Eltek Ltd (ELTK) 2024 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Eltek Ltd. 2024 first-quarter financial results conference call. (Operator Instructions)

女士們先生們，謝謝你們的支持。歡迎參加 Eltek Ltd. 2024 年第一季財務業績電話會議。（操作員說明）

As a reminder, this conference is being recorded. Before I turn the call over to Mr. Eli Yaffe, Chief Executive Officer; and Ron Freund, 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 forecast, assumptions, and expectations about future outcomes, which are subject to the risks and uncertainties outlined here and discussed more fully in Eltek's public disclosure filings. These forward-looking statements are projections and reflect the current beliefs and expectations of the company. Actual events or results may differ materially.

提醒一下，本次會議正在錄製中。在我將電話轉給執行長 Eli Yaffe 先生之前；和財務長 Ron Freund，我想提醒您，他們將在今天的演示和問答中提到前瞻性資訊。就其性質而言，這些資訊包含對未來結果的預測、假設和預期，這些結果受到此處概述的風險和不確定性的影響，並在 Eltek 的公開披露文件中進行了更全面的討論。這些前瞻性陳述是預測，反映了公司當前的信念和期望。實際事件或結果可能有重大差異。

We'll also be referring to non-GAAP measures. Eltek undertakes no obligation to publicly release revisions to such forward-looking statements to reflect events or circumstances occurring subsequent to this date.

我們也將提及非公認會計原則措施。Eltek 沒有義務公開發布對此類前瞻性陳述的修訂，以反映此日期之後發生的事件或情況。

I will now turn the call over to Mr. Eli Yaffe. Mr. Yaffe, please go ahead.

我現在將把電話轉給 Eli Yaffe 先生。亞菲先生，請繼續。

Thank you. Good morning. Thank you for joining us for our 2024 first-quarter earnings call. With me is Ron Freund, our Chief Financial Officer. We will begin by providing you with an overview of our business and the summary of our principal factors that affected our results during Q1 2024.

謝謝。早安.感謝您參加我們的 2024 年第一季財報電話會議。和我在一起的是我們的財務長 Ron Freund。首先，我們將向您概述我們的業務，並總結影響 2024 年第一季業績的主要因素。

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 be also available on our website.

在我們準備好發言後，我們將很樂意回答您的任何問題。到目前為止，每個人都應該可以訪問我們今天早些時候發布的新聞稿。該版本也將在我們的網站上發布。

Throughout the quarter, we witnessed a notable surge in request for quotations, primary with the defense sector. Correspondently, we have been the rise of the volume of order received. Our backlog, since the year's outset, and escalated to approximately 25%. This surge is directly attributed to the demand for the defense product worldwide.

在整個季度中，我們目睹了報價請求顯著激增，主要是國防部門。相應地，我們收到的訂單量也不斷上升。自年初以來，我們的積壓量已上升至約 25%。這種激增直接歸因於全球對國防產品的需求。

We anticipate that the full impact of this demand for the defense products has yet to be reflected in the purchase order received and expected the demand wave to intensify in the later-half of 2024 and early 2025.

我們預計，這種對國防產品的需求的全面影響尚未反映在收到的採購訂單中，並預計需求浪潮將在 2024 年下半年和 2025 年初加劇。

Despite the increase in demand, we have refrained from significantly increased prices. Our pricing policy remains consistent with previous years. However, expedited production request are subject to higher pricing than standard production.

儘管需求增加，但我們沒有大幅提高價格。我們的定價政策與往年保持一致。然而，加急生產請求的定價高於標準生產。

During the quarter, we secured a repeated order from an overseas defense client, totaling $1.6 million, with $1 million scheduled to delivery by the end of 2024 and the remainder by the end of 2025. This order aligned with our strategy to secure long-term contracts, facilitating more efficient production planning.

本季度，我們獲得了海外國防客戶的重複訂單，總額為 160 萬美元，其中 100 萬美元計劃於 2024 年底交付，其餘訂單於 2025 年底交付。此訂單符合我們確保長期合約的策略，促進更有效率的生產計劃。

The operational landscape for the coming years present significant challenges. During this year, we will plan to receive and installed two coating lines, which are the main components of our accelerated investment plan. Unlike various other machines required, these coating lines spend tens of meters and required extensive construction work.

未來幾年的營運前景面臨重大挑戰。今年，我們計劃接收並安裝兩條塗裝線，這是我們加速投資計畫的主要組成部分。與所需的各種其他機器不同，這些塗裝線長達數十米，並且需要大量的施工工作。

Consisting with our policy of executing investment without the starting coat production, we faced the task of conducting construction alongside active production lines. Presently, the plan remains on track. With our technical team focused on establishing the new manufacturing area and installing new machinery, while supporting ongoing production processes and maintenance. In addition, we have finished issuing purchase orders for all the remaining machines, including accelerated plan.

與我們在不開始生產塗層的情況下進行投資的政策一致，我們面臨著在活躍的生產線旁邊進行建設的任務。目前，該計劃仍按計劃進行。我們的技術團隊專注於建立新的製造區域和安裝新機械，同時支援持續的生產流程和維護。此外，我們已經完成了所有剩餘機器的採購訂單，包括加速計畫。

In addressing current production volume requirements manpower has emerged as a bottleneck. Our immediate focus lies in recruiting additional employees aiming to bolster the workforce by approximately 15%. This required substantial resource allocation, including wage increase to attract a sufficient number of employees.

在滿足當前的產量需求時，人力已成為瓶頸。我們目前的重點是招募更多員工，旨在將勞動力數量增加約 15%。這需要大量的資源配置，包括提高薪資以吸引足夠數量的員工。

I will now turn the call over to Ron Freund, our CFO, to discuss our financial results.

我現在將把電話轉給我們的財務長 Ron Freund，討論我們的財務表現。

Thank you, Eli. I would like to draw your attention to the financial statements for the first quarter of 2024. During this call, I will also discuss certain non-GAAP financial measures. Eltek uses EBITDA as a non-GAAP financial performance measurement.

謝謝你，伊萊。請您關注2024年第一季財務報表。在這次電話會議中，我也會討論某些非公認會計準則財務指標。Eltek 使用 EBITDA 作為非 GAAP 財務業績衡量標準。

Please see our earnings release for its definition and the reasons for its use. I will now go over the highlights of the first quarter of 2024. All numbers mentioned are in US dollars.

請參閱我們的收益報告，以了解其定義及其使用原因。我現在回顧一下2024年第一季的亮點。所有提及的數字均以美元為單位。

Revenues for the first quarter of 2024 were $11.8 million, compared to $11.5 million in the first quarter of 2023. Gross profit increased by 8% reaching $3.2 million, compared to a gross profit of $3 million in the first quarter of 2023. The increase is mainly due to the increase in revenue in the fixed component of part of the expenses included in cost of revenues.

2024 年第一季的營收為 1,180 萬美元，而 2023 年第一季的營收為 1,150 萬美元。毛利成長 8%，達到 320 萬美元，而 2023 年第一季的毛利為 300 萬美元。增加的主要原因是計入收入成本的部分費用中的固定部分收入增加。

Operating profit amounted to $1.7 million in Q1 2024, compared to $1.6 million in Q1 2023. We recorded financial income of $0.4 million during Q1 2024 due to the devaluation of the NIS against the US dollar and from interest -- on our interest-bearing accounts.

2024 年第一季的營業利潤為 170 萬美元，而 2023 年第一季的營業利潤為 160 萬美元。由於新謝克爾兌美元貶值以及我們的計息帳戶利息，我們在 2024 年第一季錄得 40 萬美元的財務收入。

Net profit was $1.7 million, or $0.27 per share in Q1 2024 compared to net profit of $1.6 million, or $0.27 per share during Q1 2023. EBITDA was $2.1 million, compared to $1.9 million in Q1 2023. During the first quarter of 2024, we enjoyed a positive cash flow from operating activities of $1.3 million. As of March 31, 2024, we had cash and cash equivalents and short-term bank deposits of $19.9 million with no debt outstanding.

2024 年第一季淨利潤為 170 萬美元，即每股 0.27 美元，而 2023 年第一季淨利潤為 160 萬美元，即每股 0.27 美元。EBITDA 為 210 萬美元，而 2023 年第一季為 190 萬美元。2024 年第一季度，我們的經營活動產生的正現金流為 130 萬美元。截至 2024 年 3 月 31 日，我們擁有現金和現金等價物以及短期銀行存款 1,990 萬美元，沒有未償債務。

We are now ready to answer your questions.

我們現在準備好回答您的問題。

Thank you. Ladies and gentlemen, at this time, we will begin the question-and-answer session. (Operator Instructions)

謝謝。女士們、先生們，現在我們將開始問答環節。（操作員說明）

There are no questions at this time.

目前沒有問題。

Before I ask Mr. Yaffe 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 our website.

在我請 Yaffe 先生繼續結束語之前，我想提醒與會者，明天我們的網站上將提供本次電話會議的重播。

Mr. Yaffe, would you like to make your -- there is a question.

亞菲先生，您想提出您的問題—有一個問題。

Mr. Sharogradsky, Kepler Capital.

Sharogradsky 先生，開普勒資本。

Hello, I want to ask a short question. How you see about the growth at this year, 2024? And how you look on your gross profit also this year? Thank you.

你好，我想問一個簡短的問題。您如何看待今年（2024 年）的成長？您如何看待今年的毛利？謝謝。

Hi. Good morning. We don't give any forecast for the year. It was not our policy, and we will not change this policy. As for the gross profit or the gross margin, we said in previous calls and we still keep it, we anticipate that in the medium term will be around the 27% gross margin.

你好。早安.我們不對今年做出任何預測。這不是我們的政策，我們也不會改變這個政策。至於毛利或毛利率，我們在先前的電話會議中說過，我們仍然保留它，我們預計中期毛利率將在27%左右。

And then do you see a possibility to increase the gross margin after a construction has ended in 2025?

那麼您認為 2025 年施工結束後毛利率有可能增加嗎？

So we are not sure whether it will be. Because at the same time, we hope that the investment will bring more efficiency. However, new investment requires no depreciation, and the depreciation expenses will increase. We think that in the near term, it will be around 27%.

所以我們不確定是否會這樣。因為同時我們也希望投資能帶來更多的效益。但新投資不需要折舊，折舊費用會增加。我們認為短期內會在27%左右。

Okay, all right. Thank you.

好吧，好吧。謝謝。

Thank you.

謝謝。

There are no further questions at this time. Mr. Yaffe, would you like to make a concluding statement?

目前沒有其他問題。Yaffe先生，您想做一個總結性發言嗎？

Before we conclude our call, I would like to thank all our employees for their continued efforts to meet our strategy of growth and profitability. I would like also to thank all our customers, partners, and investors for their continued support. Thank you, all, for joining us on today's call. Have a good day.

在結束通話之前，我要感謝所有員工為實現我們的成長和獲利策略所做的持續努力。我還要感謝所有客戶、合作夥伴和投資者的持續支持。感謝大家參加今天的電話會議。祝你有美好的一天。

Thank you. This concludes the Eltek Ltd. 2024 first-quarter financial results conference call. Thank you for your participation. You may go ahead and disconnect.

謝謝。Eltek Ltd. 2024 年第一季財務業績電話會議至此結束。感謝您的參與。您可以繼續並斷開連線。