SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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 November 2008
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 [ ]
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 [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 re TAT Technologies Reports Third Quarter 2008 Results
dated November 13, 2008.
ITEM 1
Press Release Source: TAT Technologies Limited
TAT Technologies Reports Third Quarter 2008 Results
Thursday November 13, 5:52 pm ET
GEDERA, Israel, Nov. 13 /PRNewswire-FirstCall/ -- TAT Technologies Limited
(Nasdaq: TATTF - News), reported today its results for the three and nine month
periods ended September 30, 2008.
TAT Technologies Limited (TAT), directly and through its subsidiaries, provides
a variety of services and products to the aerospace industry, such as the
manufacture, maintenance and repair of 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; other environmental control and cooling systems and a variety of other
electronic and mechanical aircraft accessories.
TAT announced net income of $679,120 on revenues of $26,702,134 for the three
months ended September 30, 2008 compared to net income of $26,080,046 on
revenues of $20,862,079 for the three months ended September 30, 2007. The 2007
period benefited from the capital gain of $26.4 million that the company
recorded in connection with the July 2007 IPO of its 62% held subsidiary,
Limco-Piedmont Inc.
For the nine months ended September 30, 2008 TAT announced net income of
$3,582,221 on revenues of $72,145,103 compared to net income of $30,588,308 and
revenues of $68,983,537 for the same period ended September 30, 2007.
Revenues from the company's three principal lines of business for the three and
nine month periods ended September 30, 2008 and 2007 were as follows:
Three Months Ended September 30,
2008 2007
Revenues % of Total Revenues % of Total
Revenues Revenues
In Thousands
Revenues:
MRO Services 14,054 52.6% 12,821 61.5%
OEM products 9,153 34.3% 5,377 25.8%
Parts Services 4,773 17.9% 3,813 18.3%
Elimination (1,278) (4.8%) (1,149) (5.6%)
Total Revenues 26,702 100.0% 20,862 100.0%
Nine Months Ended September 30,
2008 2007
Revenues % of Total Revenues % of Total
Revenues Revenues
In Thousands
Revenues:
MRO Services 40,264 55.8% 37,877 54.9%
OEM products 22,599 31.3% 17,395 25.2%
Parts Services 13,360 18.5% 17,022 24.7%
Elimination (4,078) (5.6%) (3,311) (4.8%)
Total Revenues 72,145 100.0% 68,983 100.0%
The 28% and 5% increases in revenues for the three and nine month periods ended
September 30, 2008 compared with those of September 30, 2007, respectively,
reflect increased revenues in all three segments of the company in addition to
the consolidation of the company's 70% owned subsidiary, Bental Industries Ltd.
commencing August 18, 2008. Bental contributed revenues of $3,066 thousands
during the third quarter.
The decrease in net income for both the three and nine month periods ended
September 30, 2008 compared with those of September 30, 2007, is primarily
attributable to the $26.4 million capital gain recorded in connection with the
IPO of the company's 62% held subsidiary, Limco-Piedmont Inc. in July 2007. Also
impacting net income was the decrease in the net profits of the company's
operations in Israel from $1.7 million in the nine months ended September 30,
2007 to $ 911,000 in the nine months ended September 30, 2008, primarily
resulting from the decline in the exchange rate between the U.S. dollar and the
Israeli Shekel that resulted in increased operational expenses and decreased net
profit. Other factors impacting net income was a one time compensation charge of
$930,000 arising from the previously announced retirement of certain managers
and the decrease in the net profit of Limco-Piedmont from $4.4 million in the
nine months ended September 30, 2007 to $2.6 million in the nine months ended
September 30, 2008. The third quarter of 2008 results also reflect the positive
addition of $ 989,000 of net income attributable to Bental Industries Ltd.
Since the end of the second quarter, TAT, directly and through its subsidiaries,
has entered into a number of long-term agreements with customers for the
provision of products and services. Among such agreements, are agreements for
the provision of Heat Exchangers commencing in 2010, pursuant to which revenues
may reach approximately $20 to 35 million over a 5 to 15 years period. We also
entered into agreements to provide cooling systems commencing in 2009, pursuant
to which revenues may reach approximately $10 to 20 million over a 5 to 15 years
period.
Dr. Shmuel Fledel, TAT's CEO commented: "The third quarter of 2008 saw
encouraging revenue growth for the TAT group, versus the third quarter of last
year and second quarter of this year. We have experienced a decrease in our
gross margins, and consequently we are taking aggressive actions to manage costs
through the weakness that is developing in the aviation industries.
We are pursuing initiatives with new customers for 2009 and looking positively
towards the fourth quarter of 2008 and 2009. We believe that our business
opportunities, along with consistent expense control and improvement in
operational performance give us the ability to realize an improved fourth
quarter and 2009."
About TAT Technologies Ltd.
TAT Technologies Limited provides a variety of services and products to the
aerospace industry under three operational segments: (i) OEM products (ii) MRO
services and (iii) parts, each with the following characteristics:
Our OEM activities primarily relate to the manufacture and sale of 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. We also manufacture and sell other
environmental control and cooling systems and a variety of other electronic and
mechanical aircraft accessories and systems such as pumps, valves, power systems
and turbines.
Our MRO services include the remanufacture, overhaul and repair of heat transfer
equipment and other aircraft components, APUs, propellers and landing gear. Our
Limco-Piedmont subsidiary operates four FAA certified repair stations, which
provide aircraft component MRO services for airlines, air cargo carriers,
maintenance service centers and the military.
Our parts segment focuses on the sale of APU parts propellers and landing gear.
We offer parts services for commercial, regional and charter airlines and
business aircraft owners.
Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements that are subject to risks
and uncertainties. Factors that could cause actual results to differ materially
from these forward-looking statements include, 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, and other risks
detailed from time to time in the Company's filings with the Securities and
Exchange Commission. 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.
TAT TECHNOLOGIES AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
September 30, December 31,
2008 2007
ASSETS
Current Assets:
Cash and cash equivalents $23,201 $15,114
Short-term investments 21,110 28,806
Accounts receivable (net of allowance for
doubtful accounts of $202 and $140 at
September 30, 2008 and December 31, 2007,
respectively) 21,445 14,679
Inventories 37,736 28,189
Other accounts receivable and prepaid
expenses 5,966 4,047
Total current assets 109,458 90,835
Funds in respect of employee right upon
retirement 4,424 4,156
Property, plant and equipment, net 15,263 11,927
Intangible assets, net 2,307 1,709
Goodwill 6,501 4,780
Total assets $137,953 $113,407
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current maturities of long-term loans 165 -
Accounts payables 11,885 7,067
Other accounts payable and accrued
expenses 7,710 4,310
Total current liabilities 19,760 11,377
LONG-TERM LIABILITIES:
fair value of Call options to minority 2,408 -
Long-term loans, net of current maturities 5,247 -
Liability in respect of employee rights
upon retirement 5,030 4,175
Long-term deferred tax liability 1,000 581
13,685 4,756
Minority interest 28,586 24,481
SHAREHOLDERS' EQUITY:
Share capital
Ordinary shares of NIS 0.9 par value -
Authorized: 10,000,000 shares at
September 30, 2008 and December 31, 2007;
Issued and outstanding: 6,547,671 shares
and 6,542,671 shares at September 30,
2008 and December 31, 2007, respectively 2,202 2,201
Additional paid-in capital 39,468 39,308
Accumulated other comprehensive loss (308) -
Retained earnings 34,560 31,284
SHAREHOLDERS' EQUITY: 75,922 72,793
Total liabilities and shareholders' equity $137,953 $113,407
TAT TECHNOLOGIES AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
Three months ended Nine months ended
September 30, September 30,
2008 2007 2008 2007
Revenues
MRO services 14,054 12,821 40,264 37,877
OEM products 7,875 4,228 18,521 14,084
Parts services 4,773 3,813 13,360 17,022
26,702 20,862 72,145 68,983
Cost and operating expenses
Cost of revenue 20,684 15,816 55,354 50,035
Selling and marketing 1,329 967 3,468 2,817
General and
administrative 3,085 2,348 8,718 8,037
Operating income 1,604 1,731 4,605 8,094
Interest income(expense)
net 195 305 844 194
Other income, net - 26,374 - 26,393
Income before taxes and
minority interest 1,799 28,410 5,449 34,681
Provision for income taxes 818 1,862 1,375 3,625
Income before minority
interest 981 26,548 4,074 31,056
Share in result of affiliated
company prior to its
consolidation 252 - 686 -
Minority interest income (554) (468) (1,178) (468)
Net income $679 $26,080 $3,582 $30,588
Basic net income per share $0.10 $3.99 $0.55 $4.74
Diluted net income
per share $0.10 $3.98 $0.55 $4.68
Weighted average number
Of shares - basic 6,547,671 6,542,671 6,544,338 6,450,078
Weighted average number of
shares - diluted 6,557,559 6,558,362 6,559,186 6,530,396
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.
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(Registrant)
By: /s/Shmuel Fledel
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Shmuel Fledel
Chief Executive Officer
Date: November 14, 2008