Revenues of $25.2 million, Net income of $3.8 million & 19% of Adjusted EBITDA
Netanya, Israel, May 11, 2020 – RADA Electronic Industries Ltd. (NASDAQ: RADA & 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.
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 quarter’s 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 Time
Israel: 03-918-0609 at 4:00 pm Israel Time
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, including critical infrastructure protection, border surveillance, active military protection and counter-drone applications.