Form 6-K RADA ELECTRONIC INDUSTRI For: May 11
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 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
May 2021
RADA ELECTRONIC INDUSTRIES LIMITED
(Name of Registrant)
7 Giborei Israel Street, Netanya 4250407, 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- ____________
RADA ELECTRONIC INDUSTRIES LTD.
EXPLANATORY NOTE
The following exhibit is attached:
99.1
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Press Release: RADA Electronic Industries Announces Q1 2021 Results
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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.
RADA Electronic Industries Ltd.
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|||
(Registrant)
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|||
By:
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/s/ Dov Sella
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||
Dov Sella
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|||
Chief Executive Officer
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Date: May 11, 2021
EXHIBIT INDEX
EXHIBIT
NO.
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DESCRIPTION
|
|
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:
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1-888-723-3164
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at 9:00 am Eastern Time
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Israel:
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03-918-0609
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at 4:00 pm Israel Time
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International:
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+972-3-918-0609
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|
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
www.rada.com
|
Investor Relations Contact:
Ehud Helft
GK Investor & Public Relations
Tel: +1 646 688 3559
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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
|
$
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4,789
|
$
|
863
|
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
ASSETS
|
March 31, 2021
|
December 31, 2020
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||||||
Unaudited
|
Audited
|
|||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
96,222
|
$
|
36,289
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||||
Restricted deposits
|
567
|
567
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||||||
Trade receivables
|
15,028
|
14,095
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||||||
Contract assets
|
353
|
756
|
||||||
Other accounts receivables and prepaid expenses
|
1,441
|
1,637
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||||||
Inventories
|
26,895
|
28,783
|
||||||
Total
current assets
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140,506
|
82,127
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||||||
LONG-TERM ASSETS:
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||||||||
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
|
$
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169,657
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$
|
106,906
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||||
LIABILITIES AND SHAREHOLDERS' EQUITY
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||||||||
CURRENT LIABILITIES:
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||||||||
Short term loan
|
-
|
454
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||||||
Trade payables
|
8,352
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10,603
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||||||
Other accounts payable and accrued expenses
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9,491
|
9,855
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||||||
Advances from customers
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7,642
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2,323
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||||||
Contract liabilities
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157
|
232
|
||||||
Operating lease short-term liabilities
|
1,969
|
1,885
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||||||
Total
current liabilities
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27,611
|
25,352
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||||||
LONG-TERM LIABILITIES:
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||||||||
Accrued severance-pay and other long-term liabilities
|
751
|
789
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||||||
Operating lease long-term liabilities
|
9,117
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8,732
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||||||
Total long-term
liabilities
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9,868
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9,521
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||||||
RADA SHAREHOLDERS' EQUITY
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||||||||
Share capital -
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||||||||
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
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||||||
Additional paid-in capital
|
201,270
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144,944
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||||||
Accumulated deficit
|
(69,580
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)
|
(73,351
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)
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||||
Total
equity
|
132,178
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72,033
|
||||||
Total
liabilities and equity
|
$
|
169,657
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$
|
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
|
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