HAIFA, Israel, March 19, 2014 /PRNewswire/ -- Elbit
Systems Ltd. (the "Company") (NASDAQ and TASE: ESLT), the
international defense electronics company, reported today its
consolidated results for the fourth quarter and full year ended
December 31, 2013.
In this release, the Company is providing 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.
Management Comment:
Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems,
commented: "I am pleased with our 2013 full year results that show
growth in revenues and backlog, as well as a continued trend of
controlling operational costs. The record backlog provides us good
visibility into 2014 and beyond. Our continued focus on maintaining
an efficient operation, while taking advantage of synergies across
the various parts of our organization, resulted in solid year over
year improvements in our margins.
Recently, we implemented some organizational changes to enhance
our market position in the areas of cyber and intelligence systems
as well as commercial avionics systems. We consider both of these
areas as growth engines for the Company and complementary to our
traditional defense-based business lines.
Looking back on last year, I believe Elbit Systems is well
positioned financially, with diversification across our range of
markets and business lines. We look forward to the opportunities
ahead in 2014."
Machlis added: "I would like to express my gratitude to Elbit
Systems' employees, who have invested great effort in reaching
these achievements. They are the key factor to our success."
Fourth quarter 2013 results:
Revenues in the fourth quarter of 2013 were $811.5 million, as compared to $843.9 million in the fourth quarter of 2012.
Gross profit amounted to $221.5
million (27.3% of revenues) in the fourth quarter of 2013,
as compared to $239.0 million (28.3%
of revenues) in the fourth quarter of 2012. The non-GAAP gross
profit in the fourth quarter of 2013 was $228.1 million (28.1% of revenues), compared to
$247.6 million (29.3% of revenues) in
the fourth quarter of 2012.
Research and development expenses, net were $63.9 million (7.9% of revenues) in the fourth
quarter of 2013, as compared to $68.3
million (8.1% of revenues) in the fourth quarter of
2012.
Marketing and selling expenses were $60.7 million (7.5% of revenues) in the fourth
quarter of 2013, as compared to $61.6
million (7.3% of revenues) in the fourth quarter of
2012.
General and administrative expenses were $39.1 million (4.8% of revenues) in the fourth
quarter of 2013, as compared to $38.9
million (4.6% of revenues) in the fourth quarter of
2012.
Operating income was $57.9
million (7.1% of revenues) in the fourth quarter of 2013, as
compared to operating income of $70.2
million (8.3% of revenues) in the fourth quarter of
2012. The non-GAAP operating income in the fourth quarter of
2013 was 70.5 million (8.7% of revenues), as compared to
$83.3 million (9.9% of revenues) in
the fourth quarter of 2012.
Financial expenses, net were $10.0
million in the fourth quarter of 2013, as compared to
$10.6 million in the fourth quarter
of 2012.
Taxes on income were $8.1
million in the fourth quarter of 2013, as compared to
$2.9 million in the fourth quarter of
2012. The lower tax rate in the fourth quarter of 2012 was
mainly a result of prior years adjustments.
Equity in net earnings of affiliated companies and
partnerships was $5.5 million
(0.7% of revenues) in the fourth quarter of 2013, as compared to
$2.3 million (0.3 % of revenues) in
the fourth quarter of 2012.
Net income attributable to non-controlling interests was
$2.3 million in the fourth quarter of
2013, as compared to $1.8 million in
the fourth quarter of 2012.
Net income attributable to the Company's shareholders in
the fourth quarter of 2013 was $42.9
million (5.3% of revenues), as compared to $57.2 million (6.8% of revenues) in the fourth
quarter of 2012. The non-GAAP net income in the fourth quarter of
2013 was $53.5 million (6.6% of
revenues), as compared to $67.9
million (8.0% of revenues) in the fourth quarter of
2012.
Diluted net earnings per share attributable to the
Company's shareholders were $1.01 for the fourth quarter of 2013, as compared
with diluted net earnings per share of $1.36 for the fourth quarter of 2012. The
non-GAAP diluted earnings per share in the fourth quarter of 2013
were $1.26, as compared to
$1.62 in the fourth quarter of
2012.
Full year 2013 results:
Revenues for the year ended December 31, 2013 were $2,925.2 million, as compared to $2,888.6 million in the year ended December 31, 2012. The leading contributors to
the Company's revenues in 2013 were the airborne systems and C4ISR
systems areas of operations. The increases in the airborne systems
and C4ISR systems areas of operation were primarily due to
increased revenues in Israel for
avionic systems, command and control systems and maintenance
services sold to the Israel Ministry of Defense ("IMOD"). The
decrease in the land systems area of operations was mainly due to a
decline in revenues for fire control and life support systems in
Israel and North America.
In terms of the geographic breakdown of revenues, the decline in
revenues in North America was
mainly as a result of reduced revenues relating to the areas of
electro-optics and other (mainly non-defense engineering and
production services). The decline in revenues in Asia-Pacific was mainly a result of reduced
revenues relating to avionics and fire control systems. The
increase in revenues in Israel was
mainly due to increased sales of command and control systems and
electro-optic systems.
Cost of revenues for the year ended December 31, 2013 was $2,100.3 million (71.8% of revenues), as compared
to $2,072.7 million (71.8% of
revenues) in the year ended December
31, 2012.
Gross profit for the year ended December 31, 2013 was $824.8 million (28.2% of revenues), as compared
to gross profit of $815.9 million
(28.2% of revenues) in the year ended December 31, 2012. The non-GAAP gross profit in
2013 was $847.9 million (29.0%
of revenues), as compared to $840.1
million (29.1% of revenues) in 2012.
Research and development expenses, net for the year ended
December 31, 2013 were $220.5 million (7.5% of revenues), as compared to
$233.4 million (8.1% of revenues) in
the year ended December 31, 2012.
Marketing and selling expenses for the year ended
December 31, 2013 were $235.5 million (8.0% of revenues), as compared to
$241.9 million (8.4% of revenues) in
the year ended December 31, 2012.
General and administrative expenses for the year ended
December 31, 2013 were $129.5 million (4.4% of revenues), as compared to
$137.5 million (4.8% of revenues) in
the year ended December 31, 2012.
General and administrative expenses in 2013 benefited from income
related to a legal settlement, net of expenses, of $7.6 million.
Operating income for the year ended December 31, 2013 was $239.4 million (8.2% of revenues), as compared to
operating income of $203.1 million
(7.0% of revenues), in the year ended December 31, 2012. The non-GAAP operating income
in 2013 was $278.6 million (9.5% of
revenues) compared with $252.3
million (8.7% of revenues) in 2012.
Financial expenses, net for the year ended December 31, 2013 were $37.3 million, as compared to $26.1 million in the year ended December 31, 2012. Financial expenses in 2013
were comparatively high due to fluctuation in foreign currencies,
such as the Australian dollar and the Brazilian real, during the
year.
Taxes on income for the year ended December 31, 2013 were $25.3 million (effective tax rate of 12.5%), as
compared to taxes on income of $17.1
million (effective tax rate of 9.7%) in the year ended
December 31, 2012. The effective tax
rate is affected by the mix of the tax rates in the various
jurisdictions in which the Company's entities generate taxable
income and the settlement of tax audits including adjustments for
prior years.
Equity in net earnings of affiliated companies and
partnerships for the year ended December
31, 2013 was $13.0 million
(0.4% of revenues), as compared to $11.2
million (0.4% of revenues) in the year ended December 31, 2012.
Gain from discontinued operations, net for the year ended
December 31, 2013 amounted to
$0.7 million, as compared to a loss
of $0.6 million in 2012. In the
second quarter of 2013 the Company sold its holdings in a
held-for-sale entity and recognized a gain of approximately
$1.0 million in discontinued
operations.
Net income attributable to non-controlling interests for
the year ended December 31, 2013 was
$8.0 million, as compared to
$2.6 million in the year ended
December 31, 2012.
Net income attributable to the Company's shareholders for
the year ended December 31, 2013 was
$183.4 million (6.3% of revenues), as
compared to $167.9 million (5.8% of
revenues) in the year ended December 31,
2012. The non-GAAP net income in the year ended December 31, 2013 was $210.8 million (7.2% of revenues), as compared to
$206.3 million (7.1% of revenues) in
the year ended December 31, 2012.
Diluted net earnings per share attributable to the
Company's shareholders for the year ended December 31, 2013 were $4.34, as compared to $3.97 for the year ended December 31, 2012. The non-GAAP diluted net
earnings per share in the year ended December 31, 2013 were $4.99 as compared to $4.88 in the year ended December 31, 2012.
The Company's backlog of orders for the year ended
December 31, 2013 totaled
$5,822 million, as compared to
$5,683 million as of December 31, 2012. Approximately 69% of the
current backlog is attributable to orders from outside Israel. Approximately 69% of the current
backlog is scheduled to be performed during 2014 and 2015.
Operating cash flow for the year ended December 31, 2013 was $167.0 million, as compared to $198.4 million in the year ended December 31, 2012.
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 the
Company's 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 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, the Company made certain
adjustments, as indicated in the table below.
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 to Non-GAAP (Unaudited)
Supplemental Financial Data:
(US Dollars in millions)
|
Three Months
ended
December
31
|
|
|
Year
ended
December
31
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
221.5
|
|
|
239.0
|
|
|
824.8
|
|
|
815.9
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
5.7
|
|
|
8.6
|
|
|
22.2
|
|
|
24.2
|
|
|
Impairment of
long-lived assets
|
0.9
|
|
|
—
|
|
|
0.9
|
|
|
—
|
|
|
Non-GAAP
gross profit
|
228.1
|
|
|
247.6
|
|
|
847.9
|
|
|
840.1
|
|
|
Percent of
revenues
|
28.1
|
%
|
|
29.3
|
%
|
|
29.0
|
%
|
|
29.1
|
%
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
57.9
|
|
|
70.2
|
|
|
239.4
|
|
|
203.1
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
11.7
|
|
|
13.1
|
|
|
45.9
|
|
|
49.2
|
|
|
Impairment of
long-lived assets
|
0.9
|
|
|
—
|
|
|
0.9
|
|
|
—
|
|
|
Legal
settlements
|
—
|
|
|
—
|
|
|
(7.6)
|
|
|
—
|
|
|
Non-GAAP operating
income
|
70.5
|
|
|
83.3
|
|
|
278.6
|
|
|
252.3
|
|
|
Percent of
revenues
|
8.7
|
%
|
|
9.9
|
%
|
|
9.5
|
%
|
|
8.7
|
%
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to Elbit Systems' shareholders
|
42.9
|
|
|
57.2
|
|
|
183.4
|
|
|
167.9
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
11.7
|
|
|
13.1
|
|
|
45.9
|
|
|
49.2
|
|
|
Impairment of
long-lived assets
|
0.9
|
|
|
—
|
|
|
0.9
|
|
|
—
|
|
|
Legal
settlements
|
—
|
|
|
—
|
|
|
(7.6)
|
|
|
—
|
|
|
Gain from changes in
holdings
|
—
|
|
|
—
|
|
|
(0.9)
|
|
|
(2.3)
|
|
|
Adjustment of loss
(gain) from discontinued operations, net
|
—
|
|
|
0.1
|
|
|
(0.8)
|
|
|
0.4
|
|
|
Related tax
benefits
|
(2.0)
|
|
|
(2.5)
|
|
|
(10.1)
|
|
|
(8.9)
|
|
|
Non-GAAP net
income attributable to Elbit Systems' shareholders
|
53.5
|
|
|
67.9
|
|
|
210.8
|
|
|
206.3
|
|
|
Percent of
revenues
|
6.6
|
%
|
|
8.0
|
%
|
|
7.2
|
%
|
|
7.1
|
%
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted
net EPS
|
1.26
|
|
|
1.62
|
|
|
4.99
|
|
|
4.88
|
|
Recent Events:
On December 22, 2013, the Company
announced that the Australian Department of Defence exercised
options for additional quantities under an extant contract via a
contract change, and also engaged Elbit Systems to conduct a Risk
Reduction Activity via a survey and quote under the terms of an
extant contract. The total value of both activities is
approximately $229 million (excluding
GST). The contract will be performed over a three-year period.
On January 15, 2014, the Company
announced that it was awarded a contract by the IMOD, valued at
approximately $15 million, to upgrade
the Israeli Air Force's ("IAF") C-130H (Hercules) transport
aircraft. The contract will be performed over a two-year period.
Elbit Systems will supply the IAF with additional C-130H
capabilities, as a follow-on to a previous IMOD contract signed in
2012. The new capabilities will allow the aircraft to meet the
stringent international CNS/ATM (Communications Navigation and
Surveillance/Air Traffic Management) standard and operate in
commercial airspace.
On February 5, 2014, the Company
announced that it was awarded an IMOD contract, in the amount of
approximately $23 million, for the
operation and maintenance of ground simulators in use by the
Israeli Ground Forces. The contract will be performed over a
five-year period.
On March 2, 2014, the Company
announced, in response to press reports regarding the award to its
U.S. subsidiary of a $145 million
contract by the United States Department of Homeland Security
Customs and Border Protection (CBP) for the Integrated Fixed Tower
project, that the contract includes a base period quantity and
options that CBP may exercise over a multi-year period. Currently,
CBP awarded the base period quantity for a portion of the
$145 million contract amount, to be
implemented over an approximately 12-month period.
Dividend:
The Board of Directors declared a dividend of $0.30 per share for the fourth quarter of 2013.
The dividend's record date is March 28,
2014, and the dividend will be paid on April 9, 2014, net of taxes and levies, at the
rate of 20%.
Conference Call:
The Company will be hosting a conference call today,
Wednesday, March 19, 2014 at
9:00 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 0609
INTERNATIONAL Dial-in Number: +972 3 918 0609
at: 9:00 am Eastern Time;
6:00 am Pacific Time; 1:00 pm UK 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 call, investors will
be able to dial a replay number to listen to the call. The dial-in
numbers are:
1 888 326 9310 (US) or +972 3 925 5901
(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, signal intelligence ("SIGINT") systems, data
links and 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,
including training and simulation systems.
For additional information, visit: www.elbitsystems.com or
follow us on Twitter.
Attachments:
Consolidated balance sheet
Consolidated statements of income
Consolidated statements of cash flow
Consolidated revenue distribution by areas of operation and by
geographical regions
|
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
GK Investor
Relations
Tel:
1-646-201-9246
elbitsystems@gkir.com
|
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. , its logo, brand, product, service, and
process names appearing in this Press Release are the trademarks or
service marks of Elbit Systems Ltd. or its affiliated
companies. All other brand, product, service, and process
names appearing are the trademarks of their respective
holders. Reference to or use of a product, service, or
process other than those of Elbit Systems Ltd. does not imply
recommendation, approval, affiliation, or sponsorship of that
product, service, or process by Elbit Systems Ltd. Nothing
contained herein shall be construed as conferring by implication,
estoppel, or otherwise any license or right under any patent,
copyright, trademark, or other intellectual property right of Elbit
Systems Ltd. or any third party, except as expressly granted
herein.
ELBIT SYSTEMS LTD.
CONSOLIDATED BALANCE SHEETS
(In thousands of US Dollars)
|
As of December
31,
|
|
2013
|
|
2012
|
|
Audited
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
193,737
|
|
|
$
|
199,241
|
|
|
Short-term bank
deposits and marketable securities
|
71,625
|
|
|
65,555
|
|
|
Trade and unbilled
receivables, net
|
823,245
|
|
|
688,129
|
|
|
Other receivables and
prepaid expenses
|
151,367
|
|
|
180,103
|
|
|
Inventories, net of
customers advances
|
756,032
|
|
|
751,247
|
|
|
Total current
assets
|
1,996,006
|
|
|
1,884,275
|
|
|
|
|
|
|
Investments in
affiliated companies and partnerships
|
131,362
|
|
|
126,482
|
|
|
Long-term trade and
unbilled receivables
|
242,576
|
|
|
229,687
|
|
|
Long-term bank
deposits and other receivables
|
52,983
|
|
|
19,269
|
|
|
Deferred income
taxes, net
|
35,695
|
|
|
31,465
|
|
|
Severance pay
fund
|
323,388
|
|
|
302,680
|
|
|
786,004
|
|
|
709,583
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
481,408
|
|
|
501,286
|
|
|
Goodwill and other
intangible assets, net
|
669,750
|
|
|
715,561
|
|
|
Total
assets
|
$
|
3,933,168
|
|
|
$
|
3,810,705
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
Short-term bank
credit and loans
|
$
|
—
|
|
|
$
|
181
|
|
|
Current maturities of
long-term loans and Series A Notes
|
63,111
|
|
|
90,056
|
|
|
Trade
payables
|
301,480
|
|
|
260,975
|
|
|
Other payables and
accrued expenses
|
720,544
|
|
|
704,450
|
|
|
Customer advances in
excess of costs incurred on contracts in progress
|
349,998
|
|
|
453,382
|
|
|
1,435,133
|
|
|
1,509,044
|
|
|
|
|
|
|
Long-term loans, net
of current maturities
|
224,209
|
|
|
173,745
|
|
|
Series A Notes, net
of current maturities
|
377,812
|
|
|
408,610
|
|
|
Employee benefit
liabilities
|
407,855
|
|
|
407,661
|
|
|
Deferred income taxes
and tax liabilities, net
|
73,502
|
|
|
48,787
|
|
|
Customer advances in
excess of costs incurred on contracts in progress
|
164,854
|
|
|
156,497
|
|
|
Other long-term
liabilities
|
55,634
|
|
|
55,735
|
|
|
1,303,866
|
|
|
1,251,035
|
|
|
|
|
|
|
Elbit Systems Ltd.'s
equity
|
1,177,012
|
|
|
1,017,115
|
|
|
Non-controlling
interests
|
17,157
|
|
|
33,511
|
|
|
Total
equity
|
1,194,169
|
|
|
1,050,626
|
|
|
Total liabilities and
equity
|
$
|
3,933,168
|
|
|
$
|
3,810,705
|
|
ELBIT SYSTEMS LTD.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands of US Dollars, except for share and per share
amounts)
|
Year Ended
December
31,
|
|
Three Months
Ended
December 31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Audited
|
|
Unaudited
|
|
Revenues
|
$
|
2,925,151
|
|
|
$
|
2,888,607
|
|
|
$
|
811,460
|
|
|
$
|
843,917
|
|
|
Cost of
revenues
|
2,100,304
|
|
|
2,072,742
|
|
|
589,911
|
|
|
604,879
|
|
|
Gross
profit
|
824,847
|
|
|
815,865
|
|
|
221,549
|
|
|
239,038
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development, net
|
220,482
|
|
|
233,387
|
|
|
63,927
|
|
|
68,273
|
|
|
Marketing and
selling
|
235,466
|
|
|
241,911
|
|
|
60,711
|
|
|
61,586
|
|
|
General and
administrative
|
129,507
|
|
|
137,517
|
|
|
39,058
|
|
|
38,938
|
|
|
585,455
|
|
|
612,815
|
|
|
163,696
|
|
|
168,797
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
239,392
|
|
|
203,050
|
|
|
57,853
|
|
|
70,241
|
|
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
(37,310)
|
|
|
(26,086)
|
|
|
(10,035)
|
|
|
(10,562)
|
|
|
Other income,
net
|
937
|
|
|
78
|
|
|
12
|
|
|
2
|
|
|
Income before income
taxes
|
203,019
|
|
|
177,042
|
|
|
47,830
|
|
|
59,681
|
|
|
Taxes on
income
|
(25,313)
|
|
|
(17,099)
|
|
|
(8,114)
|
|
|
(2,896)
|
|
|
177,706
|
|
|
159,943
|
|
|
39,716
|
|
|
56,785
|
|
|
|
|
|
|
|
|
|
|
Equity in net
earnings of affiliated companies and partnerships
|
13,032
|
|
|
11,160
|
|
|
5,465
|
|
|
2,294
|
|
|
Income from
continuing operations
|
190,738
|
|
|
171,103
|
|
|
45,181
|
|
|
59,079
|
|
|
Income (loss) from
discontinued operations, net
|
681
|
|
|
(616)
|
|
|
—
|
|
|
(97)
|
|
|
Net income
|
191,419
|
|
|
170,487
|
|
|
45,181
|
|
|
58,982
|
|
|
|
|
|
|
|
|
|
|
Less: net income
attributable to non-controlling interests
|
(8,002)
|
|
|
(2,608)
|
|
|
(2,312)
|
|
|
(1,773)
|
|
|
Net income
attributable to Elbit Systems Ltd.'s shareholders
|
$
|
183,417
|
|
|
$
|
167,879
|
|
|
$
|
42,869
|
|
|
$
|
57,209
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Elbit Systems Ltd.'s shareholders:
|
|
|
|
|
|
|
|
|
Basic net earnings
per share
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
4.34
|
|
|
$
|
3.99
|
|
|
$
|
1.01
|
|
|
$
|
1.37
|
|
|
Discontinued
operations
|
0.01
|
|
|
(0.01)
|
|
|
—
|
|
|
—
|
|
|
Total
|
$
|
4.35
|
|
|
$
|
3.98
|
|
|
$
|
1.01
|
|
|
$
|
1.37
|
|
|
Diluted net earnings
per share
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
4.33
|
|
|
$
|
3.98
|
|
|
$
|
1.01
|
|
|
$
|
1.36
|
|
|
Discontinued
operations
|
0.01
|
|
|
(0.01)
|
|
|
—
|
|
|
—
|
|
|
Total
|
$
|
4.34
|
|
|
$
|
3.97
|
|
|
$
|
1.01
|
|
|
$
|
1.36
|
|
|
Weighted average
number of shares used in computation of basic earnings per share
(in thousands)
|
42,139
|
|
|
42,190
|
|
|
42,427
|
|
|
41,874
|
|
|
Weighted average
number of shares used in computation of diluted earnings per share
(in thousands)
|
42,295
|
|
|
42,277
|
|
|
42,542
|
|
|
41,985
|
|
|
Amounts attributable
to Elbit Systems Ltd.'s shareholders
|
|
|
|
|
|
|
|
|
Income from
continuing operations, net of income tax
|
$
|
182,598
|
|
|
$
|
168,245
|
|
|
$
|
42,869
|
|
|
$
|
57,267
|
|
|
Discontinued
operations, net of income tax
|
819
|
|
|
(366)
|
|
|
—
|
|
|
(58)
|
|
|
Net income
attributable to Elbit Systems Ltd.'s shareholders
|
$
|
183,417
|
|
|
$
|
167,879
|
|
|
$
|
42,869
|
|
|
$
|
57,209
|
|
ELBIT SYSTEMS LTD.
CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands of US Dollars)
|
Year Ended December
31,
|
|
2013
|
|
2012
|
|
Audited
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
Net income
|
$
|
191,419
|
|
|
$
|
170,487
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
129,348
|
|
|
138,796
|
|
|
Write-off of
impairment and discontinued operations, net
|
254
|
|
|
616
|
|
|
Stock-based
compensation
|
440
|
|
|
3,028
|
|
|
Amortization of Series
A Notes discount (premium) and related issuance costs,
net
|
(92)
|
|
|
153
|
|
|
Deferred income taxes
and reserve, net
|
221
|
|
|
6,579
|
|
|
Loss (gain) on sale of
property, plant and equipment
|
(147)
|
|
|
1,197
|
|
|
Loss (gain) on sale of
investment
|
873
|
|
|
(829)
|
|
|
Equity in net loss
(earnings) of affiliated companies and partnerships, net of
dividend received (*)
|
468
|
|
|
(1,602)
|
|
|
Changes in operating
assets and liabilities, net of amounts acquired:
|
|
|
|
|
Increase in short and
long-term trade receivables, and prepaid expenses
|
(108,337)
|
|
|
(91,988)
|
|
|
Decrease (increase) in
inventories, net
|
(4,785)
|
|
|
10,022
|
|
|
Increase (decrease) in
trade payables, other payables and accrued expenses
|
55,935
|
|
|
(75,426)
|
|
|
Severance, pension and
termination indemnities, net
|
(3,595)
|
|
|
(10,612)
|
|
|
Increase (decrease) in
advances received from customers
|
(95,027)
|
|
|
47,961
|
|
|
Net cash provided by
operating activities
|
166,975
|
|
|
198,382
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
Purchase of property,
plant and equipment
|
(63,019)
|
|
|
(81,637)
|
|
|
Investments in
affiliated companies and other companies
|
(6,222)
|
|
|
(4,241)
|
|
|
Proceeds from sale of
property, plant and equipment
|
3,755
|
|
|
7,335
|
|
|
Proceeds from sale of
investments
|
3,550
|
|
|
705
|
|
|
Investment in
long-term deposits
|
(2,076)
|
|
|
(779)
|
|
|
Proceeds from sale of
long-term deposits
|
795
|
|
|
2,849
|
|
|
Investment in
short-term deposits and available-for-sale marketable
securities
|
(50,975)
|
|
|
(340,899)
|
|
|
Proceeds from sale of
short-term deposits and available-for-sale marketable
securities
|
42,899
|
|
|
299,029
|
|
|
Net cash used in
investing activities
|
(71,293)
|
|
|
(117,638)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
Proceeds from exercise
of options
|
18,364
|
|
|
1,352
|
|
|
Repayment of long-term
loans
|
(230,532)
|
|
|
(319,601)
|
|
|
Proceeds from
long-term loans
|
242,247
|
|
|
122,038
|
|
|
Proceeds from issuance
of Series A Notes
|
—
|
|
|
246,973
|
|
|
Series A Notes
issuance costs
|
—
|
|
|
(2,035)
|
|
|
Purchase of treasury
shares
|
—
|
|
|
(26,006)
|
|
|
Repayment of Series A
Notes and convertible debentures
|
(55,535)
|
|
|
(53,530)
|
|
|
Dividends paid
(**)
|
(75,549)
|
|
|
(50,616)
|
|
|
Tax benefit in respect
of options exercised
|
—
|
|
|
161
|
|
|
Change in short-term
bank credit and loans, net
|
(181)
|
|
|
(2,817)
|
|
|
Net cash used in
financing activities
|
(101,186)
|
|
|
(84,081)
|
|
|
|
|
|
|
NET DECREASE IN CASH
AND CASH EQUIVALENTS
|
(5,504)
|
|
|
(3,336)
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS AT THE BEGINNING OF THE YEAR
|
199,241
|
|
|
202,577
|
|
|
CASH AND CASH
EQUIVALENTS AT THE END OF THE YEAR
|
$
|
193,737
|
|
|
$
|
199,241
|
|
|
|
|
|
|
* Dividend received
from affiliated companies and partnerships
|
$
|
13,500
|
|
|
$
|
9,558
|
|
** Includes $24.9 million
dividends paid to minority shareholder of a subsidiary.
ELBIT SYSTEMS LTD.
DISTRIBUTION OF REVENUES
Consolidated Revenues by Areas of Operation:
|
Year Ended
|
|
|
Three Months
Ended
|
|
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
$ millions
|
|
%
|
|
$ millions
|
|
%
|
|
$ millions
|
|
%
|
|
$ millions
|
|
%
|
|
|
Airborne
systems
|
1,133.1
|
|
|
38.8
|
|
|
1,054.5
|
|
|
36.5
|
|
|
283.8
|
|
|
35.0
|
|
|
261.0
|
|
|
30.9
|
|
|
Land
systems
|
309.3
|
|
|
10.6
|
|
|
374.5
|
|
|
13.0
|
|
|
113.9
|
|
|
14.0
|
|
|
110.2
|
|
|
13.1
|
|
|
C4ISR
systems
|
1,071.4
|
|
|
36.6
|
|
|
1,017.6
|
|
|
35.2
|
|
|
299.5
|
|
|
36.9
|
|
|
340.9
|
|
|
40.4
|
|
|
Electro-optic
systems
|
313.9
|
|
|
10.7
|
|
|
324.1
|
|
|
11.2
|
|
|
86.6
|
|
|
10.7
|
|
|
112.6
|
|
|
13.3
|
|
|
Other (mainly
non-defense
engineering and
production services)
|
97.5
|
|
|
3.3
|
|
|
117.9
|
|
4.1
|
|
27.7
|
|
|
3.4
|
|
|
19.2
|
|
2.3
|
|
|
Total
|
2,925.2
|
|
|
100.0
|
|
|
2,888.6
|
|
|
100.0
|
|
|
811.5
|
|
|
100.0
|
|
|
843.9
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Revenues by Geographical Regions:
|
Year Ended
|
|
|
Three Months
Ended
|
|
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
$ millions
|
|
%
|
|
$ millions
|
|
%
|
|
$ millions
|
|
%
|
|
$ millions
|
|
%
|
|
|
Israel
|
705.7
|
|
|
24.1
|
|
|
519.9
|
|
|
18.0
|
|
|
235.1
|
|
|
29.0
|
|
|
163.9
|
|
|
19.4
|
|
|
North
America
|
860.7
|
|
|
29.4
|
|
|
909.4
|
|
|
31.5
|
|
|
229.7
|
|
|
28.3
|
|
|
245.9
|
|
|
29.1
|
|
|
Europe
|
546.7
|
|
|
18.7
|
|
|
561.1
|
|
|
19.4
|
|
|
148.8
|
|
|
18.3
|
|
|
193.1
|
|
|
22.9
|
|
|
Latin
America
|
283.0
|
|
|
9.7
|
|
|
258.8
|
|
|
9.0
|
|
|
72.1
|
|
|
8.9
|
|
|
82.8
|
|
|
9.8
|
|
|
Asia
Pacific
|
448.1
|
|
|
15.3
|
|
|
568.4
|
|
|
19.7
|
|
|
90.7
|
|
|
11.2
|
|
|
145.0
|
|
|
17.2
|
|
|
Other
countries
|
81.0
|
|
|
2.8
|
|
|
71.0
|
|
|
2.4
|
|
|
35.1
|
|
|
4.3
|
|
|
13.2
|
|
|
1.6
|
|
|
Total
|
2,925.2
|
|
|
100.0
|
|
|
2,888.6
|
|
|
100.0
|
|
|
811.5
|
|
|
100.0
|
|
|
843.9
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Elbit Systems Ltd.