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 March 2018

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 ☒          Form 40-F ☐

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): ☐

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): ☐

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 ☐          No ☒

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 March 27, 2018 re TAT Technologies Ltd. Reports Fourth Quarter and Full Year 2017 Results.

2
 
ITEM 1

Press Release
Source: TAT Technologies Limited

TAT Technologies Reports Record Results for Fiscal Year 2017

Annual Revenue of $106.5 Million Represent an All Time High and Adjusted EBITDA of $9.4
Million Represent the Highest Recorded Since 2009

Revenues grew 5% and 11% in the quarter and year ended December 31, 2017 compared to the
comparable period in 2016, respectively

Adjusted EBITDA grew 19% in the year ended December 31, 2017, compared to the year ended
December 31, 2016

GEDERA, Israel, March 27, 2018 - TAT Technologies Ltd. (NASDAQ: TATT - News) (“TAT” or the “Company”), a leading provider of products and services to the commercial and military aerospace and ground defense industries, reported today its unaudited results for the fourth quarter and year ended December 31, 2017.
 
Key Financial Highlights:

·
Record revenues of $106.5 million for the year ended December 31, 2017, compared with $95.8 million in the year ended December 31, 2016, an 11% growth. Revenues for the fourth quarter were $26.3 million compared with $25.0 million in the comparable quarter last year, a 5% growth.

·
Adjusted EBITDA for the year ended December 31, 2017 increased to $9.4 million compared with $7.9 million in the year ended December 31, 2016, an increase of 19%. 2017 adjusted EBITDA is the highest recorded adjusted EBITDA since 2009. Adjusted EBITDA for fourth quarter was $1.6 million compared with $3.1 million in the comparable quarter last year.

·
GAAP net income reached $2.4 million, or $0.27 per diluted share in the year ended December 31, 2017, compared with a net income of $0.1 million, or $0.01 per diluted share in the year ended December 31, 2016.  GAAP net loss for the fourth quarter was $0.3 million, or $0.03 per diluted share compared with GAAP net income of $1.6 million, or $0.18 per diluted share in fourth quarter of 2016.

·
Non-GAAP net income totaled $2.8 million, or $0.31 per diluted share in the year ended December 31, 2017, compared with non-GAAP net income of $2.8 million, or $0.32 per diluted share in the year ended December 31, 2016, and non-GAAP net loss of $0.2 million, or $0.02 per diluted share in the fourth quarter of 2017 compared with non-GAAP net income of $1.8 million, or $0.20 per diluted share in the fourth quarter of 2016.
3
 
Mr. Igal Zamir, CEO and President of TAT Technologies stated, “2017 was a record year for TAT Technologies. Our revenues which grew 11% year over year, reached a record high, while adjusted EBITDA grew 19%, the highest recorded adjusted EBITDA since 2009.  These strong record results serve as yet another proof point of our successful growth strategy and effective operational improvement plan.  We are well positioned in our markets and have a strong balance sheet which together serve as the foundation for our long-term growth. We continue to pursue new growth initiatives, both organic and strategic, which we expect will drive our growth in 2018 and beyond.”

Mr. Zamir added, “I would like to take this opportunity to thank all of TAT’s employees around the world. Their talent, hard work and dedication are key to our ability to successfully implement our growth strategy and create long term value for our shareholders.”
 
Non-GAAP Financial Measures

To supplement the consolidated financial statements presented in accordance with GAAP, the Company also presents a Non-GAAP presentation of Net Income and Adjusted EBITDA.  The adjustments to the Company’s GAAP results are made with the intent of providing both management and investors a more complete understanding of the Company’s underlying operational results, trends and performance.  Non-GAAP Net Income excludes changes, income or losses, as applicable, related to one or more of the following: (1) share-based compensation expenses and/or (2) certain tax impact and/or (3) share in results of equity investment of affiliated companies. Adjusted EBITDA is calculated as net income excluding the impact of: the Company's share in results of affiliated companies, share-based compensation, taxes on income, financial (expenses) income, net, and depreciation and amortization.  Non-GAAP Net Income and Adjusted EBITDA, however, should not be considered as alternatives to net income and operating income for the period and may not be indicative of the historic operating results of the Company; nor they are meant to be predictive of potential future results.  Non-GAAP Net Income and Adjusted EBITDA are not measures of financial performance under generally accepted accounting principles and may not be comparable to other similarly titled measures for other companies. See reconciliation of GAAP Net Income to Non-GAAP Net Income and Adjusted EBITDA in pages 9 and 13 below.

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 four segments: (i) Original equipment manufacturing (“OEM”) of heat transfer solutions and aviation accessories through its Gedera facility; (ii) MRO services for heat transfer components and OEM of heat transfer solutions through its Limco subsidiary; (iii) MRO services for aviation components through its Piedmont subsidiary; and (iv) Overhaul and coating of jet engine components through its Turbochrome subsidiary. TAT controlling shareholders is the FIMI Private Equity Fund.

TAT’s activities in the area of OEM of heat transfer solutions and aviation accessories primarily include the design, development and manufacture of (i) broad range of heat transfer solutions, such as pre-coolers heat exchangers and oil/fuel hydraulic heat exchangers, used in mechanical and electronic systems on board commercial, military and business aircraft; (ii) environmental control and power electronics cooling systems installed on board aircraft in and ground applications; and (iii) a variety of other mechanical aircraft accessories and systems such as pumps, valves, and turbine power units.

TAT’s activities in the area of MRO Services for heat transfer components and OEM of heat transfer solutions primarily include the MRO of heat transfer components and to a lesser extent, the manufacturing of certain heat transfer solutions. TAT’s Limco subsidiary operates an FAA-certified repair station, which provides heat transfer MRO services for airlines, air cargo carriers, maintenance service centers and the military.

4
TAT’s activities in the area of MRO services for aviation components include the MRO of APUs, landing gears 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.

TAT’s activities in the area of overhaul and coating of jet engine components includes the overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable inlet guide vanes and afterburner flaps.
 
For more information of TAT Technologies Ltd., please visit our web-site:
www.tat-technologies.com
 
Guy Nathanzon, CFO
TAT Technologies Ltd.
Tel: 972-8-862-8500
guyn@tat-technologies.com
 
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.

5
TAT TECHNOLOGIES AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
 
 
December 31,
    
December 31,
  
   
2017
    
2016
  
   
(unaudited)
    
(audited)
  
ASSETS
            
CURRENT ASSETS:
            
Cash and cash equivalents
  
$
17,514
    
$
21,433
  
Short-term bank deposits
    
470
      
964
  
Accounts receivable, net
    
25,744
      
21,572
  
Other current assets and prepaid expenses
    
2,363
      
1,687
  
Inventory, net
    
38,630
      
39,269
  
                 
Total current assets
    
84,721
      
84,925
  
                 
NON-CURRENT ASSETS:
                
Investment in affiliates
    
1,192
      
1,019
  
Funds in respect of employee rights upon retirement
    
2,779
      
2,660
  
Deferred income taxes
    
937
      
896
  
Intangible assets, net
    
1,045
      
1,179
  
Property, plant and equipment, net
    
21,321
      
21,298
  
                 
Total non-current assets
    
27,274
      
27,052
  
                 
Total assets
  
$
111,995
    
$
111,977
  
                 
LIABILITIES AND EQUITY
                
                 
CURRENT LIABILITIES:
                
Accounts payable
    
9,348
      
8,406
  
Accrued expenses
    
8,331
      
9,836
  
                 
Total current liabilities
    
17,679
      
18,242
  
                 
NON CURRENT LIABILITIES:
                
Other long-term liabilities
    
146
      
151
  
Liability in respect of employee rights upon retirement
    
3,235
      
2,994
  
Deferred income taxes
    
2,361
      
1,938
  
                 
Total non-current liabilities
    
5,742
      
5,083
  
                 
Total liabilities
    
23,421
      
23,325
  
                 
EQUITY:
                
Share capital
    
2,802
      
2,797
  
Additional paid-in capital
    
65,073
      
64,760
  
Treasury stock at cost
    
(2,088
)
    
(2,088
)
Accumulated other comprehensive loss
    
135
      
(73
)
Retained earnings
    
22,652
      
23,256
  
Total shareholders' equity
    
88,574
      
88,652
  
                 
Total liabilities and shareholders' equity
  
$
111,995
    
$
111,977
  

6

TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)

   
Three months ended
    
Twelve months ended
  
   
December 31,
  
   
2017
    
2016
    
2017
    
2016
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
                         
Revenues:
                        
Products
  
$
8,149
    
$
7,481
    
$
36,053
    
$
30,431
  
Services
    
18,148
      
17,504
      
70,474
      
65,363
  
     
26,297
      
24,985
      
106,527
      
95,794
  
                                 
Cost of goods:
                                
Products
    
6,096
      
5,609
      
28,096
      
23,788
  
Services
    
15,451
      
13,562
      
57,987
      
52,969
  
     
21,547
      
19,171
      
86,083
      
76,757
  
Gross Profit
    
4,750
      
5,814
      
20,444
      
19,037
  
                                 
Operating expenses:
                                
Research and development, net
    
111
      
189
      
731
      
1,140
  
Selling and marketing
    
1,331
      
1,008
      
4,974
      
3,876
  
General and administrative
    
2,721
      
2,631
      
9,409
      
10,023
  
Other loss (income)
    
26
      
(117
)
    
53
      
(138
)
     
4,189
      
3,711
      
15,167
      
14,901
  
Operating income
    
561
      
2,103
      
5,277
      
4,136
  
                                 
Financial expenses, net
    
(87
)
    
(62
)
    
(338
)
    
(154
)
                                 
Income before taxes on income
    
474
      
2,041
      
4,939
      
3,982
  
                                 
Taxes on income
    
677
      
420
      
2,333
      
3,865
  
                                 
Income (loss) before equity investment
    
(203
)
    
1,621
      
2,606
      
117
  
                                 
Share in results of affiliated companies
    
(54
)
    
(4
)
    
(210
)
    
(55
)
                                 
Net income (loss)
  
$
(257
)
  
$
1,617
    
$
2,396
    
$
62
  
                                 
Basic and diluted income (loss) per share
                                
                                 
Net income (loss) per  share (basic and diluted)
  
$
(0.03
)
  
$
0.18
    
$
0.27
    
$
0.01
  
                                 
Weighted average number of shares outstanding
                                
Basic
    
8,848,028
      
8,828,444
      
8,848,028
      
8,828,444
  
Diluted
    
8,926,023
      
8,833,226
      
8,919,912
      
8,830,764
  

7
TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)

   
Three months ended
    
Twelve months ended
  
   
December 31,
  
   
2017
    
2016
    
2017
    
2016
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
                         
Net income (loss)
  
$
(257
)
  
$
1,617
    
$
2,396
    
$
62
  
Other comprehensive income
                                
Net unrealized gains (losses) from derivatives
    
(141
)
    
(199
)
    
(686
)
    
174
  
Reclassification adjustments for gains included in net income and inventory
    
134
      
(29
)
    
894
      
(243
)
Total other comprehensive income (loss)
  
$
(264
)
  
$
1,389
    
$
2,604
    
$
(7
)

8
TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
 RECONCILIATION OF GAAP TO NON-GAAP RESULTS (UNAUDITED)
(In thousands, except share and per share data)

   
Three months ended
    
Twelve months ended
  
   
December 31,
  
   
2017
    
2016
    
2017
    
2016
  
                         
Reported net income (loss) on GAAP basis
  
$
(257
)
  
$
1,617
    
$
2,396
    
$
62
  
Adjustments:
                                
Tax adjustments re non-GAAP adjustments (1)
    
-
      
198
      
-
      
2,685
  
Other expenses (Acquisition related expenses)
    
-
      
(105
)
    
-
      
(105
)
Share in results of equity investment of affiliated company
    
54
      
4
      
210
      
55
  
Share based compensation
    
23
      
41
      
174
      
105
  
Non-GAAP net income (loss)
  
$
(180
)
  
$
1,755
    
$
2,780
    
$
2,802
  
                                 
Non-GAAP net income (loss) per share (basic and diluted)
  
$
(0.02
)
  
$
0.20
    
$
0.31
    
$
0.32
  
                                 
Weighted average number of shares outstanding
                                
Basic
    
8,848,028
      
8,828,444
      
8,848,028
      
8,828,444
  
Diluted
    
8,926,023
      
8,833,226
      
8,919,912
      
8,830,764
  
 
(1)
During the second quarter of 2016 the Company distributed dividend from its foreign subsidiaries earnings. As a result, the company accrued deferred tax liability due to actual distribution of earnings from foreign subsidiaries of the Company and due to the possibility of future distribution of earnings from such foreign subsidiaries.

9
 
TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(In thousands, except share data)

   
TAT Technologies Ltd. Shareholders
        
   
Share capital
          
Accumulated
                    
   
Number of shares issued
    
Amount
    
Additional paid-in capital
    
other comprehensive income (loss)
    
Treasury shares
    
Retained earnings
    
Total equity
  
                                           
BALANCE AT DECEMBER 31, 2014 (audited)
    
9,082,817
    
$
2,793
    
$
64,491
    
$
-
    
$
(2,088
)
  
$
20,345
    
$
85,541
  
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2015 (audited):
                                                        
Comprehensive income (loss)
    
-
      
-
      
-
      
(4
)
    
-
      
5,849
      
5,845
  
Share based compensation expenses
    
-
      
-
      
38
      
-
      
-
      
-
      
38
  
BALANCE AT DECEMBER 31, 2015 (audited)
    
9,082,817
      
2,793
      
64,529
      
(4
)
    
(2,088
)
    
26,194
      
91,424
  
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2016 (audited):
                                                        
Comprehensive income (loss)
    
-
      
-
      
-
      
(69
)
    
-
      
62
      
(7
)
Share based compensation expenses
    
-
      
-
      
105
      
-
      
-
      
-
      
105
  
 Exercise of options
    
20,100
      
4
      
126
      
-
      
-
      
-
      
130
  
 Dividend distributed
    
-
      
-
      
-
      
-
      
-
      
(3,000
)
    
(3,000
)
BALANCE AT DECEMBER 31, 2016 (audited)
    
9,102,917
      
2,797
      
64,760
      
(73
)
    
(2,088
)
    
23,256
      
88,652
  
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2017 (unaudited):
                                                        
Comprehensive income
    
-
      
-
      
-
      
208
      
-
      
2,396
      
2,604
  
 Share based compensation expenses
    
-
      
-
      
174
      
-
      
-
      
-
      
174
  
 Exercise of options
    
19,584
      
5
      
139
      
-
      
-
      
-
      
144
  
 Dividend distributed
    
-
      
-
      
-
      
-
      
-
      
(3,000
)
    
(3,000
)
BALANCE AT DECEMBER 31, 2017 (unaudited):
    
9,122,501
    
$
2,802
    
$
65,073
    
$
135
    
$
(2,088
)
  
$
22,652
    
$
88,574
  

10
 
TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 
   
Three months ended
    
Twelve months ended
  
   
December 31,
  
   
2017
    
2016
    
2017
    
2016
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
                         
CASH FLOWS FROM OPERATING ACTIVITIES:
                        
Net income (loss) attributable to TAT Technologies Ltd. shareholders
  
$
(257
)
  
$
1,617
    
$
2,396
    
$
62
  
                                 
Adjustments to reconcile net income to net cash provided by operating activities:
                                
                                 
Depreciation and amortization
    
1,005
      
976
      
3,941
      
3,636
  
Loss on sale of  property, plant and equipment
    
26
      
30
      
54
      
12
  
Interest from short-term bank deposits and restricted deposits
    
(6
)
    
(13
)
    
(6
)
    
(24
)
 Loss (gain) from change in fair value of derivatives
    
(387
)
    
18
      
(490
)
    
(152
)
Provision for doubtful accounts
    
283
      
(82
)
    
321
      
(29
)
Share in results of equity investment of affiliated Company
    
54
      
4
      
210
      
55
  
Share based compensation
    
23
      
41
      
174
      
105
  
Liability in respect of employee rights upon retirement
    
(119
)
    
63
      
241
      
123
  
Deferred income taxes, net
    
325
      
(143
)
    
382
      
1,670
  
Changes in operating assets and liabilities:
                                
   Decrease (increase) in trade accounts receivable
    
(23
)
    
1,149
      
(4,493
)
    
(2,392
)
   Decrease in other current assets and prepaid expenses
    
1,626
      
1,456
      
488
      
1,487
  
Decrease (increase) in inventory
    
(1,109
)
    
(1,340
)
    
210
      
(2,707
)
    Increase (decrease) in trade accounts payable
    
(857
)
    
(187
)
    
578
      
1,192
  
    Increase (decrease) in  accrued expenses
    
(421
)
    
1,163
      
(1,505
)
    
2,521
  
    Increase (decrease) in other long-term liabilities
    
(17
)
    
85
      
(5
)
    
(38
)
Net cash provided by operating activities
  
$
146
    
$
4,837
    
$
2,496
    
$
5,521
  
                                 
CASH FLOWS FROM INVESTING ACTIVITIES:
                                
Investment in affiliated company
    
-
      
(516
)
    
(383
)
    
(905
)
Funds in respect of employee rights upon retirement
    
(59
)
    
(73
)
    
(156
)
    
2
  
Proceeds from sale of property and equipment
    
-
      
(1
)
    
-
      
17
  
Purchase of property and equipment
    
(888
)
    
(1,041
)
    
(3,520
)
    
(5,702
)
Maturities of short-term deposits
    
-
      
-
      
500
      
7,182
  
Cash flows provided by (used in) investing activities
  
$
(947
)
  
$
(1,631
)
  
$
(3,559
)
  
$
594
  
                                 
CASH FLOWS FROM FINANCING ACTIVITIES:
                                
Realization of contingency
    
-
      
-
      
-
      
(500
)
Payment of cash dividend
    
-
      
-
      
(3,000
)
    
(3,000
)
 Exercise of options
    
-
      
-
      
144
      
130
  
Cash flows used in financing activities
  
$
-
    
$
-
    
$
(2,856
)
  
$
(3,370
)
                                 
Net increase (decrease) in cash and cash equivalents
    
(801
)
    
3,206
      
(3,919
)
    
2,745
  
                                 
Cash and cash equivalents at beginning of period
    
18,315
      
18,227
      
21,433
      
18,688
  
                                 
Cash and cash equivalents at end of period
  
$
17,514
    
$
21,433
    
$
17,514
    
$
21,433
  

11
 
TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
 RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (NON-GAAP) (UNAUDITED)
(In thousands)
 
   
Three months ended
    
Twelve months ended
  
   
December 31,
  
   
2017
    
2016
    
2017
    
2016
  
                         
                         
Net income (loss)
  
$
(257
)
  
$
1,617
    
$
2,396
    
$
62
  
Adjustments:
                                
Share in results of equity investment of affiliated companies
    
54
      
4
      
210
      
55
  
Taxes on income
    
677
      
420
      
2,333
      
3,865
  
Financial expenses, net
    
87
      
62
      
338
      
154
  
Depreciation and amortization
    
1,005
      
976
      
3,941
      
3,636
  
Share based compensation
    
23
      
41
      
174
      
105
  
Adjusted EBITDA
  
$
1,589
    
$
3,120
    
$
9,392
    
$
7,877
  

12
 
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: March 27, 2018
 
13