EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1

FOR IMMEDIATE RELEASE

RADA’s Q1 2021 Results: Continued Growth and
Improved Profitability

Revenues of $25.2 million, Net income of $3.8 million & 19% of Adjusted EBITDA

Netanya, Israel, May 11, 2020 – RADA Electronic Industries Ltd. (NASDAQ: RADA & TASE: RADA) announced today its financial results for the quarter ended March 31, 2021.

Highlights of the first quarter of 2021

 •
Quarterly revenues up 67% year-over-year and an 8% increase from the previous quarter to $25.2 million

•
Gross margin improved to 40% compared with 36% in the year-ago quarter

•
Net income of $3.8 million compare with $0.2 million in the year-ago quarter

•
Adjusted EBIDTA of $4.8 million: Adjusted EBITDA margin improved to 19%, compared with 6% in the year-ago quarter and 17% in the previous quarter

•
Quarter-end net cash position of $96.2 million

•
Reiterates 2021 revenues guidance of over $120 million with continued sequential revenue growth throughout 2021.

Management Comments
 
Dov Sella, RADA's Chief Executive Officer commented, “We started 2021 on a positive note, delivering strong growth and improved profitability in line with our expectations. The positive trends in our markets continue to develop quickly, both in the US and more recently on a global basis. In particular, we see growing traction from European and Middle-Eastern markets, which are now materializing for us.“
 
Concluded Mr. Sella, “Given our solid execution and continued order momentum, our confidence has increased and we reiterate our expectation, that we will exceed revenues of $120 million in 2021, with sequential revenue growth throughout the year. This quarter’s profitability margins demonstrate the leverage in our model and we expect to maintain these levels going forward. As the current programs to which we are supplying our radars mature, with our satisfied customers continuing to order from us in larger quantities, combined with the expected orders from  new customers, we anticipate that the growth trend will continue beyond 2021.”
 
2021 First Quarter Summary

Revenues totaled $25.2 million in the quarter compared with revenues of $15.1 million in the first quarter of 2020, an increase of 67%.

Gross profit totaled $10.0 million in the quarter (40% of revenues), an increase of 85% compared to gross profit of $5.4 million in the first quarter of 2020 (36% of revenues).

Operating income was $3.6 million in the quarter compared to operating income of $0.05 million in the first quarter of 2020.

Net income in the quarter was $3.8 million, or $0.08 per share, compared to net income of $0.2 million or $0.00 per share, in the first quarter of 2020.

Adjusted EBITDA was $4.8 million in the quarter compared to adjusted EBITDA of $0.9 million in the first quarter of 2020.
 
As of March 31, 2021, RADA had net cash and cash equivalents of $96.2 million compared to $35.8 million as of year-end 2020.

Investor Conference Call
 
The Company will host a conference call later today, starting at 9am ET (4pm Israel time). Management will host the call and will be available to answer questions after presenting the results.
 
To participate, please call one of the following telephone numbers a few minutes before the start of the call:
 
US:
1-888-723-3164
at 9:00 am Eastern Time
Israel:
03-918-0609
at 4:00 pm Israel Time
International:
+972-3-918-0609
 

A live webcast of the conference call can be accessed from a link on the RADA website at https://www.rada.com/investors

For those unable to participate, the teleconference will be available for replay at the above link on RADA’s website beginning a few hours after the call.

About RADA Electronic Industries Ltd.

RADA is a global defense technology company focused on proprietary radar solutions and legacy avionics systems. The company is a leader in mini-tactical radars, serving attractive, high-growth markets, including critical infrastructure protection, border surveillance, active military protection and counter-drone applications.
 
Contact Information

Company Contact:

Avi Israel (CFO)
Tel: +972-76-538-6200
mrkt@rada.com
www.rada.com
Investor Relations Contact:
Ehud Helft
GK Investor & Public Relations
Tel: +1 646 688 3559
rada@gkir.com

Forward Looking Statements  
 
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such risk uncertainties and other factors include, but are not limited to, changes in general economic conditions, risks in product and technology developments, market acceptance of new products and continuing product demand, level of competition and other factors described in the Company's Annual Report on Form 20-F and other filings with the Securities and Exchange Commission.
 
Information with Regard to non-GAAP Financial Measures
 
The Company presents its financial statements in accordance with U.S. GAAP. RADA’s management uses supplemental non-GAAP financial measures internally to understand, manage and evaluate its business and make operating decisions. Adjusted EBITDA is provided in this press release and the accompanying supplemental information because management believes this non-GAAP measure is useful for investors and financial institutions as it facilitates operating performance comparisons from period to period. As presented in this release, the term Adjusted EBITDA consists of net profit (loss) according to U.S. GAAP, excluding net financing expenses, taxes, depreciation and amortization and non-cash stock-based compensation expenses. Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure. Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including net income and our other GAAP results. Reconciliation between the Company's results on a GAAP and non-GAAP basis is provided in the table below.
 
RECONCILIATION FROM GAAP TO NON-GAAP RESULTS
 
U.S. dollars in thousands
   
Three months ended
March 31,
  
   
2021
    
2020
  
             
Net Income from continued operations
  
$
3,771
    
$
170
  
Financial income, net
    
(218
)
    
(124
)
Depreciation
    
756
      
473
  
Employee non-cash option compensation
    
472
      
281
  
Other non-cash amortization
    
8
      
63
  
                 
Adjusted EBITDA
  
$
4,789
    
$
863
  
 
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data

ASSETS
  
March 31, 2021
    
December 31, 2020
  
   
Unaudited
    
Audited
  
CURRENT ASSETS:
            
Cash and cash equivalents
  
$
96,222
    
$
36,289
  
Restricted deposits
    
567
      
567
  
                 
   Trade receivables
    
15,028
      
14,095
  
Contract assets
    
353
      
756
  
Other accounts receivables and prepaid expenses
    
1,441
      
1,637
  
Inventories
    
26,895
      
28,783
  
                 
Total current assets
    
140,506
      
82,127
  
                 
LONG-TERM ASSETS:
                
Investment in subsidiary
    
3,000
      
-
  
Long-term receivables and other deposits
    
220
      
230
  
Property, plant and equipment, net
    
14,725
      
13,968
  
Operating lease right-of-use assets
    
11,206
      
10,581
  
Total long-term assets
    
29,151
      
24,779
  
                 
Total assets
  
$
169,657
    
$
106,906
  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                
                 
CURRENT LIABILITIES:
                
Short term loan
    
-
      
454
  
Trade payables
    
8,352
      
10,603
  
Other accounts payable and accrued expenses
    
9,491
      
9,855
  
Advances from customers
    
7,642
      
2,323
  
Contract liabilities
    
157
      
232
  
Operating lease short-term liabilities
    
1,969
      
1,885
  
                 
Total current liabilities
    
27,611
      
25,352
  
                 
LONG-TERM LIABILITIES:
                
Accrued severance-pay and other long-term liabilities
    
751
      
789
  
Operating lease long-term liabilities
    
9,117
      
8,732
  
 Total long-term liabilities
    
9,868
      
9,521
  
                 
RADA SHAREHOLDERS' EQUITY
                
Share capital -
                
Ordinary shares of NIS 0.03 par value - Authorized: 100,000,000 shares at March 31, 2021 and December 31, 2020; Issued and outstanding: 49,035,041 at March 31, 2021 and 43,724,446 at December 31, 2020 respectively.
    
488
      
440
  
Additional paid-in capital
    
201,270
      
144,944
  
Accumulated deficit
    
(69,580
)
    
(73,351
)
Total equity
    
132,178
      
72,033
  
                 
Total liabilities and equity
  
$
169,657
    
$
106,906
  

CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except share and per share data

   
Three months ended
March 31,
    
Year ended December 31,
  
   
2021
    
2020
    
2020
  
   
Unaudited
    
Audited
  
                   
Revenues
  
$
25,217
    
$
15,071
    
$
76,217
  
                         
Cost of revenues
    
15,253
      
9,692
      
47,882
  
                         
Gross profit
    
9,964
      
5,379
      
28,335
  
                         
Operating expenses:
                        
                         
   Research and development
    
2,438
      
2,053
      
8,846
  
   Marketing and selling
    
1,426
      
1,160
      
5,017
  
   General and administrative
    
2,547
      
2,120
      
8,972
  
   Net loss from sale of fixed asset
    
-
      
-
      
27
  
                         
Total operating expenses
    
6,411
      
5,333
      
22,862
  
                         
Operating income
    
3,553
      
46
      
5,473
  
                         
Financial income, net
    
218
      
124
      
167
  
                         
Net income
  
$
3,771
    
$
170
    
$
5,640
  
                         
Basic net income per Ordinary share
  
$
0.08
    
$
0.00
    
$
0.13
  
                         
Diluted net income per Ordinary share
  
$
0.08
    
$
0.00
    
$
0.13
  
                         
Weighted average number of Ordinary shares used for computing basic net income per share
    
45,139,553
      
42,679,754
      
43,321,058
  
                         
Weighted average number of Ordinary shares used for computing diluted net income per share
    
47,118,996
      
43,646,623
      
44,565,379