ESLT Elbit Systems Ltd

Revenues Increased by 41.4% Year over Year to $344.8 Million HAIFA, Israel, August 8 /PRNewswire-FirstCall/ -- Elbit Systems Ltd. (the "Company") (NASDAQ:ESLT), the international defense company, today reported its consolidated results for the second quarter ended June 30, 2006. The Company's backlog of orders as of June 30, 2006 reached $3,599 million, a 7.5% increase as compared with $3,347 million at the end of 2005. Approximately 74% of the backlog relates to orders outside of Israel. Approximately 56% of the Company's backlog as of June 30, 2006 is scheduled to be performed over the next two quarters of 2006 and during 2007. Consolidated revenues for the second quarter of 2006 increased by 41.4% to $344.8 million from $243.8 million in the second quarter of 2005. Gross profit for the second quarter of 2006 was $89.6 million (26% of revenues), as compared with gross profit of $66.1 million (27.1% of revenues) in the second quarter of 2005. Reported consolidated net income for the second quarter of 2006 was $15.1 million (4.4% of revenues), as compared with $10.9 million (4.5% of revenues) in the second quarter of 2005. Reported diluted earnings per share for the second quarter of 2006 were $0.36, as compared with $0.26 for the second quarter of 2005. The Company had one time in-process R&D write-offs, related to the purchase in the second quarter of an additional 4.3% (approximately) of the outstanding shares of Tadiran Communications Ltd. ("Tadiran"), and the purchase of 20% of Sandel Aviation, Inc. Excluding these in-process R&D write-offs, the Company's net income for the second quarter of 2006 was $17.2 million (or 5.0% of revenues), and the diluted earnings per share were $0.41, as compared to $14.4 million and $0.35, respectively, in the second quarter of 2005. During the first six months of 2006 the Company produced an operating cash flow of $104.4 million. The President and CEO of Elbit Systems, Joseph Ackerman, commented: "Our second quarter results reported today underscore Elbit Systems' continued growth in revenues and profit. We maintain our focus on generating new business and bringing newly developed technologies and products to the market. At the same time, we continue to explore new markets as well as to further develop our market position in existing areas. We also are engaged in the ongoing implementation of the synergies in the recent acquisitions of Elisra and Tadiran Communications, including developing new integrated solutions." Mr. Ackerman added, "We have operated continuously throughout the recent events which have affected the north of Israel and have maintained our ability to meet our commitments to both our international customers and to the Israeli Ministry of Defense. As a global group Elbit enjoys the support of our international subsidiaries and their employees, and we extend our thanks to our employees for the strength and dedication they have demonstrated during this period. Our plans for 2006 and beyond remain on target." The Board of Directors declared a dividend of $0.15 per share for the second quarter of 2006. The dividend's record date is August 29, 2006, and the dividend will be paid on September 11, 2006, net of taxes and levies, at the rate of 18.85%. Conference Call The Company will also be hosting a conference call on the same day, Tuesday, August 8, at 9.00am EDT. On the call, management will review and discuss the second quarter 2006 results and will be available to answer questions. To participate, please call one of the following teleconferencing numbers. Please begin placing your calls at least 10 minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number. US Dial-in Numbers: 1-866-229-7198 UK Dial-in Number: 0-800-917-5108 Israel Dial-in Number: 03-918-0610 International Dial-in Number: +972-3-918-0610 At: 9:00am Eastern Time 6:00am Pacific Time 2:00pm London Time 4:00pm Israel Time This call will 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, and will be available online for 30 days. Alternatively, for two days following the end of the call, investors will be able to dial a replay number to listen to the call. The dial-in number is either: 1-888-269--0005 (US), 0-800-169-8104 (UK) or +972-3-925-5925 (Israel and International). About Elbit Systems Ltd. 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. Elbit Systems Ltd. Consolidated Balance Sheets (In thousand of US Dollars) June 30 December 31 2006 2005 Unaudited Audited Assets Current Assets: Cash and short term deposits 119,817 94,629 Trade receivable and others 421,571 416,067 Inventories, net of advances 369,567 328,428 Total current assets 910,955 839,124 Affiliated Companies & other Investments 231,457 201,339 Long-term receivables & others 166,429 154,650 Fixed Assets, net 285,447 284,997 Other assets, net 133,238 137,364 1,727,526 1,617,474 Liabilities and Shareholders Equity Current liabilities 725,618 612,168 Long-term liabilities 526,150 541,622 Minority Interest 12,782 12,907 Shareholders equity 462,976 450,777 1,727,526 1,617,474 Elbit Systems Ltd. Consolidated Statements of Income (In thousand of US Dollars, except for per share amounts) Six Months Ended Three Months Ended Year Ended June 30 June 30 December 31 2006 2005 2006 2005 2005 Unaudited Unaudited (Audited) Revenues 679,185 474,470 344,815 243,782 1,069,876 Cost of revenues 502,067 346,821 255,237 177,695 786,616 Restructurirng expenses - - - - 3,488 Gross Profit 177,118 127,649 89,578 66,087 279,772 Research and development, 39,789 32,961 18,351 17,795 71,903 net Marketing and selling 53,630 34,386 27,382 17,740 78,648 General and administrative 37,727 25,424 18,720 12,652 54,417 IPR&D write-off - - - - 7,490 Total operating expenses 131,146 92,771 64,453 48,187 212,458 Operating income 45,972 34,878 25,125 17,900 67,314 Financial expenses, net (10,918) (3,197) (6,677) (1,465) (11,472) Other income, net 160 (185) (748) (354) (5,326) Income before income taxes 35,214 31,496 17,700 16,081 50,516 Taxes on income 9,366 8,043 4,762 4,056 16,335 25,848 23,453 12,938 12,025 34,181 Equity in net earnings (losses) of affiliated companies and partnership* 3,614 (127) 1,347 (1,169) (1,636) Minority rights 77 273 786 53 (58) Net income 29,539 23,599 15,071 10,909 32,487 Earnings per share Basic net earnings per $ 0.72 $ 0.58 $ 0.37 $ 0.27 $ 0.80 share Diluted net earnings per $ 0.71 $ 0.57 $ 0.36 $ 0.26 $ 0.78 share * 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 Investor Relations 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

Copyright