ESLT Elbit Systems Ltd

Revenues Increased by 45% Year Over Year to $334.4 Million HAIFA, Israel, May 16 /PRNewswire-FirstCall/ -- Elbit Systems Ltd. (the "Company") (NASDAQ:ESLT), the international defense company, today reported its consolidated results for the first quarter ended March 31, 2006. This is the first full quarter in which the Company consolidates the financial results of Elisra Electronic Systems, a leading company in the areas of EW Suites, airborne warning systems, ELINT systems and data links, in which the Company acquired a 70% interest on November 30, 2005. The Company's backlog of orders as of March 31, 2006 reached $3,523 million, as compared with $3,347 million at the end of 2005. 73% of the backlog relates to orders outside of Israel. Approximately 62% of the Company's backlog as of March 31, 2006 is scheduled to be performed over the next three quarters of 2006 and during 2007. Consolidated revenues for the first quarter of 2006 increased by 45% to $334.4 million from $230.7 million in the corresponding quarter in 2005. Consolidated net income for the first quarter of 2006 was $14.5 million (4.3% of revenues), as compared with $12.7 million (5.5% of revenues) in the same period in 2005. Diluted earnings per share for the first quarter of 2006 were $0.35, as compared with $0.30 for the first quarter of 2005. Gross profit for the first quarter of 2006 was $87.5 million (26.2% of revenues), as compared with gross profit of $61.6 million (26.7% of revenues) in the first quarter of 2005. During the first quarter of 2006 the Company produced operating cash flow of $75.4 million. The President and CEO of Elbit Systems, Joseph Ackerman, commented: "We are pleased to report our first quarterly results for 2006, in which we continue to demonstrate growth in revenues, profits, backlog and cash flow. During the first quarter we won several important projects in new markets and based on new technologies. We intend to continue our efforts in expanding our portfolio of products and markets while improving profitability. In the first quarter we achieved double digit organic growth that was complemented by consolidating Elisra's full quarter revenues for the first time and we are successfully proceeding with the integration of the newly acquired businesses into the Elbit Systems Group." The Board of Directors declared a dividend of $0.15 per share for the first quarter of 2006. The dividend's record date is June 6, 2006, and the dividend will be paid on June 19, 2006, net of taxes and levies, at the rate of 18.5%. Conference Call The Company will be hosting a webcast and conference call today, Tuesday, May 16th at 10.30am EST. On the call, management will review and discuss the results, and will be available to answer investor questions. To participate, please access Elbit Systems' investor relations web-site at http://www.elbitsystems.com/. An online replay will be available 2 hours after the call end, and will be available for 30 days. Alternatively, please call one of the teleconferencing numbers that follow. Please begin placing your calls at least 5 minutes before the conference call commences. If you are unable to connect using one of the toll-free numbers, please try the international dial-in number. US Dial-in Numbers: 1-866-744-5399 UK Dial-in Number: 0-800-917-9141 Israel Dial-in Number: 03-918-0610 International Dial-in Number: +972-3-918-0610 At: 10:30am Eastern Standard Time, 7:30am Pacific Standard Time, 3:30pm UK Time or 5:30pm Israel Time. In addition, a replay of the call will be available by telephone starting two hours after the call ends until Thursday, May 19, 10:00 am EST. To access the replay please dial: +1-877-332-1104 (US) or +972-3-925-5945 (international and Israel) Elbit Systems Ltd. is an international defense electronics company engaged in a wide range of defense-related programs throughout the world. The Elbit Systems Group, which includes the company and its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence, surveillance and reconnaissance ("C4ISR"), advanced electro-optic and space technologies, EW suites, airborne warning systems, ELINT systems, data links and military communications systems and equipment. The Group also focuses on the upgrading of existing military platforms and developing new technologies for defense and homeland security applications. For further information, please visit the Company web site at http://www.elbitsystems.com/ Statements in this press release which are not historical data are forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the company's control, which may cause actual results, performance or achievements of the company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those detailed in the company's periodic filings with the Securities and Exchange Commission. ELBIT SYSTEMS LTD. CONSOLIDATED BALANCE SHEETS (In thousand of US Dollars) March 31 December 31 2006 2005 Unaudited Audited Assets Current Assets: Cash and short term deposits 88,023 94,629 Trade receivable and others 421,560 416,067 Inventories, net of advances 350,493 328,428 Total current assets 860,076 839,124 Affiliated Companies & other Investments 203,841 201,339 Long-term receivables & others 156,827 151,557 Fixed Assets, net 285,979 284,997 Other assets, net 140,658 142,728 1,647,381 1,619,745 Liabilities and Shareholder's Equity Current liabilities 678,851 612,168 Long-term liabilities 496,897 543,893 Minority Interest 13,570 12,907 Shareholder's equity 458,063 450,777 1,647,381 1,619,745 ELBIT SYSTEMS LTD. CONSOLIDATED STATEMENTS OF INCOME (In thousand of US Dollars, except for per share amounts) Three Months Ended Year Ended March 31 December 31 2006 2005 2005 Unaudited Audited Revenues 334,370 230,688 1,069,876 Cost of revenues 246,830 169,126 786,616 Restructuring expenses - - 3,488 Gross Profit 87,540 61,562 279,772 Research and 21,438 15,166 71,903 development, net Marketing and selling 26,248 16,646 78,648 General and administrative 19,007 12,772 54,417 IPR&D write-off - - 7,490 Total operating expenses 66,693 44,584 212,458 Operating income 20,847 16,978 67,314 Financial (4,241) (1,732) (11,472) expenses, net Other income (expenses), net 908 169 (5,326) Income before income taxes 17,514 15,415 50,516 Provisions for income taxes 4,604 3,987 16,335 12,910 11,428 34,181 Equity in net earnings (losses) of affiliated companies and partnership* 2,267 1,042 (1,636) Minority rights (709) 220 (58) Net income 14,468 12,690 32,487 Earnings per share Basic net earnings per share 0.35 0.31 0.80 Diluted net earnings per share 0.35 0.30 0.78 * Includes IPR&D write-off of $8,500 in 2005 Company Contact: Ilan Pacholder V.P. Finance & Capital Markets and Corporate Secretary Elbit Systems Ltd Tel: +972-4-831-6632 Fax: +972-4-831-6659 E-mail: IR Contact: Ehud Helft/Kenny Green GK International Tel: +1-866-704-6710 Fax: +972-3-607-4711 E-mail: E-mail: DATASOURCE: Elbit Systems Ltd CONTACT: Company Contact: Ilan Pacholder, V.P. Finance & Capital Markets and Corporate Secretary, Elbit Systems Ltd, Tel: +972-4-831-6632, Fax: +972-4-831-6659, E-mail: . IR Contact: Ehud Helft/Kenny Green, GK International, Tel: +1-866-704-6710, Fax: +972-3-607-4711, E-mail: , E-mail:

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