RADA Reports Record Q2/2020 Results and Increases 2020 Revenue Guidance to $70 Million
NETANYA, Israel, Aug. 11, 2020 /PRNewswire/ -- RADA Electronic Industries Ltd. (NASDAQ: RADA) announced today its financial results for the three and six months periods ended June 30, 2020.
Highlights of the second quarter of 2020
- Quarterly revenues up
75% year-over-year to a record$17.5 million - Net income of
$0.7 million and Adjusted EBITDA of$1.75 million –10% of revenue - 2020 revenue guidance increased to over
$70 million , implying over58% growth year-over-year, with continued sequential revenue growth throughout the remainder of the year - US manufacturing facility at full operation to supply US market demand.
Management Comments
Dov Sella, RADA's Chief Executive Officer commented, "We are very pleased with our results and the positive momentum in our business, which led to a significant
Continued Mr. Sella, "Our radars enable life-saving active protection solutions for advanced military tactical forces and critical infrastructure, and are in the heart of current modernization programs, especially in the USA. The strong demand for our radars is being driven by significant and urgent counter-UAV, SHORAD and C-RAM needs in the US and other geographies. Our orders in-hand have enabled us to increase our 2020 revenue guidance to over
2020 Second Quarter Summary
Revenues totaled
Gross profit totaled
Operating income was
Net income attributable to RADA's shareholders in the quarter was
Adjusted EBITDA was
2020 First Half Summary
Revenues totaled
Gross profit totaled
Operating income was
Adjusted EBITDA was
Net income attributable to RADA's shareholders in the first half was
As of June 30, 2020, RADA had net cash and cash equivalents of
Investor Conference Call
The Company will host a conference call later today, starting at 9:00 am ET (4pm Israel time). Management will host the call and will be available to answer questions after presenting the results.
Dial in numbers are: US 1-888-281-1167; Israel 03-918-0644 and International +972-3-918-0644.
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 5-10 minutes prior to the call at RADA's website: https://www.rada.com/corp/corporate-ir.html following which, a link to the live webcast will be sent to you.
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 active military protection, counter-UAS, critical infrastructure protection and border surveillance.
Contact Information
Company Contact: Avi Israel (CFO) Tel: +972-9-892-1111
| Investor Relations Contact:
Ehud Helft GK Investor & Public Relations Tel: +1 646 688 3559
|
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, the impact of COVID-19 on our company and our industry, 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 | |||||||
Six months ended | Three months ended | Year ended December 31, | |||||
2020 | 2019 | 2020 | 2019 | 2019 | |||
(Unaudited) | Audited | ||||||
Operating Income (loss) | $ 680 | $ (1,401) | $ 634 | $ (843) | $ (2,103) | ||
Depreciation | 1,014 | 540 | 541 | 281 | 1,301 | ||
Non-cash stock-based |
682 |
560 |
401 |
288 |
1,150 | ||
Other non-cash |
232 |
6 |
169 |
6 |
59 | ||
Adjusted EBITDA | $ 2,608 | $ (295) | $ 1,745 | $ (268) | $ 407 | ||
CONSOLIDATED BALANCE SHEETS | ||||
ASSETS | June 30, | December 31, | ||
Unaudited | Audited | |||
CURRENT ASSETS: | ||||
Cash and cash equivalents | $ 29,908 | $ 13,754 | ||
Restricted cash | 495 | 380 | ||
Trade receivables | 18,933 | 13,765 | ||
Contract assets | 1,045 | 1,269 | ||
Other receivables and prepaid expenses | 2,412 | 1,673 | ||
Inventories | 26,474 | 17,196 | ||
Total current assets | 79,267 | 48,037 | ||
LONG-TERM ASSETS: | ||||
Long-term receivables and other deposits | 63 | 97 | ||
Property, plant and equipment, net | 11,282 | 9,127 | ||
Operating lease right-of-use asset | 7,585 | 7,654 | ||
Total long-term assets | 18,930 | 16,878 | ||
Total assets | $ 98,197 | $ 64,915 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
CURRENT LIABILITIES: | ||||
Short term loan | $ 455 | $ - | ||
Trade payables | 15,756 | 7,661 | ||
Other accounts payable and accrued expenses | 6,378 | 5,572 | ||
Advances from customers, net | 751 | 1,563 | ||
Contract liabilities | 6 | 196 | ||
Operating lease short-term liabilities | 1,594 | 1,240 | ||
Total current liabilities | 24,940 | 16,232 | ||
LONG-TERM LIABILITIES: | ||||
Accrued severance pay and other long-term liabilities | 668 | 764 | ||
Operating lease long-term liabilities | 6,073 | 6,499 | ||
Total long-term liabilities | 6,741 | 7,263 | ||
RADA SHAREHOLDERS' EQUITY | ||||
Share capital - | ||||
Ordinary shares of NIS 0.03 par value - Authorized: 100,000,000 shares at June | 437 | 394 | ||
Additional paid-in capital | 145,388 | 121,212 | ||
Accumulated other comprehensive income | (1,195) | (1,195) | ||
Accumulated deficit | (78,114) | (78,991) | ||
Total RADA shareholders' equity | 66,516 | 41,420 | ||
Total liabilities and equity | $ 98,197 | $ 64,915 | ||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
Six months ended |
Three months ended |
Year ended | |||||
2020 | 2019 | 2020 | 2019 | 2019 | |||
(Unaudited) | Audited | ||||||
Revenues | $ 32,577 | $ 18,714 | $ 17,506 | $ 10,027 | $ 44,331 | ||
Cost of revenues | 20,980 | 11,975 | 11,288 | 6,441 | 28,394 | ||
Gross profit | 11,597 | 6,739 | 6,218 | 3,586 | 15,937 | ||
Operating expenses: | |||||||
Research and development | 4,239 | 3,040 | 2,186 | 1,674 | 6,912 | ||
Marketing and selling | 2,385 | 1,870 | 1,225 | 988 | 4,044 | ||
General and administrative | 4,293 | 3,230 | 2,173 | 1,767 | 7,084 | ||
Total operating expenses: | 10,917 | 8,140 | 5,584 | 4,429 | 18,040 | ||
Operating income (loss) | 680 | (1,401) | 634 | (843) | (2,103) | ||
Other financial (expenses) income, net |
197 |
43 | 73 |
1 | (121) | ||
Net income (loss) from continuing | 877 |
(1,358) | 707 |
(842) | (2,224) | ||
Net loss from discontinued operations | - |
- | - |
- | (115) | ||
Net income (loss) | 877 |
(1,358) | 707 |
(842) | (2,339) | ||
Net loss attributable to non-controlling | - |
309 | - |
278 | 309 | ||
Net income (loss) attributable to RADA | $ 877 |
$ (1,049) | $ 707 |
$ (564) | $ (2,030) | ||
Basic and diluted net income (loss) | $ 0.02 |
$ (0.03) | $ 0.02 |
$ (0.01) | $ (0.05) | ||
Basic and diluted net loss from | $ 0.00 | $ 0.00 | $ 0.00 | $ 0.00 | $ (0.05) | ||
Basic net income (loss) per ordinary | $ 0.02 | $ (0.03) | $ 0.02 | $ (0.01) | $ (0.05) | ||
Diluted net income (loss) per ordinary | $ 0.02 |
$ (0.03) | $ 0.02 |
$ (0.01) | $ (0.05) | ||
Weighted average number of ordinary |
43,041,405 |
38,017,281 | 43,403,276 |
38,067,024 |
38,148,756 | ||
Weighted average number of ordinary | 44,002,634 |
38,570,290 | 44,302,325 |
38,680,072 | 38,841,866 | ||
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SOURCE RADA
