HAIFA, Israel, May 26, 2020 /PRNewswire/ -- Elbit Systems
Ltd. (NASDAQ: ESLT) (TASE: ESLT), (the "Company")
the international high technology company, reported today, its
consolidated results for the quarter ended March 31, 2020.
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: "In the first quarter we witnessed positive momentum
across our markets, receiving more than $1.8
billion in orders from customers around the world. These
orders contributed to a record backlog of $10.8 billion, growing by 8% over the last
quarter of 2019, and providing Elbit Systems with good revenue
visibility.
As a result of the COVID-19 pandemic, since March we have made
significant changes to the way we work in order to protect the
health and safety of our employees around the world, while at the
same time maintaining business continuity in order to deliver our
products and services to our customers as planned. This includes
utilizing our healthy balance sheet to secure our supply channels
and maintaining adequate levels of inventory to enable us to
continue deliveries to customers."
First Quarter 2020 Results:
Revenues in the first quarter of 2020 were
$1,071.2 million, as compared to
$1,021.7 million in the first quarter
of 2019.
Non-GAAP (*) gross profit amounted to
$295.4 million (27.6% of revenues) in
the first quarter of 2020, as compared to $283.4 million (27.7% of revenues) in the first
quarter of 2019. GAAP gross profit in the first quarter of
2020 was $289.4 million (27.0% of
revenues), as compared to $277.6
million (27.2% of revenues) in the first quarter of
2019.
Research and development expenses, net were
$80.4 million (7.5% of revenues) in
the first quarter of 2020, as compared to $77.4 million (7.6% of revenues) in the first
quarter of 2019.
_____________
* see page 4
Marketing and selling expenses, net were $70.5 million (6.6% of revenues) in the first
quarter of 2020, as compared to $71.8
million (7.0% of revenues) in the first quarter of 2019.
General and administrative expenses, net were
$58.0 million (5.4% of revenues) in
the first quarter of 2020, as compared to $53.6 million (5.2% of revenues) in the first
quarter of 2019.
Other operating income, net in the first quarter of
2019 was $1.2 million, due to a gain
resulting from an investment and remeasurement of the Company in a
subsidiary.
Non-GAAP(*) operating income was $90.4 million (8.4% of revenues) in the first
quarter of 2020, as compared to $84.0
million (8.2% of revenues) in the first quarter of
2019. GAAP operating income in the first quarter
of 2020 was $80.4 million (7.5%
of revenues), as compared to $76.0
million (7.4% of revenues) in the first quarter of 2019.
Financial expenses, net were $12.5 million in the first quarter of 2020, as
compared to $13.9 million in the
first quarter of 2019.
Other income, net in the first quarter of 2020 was
$1.2 million , as compared to other
expenses of $3.4 million in the
first quarter of 2019. Other income in the first quarter of 2020
includes income of approximately $3.2
million as a result of revaluation of an investment in
a subsidiary accounted for under the fair value method.
Taxes on income were $8.7
million (effective tax rate of 12.6%) in the first quarter
of 2020, as compared to $10.1 million
(effective tax rate of 17.2%) in the first quarter of 2019.
Equity in net earnings of affiliated companies
and partnerships was $3.1 million
(0.3% of revenues) in the first quarter of 2020, as compared to
$2.2 million (0.2% of revenues) in
the first quarter of 2019.
Net income attributable to non-controlling
interests in the first quarter of 2019 was
$0.4 million.
Non-GAAP(*) net income attributable to the
Company's shareholders in the first quarter of 2020 was
$72.0 million (6.7% of revenues), as
compared to $65.8 million (6.4% of
revenues) in the first quarter of 2019. GAAP net income
attributable to the Company's shareholders in the first quarter
of 2020 was $63.6 million (5.9% of
revenues), as compared to $50.5
million (4.9% of revenues) in the first quarter of 2019.
Non-GAAP(*) diluted net earnings per share
attributable to the Company's shareholders were
$1.63 for the first quarter of 2020,
as compared to $1.54 for the first
quarter of 2019. GAAP diluted earnings per share in the
first quarter of 2020 were $1.44, as
compared to $1.18 for the first
quarter of 2019.
The Company's backlog of orders as of March 31,
2020 totaled $10,790 million, as
compared to $9,658 million as of
March 31, 2019. Approximately 63% of the current backlog is
attributable to orders from outside Israel. Approximately 59% of
the current backlog is scheduled to be performed during 2020 and
2021.
Operating cash flow used in the three months ended
March 31, 2020 was $9.9
million, as compared to operating cash flow generated in the
three months ended March 31, 2019 in the amount of
$46.5 million.
_____________
* see page 4
Impact of the COVID-19 Pandemic on the Company:
The Coronavirus disease 2019 (COVID-19) was declared a pandemic
by the World Health Organization in March 2020. COVID-19 has
had significant negative impacts on the worldwide economy,
resulting in disruptions to supply chains and financial markets,
significant travel restrictions, facility closures and
shelter-in-place orders in various locations. Elbit Systems
is closely monitoring the evolution of the COVID-19 pandemic and
its impacts on the Company's employees, customers and suppliers, as
well as on the global economy.
As we reported on April 13, 2020,
we have been taking a number of actions to protect the safety of
our employees and maintain business continuity and our supply
chain. We also reported on a number of activities where we are
leveraging our technological capabilities to assist hospital staffs
and other first responders protecting our communities from the
impact of the pandemic. All of these actions remain
ongoing.
The safety measures implemented across all our sites include
increasing the number of manufacturing line shifts to enhance
social distancing and encouraging employees to work from home where
feasible.
We have initiated business continuity plans to meet our
commitments to our customers. Where necessary we are working on
finding alternative solutions for delivering our products to our
customers on time, including chartering dedicated freighter
aircraft.
During the first quarter of 2020 our business was not materially
impacted by the pandemic. Subsequently, some of our businesses have
begun to experience certain disruptions due to government directed
safety measures, travel restrictions and supply chain delays. To
date, the financial impact to us of these disruptions has not been
material.
We have implemented a series of cost control measures to help
limit the financial impact of the pandemic on the Company, in
parallel to the measures we are taking to maintain business
continuity and deliveries to our customers. Examples of such cost
control measures include temporary reductions of salaries for
certain employees, senior managers and executives, as well as
directors' fees, reductions in discretionary spending and capital
expenditures and the furlough of a small number of employees who
have been unable to fulfill their tasks due to travel and other
pandemic-related restrictions. We also are working on efficiency
initiatives with a number of our suppliers. We are evaluating our
operations on an ongoing basis in order to adapt to the evolving
business environment.
We believe that as of March 31,
2020, Elbit Systems had a healthy balance sheet, adequate
levels of cash and access to credit facilities that provide
liquidity when necessary. We have given high priority to cash
management and adequate cash reserves to run the business. During
the first quarter we drew additional cash from our existing credit
facilities to increase our financial flexibility. We have used part
of our financial resources to secure our supply chain and build
buffer stocks of inventory where required.
The extent of the impact of COVID-19 on the Company's
performance will depend on future developments including the
duration and spread of the pandemic, the measures adopted by
governments to limit the spread of the pandemic and resulting
actions that may be taken by our customers and our supply chain,
all of which are uncertain. As noted in our annual report on Form
20-F, the preparation of financial reports such as our quarterly
financial reports requires us to make judgments, assumptions, and
estimates that affect the amounts reported in such reports.
For our quarterly financial report for the quarter ended
March 31, 2020, we considered the
economic impact of the COVID-19 pandemic on our critical and
significant accounting estimates. The expected impact of the
COVID-19 pandemic did not have a material effect on our significant
judgments, assumptions and estimates reflected in the
report. However, our future results may differ materially from
our estimates; and as events continue to evolve in connection with
the COVID-19 pandemic, the estimates we use in future periods may
change materially.
* 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 including
significant exchange rate differences, significant effects of
retroactive tax legislation, changes in accounting guidance,
financial transactions and other items not considered to be
part of regular ongoing business, 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, except for share and per share
amount)
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2019
|
|
|
|
|
|
|
GAAP gross
profit
|
$
|
289.4
|
|
|
$
|
277.6
|
|
|
$
|
1,136.5
|
|
Adjustments:
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
6.0
|
|
|
5.8
|
|
|
22.0
|
|
Expenses related to
acquisition
|
—
|
|
|
—
|
|
|
55.0
|
|
Non-GAAP
gross profit
|
$
|
295.4
|
|
|
$
|
283.4
|
|
|
$
|
1,213.5
|
|
Percent of
revenues
|
27.6
|
%
|
|
27.7
|
%
|
|
26.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
|
80.4
|
|
|
$
|
76.0
|
|
|
$
|
321.6
|
|
Adjustments:
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
10.0
|
|
|
9.2
|
|
|
36.1
|
|
Expenses related to
acquisition
|
—
|
|
|
—
|
|
|
55.0
|
|
Capital
gain
|
—
|
|
|
—
|
|
|
(31.8)
|
|
Gain from changes in
holdings
|
—
|
|
|
(1.2)
|
|
|
(1.2)
|
|
Non-GAAP operating
income
|
$
|
90.4
|
|
|
$
|
84.0
|
|
|
$
|
379.7
|
|
Percent of
revenues
|
8.4
|
%
|
|
8.2
|
%
|
|
8.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to Elbit Systems' shareholders
|
$
|
63.6
|
|
|
$
|
50.5
|
|
|
$
|
227.9
|
|
Adjustments:
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
10.0
|
|
|
9.2
|
|
|
36.1
|
|
Expenses related to
acquisition
|
—
|
|
|
—
|
|
|
55.0
|
|
Capital
gain
|
—
|
|
|
—
|
|
|
(31.8)
|
|
Impairment of
investment
|
—
|
|
|
—
|
|
|
3.7
|
|
Exchange rate
differences
|
2.9
|
|
|
8.5
|
|
|
24.6
|
|
Revaluation of
investment
|
(3.2)
|
|
|
—
|
|
|
(8.3)
|
|
Gain from changes in
holdings
|
—
|
|
|
(1.2)
|
|
|
(1.2)
|
|
Related tax
benefits
|
(1.3)
|
|
|
(1.2)
|
|
|
(8.2)
|
|
Non-GAAP net
income attributable to Elbit Systems' shareholders
|
$
|
72.0
|
|
|
$
|
65.8
|
|
|
$
|
297.8
|
|
Percent of
revenues
|
6.7
|
%
|
|
6.4
|
%
|
|
6.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
EPS
|
$
|
1.44
|
|
|
$
|
1.18
|
|
|
$
|
5.20
|
|
Adjustments,
net
|
0.19
|
|
|
0.36
|
|
|
1.59
|
|
Non-GAAP diluted
net EPS
|
$
|
1.63
|
|
|
$
|
1.54
|
|
|
$
|
6.79
|
|
Recent Events:
On April 7, 2020, the
Company announced that its wholly-owned Israeli subsidiary, IMI
Systems Ltd. ("IMI"), issued a conditional full cash tender offer
(the "Tender Offer") to acquire all ordinary shares of the Israeli
publicly-traded company, Ashot Ashkelon Industries Ltd. ("Ashot"),
held by the public, then representing approximately 15.02% of
Ashot's outstanding share capital. The remaining ordinary shares,
representing approximately 84.98% of Ashot's outstanding share
capital, were then held by IMI. On April 22,
2020, the Company announced, that IMI updated the
conditional full cash tender offer issued on April 7, 2020, to acquire all ordinary shares of
Ashot ("the updated tender offer"). On April
28, 2020, the Company announced that the conditions for
implementing the updated tender offer issued by IMI to acquire all
ordinary shares of Ashot were not met, and the Updated Tender Offer
will not be implemented.
On April 12, 2020, the
Company announced that it was awarded two contracts valued at a
total of approximately $20 million
from Latin American customers to upgrade the capabilities of their
HermesTM 900 Unmanned Aircraft Systems. Both contracts
will be performed within a 12-month period.
On April 13, 2020, the
Company announced that it was closely monitoring the evolution of
the Coronavirus (COVID-19) pandemic and its impacts on the
Company's employees, customers and suppliers, as well as on the
global economy.
On April 16, 2020, the
Company announced that it was awarded a contract valued at
approximately $15 million from the
Swiss Federal Office for Defence Procurement (Armasuisse) to
provide Command and Control systems for the Tactical Reconnaissance
System of the Swiss Armed Forces. The contract will be performed
over a three-year period.
On April 26, 2020, the
Company announced that it was awarded a contract valued at
approximately $103 million to supply
comprehensive Electronic Warfare suites for an Air Force of an
Asian country. The contract will be performed over a three-year
period and includes long-term integrated logistic support.
On May 19, 2020, the
Company announced that Charlesbank Technology Opportunities Fund, a
fund managed by Charlesbank Capital Partners , invested
approximately $70 million in Elbit
Systems' Israeli subsidiary, Cyberbit Ltd. ("Cyberbit"), of which
approximately $22 million was
invested in Cyberbit and approximately $48
million was paid in consideration of a portion of Elbit
Systems' shares in Cyberbit. As a result of the investment and sale
of equity holdings, Elbit Systems became a minority shareholder in
Cyberbit. Claridge Israel L.P., an
existing shareholder of Cyberbit, which invested $30 million in Cyberbit in June 2018, also participated in this round of
investment.
Events Impacting 2020 Second Quarter Results:
As a result of the recent sale of a portion of the Company's
shares in our Israeli subsidiary Cyberbit, and as a result of the
recent completion of a sale and leaseback real estate transaction
by Elbit Systems of America, the Company expects to record in the
second quarter of 2020 gains (before taxes) of approximately
$40 million. The gains will be
reconciled in the non-GAAP results due to the non-recurring nature
of the gains. The impact of these gains on the financial results
for the second quarter of 2020 will be included in the Company's
report for the quarter, which is planned to be released in
August 2020.
Dividend:
The Board of Directors declared a dividend of $0.35 per share for the first quarter of 2020.
The dividend's record date is June 8,
2020. The dividend will be paid from income generated as
Preferred Income (as defined under Israel tax laws), on
June 22, 2020, net of taxes and
levies, at the rate of 20%.
Conference Call:
The Company will be hosting a conference call on Tuesday, May 26, 2020 at 9:00 a.m. Eastern Time. On the call, the
Company's 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: 1-888-485-2399
Israel Dial-in Number: 03-918-0610
International Dial-in Number: +972-3-918-0610
at 9:00am Eastern
Time; 6:00am Pacific Time;
4:00pm Israel Time
The conference call will also be broadcast live on Elbit
Systems' web-site at http://www.elbitsystems.com. An online replay
will be available on the Company's website from 24 hours after the
call ends.
Alternatively, for two days following the call, investors will
be able to listen to a replay of the call, by dialing one of the
following dial-in numbers:
1-888-782-4291 (US and Canada) or +972-3-925-5900 (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 aerospace, 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,
radios, cyber-based systems and munitions. The Company also focuses
on the upgrading of existing platforms, developing new technologies
for defense, homeland security and commercial applications and
providing a range of support services, including training and
simulation systems.
For additional information, visit: https://elbitsystems.com/,
follow us on Twitter or visit our official Facebook, Youtube and
LinkedIn Channels.
This press release may contain forward‑looking statements
(within the meaning of Section 27A of the Securities Act of 1933,
as amended, Section 21E of the Securities Exchange Act of 1934, as
amended and the Israeli Securities Law, 1968) regarding Elbit
Systems Ltd. and/or its subsidiaries (collectively the Company), to
the extent such statements do not relate to historical or current
facts. Forward-looking statements are based on management's current
expectations, estimates, projections and assumptions about future
events. 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, uncertainties and
assumptions about the Company, which are difficult to predict,
including projections of the Company's future financial results,
its anticipated growth strategies and anticipated trends in its
business. 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; changes in
global health and macro-economic conditions; differences in
anticipated and actual program performance, including the ability
to perform under long-term fixed-price contracts; changes in the
competitive environment; 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. Although the Company
believes the expectations reflected in
the forward-looking statements contained herein are
reasonable, it cannot guarantee future results, level of activity,
performance or achievements. Moreover, neither the Company nor any
other person assumes responsibility for the accuracy and
completeness of any of these forward-looking statements.
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)
|
|
|
|
|
|
March 31,
2020
|
|
December 31,
2019
|
|
Unaudited
|
|
Audited
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
684,345
|
|
|
$
|
221,060
|
|
Short-term bank
deposits and restricted deposits
|
1,144
|
|
|
2,213
|
|
Trade and unbilled
receivables and contract assets, net
|
2,068,687
|
|
|
2,067,846
|
|
Other receivables and
prepaid expenses
|
193,411
|
|
|
160,728
|
|
Inventories,
net
|
1,297,575
|
|
|
1,219,920
|
|
Total current
assets
|
4,245,162
|
|
3,671,767
|
|
|
|
|
Investments in
affiliated companies and partnerships and other
companies
|
207,381
|
|
|
201,574
|
|
Long-term trade and
unbilled receivables and contract assets
|
257,298
|
|
|
259,150
|
|
Long-term bank
deposits and other receivables
|
54,606
|
|
|
58,076
|
|
Deferred income
taxes, net
|
91,548
|
|
|
89,452
|
|
Severance pay
fund
|
273,354
|
|
|
287,104
|
|
|
884,187
|
|
895,356
|
|
|
|
|
Operating lease right
of use assets
|
376,407
|
|
|
365,763
|
|
Property, plant and
equipment, net
|
762,296
|
|
|
766,532
|
|
Goodwill and other
intangible assets, net
|
1,601,750
|
|
|
1,635,940
|
|
Total
assets
|
$
|
7,869,802
|
|
|
$
|
7,335,358
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Short-term bank
credit and loans
|
$
|
837,701
|
|
|
$
|
208,399
|
|
Current maturities of
long-term loans and Series A Notes
|
98,010
|
|
|
199,882
|
|
Operating lease
liabilities
|
50,682
|
|
|
62,565
|
|
Trade
payables
|
838,591
|
|
|
926,338
|
|
Other payables and
accrued expenses
|
1,063,471
|
|
|
1,052,080
|
|
Contract
liabilities
|
805,287
|
|
|
723,581
|
|
|
3,693,742
|
|
3,172,845
|
|
|
|
|
Long-term loans, net
of current maturities
|
434,247
|
|
|
440,124
|
|
Employee benefit
liabilities
|
800,233
|
|
|
836,535
|
|
Deferred income taxes
and tax liabilities, net
|
117,899
|
|
|
114,419
|
|
Operating lease
liabilities
|
334,435
|
|
|
323,287
|
|
Contract
liabilities
|
70,836
|
|
|
62,830
|
|
Other long-term
liabilities
|
223,669
|
|
|
225,478
|
|
|
1,981,319
|
|
2,002,673
|
|
|
|
|
Elbit Systems Ltd.'s
equity
|
2,177,491
|
|
|
2,141,406
|
|
Non-controlling
interests
|
17,250
|
|
|
18,434
|
|
Total
equity
|
2,194,741
|
|
2,159,840
|
Total liabilities
and equity
|
$
|
7,869,802
|
|
|
$
|
7,335,358
|
|
ELBIT SYSTEMS
LTD. CONSOLIDATED STATEMENTS OF INCOME (In
thousands of US Dollars, except for share and per share
amount)
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2019
|
|
Unaudited
|
|
Audited
|
Revenues
|
$
|
1,071,223
|
|
|
$
|
1,021,723
|
|
|
$
|
4,508,400
|
|
Cost of
revenues
|
781,846
|
|
|
744,101
|
|
|
3,371,933
|
|
Gross
profit
|
289,377
|
|
|
277,622
|
|
|
1,136,467
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Research and
development, net
|
80,436
|
|
|
77,354
|
|
|
331,757
|
|
Marketing and
selling, net
|
70,544
|
|
|
71,832
|
|
|
301,400
|
|
General and
administrative, net
|
57,995
|
|
|
53,640
|
|
|
214,749
|
|
Other operating
income, net
|
—
|
|
|
(1,234)
|
|
|
(33,049)
|
|
Total operating
expenses
|
208,975
|
|
|
201,592
|
|
|
814,857
|
|
Operating
income
|
80,402
|
|
|
76,030
|
|
|
321,610
|
|
|
|
|
|
|
|
Financial expenses,
net
|
(12,520)
|
|
|
(13,925)
|
|
|
(69,072)
|
|
Other income
(expenses), net
|
1,230
|
|
|
(3,430)
|
|
|
(6,243)
|
|
Income before income
taxes
|
69,112
|
|
|
58,675
|
|
|
246,295
|
|
|
|
|
|
|
Taxes on
income
|
(8,713)
|
|
|
(10,099)
|
|
|
(19,414)
|
|
|
60,399
|
|
|
48,576
|
|
|
226,881
|
|
|
|
|
|
|
Equity in net
earnings of affiliated companies and partnerships
|
3,146
|
|
|
2,247
|
|
|
1,774
|
|
Net income
|
$
|
63,545
|
|
|
$
|
50,823
|
|
|
$
|
228,655
|
|
Less: net losses
(income) attributable to non-controlling interests
|
19
|
|
|
(366)
|
|
|
(798)
|
|
Net income
attributable to Elbit Systems Ltd.'s shareholders
|
$
|
63,564
|
|
|
$
|
50,457
|
|
|
$
|
227,857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Elbit Systems Ltd.'s shareholders:
|
|
|
|
|
Basic net earnings
per share
|
$
|
1.44
|
|
|
$
|
1.18
|
|
|
$
|
5.20
|
|
Diluted net earnings
per share
|
$
|
1.44
|
|
|
$
|
1.18
|
|
|
$
|
5.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares (in thousands)
|
|
|
|
|
|
Shares used in
computation of basic earnings per share
|
44,198
|
|
|
42,789
|
|
|
43,787
|
|
Shares used in
computation of diluted earnings per share
|
44,204
|
|
|
42,792
|
|
|
43,848
|
|
ELBIT SYSTEMS
LTD. CONSOLIDATED STATEMENTS OF CASH FLOW (In
thousands of US dollars)
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2019
|
|
Unaudited
|
|
Audited
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net
income
|
$
|
63,545
|
|
|
$
|
50,823
|
|
|
$
|
228,655
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
35,400
|
|
|
33,206
|
|
|
137,146
|
|
Write-off
impairment
|
—
|
|
|
—
|
|
|
3,692
|
|
Stock-based
compensation
|
1,021
|
|
|
1,090
|
|
|
3,994
|
|
Amortization of Series
A Notes premium and related issuance costs, net
|
(23)
|
|
|
(23)
|
|
|
(93)
|
|
Deferred income taxes
and reserve, net
|
1,289
|
|
|
4,072
|
|
|
(15,059)
|
|
Gain on sale of
property, plant and equipment
|
(240)
|
|
|
(459)
|
|
|
(34,154)
|
|
Loss (gain) on sale of
investments and remeasurement of investment held
under fair value method
|
(2,759)
|
|
|
116
|
|
|
(7,928)
|
|
Equity in net earnings
of affiliated companies and partnerships,
net of dividend received (*)
|
(2,200)
|
|
|
(897)
|
|
|
8,526
|
|
Changes in operating
assets and liabilities, net of amounts acquired:
|
|
|
|
|
|
Decrease (increase) in
short and long-term trade and unbilled receivables
and contract assets and prepaid
expenses
|
(29,869)
|
|
|
62,262
|
|
|
(267,924)
|
|
Increase in
inventories, net
|
(77,655)
|
|
|
(72,062)
|
|
|
(55,841)
|
|
Increase (decrease) in
trade payables, other payables and accrued expenses
|
(68,059)
|
|
|
(48,830)
|
|
|
115,621
|
|
Severance, pension and
termination indemnities, net
|
(20,049)
|
|
|
5,126
|
|
|
4,629
|
|
Increase (decrease) in
contract liabilities
|
89,712
|
|
|
12,093
|
|
|
(174,582)
|
|
Net cash provided by
(used in) operating activities
|
(9,887)
|
|
|
46,517
|
|
|
(53,318)
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Purchase of property,
plant and equipment and other assets
|
(32,317)
|
|
|
(27,140)
|
|
|
(137,604)
|
|
Acquisition of
subsidiaries and business operations
|
—
|
|
|
(5,601)
|
|
|
(357,144)
|
|
Proceeds from premises
evacuation grants receivables
|
—
|
|
|
—
|
|
|
344,913
|
|
Investments in
affiliated companies and other companies
|
(471)
|
|
|
(1,350)
|
|
|
(8,567)
|
|
Proceeds from sale of
property, plant and equipment
|
1,330
|
|
|
983
|
|
|
36,671
|
|
Investment in long-term
deposits, net
|
(160)
|
|
|
—
|
|
|
(38)
|
|
Investment in
short-term deposits
|
(7)
|
|
|
(15,649)
|
|
|
(2,314)
|
|
Proceeds from sale of
short-term deposits
|
1,066
|
|
|
20,584
|
|
|
17,294
|
|
Net cash used in
investing activities
|
(30,559)
|
|
|
(28,173)
|
|
|
(106,789)
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Issuance of treasury
shares, net
|
—
|
|
|
—
|
|
|
184,840
|
|
Repayment of long-term
loans
|
(105,625)
|
|
|
(893)
|
|
|
(243,324)
|
|
Proceeds from long-term
loans
|
—
|
|
|
—
|
|
|
350,000
|
|
Repayment of Series A
Notes
|
—
|
|
|
—
|
|
|
(55,532)
|
|
Dividends
paid
|
(19,946)
|
|
|
—
|
|
|
(62,578)
|
|
Change in short-term
bank credit and loans, net
|
629,302
|
|
|
(41,271)
|
|
|
(718)
|
|
Net cash (used in)
provided by financing activities
|
503,731
|
|
|
(42,164)
|
|
|
172,688
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
463,285
|
|
|
(23,820)
|
|
|
12,581
|
|
Cash and cash
equivalents at the beginning of the year
|
221,060
|
|
|
208,479
|
|
|
208,479
|
|
Cash and cash
equivalents at the end of the period
|
$
|
684,345
|
|
|
$
|
184,659
|
|
|
$
|
221,060
|
|
|
|
|
|
|
|
* Dividend
received from affiliated companies and partnerships
|
$
|
946
|
|
|
$
|
1,350
|
|
|
$
|
10,300
|
|
ELBIT SYSTEMS
LTD. DISTRIBUTION OF REVENUES
|
|
|
|
|
Consolidated
Revenues by Areas of Operation:
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2019
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
Airborne
systems
|
387.6
|
|
|
36.2
|
|
|
368.3
|
|
|
36.1
|
|
|
1,617.2
|
|
|
35.9
|
|
C4ISR
systems
|
240.9
|
|
|
22.5
|
|
|
243.6
|
|
|
23.8
|
|
|
1,161.5
|
|
|
25.8
|
|
Land
systems
|
298.2
|
|
|
27.8
|
|
|
303.4
|
|
|
29.7
|
|
|
1,228.3
|
|
|
27.2
|
|
Electro-optic
systems
|
119.4
|
|
|
11.2
|
|
|
77.9
|
|
|
7.6
|
|
|
374.4
|
|
|
8.3
|
|
Other (mainly
non-defense engineering and production services)
|
25.1
|
|
|
2.3
|
|
|
28.5
|
|
|
2.8
|
|
|
127.0
|
|
|
2.8
|
|
Total
|
1,071.2
|
|
|
100.0
|
|
|
1,021.7
|
|
|
100.0
|
|
|
4,508.4
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Revenues by Geographical Regions:
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2019
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
Israel
|
246.0
|
|
|
23.0
|
|
|
261.9
|
|
|
25.6
|
|
|
1,064.8
|
|
|
23.6
|
|
North
America
|
366.8
|
|
|
34.2
|
|
|
275.6
|
|
|
27.0
|
|
|
1,260.5
|
|
|
28.0
|
|
Europe
|
184.8
|
|
|
17.3
|
|
|
196.5
|
|
|
19.2
|
|
|
853.7
|
|
|
18.9
|
|
Asia-Pacific
|
210.0
|
|
|
19.6
|
|
|
216.6
|
|
|
21.2
|
|
|
1,029.6
|
|
|
22.8
|
|
Latin
America
|
32.6
|
|
|
3.0
|
|
|
31.8
|
|
|
3.2
|
|
|
158.0
|
|
|
3.5
|
|
Other
countries
|
31.0
|
|
|
2.9
|
|
|
39.3
|
|
|
3.8
|
|
|
141.8
|
|
|
3.2
|
|
Total
|
1,071.2
|
|
|
100.0
|
|
|
1,021.7
|
|
|
100.0
|
|
|
4,508.4
|
|
|
100.0
|
|
Company
Contact:
Joseph Gaspar,
Executive VP & CFO
Tel:
+972-77-2946663
j.gaspar@elbitsystems.com
Rami Myerson,
Director, Investor Relations
Tel:
+972-77-2948984
rami.myerson@elbitsystems.com
David Vaaknin,
VP, Brand & Corporate Communications
Tel:
+972-77-2946691
david.vaaknin@elbitsystems.com
|
IR
Contact:
Ehud
Helft
Kenny
Green
GK Investor
Relations
Tel:
1-646-201-9246
elbitsystems@gkir.com
|
View original
content:http://www.prnewswire.com/news-releases/elbit-systems-reports-first-quarter-2020-results-301064982.html
SOURCE Elbit Systems Ltd.