principal Executive Office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x   Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o   No x

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ____________

 
 
 
TAT Technologies Ltd.

6-K Items

1.
Press Release dated August 10, 2015 re TAT Technologies Ltd. Reports Second Quarter 2015 Results.

 
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ITEM 1
 
Press Release
Source: TAT Technologies Limited

TAT Technologies Reports Second Quarter 2015 Results

GEDERA, Israel, Monday, August 10, 2015 - TAT Technologies Ltd. (NASDAQ: TATT - News) (the “Company”), a leading provider of services and products to the commercial and military aerospace and ground defense industries, reported today its results for the three month and six month periods ended June 30, 2015.

Financial Highlights for the Second quarter of 2015:
 
·
Total Revenue: $21.5 million compared to $20.6 million in the second quarter of 2014, increase of 4.2%.

·
Operating income: $1.1 million compared to $0.7 million in the second quarter of 2014.
 
·
Net income: $0.7 million compared to $0.3 million in the second quarter of 2014.
 
·
Earnings per share basic and diluted: $0.08 per share compared to $0.04 per share in the second quarter of 2014.
 
·
Cash and cash equivalents and short-term bank deposits: During the first 6 months of 2015, the cash balance has been increased in $ 1.7 million, from $28 million as of December 31, 2014 to $29.7 million as of June 30, 2015.
 
Mr. Itsik Maaravi, TAT’s President & CEO commented, “We are pleased with the financial results of the second quarter of 2015, reflecting growth in revenue and operating income compared with both the previous quarter of 2015 and the second quarter of 2014.

We continue to strengthen our business and put efforts in leveraging the relationships with our customers. In addition, we continue to focus on expanding our customer base and pipeline in order to increase efficiency and profitability".
 
The company announced today that it has entered into a definitive agreement to acquire Chromalloy Israel Ltd. (“Chromalloy Israel”) for approximately US$ 3.5 million (subject to certain price adjustments) in cash payable at the closing of the transaction. TAT shall pay additional amounts of up to US$ 2 million in the event that Chromalloy Israel meets certain annual revenue targets in 2015 and 2016. The acquisition is expected to close before the end of September 2015.
 

 
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About TAT Technologies LTD
 
TAT Technologies Ltd. is a leading provider of services and products to the commercial and military aerospace and ground defense industries. TAT operates under three segments:  (i) Original Equipment Manufacturing or “OEM” of Heat Management Solutions (ii) Heat Transfer Services and Products and (iii) Maintenance, Repair and Overhaul or “MRO” services of Aviation Components.
 
TAT’s activities in the area of OEM of Heat Management Solutions primarily include the design, development, manufacture and sale of (i) a broad range of heat transfer components (such as heat exchangers, pre-coolers and oil/fuel hydraulic coolers) used in mechanical and electronic systems on-board commercial, military and business aircraft; (ii) environmental control and cooling systems on board aircraft and for ground applications; and (iii) a variety of other electronic and mechanical aircraft accessories and systems such as pumps, valves, power systems and turbines.

TAT’s activities in the area of Heat Transfer Services and Products include the maintenance, repair and overhaul of heat transfer equipment and in a lesser extent, the manufacturing of certain heat transfer products. TAT’s Limco subsidiary operates FAA certified repair station, which provides heat transfer MRO services and products for airlines, air cargo carriers, maintenance service centers and the military.

TAT’s activities in the area of MRO services for Aviation Components include the maintenance, repair and overhaul of APUs, Landing Gear and other aircraft components. TAT’s Piedmont subsidiary operates an FAA certified repair station, which provides aircraft component MRO services for airlines, air cargo carriers, maintenance service centers and the military.
 
For more information of TAT Technologies, please visit our web-site:  www.tat-technologies.com
 
Guy Nathanzon – CFO
TAT Technologies Ltd.
Tel: 972-8-862-8500
guyn@tat-technologies.com

 
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Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements which include, without limitation, statements regarding possible or assumed future operation results. These statements are hereby identified as "forward-looking statements" for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause our results to differ materially from management's current expectations. Actual results and performance can also be influenced by other risks that we face in running our operations including, but are not limited to, general business conditions in the airline industry, changes in demand for our services and products, the timing and amount or cancellation of orders, the price and continuity of supply of component parts used in our operations, the change of control that will occur on the sale by the receiver of the Company’s shares held by our previously controlling stockholders, and other risks detailed from time to time in the company's filings with the Securities Exchange Commission, including, its annual report on form 20-F and its periodic reports on form 6-K. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statement.

 
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TAT TECHNOLOGIES AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)

   
June 30,
    
December 31,
  
   
2015
    
2014
  
   
(unaudited)
    
(audited)
  
ASSETS
            
Current Assets:
            
Cash and cash equivalents
   $ 24,568     $ 22,894  
Short-term bank deposits
     5,104       5,089  
Accounts receivable-trade (net of allowance for doubtful accounts
  of  $113 as of June 30, 2015 and $125 as of December 31, 2014)
     18,299       15,657  
Other accounts receivable and prepaid expenses
     4,691       4,298  
Inventories, net
     36,619       35,404  
                 
Total current assets
     89,281       83,342  
                 
Long-term assets:
                
Investment in an affiliated company
     -       2,556  
Investment in investee company
     423       -  
Funds in respect of employee rights upon retirement
     2,581       2,496  
Long-term deferred tax
     1,189       1,550  
Property, plant and equipment, net
     11,958       11,524  
                 
Total Long-term assets
     16,151       18,126  
                 
Total assets
   $ 105,432     $ 101,468  
                 
LIABILITIES AND EQUITY
                
                 
Current Liabilities:
                
Accounts payables trade
     5,437       5,886  
Other accounts payable and accrued expenses
     7,244       5,651  
Total current liabilities
     12,681       11,537  
                 
Long-term liabilities:
                
        Other accounts payable
     20       34  
Liability in respect of employee rights upon retirement
     2,776       2,655  
Long-term deferred tax liability
     1,781       1,774  
                 
Total long-term liabilities
     4,577       4,463  
                 
Total liabilities
     17,258       16,000  
                 
EQUITY:
                
Share capital
     2,793       2,793  
Additional paid-in capital
     64,506       64,491  
Treasury stock at cost
     (2,088 )     (2,088 )
Retained earnings
     22,963       20,272  
Total equity
     88,174       85,468  
                 
Total liabilities and equity
   $ 105,432     $ 101,468  

 
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TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)
 
   
Three months ended
    
Six months ended
    
Year ended
  
   
June 30,
    
December 31,
  
   
2015
    
2014
    
2015
    
2014
    
2014
  
   
(unaudited)
    
(audited)
  
Revenues:
  
 
                          
    Products
   $ 7,747     $ 7,434     $ 14,726     $ 15,532     $ 31,363  
    Services
     13,723       13,166       27,230       23,485       49,363  
      21,470       20,600       41,956       39,017       80,726  
                                         
Cost  of goods:
                                        
Products
     5,964       5,605       11,444       11,600       23,340  
Services
     11,153       10,862       22,046       19,656       40,286  
      17,117       16,467       33,490       31,256       63,626  
Gross Profit
     4,353       4,133       8,466       7,761       17,100  
                                         
Operating expenses:
                                        
                                         
Research and development, net
     185       306       323       561       1,070  
                                         
Selling and marketing
     758       889       1,483       1,639       3,203  
                                         
General and administrative
     2,261       2,279       4,428       4,555       9,019  
                                         
Other loss (income)
     -       -       1       (7 )     (11 )
                                         
      3,204       3,474       6,235       6,748       13,281  
                                         
Operating income
     1,149       659       2,231       1,013       3,819  
                                         
Financial income (expenses), net
     (64 )     18       (249 )     29       (1,294 )
Loss from dilution of interests in affiliated company
     -       (45 )     -       (45 )     -  
                                         
Income before taxes on income
     1,085       632       1,982       997       2,525  
                                         
Taxes on income
     351       398       782       495       1,360  
                                         
Net income after taxes on income
     734       234       1,200       502       1,165  
Share in results and sale of equity investment of affiliated company
     -       77       1,491       219       267  
                                         
Net income
   $ 734     $ 311     $ 2,691     $ 721     $ 1,432  
                                         
Basic and diluted income per share
                                        
                                         
Net income per share
   $ 0.08     $ 0.04     $ 0.31     $ 0.08     $ 0.16  
                                         
Weighted average number of shares outstanding
                                        
    Basic
     8,808,344       8,805,236       8,808,344       8,805,236       8,805,495  
    Diluted
     8,811,044       8,829,645       8,809,423       8,832,992       8,826,542  

 
7
 
TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 
   
Three months ended
    
Six months ended
    
Year ended
December 31,
  
   
June 30,
        
   
2015
    
2014
    
2015
    
2014
    
2014
  
   
(unaudited)
    
(audited)
  
CASH FLOWS FROM OPERATING ACTIVITIES:
                              
Net income
   $ 734     $ 311     $ 2,691     $ 721     $ 1,432  
                                         
Adjustments to reconcile net income to net cash
  provided by operating activities:
     1,079       112       493       532       2,465  
                                         
Changes in operating assets and liabilities
     (1,675 )     549       (3,304 )     995       (5,355 )
                                         
Net cash provided by (used in) operating activities
     138       972       (120 )     2,248       (1,458 )
                                         
Cash flows provided by (used in) investing activities
     (931 )     (989 )     1,794       3,105       4,624  
                                         
Cash flows used in financing activities
     -       (2,883 )     -       (2,909 )     (2,909 )
                                         
Net increase (decrease) in cash and cash equivalents
     (793 )     (2,900 )     1,674       2,444       257  
                                         
Cash and cash equivalents at beginning of period
     25,361       25,158       22,894       19,814       22,637  
                                         
Cash and cash equivalents at end of period
     24,568       22,258       24,568       22,258       22,894  

 
8
 
SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
TAT TECHNOLOGIES LTD.
              (Registrant)
  
       
 
By:
/s/ Guy Nathanzon  
   
Guy Nathanzon
  
   
Chief Financial Officer
  
       
Date: August 10, 2015

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