Q3 2022 Eltek Ltd Earnings Call

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Ladies and gentlemen, thank you for standing by welcome to the <unk> 2022 the third quarter financial results Conference call. All participants are at present in listen only mode. Following management's formal presentation instructions will be given for the question and answer session for operators.

Systems during the conference. Please press Star Zero as a reminder, this conference is being recorded before I turn the call over to Mr. Al <unk>, Chief Executive Officer, and Ron <unk>, Chief Financial Officer, I'd like to remind you that they will be referring to forward looking information in today's presentation and in the Q&A.

By its nature. This information contains forecasts assumptions and expectations about future outcomes, which are subject to the risks and uncertainties outlined here and discussed more fully in alpex public disclosure filings.

Forward looking statements are projections and reflect the current beliefs and expectations of the company.

Actual events or results may differ materially we will also be referring to non-GAAP measures I'll take undertakes no obligation to publicly release revisions to such forward looking statements to reflect events or circumstances occurring subsequent to this date I will now turn the call over to Mr. Elliott outfit.

Please go ahead.

Thank you.

Good morning, everyone. Thank you all for joining us and welcome to <unk> 2022 sales quarter, earning call.

With me is Ron <unk>, our Chief Financial Officer, we will begin by providing you with an overview of our business and a summary of the principal factors that affected our results in the third quarter, followed by the details of our financial results.

After our prepared remarks, we will be happy to answer any of your questions by now.

Everyone should have access to our press release.

Which was released earlier today.

The release will also be available on our website at www Dot mystic.

Yeah.

In the same quarter of 2022, we recorded a revenue of $10 $3 million pre tax income of $1 $2 million and a net income of $1 million.

This is consistent with our efforts to increase revenue and profitability.

Our backlog remains remained strong and we are focusing that the overall demand for high end products will continue to support our since it falls.

The company's commercial activity is growing quarter over quarter, and we continue to concentrate our efforts in this area as well.

We have concluded the negotiations with the government authority regarding the continuation of the project in 2023 and 2024.

But we did not received yet official appeal. This phase of the project will include among other things the manufacturing and products and procurement of capital equipment.

During the third quarter, we successfully installed three new manufacturing machine and intend to install two additional machines in the fourth quarter of 2022.

As you are well we are working to implement the first phase of our accelerated investment program, which will allow us to increase sales and profitability.

We are focusing in the discussion with our insurance company to recover the expenses in Q in cured during the fire in our plant earlier. This year, we have received $1 million advance payment, which covers the bulk of all expenses.

Since the beginning of 2022 we have managed to increase our work force like 18%.

With the increased production demands the training process for new employees is long and complicated, but I estimated the dollar we quote requirement recruitment efforts will continue for several more months.

I will now turn the call over to one point, our CFO to discuss our financial statements.

Thank you Ali.

I would like to draw your attention to the financial statements for the third quarter of 2022.

During this call I will also discuss certain non-GAAP financial measures.

<unk> uses EBITDA as a non-GAAP financial performance measurement. Please see our earnings release for the definition and the reasons for its use now.

Now I will go over the highlights of Q3 2022, and the first nine months of 2020.

Revenues for the third quarter of 2022 totaled $10 $3 million compared to <unk>.

$8 million in the third quarter of 2021, an increase of 30%.

Revenues for the first nine months of 2022 totaled $29.

$2 million compared to $24 3 million in the same period last year, an increase of 20%.

Gross profit for the third quarter of 2022 totaled $2 $4 million compared to a gross profit of $1.4 million in the third quarter of 2021.

The increase in gross profit is due to increase in revenues.

Gross profit for the first nine months of 2022 totaled six $1 million compared to $4 9 million daus in the same period last year.

Operating profit amounted to $1.1 million in Q3, 2022 compared to zero point $1 million in 2021.

Operating income in the first nine months of 2022, total $2 1 million as compared to $1 $3 million in the same period last year.

Net profit was $1 million or 70 cents per share in Q3 2022.

<unk> to net profit of zero million in Q3 2021.

Net profit for the first nine months of 2022 was $2 $4 million compared to 1.2.

$2 million in the first nine months of 2021.

EBITA was $1 4 million in Q3, 2022 compared to zero point $6 million in Q3 2021 for.

For the first nine months of 2022, EBITA was $3 $3 million compared to $2 seven in the same period last year.

As of September 32022, we had cash and cash equivalents of $78 million compared to $9 $3 million at December 31, 2021.

The decrease is mainly due to delivery duration of the U S dollar against Dennis.

We are now ready to take your questions.

Thank you ladies and gentlemen at this time, we will begin the question and answer session.

Have a question. Please press star one if you wish to cancel your request. Please press star two if you are using speaker equipment.

A handset before pressing the numbers.

Questions will be answered in the order. They are received please standby as we poll for your questions.

I repeat if you have a question please press star one.

There are no questions at this time.

Before I ask Mr. Yap at to go ahead with his closing statement I would like to remind the participants that a replay of this call will be available tomorrow on <unk> website, www dot NASDAQ Alphatec dot com.

Before we conclude our call I would like.

Mr. <unk> would you like to make your concluding statement yes.

Yes. Thank you before we conclude our call I would like to thank to thank all our employees for their continued effort to meet our strategy of increased sales and profitability I would like also to.

So thanks, all our customers partners and vessel and the Essex team for their continued support. Thank you all for joining us on todays score ever good day.

This concludes the <unk> 2022 third quarter financial results Conference call. Thank you for your participation you May go ahead and disconnect.

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