SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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F O R M 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR
15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of September 2003
RADA ELECTRONIC INDUSTRIES LIMITED
(Name of Registrant)
7 Giborei Israel Street, Netanya 42504, Israel
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F __
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(1):__
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(7):__
Indicate by check mark whether by furnishing the information
contained in this Form, the registrant is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.
Yes __ No X
If "Yes" is marked, indicate below the file number assigned to
the registrant in connection with Rule 12g3-2(b): 82-_______________
This Form 6-K is being incorporated by reference into the Company's Form
F-3 Registration Statement File No. 333-11716.
RADA ELECTRONIC INDUSTRIES LTD.
6-K Items
1. Press Release re RADA Electronic Industries Ltd. Six Months Results for
June 30, 2003 dated September 9, 2003.
ITEM 1
Press Release Source: RADA Electronic Industries Ltd.
RADA Electronic Industries Ltd. Six Months Results for June 30, 2003
Tuesday September 9, 9:21 am ET
NETANYA, Israel, Sept. 9 /PRNewswire-FirstCall/ -- RADA Electronic Industries
Ltd. (Nasdaq: RADIF - News) today reported its financial position and results of
operations for the six months ended June 30, 2003. The company reported $4.5
million in revenues, $550,000 net loss and earnings before interest,
depreciation, taxes and amortization (EBIDTA) of approximately $340,000 for the
six months compared with EBIDTA of $276,000 for the twelve months ended December
31, 2002.
The Company also reported its results of operations and financial position as of
June 30, 2003 on a pro forma basis giving effect to the previously announced
debt settlement agreement with its banks that is scheduled to close on or before
September 15, 2003. Although the Company reported shareholders' equity of
approximately $290,000 at June 30, 2003, the reported shareholders' equity on a
pro forma basis is approximately $2.6 million.
About RADA
RADA Electronic Industries Ltd. is an Israel based company involved in the
military and commercial aerospace industries, with 90 staff. The company
specializes in Avionics, Ground Debriefing Stations (Video, ACMI and
Maintenance) and Automatic Test Equipment.
Note: 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 Reports on Form 20-F and other filings with the
Securities and Exchange Commission.
Contact:
Adar Azancot - C.E.O
RADA Electronic Industries Ltd.
Tel: 011-972-9-8921109
RADA ELECTRONIC INDUSTRIES LIMITED AND ITS SUBSIDIARY
UNAUDITED CONSOLIDATED BALANCE SHEETS
In thousands of U.S. dollars
June 30,
2003 2003
Note Actual Pro Forma (*)
Current assets
Cash and cash equivalents 2 $ 1,412 $ 312
Trade receivables (net of allowance
for doubtful accounts of $214) 1,639 1,639
Other receivables and prepaid expenses 456 456
Inventories 1,269 1,269
Total current assets 4,776 3,676
Long-term receivables and deposits
Long-term receivables 1,012 1,012
Leasing deposits 70 70
Severance pay funds 1,583 1,583
2,665 2,665
Property and equipment, net
Cost 16,498 16,498
Less - accumulated depreciation 11,325 11,325
Total property and equipment, net 5,173 5,173
Intangible assets, net 2,932 2,932
Total assets $ 15,546 $ 14,446
Current liabilities
Short-term bank credits and loans 2 $ 5,480 $ 2,029
Trade payables 621 621
Other payables and accrued expenses 2 2,831 2,901
Deferred revenues 769 769
Billings in excess of costs and
estimated earnings on uncompleted contracts 2,778 2,778
Total current liabilities 12,479 9,098
Accrued severance pay 2,336 2,336
Minority interests 441 441
Shareholders' equity 2
Share capital
Ordinary shares of NIS 0.005 par value:
Authorized - 45,000,000
shares; Issued and outstanding -
18,510,716 shares 108 108
Additional paid-in capital 59,140 59,140
Warrants 124 1,338
Accumulated deficit (59,082) (58,015)
Total shareholders' equity 290 2,571
Total liabilities and shareholders' equity $15,546 $14,446
(*) See note 2
The accompanying notes are an integral part of these consolidated financial
statements
RADA ELECTRONIC INDUSTRIES LIMITED AND ITS SUBSIDIARY
UNAUDITED CONSOLIDATED INCOME STATEMENTS
In thousands of U.S. dollars
For the six months ended
Note June 30, 2003
Actual Pro Forma (*)
Revenues
Products $ 2,885 $ 2,885
Services 1,662 1,662
4,547 4,547
Cost of revenues
Products 2,426 2,426
Services 1,202 1,202
3,628 3,628
Gross profit 919 919
Operating expenses:
Marketing, selling, general and
administrative expenses 1,307 1,307
Operating loss (388) (388)
Financing expenses, net (231) (231)
Other income 2 62 1,129
(557) 510
Minority interest in losses of subsidiaries 7 7
Net income (loss) $ (550) $ 517
(*) See note 2
The accompanying notes are an integral part of these consolidated financial
statements
RADA ELECTRONIC INDUSTRIES LIMITED AND ITS SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
In thousands of U.S. dollars
NOTE 1 - GENERAL
The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial information.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been included.
Although the Company believes that the disclosure presented herein is adequate
to make the information presented not misleading, it is suggested that these
balance sheets statements be read in conjunction with the 2002 annual financial
statements and footnotes.
NOTE 2 - BANK SETTLEMENT AGREEMENT - PRO FORMA ADJUSTMENTS
On June 22, 2003, the Company signed a memorandum of agreement pursuant to which
it has entered into a settlement agreement with Bank Hapoalim B.M. and Bank
Leumi Le-Israel B.M, (the "Banks"). The agreement was approved by the Company's
shareholders in an extraordinary general meeting of shareholders held on July
22, 2003. Pursuant to this agreement, the Company will (i) repay the Banks
$1,100 thousand on account of its debt to them, (ii) issue the banks warrants to
purchase ordinary shares in lieu of $1,251 thousand of debt and (iii) in
addition the banks agreed to write-off $1,100 thousand of the Company's debt.
The pro forma financial statements reflect the financial position of the Company
as of June 30, 2003 and the results of operation for the six months ended June
30, 2003 as if the agreement with the banks was declared effective on June 30,
2003. Accordingly, the pro forma financial statements are not necessarily
indicative of what actually would have occurred if the agreement with the bank
were effective on June 30, 2003, nor are they necessary indicative of future
results.
The pro forma adjustments reflect the repayment of $1,100 thousand of
outstanding debt, write off of $1,100 thousand of debt and the conversion of
$1,251 thousand (net of $37 thousand issuance expenses) of debt to warrants to
purchase ordinary shares.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Rada Electronic Industries Ltd.
(Registrant)
By: /s/Herzle Bodinger
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Herzle Bodinger, Chairman
Date: September 9, 2003