HAIFA, Israel, March 15, 2011 /PRNewswire-FirstCall/ -- Elbit
Systems Ltd. (NASDAQ and TASE: ESLT), the international defense
electronics company, reported today its consolidated results for
the fourth quarter and full year ended December 31, 2010.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080408/300441 )
In this release, the Company is providing its usual US-GAAP
results as well as additional non-GAAP financial data, which are
intended to provide investors a more comprehensive understanding of
the Company's business results and trends. Unless otherwise stated,
all financial data presented is GAAP financial data.
Fourth quarter 2010 results:
Revenues for the fourth quarter of 2010 increased by 11.8% to
$798.7 million, as compared to
$714.7 million in the fourth quarter
of 2009. The increase in the Company's revenues was driven mainly
by the electro-optics and airborne systems areas of operations.
Gross profit for the fourth quarter of 2010 was $231.9 million (29.0% of revenues), as compared
to gross profit of $212.0 million
(29.7% of revenues) in the fourth quarter of 2009. The reduction in
the gross profit margin rate was caused mainly by write-off of
inventories as well as additional acquisition expenses related to
the acquisitions completed during the fourth quarter of 2010,
including mainly Soltam, ITL, Ares and M7.
Research and development expenses, net for the fourth quarter of
2010 were $68.5 million (8.6% of
revenues), as compared to $61.8
million (8.7% of revenues) in the fourth quarter of
2009.
Marketing and selling expenses for the fourth quarter of 2010
were $65.9 million (8.2% of
revenues), as compared to $59.4
million (8.3% of revenues) in the fourth quarter of
2009.
General and administrative expenses for the fourth quarter of
2010 were $40.8 million (5.1% of
revenues), as compared to $32.5
million (4.5% of revenues) in the fourth quarter of 2009.
The increase was mainly a result of consolidation of expenses from
the newly acquired subsidiaries in the fourth quarter of 2010.
Financial expenses, net for the fourth quarter of 2010 were
$11.6 million, as compared to
$7.4 million in the fourth quarter of
2009. Expenses were relatively low in the fourth quarter of 2009
due to currency hedging related gains. The increased expenses in
the fourth quarter of 2010 were mainly due to higher expenses
related to the Series A Notes that the Company issued during the
second quarter of 2010, as well as to the revaluation of the New
Israeli Shekel against the US dollar.
Taxes on income for the fourth quarter of 2010 were $2.4 million (effective tax rate of 5.4%), as
compared to taxes on income of $0.4
million (effective tax rate of 0.8%) in the fourth quarter
of 2009. The change in the effective tax rate was attributable
mainly to the mix of the tax rates in the various jurisdictions in
which the Company's entities generate taxable income. The unusually
low effective tax rate in the fourth quarter of 2009 was related to
tax adjustments from prior years in some of the Company's
subsidiaries. The fourth quarter of 2010 was also affected by an
increase in deferred tax assets.
Equity in net earnings of affiliated companies and partnership
for the fourth quarter of 2010 increased to $6.1 million (0.8% of revenues), as compared to
$4.9 million (0.7% of revenues) in
the fourth quarter of 2009.
Net income attributable to non-controlling interests for the
fourth quarter of 2010 was $4.9
million, as compared to $3.0
million in the fourth quarter of 2009.
Net income attributable to the Company's ordinary shareholders
for the fourth quarter of 2010 was $43.7
million (5.5% of revenues), as compared with $53.7 million (7.5% of revenues) in the fourth
quarter of 2009.
Diluted net earnings per share attributable to the Company's
ordinary shareholders for the fourth quarter of 2010 were
$1.01, as compared with $1.24 for the fourth quarter of 2009.
Full year 2010 results:
Revenues for the year ended December 31,
2010 decreased by 5.7% to $2,670.1
million, as compared to $2,832.4
million in the year ended December
31, 2009. The decrease in the Company's revenues was due
mainly to a decrease in sales in the land systems and the C4ISR
systems areas of operations. The decrease in revenues in the land
systems activities was mainly a result of a lower level of revenues
in Europe, including a decrease in
the level of revenues due to the winding-up of M-60 project in
Turkey, as well as a decrease in
the revenues for the Bradley project in the United States. The decrease in the
revenues for C4ISR systems was mainly in Europe, as a result of a decreased level of
revenues from the Watchkeeper project.
Cost of goods sold for the year ended December 31, 2010 was $1,872.3 million, as compared to $1,983.0 in the year ended December 31, 2009. The decrease in cost of goods
sold was mainly as a result of the decrease in sales. The expenses
include a write-off of inventories in the amount of approximately
$13 million related to the
acquisitions of Soltam and ITL. In addition, as a result of the
acquisitions the amortization expense of intangible assets
increased. The increased expenses were partly offset by
improvements in other subsidiaries of the Company.
Gross profit for the year ended December
31, 2010 decreased by 6.1% to $797.9
million (29.9% of revenues), as compared with gross profit
of $849.5 million (30.0% of revenues)
in the year ended December 31, 2009.
The decrease in the amount of gross profit in 2010 resulted
primarily from the reduction in revenues.
Research and development expenses, net for the year ended
December 31, 2010 were $234.1 million (8.8% of revenues), as compared to
$216.8 million (7.7% of revenues) in
the year ended December 31, 2009. The
increased rate of research and development expenses in 2010 was
primarily a result of accelerated development of programs related
to technology and the adaptation of products, as well as increased
engineering activities to support marketing efforts world-wide.
Marketing and selling expenses for the year ended December 31, 2010 were $229.9 million (8.6% of revenues), as compared to
$251 million (8.9% of revenues) in
the year ended December 31, 2009.
General and administrative expenses for the year ended
December 31, 2010 were $131.2 million (4.9% of revenues), as compared to
$119.3 million (4.2% of revenues) in
the year ended December 31, 2009. The
increase in general and administrative expenses in 2010 was mainly
the result of expenses related to acquisitions and the
consolidation of expenses from the newly acquired subsidiaries.
Other operational income for the year ended December 31, 2010 amounted to $4.8 million. The amount reflects a net gain of
$4.8 million in the second quarter of
2010, related to the revaluation of the previously held Azimuth
shares at the acquisition date due to its accounting treatment as a
business combination achieved in stages.
Financial expenses, net for the year ended December 31, 2010 were $21.3 million, as compared to $15.6 million in the year ended December 31, 2009. The higher level of financial
expenses in 2010 was mainly due to higher expenses related to the
Series A Notes that the Company issued during the second quarter of
2010 as well as to the revaluation of the NIS against the US
dollar.
Other income for the year ended December
31, 2010 amounted to $13.3
million. It included a gain of $12.8
million related to the selling of Mediguide shares in the
first quarter of 2010.
Taxes on income for the year ended December 31, 2010 were $24.0 million (effective tax rate of 12.1%), as
compared to taxes on income of $38.1
million (effective tax rate of 15.4%) in the year ended
December 31, 2009. Taxes on income in
2010 were reduced by an amount of approximately $10 million related to the deferred tax assets
for prior years' losses in one of the Company's subsidiaries. The
change in the effective tax rate was also affected by the mix of
the tax rates in the various jurisdictions in which the Company's
entities generate taxable income.
Equity in net earnings of affiliated companies and partnership
for the year ended December 31, 2010
was $19.3 million (0.7% of revenues),
similar to that for the year ended December
31, 2009.
Net income attributable to non-controlling interests for the
year ended December 31, 2010 was
$11.2 million, as compared to
$13.6 million in the year ended
December 31, 2009.
Net income attributable to the Company's ordinary shareholders
for the year ended December 31, 2010
was $183.5 million (6.9% of
revenues), as compared with $214.9
million (7.6% of revenues) in the year ended December 31, 2009.
Diluted net earnings per share attributable to the Company's
ordinary shareholders for the year ended December 31, 2010 were $4.25, as compared with $5.00 for the year ended December 31, 2009.
The Company's backlog of orders for the year ended December 31, 2010 totaled $5,446 million, as compared with $5,044 million as of December 31, 2009. Approximately 74% of the
current backlog is due to orders from outside Israel. Approximately 72% of the current
backlog is scheduled to be performed during 2011 and 2012.
Operating cash flow for the year ended December 31, 2010 was $184.9 million, as compared to $209.7 million in the year ended December 31, 2009. The decrease in the operating
cash flow was mainly a result of the decrease in net income.
Non-GAAP financial data:
The following non-GAAP financial data is presented to enable
investors to have additional information on the Company's business
performance as well as a further basis for periodical comparisons
and trends relating to the Company's financial results. The Company
believes such data provides useful information to investors by
facilitating more meaningful comparisons of the Company's financial
results over time. Such non-GAAP information is used by our
management to make strategic decisions, forecast future results and
evaluate the Company's current performance. However, investors are
cautioned that, unlike financial measures prepared in accordance
with GAAP, non-GAAP measures may not be comparable with the
calculation of similar measures for other companies.
The non-GAAP financial data below includes reconciliation
adjustments regarding non-GAAP gross profit, operating income, net
income and diluted EPS. In arriving at non-GAAP presentations,
companies generally factor out items such as those that have a
non-recurring impact on the income statements, various non-cash
items, significant effects of retroactive tax legislation and
changes in accounting guidance and other items which, in
management's judgment, are items that are considered to be outside
of the review of core operating results. In the Company's non-GAAP
presentation below, the Company made the following adjustments: (1)
amortization of purchased intangible assets, (2) significant
reorganization, restructuring and other related expenses, (3)
impairment of investments, including impairment of auction rate
securities, (4) gain from changes in holdings, including
revaluation of the previously held shares at the acquisition date
when a business combination is achieved in stages (step-up) and (5)
the income tax effects of the foregoing.
These non-GAAP measures are not based on any comprehensive set
of accounting rules or principles. The Company believes that
non-GAAP measures have limitations in that they do not reflect all
of the amounts associated with the Company's results of operations,
as determined in accordance with GAAP, and that these measures
should only be used to evaluate the Company's results of operations
in conjunction with the corresponding GAAP measures. Investors
should consider non-GAAP financial measures in addition to, and not
as replacements for or superior to, measures of financial
performance prepared in accordance with GAAP.
Reconciliation of GAAP (Audited) to Non-GAAP (Unaudited) Supplemental
Financial Data:
(US Dollars in millions)
2010 2009 2008
GAAP gross profit 797.9 849.5 767.4
Adjustments:
Amortization of purchased intangible assets 25.0 22.2 28.9
Reorganization, restructuring and other related
expenses(1) 12.8 - -
Non-GAAP gross profit 835.7 871.7 796.3
Percent of revenues 31.3% 30.8% 30.2%
GAAP operating income 207.4 262.5 249.0
Adjustments:
Amortization of intangible assets 47.7 44.0 40.1
Reorganization, restructuring and other related
expenses(1) 16.4 - 1.0
Impairment of investments(2) 1.3 1.4 -
Gain from changes in holdings(3) (4.8) - -
Non-GAAP operating income 268.0 307.9 290.1
Percent of revenues 10.0% 10.9% 11.0%
GAAP net income attributable to Elbit Systems'
shareholders 183.5 214.9 204.2
Adjustments:
Amortization of intangible assets 47.7 44.0 40.1
Reorganization, restructuring and other related
expenses(1) 16.4 - 1.0
Impairment of investments(2) 1.3 1.4 29.2
Gain from changes in holdings(3) (17.6) (1.0) (100)
Related tax benefits (8.9) (9.0) 16.8
Non-GAAP net income attributable to Elbit 222.4 250.3 191.3
systems'shareholders
Percent of revenues 8.3% 8.8% 7.3%
Non-GAAP diluted net EPS 5.1 5.8 4.5
(1) Adjustment of reorganization, restructuring and other
related expenses in 2010, were mainly due to write-off of
inventories in the amount of approximately $13 million related to the acquisitions of Soltam
and ITL.
(2) Adjustment of impairment of investments in 2010 and 2009
were due to the impairment of ICI intangible assets and in 2008
were due to impairment of auction rate securities ($18.7 million) and the impairment of Sandel
shares ($10.5 million).
(3) Adjustment of gain from changes in holdings includes the
income from the sale of Mediguide shares ($100 million in 2008, $1
million in 2009 and $12.8
million in 2010) and a gain of $4.8
million from a "step-up" in an investment in 2010.
Recent Events:
On December 15, 2010, the
Company's wholly-owned US subsidiary, Elbit Systems of America,
LLC, ("ESA") acquired 100% of M7 Aerospace LP ("M7 Aerospace") in
an $85 million all cash transaction.
Located in San Antonio, Texas, M7
Aerospace is an integrated service company, offering a full suite
of aviation services in the areas of Aerostructures Manufacturing,
Government Logistics Support Services, Maintenance, Repair &
Overhaul, Engineering Services, Aircraft Parts and Support, Supply
Chain Management and Purchasing. M7 Aerospace joined ESA as a part
of the company's offerings of comprehensive large fleet, multi-site
contractor logistics support, life cycle contractors and depot
support for fleets operated by the United
States military. M7 Aerospace also brings world class
capabilities in avionics upgrades, special mission modifications,
reset programs and airframe modification and repair for numerous
aircraft platforms operated by both commercial and military
customers.
On December 30, 2010, the Company
acquired the Brazilian companies, Ares Aerospacial e Defesa S.A.
("Ares") and Periscopio Equipamentos Optronicos S.A.
("Periscopio"). The acquisition was accomplished in a series of
transactions totaling approximately $35
million. Ares and Periscopio are involved in the area of
defense electronic systems and supply a range of products to the
Brazilian military as well as to additional markets in South America. Located in the vicinity of
Rio de Janeiro, the companies have
approximately 70 employees. The selling shareholders are continuing
to perform management functions in the companies following the
acquisition.
On January 3, 2011, the Company
announced that it signed an agreement to invest in Pearls of Wisdom
Advanced Technologies Ltd. ("Pearls of Wisdom") an amount of
approximately $18 million. The
investment will be made by one of Elbit Systems' subsidiaries and
will be performed in several stages over several years, according
to a road map agreed by the Company and the other investors. The
Company's holdings in Pearls of Wisdom will increase gradually.
Pearls of Wisdom, an Israeli company, develops micro-sensors for
intelligence gathering, enabling terrain dominance.
On January 6, 2011, the Company's
Brazilian subsidiary, Aeroeletronica Ltda. ("AEL") was awarded a
framework contract, valued at approximately $260 million for the supply of UT30 BR 30mm
Unmanned Turrets to the Brazilian Army's Land Forces, as part of
the Guarani Project. This award followed an award of a contract to
the Company in 2009 to supply several Unmanned Turrets in an open
tender in which leading global manufacturers took part. The
contract calls for the Company's UT30 BR to be installed onboard a
few hundred of Iveco 6x6 APCs, according to a schedule and a
multi-year funding profile to be defined by the parties.
On January 11, 2011, the Company's
subsidiary, Elisra Electronic Systems Ltd. ("Elisra"), was awarded
a contract valued at approximately $29
million to supply the Korean Government with Airborne
Electronic Warfare (EW) Suites and Missile Warning Systems (MWS)
for its ROKAF CN-235 Transporters. The advanced and integrative EW
suites include protection systems against various threats.
On January 19, 2011, the Company's
Brazilian subsidiary, AEL, was awarded a contract to supply
Hermes(R) 450 Unmanned Aircraft Systems (UAS) to the Brazilian Air
Force. The contract is not in an amount that is material to Elbit
Systems. This project is a part of the Brazilian Air Force's
objective to establish independent UAS capabilities, allowing for
self-reliant operation and development of UAS in Brazil. Located in Porto Alegre in southern Brazil, AEL performs a variety of projects for
the Brazilian Air Force, as well as other branches of the Brazilian
Armed Forces.
On February 9, 2011, the Company
announced, further to its announcement of January 20, 2011, that all the requirements for
the implementation of the cash tender offer (the "Tender Offer")
issued by its wholly-owned subsidiary, Elbit Security Systems Ltd.
("Elsec") for the acquisition of the ordinary shares held by the
public of I.T.L Optronics Ltd. ("ITL") were successfully met.
Accordingly, Elsec purchased all of ITL's outstanding ordinary
shares held by the public, including those of dissenting
shareholders, at the Tender Offer price of NIS 12.5 (approximately $3.4) per share, and for a total consideration of
NIS 21,533,100 (approximately
$5.9 million) for the purchased
shares.
On February 22, 2011, the Company
reached an agreement to acquire the remaining 30% of the shares of
Elisra held by Elta Systems Ltd. ("Elta") (a subsidiary of Israel
Aerospace Industries Ltd.) for $67.5
million. The Company currently owns 70% of Elisra's shares,
and following the acquisition, Elisra will become a wholly-owned
subsidiary of the Company.
Management Comment:
Joseph Ackerman, President and
CEO of Elbit Systems, commented: "While 2010 was a challenging
year, we witnessed resumed growth in our backlog, while at the same
time we achieved increased revenues levels in the fourth quarter.
Most important for 2010 was the solid execution of our M&A
strategy in support of our long-term goals. 2010 was a year of
building on our internal competencies while acquiring complementary
technologies and products that broadened our offerings to the
defense market. We are also providing in this release certain
supplemental non-GAAP financial data, which will enhance
understanding of our business and its trends".
Mr. Ackerman continued, "Our recent acquisitions open a number
of new doors for us. First, they add additional R&D
capabilities in a number of new areas, which can potentially be
beneficial across the entire breadth of our operations. Second, the
acquisitions strengthen and expand our presence in the Training and
Simulation, Artillery and MRO areas. Finally, our M&A and
related activities enable us to expand our operations in strategic
regions, notably Brazil and
Australia. Looking ahead, as we
begin to exploit the synergies of this group of new acquisitions,
we believe that, as we have done successfully in the past, we will
be able to use our combined resources more efficiently and improve
our overall margins. As we move through 2011, we are better
positioned from strategic, operational and financial perspectives,
and we look forward to solid performance in the coming quarters and
years.
Dividend:
The Board of Directors declared a dividend of $0.36 per share for the fourth quarter of 2010.
The dividend's record date is March 29,
2011, and the dividend will be paid on April 11, 2011, net of taxes and levies, at the
rate of 20%.
Conference Call:
The Company will be hosting a conference call today,
Tuesday, March 15, 2011 at
10:00 a.m. Eastern Time. 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. If you are unable to connect using the toll-free
numbers, please try the international dial-in number.
US Dial-in Numbers: 1-888-668-9141
UK Dial-in Number: 0-800-917-5108
ISRAEL Dial-in Number: 03-918-0644
INTERNATIONAL Dial-in Number: +972-3-918-0644
at: 10:00am Eastern Time; 7:00am Pacific Time; 2:00pm UK Time;
4:00pm 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 call, investors will
be able to dial a replay number to listen to the call. The dial-in
numbers are:
1-888-269-0005 (US) or +972-3-925-5921 (Israel and
International).
About Elbit Systems:
Elbit Systems Ltd. is an international defense electronics
company engaged in a wide range of 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 aircraft
systems ("UAS"), 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,
developing new technologies for defense, homeland security and
commercial aviation applications and providing a range of support
services.
For additional information, visit: http://www.elbitsystems.com.
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.
(FINANCIAL TABLES TO FOLLOW)
ELBIT SYSTEMS LTD.
CONSOLIDATED BALANCE SHEETS
(In thousands of US Dollars)
December 31 December 31
2010 2009
Audited Audited
Assets
Current assets:
Cash and cash equivalents 151,059 140,709
Short-term bank deposits 62,662 115,924
Available for sale an trading marketable
securities 824 23,639
Trade and unbilled receivables, net 702,364 652,524
Other receivables and prepaid expenses 166,124 115,856
Inventories, net of customers advances 665,270 569,848
Total current assets 1,748,303 1,618,500
Investment in affiliated companies,
partnership and other companies 88,116 88,759
Available for sale marketable securities 7,179 12,941
Long-term trade and unbilled receivables 90,343 16,949
Long-term bank deposits and other receivables 44,401 31,230
Deferred income taxes, net 29,892 7,992
Severance pay fund 302,351 274,136
562,282 432,007
Property, plant and equipment, net 503,851 404,675
Goodwill and other intangible assets, net 796,664 598,495
Total assets 3,611,100 3,053,677
Liabilities and Shareholders' Equity
Short-term bank credit and loans 15,115 -
Current maturities of long-term loans and Series A 43,093 2,663
Notes
Trade payables 360,736 299,238
Other payables and accrued expenses 645,146 557,601
Customer advances in excess of costs
incurred on contracts in progress 302,691 367,137
1,366,781 1,226,639
Long-term loans, net of current maturities 292,039 389,222
Series A Notes and Convertible debentures, net of
current maturities, 273,357 -
Accrued termination liability 395,303 350,240
Deferred income taxes and tax liabilities, net 55,936 59,602
Customer advances in excess of costs incurred
on contracts in progress 177,191 142,566
Other long-term liabilities 45,042 28,214
1,238,868 969,844
Elbit Systems Ltd.'s shareholders' equity 966,693 832,868
Non-controlling interests 38,758 24,326
Total shareholders' equity 1,005,451 857,194
Total liabilities and shareholders' equity 3,611,100 3,053,677
ELBIT SYSTEMS LTD.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands of US Dollars, except for share and per share
amounts)
For the Year Three Months
Ended Ended
December 31, December 31,
2010 2009 2010 2009
Audited Unaudited
Revenues 2,670,133 2,832,437 798,749 714,696
Cost of revenues 1,872,263 1,982,954 566,891 502,652
Gross profit 797,870 849,483 231,858 212,044
Operating expenses:
Research and development, net 234,131 216,752 68,471 61,842
Marketing and selling 229,942 250,963 65,889 59,402
General and administrative 131,200 119,311 40,831 32,506
Other income, net (4,756) - - -
590,517 587,026 175,191 153,750
Operating income 207,353 262,457 56,667 58,294
Financial expenses, net (21,251) (15,585) (11,593) (7,420)
Other income, net 13,259 458 (180) 1,326
Income before income taxes 199,361 247,330 44,894 52,200
Taxes on income (24,037) (38,109) (2,430) (413)
175,324 209,221 42,464 51,787
Equity in net earnings of
affiliated companies and
partnership 19,343 19,292 6,138 4,897
Net income 194,667 228,513 48,602 56,684
Less: net income attributable to
non-controlling interests (11,169) (13,566) (4,915) (2,968)
Net income attributable to Elbit
Systems Ltd. shareholders 183,498 214,947 43,687 53,716
Earnings per share attributable to
Elbit Systems Ltd. shareholders:
Basic net earnings per share 4.30 5.08 1.02 1.26
Diluted net earnings per share 4.25 5.00 1.01 1.24
Weighted average number of shares
used in computation of
basic earnings per share (in
thousands) 42,645 42,305 42,685 42,497
Weighted average number of shares
used in computation of
diluted earnings per share (in
thousands) 43,217 42,983 43,188 43,253
ELBIT SYSTEMS LTD.
CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands of US Dollars)
Year Ended December
31,
2010 2009
Audited
CASH FLOWS FROM OPERATING ACTIVITIES
Net income 194,667 228,513
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 132,141 123,473
Write-off impairment 1,284 3,017
Stock based compensation 5,211 5,134
Amortization of Series A Notes discounts and
related issuance costs (258) -
Deferred income taxes and reserve, net (28,162) 7,606
Gain on sale of property, plant and equipment (2,600) (723)
Gain on sale of investment (19,151) (2,734)
Equity in net earnings of affiliated companies
and partnership, net of dividend received (*) (8,418) (1,824)
Change in operating assets and liabilities, net of
amounts acquired:
Increase in short and long-term trade receivables,
and prepaid expenses (84,708) (136,224)
Decrease (increase) in inventories, net (49,724) 75,431
Increase in trade payables, other payables and
accrued expenses 76,808 20,223
Severance, pension and termination indemnities,
net 4,160 (16,773)
Decrease in advances received from customers (36,396) (95,397)
Net cash provided by operating activities 184,854 209,722
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (138,644) (107,893)
Acquisition of subsidiaries and business
operations (229,556) (48,234)
Investments in affiliated companies and other
companies (4,956) (19,415)
Proceeds from sale of property, plant and
equipment 11,841 9,055
Proceeds from sale of investment 27,941 33,026
Investment in long-term deposits (14,484) (24,004)
Proceeds fro sale of long-term bank deposits 30,240 12,994
Investment in short-term deposits and available
for sale securities (189,345) (152,457)
Proceeds from sale of short-term deposits and
available for sale securities 252,550 99,625
Net cash used in investing activities (254,413) (197,303)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of options 3,590 9,871
Purchase of non-controlling interests - (110,250)
Repayment of long-term bank loans (488,657) (148,652)
Proceeds from long-term bank loans 387,692 256,354
Proceeds from issuance of Series A Notes 283,213 -
Series A Notes issuance costs (2,530) -
Dividends paid (63,137) (76,172)
Tax benefit in respect of options exercised 710 -
Change in short-term bank credit and loans, net (40,972) (7,531)
Net cash provided by (used in) financing
activities 79,909 (76,380)
NET INCREASE (DECREASE) IN CASH AND CASH 10,350 (63,961)
EQUIVALENTS
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE 140,709 204,670
YEAR
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 151,059 140,709
* Dividend received from affiliated companies and 10,925 17,468
partnership
ELBIT SYSTEMS LTD.
DISTRIBUTION OF REVENUES
Consolidated Revenues by Areas of Operation:
For the Year Ended Three Months Ended
December 31, December 31,
2010 2009 2010 2009
$ % $ % $ % $ %
millions millions millions millions
Airborne
systems 791.1 29.6 693.2 24.5 237.6 29.7 189.2 26.5
Land systems 363.2 13.6 449.7 15.9 96.9 12.1 120.4 16.8
C4ISR systems 1,019.1 38.2 1,168.8 41.3 288.3 36.1 270.8 37.9
Electro-optics 368.8 13.8 406.4 14.3 135.5 17.0 98.7 13.8
Other (mainly
non-defense
engineering
and production
services) 127.9 4.8 114.3 4.0 40.4 5.1 35.6 5.0
Total 2,670.1 100.0 2,832.4 100.0 798.7 100.0 714.7 100.0
Consolidated Revenues by Geographical Regions:
For the Year Ended Three Months Ended
December 31, December 31,
2010 2009 2010 2009
$ % $ % $ % $ %
millions millions millions millions
Israel 651.0 24.4 627.3 22.2 192.1 24.1 159.0 22.3
United States 844.0 31.6 813.4 28.7 254.4 31.8 210.3 29.4
Europe 541.7 20.3 728.2 25.7 151.6 19.0 177.4 24.8
Other
countries 633.4 23.7 663.5 23.4 200.6 25.1 168.0 23.5
Total 2,670.1 100.0 2,832.4 100.0 798.7 100.0 714.7 100.0
Company Contact:
Joseph Gaspar, Executive VP & CFO
Tel: +972-4-8316663
j.gaspar@elbitsystems.com
Dalia Rosen, VP, Head of Corporate
Communications
Tel: +972-4-8316784
dalia.rosen@elbitsystems.com
Elbit Systems Ltd.
IR Contact:
Ehud Helft
Kenny Green
CCG Investor Relations
Tel: +1-646-201-9246
elbitsystems@ccgisrael.com
SOURCE Elbit Systems Ltd