Exhibit 99.1
FOR IMMEDIATE RELEASE
RADA Reports Q1 2022 Results & Reaffirms Full Year Guidance
In view of US market recovery after prolonged Continuing Resolution, RADA reaffirms
its revenue guidance of $140 million in 2022
Netanya, Israel, May 10, 2022 – RADA Electronic Industries Ltd. (NASDAQ: RADA & TASE: RADA) announced today its
financial results for the quarter ended March 31, 2022.
Highlights of the first quarter of 2022
| • |
The financial results were significantly impacted by the over 5-month US budget delay and the Continuing Resolution (CR) with respect to government appropriations to federal agencies which ended March 11, 2022;
|
| • |
Strong bookings of over $29 million, represents over-22% year-over-year growth in new business;
|
| • |
Quarterly revenues amounted to $22.5 million;
|
| • |
Net loss of $0.7 million compared with net income of $3.8 million in Q1 2021;
|
| • |
Adjusted EBIDTA of $1.3 million;
|
| • |
Quarter-end net cash position of $65.9 million;
|
| • |
Management reiterates 2022 revenue guidance of over $140 million.
|
Management Comments
Dov Sella, RADA's Chief Executive Officer commented, “The peak of the impact of the US CR was in the first quarter and significant US revenues were pushed out
to later in the current year. However, after 15 quarters of strong sequential growth, the CR, which is now behind us, was a temporary impact that did not change the bigger picture. Our strong cash position allowed us to continue to produce, invest,
acquire inventory and recruit people according to our plans and given the opportunity ahead of us, we did not pause for a moment. The ending of the CR and the strong bookings already received in Q1, should provide for a strong recovery in the
upcoming quarters, and we expect to maintain our normal margin profile and cash generation for 2022. Thus, our guidance expectations for 2022 remain unchanged. Recent developments have made us even more optimistic than we were at the start of 2022.
The unfortunate war in Europe, which has led to a global awakening to the need for active defense solutions (VSHORAD, C-UAS, APS) much sooner than previously foreseen, will no doubt strongly benefit our business over the near future.”
2022 First Quarter Summary
Revenues totaled $22.5 million in the quarter compared with revenues of $25.2 million in the first quarter of 2021, a decrease of 11%.
Gross profit totaled $7.3 million in the quarter (33% of revenues), a decrease of 26% compared to gross profit of $10 million in the first quarter of 2021 (40%
of revenues).
Operating Loss was $0.86 million in the quarter compared to operating income of $3.6 million in the first quarter of 2021.
Net loss in the quarter was $0.68 million, or $0.01 per share compared to net income of $3.8 million or $0.08 per share, in the first quarter of 2021.
Adjusted EBITDA was $1.3 million in the quarter compared to adjusted EBITDA of $4.8 million in the first quarter of 2021.
As of March 31, 2022, RADA had net cash and cash equivalents of $65.9 million compared to $78.8 million as of year-end 2021.
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:
|
03-918-0610
|
at 4:00 pm Israel Time
|
|
| International: |
+972-3-918-0610 |
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 which include active military protection (SHORAD, C-RAM), counter-UAS missions, critical infrastructure protection and border surveillance.
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 NET INCOME (LOSS) TO ADJUSTED EBITDA
U.S. dollars in thousands
|
Three months ended
March 31,
|
||||||||
|
2022
|
2021
|
|||||||
|
Net income (loss)
|
$
|
(685
|
)
|
$
|
3,771
|
|||
|
Tax benefit
|
(163
|
)
|
-
|
|||||
|
Financial income, net
|
(12
|
)
|
(218
|
)
|
||||
|
Depreciation
|
1,191
|
756
|
||||||
|
Employee non-cash option compensation
|
867
|
472
|
||||||
|
Other non-cash amortization
|
81
|
8
|
||||||
|
Adjusted EBITDA
|
$
|
1,279
|
$
|
4,789
|
||||
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
|
|
March 31,
2022
|
December 31,
2021
|
||||||
|
Unaudited
|
Audited
|
|||||||
| ASSETS | ||||||||
|
CURRENT ASSETS:
|
||||||||
|
Cash and cash equivalents
|
$
|
65,936
|
$
|
78,746
|
||||
|
Restricted deposits
|
492
|
492
|
||||||
|
Trade receivables
|
31,418
|
32,747
|
||||||
|
Contract assets
|
1,251
|
930
|
||||||
|
Other accounts receivables and prepaid expenses
|
3,216
|
1,946
|
||||||
|
Inventories, net
|
59,303
|
48,882
|
||||||
|
Total current assets
|
161,616
|
163,743
|
||||||
|
LONG-TERM ASSETS:
|
||||||||
|
Equity investments in privately-held company
|
3,000
|
3,000
|
||||||
|
Long-term receivables and other deposits
|
250
|
244
|
||||||
|
Property, plant and equipment, net
|
19,951
|
19,888
|
||||||
|
Deferred tax assets
|
6,728
|
5,681
|
||||||
|
Operating lease right-of-use assets
|
14,233
|
11,287
|
||||||
|
Total long-term assets
|
44,162
|
40,100
|
||||||
|
Total assets
|
$
|
205,778
|
$
|
203,843
|
||||
|
CURRENT LIABILITIES:
|
||||||||
|
Trade payables
|
17,515
|
19,890
|
||||||
|
Other accounts payable and accrued expenses
|
14,188
|
13,445
|
||||||
|
Advances from customers
|
1,538
|
1,763
|
||||||
|
Contract liabilities
|
358
|
474
|
||||||
|
Operating lease short-term liabilities
|
2,815
|
2,262
|
||||||
|
Total current liabilities
|
36,414
|
37,834
|
||||||
|
LONG-TERM LIABILITIES:
|
||||||||
|
Operating lease long-term liabilities
|
11,453
|
9,160
|
||||||
|
Deferred tax liabilities
|
884
|
-
|
||||||
|
Accrued severance-pay and other long-term liabilities
|
782
|
783
|
||||||
|
Total long-term liabilities
|
13,119
|
9,943
|
||||||
|
RADA SHAREHOLDERS' EQUITY
|
||||||||
|
Share capital -
|
||||||||
|
Ordinary shares of NIS 0.03 par value - Authorized: 100,000,000 shares on March 31, 2022 and December 31, 2021; Issued and outstanding: 49,681,991 at March 31, 2022 and
49,402,847 on December 31, 2021 respectively.
|
494
|
489
|
||||||
|
Additional paid-in capital
|
204,713
|
203,854
|
||||||
|
Accumulated deficit
|
(48,962
|
)
|
(48,277
|
)
|
||||
|
Total equity
|
156,245
|
156,066
|
||||||
|
Total liabilities and equity
|
$
|
205,778
|
$
|
203,843
|
||||
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except share and per share data
|
Three months ended
March 31,
|
Year ended December 31,
|
|||||||||||
|
2022
|
2021
|
2021
|
||||||||||
|
Unaudited
|
Audited
|
|||||||||||
|
Revenues
|
$
|
22,507
|
$
|
25,217
|
$
|
117,236
|
||||||
|
Cost of revenues
|
15,164
|
15,253
|
69,691
|
|||||||||
|
Gross profit
|
7,343
|
9,964
|
47,545
|
|||||||||
|
Operating expenses:
|
||||||||||||
|
Research and development
|
2,854
|
2,438
|
10,014
|
|||||||||
|
Marketing and selling
|
1,883
|
1,426
|
6,235
|
|||||||||
|
General and administrative
|
3,466
|
2,547
|
10,933
|
|||||||||
|
Net loss from sale of fixed asset
|
-
|
-
|
5
|
|||||||||
|
Total operating expenses
|
8,203
|
6,411
|
27,187
|
|||||||||
|
Operating income (loss)
|
(860
|
)
|
3,553
|
20,358
|
||||||||
|
Financial income (expenses), net
|
12
|
218
|
(159
|
)
|
||||||||
|
Income before taxes
|
(848
|
)
|
3,771
|
20,199
|
||||||||
|
Tax benefit
|
163
|
-
|
4,875
|
|||||||||
|
Net income (loss)
|
$
|
(685
|
)
|
$
|
3,771
|
$
|
25,074
|
|||||
|
Basic net income (loss) per Ordinary share
|
$
|
(0.01
|
)
|
$
|
0.08
|
$
|
0.52
|
|||||
|
Diluted net income (loss) per Ordinary share
|
$
|
(0.01
|
)
|
$
|
0.08
|
$
|
0.50
|
|||||
|
Weighted average number of Ordinary shares used for computing basic net income (loss) per share
|
49,472,220
|
45,139,553
|
48,255,097
|
|||||||||
|
Weighted average number of Ordinary shares used for computing diluted net income (loss) per share
|
51,042,267
|
47,118,996
|
50,077,416
|
|||||||||