TAT Technologies Ltd. Files 20-F Annual Report for Fiscal Year 2023

TL;DR

<b>TAT Technologies Ltd. filed its 20-F annual report, detailing inventory, asset write-offs, and significant grants received.</b>

AI Summary

TAT TECHNOLOGIES LTD (TATT) filed a Foreign Annual Report (20-F) with the SEC on March 6, 2024. Spare parts inventory for Rotables was $8.193 million in 2022 and $8.623 million in 2021. Investment in machinery was offset by a $2.7 million grant from the State of Oklahoma. TAT Limco is eligible for further incentives including grants and tax exemptions over the next 10 years. The company wrote off $1.4 million in total assets during 2020. In 2021, the company recovered and sold $529,000 of previously written-off accounts receivable and inventory.

Why It Matters

For investors and stakeholders tracking TAT TECHNOLOGIES LTD, this filing contains several important signals. The filing provides a year-end overview of the company's financial position, including inventory levels and asset disposals. Information on grants and incentives from the State of Oklahoma highlights potential future financial benefits and operational support.

Risk Assessment

Risk Level: low — TAT TECHNOLOGIES LTD shows low risk based on this filing. The filing is primarily an annual report with historical financial data and does not contain significant forward-looking statements or immediate operational changes that would indicate high risk.

Analyst Insight

Review the detailed financial statements and disclosures within the 20-F filing to understand the company's asset management and grant-related benefits.

Key Numbers

• 8,193,000 — Rotables Inventory (Year ended December 31, 2022)
• 8,623,000 — Rotables Inventory (Year ended December 31, 2021)
• 2,700,000 — Grant from State of Oklahoma (Offsetting investment in machinery)
• 1,400,000 — Assets Written Off (During 2020)
• 529,000 — Recovered Assets (From written-off accounts receivable and inventory in 2021)

Key Players & Entities

• TAT TECHNOLOGIES LTD (company) — Filer
• State of Oklahoma (company) — Grantor
• TAT Limco (company) — Recipient of incentives
• $8,193,000 (dollar_amount) — Rotables inventory in 2022
• $8,623,000 (dollar_amount) — Rotables inventory in 2021
• $2.7 million (dollar_amount) — Grant received from State of Oklahoma
• $1.4 million (dollar_amount) — Total assets written off in 2020
• $529,000 (dollar_amount) — Recovered from written-off assets in 2021

FAQ

Industry Context

The company operates in the aircraft engines and engine parts industry.

Regulatory Implications

The filing is a Form 20-F, which is an annual report required by the U.S. Securities and Exchange Commission for foreign private issuers.

What Investors Should Do

1. Analyze the specific terms and conditions of the grant from the State of Oklahoma.
2. Review the company's inventory management practices for Rotables.
3. Investigate the reasons behind the $1.4 million asset write-off in 2020.

Year-Over-Year Comparison

This filing is the 20-F for the fiscal year ended December 31, 2023, providing updated financial information compared to previous filings.

Filing Documents

• zk2431093.htm (20-F) — 3221KB
• exhibit_8.htm (EX-8) — 5KB
• exhibit_12-1.htm (EX-12.1) — 8KB
• exhibit_12-2.htm (EX-12.2) — 8KB
• exhibit_13-1.htm (EX-13.1) — 5KB
• exhibit_13-2.htm (EX-13.2) — 5KB
• exhibit_14-1.htm (EX-14.1) — 5KB
• exhibit_97.htm (EX-97.CLAWBACKPOLICY) — 33KB
• image00002.jpg (GRAPHIC) — 6KB
• image0.jpg (GRAPHIC) — 21KB
• image1.jpg (GRAPHIC) — 4KB
• 0001178913-24-000845.txt (&nbsp;) — 14101KB
• tatt-20231231.xsd (EX-101.SCH) — 89KB
• tatt-20231231_cal.xml (EX-101.CAL) — 91KB
• tatt-20231231_def.xml (EX-101.DEF) — 290KB
• tatt-20231231_lab.xml (EX-101.LAB) — 878KB
• tatt-20231231_pre.xml (EX-101.PRE) — 503KB
• zk2431093_htm.xml (XML) — 2873KB

Item 18

Item 17 Item 18 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No TABLE OF CONTENTS Page INTRODUCTION 1 PART I 3 Item 1. Identity of Directors, Senior Management and Advisers 3 Item 2. Offer Statistics and Expected Timetable 3 Item 3. Key Information 3 A.

Selected Financial Data

Selected Financial Data 3 B. Capitalization and Indebtedness 3 C. Reasons for the Offer and Use of Proceeds 3 D.

Risk Factors

Risk Factors 3 Item 4. Information on the Company 16 A. Business Overview 17 B. Government Regulations 33 C. Property, Plants and Equipment 34 Item 4A. Unresolved Staff Comments 36 Item 5 Operating and Financial Review and Prospects 36 A. Research and Development, Patents and Licenses 50 B. Trend Information 50 C. Off-Balance Sheet Arrangements 50 D. Tabular Disclosure of Contractual Obligations 50 Item 6. Directors, Senior Management and Employees 51 A. Directors and Senior Management 51 B. Compensation 53 C. Board Practices 55 D. Employees 64 E. Share Ownership 65 F. Disclosure of a Registrant's Action to Recover Erroneously Awarded Compensation 66 Item 7. Major Shareholders and Related Party Transactions 67 A. Major Shareholders 67 B. Related Party Transactions 68 C. Interests of Experts and Counsel 69 Item 8. Financial Information 69 A. Consolidated Statements and Other Financial Information 69 B. Significant Changes 69 Item 9. The Offer and Listing 70 A. Offer and Listing Details 70 B. Plan of Distribution 70 C. Markets 70 D. Selling Shareholders 70 E.

Dilution

Dilution 70 F. Expense of the Issue 70 Item 10. Additional Information 70 A. Share Capital 70 B. Memorandum and Articles of Association 70 C. Material Contracts 71 D. Exchange Controls 72 E. Taxation 72 F. Dividends and Paying Agents 81 G. 81 H. Documents on Display 81 I. Subsidiary Information 82 Item 11.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 82 Item 12.

Description of Securities Other than Equity Securities

Description of Securities Other than Equity Securities 82 PART II 83 Item 13. Defaults, Dividend Arrearages and Delinquencies 83 Item 14. Material Modifications to the Rights of Security Holders 83 Item 15.

Controls and Procedures

Controls and Procedures 83 Item 16. [Reserved] 84 Item 16A. Audit Committee Financial Expert 84 Item 16B. Code of Ethics 84 Item 16C. Principal Accountants Fees and Services 85 Item 16D. Exemptions from the Listing Standards for Audit Committee 85 Item 16E. Purchase of Equity Securities By Issuer and Affiliated Purchases 86 Item 16F. Change in Registrant's Certifying Accountant . 86 Item 16G. Corporate Governance . 86 Item 16H. Mine Safety Disclosure 87 Item 16I. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 87 Item 16K. Cybersecurity 87 PART III 88 Item 17.

Financial Statements

Financial Statements 88 Item 18.

Financial Statements

Financial Statements 88 Item 19. Exhibits 88 INTRODUCTION TAT Technologies Ltd. is a leading provider of solutions and services to the aerospace and defense industries, focused mainly on two product areas and services: Thermal Management and Power and Actuation. The Company operates four operational units: (i) original equipment manufacturing ("OEM") of heat transfer solutions and aviation accessories through its Kiryat Gat facility (TAT Israel); (ii) maintenance repair and overhaul ("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 (mainly APU and LG); and (iv) overhaul and coating of jet engine components through its Turbochrome subsidiary. TAT targets the commercial aerospace (serving a wide range of types and sizes of commercial and business jets), military aerospace and ground defense sectors. TAT has a global presence with over 500 customers worldwide, including tier one players in their respective markets such as Boeing, Embraer, Lockheed Martin, Collins, Liebherr, Pratt & Whitney (a division of Collins), the U.S. Armed Forces, and service centers of airlines such as American Airlines, Lufthansa and others. TAT enjoys a strong reputation among its customers for quality and service-oriented approach. As a leading provider in its market, TAT's business is supported by an extensive number of certifications, including from the American, European, British and Chinese civil aviation authorities, as well as leading manufactures such as Boeing and Honeywell International. TAT employed as of December 31, 2023 491 employees and operates in three locations: its facility in Kiryat Gat, Israel ("TAT Israel" and "Turbochrome"); Limco Airepair Inc. ("Limco") in Tulsa, Oklahoma; Piedmont Aviation Component Services LLC ("Piedmont") in Greensboro, North Carolina; the Company's Headquarters in Netanya Israel and a strategic sales o

Identity

Item 1. Identity of Directors, Senior Management and Advisers Not applicable.

Offer

Item 2. Offer Statistics and Expected Timetable Not applicable.

Key

Item 3. Key Information A. Reserved B. Capitalization and Indebtedness Not applicable. C. Reasons for the Offer and Use of Proceeds Not applicable. D. Risk Factors Investing in our ordinary shares involves certain risks and uncertainties. You should carefully consider the risks and uncertainties described below before investing in our ordinary shares. Our business, prospects, financial condition and results of operations could be adversely affected due to any of the following risks. In that case, the value of our ordinary shares could decline, and you could lose all or part of your investment. 3 Risks Related to Our Business and Our Industry The aerospace industry is subject to significant regulation and oversight, and TAT and its subsidiaries may incur significant fines, penalties and costs if TAT and its subsidiaries do not comply with these regulations. TAT competes with a number of established companies in all aspects of TAT's business, many of which have significantly greater resources or capabilities than TAT. TAT derives a material share of its revenues from few major customers. If TAT loses any of these customers or they reduce the amount of business they do with TAT, TAT's revenues may be seriously affected. A part of the revenues of TAT and its subsidiaries are from contracts with the U.S. and Israeli governments and are subject to special risks. A loss of all, or a major portion, of these revenues from government contracts could have a material adverse effect on TAT's operations. If TAT and its subsidiaries do not receive the governmental approvals necessary for the export of their products, TAT's revenues may decrease. Similarly, if TAT's suppliers and partners do not receive their government approvals necessary to export their products or designs to TAT, TAT's revenues may decrease. TAT depends on a limited number of suppliers of components for certain of its products and if TAT or any of its subsidiaries are unable to obtain these

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View this 20-F filing on SEC EDGAR