SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
 

          
F O R M 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2018

TAT TECHNOLOGIES LTD.
(Name of Registrant)
 
      P.O.BOX 80, Gedera 70750 Israel
(Address of Principal Executive Office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒          Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ☐           No ☒

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ____________



TAT Technologies Ltd.

6-K Items

1.
Press Release dated November 28, 2018 re TAT Technologies Ltd. Reports Third Quarter 2018 Results.
 
 
2

 
ITEM 1

Press Release
Source: TAT Technologies Limited

TAT Technologies Reports Third Quarter 2018 Results

GEDERA, Israel, November 28, 2018 - TAT Technologies Ltd. (NASDAQ: TATT - News) (“TAT” or the “Company”), a leading provider of products and services to the commercial and military aerospace and ground defense industries, reported today its unaudited results for the three month and nine month periods ended September 30, 2018.

Key Financial Highlights:

·
Revenues for Q3 2018 were $23.2 million compared with $26.6 million in Q3 2017.  Revenues for the nine-month period that ended on September 30, 2018 were $72.4 million compared with $80.2 million in the nine-month period that ended on September 30, 2017.
 
·
Adjusted EBITDA for Q3 2018 was $1 million, compared with $2.5 million in Q3 2017. Adjusted EBITDA for Q3 2018 improved by $1.3 million compared to Q2 2018. Adjusted EBITDA for the nine-month period that ended on September 30, 2018 was $1 million compared with $7.8 million in the nine-month period that ended on September 30, 2017.
 
·
GAAP net loss was $0.5 million, or $0.06 per diluted share in Q3 2018 compared with a net income of $0.8 million, or $0.10 per diluted share in Q3 2017. The net loss per share in Q3 2018 was lower by $0.1 per share compared with Q2 2018.
 
·
Non-GAAP net loss of $0.5 million, or $0.05 per diluted share in Q3 2018, compared with non-GAAP net income of $0.9 million, or $0.10 per diluted share in Q3 2017. The net loss per share in Q3 2018 was lower by $0.09 per share compared with Q2 2018.
 
·
Positive Operational cash flow of $3.1 million in Q3 2018 compared with negative operational cash flow of $0.6 million in Q3 2017. Positive operational cash flow of $2.9 million in the nine months of 2018 compared with positive operational cash flow of $ 2.4 million in the nine months of 2017.
 
Mr. Igal Zamir, CEO and President of TAT Technologies stated, “We continue our efforts to improve our results. We are in the midst of implementing several profitability improvements measures in the Company and its subsidiaries which resulted in improved cash flow in Q3 2018 compared to the previous quarter.  We now believe that total revenues for 2018 will be about 10% lower compared to 2017. However, we see several meaningful opportunities in the market. We look forward to see the future results of all the measures that were taken in order to increase our profitability”
 
Non-GAAP Financial Measures

To supplement the consolidated financial statements presented in accordance with GAAP, the Company also presents a Non-GAAP presentation of Net Income and Adjusted EBITDA.  The adjustments to the Company’s GAAP results are made with the intent of providing both management and investors a more complete understanding of the Company’s underlying operational results, trends and performance.  Non-GAAP Net Income excludes changes, income or losses, as applicable, related to one or more of the following: (1) share-based compensation expenses and/or (2) certain tax impact and/or (3) acquisition related expenses and/or (4) share in results of equity investment of affiliated companies. Adjusted EBITDA is calculated as net income before the Company's share in results and sale of equity investment of affiliated companies, share-based compensation, taxes on income, financial (expenses) income, net, and depreciation and amortization.  Non-GAAP Net Income and Adjusted EBITDA, however, should not be considered as alternatives to net income and operating income for the period and may not be indicative of the historic operating results of the Company; nor they are meant to be predictive of potential future results.  Non-GAAP Net Income and Adjusted EBITDA are not measures of financial performance under generally accepted accounting principles and may not be comparable to other similarly titled measures for other companies. See reconciliation of GAAP Net Income to Non-GAAP Net Income and Adjusted EBITDA in pages 9 and 13 below.

3


About TAT Technologies LTD
 
TAT Technologies Ltd. is a leading provider of services and products to the commercial and military aerospace and ground defense industries. TAT operates under four segments: (i) Original equipment manufacturing (“OEM”) of heat transfer solutions and aviation accessories through its Gedera facility; (ii) MRO services for heat transfer components and OEM of heat transfer solutions through its Limco subsidiary; (iii) MRO services for aviation components through its Piedmont subsidiary; and (iv) Overhaul and coating of jet engine components through its Turbochrome subsidiary. TAT controlling shareholders is the FIMI Private Equity Fund.

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

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

TAT’s activities in the area of MRO services for aviation components include the MRO of APUs, landing gears and other aircraft components. TAT’s Piedmont subsidiary operates an FAA-certified repair station, which provides aircraft component MRO services for airlines, air cargo carriers, maintenance service centers and the military.

TAT’s activities in the area of overhaul and coating of jet engine components includes the overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable inlet guide vanes and afterburner flaps.
 
For more information of TAT Technologies Ltd., please visit our web-site:
www.tat-technologies.com
 
Contact:
Ms. Inna Shpringer
MARCOM Manager
Tel: 972-8-862-8594
innas@tat-technologies.com


4


Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements which include, without limitation, statements regarding possible or assumed future operation results. These statements are hereby identified as "forward-looking statements" for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause our results to differ materially from management's current expectations. Actual results and performance can also be influenced by other risks that we face in running our operations including, but are not limited to, general business conditions in the airline industry, changes in demand for our services and products, the timing and amount or cancellation of orders, the price and continuity of supply of component parts used in our operations, the change of control that will occur on the sale by the receiver of the Company’s shares held by our previously controlling stockholders, and other risks detailed from time to time in the Company's filings with the Securities Exchange Commission, including, its annual report on form 20-F and its periodic reports on form 6-K. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statement.

 
5

 
TAT TECHNOLOGIES AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)

 
September 30,
   
December 31,
 
   
2018
   
2017
 
   
(unaudited)
   
(audited)
 
ASSETS
           
CURRENT ASSETS:
           
Cash and cash equivalents
 
$
17,240
   
$
17,514
 
Short-term bank deposits
   
470
     
470
 
Accounts receivable, net
   
21,055
     
25,744
 
Other current assets and prepaid expenses
   
2,690
     
2,363
 
Inventory, net
   
39,040
     
38,630
 
                 
Total current assets
   
80,495
     
84,721
 
                 
NON-CURRENT ASSETS:
               
 Investment in affiliates
   
1,090
     
1,192
 
Funds in respect of employee rights upon retirement
   
2,532
     
2,779
 
 Deferred income taxes
   
520
     
937
 
Intangible assets, net
   
945
     
1,045
 
Property, plant and equipment, net
   
21,596
     
21,321
 
                 
Total non-current assets
   
26,683
     
27,274
 
                 
Total assets
 
$
107,178
   
$
111,995
 
                 
LIABILITIES AND EQUITY
               
                 
CURRENT LIABILITIES:
               
Accounts payable
   
9,263
     
9,348
 
Accrued expenses
   
6,590
     
8,331
 
                 
Total current liabilities
   
15,853
     
17,679
 
                 
NON CURRENT LIABILITIES:
               
    Other long-term liabilities
   
200
     
146
 
Liability in respect of employee rights upon retirement
   
2,948
     
3,235
 
Deferred income taxes
   
2,070
     
2,361
 
                 
 Total non-current liabilities
   
5,218
     
5,742
 
                 
Total liabilities
   
21,071
     
23,421
 
                 
EQUITY:
               
Share capital
   
2,809
     
2,802
 
Additional paid-in capital
   
65,428
     
65,073
 
Treasury stock at cost
   
(2,088
)
   
(2,088
)
Accumulated other comprehensive gain (loss)
   
(32
)
   
135
 
Retained earnings
   
19,990
     
22,652
 
Total shareholders' equity
   
86,107
     
88,574
 
                 
Total liabilities and shareholders' equity
 
$
107,178
   
$
111,995
 

 
6

 
TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)
 
   
Three months ended
   
Nine months ended
   
Year ended
 
   
September 30,
   
December 31,
 
   
2018
   
2017
   
2018
   
2017
   
2017
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
                               
Revenues:
                             
Products
 
$
5,543
   
$
8,985
   
$
18,539
   
$
27,904
   
$
36,053
 
Services
   
17,642
     
17,596
     
53,835
     
52,326
     
70,474
 
     
23,185
     
26,581
     
72,374
     
80,230
     
106,527
 
                                         
Cost of goods:
                                       
Products
   
5,752
     
7,557
     
18,733
     
22,000
     
28,096
 
Services
   
14,399
     
13,930
     
44,838
     
42,536
     
57,987
 
     
20,151
     
21,487
     
63,571
     
64,536
     
86,083
 
Gross Profit
   
3,034
     
5,094
     
8,803
     
15,694
     
20,444
 
                                         
Operating expenses:
                                       
Research and development, net
   
(35
)
   
215
     
460
     
620
     
731
 
Selling and marketing
   
1,171
     
1,205
     
3,806
     
3,643
     
4,974
 
General and administrative
   
1,987
     
2,182
     
6,733
     
6,688
     
9,409
 
Other loss (income)
   
(1
)
   
(1
)
   
(1
)
   
27
     
53
 
     
3,122
     
3,601
     
10,998
     
10,978
     
15,167
 
Operating income (loss)
   
(88
)
   
1,493
     
(2,195
)
   
4,716
     
5,277
 
                                         
Financial income (expenses), net
   
(58
)
   
21
     
(39
)
   
(251
)
   
(338
)
                                         
Income (loss) before taxes on income
   
(146
)
   
1,514
     
(2,234
)
   
4,465
     
4,939
 
                                         
Taxes on income
   
356
     
623
     
326
     
1,656
     
2,333
 
                                         
Income (loss) before equity investment
   
(502
)
   
891
     
(2,560
)
   
2,809
     
2,606
 
                                         
Share in results of affiliated companies
   
(42
)
   
(50
)
   
(102
)
   
(156
)
   
(210
)
                                         
Net income (loss)
 
$
(544
)
 
$
841
   
$
(2,662
)
 
$
2,653
   
$
2,396
 
                                         
Basic and diluted income (loss) per share
                                       
                                         
Net income (loss) per share
 
$
(0.06
)
 
$
0.10
   
$
(0.30
)
 
$
0.30
   
$
0.27
 
                                         
Weighted average number of shares outstanding
                                       
Basic
   
8,874,696
     
8,848,028
     
8,861,567
     
8,848,028
     
8,848,028
 
Diluted
   
8,874,696
     
8,924,358
     
8,861,567
     
8,920,054
     
8,909,072
 


7


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


   
Three months ended
   
Nine months ended
    Year ended  
   
September 30,
    December 31,  
   
2018
   
2017
   
2018
   
2017
   
2017
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
                               
Net income (loss)
 
$
(544
)
 
$
841
   
$
(2,662
)
 
$
2,653
   
$
2,396
 
Other comprehensive income
                                       
Net unrealized gains (losses) from derivatives
   
16
     
(221
)
   
(332
)
   
(545
)
   
(686
)
Reclassification adjustments for gains (losses) included in net income and inventory
   
123
     
(113
)
   
165
     
760
     
894
 
       Total other comprehensive income (loss)
 
$
(405
)
 
$
507
   
$
(2,829
)
 
$
2,868
   
$
2,604
 


8

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

   
Three months ended
 
   
September 30, 
 
   
2018
   
2017
 
             
Reported net income (loss) on GAAP basis
 
$
(544
)
 
$
841
 
Adjustments:
               
Share in results of equity investment of affiliated company
   
42
     
50
 
Share based compensation
   
46
     
36
 
       Non-GAAP net income (loss)
 
$
(456
)
 
$
927
 
                 
       Non-GAAP net income per share (loss)
 
$
(0.05
)
 
$
0.10
 
                 
Weighted average number of shares outstanding
               
 Basic
   
8,874,696
     
8,848,028
 
 Diluted
   
8,874,696
     
8,924,358
 
 

 
9

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

   
TAT Technologies Ltd. Shareholders
       
   
Share capital
         
Accumulated
                   
   
Number of shares issued
   
Amount
   
Additional paid-in capital
   
other comprehensive income (loss)
   
Treasury shares
   
Retained earnings
   
Total equity
 
                                           
BALANCE AT DECEMBER 31, 2015 (audited)
   
9,082,817
   
$
2,793
   
$
64,529
   
$
(4
)
 
$
(2,088
)
 
$
26,194
   
$
91,424
 
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2016 (audited):
                                                       
Comprehensive income (loss)
   
-
     
-
     
-
     
(69
)
   
-
     
62
     
(7
)
Share based compensation expenses
   
-
     
-
     
105
     
-
     
-
     
-
     
105
 
 Exercise of option
   
20,100
     
4
     
126
     
-
     
-
     
-
     
130
 
 Dividend distributed
   
-
     
-
     
-
     
-
     
-
     
(3,000
)
   
(3,000
)
BALANCE AT DECEMBER 31, 2016 (audited)
   
9,102,917
   
$
2,797
   
$
64,760
   
$
(73
)
 
$
(2,088
)
 
$
23,256
   
$
88,652
 
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2017 (audited):
                                                       
Comprehensive income
   
-
     
-
     
-
     
208
     
-
     
2,396
     
2,604
 
 Share based compensation expenses
   
-
     
-
     
174
     
-
     
-
     
-
     
174
 
 Exercise of options
   
19,584
     
5
     
139
     
-
     
-
     
-
     
144
 
 Dividend distributed
   
-
     
-
     
-
     
-
     
-
     
(3,000
)
   
(3,000
)
BALANCE AT DECEMBER 31, 2017 (audited)
   
9,122,501
   
$
2,802
   
$
65,073
   
$
135
   
$
(2,088
)
 
$
22,652
   
$
88,574
 
CHANGES DURING THE NINE MONTHS ENDED SEPTEMBER 30, 2018 (unaudited):
                                                       
Comprehensive loss
   
-
     
-
     
-
     
(167
)
   
-
     
(2,662
)
   
(2,829
)
Share based compensation expenses
   
-
     
-
     
165
     
-
     
-
     
-
     
165
 
 Exercise of options
   
26,668
     
7
     
190
     
-
     
-
     
-
     
197
 
BALANCE AT SEPTEMBER 30, 2018 (unaudited)
   
9,149,169
   
$
2,809
   
$
65,428
   
$
(32
)
 
$
(2,088
)
 
$
19,990
   
$
86,107
 


10


TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 
   
Three months ended
   
Nine months ended
   
Year ended
 
   
September 30,
   
December 31,
 
   
2018
   
2017
   
2018
   
2017
   
2017
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
                               
CASH FLOWS FROM OPERATING ACTIVITIES:
                             
Net income (loss) attributable to TAT Technologies Ltd. shareholders
 
$
(544
)
 
$
841
   
$
(2,662
)
 
$
2,653
   
$
2,396
 
                                         
Adjustments to reconcile net income to net cash provided by operating activities:
                                       
                                         
Depreciation and amortization
   
1,048
     
987
     
3,085
     
2,936
     
3,941
 
Loss on sale of  property, plant and equipment
   
-
     
-
     
-
     
28
     
54
 
Interest from short-term bank deposits and restricted deposits
   
-
     
-
     
-
     
-
     
(6
)
Loss (gain) from change in fair value of derivatives
   
35
     
(40
)
   
422
     
(100
)
   
(490
)
Provision for doubtful accounts
   
(474
)
   
-
     
(347
)
   
38
     
321
 
Share in results and sale of equity investment of affiliated Company
   
42
     
50
     
102
     
156
     
210
 
Share based compensation
   
46
     
36
     
165
     
151
     
174
 
Liability in respect of employee rights upon retirement
   
16
     
190
     
(287
)
   
360
     
241
 
Deferred income taxes, net
   
181
     
341
     
126
     
57
     
382
 
Changes in operating assets and liabilities:
                                       
    Decrease (increase)  in trade accounts receivable
   
2,015
     
(3,185
)
   
5,036
     
(4,470
)
   
(4,493
)
    Decrease (increase) in other current assets and prepaid expenses
   
172
     
(521
)
   
(576
)
   
(1,138
)
   
488
 
     Decrease (increase) in inventory
   
(569
)
   
(1,353
)
   
(481
)
   
1,319
     
210
 
    Increase in trade accounts payable
   
1,042
     
2,805
     
10
     
1,433
     
578
 
    Increase (decrease) in  accrued expenses
   
151
     
(701
)
   
(1,741
)
   
(1,084
)
   
(1,505
)
    Increase (decrease) in other long-term liabilities
   
(25
)
   
(13
)
   
54
     
12
     
(5
)
Net cash provided by (used in) operating activities
 
$
3,136
   
$
(563
)
 
$
2,906
   
$
2,351
   
$
2,496
 
                                         
CASH FLOWS FROM INVESTING ACTIVITIES:
                                       
Investment in affiliated company
   
-
     
(133
)
   
-
     
(384
)
   
(383
)
Funds in respect of employee rights upon retirement
   
-
     
(26
)
   
(22
)
   
(97
)
   
(156
)
Proceeds from sale of property and equipment
   
-
     
-
     
7
     
-
     
-
 
Purchase of property and equipment
   
(1,177
)
   
(1,203
)
   
(3,362
)
   
(2,632
)
   
(3,520
)
Maturities of short-term deposits
   
-
     
-
     
-
     
500
     
500
 
Cash flows used in investing activities
 
$
(1,177
)
 
$
(1,362
)
 
$
(3,377
)
 
$
(2,613
)
 
$
(3,559
)
 
11

 
 
   
Three months ended
   
Nine months ended
   
Year ended
 
   
September 30,
   
December 31,
 
   
2018
   
2017
   
2018
   
2017
   
2017
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
                               
CASH FLOWS FROM FINANCING ACTIVITIES:
                             
Payment of cash dividend
   
-
     
-
     
-
     
(3,000
)
   
(3,000
)
 Exercise of options
   
95
     
144
     
197
     
144
     
144
 
Cash flows  provided by (used in) financing activities
 
$
95
   
$
144
   
$
197
   
$
(2,856
)
 
$
(2,856
)
                                         
Net increase (decrease) in cash and cash equivalents
   
2,054
     
(1,781
)
   
(274
)
   
(3,118
)
   
(3,919
)
                                         
Cash and cash equivalents at beginning of period
   
15,186
     
20,096
     
17,514
     
21,433
     
21,433
 
                                         
Cash and cash equivalents at end of period
 
$
17,240
   
$
18,315
   
$
17,240
   
$
18,315
   
$
17,514
 

 

12

 
TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
 RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (NON-GAAP) (UNAUDITED)
(In thousands)

   
Three months ended
   
Nine months ended
   
Year ended
 
   
September 30,
   
September 30,
   
December 31,
 
   
2018
   
2017
   
2018
   
2017
   
2017
 
                               
Net income (loss)
 
$
(544
)
 
$
841
   
$
(2,662
)
 
$
2,653
   
$
2,396
 
Adjustments:
                                       
Share in results and sale of equity investment of affiliated companies
   
42
     
50
     
102
     
156
     
210
 
Taxes on income
   
356
     
623
     
326
     
1,656
     
2,333
 
Financial expenses (income), net
   
58
     
(21
)
   
39
     
251
     
338
 
Depreciation and amortization
   
1,048
     
987
     
3,085
     
2,936
     
3,941
 
Share based compensation
   
46
     
36
     
165
     
151
     
174
 
Adjusted EBITDA
 
$
1,006
   
$
2,516
   
$
1,055
   
$
7,803
   
$
9,392
 

 
13


SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
TAT TECHNOLOGIES LTD.
             (Registrant)
 
By: /s/ Ehud Ben-Yair
      Ehud Ben-Yair
      Chief Financial Officer

Date: November 28, 2018
 
14