ELTK - Earnings call transcript Q1 2024

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Eltek LTD 2024 First Quarter Financial Results Conference Call.

[Operator Instructions]

As a reminder, this conference is being recorded.

Before I turn the call over to Mr. presentation Officer; remind Freud, be you forward-looking in Executive I'd Financial referring Chief Q&A. information to the like that today's Yaffe, and Chief Ron Officer; to Eli in and they will By its assumptions about here risks outcomes, future disclosure and the contains discussed are to in uncertainties and filings. Eltek's subject public expectations which and this nature, information forecast outlined more fully

may Actual to differ undertakes current These We'll forward-looking beliefs the or events subsequent this statements or forward-looking the of no revisions circumstances reflect referring results are be to events such and date. company. materially. Eltek also to to publicly projections expectations measures. reflect statements occurring to and non-GAAP release obligation

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

Eli Yaffe

joining Freund, Financial our Call. our you Good First XXXX you. Earnings Chief Ron Thank morning. With Thank is us for me for Officer. Quarter

happy We that QX will and will you of business providing on your release now, be access available remarks, prepared should have summary our an today. website. release, questions. our our released our of we affected will answer of with press be overview everyone to The begin After which also By our by principal results factors the was any our XXXX. to during earlier

we been rise of the in quarter, request of defense have we received. for witnessed surge the a notable the the Throughout Correspondently, quotations, primary sector. with order volume

be the the products demand escalated the the expected defense wave received XXXX. worldwide. XXXX to that to surge the and and We order in XX%. as the later product this intensify early yet in year's demand for impact directly since defense purchase half the of outset of full Our to and the backlog attributed approximately reflected demand is for to This anticipate

increase demand, significantly prices. refrained we from have Despite increased the in

previous years. Our consistent pricing policy with remains

request higher production However, pricing are production. standard expedited to subject than

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

The operational landscape significant present coming challenges. the for years

we With lines, faced the and of processes remains without production investment of Unlike to construction receive construction various meters year, which accelerated the plan this machines coating tens starting will We manufacturing with are investment [ team of while machinery, coating Presently, our and focused executing area on the main alongside lines extensive establishing the production. X on ] our track. of conducting the installed ongoing During task policy our other required installing components required, these work. production supporting technical lines. coat Consisting active maintenance. spend new plan and and plan. new

orders issuing In volume addition, production emerged the all current for addressing accelerated remaining as purchase finished requirements, has bottleneck. we machines, In a including have plan. manpower

employees. of Our including number This immediate aiming workforce to resource additional to allocation, XX%. the recruiting by approximately increase attract a employees lies required bolster wage focus in substantial sufficient

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

Ron Freund

Thank to you, statements financial XXXX. of to like Eli. the first for I draw your would attention quarter the

U.S. EBITDA reasons highlights the release for as call, for earnings definition Eltek also this now are dollars. non-GAAP over will go our of performance see the quarter first XXXX. the All will measures. certain measurement. numbers I in During its I financial non-GAAP use. discuss uses Please mentioned a its of financial and

QX compared X%, profit included fixed XXXX of component on our XXXX. interest-bearing Net reaching interest in million XXXX $X.X [indiscernible] QX $X.XX the million net the $X.X million per XXXX. quarter first a to compared the mainly in XXXX cost million in million to to revenue was the or QX $X.X due the share financial $X.X $X.X gross expenses devaluation due to is from increased of compared the Operating in were XXXX in part for $XX.X amounted in to dollar to against income in increase to U.S. million $X profit in Gross the revenues. first $X.X QX profit XXXX. and The accounts. of profit increase of of of of QX first profit We the million or $X.XX million of compared million $XX.X during of during quarter XXXX. by of recorded Revenues per quarter share

to million million $X.X QX was XXXX. EBITDA compared in $X.X

of quarter flow XXXX, cash first activities the of a enjoyed operating from positive we During $X.X million.

XX, we of debt cash cash no March $XX.X outstanding. million of short-term XXXX, equivalents deposits with and and had As bank

We are questions. your to now answer ready

Operator

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

[Operator Instructions]

no questions are time. this There at

our Mr. I statement, participants available his the website. call to remind replay Before that this ask would Yaffe like ahead on go will be with to closing I of tomorrow a

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

question Shigeki first Capital. Mr. The Kepler is of from

Unknown Analyst

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

Ron Freund

forecast We and the our year. don't was It we not will policy. not this policy, give for change any

the and in anticipate profit margin. the around As for the we term we margin, the that be still said gross We in gross keep medium calls, gross will or XX% previous it.

Unknown Analyst

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

Ron Freund

will whether will -- time, that will So we investment hope are not the same efficiency. we be more we sure at bring because the it

no around require increase. We expenses will investment and will depreciation think the near the new However, in be that it depreciation XX%. term,

Operator

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

Eli Yaffe

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

Operator

participation. Financial you First Call. your Conference Results LTD Thank XXXX you. Quarter This for concludes the Eltek Thank

You may go ahead and disconnect.

Eltek (ELTK) 21 May 242024 Q1 Earnings call transcript