HAIFA, Israel, May 20 /PRNewswire-FirstCall/ -- - Record Backlog of
Orders at $5.1 Billion; - Revenues Increased by 6.6% YoY to $657
Million; - Diluted Net Earnings per Share Increased by 36% YoY to
$1.02 Elbit Systems Ltd. (the "Company")
(NASDAQ:ESLTNASDAQ:TASE:NASDAQ:ESLT), the international defense
company, today reported its consolidated financial results for the
first quarter ended March 31, 2009. (Logo:
http://www.newscom.com/cgi-bin/prnh/20080408/300441 ) Consolidated
revenues increased by 6.6% to $656.9 million, as compared to $616.1
million in the first quarter of 2008. The Company's revenues in the
C4ISR area of operations increased significantly in the first
quarter of 2009 compared to the first quarter of 2008, as a result
of increased sales of communication equipment and unmanned air
vehicle systems to a number of customers. Other than relatively
minor fluctuations, the percentage mix of revenues derived from the
various geographical regions remained steady, as compared to the
first quarter of 2008. Gross profit increased by 22% to $208.3
million (31.7% of revenues) for the first quarter of 2009, as
compared with gross profit of $170.7 million (27.7% of revenues) in
the first quarter of 2008. The strong gross profit margin was
primarily the result of a mix of projects performed with higher
gross profit, and in part due to the strength of the U.S. Dollar
versus the Israeli Shekel during the first quarter of 2009, which
affected the labor costs incurred in Shekels. Research and
development ("R&D") - The Company continually invests in
R&D in order to maintain and further advance its technologies,
in accordance with its long-term plans. In the quarter ended March
31, 2009 net R&D expenses totaled $45.9 million (7.0% of
revenues), as compared to $38.0 million (6.2% of revenues) in the
quarter ended March 31, 2008. Marketing and selling expenses - The
Company incurs marketing and selling expenses in developing new
markets and pursuing from time to time various business
opportunities according to the Company's plan. Marketing and
selling expenses in the quarter ended March 31, 2009 were $56.9
million (8.7% of revenues), as compared to $52.5 million (8.5% of
revenues) in the quarter ended March 31, 2008. General and
administrative ("G&A") expenses were $28.9 million (4.4% of
revenues) in the quarter ended March 31, 2009, as compared to $31.6
million (5.1% of revenues) in the quarter ended March 31, 2008. Net
financial expenses were $19 million in the quarter ended March 31,
2009, as compared to $4.6 million in the quarter ended March 31,
2008. The increase in net financial expenses was mainly a result of
the strengthening of the U.S. Dollar against the Israeli Shekel,
which affected the value of the Company's currency hedge
derivatives in Israeli Shekels. Provision for taxes was $12.2
million (effective tax rate of 21.3%) in the quarter ended March
31, 2009, as compared to a provision for taxes of $7.9 million
(effective tax rate of 16.5%) in the quarter ended March 31, 2008.
The change in the effective tax rate is attributable mainly to the
mix of the tax rates in the various tax jurisdictions in which the
Company entities generating the taxable income operate. Net income
attributable to the Company increased by 34.5% to $43.3 million
(6.6% of revenues) for the first quarter of 2009, as compared with
$32.2 million (5.2% of revenues) in the first quarter of 2008.
According to SFAS No. 160, which is applicable to the Company's
results for the first time in the first quarter of 2009,
consolidated net income attributable to the Company is calculated
after eliminating net income or loss attributable to
non-controlling interests. Diluted net earnings per share
attributable to the Company for the first quarter of 2009 was
$1.02, as compared with $0.75 for the first quarter of 2008, an
increase of 36%. The Company's backlog of orders totaled $5,091
million as of March 31, 2009, as compared with $5,030 million as of
December 31, 2008. Approximately 67% of the backlog relates to
orders outside of Israel. Approximately 72% of the Company's
backlog as of March 31, 2009, is scheduled to be performed during
the upcoming three quarters of 2009 and during 2010. Operating Cash
flow was $5.4 million during the first quarter of 2009, as compared
to $66.3 million in the first quarter of 2008. The decrease in the
operating cash flow in the first quarter of 2009 was mainly a
result of a reduction in the overall amount of advanced payments
from customers. Recent Events: On April 7, 2009, the Company
completed the purchase of the minority shares of its previously
51%-owned subsidiary Kinetics Ltd. ("Kinetics"). The Company
purchased the remaining 49% of the shares from Kinetics' minority
shareholders for a maximum total consideration of $118 million, of
which $110 million was paid upon closing, and the balance is
subject to Kinetics' 2009 financial results. On May, 5, 2009, the
Company's wholly-owned subsidiary Elbit Systems of America, LLC,
was selected as part of an industry team led by Rockwell Collins
for the system integration and prototype phase of the Ground
Soldier Ensemble (GSE) program for the U.S. Army. Elbit Systems of
America and Rockwell Collins together formed "Team Spartan". The
team was selected, as one of three teams, in a competition among
several U.S. companies to develop the next-generation soldier-worn
computer system. The system will provide situational awareness to
soldiers during intense operations in a configuration that
optimizes size, weight and power and can be customized for
different missions. On May 7, 2009, the Company's subsidiary,
Elisra Electronic Systems Ltd. (Elisra), was awarded a contract by
Lockheed Martin Canada Ltd. valued at approximately $55 million to
supply Electronic Warfare (EW) equipment for the Canadian Navy's
Halifax Frigate Modernization program. Elisra's systems were
selected after meeting the strict standards and challenges required
by the customer. On May 14, 2009, the Company's wholly owned U.S.
subsidiary, Elbit Systems of America announced the award of a
contract from the U.S. Army for the Mortar Fire Control (MFC)
Systems Integration program. The contract is a hybrid Indefinite
Delivery /Indefinite Quantity-Time and Materials (ID/IQ-T&M)
type contract, which provides for orders up to $197.5 million
amount over a five-year period. The initial order under the
contract is valued at approximately $22 million and is expected
shortly. On May 17, 2009, the Company's subsidiary, Elbit Systems
of America, and General Dynamics Armament and Technical Products
announced the formation of a new joint venture named UAS Dynamics,
LLC, to provide unmanned aerial systems (UAS) to the Department of
Defense and other potential U.S. government customers through
programs such as the recently announced U.S. Marine Corps' Small
Tactical Unmanned Aircraft Systems (STUAS)/Tier II program. The
solutions that UAS Dynamics will offer are based on advanced,
mature UAS designs that accumulated more than 150,000 operational
flight hours to date: the combat-proven Hermes(R) and Skylark(R)
systems, developed and fielded by the Company. UAS Dynamics will
adapt those proven designs to incorporate new logistics resources
to rapidly field and satisfy evolving U.S. requirements. On May 18,
2009, the Company announced it was awarded a contract valued at
EUR25 million to supply the Austrian Army with Elbit Systems' new
12.7mm unmanned Electrically Remote Controlled Weapon Stations. The
systems will be delivered over the course of the next four years.
The contract for the Austrian Army was signed between Elbit Systems
and IVECO S.p.A., a subsidiary of the Fiat Group, prime contractor
for the program. The Weapon Stations provided by Elbit Systems will
be integrated into IVECO Defence Vehicles' Light Multi-role
Vehicles (LMV) 4X4. Management Comment: The President and CEO of
Elbit Systems, Joseph Ackerman, commented: "We are satisfied with
the first quarter's profitability, which resulted in part from our
efficient management of business synergies. The growth in the C4ISR
area of operations is encouraging and a good example of our ability
to successfully foresee our customers' needs. We have also
witnessed continued demand in other areas of our activity. Based on
all these factors, we expect a double digit growth in revenues in
2009, as compared to 2008." Mr. Ackerman added: "Based on our
recent acquisitions, as well as our recent announcements regarding
cooperation with industry leaders, we continue to feel confident
about our future success." Dividend: The Board of Directors
declared a dividend of $0.30 per share for the first quarter of
2009. The dividend's record date is June 2, 2009, and the dividend
will be paid on June 15, 2009, net of taxes and levies, at the rate
of 16.61%. Conference Call The Company will also be hosting a
conference call today, Wednesday, May 20, 2009 at 9:30am ET. On the
call, management will review and discuss its first quarter 2009
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: 1-888-723-3164 UK Dial-in Number: 0-808-101-2717 ISRAEL
Dial-in Number: 03-918-0650 INTERNATIONAL Dial-in Number:
+972-3-918-0650 at: 9:30am Eastern Time; 6:30am Pacific Time;
2:30pm UK time and 4:30pm 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 numbers: 1-888-269-0005 (US) or +972-3-925-5951
(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. Attachments: Consolidated balance
sheet Consolidated statements of income Condense consolidated
statements of cash flow Consolidated revenue distribution by areas
of operation and by geographical regions 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. ELBIT SYSTEMS LTD. CONSOLIDATED BALANCE
SHEETS (In thousands of US Dollars) March 31 December 31 2009 2008
Assets Current assets: Cash short term deposits and marketable
securities 268,760 278,043 Trade receivables 478,986 477,010 Other
receivables and pre-paid expenses 190,213 203,990 Inventories, net
of advances 637,860 644,107 Total current assets 1,575,819
1,603,150 Investment in affiliated companies and a partnership
64,898 62,300 Long-term deposits and marketable securities 40,632
34,355 Long-term receivables and others 233,616 252,519 Property
and equipment, net 384,508 384,086 Goodwill and other intangible
assets, net 601,802 594,283 Total assets 2,901,275 2,930,693
Liabilities and Shareholder's Equity Short-term bank credit and
loans 6,542 15,413 Other current liabilities 1,259,541 1,297,731
Long-term loans 303,114 269,760 Other long-term liabilities 511,868
547,481 2,081,065 2,130,385 Elbit Systems Ltd.'s shareholders'
equity 737,124 723,833 Non-controlling interests(*) 83,086 76,475
Total shareholders' equity 820,210 800,308 Total liabilities and
shareholders' equity 2,901,275 2,930,693 (*) The Company has
adopted SFAS No. 160, "Non-controlling Interests in Consolidated
Financial Statements, an amendment to ARB No. 51," as of January 1,
2009. Pursuant to SFAS No. 160, net income attributable to
non-controlling interests is presented in the statement of income
as part of consolidated net income and then shown on a separate
line item as a reduction to arrive at net income attributable to
Elbit Systems Ltd., which is the equivalent of "net income"
presented in previous statements of income. Cumulative net income
attributable to non-controlling interests is presented on the
balance sheets as part of total shareholders' equity and is else
shown on a separate line item. Total shareholders equity ,net of
the comulative net income attributable to non-controling
interests,represents the shareholders' equity attributable to the
company's ordinary shareholders equity,which is the equivalent of
"shareholders equity" presented in previous balance sheets. ELBIT
SYSTEMS LTD. CONSOLIDATED STATEMENTS OF INCOME (In thousands of US
Dollars, except for share and per share amounts) Three Months Ended
Year Ended March 31 December 31 2009 2008 2008 Revenues 656,932
616,063 2,638,271 Cost of revenues 448,664 445,390 1,870,830 Gross
profit 208,268 170,673 767,441 Operating expenses: Research and
development, net 45,880 38,035 184,984 Marketing and selling 56,916
52,504 198,274 General and administrative 28,888 31,629 134,182
Acquired IPR&D - - 1,000 Total operating expenses 131,684
122,168 518,440 Operating income 76,584 48,505 249,001 Financial
expenses, net (19,039) (4,600) (36,815) Other income (expenses),
net (95) 4,096 94,294 Income before taxes on income 57,450 48,001
306,480 Taxes on income (12,212) (7,922) (54,367) 45,238 40,079
252,113 Equity in net earnings of affiliated companies and
partnership 4,776 2,565 14,435 Consolidated net income 50,014
42,644 266,548 Less: net income attributable to non-controlling
interests(*) (6,760) (10,491) (62,372) Net income attributable to
Elbit Systems Ltd. 43,254 32,153 204,176 Earnings per share
attributable to Elbit Systems Ltd.'s ordinary shareholders: Basic
net earnings per share 1.03 0.76 4.85 Diluted net earnings per
share 1.02 0.75 4.78 Weighted average number of shares used in
computation of basic earnings per share 42,097 42,067 42,075
Weighted average number of shares used in computation of diluted
earnings per share 42,534 42,876 42,758 (*) The Company has adopted
SFAS No. 160, "Non-controlling Interests in Consolidated Financial
Statements, an amendment to ARB No. 51," as of January 1, 2009.
Pursuant to SFAS No. 160, net income attributable to
non-controlling interests is presented in the statement of income
as part of consolidated net income and then shown on a separate
line item as a reduction to arrive at net income attributable to
Elbit Systems Ltd., which is the equivalent of "net income"
presented in previous statements of income. Cumulative net income
attributable to non-controlling interests is presented on the
balance sheets as part of total shareholders' equity and is else
shown on a separate line item. Total shareholders equity ,net of
the comulative net income attributable to non-controling
interests,represents the shareholders' equity attributable to the
company's ordinary shareholders equity,which is the equivalent of
"shareholders equity" presented in previous balance sheets. ELBIT
SYSTEMS LTD. CONDENSE CONSOLIDATED STATEMENTS OF CASH FLOW (In
thousands of US Dollars) Three months ended Year ended March 31
December 31 2009 2008 2008 Cash flow from operating activities Net
income 43,254 32,153 204,176 Depreciation and amortization 30,031
30,645 129,437 Other adjustments to reconcile net income to net
cash (3,577) 23,244 1,663 Changes in net operating assets (64,259)
(19,750) (125,848) Net cash provided by operating activities 5,449
66,292 209,428 Net cash used in investing activities (99,833)
(56,794) (171,707) Net cash provided by (used in) financing
activities 24,101 (47,197) (195,853) Net increase (decrease) in
cash and cash equivalents (70,283) (37,699) (158,132) Cash and cash
equivalent at the beginning of the period 204,670 362,802 362,802
Cash and cash equivalent at the end of the period 134,387 325,103
204,670 ELBIT SYSTEMS LTD. DISTRIBUTION OF REVENUES Consolidated
revenue by areas of operation: Three Months Ended Year Ended March
31 December 31 2009 2008 2008 $ millions % $ millions % $ millions
% Airborne systems 172.9 26.3 155.3 25.2 634.7 24.1 Land systems
141.8 21.6 156.0 25.3 699.5 26.5 C4ISR systems 230.1 35.0 181.9
29.5 844.5 32.0 Electro-optics 82.7 12.6 88.1 14.3 336.7 12.7 Other
(mainly non-defense engineering and production services) 29.4 4.5
34.8 5.7 122.9 4.7 Total 656.9 100.0 616.1 100.0 2,638.3 100.0
Consolidated revenues by geographical regions: Three Months Ended
Year Ended March 31 December 31 2009 2008 2008 $ millions % $
millions % $ millions % Israel 124.5 18.9 123.1 20.0 474.4 18.0
United States 210.7 32.1 215.1 34.9 907.1 34.4 Europe 162.2 24.7
137.1 22.2 653.1 24.7 Other countries 159.5 24.3 140.8 22.9 603.7
22.9 Total 656.9 100.0 616.1 100.0 2,638.3 100.0 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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