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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