ESLT Elbit Systems Ltd

Record Revenues, Net Profit and Backlog of Orders HAIFA, Israel, November 14 /PRNewswire-FirstCall/ -- Elbit Systems Ltd. (the "Company") (NASDAQ:ESLT), the international defense company, today reported its consolidated results for the third quarter ended September 30, 2006. The Company's backlog of orders as of September 30, 2006 increased to $3,775 million, as compared to $ 3,347 million at the end of 2005. Approximately 73% of the backlog relates to orders outside of Israel. Approximately 46% of the Company's backlog as of September 30, 2006 is scheduled to be performed over the last quarter of 2006 and during 2007. Consolidated revenues for the third quarter of 2006 increased by 37.7% to $376.7 million from $273.6 million in the third quarter of 2005. Gross profit for the third quarter of 2006 increased by 30.5% to $96.1 million (25.5% of revenues), as compared with gross profit of $73.7 million (26.9% of revenues) in the third quarter of 2005. The gross profit margin in the third quarter of 2006 was affected mainly by the lower gross profit margin generated by Elisra, which has been consolidated in the Company's financial reports commencing December 2005. Consolidated net income for the third quarter of 2006 increased by 28.7% to $18.7 million (5% of revenues), as compared with $14.6 million (5.3% of revenues) in the third quarter of 2005. Diluted earnings per share for the third quarter of 2006 were $0.45, as compared with $0.35 for the third quarter of 2005. The Company's net income in the third quarter of 2005 included $1.2 million in one-time In-Process R&D expense related to acquisitions made during that quarter. Cash flow - During the first nine months of 2006 the Company generated an operating cash flow of $150.9 million. The President and CEO of Elbit Systems, Joseph Ackerman, commented: "Our financial results continue to set new records in revenues, net profit and backlog. We are pleased with the results reported today, which demonstrate the success of our long-term focus on developing cutting edge technologies and close working relationships with global defense industry leaders. This strategy enabled us recently to win significant projects in the important areas of Homeland Security and civil aviation, while our subsidiaries, including Elbit Systems of America, Elop, Elisra and Cyclone have also generated important new contracts. We remain committed to improving our profitability and increasing efficiency where needed within the Group." The Board of Directors declared a dividend of $0.15 per share for the third quarter of 2006. The dividend's record date is November 28, 2006, and the dividend will be paid on December 11, 2006, net of taxes and levies, at the rate of 18.85%. Conference Call The Company will also be hosting a conference today, Tuesday, November 14, 2006 at 10.30am EST. On the call, management will review and discuss its third 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: 1-888-281-1167 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 Time 7:30am Pacific Time 3:30pm London Time 5:30pm 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. 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: +1-877-332-1104 (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. 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) September 30 December 31 2006 2005 Unaudited Audited Assets Current Assets: Cash and short term deposits 69,172 94,629 Trade receivable and others 418,287 416,067 Inventories, net of advances 359,787 328,428 Total current assets 847,246 839,124 Affiliated Companies & other Investments 236,418 201,339 Long-term receivables & others 172,607 154,650 Fixed Assets, net 288,832 284,997 Other assets, net 131,160 137,364 1,676,263 1,617,474 Liabilities and Shareholder's Equity Current liabilities 720,120 612,168 Long-term liabilities 466,239 541,622 Minority Interest 11,495 12,907 Shareholder's equity 478,409 450,777 1,676,263 1,617,474 Elbit Systems Ltd. Consolidated Statements of Income (In thousand of US Dollars, except for per share amounts) Nine Months Three Months Year Ended Ended Ended September 30 September 30 December 31 2006 2005 2006 2005 2005 Unaudited Unaudited (Audited) Revenues 1,055,855 748,116 379,670 273,646 1,069,876 Cost of revenues 782,605 546,790 280,538 199,969 786,616 Restructuring expenses - - - - 3,488 Gross Profit 273,250 201,326 96,132 73,677 279,772 Research and development, net 64,363 53,443 24,574 20,482 71,903 Marketing and selling 81,027 54,695 27,397 20,309 78,648 General and administrative 57,454 38,262 19,272 12,838 54,417 IPR&D write-off - - - - 7,490 Total operating expenses 202,844 146,400 71,698 53,629 212,458 Operating income 70,406 54,926 24,434 20,048 67,314 Financial expenses, net (15,363) (6,273) (4,445) (3,076) (11,472) Other income, net 391 (192) 231 (6) (5,326) Income before income taxes 55,434 48,461 20,220 16,966 50,516 Taxes on income 16,645 12,289 7,279 4,246 16,335 38,789 36,172 12,941 12,720 34,181 Equity in net earnings (losses) of affiliated companies and partnership 8,189 1,339 4,575 1,465 (1,636) Minority rights 1,304 652 1,227 379 (58) Net income 48,282 38,163 18,743 14,564 32,487 Earnings per share Basic net earnings per share $ 1.17 $ 0.94 $ 0.45 $ 0.36 $ 0.80 Diluted net earnings per share $ 1.15 $ 0.92 $ 0.45 $ 0.35 $ 0.78 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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