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 August 2017

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 August 13, 2017 re TAT Technologies Ltd. Reports Second Quarter 2017 Results.

2

 
ITEM 1

Press Release
Source: TAT Technologies Limited

TAT Technologies Reports Continued Improvement in Profitability and revenue growth in Q2 2017

Revenue growth of 13% in Q2/17 compare to Q2/16 and 14% in H1/17 compared to H1/16.

Company achieves Adjusted EBITDA of $2.4 million for the quarter compared with $1.2 million in
Q2/16, an increase of 100% and $5.3 million for the first half of the year compared with $2.3
million in H1/16, an increase of 130%.

GEDERA, Israel, August 13, 2017 - 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 six month periods ended June 30, 2017.

Key Financial Highlights:

·
Revenues for Q2 2017 were $26.6 million compared with $23.5 million in Q2 2016, a 13.2% growth.  Revenues for H1 2017 were $53.6 million compared with $47.2 million in H1 2016, a 13.6% growth.

·
Profitability showed significant improvement, both quarter-over-quarter and first half-over-first half:

o
Adjusted EBITDA for Q2 2017 increased to $2.4 million compared with $1.2 million in Q2 2016, an increase of 100%. Adjusted EBITDA for H1 2017 increased to $5.3 million compared with $2.3 million in H1 2016, an increase of 130%.
o
The Company achieved GAAP net income of $0.6 million, or $0.07 per diluted share in Q2 2017, compared with a loss of $(2.5) million, or $(0.28) per diluted share, in Q2 2016.
o
Non-GAAP net income reached $0.8 million, or $0.09 per diluted share in Q2 2017, compared with a loss of $(0.1) million, or $(0.01) per diluted share in Q2 2016.

·
Last Twelve Months (“LTM”) results for the period ended June 30, 2017 improved with revenues of $102.3 million compared to $90.8 million in the LTM period ended June 30, 2016, a growth of 12.7%. Adjusted EBITDA for the LTM period ended June 30, 2017 was $10.9 million compared to $2.5 million in the LTM period ended June 30, 2016, a growth of 336%.
 
Mr. Igal Zamir, CEO and President of TAT Technologies stated, “Our second quarter results reflect the continued implementation of the Company’s plan to improve efficiencies and cost reduction. This is the fourth consecutive quarter in which we demonstrate consistent and significant improvement resulting from streamlining operations, leveraging additional synergies between our various business activities and having certain new marketing processes. In addition, we are systematically focusing on tenders that guarantee present profitability compared to those that characterized our past activities, as reflected in the change of our product mix.”

Mr. Zamir added, “The aviation industry is benefiting from an increase in fleet sizes as well as passenger traffic on the one hand and low fuel prices on the other; we are working to leverage these trends in order to strengthen our business and competitive position. We are thrilled that the 14% sales growth was achieved concurrently with a decrease in operating expenses, resulting in Adjusted EBITDA doubling in the first six months of 2017 compared to the comparable period in 2016. The Adjusted EBITDA ratio also grew to more than 9% of total revenues during this period. We believe that our long term strategy will enable TAT to better utilize business opportunities and maintain our growth momentum.”

3


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.

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.

4

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
 
Guy Nathanzon, CFO
TAT Technologies Ltd.
Tel: 972-8-862-8500
guyn@tat-technologies.com
 
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)

 
June 30,
   
December 31,
 
   
2017
   
2016
 
   
(unaudited)
   
(audited)
 
ASSETS
           
CURRENT ASSETS:
           
Cash and cash equivalents
 
$
20,096
   
$
21,433
 
Short-term bank deposits
   
464
     
964
 
Accounts receivable, net
   
22,819
     
21,572
 
Other current assets and prepaid expenses
   
3,020
     
1,687
 
Inventory, net
   
36,406
     
39,269
 
                 
Total current assets
   
82,805
     
84,925
 
                 
NON-CURRENT ASSETS:
               
 Investment in affiliates
   
1,164
     
1,019
 
Funds in respect of employee rights upon retirement
   
2,816
     
2,660
 
 Deferred income taxes
   
1,032
     
896
 
Intangible assets, net
   
1,112
     
1,179
 
Property, plant and equipment, net
   
20,902
     
21,298
 
                 
Total non-current assets
   
27,026
     
27,052
 
                 
Total assets
 
$
109,831
   
$
111,977
 
                 
LIABILITIES AND EQUITY
               
                 
CURRENT LIABILITIES:
               
Accounts payable
   
7,120
     
8,406
 
Accrued expenses
   
9,453
     
9,836
 
                 
Total current liabilities
   
16,573
     
18,242
 
                 
NON CURRENT LIABILITIES:
               
Other long-term liabilities
   
176
     
151
 
Liability in respect of employee rights upon retirement
   
3,164
     
2,994
 
Deferred income taxes
   
1,790
     
1,938
 
                 
Total non-current liabilities
   
5,130
     
5,083
 
                 
Total liabilities
   
21,703
     
23,325
 
                 
EQUITY:
               
Share capital
   
2,797
     
2,797
 
Additional paid-in capital
   
64,875
     
64,760
 
Treasury stock at cost
   
(2,088
)
   
(2,088
)
Accumulated other comprehensive loss
   
476
     
(73
)
Retained earnings
   
22,068
     
23,256
 
Total shareholders' equity
   
88,128
     
88,652
 
                 
Total liabilities and shareholders' equity
 
$
109,831
   
$
111,977
 

6

 
TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)

   
Three months ended
   
Six months ended
   
Year ended
 
   
June 30,
   
December 31,
 
   
2017
   
2016
   
2017
   
2016
   
2016
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
                               
Revenues:
                             
Products
 
$
9,369
   
$
7,941
   
$
18,919
   
$
16,010
   
$
30,431
 
Services
   
17,199
     
15,589
     
34,730
     
31,154
     
65,363
 
     
26,568
     
23,530
     
53,649
     
47,164
     
95,794
 
                                         
Cost of goods:
                                       
Products
   
7,532
     
6,341
     
14,443
     
13,032
     
23,788
 
Services
   
13,993
     
12,794
     
28,606
     
25,802
     
52,969
 
     
21,525
     
19,135
     
43,049
     
38,834
     
76,757
 
Gross Profit
   
5,043
     
4,395
     
10,600
     
8,330
     
19,037
 
                                         
Operating expenses:
                                       
Research and development, net
   
176
     
474
     
405
     
738
     
1,140
 
Selling and marketing
   
1,296
     
947
     
2,438
     
1,957
     
3,876
 
General and administrative
   
2,239
     
2,682
     
4,506
     
5,092
     
10,023
 
Other loss (income)
   
-
     
(4
)
   
28
     
(3
)
   
(138
)
     
3,711
     
4,099
     
7,377
     
7,784
     
14,901
 
Operating income
   
1,332
     
296
     
3,223
     
546
     
4,136
 
                                         
Financial expenses, net
   
(100
)
   
(13
)
   
(272
)
   
(32
)
   
(154
)
                                         
Income before taxes on income
   
1,232
     
283
     
2,951
     
514
     
3,982
 
                                         
Taxes on income
   
535
     
2,722
     
1,033
     
2,908
     
3,865
 
                                         
Income (loss) before equity investment
   
697
     
(2,439
)
   
1,918
     
(2,394
)
   
117
 
                                         
Share in results of affiliated companies
   
(86
)
   
(14
)
   
(106
)
   
(14
)
   
(55
)
                                         
Net income (loss)
 
$
611
   
$
(2,453
)
 
$
1,812
   
$
(2,408
)
 
$
62
 
                                         
Basic and diluted income (loss) per share
                                       
                                         
Net income (loss) per share
 
$
0.07
   
$
(0.28
)
 
$
0.21
   
$
(0.27
)
 
$
0.01
 
                                         
Weighted average number of shares outstanding
                                       
Basic
   
8,828,444
     
8,828,444
     
8,828,444
     
8,828,444
     
8,828,444
 
Diluted
   
8,832,080
     
8,828,444
     
8,892,756
     
8,828,444
     
8,830,764
 

7

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

   
Three months ended
   
Six months ended
   
Year ended
 
   
June 30,
   
December 31,
 
   
2017
   
2016
   
2017
   
2016
   
2016
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
                               
Net income (loss)
 
$
611
   
$
(2,453
)
 
$
1,812
   
$
(2,408
)
 
$
62
 
Other comprehensive income
                                       
Net unrealized gains (losses) from derivatives
   
(227
)
   
(173
)
   
(324
)
   
192
     
174
 
Reclassification adjustments for gains included in net income and inventory
   
336
     
(74
)
   
873
     
(121
)
   
(243
)
Total other comprehensive income (loss)
 
$
720
   
$
(2,700
)
 
$
2,361
   
$
(2,337
)
 
$
(7
)

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
 
   
June 30,
 
   
2017
   
2016
 
             
Reported net income (loss) on GAAP basis
 
$
611
   
$
(2,453
)
Adjustments:
               
Tax adjustments re non-GAAP adjustments (1)
   
-
     
2,360
 
Share in results of equity investment of affiliated company
   
86
     
14
 
Share based compensation
   
58
     
13
 
 Non-GAAP net income (loss)
 
$
755
   
$
(66
)
                 
 Non-GAAP net income per share (loss)
 
$
0.09
   
$
(0.01
)
                 
Weighted average number of shares outstanding
               
 Basic
   
8,828,444
     
8,828,444
 
 Diluted
   
8,832,080
     
8,828,444
 
 
(1)
During the second quarter of 2016 the Company distributed dividend from its foreign subsidiaries earnings. As a result, the company accrued deferred tax liability due to actual distribution of earnings from foreign subsidiaries of the Company and due to the possibility of future distribution of earnings from such foreign subsidiaries.

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, 2014 (audited)
   
9,082,817
   
$
2,793
   
$
64,491
   
$
-
   
$
(2,088
)
 
$
20,345
   
$
85,541
 
CHANGES DURING THE YEAR ENDED DECEMBER 31, 2015 (audited):
                                                       
Comprehensive income (loss)
   
-
     
-
     
-
     
(4
)
   
-
     
5,849
     
5,845
 
Share based compensation expenses
   
-
     
-
     
38
     
-
     
-
     
-
     
38
 
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 SIX MONTHS ENDED JUNE 30, 2017 (unaudited):
                                                       
Comprehensive income
   
-
     
-
     
-
     
549
     
-
     
1,812
     
2,361
 
 Dividend distributed
   
-
     
-
     
-
     
-
     
-
     
(3,000
)
   
(3,000
)
 Share based compensation expenses
   
-
     
-
     
115
     
-
     
-
     
-
     
115
 
BALANCE AT JUNE 30, 2017 (unaudited)
   
9,102,917
   
$
2,797
   
$
64,875
   
$
476
   
$
(2,088
)
 
$
22,068
   
$
88,128
 

10



TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

   
Three months ended
   
Six months ended
   
Year ended
 
   
June 30,
   
December 31,
 
   
2017
   
2016
   
2017
   
2016
   
2016
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
                               
CASH FLOWS FROM OPERATING ACTIVITIES:
                             
Net income (loss) attributable to TAT Technologies Ltd. shareholders
 
$
611
   
$
(2,453
)
 
$
1,812
   
$
(2,408
)
 
$
62
 
                                         
Adjustments to reconcile net income to net cash provided by operating activities:
                                       
                                         
Depreciation and amortization
   
980
     
880
     
1,949
     
1,731
     
3,636
 
Loss on sale of  property, plant and equipment
   
-
     
-
     
28
     
1
     
12
 
Interest from short-term bank deposits and restricted deposits
   
-
     
-
             
(11
)
   
(24
)
Loss (gain) from change in fair value of derivatives
   
(43
)
   
5
     
(60
)
   
(48
)
   
(152
)
Provision for doubtful accounts
   
19
     
-
     
38
     
43
     
(29
)
Share in results and sale of equity investment of affiliated Company
   
86
     
14
     
106
     
14
     
55
 
Share based compensation
   
58
     
13
     
115
     
27
     
105
 
Liability in respect of employee rights upon retirement
   
68
     
(5
)
   
170
     
13
     
123
 
Deferred income taxes, net
   
(342
)
   
2,218
     
(284
)
   
2,100
     
1,670
 
Changes in operating assets and liabilities:
                                       
    Increase in trade accounts receivable
   
(1,820
)
   
(2,060
)
   
(1,285
)
   
(3,497
)
   
(2,392
)
   Decrease (increase) in other current assets and prepaid expenses
   
324
     
1,480
     
(618
)
   
944
     
1,487
 
Decrease (increase) in inventory
   
1,407
     
(677
)
   
2,672
     
(505
)
   
(2,707
)
    Increase (decrease) in trade accounts payable
   
67
     
(551
)
   
(1,371
)
   
(124
)
   
1,192
 
    Increase (decrease) in  accrued expenses
   
(1,613
)
   
(207
)
   
(383
)
   
345
     
2,521
 
    Increase (decrease) in other long-term liabilities
   
(11
)
   
25
     
25
     
(122
)
   
(38
)
Net cash provided by (used in) operating activities
 
$
(209
)
 
$
(1,318
)
 
$
2,914
   
$
(1,497
)
 
$
5,521
 
                                         
CASH FLOWS FROM INVESTING ACTIVITIES:
                                       
Investment in affiliated company
   
(164
)
   
(13
)
   
(251
)
   
(13
)
   
(905
)
Funds in respect of employee rights upon retirement
   
(35
)
   
117
     
(71
)
   
(23
)
   
2
 
Proceeds from sale of property and equipment
                           
1
     
17
 
Purchase of property and equipment
   
(809
)
   
(2,915
)
   
(1,429
)
   
(3,583
)
   
(5,702
)
Maturities of short-term deposits
   
500
     
-
     
500
     
2,000
     
7,182
 
Cash flows provided by (used in) investing activities
 
$
(508
)
 
$
(2,811
)
 
$
(1,251
)
 
$
(1,618
)
 
$
594
 
                                         
CASH FLOWS FROM FINANCING ACTIVITIES:
                                       
Realization of contingency
   
-
     
-
     
-
     
-
     
(500
)
Payment of cash dividend
   
(3,000
)
   
-
     
(3,000
)
   
-
     
(3,000
)
 Exercise of options
   
-
     
-
     
-
     
130
     
130
 
Cash flows  provided by (used in) financing activities
 
$
(3,000
)
 
$
-
     
(3,000
)
 
$
130
   
$
(3,370
)
                                         
Net increase (decrease) in cash and cash equivalents
   
(3,717
)
   
(4,129
)
   
(1,337
)
   
(2,985
)
   
2,745
 
                                         
Cash and cash equivalents at beginning of period
   
23,813
     
19,832
     
21,433
     
18,688
     
18,688
 
                                         
Cash and cash equivalents at end of period
 
$
20,096
   
$
15,703
   
$
20,096
   
$
15,703
   
$
21,433
 

11

 
TAT TECHNOLOGIES AND ITS SUBSIDIARIES
 
 RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (NON-GAAP) (UNAUDITED)
(In thousands)
 
   
Three months ended
   
Six months ended
   
Twelve months ended
 
   
June 30,
   
June 30,
   
June 30,
 
   
2017
   
2016
   
2017
   
2016
   
2017
   
2016
 
                                     
Net income (loss)
 
$
611
   
$
(2,453
)
 
$
1,812
   
$
(2,408
)
 
$
4,282
   
$
767
 
Adjustments:
                                               
Share in results and sale of equity investment of affiliated companies
   
86
     
14
     
106
     
14
     
147
     
268
 
Taxes on income
   
535
     
2,722
     
1,033
     
2,908
     
1,990
     
2,770
 
Financial expenses, net
   
100
     
13
     
272
     
32
     
394
     
132
 
Gain on bargain purchase
   
-
     
-
     
-
     
-
     
-
     
(4,833
)
Depreciation and amortization
   
980
     
880
     
1,949
     
1,731
     
3,854
     
3,297
 
Share based compensation
   
58
     
13
     
115
     
27
     
193
     
50
 
Adjusted EBITDA
 
$
2,370
   
$
1,189
   
$
5,287
   
$
2,304
   
$
10,860
   
$
2,451
 

12

 
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/ Guy Nathanzon
 
   
Guy Nathanzon
 
   
Chief Financial Officer
 

Date: August 13, 2017
 
13