GlobeNewswire Inc | May 11, 2021 06:29AM EDT

May 11, 2021

NETANYA, Israel, May 11, 2021 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (NASDAQRADA & 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 quarters 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 TimeIsrael: 03-918-0609 at 4:00 pm Israel TimeInternational: +972-3-918-0609

A live webcast of the conference call can be accessed from a link on the RADA website at

For those unable to participate, the teleconference will be available for replay at the above link on RADAs 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: Investor Relations Contact:Avi Israel (CFO) Ehud HelftTel: +972-76-538-6200 GK Investor & Public Relationsmrkt@rada.com Tel: +1 646 688 3559www.rada.com 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. RADAs 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 SHEETSU.S. dollars in thousands, except share and per share data

ASSETS March 31, December 31, 2021 2020

Unaudited Audited

CURRENT ASSETS:

Cash and cash $ $ 36,289equivalents 96,222

Restricted deposits 567 567

Trade receivables 15,028 14,095

Contract assets 353 756

Other accountsreceivables and prepaid 1,441 1,637 expenses

Inventories 26,895 28,783

Total current assets 140,506 82,127

LONG-TERM ASSETS:

Investment in subsidiary 3,000 -

Long-term receivables 220 230and other deposits

Property, plant and 14,725 13,968equipment, net

Operating lease 11,206 10,581right-of-use assets

Total long-term assets 29,151 24,779

Total assets $ 169,657 $ 106,906

LIABILITIES ANDSHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Short term loan - 454

Trade payables 8,352 10,603

Other accounts payable 9,491 9,855and accrued expenses

Advances from customers 2,323 7,642

Contract liabilities 232 157

Operating lease 1,969 1,885short-term liabilities

Total current 27,611 25,352liabilities

LONG-TERM LIABILITIES:

Accrued severance-pay and other long-term 751 789 liabilities

Operating lease 9,117 8,732long-term liabilities

Total long-term 9,868 9,521liabilities

RADA SHAREHOLDERS'EQUITY

Share capital -

Ordinary shares of NIS0.03 par value -Authorized: 100,000,000shares at March 31, 2021and December 31, 2020; 488 440Issued and outstanding: 49,035,041 at March 31,2021 and 43,724,446 atDecember31, 2020respectively.

Additional paid-in 201,270 144,944capital

Accumulated deficit 69,580) ) (73,351 )

Total equity 132,178 72,033

$ 169,657 $ 106,906 Total liabilities andequity

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

Three months ended Year ended March 31, December 31,

2021 2020 2020

Unaudited Audited

Revenues $ 25,217 $ 15,071 $ 76,217

Cost of 15,253 9,692 47,882revenues

Gross profit 5,379 28,335 9,964

Operatingexpenses:

Research 2,438 2,053 8,846and development

Marketing and 1,426 1,160 5,017selling

Generaland 2,547 2,120 8,972administrative

Net lossfrom sale of - - 27fixed asset

Total operating 5,333 22,862expenses 6,411

Operating 46 5,473income 3,553

124 167Financial 218 income, net

Net income $ 3,771 $ $ 5,640 170

$ 0.08 $ 0.00 $ 0.13Basic netincome perOrdinary share

Diluted net $ 0.08 $ 0.00 $ 0.13income perOrdinary share

Weightedaverage numberof Ordinaryshares used for 45,139,553 42,679,754 43,321,058computing basicnet income pershare

Weightedaverage numberof Ordinaryshares used for 47,118,996 43,646,623 44,565,379computingdiluted netincome pershare