HAIFA, Israel, Aug. 6,
2014 /PRNewswire/ -- Elbit Systems Ltd. (the "Company")
(NASDAQ and TASE: ESLT), the international defense electronics
company, reported today its consolidated results for the quarter
ended June 30, 2014.
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: "Our second quarter results demonstrate continued
solid performance. These achievements are a result of our ongoing
efforts to focus on efficiently managing our operations while
increasingly leveraging our global inter company resources and
synergies. We are pleased with the continued growth in our backlog,
which is a good indicator of potential revenue growth in the
future. We remain committed to maintaining our electronic defense
leadership, by investing in the development of new technologies and
markets with the aim of ensuring continued stability and long-term
growth."
Second quarter 2014 results:
Revenues in the second quarter of 2014 were
$702.6 million, as compared to
$702.9 million in the second quarter
of 2013.
Gross profit amounted to $199.4
million (28.4% of revenues) in the second quarter of 2014,
as compared to $203.1 million (28.9%
of revenues) in the second quarter of 2013. The non-GAAP gross
profit in the second quarter of 2014 was $204.8 million (29.1% of revenues), as compared
to $208.5 million (29.7% of revenues)
in the second quarter of 2013. The decrease in the gross profit
rate was mainly due to the mix of programs sold in the quarter and
the stronger Israeli shekel versus the US dollar in the second
quarter of 2014 compared to last year.
Research and development expenses, net, were $52.2 million (7.4% of revenues) in the second
quarter of 2014, as compared to $51.5
million (7.3% of revenues) in the second quarter of
2013.
Marketing and selling expenses were $50.3 million (7.2% of revenues) in the second
quarter of 2014, as compared to $57.1
million (8.1% of revenues) in the second quarter of 2013.
The decrease in the quarter was mainly a result of lower selling
expenses related to the mix of marketing efforts in the
quarter.
General and administrative expenses were $34.3 million (4.9% of revenues) in the second
quarter of 2014, as compared to $27.8
million (4.0% of revenues) in the second quarter of 2013.
General and administrative expenses in the second quarter of 2013
benefited from income related to a legal settlement, net of
expenses, of $7.6 million.
Operating income was $62.6
million (8.9% of revenues) in the second quarter of 2014, as
compared to operating income of $66.7
million (9.5% of revenues) in the second quarter of
2013. The non-GAAP operating income in the second quarter
of 2014 was $73.1 million
(10.4% of revenues), as compared to $70.5
million (10.0% of revenues) in the second quarter of
2013.
Financial expenses, net, were $8.3
million in the second quarter of 2014, as compared to
$12.7 million in the second quarter
of 2013. Financial expenses, net, in the second quarter of 2013
were comparatively high due to fluctuations in foreign
currencies.
Taxes on income were $9.9
million (effective tax rate of 18.1%) in the second quarter
of 2014, as compared to $5.1 million
(effective tax rate of 9.4%) in the second quarter of 2013. The
effective tax rate was 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
partnerships was $1.7 million
(0.2% of revenues) in the second quarter of 2014, as compared to
$2.5 million (0.4% of revenues) in
the second quarter of 2013.
Net income attributable to non-controlling interests was
$2.3 million in the second quarter of
2014, as compared to $3.0 million in
the second quarter of 2013.
Net income attributable to the Company's shareholders in
the second quarter of 2014 was $43.9
million (6.2% of revenues), as compared to $49.6 million (7.1% of revenues) in the second
quarter of 2013. Net income in the second quarter of 2013 benefited
from income related to a legal settlement, net of expenses, of
$7.6 million. The non-GAAP net income
in the second quarter of 2014 was $52.6
million (7.5% of revenues), as compared to $50.4 million (7.2% of revenues) in the second
quarter of 2013.
Diluted net earnings per share attributable to the
Company's shareholders were $1.03 for the second quarter of 2014, as compared
with diluted net earnings per share of $1.17 for the second quarter of 2013. The
non-GAAP diluted earnings per share in the second quarter of 2014
were $1.23, as compared with diluted
net earnings per share of $1.19 for
the second quarter of 2013.
The Company's backlog of orders as of June 30, 2014
totaled $6,174 million, as compared
to $5,804 million as of June 30,
2013. Approximately 72% of the current backlog is attributable to
orders from outside Israel.
Approximately 59% of the current backlog is scheduled to be
performed during the second half of 2014 and 2015.
Operating cash flow was $15.8
million for the first half of 2014, as compared to
$60.9 million in the first half of
2013. The Company's cash flow was negatively affected mainly by the
delay in payments from the Israeli Ministry of Defense. The Company
does not foresee a risk in the collection of these payments.
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)
|
|
|
Six Months
Ended
June 30,
|
|
Three Months
Ended
June 30,
|
|
Year Ended
December 31,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
392.6
|
|
|
395.9
|
|
|
199.4
|
|
|
203.1
|
|
|
824.8
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
10.8
|
|
|
11.0
|
|
|
5.4
|
|
|
5.4
|
|
|
22.2
|
|
Impairment of
long-lived assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
Non-GAAP
gross profit
|
403.4
|
|
|
406.9
|
|
|
204.8
|
|
|
208.5
|
|
|
847.9
|
|
Percent of
revenues
|
29.1
|
%
|
|
29.4
|
%
|
|
29.1
|
%
|
|
29.7
|
%
|
|
29.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
122.5
|
|
|
120.5
|
|
|
62.6
|
|
|
66.7
|
|
|
239.4
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
21.6
|
|
|
23.0
|
|
|
10.5
|
|
|
11.4
|
|
|
45.9
|
|
Impairment of
long-lived assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
Legal settlement,
net
|
—
|
|
|
(7.6)
|
|
|
—
|
|
|
(7.6)
|
|
|
(7.6)
|
|
Gain from changes in
holdings
|
(6.0)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Non-GAAP operating
income
|
138.1
|
|
|
135.9
|
|
|
73.1
|
|
|
70.5
|
|
|
278.6
|
|
Percent of
revenues
|
10.0
|
%
|
|
9.8
|
%
|
|
10.4
|
%
|
|
10.0
|
%
|
|
9.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to Elbit
Systems' shareholders
|
92.0
|
|
|
91.0
|
|
|
43.9
|
|
|
49.6
|
|
|
183.4
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
21.6
|
|
|
23.0
|
|
|
10.5
|
|
|
11.4
|
|
|
45.9
|
|
Impairment of
long-lived assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
Legal settlement,
net
|
—
|
|
|
(7.6)
|
|
|
—
|
|
|
(7.6)
|
|
|
(7.6)
|
|
Gain from changes in
holdings
|
(6.0)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.9)
|
|
Adjustment of gain
from discontinued operations, net
|
—
|
|
|
(0.8)
|
|
|
—
|
|
|
(1.0)
|
|
|
(0.8)
|
|
Related tax
benefits
|
(3.2)
|
|
|
(4.0)
|
|
|
(1.8)
|
|
|
(2.0)
|
|
|
(10.1)
|
|
Non-GAAP net
income attributable to
Elbit Systems' shareholders
|
104.4
|
|
|
101.6
|
|
|
52.6
|
|
|
50.4
|
|
|
210.8
|
|
Percent of
revenues
|
7.5
|
%
|
|
7.3
|
%
|
|
7.5
|
%
|
|
7.2
|
%
|
|
7.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted
net EPS
|
2.45
|
|
|
2.41
|
|
|
1.23
|
|
|
1.19
|
|
|
4.99
|
|
Recent Events:
On May 18, 2014 the Company
announced that its wholly-owned U.S. subsidiary, Elbit Systems of
America, LLC, was awarded two contracts, totaling $14.1 million, to support the upgrade of the U.S.
Marine Corps' Bell AH-1W attack helicopter fleet.
On May 28, 2014 the Company
announced that it was awarded a contract to supply systems in an
amount of $133 million for homeland
security applications to a customer in the Latin American region.
The systems are based on highly advanced and unique technologies,
including command, control and intelligence capabilities to be
operated via dedicated control centers intended to play a major
role in fighting crime, preventing violence and improving citizens'
safety and security. The contract will be performed over a one-year
period.
On June 8, 2014 the Company
announced that it was selected by the Swiss Federal Department of
Defence, Civil Protection and Sport, as the preferred supplier for
the UAS 15 new reconnaissance drone program.
On June 12, 2014 the Company
announced that its subsidiary, Elbit Systems Electro-Optics-Elop
Ltd., decided to withdraw its lawsuit filed against the Government
of Israel in November 2012 for damages and expenses caused in
connection with the cancellation of export licenses for a project
of a foreign customer.
On June 22, 2014 the Company
announced that it was awarded a contract, valued at approximately
$20 million, for the supply of
upgraded armored personnel carriers ("APCs") to the Philippines
Armed Forces. The upgrade will include 25 mm unmanned turrets, 12.7
mm remote controlled weapon stations and fire control systems for
90 mm turrets. The APCs will be supplied over a one-year
period.
Dividend:
The Board of Directors declared a dividend of $0.32 per share for the second quarter of 2014.
The dividend's record date is August 19,
2014. The dividend will be paid from income generated as
Preferred Income (as defined under Israeli tax laws), on
September 1, 2014, net of taxes and
levies, at the rate of 20%.
Conference Call:
The Company will be hosting a conference call today, Wednesday,
August 6, 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;
2:00 pm UK Time; 4:00 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
sheets
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 1943, 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, estoppal 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)
|
|
|
June
30,
|
|
December
31,
|
|
2014
|
|
2013
|
|
Unaudited
|
|
Audited
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
173,842
|
|
|
$
|
193,737
|
|
Short-term bank
deposits and marketable securities
|
102,776
|
|
|
71,625
|
|
Trade and unbilled
receivables, net
|
906,640
|
|
|
823,245
|
|
Other receivables and
prepaid expenses
|
159,526
|
|
|
151,367
|
|
Inventories, net of
customers advances
|
820,992
|
|
|
756,032
|
|
Total current
assets
|
2,163,776
|
|
|
1,996,006
|
|
|
|
|
|
|
|
Investments in
affiliated companies and partnerships
|
123,914
|
|
|
131,362
|
|
Long-term trade and
unbilled receivables
|
235,082
|
|
|
242,576
|
|
Long-term bank
deposits and other receivables
|
63,856
|
|
|
52,983
|
|
Deferred income
taxes, net
|
40,790
|
|
|
35,695
|
|
Severance pay
fund
|
318,057
|
|
|
323,388
|
|
|
781,699
|
|
|
786,004
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
461,668
|
|
|
481,408
|
|
Goodwill and other
intangible assets, net
|
663,461
|
|
|
669,750
|
|
Total
assets
|
$
|
4,070,604
|
|
|
$
|
3,933,168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Short-term bank
credit and loans
|
$
|
398
|
|
|
$
|
—
|
|
Current maturities of
long-term loans and Series A Notes
|
66,168
|
|
|
63,111
|
|
Trade
payables
|
328,565
|
|
|
301,480
|
|
Other payables and
accrued expenses
|
689,073
|
|
|
720,544
|
|
Customer advances in
excess of costs incurred on contracts in progress
|
396,964
|
|
|
349,998
|
|
|
1,481,168
|
|
|
1,435,133
|
|
|
|
|
|
|
|
Long-term loans, net
of current maturities
|
329,363
|
|
|
224,209
|
|
Series A Notes, net
of current maturities
|
327,960
|
|
|
377,812
|
|
Employee benefit
liabilities
|
400,454
|
|
|
407,855
|
|
Deferred income taxes
and tax liabilities, net
|
78,913
|
|
|
73,502
|
|
Customer advances in
excess of costs incurred on contracts in progress
|
133,332
|
|
|
164,854
|
|
Other long-term
liabilities
|
61,618
|
|
|
55,634
|
|
|
1,331,640
|
|
|
1,303,866
|
|
|
|
|
|
|
|
Elbit Systems Ltd.'s
equity
|
1,242,485
|
|
|
1,177,012
|
|
Non-controlling
interests
|
15,311
|
|
|
17,157
|
|
Total
equity
|
1,257,796
|
|
|
1,194,169
|
|
Total liabilities
and equity
|
$
|
4,070,604
|
|
|
$
|
3,933,168
|
|
ELBIT SYSTEMS
LTD.
CONSOLIDATED
STATEMENTS OF INCOME
(In thousands of US
Dollars, except for share and per share amount)
|
|
|
Six Months
Ended
June
30,
|
|
Three Months
Ended
June 30,
|
|
Year Ended
December 31,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
2013
|
|
|
Unaudited
|
|
Unaudited
|
|
Audited
|
Revenues
|
$
|
1,385,260
|
|
|
$
|
1,383,063
|
|
|
$
|
702,647
|
|
|
$
|
702,876
|
|
|
$
|
2,925,151
|
|
Cost of
revenues
|
992,706
|
|
|
987,206
|
|
|
503,291
|
|
|
499,727
|
|
|
2,100,304
|
|
Gross
profit
|
392,554
|
|
|
395,857
|
|
|
199,356
|
|
|
203,149
|
|
|
824,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development, net
|
101,161
|
|
|
102,543
|
|
|
52,219
|
|
|
51,494
|
|
|
220,482
|
|
Marketing and
selling
|
105,261
|
|
|
112,849
|
|
|
50,283
|
|
|
57,095
|
|
|
235,466
|
|
General and
administrative, net
|
69,583
|
|
|
59,981
|
|
|
34,269
|
|
|
27,815
|
|
|
129,507
|
|
Other income,
net
|
(5,951)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
270,054
|
|
|
275,373
|
|
|
136,771
|
|
|
136,404
|
|
|
585,455
|
|
Operating
income
|
122,500
|
|
|
120,484
|
|
|
62,585
|
|
|
66,745
|
|
|
239,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
(12,933)
|
|
|
(20,640)
|
|
|
(8,271)
|
|
|
(12,718)
|
|
|
(37,310)
|
|
Other income,
net
|
122
|
|
|
44
|
|
|
88
|
|
|
53
|
|
|
937
|
|
Income before income
taxes
|
109,689
|
|
|
99,888
|
|
|
54,402
|
|
|
54,080
|
|
|
203,019
|
|
Taxes on
income
|
(16,045)
|
|
|
(9,668)
|
|
|
(9,859)
|
|
|
(5,064)
|
|
|
(25,313)
|
|
|
93,644
|
|
|
90,220
|
|
|
44,543
|
|
|
49,016
|
|
|
177,706
|
|
Equity in net
earnings of affiliated companies and
partnerships
|
2,751
|
|
|
4,174
|
|
|
1,654
|
|
|
2,482
|
|
|
13,032
|
|
Income from
continuing operations
|
96,395
|
|
|
94,394
|
|
|
46,197
|
|
|
51,498
|
|
|
190,738
|
|
Income from
discontinued operations, net
|
—
|
|
|
681
|
|
|
—
|
|
|
1,022
|
|
|
681
|
|
Net
income
|
96,395
|
|
|
95,075
|
|
|
46,197
|
|
|
52,520
|
|
|
191,419
|
|
Less: net income
attributable to non-controlling interests
|
(4,360)
|
|
|
(4,113)
|
|
|
(2,315)
|
|
|
(2,965)
|
|
|
(8,002)
|
|
Net income
attributable to Elbit Systems Ltd.'s shareholders
|
$
|
92,035
|
|
|
$
|
90,962
|
|
|
$
|
43,882
|
|
|
$
|
49,555
|
|
|
$
|
183,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Elbit Systems Ltd.'s shareholders:
|
|
|
|
|
|
|
Basic net earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
2.16
|
|
|
$
|
2.15
|
|
|
$
|
1.03
|
|
|
$
|
1.16
|
|
|
$
|
4.34
|
|
Discontinued
operations
|
—
|
|
|
0.02
|
|
|
—
|
|
|
0.02
|
|
|
0.01
|
|
Total
|
$
|
2.16
|
|
|
$
|
2.17
|
|
|
$
|
1.03
|
|
|
$
|
1.18
|
|
|
$
|
4.35
|
|
Diluted net earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
2.16
|
|
|
$
|
2.14
|
|
|
$
|
1.03
|
|
|
$
|
1.15
|
|
|
$
|
4.33
|
|
Discontinued
operations
|
—
|
|
|
0.02
|
|
|
—
|
|
|
0.02
|
|
|
0.01
|
|
Total
|
$
|
2.16
|
|
|
$
|
2.16
|
|
|
$
|
1.03
|
|
|
$
|
1.17
|
|
|
$
|
4.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares (in thousands)
used in
computation of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
per share
|
42,636
|
|
|
41,977
|
|
|
42,658
|
|
|
42,047
|
|
|
42,139
|
|
Diluted earnings per
share
|
42,661
|
|
|
42,146
|
|
|
42,682
|
|
|
42,217
|
|
|
42,295
|
|
Amounts attributable
to Elbit Systems Ltd.'s shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations, net of income tax
|
$
|
92,035
|
|
|
$
|
90,143
|
|
|
$
|
43,882
|
|
|
$
|
48,533
|
|
|
$
|
182,598
|
|
Discontinued
operations, net of income tax
|
—
|
|
|
819
|
|
|
—
|
|
|
1,022
|
|
|
819
|
|
Net income
attributable to Elbit Systems Ltd.'s shareholders
|
$
|
92,035
|
|
|
$
|
90,962
|
|
|
$
|
43,882
|
|
|
$
|
49,555
|
|
|
$
|
183,417
|
|
ELBIT SYSTEMS
LTD.
CONSOLIDATED
STATEMENTS OF CASH FLOW
(In thousands of US
Dollars)
|
|
|
Six Months
Ended
June 30,
|
|
Year Ended
December 31,
|
|
2014
|
|
|
2013
|
|
|
2013
|
|
|
Unaudited
|
|
Audited
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net income
|
$
|
96,395
|
|
|
$
|
95,075
|
|
|
$
|
191,419
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
62,605
|
|
|
64,475
|
|
|
129,348
|
|
Write-off impairment
and discontinued operations, net
|
—
|
|
|
(681)
|
|
|
254
|
|
Stock-based
compensation
|
184
|
|
|
252
|
|
|
440
|
|
Amortization of Series
A Notes premium and related issuance costs, net
|
(46)
|
|
|
(46)
|
|
|
(92)
|
|
Deferred income taxes
and reserve, net
|
(1,054)
|
|
|
13,476
|
|
|
221
|
|
Loss (gain) on sale of
property, plant and equipment
|
(1,259)
|
|
|
175
|
|
|
(147)
|
|
Loss (gain) on sale of
investment
|
(5,879)
|
|
|
(514)
|
|
|
873
|
|
Equity in net loss
(earnings) of affiliated companies and partnerships, net of
dividend received (*)
|
7,247
|
|
|
(2,674)
|
|
|
468
|
|
Changes in operating
assets and liabilities, net of amounts acquired:
|
|
|
|
|
|
|
|
|
Increase in short and
long-term trade receivables, and prepaid expenses
|
(83,440)
|
|
|
(113,820)
|
|
|
(108,337)
|
|
Increase in
inventories, net
|
(64,941)
|
|
|
(36,085)
|
|
|
(4,785)
|
|
Increase (decrease) in
trade payables, other payables and accrued expenses
|
(5,211)
|
|
|
437
|
|
|
55,935
|
|
Severance, pension and
termination indemnities, net
|
(1,587)
|
|
|
4,128
|
|
|
(3,595)
|
|
Increase (decrease) in
advances received from customers
|
12,745
|
|
|
36,696
|
|
|
(95,027)
|
|
Net cash provided by
operating activities
|
15,759
|
|
|
60,894
|
|
|
166,975
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
Purchase of property,
plant and equipment and other assets
|
(26,988)
|
|
|
(32,950)
|
|
|
(63,019)
|
|
Acquisition of a
subsidiary
|
787
|
|
|
—
|
|
|
—
|
|
Investments in
affiliated companies and other companies
|
(3,536)
|
|
|
(4,975)
|
|
|
(6,222)
|
|
Proceeds from sale of
property, plant and equipment
|
7,817
|
|
|
3,041
|
|
|
3,755
|
|
Proceeds from sale of
investments
|
110
|
|
|
2,000
|
|
|
3,550
|
|
Investment in long-term
deposits
|
(403)
|
|
|
(494)
|
|
|
(2,076)
|
|
Proceeds from sale of
long-term deposits
|
602
|
|
|
94
|
|
|
795
|
|
Investment in
short-term deposits and marketable securities
|
(69,109)
|
|
|
(20,050)
|
|
|
(50,975)
|
|
Proceeds from sale of
short-term deposits and marketable securities
|
40,427
|
|
|
15,710
|
|
|
42,899
|
|
Net cash used in
investing activities
|
(50,293)
|
|
|
(37,624)
|
|
|
(71,293)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Proceeds from exercise
of options
|
3,005
|
|
|
6,455
|
|
|
18,364
|
|
Repayment of long-term
loans
|
(95,000)
|
|
|
(23,547)
|
|
|
(230,532)
|
|
Proceeds from long-term
loans
|
196,500
|
|
|
10,060
|
|
|
242,247
|
|
Repayment of Series A
Notes
|
(55,532)
|
|
|
(55,535)
|
|
|
(55,535)
|
|
Dividends paid
(**)
|
(34,732)
|
|
|
(34,254)
|
|
|
(75,549)
|
|
Change in short-term
bank credit and loans, net
|
398
|
|
|
8,988
|
|
|
(181)
|
|
Net cash provided by
(used in) financing activities
|
14,639
|
|
|
(87,833)
|
|
|
(101,186)
|
|
NET DECREASE IN CASH
AND CASH EQUIVALENTS
|
(19,895)
|
|
|
(64,563)
|
|
|
(5,504)
|
|
Cash and cash
equivalents at the beginning of the year
|
193,737
|
|
|
199,241
|
|
|
199,241
|
|
Cash and cash
equivalents at the end of the period
|
$
|
173,842
|
|
|
$
|
134,678
|
|
|
$
|
193,737
|
|
* Dividend received
from affiliated companies and partnerships
|
$
|
9,998
|
|
|
$
|
1,500
|
|
|
$
|
13,500
|
|
|
|
|
|
|
|
|
|
|
** Dividends paid to
the Company's shareholders and minority shareholders of a
subsidiary.
|
ELBIT SYSTEMS
LTD.
DISTRIBUTION OF
REVENUES
(In millions of US
Dollars)
|
|
Consolidated
Revenues by Areas of Operation:
|
|
|
Six Months
Ended
|
|
Three Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
Airborne
systems
|
579.1
|
|
|
41.8
|
|
|
562.1
|
|
|
40.6
|
|
|
289.1
|
|
|
41.1
|
|
|
278.8
|
|
|
39.7
|
|
Land
systems
|
123.4
|
|
|
8.9
|
|
|
119.8
|
|
|
8.7
|
|
|
65.1
|
|
|
9.3
|
|
|
63.5
|
|
|
9.0
|
|
C4ISR
systems
|
511.1
|
|
|
36.9
|
|
|
498.5
|
|
|
36.0
|
|
|
260.9
|
|
|
37.1
|
|
|
258.3
|
|
|
36.7
|
|
Electro-optic
systems
|
125.3
|
|
|
9.0
|
|
|
159.5
|
|
|
11.5
|
|
|
59.7
|
|
|
8.5
|
|
|
78.4
|
|
|
11.2
|
|
Other (mainly
non-defense
engineering and production
services)
|
46.4
|
|
|
3.4
|
|
|
43.2
|
|
|
3.2
|
|
|
27.9
|
|
|
4.0
|
|
|
23.9
|
|
|
3.4
|
|
Total
|
1,385.3
|
|
|
100.0
|
|
|
1,383.1
|
|
|
100.0
|
|
|
702.7
|
|
|
100.0
|
|
|
702.9
|
|
|
100.0
|
|
|
|
|
|
Consolidated
Revenues by Geographic Regions:
|
|
|
Six Months
Ended
|
|
Three Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
Israel
|
331.6
|
|
|
23.9
|
|
|
288.9
|
|
|
20.9
|
|
|
168.6
|
|
|
24.0
|
|
|
150.3
|
|
|
21.4
|
|
North
America
|
410.5
|
|
|
29.6
|
|
|
413.9
|
|
|
29.9
|
|
|
215.6
|
|
|
30.7
|
|
|
194.8
|
|
|
27.7
|
|
Europe
|
204.5
|
|
|
14.8
|
|
|
270.7
|
|
|
19.6
|
|
|
96.8
|
|
|
13.8
|
|
|
150.6
|
|
|
21.4
|
|
Latin
America
|
171.0
|
|
|
12.3
|
|
|
132.6
|
|
|
9.6
|
|
|
101.7
|
|
|
14.5
|
|
|
67.3
|
|
|
9.5
|
|
Asia-Pacific
|
235.4
|
|
|
17.0
|
|
|
260.5
|
|
|
18.8
|
|
|
117.9
|
|
|
16.8
|
|
|
130.7
|
|
|
18.6
|
|
Other
countries
|
32.3
|
|
|
2.4
|
|
|
16.5
|
|
|
1.2
|
|
|
2.1
|
|
|
0.2
|
|
|
9.2
|
|
|
1.4
|
|
Total
|
1,385.3
|
|
|
100.0
|
|
|
1,383.1
|
|
|
100.0
|
|
|
702.7
|
|
|
100.0
|
|
|
702.9
|
|
|
100.0
|
|
SOURCE Elbit Systems Ltd.