☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of event requiring this shell company report |
Title of each class | Trading Symbol | Name of each exchange on which registered |
Ordinary Shares, NIS 0.90 Par Value | TATT | NASDAQ Global Market |
Large accelerated filer ☐ | Accelerated filer ☐ | Non-accelerated filer ☒ Emerging growth company ☐ |
U.S. GAAP ☒ | International Financial Reporting Standards as issued by the International Accounting Standards Board ☐ | Other ☐ |
Page | |||||
1 | |||||
A. | Selected Financial Data | ||||
B. | Capitalization and Indebtedness | ||||
C. | Reasons for the Offer and Use of Proceeds | ||||
D. | Risk Factors | ||||
A. | Business Overview | ||||
B. | Government Regulations | ||||
C. | Property, Plants and Equipment | ||||
A. | Research and Development, Patents and Licenses | ||||
B. | Trend Information | 50 | |||
C. | Off-Balance Sheet Arrangements | ||||
D. | Tabular Disclosure of Contractual Obligations | ||||
A. | Directors and Senior Management | ||||
B. | |||||
C. | |||||
D. | Employees | 64 | |||
E. | Share Ownership | ||||
F. | Disclosure of a Registrant’s Action to Recover Erroneously Awarded Compensation | 66 | |||
A. | Major Shareholders | ||||
B. | Related Party Transactions | ||||
C. | Interests of Experts and Counsel | ||||
A. | Consolidated Statements and Other Financial Information | ||||
B. | Significant Changes | ||||
A. | Offer and Listing Details | ||||
B. | Plan of Distribution | ||||
C. | Markets | ||||
D. | Selling Shareholders | ||||
E. | Dilution | ||||
F. | Expense of the Issue | ||||
A. | Share Capital | ||||
B. | Memorandum and Articles of Association | ||||
C. | |||||
D. | |||||
E. | |||||
F. | |||||
G. | |||||
H. | Documents on Display | 81 | |||
I. | Subsidiary Information |
87 | |||
87 | |||
87 | |||
Due
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019(*) | 2018(*) | 2017(*) | 2016(*) | ||||||||||||||||
(in thousands, except share and per share data) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Products | $ | 22,739 | $ | 25,019 | $ | 23,151 | $ | 36,053 | $ | 30,431 | ||||||||||
Services | 52,620 | 72,460 | 64,570 | 63,106 | 59,829 | |||||||||||||||
Total revenues | 75,359 | 97,479 | 87,721 | 99,159 | 90,260 | |||||||||||||||
Cost of revenues: | ||||||||||||||||||||
Products | 20,751 | 21,557 | 23,807 | 28,096 | 23,788 | |||||||||||||||
Services | 46,173 | 60,622 | 55,969 | 51,313 | 48,131 | |||||||||||||||
Total cost of revenues | 66,924 | 82,179 | 79,776 | 79,409 | 71,919 | |||||||||||||||
Gross profit | 8,435 | 15,300 | 7,945 | 19,750 | 18,341 | |||||||||||||||
Operating expenses: | �� | |||||||||||||||||||
Research and development, net | 185 | 113 | 458 | 621 | 1,054 | |||||||||||||||
Selling and marketing | 4,369 | 4,929 | 4,754 | 4,772 | 3,695 | |||||||||||||||
General and administrative | 7,612 | 7,654 | 7,901 | 8,668 | 9,364 | |||||||||||||||
Other expenses (income) | 315 | - | (4 | ) | 53 | (138 | ) | |||||||||||||
12,481 | 12,696 | 13,109 | 14,114 | 13,975 | ||||||||||||||||
Operating income (loss) from continuing operations | (4,046 | ) | 2,604 | (5,164 | ) | 5,636 | 4,366 | |||||||||||||
Financial expenses, net | (770 | ) | (422 | ) | (88 | ) | (286 | ) | (166 | ) | ||||||||||
Income (loss) from continuing operations before taxes on income | (4,816 | ) | 2,182 | (5,252 | ) | 5,350 | 4,200 | |||||||||||||
Taxes on income (tax benefit) | (1,517 | ) | 589 | (1,464 | ) | 2,333 | 3,865 | |||||||||||||
Income (loss) from continuing operations after taxes on income (tax benefit) | (3,299 | ) | 1,593 | (3,788 | ) | 3,017 | 335 | |||||||||||||
Share in results of equity investment of affiliated companies | (185 | ) | (132 | ) | (140 | ) | (210 | ) | (55 | ) | ||||||||||
Net income (loss) from continuing operations | (3,484 | ) | 1,461 | (3,928 | ) | 2,807 | 280 | |||||||||||||
Loss from discontinued operation before income tax | $ | (1,845 | ) | $ | (655 | ) | $ | (480 | ) | $ | (411 | ) | $ | (218 | ) | |||||
Net income (loss) attributable to TAT Technologies’ shareholders | $ | (5,329 | ) | $ | 806 | $ | (4,408 | ) | $ | 2,396 | $ | 62 | ||||||||
Basic and diluted net income (loss) per share: | ||||||||||||||||||||
Net income (loss) per share attributable to controlling interest | (0.6 | ) | 0.1 | (0.5 | ) | 0.27 | 0.01 | |||||||||||||
$ | (0.6 | ) | $ | 0.1 | $ | (0.5 | ) | $ | 0.27 | $ | 0.01 | |||||||||
Weighted average number of shares used in computing: | ||||||||||||||||||||
Basic net income (loss) per share | 8,874,696 | 8,874,696 | 8,864,885 | 8,848,028 | 8,828,444 | |||||||||||||||
Diluted net income (loss) per share | 8,874,696 | 8,874,696 | 8,864,885 | 8,909,072 | 8,830,764 | |||||||||||||||
Cash dividend per share | $ | - | $ | - | $ | - | $ | 0.34 | $ | 0.34 |
As of December 31, | ||||||||||||||||||||
2020 | 2019(*) | 2018(*) | 2017(*) | 2016(*) | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Working capital | $ | 54,260 | $ | 62,934 | $ | 62,778 | $ | 67,042 | $ | 66,683 | ||||||||||
Total assets | 116,121 | 114,675 | 103,287 | 111,977 | 109,583 | |||||||||||||||
Long-term liabilities, excluding current maturities | 10,657 | 8,601 | 4,312 | 5,083 | 3,322 | |||||||||||||||
Shareholders’ equity | $ | 80,281 | $ | 85,370 | $ | 84,294 | $ | 88,574 | $ | 88,652 |
(i) | Manufacturers based in the United States, such as the Hughes-Treitler division of Ametek Inc., Boyd Corporation, |
(ii) | Manufacturers based in Europe such as HS Marston Aerospace Ltd., a subsidiary of Collins Aerospace, Secan and Liebherr-Aerospace Toulouse S.A.; and |
(iii) | Manufacturers based in Asia such as Sumitomo Precision Products from Japan. |
• | Enhancing OEM capabilities — capitalizing on our technical expertise, experience and reputation in the market of heat transfer solutions to expand the scope of our OEM offerings to new aircrafts or to new platforms in the existing aircrafts. |
• | Expand the scope of MRO services—leveraging our technical expertise, engineering resources and facilities to broaden MRO services to additional types of aircraft and additional aircraft systems, subsystems and components while developing the required technical expertise to provide these additional MRO services. |
• | Increasing market share — continuing aggressive marketing efforts to win new customers as well as to expand activities with existing customers, partly by focusing on cross selling opportunities between our different businesses. As part of our efforts, we also intend to expand our marketing presence in existing territories, like the United States and Western Europe as well as new territories, where TAT currently has a smaller presence and fewer customers, such as Eastern Europe, Latin America and Asia. |
• | Effective synergy among group members — enhancing the synergies between our various businesses. For example, by supplying TAT Israel with heat transfer components manufactured in Limco for the sale of heat exchangers. |
• | Organic growth and M&A — in addition to growing our existing businesses organically as detailed above, we intend to evaluate complementary acquisition opportunities. |
Aircraft manufacturers | Boeing, |
System manufacturers/integrators and defense contractors | Liebherr, |
U.S. Domestic and international airlines and air cargo carriers | Air France-KLM, Lufthansa, FedEx, |
Maintenance service centers | Fokker, Honeywell International, Kellstrom Commercial, Aero Kool, Lufthansa Technik, |
Governments and military air forces | U.S. Army, U.S. Air Force and U.S. Navy; Israeli Ministry of Defense, |
Service divisions of OEMs – generally, each OEM of products in the heat transfer solutions segment has the necessary capabilities to provide MRO services for products it designs and manufactures throughout its lifetime, commencing with the initial warranty period and through the after-market period. Service divisions of OEMs may also acquire capabilities to service products of other OEMs to further expand their MRO services. |
(i) | OEM of heat transfer solutions and aviation components, such as heat exchangers, pre-coolers and oil/fuel hydraulic coolers (through |
(ii) | MRO services for heat transfer components and OEM of heat transfer solutions (through our Limco subsidiary); |
(iii) | MRO services for aviation components (through our Piedmont subsidiary); and |
(iv) | Overhaul and coating of jet engine components (through our Turbochrome subsidiary). |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2023 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||
Revenues in Thousands | % of Total Revenues | Revenues in Thousands | % of Total Revenues | Revenues in Thousands | % of Total Revenues | Revenues in Thousands | % of Total Revenues | Revenues in Thousands | % of Total Revenues | Revenues in Thousands | % of Total Revenues | |||||||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||
OEM of heat transfer solutions and aviation components | $ | 26,071 | 33.3 | % | $ | 26,589 | 26.1 | % | $ | 24,707 | 26.5 | % | ||||||||||||||||||||||||||||||||||||
OEM of heat transfer solutions and aviation accessories | 27,555 | 24.2 | % | 21,844 | 25.8 | % | 25,997 | 33.3 | % | |||||||||||||||||||||||||||||||||||||||
MRO services for heat transfer components and OEM of heat transfer solutions | 20,835 | 26.5 | % | 34,433 | 33.7 | % | 31,344 | 33.6 | % | 32,995 | 29 | % | 24,796 | 29.3 | % | 18,846 | 24.2 | % | ||||||||||||||||||||||||||||||
MRO services for aviation components | 31,189 | 39.7 | % | 38,687 | 37.9 | % | 32,487 | 34.9 | % | 50,760 | 44.5 | % | 35,879 | 42.4 | % | 33,232 | 42.6 | % | ||||||||||||||||||||||||||||||
Overhaul and coating of jet engine components | 3,546 | 4.5 | % | 8,610 | 8.4 | % | 9,697 | 10.4 | % | 6,854 | 6 | % | 5,770 | 6.8 | % | 3,834 | 4.9 | % | ||||||||||||||||||||||||||||||
Eliminations | (3,141 | ) | (4 | )% | (6,287 | ) | (6.2 | )% | (5,057 | ) | (5.4 | )% | (4,370 | ) | (3.7 | )% | (3,733 | ) | (4.3 | )% | (3,916 | ) | (5 | )% | ||||||||||||||||||||||||
Total Revenues | $ | 75,359 | 100 | % | $ | 102,032 | 100 | % | $ | 93,178 | 100 | % | $ | 113,794 | 100 | % | $ | 84,556 | 100 | % | $ | 77,973 | 100 | % |
Years Ended December 31, | ||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||
Revenues in Thousands | % of Total Revenues | Revenues in Thousands | % of Total Revenues | Revenues in Thousands | % of Total Revenues | |||||||||||||||||||
United States | $ | 47,095 | 62.5 | % | $ | 61,930 | 60.7 | % | $ | 54,032 | 58.0 | % | ||||||||||||
Israel | 6,851 | 9.1 | % | 7,088 | 6.9 | % | 6,924 | 7.4 | % | |||||||||||||||
Other | 21,413 | 28.4 | % | 33,014 | 32.4 | % | 32,222 | 34.6 | % | |||||||||||||||
Total | $ | 75,359 | 100.0 | % | $ | 102,032 | 100.0 | % | $ | 93,178 | 100.0 | % |
Years Ended December 31, | ||||||||||||||||||||||||
2023 | 2022 | 2021 | ||||||||||||||||||||||
Revenues in Thousands | % of Total Revenues | Revenues in Thousands | % of Total Revenues | Revenues in Thousands | % of Total Revenues | |||||||||||||||||||
United States | $ | 7,698 | 7 | % | $ | 56,570 | 66.9 | % | $ | 47,947 | 61.5 | % | ||||||||||||
Israel | 81,999 | 72 | % | 7,162 | 8.5 | % | 7,745 | 9.9 | % | |||||||||||||||
Other | 24,097 | 21 | % | 20,824 | 24.6 | % | 22,281 | 28.6 | % | |||||||||||||||
Total | $ | 113,794 | 100 | % | $ | 84,556 | 100.0 | % | $ | 77,973 | 100.0 | % |
Year Ended December 31 | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
(in thousands) | ||||||||||||
Revenues | ||||||||||||
OEM of heat transfer solutions and aviation components | $ | 26,071 | $ | 26,589 | 24,707 | |||||||
MRO services for heat transfer components and OEM of heat transfer solutions | 20,835 | 34,433 | 31,344 | |||||||||
MRO services for aviation components | 31,189 | 38,687 | 32,487 | |||||||||
Overhaul and coating of jet engine components | 3,546 | 4,057 | 4,240 | |||||||||
Eliminations | (3,141 | ) | (6,287 | ) | (5,057 | ) | ||||||
Total revenues | 75,359 | 97,479 | 87,721 | |||||||||
Cost of revenues | ||||||||||||
OEM of heat transfer solutions and aviation components | 21,703 | 23,998 | 25,612 | |||||||||
MRO services for heat transfer components and OEM of heat transfer solutions | 17,885 | 27,852 | 27,659 | |||||||||
MRO services for aviation components | 26,961 | 33,337 | 28,561 | |||||||||
Overhaul and coating of jet engine components | 3,312 | 3,460 | 3,287 | |||||||||
Eliminations | (2,937 | ) | (6,468 | ) | (5,343 | ) | ||||||
Total cost of revenues | 66,924 | 82,179 | 79,776 | |||||||||
Gross profit | 8,435 | 15,300 | 7,945 | |||||||||
Research and development costs, net | 185 | 113 | 458 | |||||||||
Selling and marketing | 4,369 | 4,929 | 4,754 | |||||||||
General and administrative | 7,612 | 7,654 | 7,901 | |||||||||
Other expenses (income) | 315 | - | (4 | ) | ||||||||
Operating income (loss) | (4,046 | ) | 2,604 | (5,164 | ) | |||||||
Financial expense, net | (770 | ) | (422 | ) | (88 | ) | ||||||
Income (loss) before taxes on income (tax benefit) | (4,816 | ) | 2,182 | (5,252 | ) |
Taxes on income (tax benefit) | (1,517 | ) | 589 | (1,464 | ) | |||||||
income (loss) before equity investment | (3,299 | ) | 1,593 | (3,788 | ) | |||||||
Share in results of affiliated company and impairment of share in affiliated companies | (185 | ) | (132 | ) | (140 | ) | ||||||
Net income (loss) from continued operation | $ | (3,484 | ) | $ | 1,461 | $ | (3,928 | ) | ||||
Net loss from discontinued operation | (1,845 | ) | (655 | ) | (480 | ) | ||||||
Net income (loss) | $ | (5,329 | ) | $ | 806 | $ | (4,408 | ) |
Year Ended December 31 | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
(in thousands) | ||||||||||||
Revenues | ||||||||||||
OEM of heat transfer solutions and aviation accessories | $ | 27,555 | $ | 21,844 | $ | 25,977 | ||||||
MRO services for heat transfer components and OEM of heat transfer solutions | 32,995 | 24,796 | 18,846 | |||||||||
MRO services for aviation components | 50,760 | 35,879 | 33,232 | |||||||||
Overhaul and coating of jet engine components | 6,854 | 5,770 | 3,834 | |||||||||
Eliminations | (4,370 | ) | (3,733 | ) | (3,916 | ) | ||||||
Total revenues | 113,794 | 84,556 | 77,973 | |||||||||
Cost of revenues | ||||||||||||
OEM of heat transfer solutions and aviation accessories | 20,193 | 18,778 | 24,044 | |||||||||
MRO services for heat transfer components and OEM of heat transfer solutions | 30,176 | 20,750 | 16,922 | |||||||||
MRO services for aviation components | 41,788 | 28,890 | 26,444 | |||||||||
Overhaul and coating of jet engine components | 4,110 | 3,495 | 2,978 | |||||||||
Eliminations | (4,941 | ) | (3,285 | ) | (3,685 | ) | ||||||
Total cost of revenues | 91,326 | 68,628 | 66,703 | |||||||||
Gross profit | 22,468 | 15,928 | 11,270 | |||||||||
Research and development costs, net | 715 | 479 | 517 | |||||||||
Selling and marketing | 5,523 | 5,629 | 5,147 | |||||||||
General and administrative | 10,558 | 9,970 | 8,354 | |||||||||
Other expenses (income) | (433 | ) | (90 | ) | (468 | ) | ||||||
Restructuring expenses, net | - | 1,715 | 1,755 | |||||||||
Operating income (loss) | 6,075 | (1,775 | ) | (4,035 | ) | |||||||
Financial income (expense), net | (1,330 | ) | 127 | (540 | ) | |||||||
Income (loss) before taxes on income (tax benefit) | 4,745 | (1,648 | ) | (4,575 | ) | |||||||
Taxes on income (tax benefit) | 576 | 98 | (662 | ) |
income (loss) before equity investment | 4,169 | (1,746 | ) | (3,913 | ) | |||||||
Share in results of affiliated company and impairment of share in affiliated companies | 503 | 184 | (76 | ) | ||||||||
Net income (loss) from continued operation | $ | 4,672 | $ | (1,562 | ) | $ | (3,989 | ) | ||||
Net income (loss) from discontinued operation | - | - | 427 | |||||||||
Net income (loss) | $ | 4,672 | $ | (1,562 | ) | $ | (3,562 | ) |
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Revenues | ||||||||||||
OEM of heat transfer solutions and aviation components | 30.6 | % | 27.5 | % | 28.2 | % | ||||||
MRO services for heat transfer components and OEM of heat transfer solutions | 27.4 | 35.2 | 35.7 | |||||||||
MRO services for aviation components | 41.4 | 39.5 | 37.0 | |||||||||
Overhaul and coating of jet engine components | 4.7 | 4.2 | 4.8 | |||||||||
Eliminations | (4.1 | ) | (6.4 | ) | (5.7 | ) | ||||||
Total revenues | 100 | 100 | 100 | |||||||||
Cost of revenues | ||||||||||||
OEM of heat transfer solutions and aviation components | 28.8 | 24.6 | 29.1 | |||||||||
MRO services for heat transfer components and OEM of heat transfer solutions | 23.7 | 28.5 | 31.5 | |||||||||
MRO services for aviation components | 35.7 | 34.2 | 32.5 | |||||||||
Overhaul and coating of jet engine components | 4.4 | 4.2 | 3.7 | |||||||||
Eliminations | (3.8 | ) | (6.6 | ) | (6.1 | ) | ||||||
Cost of revenues | 88.8 | 84.9 | 90.7 | |||||||||
Gross profit | 11.2 | 15.1 | 9.3 | |||||||||
Research and development costs, net | 0.2 | 0.1 | 0.5 | |||||||||
Selling and marketing | 5.9 | 5 | 5.4 | |||||||||
General and administrative | 10.1 | 7.8 | 9 | |||||||||
Other income | 0.4 | * | * | |||||||||
16.6 | 12.9 | 14.9 | ||||||||||
Operating income (loss) | (5.4 | ) | 2.2 | (5.6 | ) | |||||||
Financial expense, net | (1 | ) | (0.4 | ) | (0.1 | ) | ||||||
Income (loss) before taxes on income (tax benefit) | (6.4 | ) | 1.8 | (5.7 | ) | |||||||
Taxes on income (tax benefit) | (2 | ) | 0.6 | (1.6 | ) | |||||||
income (loss) before equity investment | (4.4 | ) | 1.2 | (4.1 | ) | |||||||
Share in results of affiliated company and impairment of share in affiliated companies | (0.2 | ) | (0.1 | ) | (0.2 | ) | ||||||
Net income (loss) from continued operation | (4.6 | ) | 1.1 | (4.3 | ) | |||||||
Net loss from discontinued operation | (2.5 | ) | (0.2 | ) | (0.4 | ) | ||||||
Net income (loss) | (7.1 | )% | (0.4 | )% | (4.8 | )% |
Year Ended December 31, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Revenues | ||||||||||||
OEM of heat transfer solutions and aviation components | 24.2 | % | 25.8 | % | 33.3 | % | ||||||
MRO services for heat transfer components and OEM of heat transfer solutions | 29 | 29.3 | 24.2 | |||||||||
MRO services for aviation components | 44.5 | 42.4 | 42.6 | |||||||||
Overhaul and coating of jet engine components | 6 | 6.8 | 4.9 | |||||||||
Eliminations | (3.7 | ) | (4.4 | ) | (5 | ) | ||||||
Total revenues | 100 | 100 | 100 | |||||||||
Cost of revenues | ||||||||||||
OEM of heat transfer solutions and aviation components | 17.4 | 22.2 | 30.8 | |||||||||
MRO services for heat transfer components and OEM of heat transfer solutions | 26.5 | 24.5 | 21.7 | |||||||||
MRO services for aviation components | 36.7 | 34.2 | 33.9 | |||||||||
Overhaul and coating of jet engine components | 3.6 | 4.1 | 3.8 | |||||||||
Eliminations | (4 | ) | (3.9 | ) | (4.7 | ) | ||||||
Cost of revenues | 80.2 | 81.2 | 85.5 | |||||||||
Gross profit | 19.7 | 18.8 | 14.5 | |||||||||
Research and development costs, net | 0.6 | 0.6 | 0.7 | |||||||||
Selling and marketing | 4.8 | 6.7 | 6.6 | |||||||||
General and administrative | 9.3 | 11.8 | 10.7 | |||||||||
Other expenses (income) | (0.4 | ) | (0.1 | ) | (0.6 | ) | ||||||
Restructuring expenses, net | 0 | 2 | 2.2 | |||||||||
14.3 | 21 | 19.6 | ||||||||||
Operating income (loss) | 5.3 | (2.1 | ) | (5.1 | ) | |||||||
Financial income (expense), net | (1.2 | ) | 0.2 | (0.7 | ) | |||||||
Income (loss) before taxes on income (tax benefit) | 4.2 | (1.9 | ) | (5.8 | ) | |||||||
Taxes on income (tax benefit) | 0.5 | 0.1 | (0.8 | ) | ||||||||
income (loss) before equity investment | 3.7 | (2.1 | ) | (5 | ) | |||||||
Share in results of affiliated company and impairment of share in affiliated companies | 0.4 | 0.2 | (0.1 | ) | ||||||||
Net income (loss) from continued operation | 4.1 | (1.8 | ) | (5.1 | ) | |||||||
Net income (loss) from discontinued operation | - | - | 0.5 | |||||||||
Net income (loss) | 4.1 | % | (1.8 | )% | (4.6 | )% |
Year Ended December 31, | ||||||||||||
(in thousands) | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Net cash provided by operating activities | $ | 5,947 | $ | 3,551 | $ | 2,155 | ||||||
Net cash used in investing activities | (5,407 | ) | (3,279 | ) | (3,841 | ) | ||||||
Net cash provided by (used in) financing activities | 7,652 | - | 197 | |||||||||
Net cash provided by (used in) discontinued activities | 153 | (263 | ) | (75 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 8,345 | 9 | (1,564 | ) | ||||||||
Cash and cash equivalents at beginning of the year | 15,959 | 15,950 | 17,514 | |||||||||
Cash and cash equivalents at end of the year | $ | 24,304 | $ | 15,959 | $ | 15,950 |
Year Ended December 31, | ||||||||||||
(in thousands) | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Net cash provided by (used in) operating activities | $ | 2,255 | $ | (4,867 | ) | $ | (2,269 | ) | ||||
Net cash used in investing activities | (3,579 | ) | (16,120 | ) | (5,407 | ) | ||||||
Net cash provided by financing activities | 10,240 | 15,798 | 7,652 | |||||||||
Net cash provided by (used in) discontinued activities | - | - | 153 | |||||||||
Net increase (decrease) in cash and cash equivalents | 8,916 | (5,189 | ) | 8,345 | ||||||||
Cash and cash equivalents at beginning of the year | 8,026 | 13,215 | 15,959 | |||||||||
Cash and cash equivalents at end of the year | $ | 16,942 | $ | 8,026 | $ | 24,304 |
Contractual Obligations | Payments due by Period (Amounts in Thousands US$) | |||||||||||||||||||
Total | Less than 1 year | 1-3 Years | 3-5 Years | More than 5 years | ||||||||||||||||
Operating lease obligations | 7,907 | 1,800 | 3,276 | 2,334 | 497 | |||||||||||||||
Purchase commitments | 8,577 | 7,721 | 856 | - | - | |||||||||||||||
Total | $ | 16,484 | $ | 9,521 | $ | 4,132 | $ | 2,334 | $ | 497 |
Contractual Obligations | Payments due by Period (Amounts in Thousands of US$) | |||||||||||||||||||
Total | Less than 1 year | 1-3 Years | 3-5 Years | More than 5 years | ||||||||||||||||
Operating lease obligations | 2,730 | 1,033 | 1,147 | 550 | - | |||||||||||||||
Purchase commitments | 24,927 | 10,732 | 4,195 | - | - | |||||||||||||||
Total | $ | 27,657 | $ | 21,765 | $ | 4,342 | $ | 550 | $ | - |
Name | Age | Position | |||
Amos Malka | Chairman of the Board of Directors | ||||
Igal Zamir | Chief Executive Officer and President | ||||
Ehud Ben - Yair | Chief Financial Officer | ||||
General Manager of Piedmont | |||||
Chief Operational Officer and acting General Manager of Limco | |||||
Director | |||||
External Director | |||||
Independent Director | |||||
Aviram Halevi (1)(2)(3)(4) | External Director |
Salaries, fees, Commissions and bonuses (Amounts in Thousands US$) | Other benefits (Amounts in Thousands US$) | |||||||
All directors and executive officers as a group (16 executives) | $ | 2,754 | $ | 138 |
Salaries, fees, Commissions and bonuses (Amounts in Thousands US$) | Other benefits (Amounts in Thousands US$) | |||||||
All directors and executive officers as a group (11 executives) | $ | 2,202 | $ | 41 |
Information Regarding Covered Executives (1) (Amounts in Thousands US$) | Information Regarding Covered Executives (1) (Amounts in Thousands US$) | Information Regarding Covered Executives (1) (Amounts in Thousands US$) | ||||||||||||||||||||||||||||||||||||||
Name and Principal Position(2) | Base Salary | Benefits and Perquisites(3) | Variable Compensation(4) | Equity-Based Compensation(5) | Total | Base Salary | Benefits and Perquisites(3) | Variable Compensation(4) | Equity-Based Compensation(5) | Total | ||||||||||||||||||||||||||||||
Igal Zamir, CEO and President | 336 | 81 | 110 | 2 | 529 | 350 | 116 | 174 | 11 | 651 | ||||||||||||||||||||||||||||||
Ehud Ben- Yair, CFO | 215 | 62 | 48 | 18 | 343 | 248 | 77 | 75 | 7 | 408 | ||||||||||||||||||||||||||||||
Ohad Milo, President of Gedera | 158 | 50 | 37 | 24 | 269 | |||||||||||||||||||||||||||||||||||
Dave Thomas, President of Piedmont | 190 | 13 | 117 | 31 | 351 | |||||||||||||||||||||||||||||||||||
Greg Watson, President of Limco | 203 | 13 | 20 | 2 | 238 | |||||||||||||||||||||||||||||||||||
Jason Lewandowski, COO | 260 | 40 | - | 68 | 368 | |||||||||||||||||||||||||||||||||||
Lars Hebjerg, VP Sales | 187 | 24 | 65 | - | 276 | |||||||||||||||||||||||||||||||||||
Liron Topaz, GM TAT Israel | 161 | 70 | 12 | 17 | 260 |
(1) | All amounts reported in the table are in terms of cost to TAT, as recorded in our financial statements. | |||
(2) | Cash compensation amounts denominated in currencies other than the U.S. dollar were converted into U.S. dollars at the average conversion rate for the year ended December 31, | |||
(3) | Amounts reported in this column include benefits and perquisites, including those mandated by applicable law. Such benefits and perquisites may include, to the extent applicable to each executive, payments, contributions and/or allocations for savings funds, pension, severance, vacation, car or car allowance, medical insurance and benefits, risk insurance (e.g., life, disability, accident), convalescence pay, payments for social security, tax gross-up payments and other benefits and perquisites consistent with our guidelines. | |||
(4) | Amounts reported in this column refer to variable compensation mainly bonus payments according to the company's incentive plan as recorded in our financial statements for the year ended December 31, | |||
(5) | Amounts reported in this column represent the expense recorded in our financial statements for the year ended December 31, |
| Active Chairman | CEO | Other Executives |
Company Target | 100% | 75% - 100% | 50%-100% |
Personal KPIs | NONE | NONE | 0%-30% |
Personal Evaluation | NONE | 0%-25% | 0% |
Name | Number of Ordinary Shares Beneficially Owned(1) | Percentage of Ownership(2) | ||||||
FIMI Funds (3) | 5,254,908 | 59.21 | % | |||||
Yelin Lapidot Holdings Management Ltd. (4) | 587,261 | 6.62 | % |
Name | Number of Ordinary Shares Beneficially Owned(1) | Percentage of Ownership(2) | ||||||
FIMI Funds (3) | 5,254,908 | 52 | % | |||||
Yelin Lapidot (4) | 704,406 | 7.00 | % |
(1) | Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. Ordinary shares relating to options and warrants currently exercisable or exercisable within 60 days of the date of this table are deemed outstanding for computing the percentage of the person holding such securities but are not deemed outstanding for computing the percentage of any other person. Except as indicated by footnote, and subject to community property laws where applicable, the persons named in the table above have sole voting and investment power with respect to all shares shown as beneficially owned by them. |
(2) | The percentages shown are based on |
(3) | Based on a Schedule 13D filed on August 14, 2013, and on Schedule 13D/A filed on December 12, 2016, FIMI Funds, FIMI FIVE 2012 Ltd., Shira and Ishay Davidi Management Ltd. and Mr. Ishay Davidi share voting and dispositive power with respect to the 5,254,908 ordinary shares held by the FIMI Funds. FIMI FIVE 2012 Ltd. is the managing general partner of the FIMI Funds. Shira and Ishay Davidi Management Ltd. controls FIMI FIVE 2012 Ltd. Mr. Ishay Davidi controls the Shira and Ishay Davidi Management Ltd. and is the Chief Executive Officer of all the entities listed above. The principal business address of each of the above entities and of Mr. Davidi is c/o FIMI FIVE 2012 Ltd., Electra Tower, 98 Yigal Alon St., Tel Aviv 6789141, Israel. |
(4) |
Year ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Income - | ||||||||||||
Sales to related-party company (*) | $ | 173 | $ | 596 | $ | 1,251 | ||||||
Cost and expenses - | ||||||||||||
Supplies from related party (*) | $ | 362 | $ | 552 | $ | 59 |
Year ended December 31, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Income - | ||||||||||||
Sales to related-party company (*) | - | $ | 17 | $ | 88 | |||||||
Cost and expenses - | - | |||||||||||
Supplies from related party (*) | - | - | $ | 654 |
December 31, | ||||||||
2020 | 2019 | |||||||
Trade receivables and other receivables (*) | $ | 740 | $ | 706 | ||||
Trade payables and other payables (*) | $ | 122 | $ | 154 |
December 31, | ||||||||
2023 | 2022 | |||||||
Trade receivables and other receivables (*) | - | - | ||||||
Trade payables and other payables (*) | - | - |
Material Contract | Location in This Annual Report | |
2012 Stock Option Plan | “ITEM 6.D Directors, Senior Management and Employees – Share Ownership – 2012 Stock Option Plan.” | |
2022 Stock Option Plan | “ITEM 6.D Directors, Senior Management and Employees – Share Ownership – 2022 Stock Option Plan.” | |
Compensation Policy for Directors and Executives | “ITEM 6.C Directors, Senior Management and Employees – Board Practices – Compensation of Executive Officers and Directors.” | |
Indemnification Agreement of Directors and Officers | “ITEM 6.C – Directors, Senior Management and Employees – Board Practices – Indemnification and Insurance of Directors and Officers.” |
(a) | Disclosure Controls and Procedures |
(b) | Management's Annual Report on Internal Control over Financial Reporting |
(c) | Attestation report of independent registered public accounting firm |
Year Ended December 31, | ||||||||
Services Rendered | 2020 | 2019 | ||||||
Audit (1) | $ | 192,834 | $ | 206,847 | ||||
Tax (2) | 26,198 | 20,216 | ||||||
Total | $ | 219,032 | $ | 227,063 |
Year Ended December 31, | ||||||||
Services Rendered | 2023 | 2022 | ||||||
Audit (1) | $ | 396,873 | $ | 248,524 | ||||
Tax (2) | 19,571 | 23,262 | ||||||
Total | $ | 413,444 | $ | 271,786 |
(1) | Audit fees are for audit services for each of the years shown in the table, including fees associated with the annual audit and reviews of our quarterly financial results, consultations on various accounting issues and audit services provided in connection with other statutory or regulatory filings. |
(2) | Tax fees relate to professional services rendered for tax compliance and tax advice. These services include assistance regarding international and Israeli taxation. |
o | The securities issued amount to 20% or more of our outstanding voting rights before the issuance; |
o | Some or all of the consideration is other than cash or listed securities or the transaction is not in accordance with market terms; and |
o | The transaction will increase the relative holdings of a shareholder that holds 5% or more of our outstanding share capital or voting rights or that it will cause any person to become, as a result of the issuance, a holder of more than 5% of our outstanding share capital or voting rights. |
Consolidated Financial Statements of the Company | |
1.1 | Memorandum of Association of the Registrant(1) |
101.INS | Inline XBRL Instance Document. |
101.SCH | Inline XBRL Taxonomy Extension Schema Document. |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
101.DEF | Inline XBRL Taxonomy Definition Linkbase Document. |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
(1) | Filed as an exhibit to the Registrant’s Annual Report on Form 20-F for the year ended December 31, 1992, and incorporated herein by reference. |
(2) |
(3) | Filed as Exhibit 2.1 to the Registrant’s Annual Report on Form 20-F for the year ended December 31, |
(4) |
Filed as an exhibit to the Registrant’s Annual Report on Form 20-F for the year ended December 31, |
(5) | Filed as Exhibit to the Registrant’s Form 6-K filed with the Securities and Exchange Commission on October 3, 2022, and incorporated herein by reference. |
(6) | Filed as |
(7) | Filed as an exhibit to the Registrant’s Annual Report on Form 20-F for the year ended December 31, |
TAT TECHNOLOGIES LTD. | |||
By: | /s/ Ehud Ben-Yair | ||
Ehud Ben-Yair | |||
Chief Financial Officer (Principal Financial and Accounting Officer) |
Page | |
Report of Independent Registered Public Accounting Firm (PCAOB ID Number 1309) | F-3-F-4 |
F-5-F-6 | |
F-7-F-8 | |
F-9 | |
F-10 | |
F-11-F12 | |
F-13-F-56 |
Tel-Aviv, Israel | Kesselman & Kesselman |
March | Certified Public Accountants |
A member firm of PricewaterhouseCoopers International Limited |
CONSOLIDATED BALANCE SHEETS |
U.S dollars in thousands |
December 31, | ||||||||
2023 | 2022 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 15,979 | $ | 7,722 | ||||
Accounts receivable, net of allowance for credit losses of $345 and $527 thousand as of December 31, 2023 and December 31, 2022 respectively | 20,009 | 15,622 | ||||||
Restricted deposit | 661 | - | ||||||
Other current assets and prepaid expenses | 6,397 | 6,047 | ||||||
Inventory | 51,280 | 45,759 | ||||||
Total current assets | 94,326 | 75,150 | ||||||
NON-CURRENT ASSETS: | ||||||||
Restricted deposit | 302 | 304 | ||||||
Investment in affiliates | 2,168 | 1,665 | ||||||
Funds in respect of employee rights upon retirement | 664 | 780 | ||||||
Deferred income taxes | 994 | 1,229 | ||||||
Property, plant and equipment, net | 42,554 | 43,423 | ||||||
Operating lease right of use assets | 2,746 | 2,477 | ||||||
Intangible assets, net | 1,823 | 1,623 | ||||||
Total non-current assets | 51,251 | 51,501 | ||||||
Total assets | 145,577 | $ | 126,651 |
December 31, | ||||||||
2020 | 2019 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 24,128 | $ | 15,959 | ||||
Accounts receivable, net of allowance for credit losses of $306 thousands as of December 31, 2020 | 11,355 | 20,311 | ||||||
Inventory, net | 41,223 | 43,327 | ||||||
Other current assets and prepaid expenses | 2,737 | 2,605 | ||||||
Assets belong to discontinued operation | - | 1,401 | ||||||
Total current assets | 79,443 | 83,603 | ||||||
NON-CURRENT ASSETS: | ||||||||
Restricted deposit | 176 | - | ||||||
Investment in affiliates | 771 | 956 | ||||||
Funds in respect of employee rights upon retirement | 1,186 | 1,404 | ||||||
Deferred income taxes | 566 | 228 | ||||||
Property, plant and equipment, net | 25,737 | 20,605 | ||||||
Operating lease right of use assets | 6,767 | 6,664 | ||||||
Intangible assets, net | 1,475 | 389 | ||||||
Assets belong to discontinued operation | - | 826 | ||||||
Total non-current assets | 36,678 | 31,072 | ||||||
Total assets | $ | 116,121 | $ | 114,675 |
F - 4
December 31, | December 31, | |||||||||||||||
2020 | 2019(*) | 2023 | 2022 | |||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||
CURRENT LIABILITIES: | ||||||||||||||||
Current maturities of long-term loans | $ | 1,477 | $ | - | $ | 2,200 | $ | 1,876 | ||||||||
Credit line from bank | 3,000 | - | 12,138 | 6,101 | ||||||||||||
Accounts payable | 12,222 | 11,823 | 9,988 | 10,233 | ||||||||||||
Accrued expenses | 6,691 | 7,393 | ||||||||||||||
Accrued expenses and other | 13,952 | 9,876 | ||||||||||||||
Operating lease liabilities | 1,614 | 1,330 | 1,033 | 904 | ||||||||||||
Liabilities belong to discontinued operation | 179 | 158 | ||||||||||||||
Total current liabilities | 25,183 | 20,704 | 39,311 | 28,990 | ||||||||||||
NON-CURRENT LIABILITIES: | ||||||||||||||||
Long-term loans | 3,489 | - | 12,886 | 19,408 | ||||||||||||
Other long-term liabilities | - | 62 | ||||||||||||||
Liability in respect of employee rights upon retirement | 1,410 | 1,751 | 1,000 | 1,148 | ||||||||||||
Deferred income taxes | - | 1,100 | ||||||||||||||
Operating lease liabilities | 5,758 | 5,688 | 1,697 | 1,535 | ||||||||||||
Total non-current liabilities | 10,657 | 8,601 | 15,583 | 22,091 | ||||||||||||
COMMITMENTS AND CONTINGENT LIABILITIES (NOTE 13) | ||||||||||||||||
COMMITMENTS AND CONTINGENCIES (NOTE 15) | ||||||||||||||||
Total liabilities | 35,840 | 29,305 | 54,894 | 51,081 | ||||||||||||
EQUITY: | ||||||||||||||||
Ordinary shares of NIS 0.9 par value: Authorized: 13,000,000 shares at December 31, 2020 and at December 31, 2019; Issued: 9,854,696 shares at December 31, 2020 and at December 31, 2019; Outstanding: 8,874,696 shares at December 31, 2020 and at December 31, 2019 | 2,809 | 2,809 | ||||||||||||||
Ordinary shares of NIS 0.9 par value: Authorized: 13,000,000 shares at December 31, 2023 and at December 31, 2022; Issued: 10,377,085 and 9,186,019 shares at December 31, 2023 and at December 31, 2022 respectively; Outstanding: 10,102,612 and 8,911,546 shares at December 31, 2023 and at December 31, 2022 respectively | 3,140 | 2,842 | ||||||||||||||
Additional paid-in capital | 65,711 | 65,573 | 76,335 | 66,245 | ||||||||||||
Treasury shares, at cost, 274,473 shares at December 31, 2020 and 2019 | (2,088 | ) | (2,088 | ) | ||||||||||||
Treasury shares, at cost, 274,473 shares at December 31, 2023 and 2022 | (2,088 | ) | (2,088 | ) | ||||||||||||
Accumulated other comprehensive income (loss) | 128 | 26 | 27 | (26 | ) | |||||||||||
Retained earnings | 13,721 | 19,050 | 13,269 | 8,597 | ||||||||||||
Total shareholders' equity | 80,281 | 85,370 | 90,683 | 75,570 | ||||||||||||
Total liabilities and shareholders' equity | $ | 116,121 | $ | 114,675 | 145,577 | $ | 126,651 |
F - 56
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||
2020 | 2019(*) | 2018(*) | 2023 | 2022 | 2021 | |||||||||||||||||||
Revenue: | ||||||||||||||||||||||||
Products | $ | 22,739 | $ | 25,019 | $ | 23,151 | $ | 35,241 | $ | 25,460 | $ | 25,870 | ||||||||||||
Services | 52,620 | 72,460 | 64,570 | 78,553 | 59,096 | 52,103 | ||||||||||||||||||
75,359 | 97,479 | 87,721 | 113,794 | 84,556 | 77,973 | |||||||||||||||||||
Cost of revenue: | ||||||||||||||||||||||||
Cost of revenue, net: | ||||||||||||||||||||||||
Products | 20,751 | 21,557 | 23,807 | 30,517 | 21,631 | 23,761 | ||||||||||||||||||
Services | 46,173 | 60,622 | 55,969 | 60,809 | 46,997 | 42,942 | ||||||||||||||||||
66,924 | 82,179 | 79,776 | 91,326 | 68,628 | 66,703 | |||||||||||||||||||
Gross profit | 8,435 | 15,300 | 7,945 | 22,468 | 15,928 | 11,270 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Research and development, net | 185 | 113 | 458 | 715 | 479 | 517 | ||||||||||||||||||
Selling and marketing | 4,369 | 4,929 | 4,754 | |||||||||||||||||||||
General and administrative | 7,612 | 7,654 | 7,901 | |||||||||||||||||||||
Other expense (income) | 315 | - | (4 | ) | ||||||||||||||||||||
Selling and marketing, net | 5,523 | 5,629 | 5,147 | |||||||||||||||||||||
General and administrative, net | 10,588 | 9,970 | 8,354 | |||||||||||||||||||||
Other (income) expenses | (433 | ) | (90 | ) | (468 | ) | ||||||||||||||||||
Restructuring expenses, net | - | 1,715 | 1,755 | |||||||||||||||||||||
12,481 | 12,696 | 13,109 | 16,393 | 17,703 | 15,305 | |||||||||||||||||||
Operating income (loss) | (4,046 | ) | 2,604 | (5,164 | ) | 6,075 | (1,775 | ) | (4,035 | ) | ||||||||||||||
Financial expenses | (999 | ) | (1,270 | ) | (1,555 | ) | ||||||||||||||||||
Financial income | 229 | 848 | 1,467 | |||||||||||||||||||||
Interest expenses | (1,683 | ) | (902 | ) | (250 | ) | ||||||||||||||||||
Other financial income (expenses), net | 353 | 1,029 | (290 | ) | ||||||||||||||||||||
Income (loss) before taxes on income (tax benefit) | (4,816 | ) | 2,182 | (5,252 | ) | |||||||||||||||||||
Income profit (loss) before taxes on income (tax benefit) | 4,745 | (1,648 | ) | (4,575 | ) | |||||||||||||||||||
Taxes on income (tax benefit) | (1,517 | ) | 589 | (1,464 | ) | 576 | 98 | (662 | ) | |||||||||||||||
Income (loss) before share of equity investment | (3,299 | ) | 1,593 | (3,788 | ) | |||||||||||||||||||
Profit (Loss) before share of equity investment | 4,169 | (1,746 | ) | (3,913 | ) | |||||||||||||||||||
Share in results of equity investment of affiliated companies | (185 | ) | (132 | ) | (140 | ) | ||||||||||||||||||
Share in profit (losses) of equity investment of affiliated companies | 503 | 184 | (76 | ) | ||||||||||||||||||||
Net income (loss) from continued operation | $ | (3,484 | ) | $ | 1,461 | $ | (3,928 | ) | $ | 4,672 | $ | (1,562 | ) | $ | (3,989 | ) |
F - 6
Year ended December 31, | ||||||||||||
2020 | 2019(*) | 2018(*) | ||||||||||
Net loss from discontinued operation | $ | (1,845 | ) | $ | (655 | ) | $ | (480 | ) | |||
Net income (loss) | $ | (5,329 | ) | $ | 806 | $ | (4,408 | ) | ||||
Net income (loss) per share basic and diluted from continued operation | $ | (0.39 | ) | $ | 0.17 | $ | (0.45 | ) | ||||
Net loss per share basic and diluted from discontinued operation | $ | (0.21 | ) | $ | (0.07 | ) | $ | (0.05 | ) | |||
Net income (loss) per share basic and diluted | $ | (0.6 | ) | $ | 0.1 | $ | (0.5 | ) | ||||
Weighted average number of shares outstanding: | ||||||||||||
Basic | 8,874,696 | 8,874,696 | 8,864,885 | |||||||||
Diluted | 8,874,696 | 8,874,696 | 8,864,885 |
Year ended December 31, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Net income (loss) from discontinued operation | - | - | $ | 427 | ||||||||
Net income (loss) | $ | 4,672 | $ | (1,562 | ) | $ | (3,562 | ) | ||||
Net income (loss) per share from continued operation —basic | $ | 0.52 | $ | (0.175 | ) | $ | (0.45 | ) | ||||
Net income (loss) per share from continued operation —diluted | $ | 0.51 | $ | (0.175 | ) | $ | (0.45 | ) | ||||
Net income (loss) per share from discontinued operation - basic and diluted | - | - | $ | 0.05 | ||||||||
Net income (loss) per share — basic | $ | 0.52 | $ | (0.175 | ) | $ | (0.4 | ) | ||||
Net income (loss) per share — diluted | $ | 0.51 | $ | (0.175 | ) | $ | (0.4 | ) | ||||
Weighted average number of shares outstanding: | ||||||||||||
Basic | 8,961,689 | 8,911,546 | 8,874,696 | |||||||||
Diluted | 9,084,022 | 8,911,546 | 8,874,696 |
F - 7
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||
2020 | 2019(*) | 2018(*) | 2023 | 2022 | 2021 | |||||||||||||||||||
Net income (loss) | $ | (5,329 | ) | $ | 806 | $ | (4,408 | ) | ||||||||||||||||
Net profit (loss) | $ | 4,672 | $ | (1,562 | ) | $ | (3,562 | ) | ||||||||||||||||
Other comprehensive income (loss), net | ||||||||||||||||||||||||
Net unrealized gains (losses) from derivatives | 232 | 372 | (672 | ) | 53 | (89 | ) | (76 | ) | |||||||||||||||
Reclassification adjustments for gains from derivatives included in net income | (130 | ) | (140 | ) | 331 | |||||||||||||||||||
Reclassification adjustments for loss (gains) from derivatives included in net income | - | 30 | (19 | ) | ||||||||||||||||||||
Total other comprehensive income (loss) | $ | 102 | $ | 232 | $ | (341 | ) | 53 | $ | (59 | ) | $ | (95 | ) | ||||||||||
Total comprehensive income (loss) | $ | (5,227 | ) | $ | 1,038 | $ | (4,749 | ) | $ | 4,725 | $ | (1,621 | ) | $ | (3,657 | ) |
F - 89
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
Share capital | Accumulated other comprehensive income (loss) | |||||||||||||||||||||||||||
Number of shares issued | Amount | Additional paid-in capital | Treasury shares | Retained earnings | Total equity | |||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2017 | 9,102,917 | $ | 2,802 | $ | 65,073 | $ | 135 | $ | (2,088 | ) | $ | 22,652 | $ | 88,574 | ||||||||||||||
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2017: | ||||||||||||||||||||||||||||
Comprehensive income (loss) | - | - | - | (341 | ) | - | (4,408 | ) | (4,749 | ) | ||||||||||||||||||
Share based compensation | - | - | 272 | - | - | - | 272 | |||||||||||||||||||||
Exercise of options | 19,584 | 7 | 190 | - | - | - | 197 | |||||||||||||||||||||
BALANCE AT DECEMBER 31, 2018 | 9,122,501 | $ | 2,809 | $ | 65,535 | $ | (206 | ) | $ | (2,088 | ) | $ | 18,244 | $ | 84,294 | |||||||||||||
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2018: | ||||||||||||||||||||||||||||
Comprehensive income | - | - | - | 232 | - | 806 | 1,038 | |||||||||||||||||||||
Share based compensation | - | �� | - | 38 | - | - | - | 38 | ||||||||||||||||||||
BALANCE AT DECEMBER 31, 2019 | 9,149,169 | $ | 2,809 | $ | 65,573 | $ | 26 | $ | (2,088 | ) | $ | 19,050 | $ | 85,370 | ||||||||||||||
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2019: | ||||||||||||||||||||||||||||
Comprehensive income (loss) | - | - | - | 102 | - | (5,329 | ) | (5,227 | ) | |||||||||||||||||||
Share based compensation | - | - | 138 | - | - | - | 138 | |||||||||||||||||||||
BALANCE AT DECEMBER 31, 2020 | 9,149,169 | $ | 2,809 | $ | 65,711 | $ | 128 | $ | (2,088 | ) | 13,721 | $ | 80,281 |
Ordinary shares | ||||||||||||||||||||||||||||
Number of shares issued | Amount | Additional paid-in capital | Accumulated other comprehensive income (loss) | Treasury shares | Retained earnings | Total equity | ||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2020 | 9,149,169 | $ | 2,809 | $ | 65,711 | $ | 128 | $ | (2,088 | ) | 13,721 | $ | 80,281 | |||||||||||||||
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2020: | ||||||||||||||||||||||||||||
Comprehensive loss | - | - | - | (95 | ) | - | (3,562 | ) | (3,657 | ) | ||||||||||||||||||
Share based compensation | - | - | 160 | - | - | - | 160 | |||||||||||||||||||||
BALANCE AT DECEMBER 31, 2021 | 9,149,169 | $ | 2,809 | $ | 65,871 | $ | 33 | $ | (2,088 | ) | 10,159 | $ | 76,784 | |||||||||||||||
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2021: | ||||||||||||||||||||||||||||
Comprehensive loss | - | - | - | (59 | ) | - | (1,562 | ) | (1,621 | ) | ||||||||||||||||||
Exercise of Options | 36,850 | 33 | 156 | - | - | - | 189 | |||||||||||||||||||||
Share based compensation | - | - | 218 | - | - | - | 218 | |||||||||||||||||||||
BALANCE AT DECEMBER 31, 2022 | 9,186,019 | $ | 2,842 | $ | 66,245 | $ | (26 | ) | $ | (2,088 | ) | $ | 8,597 | $ | 75,570 | |||||||||||||
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2022: | ||||||||||||||||||||||||||||
Comprehensive income | 53 | 4,672 | 4,725 | |||||||||||||||||||||||||
Exercise of Options | 32,466 | 8 | 157 | 165 | ||||||||||||||||||||||||
Issuance of common shares net of issuance costs of $141 thousands | 1,158,600 | 290 | 9,774 | 10,064 | ||||||||||||||||||||||||
Share based compensation | 159 | 159 | ||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2023 | 10,377,085 | $ | 3,140 | $ | 76,335 | $ | 27 | $ | (2,088 | ) | 13,269 | 90,683 |
F - 910
Year ended December 31, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net income (loss) from continued operations | $ | 4,672 | $ | (1,562 | ) | $ | (3,989 | ) | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||
Depreciation and amortization | 4,710 | 3,706 | 4,881 | |||||||||
Loss (gain) from change in fair value of derivatives | (9 | ) | 8 | (19 | ) | |||||||
Change in funds in respect of employee rights upon retirement | 116 | 377 | 76 | |||||||||
Change in operating right of use asset and operating leasing liability | 22 | (82 | ) | (73 | ) | |||||||
Lease modification | - | - | (1,315 | ) | ||||||||
Non cash financial expenses | (172 | ) | (902 | ) | 8 | |||||||
Increase (decrease) in restructuring plan provision | (126 | ) | (467 | ) | 657 | |||||||
change in allowance for credit losses | (182 | ) | 138 | 248 | ||||||||
Share in results of affiliated companies | (503 | ) | (184 | ) | 76 | |||||||
Share based compensation | 159 | 218 | 160 | |||||||||
Liability in respect of employee rights upon retirement | (148 | ) | (356 | ) | 94 | |||||||
Impairment of fixed assets | - | - | 1,820 | |||||||||
Capital gain from sale of property, plant and equipment | (530 | ) | (90 | ) | (468 | ) | ||||||
Deferred income taxes, net | 235 | 23 | (686 | ) | ||||||||
Government loan forgiveness | - | - | (1,442 | ) | ||||||||
Changes in operating assets and liabilities: | ||||||||||||
increase in trade accounts receivable | (4,205 | ) | (2,659 | ) | (2,934 | ) | ||||||
increase in other current assets and prepaid expenses | (341 | ) | (1,836 | ) | (1,035 | ) | ||||||
increase in inventory | (5,400 | ) | (5,069 | ) | (681 | ) | ||||||
Increase (decrease) in trade accounts payable | (245 | ) | 1,143 | 2,571 | ||||||||
Increase (decrease) in accrued expenses and other | 4,202 | 2,727 | (218 | ) | ||||||||
Net cash provided by (used in) operating activities from continued operation | $ | 2,255 | $ | (4,867 | ) | $ | (2,269 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Proceeds from sale of property and equipment | 2,002 | 93 | 1,163 | |||||||||
Purchase of property and equipment | (5,102 | ) | (16,213 | ) | (16,247 | ) | ||||||
Purchase of intangible assets | (479 | ) | - | (555 | ) | |||||||
Net cash used in investing activities from continued operations | (3,579 | ) | $ | (16,120 | ) | $ | (15,639 | ) |
Year ended December 31, | ||||||||||||
2020 | 2019(*) | 2018(*) | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net income (loss) | $ | (5,329 | ) | $ | 806 | $ | (4,408 | ) | ||||
Net income (loss) from continued operations | (3,484 | ) | 1,461 | (3,928 | ) | |||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||
Depreciation and amortization | 4,065 | 4,292 | 4,065 | |||||||||
Loss on sale of property, plant and equipment | - | - | - | |||||||||
Loss (gain) from change in fair value of derivatives | (34 | ) | (311 | ) | 382 | |||||||
Non cash finance expense | 566 | 354 | - | |||||||||
Change in provision for doubtful accounts | (8 | ) | 38 | (347 | ) | |||||||
Share in results of affiliated companies | 185 | 132 | 140 | |||||||||
Share based compensation | 138 | 38 | 272 | |||||||||
Liability in respect of employee rights upon retirement | (341 | ) | (897 | ) | (587 | ) | ||||||
Impairment of intangible assets | 298 | - | - | |||||||||
Deferred income taxes, net | (1,438 | ) | (450 | ) | (102 | ) | ||||||
Changes in operating assets and liabilities: | ||||||||||||
Decrease (increase) in trade accounts receivable | 9,472 | (2,037 | ) | 6,477 | ||||||||
Decrease (increase) in other current assets and prepaid expenses | 310 | 2,500 | (1,575 | ) | ||||||||
Decrease (increase) in inventory | 1,868 | (5,740 | ) | 381 | ||||||||
Increase (decrease) in trade accounts payable | (5,336 | ) | 3,349 | (1,137 | ) | |||||||
Increase (decrease) in accrued expenses | (252 | ) | 982 | (1,920 | ) | |||||||
Increase (decrease) in other long-term liabilities | (62 | ) | (118 | ) | 34 | |||||||
Net cash provided by operating activities from continued operation | $ | 5,947 | $ | 3,593 | $ | 2,155 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Investment in affiliated company | - | (10 | ) | (26 | ) | |||||||
Funds in respect of employee rights upon retirement | - | - | (22 | ) | ||||||||
Proceeds from sale of property and equipment | - | - | 7 | |||||||||
Purchase of property and equipment | (3,894 | ) | (3,269 | ) | (4,270 | ) | ||||||
Purchase of intangible assets | (1,513 | ) | - | - | ||||||||
Maturities of deposits | - | - | 470 | |||||||||
Net cash used in continued investing activities | $ | (5,407 | ) | $ | (3,279 | ) | $ | (3,841 | ) |
F - 1011
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||
2020 | 2019(*) | 2018(*) | 2023 | 2022 | 2021 | |||||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||||||
Repayments of long-term loans | (1,701 | ) | (1,071 | ) | - | |||||||||||||||||||
Short-term credit received from banks | 3,960 | - | - | 1,000 | - | 3,000 | ||||||||||||||||||
Proceeds from long-term loans received | 3,692 | 712 | 16,680 | 3,042 | ||||||||||||||||||||
Proceeds from issuance of common shares, net | 10,064 | - | - | |||||||||||||||||||||
Exercise of options | - | - | 197 | 165 | 189 | - | ||||||||||||||||||
Net cash provided by continued financing activities | 7,652 | - | 197 | |||||||||||||||||||||
Net cash provided by financing activities from continued operations | 10,240 | $ | 15,798 | $ | 6,042 | |||||||||||||||||||
CASH FLOWS FROM DISCONTINUED ACTIVITIES: | ||||||||||||||||||||||||
Net loss from discontinued operation | (1,845 | ) | $ | (655 | ) | $ | (480 | ) | ||||||||||||||||
Net cash provided by operating activities | 1,998 | 484 | 405 | - | - | 777 | ||||||||||||||||||
Net cash used in investing activities | - | (134 | ) | - | ||||||||||||||||||||
Net cash provided by (used in) discontinued activities | 153 | $ | (305 | ) | (75 | ) | - | - | $ | 777 | ||||||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | 8,345 | 9 | (1,564 | ) | ||||||||||||||||||||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 15,959 | 15,950 | 17,514 | |||||||||||||||||||||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR | 24,304 | 15,959 | 15,950 | |||||||||||||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS | 8,916 | (5,189 | ) | (11,089 | ) | |||||||||||||||||||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS AT BEGINNING OF YEAR | 8,026 | 13,215 | 24,304 | |||||||||||||||||||||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS AT END OF YEAR | 16,942 | 8,026 | 13,215 | |||||||||||||||||||||
SUPPLEMENTARY INFORMATION ON INVESTING ACTIVITIES NOT INVOLVING CASH FLOW: | ||||||||||||||||||||||||
Purchase of property, plant and equipment on credit | $ | 6,575 | $ | 942 | $ | 523 | - | $ | 196 | $ | 199 | |||||||||||||
Additions of operating lease right-of-use assets and operating lease liabilities | $ | 1,756 | $ | 648 | - | 1,345 | $ | 318 | $ | 399 | ||||||||||||||
Reclassification of inventory to property, plant and equipment | 68 | 284 | $ | 829 | ||||||||||||||||||||
Capital contribution to equity method investee | - | $ | 787 | - | ||||||||||||||||||||
Supplemental disclosure of cash flow information: | ||||||||||||||||||||||||
Interest paid | $ | (3 | ) | $ | (28 | ) | $ | (10 | ) | (1,438 | ) | (796 | ) | $ | (251 | ) | ||||||||
Income taxes received (paid), net | $ | (3 | ) | $ | 673 | $ | (1,087 | ) | - | $ | - | $ | (3 | ) |
F - 1112
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
U.S. dollars in thousands |
NOTE 1 - | GENERAL |
a. | TAT Technologies Ltd., (“TAT” or the “Company”) an Israeli corporation, incorporated in 1985, is a leading provider of solutions and services to the aerospace and defense industries, focused mainly on the following four segments: (i) original equipment manufacturing (“OEM”) of heat transfer solutions and aviation accessories mainly through our In June 2020, the Company's management decided to discontinue the JT8D engine blades reconditioning activity which belong to “overhaul and coating of jet engine components” segment as part of a strategic change, see Note 18. |
b. |
c. | During 2023, global conflicts continue to create volatility in global financial and energy markets and contribute to supply chain shortages adding to the inflationary pressures in the global economy. This capabilities lead to higher material and labor costs . The company actively collaborate with its suppliers to minimize impacts of supply shortages on manufacturing. |
d. | In |
F - 13
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
GENERAL (CONT) | ||
e. | TAT has the following wholly owned subsidiaries: Limco-Piedmont Inc. (“Limco-Piedmont”), and Turbochrome Ltd. (“Turbochrome”). Additionally, the Company holds 51% of TAT-Engineering LLC (“TAT-Engineering”) |
NOTE 2 - |
a. | Basis of Presentation |
b. | Use of estimates in the preparation of financial statement |
F - 1314
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 2 - | SIGNIFICANT ACCOUNTING POLICIES (CONT) |
c. | Functional currency |
d. | Principles of consolidation |
e. | Cash and Cash equivalents |
2023 | 2022 | |||||||
Cash and cash equivalents | $ | 15,979 | $ | 7,722 | ||||
Restricted deposit short term | 661 | - | ||||||
Restricted deposit long term | 302 | 304 | ||||||
Total cash and cash equivalents and restricted cash equivalents | $ | 16,942 | $ | 8,026 |
F - 1415
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 2 - | SIGNIFICANT ACCOUNTING POLICIES (CONT) |
f. | Accounts receivable, net |
Inventory |
F - 16
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 2 - | SIGNIFICANT ACCOUNTING POLICIES (CONT) |
h. | Property, plant and equipment |
Years | ||
Buildings | 25 – 39 | |
Leasehold improvements | 3 - | |
Machinery and equipment | 15 - | |
Motor vehicles | 7 | |
Office furniture and equipment | 3 - | |
Internal use software | 7 |
i. | Government grants: |
j. | Investment in affiliates and share in results of equity investment of affiliated companies |
F - 17
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 2 - | SIGNIFICANT ACCOUNTING POLICIES (CONT) |
k. | Leases |
l. | Identified intangible assets |
m. | Impairment of long-lived assets |
F - 18
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 2 - | SIGNIFICANT ACCOUNTING POLICIES (CONT) |
n. | Treasury Shares |
Revenue Recognition |
F - 19
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 2 - | SIGNIFICANT ACCOUNTING POLICIES (CONT) |
Revenue recognition | ||
F - 20
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 2 - | SIGNIFICANT ACCOUNTING POLICIES (CONT) |
Warranty costs |
Research and development |
Fair value measurement |
F - 21
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 2 - | SIGNIFICANT ACCOUNTING POLICIES (CONT) |
Fair value measurement | ||
Concentrations of credit risk |
Income taxes |
F - 22
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 2 - |
t. | Income taxes (cont.) | |
Earnings per share |
Share-based compensation |
F - 23
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 2 - | SIGNIFICANT ACCOUNTING POLICIES (CONT) |
w. | Comprehensive income (loss) |
Contingencies |
Derivatives and hedging |
F - 2524
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 2 - | |
z. | Restructuring Costs |
aa. | Recently Issued Accounting Principles: |
F - 26
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 3 - | FAIR VALUE MEASUREMENT |
December 31, 2020 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Derivative financial instruments | - | $ | 128 | - | $ | 128 |
December 31, 2023 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liability (Accrued expenses and other): | ||||||||||||||||
- | $ | (22 | ) | - | $ | (22 | ) |
December 31, 2019 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Derivative financial instruments | - | $ | 27 | - | $ | 27 |
December 31, 2022 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liability (Accrued expenses and other): | ||||||||||||||||
- | $ | (31 | ) | - | $ | (31 | ) |
a. | Derivative financial instruments: |
F - 26
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 3 - | FAIR VALUE MEASUREMENT (CONT) |
NOTE 4 - | INVENTORY |
December 31, | ||||||||
2020 | 2019 | |||||||
Raw materials and components | $ | 11,281 | $ | 13,064 | ||||
Work in progress | 15,432 | 11,387 | ||||||
Spare parts | 13,147 | 18,272 | ||||||
Finished goods | 1,363 | 604 | ||||||
Total inventory (**) | $ | 41,223 | $ | 43,327 |
December 31, | ||||||||
2023 | 2022 | |||||||
Raw materials and components | $ | 36,934 | $ | 30,410 | ||||
Work in progress | 13,493 | 14,525 | ||||||
Finished goods | 853 | 824 | ||||||
Total inventory (**) | $ | 51,280 | $ | 45,759 |
F - 2827
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 5 - | INVESTMENT IN AFFILIATES |
December 31, | ||||||||
2020 | 2019 | |||||||
Balance sheets: | ||||||||
Current assets | $ | 320 | $ | 466 | ||||
Non-current assets | 1,211 | 1,383 | ||||||
Current liabilities | 1,088 | 1,040 |
December 31, | ||||||||
2023 | 2022 | |||||||
Balance sheets: | ||||||||
Current assets | $ | 2,048 | $ | 913 | ||||
Non-current assets | 922 | 1,168 | ||||||
Current liabilities | 1,395 | 1,426 |
Year ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Statements of operation: | ||||||||||||
Revenues | $ | 413 | $ | 877 | $ | 1,534 | ||||||
Gross loss | (153 | ) | (228 | ) | (154 | ) | ||||||
Loss from continuing operations | (365 | ) | (291 | ) | (266 | ) | ||||||
Net losses attributable to the Company | (185 | ) | (132 | ) | (140 | ) |
Year ended December 31, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Statements of operation: | ||||||||||||
Revenues | $ | 2,702 | $ | 1,277 | $ | 501 | ||||||
Gross profit (loss) | 1,739 | 605 | (22 | ) | ||||||||
Net income (loss) | 987 | 365 | (148 | ) | ||||||||
Net income (losses) attributable to the Company | 503 | 184 | (76 | ) |
NOTE 6 - | PROPERTY, PLANT AND EQUIPMENT, NET |
December 31, | ||||||||
2020 | 2019 | |||||||
Cost: | ||||||||
Land and buildings | $ | 15,762 | $ | 14,863 | ||||
Machinery and equipment | 57,922 | 49,667 | ||||||
Motor vehicles | 313 | 410 | ||||||
Office furniture and equipment | 1,895 | 1,811 | ||||||
Software | 1,371 | 1,420 | ||||||
77,263 | 68,171 | |||||||
Less: Accumulated depreciation | 51,526 | 47,566 | ||||||
Depreciated cost | $ | 25,737 | $ | 20,605 |
December 31, | ||||||||
2023 | 2022 | |||||||
Cost: | ||||||||
Land and buildings | $ | 10,739 | $ | 10,739 | ||||
Leasehold improvements | 9,164 | 6,391 | ||||||
Machinery and equipment | 76,664 | 75,518 | ||||||
Motor vehicles | 273 | 302 | ||||||
Office furniture and equipment | 1,378 | 2,362 | ||||||
Internal use software | 3,768 | 2,610 | ||||||
101,986 | 97,922 | |||||||
Less: Accumulated depreciation | 59,432 | 54,499 | ||||||
Depreciated cost | $ | 42,554 | $ | 43,423 |
F - 28
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 6 - | PROPERTY, PLANT AND EQUIPMENT, NET (CONT) |
NOTE 7 - | LEASES |
Year ended December 31, 2020 | Year ended December 31, 2019 | |||||||
Operating lease expenses | 2,158 | 1,297 |
Year ended December 31, 2023 | Year ended December 31, 2022 | |||||||
Operating lease expenses | 1,173 | 1,316 |
F - 29
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 7 - | LEASES (CONT) |
Year ended December 31, 2020 | Year ended December 31, 2019 | |||||||
Operating cash flows from operating leases (non-cash finance expense) | 566 | 354 | ||||||
Right-of-use assets obtained in exchange for lease obligations (non-cash) | 1,756 | 648 |
Year ended December 31, 2023 | Year ended December 31, 2022 | |||||||
Operating cash flows from operating leases | 1,640 | 1,316 | ||||||
Right-of-use assets obtained in exchange for lease obligations (non-cash) | 1,345 | 318 |
December 31, 2020 | December 31, 2019 | |||||||
Operating Leases | ||||||||
Operating lease right-of-use assets | 6,767 | 6,664 | ||||||
Current operating lease liabilities | 1,614 | 1,330 | ||||||
Non-current operating lease liabilities | 5,758 | 5,688 | ||||||
Total operating lease liabilities | 7,372 | 7,018 | ||||||
Weighted Average Remaining Lease Term | ||||||||
Operating leases - Israel | 4 years | 5 years | ||||||
Operating leases – United States | 5 years | 6 years | ||||||
Weighted Average discount rate | ||||||||
Operating leases - Israel | 4.5 | % | 4.5 | % | ||||
Operating leases – United States | 4.84 | % | 4.84 | % |
December 31, 2023 | December 31, 2022 | |||||||
Operating Leases | ||||||||
Operating lease right-of-use assets | 2,746 | 2,477 | ||||||
Current operating lease liabilities | 1,033 | 904 | ||||||
Non-current operating lease liabilities | 1,697 | 1,535 | ||||||
Total operating lease liabilities | 2,730 | 2,439 | ||||||
Weighted Average Remaining Lease Term | ||||||||
Operating leases - Israel | 5 years | 2 years | ||||||
Operating leases – United States | 3 years | 4 years | ||||||
Weighted Average discount rate | ||||||||
Operating leases - Israel | 5 | % | 4.5 | % | ||||
Operating leases – United States | 4.84 | % | 4.84 | % |
F - 30
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 7 - | LEASES (CONT) |
Year | Amount | |||
2021 | $ | 1,852 | ||
2022 | 1,784 | |||
2023 | 1,737 | |||
2024 | 1,623 | |||
2025 and after | 653 | |||
Total lease payments | 7,649 | |||
Less imputed interest | (277 | ) | ||
Total | $ | 7,372 |
Year | Amount | |||
2024 | 1,056 | |||
2025 | 810 | |||
2026 | 385 | |||
2027 | 281 | |||
2028 and after | 472 | |||
Total lease payments | 3,004 | |||
Less imputed interest | (274 | ) | ||
Total | $ | 2,730 |
NOTE 8 -INTANGIBLE ASSETS
Intangible assets:
December 31, | ||||||||
2023 | 2022 | |||||||
Commercial license | ||||||||
Cost | $ | 2,509 | $ | 2,030 | ||||
Accumulated amortization | (686 | ) | (407 | ) | ||||
Amortized cost | $ | 1,823 | $ | 1,623 |
December 31, | ||||||||
2020 | 2019 | |||||||
Customer relationships | ||||||||
Cost | $ | 671 | $ | 671 | ||||
Impairment | (298 | ) | ||||||
Accumulated amortization | (373 | ) | (289 | ) | ||||
Amortized cost | $ | - | $ | 389 |
December 31, | ||||||||
2020 | 2019 | |||||||
Commercial license | ||||||||
Cost | $ | 1,513 | $ | - | ||||
Accumulated amortization | (38 | ) | - | |||||
Amortized cost | $ | 1,475 | $ | - |
In September 2020, Piedmont signed a 10 years10-year agreement for the commercial segment.MRO services for aviation components. Under this contract Honeywell intends to transfer alllicensed Piedmont as an authorized MRO station of its APU 331-20X MRO activity to TAT Piedmont.
Estimated amortization expenses for the five succeeding years is $150$279 thousands per year.
F - 3231
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 9 - | RESTRUCTURING COST |
Restructuring Items | December 31, 2023 | December 31, 2022 | ||||||
Balance sheet | ||||||||
Other Provisions | $ | - | $ | 190 | ||||
Investment in building and infrastructures | - | 4,571 | ||||||
Investment in machinery (**) | - | 7,799 | ||||||
Total | $ | - | $ | 12,560 | ||||
Profit and loss | ||||||||
Restructuring expenses, net | ||||||||
Forfeited guarantee | ||||||||
Employee’s termination cost | - | 975 | ||||||
Restructuring income from lease modification | - | - | ||||||
Restructuring expenses from asset’s impairment | - | - | ||||||
Other restructuring expenses | - | 740 | ||||||
$ | - | $ | 1,715 | |||||
Cost of sales | ||||||||
Acceleration of assets depreciation expenses | - | - | ||||||
Total | $ | - | $ | 1,715 |
F - LONG TERM LOANS32
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 10 - | LONG-TERM LOANS AND CREDIT LINES |
In March 2022, another TAT subsidiary received a credit line of $5 million from a commercial bank in the US. This credit line bears an annual fixed interest rate of 2.9% and has a maturity date of March 2024. In addition, in August 2022, the subsidiary received a long-term loan of $5 million from a commercial bank in the US. This loan bears an annual fixed interest rate of 4.2% and has a maturity date of December 2031. The loan is secured with a first-degree lien on the US subsidiary's equipment. The long term loan has financial covenants such as a) Debt Service Coverage Ratio greater than 1.15, b) Debt to Equity Ratio equal or less than 1.
By June 2023 TAT secured another short-term line of credit from an Israeli bank for $4.5 million. The company’s building and land in Kiryat Gat serve as collateral for this loan. As of December 31, 2023, the Company has not utilized this credit line.
F - 33
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 10 - | LONG-TERM LOANS AND CREDIT LINES (CONT) |
Israel | Line of Credit | Gov guaranteed loans | Machinary finance loans | Commercial loans | ||||||||
Total balance amount | $4,710 | $2,612 | ||||||||||
Rate(*) | 7.25% | 6.65% | ||||||||||
Duration | 5-10 | 7 | ||||||||||
USA | ||||||||||||
Total balance amount | $12,138 | $702 | $7,066 | |||||||||
Rate | 2.9%-7.75% | 6.5% | 3.75%-4.2% | |||||||||
Duration (Years) | Revolving | 5 | 7-10 |
Year | Amount | |||
2021 | $ | 1,477 | ||
2022 | 1,428 | |||
2023 | 864 | |||
2024 | 864 | |||
2025 and after | 333 | |||
$ | 4,966 |
December 31, | ||||||||
2020 | 2019 | |||||||
Employees and payroll accruals | $ | 2,714 | $ | 3,332 | ||||
Accrued expenses | 716 | 937 | ||||||
Authorities | 415 | 810 | ||||||
Advances from customers | 1,263 | 513 | ||||||
Warranty provision | 250 | 235 | ||||||
Accrued royalties and rebate sales commissions | 1,200 | 1,517 | ||||||
Other | 133 | 49 | ||||||
$ | 6,691 | $ | 7,393 |
Year | Amount | |||
2024 | 2,200 | |||
2025 | 2,146 | |||
2026 | 2,164 | |||
2027 | 2,277 | |||
2028 and after | 6,299 | |||
$ | 15,086 |
Fair value | Carrying Amount | |||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Citi Bank Loan | $ | 4,486 | $ | 4,876 | $ | 4,412 | $ | 4,856 | ||||||||
Bank Leumi Loan | $ | 2,473 | $ | 2,834 | $ | 2,447 | $ | 2,834 |
F - 3334
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 11 - | GOVERNMENT GRANTS |
NOTE 12 - | ACCRUED EXPENSES AND OTHER |
December 31, | ||||||||
2023 | 2022 | |||||||
Employees and payroll accruals | $ | 5,179 | $ | 3,951 | ||||
Accrued expenses | 1,072 | 971 | ||||||
Authorities | 116 | 200 | ||||||
*Contract liabilities | 5,239 | 2,778 | ||||||
Warranty provision | 325 | 243 | ||||||
Accrued royalties | 1,736 | 1,448 | ||||||
Provision for restructuring plan | 63 | 190 | ||||||
Other | 222 | 95 | ||||||
13,952 | $ | 9,876 |
December 31, | ||||||||
2023 | 2022 | |||||||
Opening balance | 2,778 | 1,147 | ||||||
Revenue recognized | (2,080 | ) | (148 | ) | ||||
Additions | 4,541 | 1,779 | ||||||
Closing balance | 5,239 | 2,778 |
F - 35
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 13 - | RELATED PARTIES’ TRANSACTIONS AND BALANCES |
Year ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Income - | ||||||||||||
Sales to related-party company (*) | $ | 173 | $ | 596 | $ | 1,251 | ||||||
Cost and expenses - | ||||||||||||
Supplies from related party (*) | $ | 362 | $ | 552 | $ | 59 |
December 31, | ||||||||
2020 | 2019 | |||||||
Trade receivables and other receivables (*) | $ | 740 | $ | 706 | ||||
Trade payables and other payables (*) | $ | 122 | $ | 154 |
Year ended December 31, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Revenue - | ||||||||||||
Sales to related-party Company (*) | - | $ | 17 | $ | 88 | |||||||
Cost and expenses - | ||||||||||||
Supplies from related party (*) | - | - | $ | 654 |
December 31, | ||||||||
2023 | 2022 | |||||||
Trade receivables and other receivables (*) | - | - | ||||||
Trade payables and other payables (*) | - | - |
NOTE | LONG-TERM EMPLOYEE-RELATED OBLIGATIONS |
F - 36
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE | LONG-TERM EMPLOYEE-RELATED OBLIGATIONS (CONT) |
Year | Amount | |||
2021 | $ | 54 | ||
2022 | 166 | |||
2023 | 240 | |||
2024 | 43 | |||
2025 | - | |||
Thereafter (through 2030) | 906 | |||
Total | $ | 1,409 |
Year | Amount | |||
2024 | 80 | |||
2025 | - | |||
2026 | 99 | |||
2027 | 134 | |||
2028 | 59 | |||
Thereafter (through 2032) | 349 | |||
Total | $ | 721 |
F - 37
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 15 - | COMMITMENTS AND CONTINGENCIES |
a. | Commissions arrangements: |
b. | Royalty commitments: |
(1) | TAT is committed to pay royalties to third parties, ranging from |
(2) | Piedmont is committed to pay royalties to a third party, ranging 5% to 13% of sales of products purchased from the third party. That third party is the exclusive manufacturer of the products for which Piedmont provides MRO services. |
c. | Guarantees: |
(1) | In order to secure TAT's liability to the Israeli customs, the Company provided bank guarantees in amounts of |
Litigation: |
(1) |
(2) | On July 12, 2022 TAT filed a suit against TAT Industries Ltd. In the District Court of |
F - 36
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 16 - | SHAREHOLDERS' EQUITY |
a. | TAT's Ordinary shares confer upon their |
b. | Stock option plans: |
F - 39
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 16 - | SHAREHOLDERS' EQUITY (CONT) |
b. | Stock option plans (cont.): |
(1) | On |
(2) | On |
(3) | On March 30, 2021, pursuant to the 2012 Plan, TAT’s Board of Directors approved the grant of 25,000 Options, at an exercise price of $5.91 per share, to senior executive. |
(4) | On March 30, 2021, pursuant to the 2012 Plan, TAT’s Board of Directors approved the grant of 25,000 Options, at an exercise price of $5.91 per share, to senior executive. |
(5) | On July 25, 2021, pursuant to the 2012 Plan, TAT’s Board of Directors approved the grant of 20,000 Options, at an exercise price of $6.41 per share, to senior executive. |
(6) | On August 30, 2021, pursuant to the 2012 Plan, TAT’s Board of Directors approved the grant of 100,000 Options, at an exercise price of $7 per share, to senior executive. |
(7) | On March 22, 2022, pursuant to the 2012 Plan, TAT’s Board of Directors approved the grant of 50,000 Options, at an exercise price of |
On May |
On |
On |
On |
On |
On | ||
(14) | On May 30, 2023, pursuant to the 2022 Plan, TAT’s Board of Directors approved the grant of 30,000 Options, at an exercise price of $6.45 per share, to senior executive. | |
(15) | On August 28, 2023, pursuant to the 2022 Plan, TAT’s Board of Directors approved the grant of 40,000 Options, at an exercise price of $8.00 per share, to senior executive. |
F - 40
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 16 - | SHAREHOLDERS' EQUITY (CONT) |
b. | Stock option plans (cont.): |
2020 | 2019 | 2018 | ||||
Expected stock price volatility | 44.7% – 43.5% | 34.2% – 36.8% | 32.6% – 40.8% | |||
Expected option life (in years) | 3.5-5 | 3.5-5 | 3.5-5.5 | |||
Risk free interest rate | 0.12% – 0.25% | 1.44% – 1.63% | 1.71% – 2.87% | |||
Dividend yield | 0% | 0% | 0% - 5% |
2023 | 2022 | 2021 | |||||||
Expected stock price volatility | 48% – 54.8% | 48.4% – 54.48% | 45.6% – 52% | ||||||
Expected option life (in years) | 4.6 | 1-5 | 3.5-5 | ||||||
Risk free interest rate | 3.71% – 4.54% | 0.63% – 4.04% | 0.1% – 0.64% | ||||||
Dividend yield | 0% | 0% | 0% |
Year ended December 31, | Year ended December 31, | Year ended December 31, | ||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||
Number of options | Weighted average exercise price | Number of options | Weighted average exercise price | Number of options | Weighted average exercise price | |||||||||||||||||||
Outstanding at the beginning of the year | 571,460 | $ | 7.53 | 528,268 | $ | 9.03 | 365,000 | $ | 8.53 | |||||||||||||||
Granted | 50,000 | 4.58 | 170,000 | 5.44 | 273,893 | 9.70 | ||||||||||||||||||
Forfeited | - | - | (126,808 | ) | 11.19 | (83,957 | ) | 9.85 | ||||||||||||||||
Exercised | - | - | - | - | (26,668 | ) | 7.15 | |||||||||||||||||
Outstanding at the end of the year | 621,460 | 7.26 | 571,460 | 7.53 | 528,268 | $ | 9.03 | |||||||||||||||||
Exercisable at the end of the year | 381,629 | $ | 7.91 | 264,389 | $ | 7.74 | 163,438 | $ | 8.34 |
Year ended December 31, | Year ended December 31, | Year ended December 31, | ||||||||||||||||||||||
2023 | 2022 | 2021 | ||||||||||||||||||||||
Number of options | Weighted average exercise price | Number of options | Weighted average exercise price | Number of options | Weighted average exercise price | |||||||||||||||||||
Outstanding at the beginning of the year | 675,000 | $ | 7.17 | 720,000 | $ | 6.8 | 621,460 | $ | 7.26 | |||||||||||||||
Granted | 190,000 | 6.63 | 170,000 | 6.56 | 220,000 | 6.45 | ||||||||||||||||||
Forfeited | (196,614 | ) | 6.52 | (178,150 | ) | 5.63 | (121,460 | ) | 8.9 | |||||||||||||||
Exercised | *(43,386 | ) | 5.68 | (36,850 | ) | 5.25 | - | - | ||||||||||||||||
Outstanding at the end of the year | 625,000 | 7.31 | 675,000 | 7.17 | 720,000 | 6.8 | ||||||||||||||||||
Exercisable at the end of the year | 373,438 | 7.91 | 412,813 | $ | 7.54 | 379,375 | $ | 7.44 |
F - 3941
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 17 - | EARNINGS PER SHARE (“EPS”) |
Year ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Numerator for EPS: | ||||||||||||
Net income (loss) | $ | (5,329 | ) | $ | 806 | $ | (4,408 | ) | ||||
Denominator for EPS: | ||||||||||||
Weighted average shares outstanding – basic | 8,874,696 | 8,874,696 | 8,864,885 | |||||||||
Dilutive shares | - | - | - | |||||||||
Weighted average shares outstanding – diluted | 8,874,696 | 8,874,696 | 8,864,885 | |||||||||
EPS: | ||||||||||||
Basic and diluted | $ | (0.6 | ) | $ | 0.1 | $ | (0.5 | ) |
Year ended December 31, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Numerator for EPS: | ||||||||||||
Net Income (loss) from continuing operations | $ | 4,672 | $ | (1,562 | ) | $ | (3,562 | ) | ||||
Denominator for EPS: | ||||||||||||
Weighted average shares outstanding – basic | 8,961,689 | 8,911,546 | 8,874,696 | |||||||||
Dilutive shares | 122,333 | - | - | |||||||||
Weighted average shares outstanding – diluted | 9,084,022 | 8,911,546 | 8,874,696 | |||||||||
EPS: | ||||||||||||
Basic and diluted | $ | 0.52 | $ | (0.175 | ) | $ | (0.4 | ) | ||||
Diluted | $ | 0.51 | $ | (0.175 | ) | $ | (0.4 | ) |
F - DISCONTINUED OPERATION42
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 18 - | DISCONTINUED OPERATION |
2020 | 2019 | |||||||||
Assets: | ||||||||||
Account receivables | $ | - | $ | 821 | ||||||
Inventory | - | 580 | ||||||||
Fixed assets, net | - | 438 | ||||||||
Costumers’ relationship | - | 388 | ||||||||
Total Assets | $ | - | $ | 2,227 | ||||||
Liability: | ||||||||||
Account payables | $ | 179 | $ | 158 | ||||||
Total Liabilities | $ | 179 | $ | 158 |
2021 | ||||
Revenue: | ||||
Services | $ | 440 | ||
Cost of revenue: | ||||
Services | 429 | |||
Gross profit (loss) | 11 | |||
Operating expenses: | ||||
Research and development, net | 16 | |||
Selling and marketing | 29 | |||
General and administrative | 68 | |||
113 | ||||
Operating income (loss) | (102 | ) | ||
Financial expenses (income) | - | |||
Income (loss) on disposal of discontinued operation (1) | 529 | |||
Net Income (loss) | $ | 427 |
Year ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Revenue: | ||||||||||||
Services | $ | 955 | $ | 4,553 | $ | 5,457 | ||||||
Cost of revenue: | ||||||||||||
Services | 1,062 | 4,291 | 5,011 | |||||||||
Gross profit (loss) | (107 | ) | 262 | 446 | ||||||||
Operating expenses: | ||||||||||||
Research and development, net | 42 | (39 | ) | 95 | ||||||||
Selling and marketing | 90 | 330 | 159 | |||||||||
General and administrative | 191 | 598 | 658 | |||||||||
323 | 889 | 912 | ||||||||||
Operating income (loss) | (430 | ) | (627 | ) | (466 | ) | ||||||
Financial expenses (income) | - | 28 | 14 | |||||||||
Loss on disposal of discontinued operation (1) | 1,415 | - | - | |||||||||
Net Income (loss) | $ | (1,845 | ) | $ | (655 | ) | $ | (480 | ) |
(1) | During 2020, the Company |
F - 41
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE | TAXES ON INCOME |
a. | Tax benefits under the Law for the Encouragement of Capital Investments, 1959 ("the Law"): |
F - 44
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE | TAXES ON INCOME (CONT) |
a. | Tax benefits under the Law for the Encouragement of Capital Investments, 1959 ("the Law") (cont.): |
b. | Corporate tax rate in Israel |
c. | U.S. subsidiaries |
F - 45
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE | TAXES ON INCOME (CONT) |
d. | Tax assessments |
Turbochrome income tax assessments are considered final through |
Limco-Piedmont income tax assessments are considered final through |
e. | Income tax reconciliation: |
Year ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Income (loss) before taxes on income (tax benefit) from continued operationas reported in the statements of income | $ | (4,816 | ) | $ | 2,182 | $ | (5,252 | ) | ||||
Statutory tax rate in Israel | 23 | % | 23 | % | 23 | % | ||||||
Theoretical taxes on income (tax benefit) | $ | (1,108 | ) | $ | 501 | $ | (1,207 | ) | ||||
Increase (decrease) in taxes on income resulting from: | ||||||||||||
Tax adjustment for foreign subsidiaries subject to a different tax rate | 50 | (26 | ) | (9 | ) | |||||||
Reduced tax rate on income derived from "Preferred Enterprises" plans | 580 | 204 | 346 | |||||||||
Earnings from foreign subsidiaries (1) | (2,338 | ) | 91 | (338 | ) | |||||||
Valuation allowance for exchange rates differences on deferred taxes not recorded on capital losses | - | (125 | ) | (42 | ) | |||||||
Deferred tax assets from discontinued operation loss | (138 | ) | (49 | ) | (36 | ) | ||||||
Reduced deferred tax asset from expecting utilization of carryforward losses | 1,984 | - | - | |||||||||
Tax in respect of prior years | (345 | ) | - | (481 | ) | |||||||
Temporary differences for which no deferred taxes were recorded | (377 | ) | (55 | ) | 8 | |||||||
Permanent differences | 24 | 55 | 245 | |||||||||
Other adjustments | 151 | (7 | ) | 50 | ||||||||
Taxes on income (tax benefit) as reported in the statements of income | $ | (1,517 | ) | $ | 589 | $ | (1,464 | ) |
Year ended December 31, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Income (loss) before taxes on income (tax benefit) from continued operations reported in the statements of income | $ | 4,745 | $ | (1,648 | ) | $ | (4,575 | ) | ||||
Statutory tax rate in Israel | 23 | % | 23 | % | 23 | % | ||||||
Theoretical taxes on income (tax benefit) | 1,091 | $ | (379 | ) | $ | (1,052 | ) | |||||
Increase (decrease) in taxes on income resulting from: | ||||||||||||
Tax adjustment for foreign subsidiaries subject to a different tax rate | (36 | ) | (13 | ) | 75 | |||||||
Reduced tax rate on income derived from "Preferred Enterprises" plans | (484 | ) | (48 | ) | 149 | |||||||
Deferred tax assets from discontinued operation profit (loss) | - | 98 | ||||||||||
Reduced deferred tax asset from expecting utilization of carryforward losses | 183 | - | - | |||||||||
Tax in respect of prior years | 59 | 24 | ||||||||||
Temporary differences for which no deferred taxes were recorded | - | 238 | - | |||||||||
Permanent differences | - | 77 | 71 | |||||||||
Other adjustments | (178 | ) | 164 | (27 | ) | |||||||
Taxes on income (tax benefit) as reported in the statements of income | $ | 576 | $ | 98 | $ | (662 | ) |
F - 46
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE | TAXES ON INCOME (CONT) |
f. | Income (loss) before taxes on income (tax benefit) is comprised as follows: |
Year ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Domestic (Israel) | $ | (4,499 | ) | $ | (1,931 | ) | $ | (4,781 | ) | |||
Foreign (United States) | (317 | ) | 4,113 | (471 | ) | |||||||
$ | (4,816 | ) | $ | 2,182 | $ | (5,252 | ) |
Year ended December 31, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Domestic (Israel) | $ | 4,639 | $ | (1,201 | ) | $ | (5,139 | ) | ||||
Foreign (United States) | 106 | (447 | ) | 564 | ||||||||
$ | 4,745 | $ | (1,648 | ) | $ | (4,575 | ) |
g. | Taxes on income (tax benefit) included in the statements of income: |
Year ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Current: | ||||||||||||
Domestic (Israel) | $ | - | $ | - | $ | - | ||||||
Foreign (United States) | - | 181 | (881 | ) | ||||||||
- | 181 | (881 | ) | |||||||||
Deferred: | ||||||||||||
Domestic (Israel) | (683 | ) | (397 | ) | (813 | ) | ||||||
Foreign (United States) | (489 | ) | 805 | 711 | ||||||||
(1,172 | ) | 408 | (102 | ) | ||||||||
Previous years: | ||||||||||||
Domestic (Israel) | (134 | ) | ||||||||||
Foreign (United States) | (211 | ) | - | (481 | ) | |||||||
(345 | ) | - | (481 | ) | ||||||||
$ | (1,517 | ) | $ | 589 | $ | (1,464 | ) |
Year ended December 31, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Current: | ||||||||||||
Domestic (Israel) | $ | - | $ | - | $ | - | ||||||
Foreign (United States) | 49 | - | - | |||||||||
49 | - | - | ||||||||||
Deferred: | ||||||||||||
Domestic (Israel) | 358 | 268 | (579 | ) | ||||||||
Foreign (United States) | 169 | (111 | ) | (107 | ) | |||||||
576 | 157 | (686 | ) | |||||||||
Previous years: | ||||||||||||
Domestic (Israel) | - | - | - | |||||||||
Foreign (United States) | - | (59 | ) | 24 | ||||||||
$ | 576 | $ | 98 | $ | (662 | ) |
F - 47
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 19 - | TAXES ON INCOME (CONT) |
h. | Deferred income taxes: |
December 31, | ||||||||
2020 | 2019 | |||||||
Deferred tax assets: | ||||||||
Provision for current expected credit losses | $ | 41 | $ | 67 | ||||
Provisions for employee benefits | 272 | 470 | ||||||
Inventory | 987 | 964 | ||||||
Intangible assets | - | 42 | ||||||
Capital tax losses carryforward | 3,500 | 3,500 | ||||||
Net operating losses carryforward | 3,017 | 1,669 | ||||||
Other | 224 | 96 | ||||||
Deferred tax assets, before valuation allowance | $ | 8,041 | $ | 6,808 | ||||
Valuation allowance | (5,484 | ) | (3,500 | ) | ||||
Deferred tax assets, net | $ | 2,557 | $ | 3,308 | ||||
Deferred tax liabilities: | ||||||||
Property, plant and equipment | (1,647 | ) | (2,159 | ) | ||||
Intangible assets | (318 | ) | - | |||||
Earnings from foreign subsidiaries (1) | - | (1,953 | ) | |||||
Other temporary differences deferred tax liabilities | (26 | ) | (68 | ) | ||||
Deferred tax liabilities | $ | (1,991 | ) | $ | (4,180 | ) | ||
Net | $ | 566 | $ | (872 | ) |
December 31, | ||||||||
2023 | 2022 | |||||||
Deferred tax assets: | ||||||||
Provisions for employee benefits | $ | 657 | $ | 378 | ||||
Inventory | 1,337 | 1,288 | ||||||
Capital tax losses carryforward | 956 | 2,475 | ||||||
Net operating losses carryforward | 2,368 | 4,040 | ||||||
R&D expenses | 121 | 144 | ||||||
Other | 417 | 331 | ||||||
Deferred tax assets, before valuation allowance | $ | 5,856 | $ | 8,656 | ||||
Valuation allowance | (3,214 | ) | (5,202 | ) | ||||
Deferred tax assets, net | 2,642 | $ | 3,454 | |||||
Deferred tax liabilities: | ||||||||
Property, plant and equipment | (1,348 | ) | (1,884 | ) | ||||
Intangible assets | (300 | ) | (341 | ) | ||||
Other temporary differences deferred tax liabilities | - | |||||||
Deferred tax liabilities | $ | (1,648 | ) | $ | (2,225 | ) | ||
Net | 994 | $ | 1,229 |
F - 48
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE | TAXES ON INCOME (CONT) |
h. | Deferred income taxes (cont.): |
Balance, December 31, 2017 | 3,417 | |||
Additions during the year | (42 | ) | ||
Balance, December 31,2018 | $ | 3,375 | ||
Deductions during the year | 125 | |||
Balance, December 31,2019 | $ | 3,500 | ||
Additions during the year | 1,984 | |||
Balance, December 31,2020 | $ | 5,484 |
Balance, December 31, 2020 | $ | 5,484 | ||
Deductions during the year | - | |||
Balance, December 31,2021 | $ | 5,484 | ||
Deductions during the year | (282 | ) | ||
Balance, December 31,2022 | $ | 5,202 | ||
Deductions during the year | (1,988 | ) | ||
Balance, December 31,2023 | 3,214 |
Valuation allowance areallowances
Are mainly related to (i) U.S. subsidiary for which valuation allowance was provided in respect of deferred tax assets resulting from carryforward of State tax losses in the amount of $ 1,519. That amount is expected to expire gradually starting from 2024 and (ii) Capital losses attributed to the Company in the amount of $ 1,502. (iii) corporate956. (ii) Corporate income tax losses carryforward incurred in TAT Gedera in amount of $1,984.$2,258.
F - 47
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 20 - | SEGMENT INFORMATION |
a. | Segment Activities Disclosure: |
- | 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 of 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. |
- | 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. |
- | MRO services for aviation components include the MRO of APUs, landing gears and other aircraft |
- | 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. The discontinued operation in 2021 regarding to the JT8D activity is part of the coating jet engines component segment. |
F - 50
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE | SEGMENT INFORMATION (CONT) |
b. | Segments statement operations disclosure: |
The following financial information is the information that CODM uses for analyzing the segment results. The figures are presented in consolidated method as presented to CODM.
The following financial information is a summary of the operating income of each operational segment:
Year ended December 31, 2020 | ||||||||||||||||||||||||
OEM of Heat Transfer Solutions and Aviation Accessories | MRO Services for heat transfer components and OEM of heat transfer solutions | MRO services for Aviation Components | Overhaul and coating of jet engine components | Elimination of inter-company sales | Consolidated | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Sale of products and services | $ | 20,179 | $ | 20,445 | $ | 31,189 | $ | 3,546 | $ | - | $ | 75,359 | ||||||||||||
Intersegment revenues | 2,946 | 195 | - | - | (3,141 | ) | - | |||||||||||||||||
Total revenues | 23,125 | 20,640 | 31,189 | 3,546 | (3,141 | ) | 75,359 | |||||||||||||||||
Cost of revenues | 21,703 | 17,885 | 26,961 | 3,312 | (2,937 | ) | 66,924 | |||||||||||||||||
Gross profit | 1,422 | 2,755 | 4,228 | 234 | (204 | ) | 8,435 | |||||||||||||||||
Research and development | (3 | ) | (2 | ) | 7 | 183 | - | 185 | ||||||||||||||||
Selling and marketing | 1,429 | 1,152 | 1,527 | 261 | - | 4,369 | ||||||||||||||||||
General and administrative | 2,183 | 2,054 | 2,732 | 643 | - | 7,612 | ||||||||||||||||||
Other expenses (income) | - | 21 | - | 294 | - | 315 | ||||||||||||||||||
Operating income (loss) | $ | (2,187 | ) | $ | (470 | ) | $ | (38 | ) | (1,147 | ) | $ | (204 | ) | $ | (4,046 | ) | |||||||
Financial expenses, net | 770 | |||||||||||||||||||||||
Loss before tax benefits | (4,816 | ) |
Year ended December 31, 2023 | ||||||||||||||||||||||||
OEM of Heat Transfer Solutions and Aviation Accessories | MRO Services for heat transfer components and OEM of heat transfer solutions | MRO services for Aviation Components and Lease | Overhaul and coating of jet engine components | Elimination of inter-Company sales | Consolidated | |||||||||||||||||||
Revenues external | $ | 27,555 | $ | 28,625 | $ | 50,760 | $ | 6,854 | $ | 113,794 | ||||||||||||||
Revenues internal | 4,370 | (4,370 | ) | - | ||||||||||||||||||||
Cost of revenues | 20,193 | 30,176 | 41,788 | 4,110 | (4,941 | ) | 91,326 | |||||||||||||||||
Gross profit | 7,362 | 2,819 | 8,972 | 2,744 | 571 | 22,468 | ||||||||||||||||||
Research and development | 159 | 177 | 268 | 111 | 715 | |||||||||||||||||||
Selling and marketing | 1,618 | 1,539 | 2,040 | 326 | 5,523 | |||||||||||||||||||
General and administrative | 2,772 | 3,436 | 3,555 | 825 | 10,588 | |||||||||||||||||||
Other expenses (income) | 9 | (3 | ) | (439 | ) | (423 | ) | 423 | (433 | ) | ||||||||||||||
Operating income (loss) | $ | 2,804 | $ | (2,330 | ) | $ | 3,548 | $ | 1,905 | $ | 148 | $ | 6,075 | |||||||||||
Financial expenses, net | (1,330 | ) | ||||||||||||||||||||||
Loss before tax benefits | 4,745 |
F - 51
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 20 - | SEGMENT INFORMATION (CONT) |
b.Segments statement operations disclosure (cont.)
Year ended December 31, 2022 | ||||||||||||||||||||||||
OEM of Heat Transfer Solutions and Aviation Accessories | MRO Services for heat transfer components and OEM of heat transfer solutions | MRO services for Aviation Components and Lease | Overhaul and coating of jet engine components | Elimination of inter-Company sales | Consolidated | |||||||||||||||||||
Revenues external | $ | 21,844 | $ | 21,063 | $ | 35,879 | $ | 5,770 | - | $ | 84,556 | |||||||||||||
Revenues internal | - | 3,733 | - | - | (3,733 | ) | - | |||||||||||||||||
Cost of revenues | 18,778 | 20,750 | 28,890 | 3,495 | (3,285 | ) | 68,628 | |||||||||||||||||
Gross profit | 3,066 | 4,046 | 6,989 | 2,275 | (448 | ) | 15,928 | |||||||||||||||||
Research and development | 193 | 54 | 286 | 19 | (74 | ) | 479 | |||||||||||||||||
Selling and marketing | 1,936 | 926 | 2,383 | 330 | 54 | 5,629 | ||||||||||||||||||
General and administrative | 3,226 | 2,462 | 3,686 | 594 | 2 | 9,970 | ||||||||||||||||||
Other expenses (income) | (1,566 | ) | (52 | ) | (18 | ) | - | 1,547 | (90 | ) | ||||||||||||||
Restructuring expenses, net | 975 | 618 | - | 122 | - | 1,715 | ||||||||||||||||||
Operating income (loss) | $ | (1,698 | ) | $ | 38 | $ | 652 | $ | 1,210 | $ | (1,977 | ) | $ | (1,775 | ) | |||||||||
Financial expenses, net | 127 | |||||||||||||||||||||||
Loss before tax benefits | (1,648 | ) |
Year ended December 31, 2019 | ||||||||||||||||||||||||
OEM of Heat Transfer Solutions and Aviation Accessories | MRO Services for heat transfer components and OEM of heat transfer solutions | MRO services for Aviation Components | Overhaul and coating of jet engine components | Elimination of inter-company sales | Consolidated | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Sale of products and services | $ | 20,552 | $ | 34,183 | $ | 38,687 | $ | 4,057 | $ | - | $ | 97,479 | ||||||||||||
Intersegment revenues | 6,037 | 250 | - | - | (6,287 | ) | - | |||||||||||||||||
Total revenues | 26,589 | 34,433 | 38,687 | 4,057 | (6,287 | ) | 97,479 | |||||||||||||||||
Cost of revenues | 23,998 | 27,852 | 33,337 | 3,460 | (6,468 | ) | 82,179 | |||||||||||||||||
Gross profit (loss) | 2,591 | 6,581 | 5,350 | 597 | 181 | 15,300 | ||||||||||||||||||
Research and development | 58 | 83 | 7 | (35 | ) | - | 113 | |||||||||||||||||
Selling and marketing | 1,530 | 1,638 | 1,334 | 427 | - | 4,929 | ||||||||||||||||||
General and administrative | 1,978 | 2,734 | 2,408 | 534 | - | 7,654 | ||||||||||||||||||
Operating income (loss) | $ | (975 | ) | $ | 2,126 | $ | 1,601 | $ | (329 | ) | $ | 181 | $ | 2,604 | ||||||||||
Financial expenses, net | 422 | |||||||||||||||||||||||
Loss before taxes on income | 2,182 |
F - 52
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE | SEGMENT INFORMATION (CONT) |
Year ended December 31, 2018 | ||||||||||||||||||||||||
OEM of Heat Transfer Solutions and Aviation Accessories | MRO Services for heat transfer components and OEM of heat transfer solutions | MRO services for Aviation Components | Overhaul and coating of jet engine components | Elimination of inter-company sales | Consolidated | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Sale of products and services | $ | 20,065 | $ | 30,929 | $ | 32,487 | $ | 4,240 | $ | - | $ | 87,721 | ||||||||||||
Intersegment revenues | 4,642 | 415 | - | - | (5,057 | ) | - | |||||||||||||||||
Total revenues | 24,707 | 31,344 | 32,487 | 4,240 | (5,057 | ) | 87,721 | |||||||||||||||||
Cost of revenues | 25,612 | 27,659 | 28,561 | 3,287 | (5,343 | ) | 79,776 | |||||||||||||||||
Gross profit | (905 | ) | 3,685 | 3,926 | 953 | 286 | 7,945 | |||||||||||||||||
Research and development | 287 | 98 | - | 73 | - | 458 | ||||||||||||||||||
Selling and marketing | 1,512 | 1,660 | 1,324 | 258 | - | 4,754 | ||||||||||||||||||
General and administrative | 2,384 | 2,375 | 2,631 | 511 | - | 7,901 | ||||||||||||||||||
Other expenses | (2 | ) | - | (2 | ) | - | - | (4 | ) | |||||||||||||||
Operating income (loss) | $ | (5,086 | ) | $ | (448 | ) | $ | (27 | ) | $ | 111 | $ | 286 | (5,164 | ) | |||||||||
Financial expenses, net | 88 | |||||||||||||||||||||||
Income before taxes on income | (5,252 | ) |
b.Segments statement operations disclosure (cont.)
Year ended December 31, 2021 | ||||||||||||||||||||||||
OEM of Heat Transfer Solutions and Aviation Accessories | MRO Services for heat transfer components and OEM of heat transfer solutions | MRO services for Aviation Components and lease | Overhaul and coating of jet engine components | Elimination of inter-Company sales | Consolidated | |||||||||||||||||||
Revenues external | $ | 25,977 | $ | 14,930 | $ | 33,232 | $ | 3,834 | - | $ | 77,973 | |||||||||||||
Revenues internal | - | 3,916 | - | - | (3,916 | ) | - | |||||||||||||||||
Cost of revenues | 24,044 | 16,922 | 26,444 | 2,978 | (3,685 | ) | 66,703 | |||||||||||||||||
Gross profit (loss) | 1,933 | 1,924 | 6,788 | 856 | (231 | ) | 11,270 | |||||||||||||||||
Research and development | 122 | 80 | 202 | 160 | (47 | ) | 517 | |||||||||||||||||
Selling and marketing | 2,040 | 1,015 | 1,961 | 220 | (89 | ) | 5,147 | |||||||||||||||||
General and administrative | 3,128 | 1,855 | 3,004 | 558 | (191 | ) | 8,354 | |||||||||||||||||
Other expenses (income) | (913 | ) | - | (432 | ) | (19 | ) | 896 | (468 | ) | ||||||||||||||
Restructuring expenses, net | 1,338 | 386 | - | 31 | - | 1,755 | ||||||||||||||||||
Operating income (loss) | $ | (3,782 | ) | $ | (1,412 | ) | $ | 2,053 | $ | (94 | ) | $ | (800 | ) | $ | (4,035 | ) | |||||||
Financial expenses, net | 540 | |||||||||||||||||||||||
Profit (loss) before taxes on income | (4,575 | ) |
F - 53
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE | SEGMENT INFORMATION (CONT) |
c.The following financial information identifies the assets, depreciation and amortization, and capital expenditures to segments:
Year ended December 31, 2023 | ||||||||||||||||||||||||
OEM of Heat Transfer Solutions and Aviation Accessories | MRO Services for heat transfer components and OEM of heat transfer solutions | MRO services for Aviation Components and Lease | Overhaul and coating of jet engine components | Amounts not allocated to segments | Consolidated | |||||||||||||||||||
Total assets | 39,131 | 42,491 | 58,023 | 9,400 | (3,468 | ) | 145,577 | |||||||||||||||||
Depreciation and amortization | 557 | 878 | 3,078 | 268 | (71 | ) | 4,710 | |||||||||||||||||
Expenditure for segment assets | 3,519 | 1,352 | 252 | 458 | 4,390 |
Year ended December 31, 2020 | ||||||||||||||||||||||||||||
OEM of Heat Transfer Solutions and Aviation Accessories | MRO Services for heat transfer components and OEM of heat transfer solutions | MRO services for Aviation Components | Overhaul and coating of jet engine components | Discontinued operation | Amounts not allocated to segments | Consolidated | ||||||||||||||||||||||
Total assets | 32,536 | 21,525 | 41,433 | 6,073 | - | 14,554 | 116,121 | |||||||||||||||||||||
Depreciation and amortization | 1,400 | 1,020 | 799 | 846 | - | - | 4,065 | |||||||||||||||||||||
Expenditure for segment assets | 765 | 556 | 9,410 | 309 | - | - | 11,040 |
Year ended December 31, 2019 | ||||||||||||||||||||||||||||
OEM of Heat Transfer Solutions and Aviation Accessories | MRO Services for heat transfer components and OEM of heat transfer solutions | MRO services for Aviation Components | Overhaul and coating of jet engine components | Discontinued operation | Amounts not allocated to segments | Consolidated | ||||||||||||||||||||||
Total assets | 29,149 | 31,031 | 34,264 | 7,967 | 2,227 | 10,037 | 114,675 | |||||||||||||||||||||
Depreciation and amortization | 1,601 | 1,031 | 786 | 954 | - | - | 4,372 | |||||||||||||||||||||
Expenditure for segment assets | 1,600 | 1,180 | 803 | 239 | - | - | 3,822 |
Year ended December 31, 2022 | ||||||||||||||||||||||||
OEM of Heat Transfer Solutions and Aviation Accessories | MRO Services for heat transfer components and OEM of heat transfer solutions | MRO services for Aviation Components and Lease | Overhaul and coating of jet engine components | Amounts not allocated to segments | Consolidated | |||||||||||||||||||
Total assets | 24,251 | 39,193 | 55,616 | 8,846 | (1,255 | ) | 126,651 | |||||||||||||||||
Depreciation and amortization | 690 | 432 | 2,325 | 259 | - | 3,706 | ||||||||||||||||||
Expenditure for segment assets | 1,012 | 9,345 | 5,411 | 2,107 | - | 17,875 |
F - 52
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE | ENTITY-WIDE DISCLOSURE |
a. | Total revenues - by geographical location were attributed according to customer residential country as follows: |
Year ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Total revenues | Total revenues | Total revenues | ||||||||||
Sale of products | ||||||||||||
Israel | $ | 3,355 | $ | 3,464 | $ | 2,893 | ||||||
United States | 12,284 | 14,181 | 13,013 | |||||||||
Other | 7,100 | 7,374 | 7,245 | |||||||||
$ | 22,739 | $ | 25,019 | $ | 23,151 |
Year ended December 31, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Total revenues | Total revenues | Total revenues | ||||||||||
Sale of products | ||||||||||||
Israel | $ | 3,527 | $ | 3,249 | $ | 5,532 | ||||||
United States | 23,937 | 15,616 | 13,716 | |||||||||
Other | 7,777 | 6,595 | 6,622 | |||||||||
$ | 35,241 | $ | 25,460 | $ | 25,870 |
Year ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Total revenues | Total revenues | Total revenues | ||||||||||
Sale of Services | ||||||||||||
Israel | $ | 3,543 | $ | 3,624 | $ | 4,031 | ||||||
United States | 34,765 | 43,196 | 35,562 | |||||||||
Other | 14,312 | 25,640 | 24,977 | |||||||||
$ | 52,620 | $ | 72,460 | $ | 64,570 |
Year ended December 31, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Total revenues | Total revenues | Total revenues | ||||||||||
Sale of Services | ||||||||||||
Israel | $ | 4,170 | $ | 3,913 | $ | 2,213 | ||||||
United States | 58,062 | 40,954 | 34,231 | |||||||||
Other | 16,321 | 14,229 | 15,659 | |||||||||
$ | 78,553 | $ | 59,096 | $ | 52,103 |
b. | Total long-lived assets - by geographical location were as follows: |
December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Israel | $ | 15,071 | $ | 16,692 | $ | 12,894 | ||||||
United States | 18,908 | 11,354 | 8,530 | |||||||||
Total | $ | 33,979 | $ | 28,046 | 21,424 |
December 31, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Israel | $ | 11,569 | $ | 10,231 | $ | 8,427 | ||||||
United States | 35,002 | 41,270 | 26,978 | |||||||||
Total | $ | 46,571 | $ | 51,501 | $ | 35,405 |
c. | Major Customers |
F - 53
TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
U.S. dollars in thousands
NOTE 22 - | SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS INFORMATION |
Warranty provision | Provision for current expected credit losses | |||||||
Balance, as of December 31, 2017 | 306 | 623 | ||||||
Additions | 214 | 135 | ||||||
Deductions | (235 | ) | (482 | ) | ||||
Balance, as of December 31, 2018 | $ | 285 | $ | 276 | ||||
Additions | 115 | 84 | ||||||
Deductions | (165 | ) | (46 | ) | ||||
Balance, as of December 31, 2019 | $ | 235 | $ | 314 | ||||
Additions | 80 | 194 | ||||||
Deductions | (65 | ) | (202 | ) | ||||
Balance, as of December 31, 2020 | $ | 250 | $ | 306 |
Warranty provision | Provision for current expected credit losses | |||||||
Balance, as of December 31, 2020 | $ | 250 | $ | 306 | ||||
Additions | 80 | 269 | ||||||
Deductions | (87 | ) | (186 | ) | ||||
Balance, as of December 31, 2021 | $ | 243 | $ | 389 | ||||
Additions | - | 200 | ||||||
Deductions | - | (62 | ) | |||||
Balance, as of December 31, 2022 | $ | 243 | $ | 527 | ||||
Additions | 79 | 90 | ||||||
Deductions | (272 | ) | ||||||
Balance as of December 31. 2023 | 322 | 345 |
F - 56