TAT Technologies Reports Record Results for Fiscal Year 2017

GEDERA, Israel, March 27, 2018

Key Financial Highlights:

• Record revenues of $106.5 million for the year ended December 31, 2017, compared with $95.8 million in the year ended December 31, 2016, an 11% growth. Revenues for the fourth quarter were $26.3 million compared with $25.0 million in the comparable quarter last year, a 5% growth.
• Adjusted EBITDA for the year ended December 31, 2017 increased to $9.4 million compared with $7.9 million in the year ended December 31, 2016, an increase of 19%. 2017 adjusted EBITDA is the highest recorded adjusted EBITDA since 2009. Adjusted EBITDA for fourth quarter was $1.6 million compared with $3.1 million in the comparable quarter last year.
• GAAP net income reached $2.4 million, or $0.27 per diluted share in the year ended December 31, 2017, compared with a net income of $0.1 million, or $0.01 per diluted share in the year ended December 31, 2016. GAAP net loss for the fourth quarter was $0.3 million, or $0.03 per diluted share compared with GAAP net income of $1.6 million, or $0.18 per diluted share in fourth quarter of 2016.
• Non-GAAP net income totaled $2.8 million, or $0.31 per diluted share in the year ended December 31, 2017, compared with non-GAAP net income of $2.8 million, or $0.32 per diluted share in the year ended December 31, 2016, and non-GAAP net loss of $0.2 million, or $0.02 per diluted share in the fourth quarter of 2017 compared with non-GAAP net income of $1.8 million, or $0.20 per diluted share in the fourth quarter of 2016.

Mr. Igal Zamir, CEO and President of TAT Technologies stated, "2017 was a record year for TAT Technologies. Our revenues which grew 11% year over year, reached a record high, while adjusted EBITDA grew 19%, the highest recorded adjusted EBITDA since 2009.  These strong record results serve as yet another proof point of our successful growth strategy and effective operational improvement plan.  We are well positioned in our markets and have a strong balance sheet which together serve as the foundation for our long-term growth. We continue to pursue new growth initiatives, both organic and strategic, which we expect will drive our growth in 2018 and beyond."

Mr. Zamir added, "I would like to take this opportunity to thank all of TAT's employees around the world. Their talent, hard work and dedication are key to our ability to successfully implement our growth strategy and create long term value for our shareholders."

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) share in results of equity investment of affiliated companies. Adjusted EBITDA is calculated as net income excluding the impact of: the Company's share in results 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.

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