TATTF Tat Technologies Ltd. (MM)

GEDERA, Israel, May 15 /PRNewswire-FirstCall/ -- TAT Technologies Ltd. (NASDAQ:TATTF), reported today its results for the three - month period ended March 31, 2009. TAT Technologies Ltd. (TAT), directly and through its subsidiaries, provides a variety of services and products to the military and commercial aerospace and ground defense systems industries. Such products and services primarily include the design, development, manufacture, maintenance and repair of (i) a broad range of heat transfer components (such as heat exchangers, pre-coolers and oil/fuel hydraulic coolers) used in mechanical and electronic systems on-board commercial, military and business aircraft; (ii) environmental control and cooling systems on board aircraft and for ground applications; and (iii) a broad range of electrical motion applications for airborne and ground systems. TAT announced net income of $1.1 million on revenues of $24.5 million for the three months ended March 31, 2009 compared to net income of $1.5 million on revenues of $22.2 million for the three months ended March 31, 2008. Revenues from the company's four principal lines of business for the three month periods ended March 31, 2009 and 2008 were as follows: Three Months Ended March 31, 2009 2008 Revenues % of Total Revenues % of Total Revenues Revenues In Thousands Revenues: MRO Services $11,484 46.8% $12,985 58.4% OEM - Heat Transfer products 7,680 31.3% 6,479 29.1% OEM - Electric Motion Systems 3,736 15.2% -- -- Parts Services 2,637 10.8% 4,135 18.6% Elimination (994) (4.1%) (1,356) (6.1%) Total Revenues 24,543 100.0% 22,243 100.0% The 10% increases in revenues for the three month period ended March 31, 2009 compared with the three month period ended March 31, 2008, reflect increased revenues in the OEM operations due to organic growth in the OEM of Heat Transfer products segment, as well as revenues in the OEM of Electric Motion Systems segment derived from the company's 70% controlled subsidiary, Bental Industries Ltd. which did not exist during the first quarter of fiscal 2008; offset by decreased revenues in the MRO services segment and in the Parts services segment. The 29.4% decrease in net income for the three month period ended March 31, 2009 compared with the three month period ended March 31, 2008, is primarily attributable to the decrease in the net income of our 62% held subsidiary, Limco-Piedmont from $1.0 million in the three month period ended March 31, 2008 to a loss of $0.2 million in the three month period ended March 31, 2009 partially offset by improved results for the Company's operations in Israel for the three month period ended March 31, 2009 compared with the three month period ended March 31, 2008. Dr. Shmuel Fledel, TAT's CEO commented: "The first quarter of year 2009 saw encouraging revenue growth for the TAT group, compared to the same period ended March 31, 2008, in large part due to our acquisition on August 18, 2008 of 70% of Bental Industries Ltd. We have improved our results of operation in Israel while experiencing a decrease in our revenues and gross margins in our operations in the U.S.. We are taking aggressive expense control measures, including the consolidation of our two US based operating entities into one location, in order to further improve the results of operations in the future." About TAT Technologies Ltd. TAT provides a variety of services and products to the military and commercial aerospace and ground defense industries through its Gedera facility in Israel, as well as through its subsidiaries, Bental Industries Ltd., or Bental, in Israel and Limco in the U.S. TAT operates under four operational segments: (i) OEM of Heat Transfer products (ii) OEM of Electric Motion Systems (iii) MRO services; and (iv) parts services, each with the following characteristics. TAT's activities in the area of OEM of Heat Transfer products primarily relate to the (i) design, development, manufacture and sale of a broad range of heat transfer components (such as heat exchangers, pre-coolers and oil/fuel hydraulic coolers) used in mechanical and electronic systems on-board commercial, military and business aircraft; and (ii) manufacture and sale of environmental control and cooling systems and (iii) a variety of other electronic and mechanical aircraft accessories and systems such as pumps, valves, power systems and turbines. TAT's activities in the area of OEM of Electric Motion Systems primarily relate to the design, development, manufacture and sale of a broad range of electrical motor applications for airborne and ground systems. TAT activities in this segment commenced with the acquisition of Bental in August 2008 and accordingly, the results in this segment for fiscal year 2008 are not compared with the previous years. TAT's MRO services include the remanufacture, overhaul and repair of heat transfer equipment and other aircraft components, APUs, propellers and landing gear. TAT's Limco subsidiary operates FAA certified repair stations, which provide aircraft component MRO services for airlines, air cargo carriers, maintenance service centers and the military. TAT's parts segment focuses on inventory management and sale of APU parts, propellers and landing gear. TAT offers parts services for commercial, regional and charter airlines and business aircraft owners. TAT's executive offices are located in the Re'em Industrial Park, Neta Boulevard, Bnei Ayish, Gedera 70750, Israel, and TAT's telephone number is 972-8-862-8500. Safe Harbor for Forward-Looking Statements This press release contains forward-looking statements that are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, general business conditions in the airline industry, changes in demand for our services and products, the timing and amount or cancellation of orders, the price and continuity of supply of component parts used in our operations, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statement. TAT TECHNOLOGIES AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data) March 31, March 31, 2009 2008 ASSETS Current Assets: Cash and cash equivalents $ 21,091 $17,509 Marketable securities 22,309 22,886 Trade accounts receivable (net of allowance for doubtful accounts of $176 and $93 at March 31, 2009 and March 31, 2008, respectively) 19,569 17,169 Inventories 34,579 32,607 Other accounts receivable and prepaid expenses 7,127 4,492 Total current assets 104,675 94,663 Funds in respect of employee right upon retirement 3,764 3,997 Property, plant and equipment, net 14,905 12,509 Intangible assets, net 1,946 1,634 Goodwill 5,764 4, 780 Total assets $131,054 $117,583 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Current maturities of long-term loans 138 -- Trade accounts payables 8,437 9,328 Accounts payables for dividend 4,463 -- Other accounts payable and accrued expenses 5,941 4,418 Total current liabilities 18,979 13,746 LONG-TERM LIABILITIES: Long-term loans, net of current maturities 6,385 - Liability in respect of employee rights upon retirement 4,359 4,145 Long-term deferred tax liability 1,024 548 11,768 4,693 SHAREHOLDERS' EQUITY: Share capital Ordinary shares of NIS 0.9 par value - Authorized: 10,000,000 shares at March 31, 2009 and 2008; Issued and outstanding: 6,548,021 shares and 6,542,671 shares at March 31, 2009 and 2008, respectively 2,204 2,201 Additional paid-in capital 39,667 39,356 Accumulated other comprehensive loss (1,918) - Treasury stock, at cost, 4,650 shares at March 31, 2009 (26) - Retained earnings 32,614 32,787 Total shareholders equity 72,541 74,344 Noncontrolling interest 27,766 24,800 Total equity: 100,307 99,144 Total liabilities and shareholders' equity $131,054 $117,583 TAT TECHNOLOGIES AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except share and per share data) Three months ended March 31, 2009 2008 Revenues MRO services $ 11,484 $12,985 OEM - Heat Transfer products 6,686 5,123 OEM - Electric Motion 3,736 -- Systems Parts services 2,637 4,135 24,543 22,243 Cost and operating expenses Cost of revenue 18,106 16,406 Research and development costs 165 -- Selling and marketing expenses 879 1,032 General and administrative expenses 2,943 2,826 Operating income 2,450 1,979 Financial (expense) income, net (295) 290 Other (expenses) income, net (209) 3 Income before income taxes 1,946 2,272 Income taxes 741 389 Net income 1,205 1,883 less: Net income attributable to noncontrolling interest (147) (384) Net income attributable to controlling interest $1,058 $1,499 Basic net income per share attributable to controlling interest $016 $0.23 Diluted net income per share attributable to controlling interest $0.16 $0.23 Weighted average number of shares - basic 6,552,671 6,542,671 Weighted average number of shares - diluted 6,552,671 6,557,090 For further information, please call Mr. Yaron Shalem, the Company CFO, at +972-8-8628503. DATASOURCE: TAT Technologies Ltd CONTACT: For further information, please call Mr. Yaron Shalem, the Company CFO, at +972-8-8628503

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