6-K

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

November 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): ☐

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.

(Registrant)

By: /s/Dov Sella

Dov Sella

Chief Executive Officer

Date: November 3, 2021

EXHIBIT NO.	DESCRIPTION
99.1	Press Release: RADA Electronic Industries Ltd. (NASDAQ: RADA, TASE: RADA) announced today its financial results for the three-month and nine-month periods ended September 30, 2021.

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

RADA Reports Adjusted EBITDA growth of 162% YoY Reaching $8.2 million in its Record Q3/2021 Results

Revenues of $32 million, up 57% YoY and net income of $6 million, up 184% YoY

Netanya, Israel, November 3, 2021 – RADA Electronic Industries Ltd. (NASDAQ: RADA, TASE: RADA) announced today its financial results for the three-month and nine-month periods ended September 30, 2021.

Highlights of the third quarter of 2021

• Quarterly revenues up 57% year-over-year and a sequential 13% increase to $32 million

• Strong gross margin improvement to 41% compared with 38% in the year-ago quarter

• Operating profit more than tripled to $6.3 million compared with $2.0 million in the year-ago quarter

• Net income of $6.0 million, up 184% compared with $2.1 million in the year-ago quarter

• Adjusted EBITDA of $8.2 million, an increase of 162% compared to $3.1 million in the year ago quarter and $6.3 million in the prior quarter

• Adjusted EBITDA margin improved to 26% compared with 15% in the year-ago quarter and 22% in the prior quarter

• Quarter-end net cash position of $86.6 million

Management Comments

Dov Sella, RADA's Chief Executive Officer commented, “We are very happy with our record financial performance and strong growth this quarter. The 57% year-over-year growth in revenue as well as the consistent improvement in our gross and operating margins, led to a 162% year-over-year growth in our Adjusted EBITDA and demonstrates the solid operating leverage within our business model.”

Continued Mr. Sella, “Our pipeline continues to strengthen, becoming deeper and broader. As the world starts to adjust to working under the Covid situation, we expect to be able to penetrate more quickly into new accounts globally. In the US, as has been widely reported, the new federal government has not been able yet to pass the budget and is operating under a continuing resolution of last year’s budget, leading to delays and lack of certainty in the short-term. While this phase of US budget adjustment is making it more challenging, at RADA, we are accustomed and well positioned to work under short timelines and urgent-need book-and-ship deliveries. Over the past year, we have strategically increased our inventory quite substantially to ensure we can maintain this significant competitive edge. All in all, we reiterate our expectations to surpass $120 million in revenue for 2021, representing a substantial 57% year-over-year revenue growth and with strong operating leverage supporting our ability to grow our EBITDA profitability beyond the current level.”

2021 Third Quarter Summary

Revenues totaled $32.0 million in the quarter compared with revenues of $20.4 million in the third quarter of 2020, an increase of 57%.

Gross profit totaled $13.2 million in the quarter (41% of revenues), an increase of 71% compared to gross profit of $7.8 million in the third quarter of 2020 (38% of revenues).

Operating income was $6.3 million in the quarter compared to operating income of $2.0 million in the third quarter of 2020.

Net income was $6.0 million, or $0.12 per share, compared to net income of $2.1 million, or $0.05 per share, in the third quarter of 2020.

Adjusted EBITDA was $8.2 million in the quarter compared to adjusted EBITDA of $3.1 million in the third quarter of 2020.

2021 First nine months Summary

Revenues totaled $85.5 million in the first nine months of 2021 compared with revenues of $52.9 million in the first nine months of 2020, an increase of 61%.

Gross profit totaled $34.5 million in the first nine months (40% of revenues), an increase of 78% compared to gross profit of $19.4 million in the first nine months of 2020 (37% of revenues).

Operating income was $14.3 million in the first nine months of 2021 compared to operating income of $2.7 million in the first nine months of 2020.

Net income in the first nine months was $20.3 million, or $0.42 per share, compared to net income of $3.0 million, or $0.07 per share, in the first nine months of 2020.

Adjusted EBITDA was $19.3 million in the first nine months of 2021 compared to adjusted EBITDA of $5.7 million in the first nine months of 2020.

As of September 30, 2021, RADA had net cash and cash equivalents of $86.6 million compared to $35.8 million as of year-end 2020.  In line with the Company’s previously started strategy, inventory levels were increased significantly reaching $38.1 million as of September 30, 2021 compared with $28.8 million as of year-end 2020.

Investor Conference Call

The Company will host a conference call later today, starting at 9:00 am ET (3pm Israel time). Management will host the call and will be available to answer questions after presenting the results.

Dial in numbers are: US 1-888-723-3164; Israel 03-918-0610 and International +972-3-918-0610.

For those unable to participate, the teleconference will be available for replay on RADA’s website at www.rada.com beginning 48 hours after the call.

A live webcast of the conference call will be available. Please register for the webcast a 5-10 minutes prior to the call at RADA’s website: https://www.rada.com/investors following which a link to the live webcast will be sent to you within a short period.

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-drones 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: +1 212 378 8040 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 OPERATING INCOME TO ADJUSTED EBITDA

U.S. dollars in thousands

	Nine months ended September 30,						Three months ended September 30,						Year ended December 31,
	2021			2020			2021			2020			2020
	(Unaudited)												Audited
Income from operations before tax	$	14,487		$	3,002		$	6,310		$	2,126		$	5,640
Financial expenses (income), net		(140	)		(311	)		(18	)		(116	)		(167	)
Depreciation		2,600			1,612			1,001			598			2,289
Employees non-cash option compensation		2,212			1,022			885			340			1,436
Other non-cash amortization		135			409			-			178			476
Adjusted EBITDA	$	19,294		$	5,734		$	8,178		$	3,126		$	9,674

CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands, except share and per share data

	September 30, 2021			December 31, 2020
	Unaudited			Audited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	86,641		$	36,289
Restricted cash		492			567
Trade receivables		28,944			14,095
Contract assets		349			756
Other receivables and prepaid expenses		2,311			1,637
Inventories		38,108			28,783
Total current assets		156,845			82,127
LONG-TERM ASSETS:
Investment in affiliated company		3,000			-
Long-term receivables and other deposits		251			230
Property, plant and equipment, net		16,898			13,968
Deferred tax assets		5,767			-
Operating lease right-of-use assets		12,108			10,581
Total long-term assets		38,024			24,779
Total assets	$	194,869		$	106,906
CURRENT LIABILITIES:
Short term loan	$	-		$	454
Trade payables		19,070			10,603
Other accounts payable and accrued expenses		11,012			9,855
Advances from customers		817			2,323
Contract liabilities		620			232
Operating lease short-term liabilities		2,294			1,885
Total current liabilities		33,813			25,352
LONG-TERM LIABILITIES:
Accrued severance-pay and other long-term liabilities		787			789
Operating lease long-term liabilities		9,834			8,732
Total long-term liabilities		10,621			9,521
RADA SHAREHOLDERS' EQUITY
Share capital -
Ordinary shares of NIS 0.03 par value - Authorized: 100,000,000 shares on September 30, 2021 and December 31, 2020; Issued and outstanding: 49,365,136 on September 30, 2021 and 43,724,446 at December 31, 2020 respectively		488			440
Additional paid-in capital		203,044			144,944
Accumulated deficit		(53,097	)		(73,351	)
Total equity		150,435			72,033
Total liabilities and equity	$	194,869		$	106,906

CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands, except share and per share data

	Nine months ended September 30,				Three months ended September 30,					Year ended December 31,
	2021		2020		2021			2020		2020
	(Unaudited)									Audited
Revenues	$	85,476	$	52,936	$	32,004		$	20,359	$	76,217
Cost of revenues		50,992		33,580		18,749			12,598		47,882
Gross profit		34,484		19,356		13,255			7,761		28,335
Operating expenses:
Research and development		7,478		6,468		2,485			2,230		8,846
Marketing and selling		4,609		3,671		1,653			1,286		5,017
General and administrative		8,050		6,526		2,825			2,235		8,972
Net loss from sale of fixed asset		-		-		-			-		27
Total operating expenses:		20,137		16,665		6,963			5,751		22,862
Operating income		14,347		2,691		6,292			2,010		5,473
Other financial income (expenses), net		140		311		18			116		167
Income before taxes		14,487		3,002		6,310			2,126		5,640
Tax income / (expense)		5,767		-		(271	)		-		-
Net income		20,254		3,002		6,039			2,126		5,640
Basic net income per ordinary share	$	0.42	$	0.07	$	0.12		$	0.05	$	0.13
Diluted net income per Ordinary share	$	0.41	$	0.07	$	0.12		$	0.05	$	0.13
Weighted average number of Ordinary shares used for computing basic net income per share		47,874,320		43,209,153		49,307,039			43,541,002		43,321,058
Weighted average number of Ordinary shares used for computing diluted net income per share		49,778,631		44,297,058		51,025,170			44,849,311		44,565,379