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TAT Technologies Reports Year 2012 Third Quarter Results

GEDERA, Israel, November 23, 2012 /PRNewswire/ --



TAT Technologies Ltd. (NASDAQ: TATT - News), 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 nine month periods ended September 30, 2012.

Financial Highlights:

TAT announced revenues of $22.1 million with a net income of $1.8 million for the three months ended September 30, 2012, compared to revenues of $20.7 million with a net loss o f $ 3.3 million for the three months ended September 30, 2011 - an increase of 6.6% in revenues. The net loss reported for the 2011 third quarter was the result of a $5.76 million (before taxes) write down of inventories and impairment charges of long lived assets ( $3.61 million, net of taxes). Excluding these charges net profit for the 2011 third quarter was $0.3 million which reflects an increase of 440% in net income for the three months ended September 30, 2012 comparing to the corresponding period.

During the Third quarter of 2012, revenues were impacted by (i) the increase in revenues in the OEM of Heat Management Solutions segment; (ii) the increase in revenues in the OEM of Electric Motion Systems segment; (iii) the increase in revenues in the MRO Services for Aviation Components segment; (iv) partially offset by the decrease in revenues in the Heat Transfer Services and Products segment.  

Revenue breakdown by operating segments for the three month and nine month periods ended September 30, 2012 and 2011, respectively, was as follows:

                           Three Months Ended September 30,
                           2012                      2011              % of
                  Revenues        % of      Revenues        % of      Change
                     in          Total         in          Total      Between
                  Thousands     Revenues    Thousands     Revenues    Periods
                        Unaudited                 Unaudited
    Revenues
    OEM of Heat
    Management
    Solutions       $ 8,001        36.3%      $ 7,619        36.8%       5.0%
    Heat
    Transfer
    Services and
    Products          6,655        30.1%        6,892        33.3%     (3.4)%
    MRO services
    for Aviation
    Components        6,027        27.3%        5,019        24.2%      20.1%
    OEM of
    Electric
    Motion
    Systems           2,436        11.0%        2,027         9.8%      20.2%
    Eliminations    (1,040)       (4.7)%        (847)       (4.1)%      22.8%
    Total
    revenues       $ 22,079       100.0%     $ 20,710       100.0%       6.6%
                            Nine Months Ended September 30,
                                                                       % of
                                                                      Change
                                                                      Between
                           2012                      2011             Periods
                  Revenues        % of      Revenues        % of
                     in          Total         in          Total
                  Thousands     Revenues    Thousands     Revenues
                        Unaudited                 Unaudited
    Revenues
    OEM of Heat
    Management
    Solutions      $ 22,721        35.0%     $ 21,596        34.8%       5.2%
    Heat
    Transfer
    Services and
    Products         20,542        31.7%       19,965        32.2%       2.9%
    MRO services
    for Aviation
    Components       16,666        25.7%       14,803        23.9%      12.6%
    OEM of
    Electric
    Motion
    Systems           6,915        10.6%        8,555        13.8%    (19.2)%
    Eliminations    (1,961)       (3.0)%      (2,912)       (4.7)%    (32.7)%
    Total
    revenues       $ 64,883       100.0%     $ 62,007       100.0%       4.6%

For the nine months ended September 30, 2012, TAT announced revenues of $64.9 million with a net loss of $1.8 million compared to revenues of $62.0 million with net loss of $1.1 million for the nine months ended September 30, 2011 - an increase of 4.6% in revenues. The net loss reported for the nine month period ended September 30, 2012 is the result of a $1.0 million impairment charge of goodwill, recorded in the second quarter of 2012, in TAT's OEM for Electric Motion Systems operating segment and the $3.3 million impairment charge, also recorded in the second quarter of 2012, with respect to TAT's investment in FAvS (see further below). The net loss reported for the nine month period ended September 30, 2011 was the result of a $5.76 million (before taxes) write down of inventories and impairment charges of long lived assets ( $3.61 million, net of taxes). Excluding these impairment charges net profit for the nine months ended September 30, 2012, was $2.5 million similar to the net profit for nine months ended September 30, 2011.

During the nine months ended September 30, 2012, revenues were impacted by the increase in revenues in all our significant operating segments - the OEM of Heat Management Solutions segment, the Heat Transfer Services and Products segment and the MRO Services for Aviation Components segment; while revenues in the OEM of Electric Motion Systems significantly decreased due to growing weakness in the relevant defense markets. This decrease is a continuation of the decrease in revenues this segment had experienced during 2011.

Mr. Itsik Maaravi, TAT's CEO commented:  

"The results of the 2012 third quarter reflect the trend of continuous improvement Year over Year as we continued to increase revenues and gross margins compared to the corresponding periods in 2011. These improvements are attributed to the increase in our marketing and sales efforts during 2011 through 2012 as well as to our rigorous and continuing activity in improving our production flow and yields.

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