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TATTF Tat Technologies Ltd. (MM)

8.83
0.00 (0.00%)
26 Jul 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type
Tat Technologies Ltd. (MM) NASDAQ:TATTF NASDAQ Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 8.83 0 01:00:00

- Report of Foreign Issuer (6-K)

14/11/2008 2:35pm

Edgar (US Regulatory)


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 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.
(Registrant)

 By: /s/Shmuel Fledel
 ----------------
 Shmuel Fledel
 Chief Executive Officer


Date: November 14, 2008

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