ESLT Elbit Systems Ltd

Record Revenues, Net Profit, Backlog and Operating Cash Flow HAIFA, Israel, March 14 /PRNewswire-FirstCall/ -- Elbit Systems Ltd. (the "Company") (NASDAQ:ESLT)(TASE:ESLT), the international defense electronics company, today reported its consolidated results for the fourth quarter and year-ended December 31, 2006. The Company's backlog of orders as of December 31, 2006 reached $3.79 billion, an increase of 13.1% as compared to $3.35 billion at the end of 2005. 68% of the backlog relates to orders outside of Israel. Approximately 70% of the Company's backlog as of December 31, 2006 is scheduled to be performed during 2007 and 2008. Consolidated revenues for the year ended December 31, 2006 increased by 42.4% to $1,523 million, as compared to $1,070 million in 2005. Consolidated revenues for the fourth quarter of 2006 increased by 45.3% to $467.4 million, as compared to $321.8 million in the corresponding quarter of 2005. Consolidated net earnings for the year ended December 31, 2006 increased by 122% to $72.2 million, as compared to $32.5 million in 2005. Diluted earnings per share ("EPS") in 2006 were $1.72, as compared to $0.78 in 2005. Consolidated net earnings for the fourth quarter of 2006 were $24.0 million, as compared to a net loss of $5.7 million in the same period of 2005. Diluted EPS for the fourth quarter of 2006 was $0.57, as compared to $(0.14) for the fourth quarter of 2005. Gross profit for the year ended December 31, 2006 was $373.5 million, as compared to gross profit of $279.8 million in 2005, and the gross profit margin in 2006 was 24.5%, as compared to 26.1% in 2005. The Company's annual gross profit margin was negatively affected by approximately 2 percentage points due to the results of the Company's 70%-owned subsidiary Elisra Electronic Systems Ltd. ("Elisra"). Gross profit for the fourth quarter of 2006 was $100.2 million, as compared to gross profit of $78.4 million in the fourth quarter of 2005, and the gross profit margin in the fourth quarter of 2006 was 21.4%, as compared to 24.4% in the fourth quarter of 2005. The Company's fourth quarter 2006 gross profit margin was negatively affected by approximately 3.8 percentage points due to Elisra's results. It should be noted that in 2005 the Company's full year and fourth quarter gross profit and net profit were affected by one-time IPR&D and other one-time expenses and write-offs related to the purchases of shares in Elisra and in Tadiran Communications Ltd. Operating cash flow produced by the Company in 2006 was $201 million, as compared to $187.6 in 2005. The President and CEO of Elbit Systems, Joseph Ackerman, commented: "I am pleased to report another year of record financial results for Elbit Systems, continuing our revenue and profitability growth trend. We have also begun to see the results of our long-term development strategy that enabled us to pass $1.5 billion in revenues for the first time and to deliver another year of record net profit and cash flow. Our results were achieved despite the negative impact from Elisra's financial performance, and we intend to continue the Elisra turn-around in 2007, making it a contributor to our financial results, while maintaining our growth and profitability patterns". Mr. Ackerman added: "We see the results of our continued investments in R&D and in developing leading edge technologies. These technologies and our proven track record enabled us to win prestigious and important contracts and to further enhance our network of customers and business partners. I believe that the results of all these efforts will be reflected in our performance in 2007 and beyond as we continue the execution of our growth strategy both organically and through selective acquisitions". The Board of Directors has declared a dividend of 0.16 per share for the fourth quarter of 2006. The dividend will be paid on April 16, 2007, net of taxes and levies, at the rate of 18.15%. The record date of the dividend is April 1, 2007. Conference Call The Company will be hosting a conference call on Wednesday, March 15, at 9.00am EDT. To participate, please call one of the following teleconferencing numbers. Please begin placing your calls at least 5 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: 1-888-407-2553 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 1:00 pm Greenwich Mean Time 3:00 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 end of the call, investors will be able to dial a replay number to listen to the call. The dial-in number is either: 1-888-254-7270 (US) 0-800-917-4256 (UK) or +972-3-925-5942 (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. Contacts: Company Contact: IR Contact: Joseph Gaspar, Corporate VP & CFO Ehud Helft / Kenny Green Dalia Rosen, Director of Corporate Communications Elbit Systems Ltd G.K. Investor Relations Tel: +972-4-8316663 Tel: +1-866-704-6710 Fax: +972-4-8316944 Fax: +972-3-607-4711 E-mail: E-mail: 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) December 31 December 31 2006 2005 Audited Audited Assets Current Assets: Cash and short term deposits 85,400 94,629 Trade receivable and others 471,194 416,067 Inventories, net of advances 371,962 328,428 Total current assets 928,556 839,124 Affiliated Companies & other 235,723 201,339 Investments Long-term receivables & others 182,180 159,505 Fixed Assets, net 294,628 284,997 Other assets, net 128,995 137,172 1,770,082 1,622,137 Liabilities and Shareholder's Equity Current liabilities 810,591 612,168 Long-term liabilities 458,742 546,285 Minority Interest 6,871 12,907 Shareholder's equity 493,878 450,777 1,770,082 1,622,137 ELBIT SYSTEMS LTD. CONSOLIDATED STATEMENTS OF INCOME (In thousand of US Dollars, except for per share amounts) For the Year Ended Three Months Ended December 31 December 31 2006 2005 2006 2005 Audited Unaudited Revenues 1,523,243 1,069,876 467,388 321,760 Cost of revenues 1,149,768 786,616 367,163 239,826 Restructuirng expenses - 3,488 - 3,488 Gross Profit 373,475 279,772 100,225 78,446 Research and development, net 92,232 71,903 27,869 18,460 Marketing and selling 111,880 78,648 30,853 23,953 General and administrative 77,505 54,417 20,051 16,155 IPR&D write-off - 7,490 - 7,490 Total operating expenses 281,617 212,458 78,773 66,058 Operating income 91,858 67,314 21,452 12,388 Financial expenses, net (21,456) (11,472) (6,093) (5,199) Other income (expenses), net 1,814 (5,326) 1,423 (5,134) Income before income taxes 72,216 50,516 16,782 2,055 Provisions for income taxes 20,694 16,335 4,049 4,046 51,522 34,181 12,733 (1,991) Equity in net earnings (losses) of affiliated companies and partnership * 14,743 (1,636) 6,554 (2,974) Minority rights 5,977 (58) 4,673 (710) Net income 72,242 32,487 23,960 (5,675) Earnings per share Basic net earnings per share 1.75 0.80 0.57 (0.14) Diluted net earnings per share 1.72 0.78 0.57 (0.14) * Includes IPR&D write-off of $8,500 and $2,200 in 2005 and 2006, respectively DATASOURCE: Elbit Systems Ltd CONTACT: Contacts: Company Contact: Joseph Gaspar, Corporate VP & CFO, Dalia Rosen, Director of Corporate Communications, Elbit Systems Ltd, Tel: +972-4-8316663, Fax: +972-4-8316944, E-mail: , ; IR Contact: Ehud Helft / Kenny Green, G.K. Investor Relations, Tel: +1-866-704-6710, Fax: +972-3-607-4711, E-mail:

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