RADA Reports Q1 2022 Results & Reaffirms Full Year Guidance
May 10 2022 - 6:40AM
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:
+972-76-538-6200mrkt@rada.comwww.rada.com
|
Investor Relations Contact:Ehud HelftGK
Investor & Public RelationsTel: +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 endedMarch 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
SHEETSU.S. dollars in thousands, except share and
per share data
|
|
|
|
|
ASSETS
|
|
March
31, 2022
|
|
December 31, 2021
|
|
|
Unaudited
|
|
Audited
|
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
|
|
|
|
|
|
|
RADASHAREHOLDERS'
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 endedMarch
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
|
|
|
|
|
|
|
|
|
|
|
|
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