HAIFA, Israel, Aug.15, 2017
/PRNewswire/ -- Elbit Systems Ltd. (NASDAQ: ESLT and TASE:
ESLT), (the "Company") the international high technology
company, reported today its consolidated results for the quarter
ended June 30, 2017.
In this release, the Company is providing US-GAAP results as
well as additional non-GAAP financial data, which are intended to
provide investors a more comprehensive understanding of the
Company's business results and trends. Unless otherwise stated, all
financial data presented is GAAP financial data.
Management Comment:
Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems,
commented: "Our results represent ongoing improvements in
revenue, profit and especially backlog, which grew strongly,
particularly the longer-term component. Our increased focus on
sales and marketing in recent quarters, as well as R&D, is
enabling us to take advantage of the growth in the opportunities we
see in many of our end markets. Furthermore, the diversified
portfolio of technologies and products as well as a worldwide
balanced market presence reflected by the breakdown of revenue
streams and backlog, provides for the potential of continuing the
long-term trend of growth and profitability."
Second quarter 2017 results:
Revenues in the second quarter of 2017 were
$818.3 million, as compared to
$804.5 million in the second quarter
of 2016.
Non-GAAP (*) gross profit amounted to
$248.3 million (30.4% of revenues) in
the second quarter of 2017, as compared to $244.0 million (30.3% of revenues) in the second
quarter of 2016. GAAP gross profit in the second quarter of
2017 was $242.3 million (29.6% of
revenues), as compared to $236.1
million (29.4% of revenues) in the second quarter of
2016.
Research and development expenses, net were $67.1 million (8.2% of revenues) in the second
quarter of 2017, as compared to $67.2
million (8.4% of revenues) in the second quarter of
2016.
_____________
* see page 3
Marketing and selling expenses, net were $66.3 million (8.1% of revenues) in the second
quarter of 2017, as compared to $60.3
million (7.5% of revenues) in the second quarter of 2016.
The increase in marketing and selling expenses in the second
quarter of 2017 was mainly related to the mix of countries and
types of marketing activities for projects in which we invest our
marketing efforts.
General and administrative expenses, net were
$33.6 million (4.1% of revenues) in
the second quarter of 2017, as compared to $38.7 million (4.8% of revenues) in the second
quarter of 2016. The decrease in general and administrative
expenses in the second quarter of 2017 resulted from revaluation of
liabilities related to assets and activities acquired in prior
years.
Non-GAAP(*) operating income was $82.7 million (10.1% of revenues) in the second
quarter of 2017, as compared to $80.5
million (10.0% of revenues) in the second quarter of
2016. GAAP operating income in the second quarter of
2017 was $75.3 million (9.2% of
revenues), as compared to $69.9
million (8.7% of revenues) in the second quarter of
2016.
Financial expenses, net were $6.8
million in the second quarter of 2017, as compared to
$5.5 million in the second quarter of
2016.
Taxes on income were $10.3
million (effective tax rate of 15.1%) in the second quarter
of 2017, as compared to $14.3 million
(effective tax rate of 22.2%) in the second quarter of 2016.
The effective tax rate is affected by the mix of the tax rates in
the various jurisdictions in which the Company's entities generate
taxable income and the decrease of tax rates in Israel.
Equity in net earnings of affiliated companies and
partnerships was $4.8 million
(0.6% of revenues) in the second quarter of 2017, as compared to
$4.4 million (0.5% of revenues) in
the second quarter of 2016.
Net income attributable to non-controlling interests was
$0.4 million in the second quarter of
2017, as compared to $0.5 million in
the second quarter of 2016.
Non-GAAP(*) net income attributable to the
Company's shareholders in the second quarter of 2017 was
$68.8 million (8.4% of revenues), as
compared to $62.9 million (7.8% of
revenues) in the second quarter of 2016. GAAP net income in
the second quarter of 2017 was $62.6
million (7.6% of revenues), as compared to $54.1 million (6.7% of revenues) in the second
quarter of 2016.
Non-GAAP(*) diluted net earnings per share
attributable to the Company's shareholders were
$1.61 for the second quarter of 2017,
as compared to $1.47 for the second
quarter of 2016. GAAP diluted earnings per share in the
second quarter of 2017 were $1.46, as
compared to $1.27 for the second
quarter of 2016.
The Company's backlog of orders for the quarter ended
June 30, 2017 totaled $7,329
million, as compared to $6,818
million as of June 30, 2016. Approximately 72% of the
current backlog is attributable to orders from outside Israel. Approximately 57% of the current
backlog is scheduled to be performed during 2017 and 2018.
Operating cash flow provided in the six months ended
June 30, 2017 was $2.7
million, as compared to $14.2
million used in the six months ended June 30, 2016.
_____________
* see page 3
Accounting policies update:
ASU 2014-09, "Revenue from Contracts with Customers" (ASC 606),
will be effective for the Company beginning January 1, 2018. The Company is adopting ASC 606
effective January 1, 2018 and expects
to do so using the modified retrospective method. However, a final
decision regarding the adoption method has not been finalized at
this time.
The Company has made progress toward completing the evaluation
of the potential changes from adopting the new standard on its
financial reporting and disclosures. The Company has evaluated the
impact of the standard on its revenue streams and some of its
significant representative contracts. The Company has significantly
progressed in its assessment of the impact on its business
processes, controls and systems. We are in the process of
implementing changes to business processes, systems and internal
controls required to implement and account for the new
standard.
The adoption of the new standard may primarily impact the
Company's contracts where revenue is currently recognized using the
percentage-of-completion units-of-delivery method, with the
possible resulting impact being revenue which may be recognized
earlier in the performance period as it incurs costs, as opposed to
when units are delivered. This change may also impact the Company's
balance sheet presentation with a possible decrease in inventories,
an increase in contract assets (i.e., unbilled receivables) and a
net increase to retained earnings to primarily reflect the impact
of converting units-of-delivery contracts to the cost-to-cost
method for recognizing revenue and profits.
Our evaluation of the standard and its impact on the financial
statements, contracts and required financial controls will continue
through the adoption date, including any impacts related to new
contracts awarded.
* Non-GAAP financial data:
The following non-GAAP financial data is presented to enable
investors to have additional information on the Company's business
performance as well as a further basis for periodical comparisons
and trends relating to the Company's financial results. The Company
believes such data provides useful information to investors by
facilitating more meaningful comparisons of the Company's financial
results over time. Such non-GAAP information is used by the
Company's management to make strategic decisions, forecast future
results and evaluate the Company's current performance. However,
investors are cautioned that, unlike financial measures prepared in
accordance with GAAP, non-GAAP measures may not be comparable with
the calculation of similar measures for other companies.
The non-GAAP financial data includes reconciliation adjustments
regarding non-GAAP gross profit, operating income, net income and
diluted EPS. In arriving at non-GAAP presentations, companies
generally factor out items such as those that have a non-recurring
impact on the income statements, various non-cash items,
significant effects of retroactive tax legislation and changes in
accounting guidance and other items, which in management's
judgment, are items that are considered to be outside of the review
of core operating results.
In the Company's non-GAAP presentation, the Company made certain
adjustments, as indicated in the table below.
These non-GAAP measures are not based on any comprehensive set
of accounting rules or principles. The Company believes that
non-GAAP measures have limitations in that they do not reflect all
of the amounts associated with the Company's results of operations,
as determined in accordance with GAAP, and that these measures
should only be used to evaluate the Company's results of operations
in conjunction with the corresponding GAAP measures.
Investors should consider non-GAAP financial measures in addition
to, and not as replacements for or superior to, measures of
financial performance prepared in accordance with GAAP.
Reconciliation of
GAAP to Non-GAAP (Unaudited) Supplemental Financial
Data:
|
(US Dollars in
millions)
|
|
|
Six Months
Ended
June 30,
|
|
Three Months
Ended
June 30,
|
|
Year
Ended
December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
|
463.5
|
|
|
$
|
448.4
|
|
|
$
|
242.3
|
|
|
$
|
236.1
|
|
|
$
|
959.6
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
11.7
|
|
|
15.8
|
|
|
6.0
|
|
|
7.9
|
|
|
31.2
|
|
Non-GAAP
gross profit
|
$
|
475.2
|
|
|
$
|
464.2
|
|
|
$
|
248.3
|
|
|
$
|
244.0
|
|
|
$
|
990.8
|
|
Percent of
revenues
|
30.3
|
%
|
|
30.4
|
%
|
|
30.4
|
%
|
|
30.3
|
%
|
|
30.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
|
133.5
|
|
|
$
|
133.2
|
|
|
$
|
75.3
|
|
|
$
|
69.9
|
|
|
$
|
299.0
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
14.7
|
|
|
21.2
|
|
|
7.4
|
|
|
10.6
|
|
|
41.2
|
|
Gain from changes in
holdings
|
—
|
|
|
(7.0)
|
|
|
—
|
|
|
—
|
|
|
(17.6)
|
|
Non-GAAP operating
income
|
$
|
148.2
|
|
|
$
|
147.4
|
|
|
$
|
82.7
|
|
|
$
|
80.5
|
|
|
$
|
322.6
|
|
Percent of
revenues
|
9.5
|
%
|
|
9.7
|
%
|
|
10.1
|
%
|
|
10.0
|
%
|
|
9.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to Elbit
Systems' shareholders
|
$
|
108.2
|
|
|
$
|
106.4
|
|
|
$
|
62.6
|
|
|
$
|
54.1
|
|
|
$
|
236.9
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
14.7
|
|
|
21.2
|
|
|
7.4
|
|
|
10.6
|
|
|
41.2
|
|
Capital
gain
|
—
|
|
|
(3.9)
|
|
|
—
|
|
|
—
|
|
|
(3.9)
|
|
Impairment of
investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.5
|
|
Gain from changes in
holdings
|
—
|
|
|
(7.0)
|
|
|
—
|
|
|
—
|
|
|
(16.4)
|
|
Related tax
benefits
|
(2.5)
|
|
|
(2.7)
|
|
|
(1.2)
|
|
|
(1.8)
|
|
|
(6.1)
|
|
Non-GAAP net
income attributable to
Elbit Systems' shareholders
|
$
|
120.4
|
|
|
$
|
114.0
|
|
|
$
|
68.8
|
|
|
$
|
62.9
|
|
|
$
|
254.2
|
|
Percent of
revenues
|
7.7
|
%
|
|
7.5
|
%
|
|
8.4
|
%
|
|
7.8
|
%
|
|
7.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
EPS
|
$
|
2.53
|
|
|
$
|
2.49
|
|
|
$
|
1.46
|
|
|
$
|
1.27
|
|
|
$
|
5.54
|
|
Adjustments,
net
|
0.29
|
|
|
0.18
|
|
|
0.15
|
|
|
0.20
|
|
|
0.41
|
|
Non-GAAP diluted
net EPS
|
$
|
2.82
|
|
|
$
|
2.67
|
|
|
$
|
1.61
|
|
|
$
|
1.47
|
|
|
$
|
5.95
|
|
Recent Events:
On May 17, 2017, the Company
announced that its U.S. subsidiary, Elbit Systems of America LLC.,
was awarded an approximately $166
million contract from a prime contractor to provide operator
interface and computer processing capabilities for a U.S. Army
platform. The contract will be performed primarily in Fort Worth, Texas, over a five-year
period.
On May 24, 2017, the Company
announced that it was awarded a $25
million contract for the supply of J-Music™ DIRCM (Direct
Infrared Countermeasures) self-protection systems to an
international organization. The contract will be performed over a
three-year period.
On May 28, 2017, the Company
announced that it was awarded a contract, in an amount of
approximately $390 million, to supply
an array of ground electronic intelligence capabilities to a
European country. The contract, which includes various intelligence
capabilities, as well as communications and command and control
solutions, will be performed over a three-year period.
On June 21, 2017, the Company
announced that it was awarded a contract of more than $20 million by an African-based customer to equip
a VIP Gulfstream G650 aircraft with J-Music™ DIRCM systems that
include Elbit Systems' advanced infrared-based Passive Airborne
Warning System. The contract will be performed over a one-year
period.
On July 5, 2017, the Company
announced that one of its subsidiaries in Europe was awarded a contract from a European
country, for the supply of thousands of advanced Electro-Optic
systems for individual infantry soldiers, in a total amount of an
approximately $35 million. The
contract will be performed over a two-year period.
Dividend:
The Board of Directors declared a dividend of $0.44 per share for the second quarter of 2017.
The dividend's record date is September 1,
2017. The dividend will be paid from income generated as
Preferred Income (as defined under Israel tax laws), on September 18, 2017, net of taxes and levies, at
the rate of 20%.
Conference Call:
The Company will be hosting a conference call today,
Tuesday, August 15, 2017 at
9:00 a.m. Eastern Time. On the call,
management will review and discuss the results and will be
available to answer questions.
To participate, please call one of the teleconferencing numbers
that follow. If you are unable to connect using the toll-free
numbers, please try the international dial-in number.
US Dial-in Numbers: 1 888 407 2553
Canada Dial-in Numbers: 1 866 485 2399
UK Dial-in Number: 0 800 917 5108
ISRAEL Dial-in Number: 03 918 0610
INTERNATIONAL Dial-in Number: +972 3 918 0610
at: 9:00 am Eastern
Time; 6:00 am Pacific Time;
2:00 pm UK Time; 4:00 pm Israel Time
This call will also be broadcast live on Elbit Systems' web-site
at http://www.elbitsystems.com. An online replay will be
available from 24 hours after the call ends.
Alternatively, for two days following the call, investors will
be able to dial a replay number to listen to the call. The dial-in
numbers are:
1 888 782 4291 (US and Canada) or +972 3 925 5904 (Israel and International).
About Elbit Systems
Elbit Systems Ltd. is an international high technology company
engaged in a wide range of defense, homeland security and
commercial programs throughout the world. The Company, which
includes Elbit Systems and its subsidiaries, operates in the areas
of airborne, land and naval systems, command, control,
communications, computers, intelligence surveillance and
reconnaissance ("C4ISR"), unmanned aircraft systems, advanced
electro-optics, electro-optic space systems, EW suites, signal
intelligence systems, data links and communications systems and
radios. The Company also focuses on the upgrading of existing
platforms, developing new technologies for defense, homeland
security and commercial aviation applications and providing a range
of support services, including training and simulation systems.
For additional information, visit: www.elbitsystems.com or
follow us on Twitter.
Attachments:
Consolidated balance sheets
Consolidated statements of income
Consolidated statements of cash flow
Consolidated revenue distribution by areas of operation and by
geographical regions
Company
Contact:
Joseph Gaspar,
Executive VP & CFO
Tel:
+972-4-8316663
j.gaspar@elbitsystems.com
Dalia Rosen,
VP, Head of Corporate Communications
Tel:
+972-4-8316784
dalia.rosen@elbitsystems.com
Elbit Systems
Ltd.
|
IR
Contact:
Ehud
Helft
Kenny
Green
GK Investor
Relations
Tel:
1-646-201-9246
elbitsystems@gkir.com
|
This press release contains forward-looking statements (within
the meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1943, as
amended) regarding Elbit Systems Ltd. and/or its subsidiaries
(collectively the Company), to the extent such statements do not
relate to historical or current fact. Forward-looking statements
are based on management's expectations, estimates, projections and
assumptions. Forward-looking statements are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995, as amended. These statements are not guarantees of
future performance and involve certain risks and uncertainties,
which are difficult to predict. Therefore, actual future results,
performance and trends may differ materially from these
forward-looking statements due to a variety of factors, including,
without limitation: scope and length of customer contracts;
governmental regulations and approvals; changes in governmental
budgeting priorities; general market, political and economic
conditions in the countries in which the Company operates or sells,
including Israel and the United States among others; differences in
anticipated and actual program performance, including the ability
to perform under long-term fixed-price contracts; and the outcome
of legal and/or regulatory proceedings. The factors listed above
are not all-inclusive, and further information is contained in
Elbit Systems Ltd.'s latest annual report on Form 20-F, which is on
file with the U.S. Securities and Exchange Commission. All
forward-looking statements speak only as of the date of this
release. The Company does not undertake to update its
forward-looking statements.
Elbit Systems Ltd., its logo, brand, product, service and
process names appearing in this Press Release are the trademarks or
service marks of Elbit Systems Ltd. or its affiliated
companies. All other brand, product, service and process
names appearing are the trademarks of their respective
holders. Reference to or use of a product, service or process
other than those of Elbit Systems Ltd. does not imply
recommendation, approval, affiliation or sponsorship of that
product, service or process by Elbit Systems Ltd. Nothing contained
herein shall be construed as conferring by implication, estoppel or
otherwise any license or right under any patent, copyright,
trademark or other intellectual property right of Elbit Systems
Ltd. or any third party, except as expressly granted herein.
(FINANCIAL TABLES TO FOLLOW)
ELBIT SYSTEMS
LTD.
|
CONSOLIDATED
BALANCE SHEETS
|
(In thousands of US
Dollars)
|
|
|
|
|
|
June
30
|
|
December
31,
|
|
2017
|
|
2016
|
|
Unaudited
|
|
Audited
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
149,483
|
|
|
$
|
222,810
|
|
Short-term bank
deposits and marketable securities
|
21,903
|
|
|
22,252
|
|
Trade and unbilled
receivables, net
|
1,349,799
|
|
|
1,232,591
|
|
Other receivables and
prepaid expenses
|
156,955
|
|
|
102,979
|
|
Inventories, net of
customers advances
|
893,458
|
|
|
840,266
|
|
Total current
assets
|
2,571,598
|
|
|
2,420,898
|
|
|
|
|
|
Investments in
affiliated companies and partnerships
|
171,434
|
|
|
180,962
|
|
Long-term trade and
unbilled receivables
|
174,998
|
|
|
189,688
|
|
Long-term bank
deposits and other receivables
|
25,832
|
|
|
15,917
|
|
Deferred income
taxes, net
|
80,894
|
|
|
79,639
|
|
Severance pay
fund
|
293,838
|
|
|
264,253
|
|
|
746,996
|
|
|
730,459
|
|
|
|
|
|
Property, plant and
equipment, net
|
488,212
|
|
|
474,109
|
|
Goodwill and other
intangible assets, net
|
763,964
|
|
|
726,398
|
|
Total
assets
|
$
|
4,570,770
|
|
|
$
|
4,351,864
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Short-term bank
credit and loans
|
$
|
111,543
|
|
|
$
|
5,027
|
|
Current maturities of
long-term loans and Series A Notes
|
93,811
|
|
|
228,956
|
|
Trade
payables
|
490,127
|
|
|
514,106
|
|
Other payables and
accrued expenses
|
871,287
|
|
|
828,716
|
|
Customer advances in
excess of costs incurred on contracts in progress
|
422,044
|
|
|
347,393
|
|
|
1,988,812
|
|
|
1,924,198
|
|
|
|
|
|
Long-term loans, net
of current maturities
|
119,997
|
|
|
475
|
|
Series A Notes, net
of current maturities
|
125,818
|
|
|
171,066
|
|
Employee benefit
liabilities
|
407,023
|
|
|
376,115
|
|
Deferred income taxes
and tax liabilities, net
|
66,762
|
|
|
60,098
|
|
Customer advances in
excess of costs incurred on contracts in progress
|
153,533
|
|
|
174,529
|
|
Other long-term
liabilities
|
58,551
|
|
|
78,142
|
|
|
931,684
|
|
|
860,425
|
|
|
|
|
|
Elbit Systems Ltd.'s
equity
|
1,641,746
|
|
|
1,559,840
|
|
Non-controlling
interests
|
8,528
|
|
|
7,401
|
|
Total
equity
|
1,650,274
|
|
|
1,567,241
|
|
Total liabilities
and equity
|
$
|
4,570,770
|
|
|
$
|
4,351,864
|
|
ELBIT SYSTEMS
LTD.
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(In thousands of US
Dollars, except for share and per share amount)
|
|
|
|
|
|
|
|
Six Months
Ended
June
30,
|
|
Three Months
Ended
June 30,
|
|
Year
Ended
December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2016
|
|
Unaudited
|
|
Unaudited
|
|
Audited
|
Revenues
|
$
|
1,567,487
|
|
|
$
|
1,525,721
|
|
|
$
|
818,299
|
|
|
$
|
804,510
|
|
|
$
|
3,260,219
|
|
Cost of
revenues
|
1,104,009
|
|
|
1,077,344
|
|
|
575,971
|
|
|
568,375
|
|
|
2,300,636
|
|
Gross
profit
|
463,478
|
|
|
448,377
|
|
|
242,328
|
|
|
236,135
|
|
|
959,583
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development, net
|
125,506
|
|
|
123,236
|
|
|
67,069
|
|
|
67,189
|
|
|
255,792
|
|
Marketing and
selling, net
|
132,068
|
|
|
121,326
|
|
|
66,291
|
|
|
60,330
|
|
|
271,037
|
|
General and
administrative, net
|
72,369
|
|
|
77,616
|
|
|
33,645
|
|
|
38,672
|
|
|
151,353
|
|
Other operating
income, net
|
—
|
|
|
(7,032)
|
|
|
—
|
|
|
—
|
|
|
(17,575)
|
|
Total operating
expenses
|
329,943
|
|
|
315,146
|
|
|
167,005
|
|
|
166,191
|
|
|
660,607
|
|
Operating
income
|
133,535
|
|
|
133,231
|
|
|
75,323
|
|
|
69,944
|
|
|
298,976
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
(15,478)
|
|
|
(7,194)
|
|
|
(6,833)
|
|
|
(5,475)
|
|
|
(23,742)
|
|
Other income,
net
|
37
|
|
|
3,910
|
|
|
5
|
|
|
13
|
|
|
3,967
|
|
Income before income
taxes
|
118,094
|
|
|
129,947
|
|
|
68,495
|
|
|
64,482
|
|
|
279,201
|
|
|
|
|
|
|
|
|
|
|
|
Taxes on
income
|
(15,572)
|
|
|
(26,956)
|
|
|
(10,321)
|
|
|
(14,286)
|
|
|
(45,617)
|
|
|
102,522
|
|
|
102,991
|
|
|
58,174
|
|
|
50,196
|
|
|
233,584
|
|
|
|
|
|
|
|
|
|
|
|
Equity in net
earnings of affiliated
companies and partnerships
|
6,418
|
|
|
4,429
|
|
|
4,822
|
|
|
4,409
|
|
|
5,224
|
|
Net income
|
$
|
108,940
|
|
|
$
|
107,420
|
|
|
$
|
62,996
|
|
|
$
|
54,605
|
|
|
$
|
238,808
|
|
Less: net income
attributable to non-
controlling interests
|
(716)
|
|
|
(1,002)
|
|
|
(412)
|
|
|
(514)
|
|
|
(1,899)
|
|
Net income
attributable to Elbit
Systems Ltd.'s shareholders
|
$
|
108,224
|
|
|
$
|
106,418
|
|
|
$
|
62,584
|
|
|
$
|
54,091
|
|
|
$
|
236,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Elbit Systems Ltd.'s shareholders:
|
|
|
|
|
Basic net earnings
per share
|
$
|
2.53
|
|
|
$
|
2.49
|
|
|
$
|
1.46
|
|
|
$
|
1.27
|
|
|
$
|
5.54
|
|
Diluted net earnings
per share
|
$
|
2.53
|
|
|
$
|
2.49
|
|
|
$
|
1.46
|
|
|
$
|
1.27
|
|
|
$
|
5.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares (in thousands)
|
|
|
|
|
|
|
|
|
Shares used in
computation of basic
earnings per share
|
42,749
|
|
|
42,739
|
|
|
42,749
|
|
|
42,743
|
|
|
42,742
|
|
Shares used in
computation of diluted
earnings per share
|
42,753
|
|
|
42,750
|
|
|
42,755
|
|
|
42,752
|
|
|
42,752
|
|
ELBIT SYSTEMS
LTD.
|
CONSOLIDATED
STATEMENTS OF CASH FLOW
|
(In thousands of US
dollars)
|
|
|
|
|
|
Six Months
Ended
June 30,
|
|
Year
Ended
December 31,
|
|
2017
|
|
2016
|
|
2016
|
|
Unaudited
|
|
Audited
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net
income
|
$
|
108,940
|
|
|
$
|
107,420
|
|
|
$
|
238,808
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
56,360
|
|
|
59,038
|
|
|
122,888
|
|
Write-off impairment on
marketable securities
|
—
|
|
|
—
|
|
|
86
|
|
Stock-based
compensation
|
13
|
|
|
43
|
|
|
70
|
|
Amortization of Series
A Notes premium and related issuance costs, net
|
(46)
|
|
|
(46)
|
|
|
(92)
|
|
Deferred income taxes
and reserve, net
|
1,960
|
|
|
7,693
|
|
|
2,683
|
|
Gain on sale of
property, plant and equipment
|
(1,970)
|
|
|
(3,810)
|
|
|
(3,347)
|
|
Loss (gain) on sale and
revaluation of investments
|
204
|
|
|
(6,617)
|
|
|
(16,734)
|
|
Equity in net earnings
of affiliated companies and partnerships, net of
dividend received (*)
|
(4,303)
|
|
|
(4,429)
|
|
|
(1,728)
|
|
Changes in operating
assets and liabilities, net of amounts acquired:
|
|
|
|
|
|
Increase in short and
long-term trade receivables and prepaid expenses
|
(157,407)
|
|
|
(178,535)
|
|
|
(297,439)
|
|
Increase in
inventories, net
|
(50,203)
|
|
|
(32,789)
|
|
|
(8,040)
|
|
Increase (decrease) in
trade payables, other payables and accrued expenses
|
(17,381)
|
|
|
95,696
|
|
|
253,413
|
|
Severance, pension and
termination indemnities, net
|
12,850
|
|
|
3,372
|
|
|
315
|
|
Increase (decrease) in
advances received from customers
|
53,654
|
|
|
(61,208)
|
|
|
(82,881)
|
|
Net cash provided by
(used in) operating activities
|
2,671
|
|
|
(14,172)
|
|
|
208,002
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Purchase of property,
plant and equipment and other assets
|
(55,416)
|
|
|
(68,131)
|
|
|
(124,221)
|
|
Acquisition of
subsidiaries and business operations
|
(25,440)
|
|
|
—
|
|
|
—
|
|
Investments in
affiliated companies and other companies
|
(678)
|
|
|
(17,483)
|
|
|
(19,277)
|
|
Deconsolidation of
subsidiary
|
—
|
|
|
(1,538)
|
|
|
(1,538)
|
|
Proceeds from sale of
property, plant and equipment
|
3,597
|
|
|
8,908
|
|
|
15,745
|
|
Proceeds from sale of
investments
|
12,067
|
|
|
—
|
|
|
—
|
|
Investment in long-term
deposits
|
(499)
|
|
|
(109)
|
|
|
(417)
|
|
Proceeds from sale of
long-term deposits
|
172
|
|
|
268
|
|
|
894
|
|
Investment in
short-term deposits and marketable securities
|
(26,858)
|
|
|
(23,417)
|
|
|
(25,622)
|
|
Proceeds from sale of
short-term deposits and marketable securities
|
27,159
|
|
|
26,106
|
|
|
36,619
|
|
Net cash used in
investing activities
|
(65,896)
|
|
|
(75,396)
|
|
|
(117,817)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Proceeds from exercise
of options
|
63
|
|
|
470
|
|
|
505
|
|
Repayment of long-term
loans
|
(140,782)
|
|
|
(24,790)
|
|
|
(48,250)
|
|
Proceeds from long-term
loans
|
118,550
|
|
|
—
|
|
|
—
|
|
Repayment of Series A
Notes
|
(55,532)
|
|
|
(55,532)
|
|
|
(55,532)
|
|
Dividends
paid
|
(37,649)
|
|
|
(34,224)
|
|
|
(68,447)
|
|
Change in short-term
bank credit and loans, net
|
105,248
|
|
|
60,003
|
|
|
5,027
|
|
Net cash used in
financing activities
|
(10,102)
|
|
|
(54,073)
|
|
|
(166,697)
|
|
Net decrease in cash
and cash equivalents
|
(73,327)
|
|
|
(143,641)
|
|
|
(76,512)
|
|
Cash and cash
equivalents at the beginning of the year
|
222,810
|
|
|
299,322
|
|
|
299,322
|
|
Cash and cash
equivalents at the end of the period
|
$
|
149,483
|
|
|
$
|
155,681
|
|
|
$
|
222,810
|
|
|
|
|
|
|
|
* Dividend
received from affiliated companies and partnerships
|
$
|
2,115
|
|
|
$
|
—
|
|
|
$
|
3,496
|
|
ELBIT SYSTEMS
LTD.
|
DISTRIBUTION OF
REVENUES
|
|
|
|
|
Consolidated
Revenues by Areas of Operation:
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
Three Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
Airborne
systems
|
592.9
|
|
|
37.8
|
|
|
594.7
|
|
|
39.0
|
|
|
302.6
|
|
|
37.0
|
|
|
310.8
|
|
|
38.6
|
|
C4ISR
systems
|
552.6
|
|
|
35.3
|
|
|
528.4
|
|
|
34.6
|
|
|
273.5
|
|
|
33.4
|
|
|
307.0
|
|
|
38.2
|
|
Land
systems
|
203.5
|
|
|
13.0
|
|
|
226.2
|
|
|
14.8
|
|
|
124.6
|
|
|
15.2
|
|
|
87.8
|
|
|
10.9
|
|
Electro-optic
systems
|
169.6
|
|
|
10.8
|
|
|
123.3
|
|
|
8.1
|
|
|
93.2
|
|
|
11.4
|
|
|
69.9
|
|
|
8.7
|
|
Other (mainly
non-defense
engineering and production services)
|
48.9
|
|
|
3.1
|
|
|
53.1
|
|
|
3.5
|
|
|
24.4
|
|
|
3.0
|
|
|
29.0
|
|
|
3.6
|
|
Total
|
1,567.5
|
|
|
100.0
|
|
|
1,525.7
|
|
|
100.0
|
|
|
818.3
|
|
|
100.0
|
|
|
804.5
|
|
|
100.0
|
|
Consolidated
Revenues by Geographical Regions:
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
Three Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
Israel
|
335.0
|
|
|
21.4
|
|
|
323.4
|
|
|
21.2
|
|
|
167.6
|
|
|
20.5
|
|
|
180.3
|
|
|
22.4
|
|
North
America
|
401.8
|
|
|
25.6
|
|
|
396.3
|
|
|
26.0
|
|
|
208.8
|
|
|
25.5
|
|
|
218.1
|
|
|
27.1
|
|
Europe
|
364.9
|
|
|
23.3
|
|
|
260.9
|
|
|
17.1
|
|
|
203.1
|
|
|
24.8
|
|
|
146.6
|
|
|
18.2
|
|
Asia-Pacific
|
328.9
|
|
|
21.0
|
|
|
418.8
|
|
|
27.4
|
|
|
162.7
|
|
|
19.9
|
|
|
206.1
|
|
|
25.6
|
|
Latin
America
|
93.0
|
|
|
5.9
|
|
|
96.7
|
|
|
6.3
|
|
|
58.6
|
|
|
7.2
|
|
|
33.6
|
|
|
4.2
|
|
Other
countries
|
43.9
|
|
|
2.8
|
|
|
29.6
|
|
|
2.0
|
|
|
17.5
|
|
|
2.1
|
|
|
19.8
|
|
|
2.5
|
|
Total
|
1,567.5
|
|
|
100.0
|
|
|
1,525.7
|
|
|
100.0
|
|
|
818.3
|
|
|
100.0
|
|
|
804.5
|
|
|
100.0
|
|
View original
content:http://www.prnewswire.com/news-releases/elbit-systems-reports-second-quarter-of-2017-results-300504426.html
SOURCE Elbit Systems Ltd