RADA Electronic Industries Ltd. (NASDAQ:RADA)
announced today its financial results for the year and quarter
ended December 31, 2017.
Highlights of 2017
- 2017 was the strongest year in over 20 years, with excellent
financial performance and margins across the board.
- Revenues of $26.2 million (up 104% year-over-year) with Q4
revenues contributing $9 million (up 112%
quarter-over-quarter).
- Net income of $2.2 million and EBITDA of $3.5 million.
- Generated approximately $1 million in operating cash flow;
year-end net cash position of $12.4 million.
Management Comments
Dov Sella, RADA's Chief Executive
Officer commented, “2017 was by far the strongest year in
over two decades. We more than doubled our revenues over last year
and importantly, we returned the business to profitability. We also
had a good year of cash generation and following an investment
earlier in the year, our balance sheet is now strong with over $12
million in net cash and no financial liabilities, providing us with
the capital to support continued growth over the coming years.”
“In the fourth quarter, we completed a major project of radar
sales for counter-UAV systems, with very short-term delivery time
for RADA’s highly strategic U.S. customer. This significantly
boosted our revenues to record levels at over $9 million in the
last quarter, up over 29% versus the prior quarter and more than
double that of last year. We believe our success here will have
strong potential to bring even more significant orders down the
road, especially since the U.S. Army has recently stated that Short
Range Air Defense and Active Protection Systems, have become a
modernization priority.”
Concluded Mr. Sella, “In the near to mid-term,
we are preparing to capitalize on the significant potential ahead
of us, by opening a subsidiary in the United States, while
investing further in our R&D capabilities. Looking to the
coming first quarter of 2018, our ongoing business is strong and we
expect to see revenues growth in the range of 30% over the first
quarter of 2017.”
2017 Fourth Quarter Summary
Revenues totaled $9.1 million in the fourth
quarter of 2017, an increase of 112% compared to revenues of $4.3
million in the fourth quarter of 2016.
Gross Profit totaled $2.2 million in the fourth
quarter of 2017 (or 24% of revenues) compared to gross profit of
$0.8 million in the fourth quarter of 2016 (or 19% of revenues).
The gross margin in the fourth quarter of 2017 was impacted by the
product mix and some other unique factors and is expected to return
to the more typical 30%-32% range in the coming quarter.
Operating Income was $0.1 million in the fourth
quarter of 2017 compared to an operating loss of $0.5 million in
the fourth quarter of 2016.
Net income attributable to RADA’s shareholders
in the fourth quarter of 2017, was $0.5 million, or $0.02 per
share, compared to a net loss of $0.5 million, or loss of $0.03 per
share, in the fourth quarter of 2016.
EBITDA was $0.5 million in the fourth quarter
of 2017 compared to an EBITDA loss of $0.2 million in the fourth
quarter of 2016.
Full Year 2017 Results
Summary
Revenues totaled $26.2 million, an increase of
104% compared to revenues of $12.8 million in 2016.
Gross profit totaled $8.3 million (or 32%
of revenues) compared to gross profit of $1.4 million (or 11%
of revenues) in 2016.
Operating income totaled $2.0
million (or 7.6% of revenues) compared to operating loss of $3.4
million in 2016.
Net income attributable to
RADA’s shareholders was $2.2 million, or $0.09 per share for the
year ended December 31, 2017, compared to a net loss of $4.9
million, or loss of $0.35 per basic share, for the year ended
December 31, 2016.
EBITDA totaled $3.5 million compared to an
EBITDA loss of $2.6 million in 2016.
As of December 31, 2017, RADA had net cash and cash
equivalents of $12.4 million, compared to $1.2 million as
of year-end 2016. During the year, RADA had positive operating cash
flow generation of approximately $1 million.
Investor Conference Call
The Company will host a conference call later today, starting at
10:00 am ET (5pm Israel time). Management will host the call and
will be available to answer questions after presenting the
results.
Dial in numbers are: US 1-888-407-2553; UK 0800-917-9141; 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 http://www.rada.com
beginning 24 hours after the call.
About RADA Electronic Industries Ltd
RADA Electronic Industries Ltd. is an Israel-based defense
electronics contractor. The Company specializes in the development,
production, and sales of tactical land radar for force and border
protection, inertial navigation systems for air and land
applications and avionics systems and upgrades.
Contact Information
Company Contact:Avi Israel (CFO)Tel:
+972-9-892-1111mrkt@rada.comwww.rada.com |
Investor Relations Contact:Ehud Helft/Gavriel
FrohweinGK Investor & Public RelationsTel: +1 646 688
3559rada@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. 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 EBITDA consists of net profit (loss) according to U.S.
GAAP, excluding net financing expenses, taxes, depreciation and
amortization and ESOP expenses. EBITDA should not be considered in
isolation or as a substitute for net profit (loss) or other
statement of operations data prepared in accordance with GAAP as a
measure of profitability. 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
|
|
|
|
|
Year ended December 31, |
Three months endedDecember 31, |
|
2017 |
2016 |
|
2017 |
2016 |
|
|
|
|
|
|
Operating Income (loss) |
1,983 |
(3,399 |
) |
104 |
(541 |
) |
Depreciation |
638 |
554 |
|
184 |
149 |
|
Employees Option Compensation |
559 |
111 |
|
168 |
70 |
|
Other
non-cash amortization |
325 |
172 |
|
84 |
149 |
|
|
|
|
|
|
EBITDA |
3,505 |
(2,562 |
) |
540 |
(173 |
) |
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS |
U.S. dollars in
thousands, except share and per share data |
|
|
December 31, |
|
|
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
12,417 |
|
$ |
1,205 |
|
Restricted deposits |
|
|
322 |
|
|
317 |
|
Trade
receivables (net of allowance for doubtful accounts of $14 at
December 31, 2017 and 2016) |
|
|
7,286 |
|
|
5,006 |
|
Costs and
estimated earnings in excess of billings on uncompleted
contracts |
|
|
995 |
|
|
1,096 |
|
Other
accounts receivable and prepaid expenses |
|
|
330 |
|
|
349 |
|
Inventories, net |
|
|
7,910 |
|
|
7,102 |
|
Current
assets related to discontinued operations |
|
|
2,468 |
|
|
2,254 |
|
|
|
|
|
|
|
|
Total current assets |
|
|
31,728 |
|
|
17,329 |
|
|
|
|
|
|
|
|
LONG-TERM ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term receivables and other deposits |
|
|
68 |
|
|
742 |
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
3,915 |
|
|
2,650 |
|
|
|
|
|
|
|
|
|
Long-term assets related to discontinued operations |
|
|
319 |
|
|
266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
36,030 |
|
$ |
20,987 |
|
|
CONSOLIDATED BALANCE SHEETS |
|
|
U.S. dollars in thousands, except share and per share
data |
|
|
|
|
December 31, |
|
|
|
2017 |
|
|
|
2016 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
Bank
credit |
|
$ |
- |
|
|
$ |
575 |
|
Trade
payables |
|
|
2,904 |
|
|
|
2,557 |
|
Other
accounts payable and accrued expenses |
|
|
2,814 |
|
|
|
1,987 |
|
Advances
from customers, net |
|
|
41 |
|
|
|
839 |
|
Current
liabilities related to discontinued operations |
|
|
328 |
|
|
|
265 |
|
|
|
|
|
|
Total current liabilities |
|
|
6,087 |
|
|
|
6,223 |
|
|
|
|
|
|
LONG-TERM LIABILITIES: |
|
|
|
|
|
|
|
|
|
Convertible loan from shareholders, net |
|
|
- |
|
|
|
3,072 |
|
Accrued
severance pay and other long term liability |
|
|
758 |
|
|
|
663 |
|
|
|
|
|
|
Total long-term liabilities |
|
|
758 |
|
|
|
3,735 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY: |
|
|
|
|
Share
capital - |
|
|
|
|
Ordinary
shares of NIS 0.03 par value - Authorized: 37,500,000 shares at
December 31, 2017 and at December 31, 2016; Issued and outstanding:
31,392,040 and 21,246,502 at December 31, 2017 and at
December 31, 2016 respectively. |
|
|
335 |
|
|
|
250 |
|
Additional paid-in capital |
|
|
104,923 |
|
|
|
89,407 |
|
Accumulated other comprehensive income |
|
|
392 |
|
|
|
222 |
|
Accumulated deficit |
|
|
(77,124 |
) |
|
|
(79,363 |
) |
|
|
|
|
|
Total
RADA Electronic Industries shareholders' equity |
|
|
28,526 |
|
|
|
10,516 |
|
Non-controlling interest |
|
|
659 |
|
|
|
513 |
|
|
|
|
|
|
Total equity |
|
|
29,185 |
|
|
|
11,029 |
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
36,030 |
|
|
$ |
20,987 |
|
|
CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
U.S. dollars in thousands, except per share
data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, |
|
|
Three months endedDecember 31, |
|
|
|
|
|
2017 |
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
|
Revenues: |
|
|
|
|
|
|
Products |
$ |
25,010 |
$ |
11,663 |
|
$ |
8,845 |
|
$ |
4,064 |
|
|
|
Services |
|
1,172 |
|
1,158 |
|
|
274 |
|
|
239 |
|
|
|
|
|
|
|
|
|
|
|
|
26,182 |
|
12,821 |
|
|
9,119 |
|
|
4,303 |
|
|
|
Cost of revenues: |
|
|
|
|
|
|
Products |
|
17,807 |
|
10,594 |
|
|
6,922 |
|
|
3,376 |
|
|
|
Services |
|
112 |
|
785 |
|
|
22 |
|
|
107 |
|
|
|
|
|
|
|
|
|
|
|
|
17,919 |
|
11,379 |
|
|
6,944 |
|
|
3,483 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
8,263 |
|
1,442 |
|
|
2,175 |
|
|
820 |
|
|
|
Operating expenses: |
|
|
|
|
|
|
Research and development, net |
|
1,575 |
|
758 |
|
|
689 |
|
|
225 |
|
|
|
Marketing and selling |
|
2,137 |
|
2,269 |
|
|
653 |
|
|
615 |
|
|
|
General and administrative |
|
2,568 |
|
1,814 |
|
|
729 |
|
|
521 |
|
|
|
Total
operating expenses: |
|
6,280 |
|
4,841 |
|
|
2,071 |
|
|
1,361 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (loss) |
|
1,983 |
|
(3,399 |
) |
|
104 |
|
|
(541 |
) |
|
|
Amortization of shareholders' convertible loans discount and
beneficial conversion feature (BCF) |
|
103 |
|
1,116 |
|
|
- |
|
|
10 |
|
|
|
Other
financial expenses (income), net |
|
53 |
|
405 |
|
|
(41 |
) |
|
(8 |
) |
|
|
|
Total
financial expenses(Income), net |
|
156 |
|
1,521 |
|
|
(41 |
) |
|
2 |
|
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations |
|
1,827 |
|
(4,920 |
) |
|
145 |
|
|
(543 |
) |
|
|
|
|
|
|
|
|
|
Net
income from discontinued operations |
|
515 |
|
13 |
|
|
512 |
|
|
57 |
|
|
|
|
|
|
|
|
|
|
Net
income (loss) |
|
2,342 |
|
(4,907 |
) |
|
657 |
|
|
(486 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) attributable to non-controlling interest |
|
103 |
|
3 |
|
|
102 |
|
|
11 |
|
|
|
Net income attributable to RADA Electronic Industries'
shareholders |
$ |
2,239 |
$ |
(4,910 |
) |
$ |
555 |
|
$ |
(497 |
) |
|
|
|
|
|
|
|
|
|
Basic
net income (loss) from continuing operations per Ordinary
share |
$ |
0.07 |
$ |
(0.35 |
) |
$ |
0.00 |
|
$ |
(0.03 |
) |
|
|
Diluted net income (loss) from continuing operations per
Ordinary share |
$ |
0.06 |
$ |
(0.35 |
) |
$ |
0.00 |
|
$ |
(0.03 |
) |
|
|
Basic
and diluted net income from discontinued operations per Ordinary
share |
$ |
0.02 |
$ |
0.00 |
|
$ |
0.02 |
|
$ |
0.00 |
|
|
|
Basic
net income (loss) per Ordinary share |
$ |
0.09 |
$ |
(0.35 |
) |
$ |
0.02 |
|
$ |
(0.03 |
) |
|
|
Diluted net income (loss) per Ordinary share |
$ |
0.08 |
$ |
(0.35 |
) |
$ |
0.02 |
|
$ |
(0.03 |
) |
|
|
Weighted average number of Ordinary shares used for computing basic
net income (loss) per share |
|
24,956,915 |
|
14,029,346 |
|
|
31,027,341 |
|
|
19,235,260 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of Ordinary shares used for computing
diluted net income (loss) per share |
|
28,126,509 |
|
14,029,346 |
|
|
33,155,420 |
|
|
19,235,260 |
|
|
|
Rada Electronics Industr... (NASDAQ:RADA)
Historical Stock Chart
From Apr 2024 to May 2024
Rada Electronics Industr... (NASDAQ:RADA)
Historical Stock Chart
From May 2023 to May 2024