Revenues Increased by 33% to $2.64 Billion in 2008 With Net Profit
of $204 Million and EPS of $4.78 HAIFA, Israel, March 11
/PRNewswire-FirstCall/ -- Elbit Systems Ltd. (the "Company")
(NASDAQ:ESLTNASDAQ:TASE:NASDAQ:ESLT), the international defense
electronics company, today reported its consolidated results for
the fourth quarter and full year ended December 31, 2008. (Logo:
http://www.newscom.com/cgi-bin/prnh/20080408/300441 ) Fourth
quarter 2008 results Consolidated revenues for the fourth quarter
of 2008 increased by 18.1% to $697.9 million, from $591.1 million
in the fourth quarter of 2007. Gross profit for the fourth quarter
of 2008 increased by 30.2% to $203.4 million (29.1% of revenues),
as compared with gross profit of $156.2 million (26.4% of revenues)
in the fourth quarter of 2007. During the fourth quarter the
Company had a $1 million IPR&D expense due to the acquisition
of Innovative Concepts, Inc., a wireless communications technology
firm in the U.S. Operating income for the fourth quarter of 2008
increased 62.7% to $62.2 million (8.9% of revenues), as compared
with operating income of $38.2 million (6.5% of revenues) in the
fourth quarter of 2007. During the fourth quarter, Mediguide Inc.,
a non-core subsidiary in which the Company owned a 41.3% interest
on a fully diluted basis, was purchased by St. Jude Medical. The
Company recorded net income of $74.4 million from this sale in the
fourth quarter of 2008. In addition, there was a one-time
impairment charge of $10.5 million relating to Sandel Avionics,
Inc., a U.S. company in which the Company invested $12.4 million in
2007. Thus the aggregate contribution to the quarter's results from
these one-time effects was an additional $63.9 million to the net
profit. Financial expenses for the fourth quarter of 2008 were $3.8
million, which included a write-off of Auction Rate Securities
amounting to $9.6 million. The total amount of Auction Rate
Securities remaining on the balance sheet is $3 million.
Consolidated net income for the fourth quarter was $105.3 million
(15.1% of revenues) compared with net income of $31.9 million (5.4%
of revenues) in the fourth quarter of 2007. Diluted earnings per
share for the fourth quarter were $2.48, compared with $0.75 for
the fourth quarter of 2007. Excluding the above-mentioned one-time
effects, namely the IPR&D expense, the proceeds from the sale
of Mediguide and the impairment charge in Sandel, consolidated net
income for the fourth quarter of 2008 increased by 32.6% over the
fourth quarter of 2007 to $42.3 million (6.1% of revenues). This
translates to fourth quarter diluted earnings per share of $1.00.
Full year 2008 results Consolidated revenues for the year ended
December 31, 2008 increased by 33.1% to $2,638 million, as compared
to $1,982 million in 2007. Gross profit for the year ended December
31, 2008 grew 48.6% to $767.4 million (29.1% of revenues), as
compared to gross profit of $516.4 million (26.1% of revenues) in
2007. Operating income for the year ended December 31, 2008 grew
131% to $249 million (9.4% of revenues), from $108 million (5.4% or
revenues) in 2007. It is noted that the 2007 annual results were
negatively affected by one-time charges related to the completion
of the Company's acquisition of the remaining shares of Tadiran
Communications Ltd. in April 2007. The Company recorded $27.1
million in expenses in relation to the acquisition. Financial
expenses for the year were $36.8 million, which included a
write-off of Auction Rate Securities totaling to $18.7 million,
compared to financial expenses of $19.3 million in 2007, which
included a $10 million write-off. Consolidated net income for 2008
were $204.2 million (7.7% of revenues), compared with $76.7 million
(3.9% of revenues) in 2007. Diluted earnings per share, for 2008
was $4.78, compared with $1.81 in 2007. Excluding the one-time
effects, namely the IPR&D expense, the proceeds from the sale
of Mediguide and the impairment charge in Sandel, consolidated net
earnings for the year ended December 31, 2008, were $141.3 million
compared with net earnings of $101.2 million achieved in 2007,
excluding the one-time charges related to the acquisition of
Tadiran Communications. Diluted earnings per share, excluding the
one-time effects, for the year ended December 31, 2008 were $3.34,
as compared with $2.39 for 2007. The growth in earnings and EPS
year over year was approximately 40% Operating cash flow produced
by the Company in 2008 was $209 million, as compared to $263
million in 2007. The Company's backlog of orders as of December 31,
2008 totaled $5,030 million, as compared with $4,872 million as of
September 30, 2008 and $4,624 million as of December 31, 2007.
Approximately 72% of the backlog relates to orders outside of
Israel. Approximately 75% of the Company's backlog as of December
31, 2008 is scheduled to be performed during 2009 and 2010. The
President and CEO of Elbit Systems, Joseph Ackerman, commented,
"Our final quarter in 2008, represents another quarter of continued
progress, with stronger profitability as well as growth across all
areas of operation and geographies. 2008 was a year in which we
successfully integrated our acquisitions from prior years and began
reaping the fruits of these activities. We have proven that our
analysis of the direction of the global defense industry during the
past few years was well founded, and we invested in areas which
have become very relevant for our customers. Consequently, we now
hold a substantial competitive and technological position in all
these areas. We end 2008 in a very strong position as a global
company and a well-known leader by our partners and customers.
Looking ahead, we have primed our business for continued growth,
well into the future. The sale of our holdings in Mediguide,
strengthened our Balance Sheet and underscored that defense
technology can be used in commercial applications." Mr. Ackerman
continued, "While the global economic situation is challenging for
all, we continue to ensure our expense footprint is minimized, as
well as closely manage our risks. At the same time, we are
examining ways to exploit the current environment in order to
upgrade our platform for continued future technological growth and
the nurture of our excellent human resources. This is to ensure we
are well prepared for all eventualities and that we are able to
maintain and build our profitability, momentum and technological
leadership, in the coming quarters and years ahead." The Board of
Directors declared a dividend of $0.80 per share for the fourth
quarter of 2008. The dividend's record date is March 24, 2009, and
the dividend will be paid on April 6, 2009, net of taxes and
levies, at the rate of 16.82%. Conference Call The Company will
also be hosting a conference call today, Wednesday, March 11 at
11am ET. On the call, management will review and discuss the
results and will be available to answer questions. To participate,
please call one of the teleconferencing numbers that follow. 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: 1-888-723-3164 UK Dial-in Number: 0-808-101-2717 ISRAEL
Dial-in Number: 03-918-0650 INTERNATIONAL Dial-in Number:
+972-3-918-0650 At: 11:00am Eastern Day-light Time; 8:00am Pacific
Day-light Time; 3:00pm UK Time; 5:00pm 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. 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 numbers:
1-888-269-0005 (US) or +972-03-925-5951 (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 Company, which
includes Elbit Systems and its subsidiaries, operates in the areas
of aerospace, land and naval systems, command, control,
communications, computers, intelligence surveillance and
reconnaissance ("C4ISR"), unmanned air vehicle (UAV) systems,
advanced electro-optics, electro-optic space systems, EW suites,
airborne warning systems, ELINT systems, data links and military
communications systems and radios. The Company also focuses on the
upgrading of existing military platforms and developing new
technologies for defense, homeland security and commercial aviation
applications. This press release contains forward-looking
statements (within the meaning of Section 27A of the Securities Act
of 1933, as amended and Section 21E of the Securities Exchange Act
of 1934, as amended) regarding Elbit Systems Ltd. and/or its
subsidiaries (collectively the Company), to the extent such
statements do not relate to historical or current fact. Forward
Looking Statements are based on management's expectations,
estimates, projections and assumptions. Forward-looking statements
are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, as amended. These
statements are not guarantees of future performance and involve
certain risks and uncertainties, which are difficult to predict.
Therefore, actual future results, performance and trends may differ
materially from these forward-looking statements due to a variety
of factors, including, without limitation: scope and length of
customer contracts;governmental regulations and approvals; changes
in governmental budgeting priorities; general market, political and
economic conditions in the countries in which the Company operates
or sells, including Israel and the United States among others;
differences in anticipated and actual program performance,
including the ability to perform under long-term fixed-price
contracts; and the outcome of legal and/or regulatory proceedings.
The factors listed above are not all-inclusive, and further
information is contained in Elbit Systems Ltd.'s latest annual
report on Form 20-F, which is on file with the U.S. Securities and
Exchange Commission. All forward-looking statements speak only as
of the date of this release. The Company does not undertake to
update its forward-looking statements. (FINANCIAL TABLES TO FOLLOW)
ELBIT SYSTEMS LTD. CONSOLIDATED BALANCE SHEETS (In thousand of US
Dollars) December 31 December 31 2008 2007 Audited Audited Assets
Current Assets: Cash and short term deposits 278,043 375,700 Trade
receivable and others 681,000 562,828 Inventories, net of advances
647,561 480,603 Total current assets 1,606,604 1,419,131 Affiliated
Companies & other Investments 62,300 66,161 Long-term
receivables & others 286,874 314,568 Fixed Assets, net 384,086
352,702 Other assets, net 594,283 636,255 2,934,147 2,788,817
Liabilities and Shareholder's Equity Current liabilities 1,316,598
1,242,012 Long-term liabilities 817,241 990,458 Minority Interest
76,475 20,085 Shareholder's equity 723,833 536,262 2,934,147
2,788,817 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 2008 2007 2008
2007 Audited Unaudited Revenues 2,638,271 1,981,761 697,854 591,056
Cost of revenues 1,870,830 1,454,913 494,496 434,891 Restructuirng
expenses - 10,482 - - Gross Profit 767,441 516,366 203,358 156,165
Research and development (R&D) 63,875 39,401 expenses, net
184,984 126,995 Marketing and selling epenses 198,274 157,411
45,520 44,277 General and administrative 30,783 34,265 expenses
134,182 107,447 Acquired In Process R&D write-off 1,000 16,560
1,000 - 518,440 408,413 141,178 117,943 Operating income 249,001
107,953 62,180 38,222 Financial expenses, net (36,815) (19,329)
(3,759) (10,632) Other income, net 94,294 368 90,064 286 Income
before taxes on income 306,480 88,992 148,485 27,876 Taxes on
income (54,367) (13,810) (26,278) 7,501 252,113 75,182 122,207
35,377 Equity in net earnings of affiliated companies and
partnership 14,435 14,565 6,364 4,544 Minority interest in earnings
of subsidiaries (62,372) (13,038) (23,299) (7,995) Net income
204,176 76,709 105,272 31,926 Earnings per share Basic net earnings
per share 4.85 1.82 2.50 0.75 Diluted net earnings per share 4.78
1.81 2.48 0.75 Company Contact: Joseph Gaspar, Executive VP &
CFO Dalia Rosen, Head of Corporate Communications Elbit Systems
Ltd. Tel: +972-4-831-6663 Fax: +972-4-831-6944 E-mail: IR Contact:
Ehud Helft / Kenny Green GK Investor Relations Tel: +1-646-201-9246
E-mail:
http://www.newscom.com/cgi-bin/prnh/20080408/300441DATASOURCE:
Elbit Systems Ltd CONTACT: Company Contact: Joseph Gaspar,
Executive VP & CFO, Dalia Rosen, Head of Corporate
Communications, Elbit Systems Ltd., Tel: +972-4-831-6663, Fax:
+972-4-831-6944, E-mail: , ; IR Contact: Ehud Helft / Kenny Green,
GK Investor Relations, Tel: +1-646-201-9246, E-mail:
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