HAIFA, Israel, March 11,
2015 /PRNewswire/ -- Elbit Systems Ltd. (the "Company")
(NASDAQ and TASE: ESLT), the international high technology
defense and homeland security company, reported today its
consolidated results for the fourth quarter and full year ended
December 31, 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: "We are pleased with our performance for the fourth
quarter and the full year for 2014, which indicates a solid
business base. We are encouraged by the growth in our backlog over
the past year which, as expected, led to an increase in revenues.
This is an indication of our growth potential, while providing us
with good visibility into the coming years. Another important
element of our results is the solid growth in two important target
regions for us, Latin America and
Asia-Pacific. These results,
combined with a somewhat more favorable macro-environment for
defense spending, lead us to be optimistic with regard to
2015".
Fourth quarter 2014 results:
Revenues in the fourth quarter of 2014 were
$850.3 million, as compared to
$811.5 million in the fourth quarter
of 2013.
Gross profit amounted to $229.5
million (27.0% of revenues) in the fourth quarter of 2014,
as compared to $221.5 million (27.3%
of revenues) in the fourth quarter of 2013. The non-GAAP gross
profit in the fourth quarter of 2014 was $235.0 million (27.6% of revenues), as compared
to $228.1 million (28.1% of revenues)
in the fourth quarter of 2013.
Research and development expenses, net, were $71.0 million (8.4% of revenues) in the fourth
quarter of 2014, as compared to $63.9
million (7.9% of revenues) in the fourth quarter of
2013.
Marketing and selling expenses, net, were $59.5 million (7.0% of revenues) in the fourth
quarter of 2014, as compared to $60.7
million (7.5% of revenues) in the fourth quarter of
2013.
General and administrative expenses, net, were
$34.8 million (4.1% of revenues) in
the fourth quarter of 2014, as compared to $39.1 million (4.8% of revenues) in the fourth
quarter of 2013.
Operating income was $64.2
million (7.6% of revenues) in the fourth quarter of 2014, as
compared to operating income of $57.9
million (7.1% of revenues) in the fourth quarter of 2013.
The non-GAAP operating income in the fourth quarter of 2014 was
$74.8 million (8.8% of revenues), as
compared to $70.5 million (8.7% of
revenues) in the fourth quarter of 2013.
Financial expenses, net, were $11.2 million in the fourth quarter of 2014, as
compared to $10.0 million in the
fourth quarter of 2013.
Taxes on income were $9.5
million in the fourth quarter of 2014, as compared to
$8.1 million in the fourth quarter of
2013.
Equity in net earnings of affiliated companies and
partnerships was $1.8 million
(0.2% of revenues) in the fourth quarter of 2014, as compared to
$5.5 million (0.7% of revenues) in
the fourth quarter of 2013.
Net income attributable to non-controlling interests was
$1.2 million in the fourth quarter of
2014, as compared to $2.3 million in
the fourth quarter of 2013.
Net income attributable to the Company's shareholders in
the fourth quarter of 2014 was $44.0
million (5.2% of revenues), as compared to $42.9 million (5.3% of revenues) in the fourth
quarter of 2013. The non-GAAP net income in the fourth quarter of
2014 was $52.8 million (6.2% of
revenues), as compared to $53.5
million (6.6% of revenues) in the fourth quarter of
2013.
Diluted net earnings per share attributable to the
Company's shareholders were $1.03 for the fourth quarter of 2014, as compared
with diluted net earnings per share of $1.01 for the fourth quarter of 2013. The
non-GAAP diluted earnings per share in the fourth quarter of 2014
were $1.24, as compared to
$1.26 in the fourth quarter of
2013.
Full year 2014 results:
Revenues for the year ended December 31, 2014 were $2,958.2 million, as compared to $2,925.2 million in the year ended December 31, 2013. The leading contributors to
our revenues 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 from
airborne EW systems worldwide and HLS systems sold to Latin America. Revenues from land systems in
Israel and electro-optic systems
in the U.S. decreased slightly.
On a geographic basis, the increase in revenues in Asia-Pacific was mainly due to increased sales
of a project to upgrade tanks for a customer in this region. The
strong growth of revenues in Latin
America was mainly due to increased sales of HLS and EW
systems as well as unmanned airborne systems in this region.
Cost of revenues for the year ended December 31, 2014 was $2,133.2 million (72.1% of revenues), as compared
to $2,100.3 million (71.8% of
revenues) in the year ended December
31, 2013.
Gross profit for the year ended December 31, 2014 was $825.1 million (27.9% of revenues), as compared
to gross profit of $824.8 million
(28.2% of revenues) in the year ended December 31, 2013. The non-GAAP gross profit in
2014 was $846.7 million (28.6%
of revenues), as compared to $847.9
million (29.0% of revenues) in 2013.
Research and development expenses, net, for the year
ended December 31, 2014 were
$228.0 million (7.7% of revenues), as
compared to $220.5 million (7.5% of
revenues) in the year ended December 31,
2013.
Marketing and selling expenses, net, for the year ended
December 31, 2014 were
$216.5 million (7.3% of revenues), as
compared to $235.5 million (8.0% of
revenues) in the year ended December
31, 2013. The decrease in marketing and selling
expenses in 2014 was mainly related to the mix of countries and
types of marketing activities for projects in which we invested our
marketing efforts.
General and administrative expenses, net, for the year
ended December 31, 2014 were
$139.6 million (4.7% of revenues), as
compared to $129.5 million (4.4% of
revenues) in the year ended December 31,
2013. General and administrative expenses in 2013 benefited
from income related to a legal settlement, net of expenses, of
$7.6 million.
Other operating income, net, for the year ended
December 31, 2014 amounted to
$6.0 million. The amount reflects a
net gain related to the revaluation of a previously held investment
in an Israeli subsidiary's shares at the acquisition date due to
its accounting treatment as a business combination achieved in
stages. As a result of this acquisition, the Company increased its
holdings in the subsidiary from 49% to 90%.
Operating income for the year ended December 31, 2014 was $246.9 million (8.3% of revenues), as compared to
operating income of $239.4 million
(8.2% of revenues), in the year ended December 31, 2013. The non-GAAP operating income
in 2014 was $283.9 million (9.6% of
revenues), as compared to $278.6
million (9.5% of revenues) in 2013.
Financial expenses, net, for the year ended December 31, 2014 were $47.5 million, as compared to $37.3 million in the year ended December 31, 2013. Financial expenses, net, in
2014 were comparatively high, mainly as a result of accelerated
devaluation of the NIS in the third quarter of 2014 and its effect
on the Company's U.S. dollar derivative activities, as well as the
fluctuation of the U.S. dollar against other foreign currencies,
such as the Australian dollar and the Brazilian real, during the
year.
Taxes on income for the year ended December 31, 2014 were $25.6 million (effective tax rate of 12.8%), as
compared to taxes on income of $25.3
million (effective tax rate of 12.5%) in the year ended
December 31, 2013. 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, 2014 was $5.5 million
(0.2% of revenues), as compared to $13.0
million (0.4% of revenues) in the year ended December 31, 2013. The main reason for the
decrease in the equity in net earnings of affiliated companies and
partnerships was a result of a change in the business and project
contractual structure in a U.S. joint venture entity, which led to
increased profit in our U.S. subsidiary holding the joint venture
and a decrease in profit in the joint venture itself.
Net income attributable to non-controlling interests for
the year ended December 31, 2014 was
$8.4 million, as compared to
$8.0 million in the year ended
December 31, 2013.
Net income attributable to the Company's shareholders for
the year ended December 31,
2014 was $171.0 million (5.8% of
revenues), as compared to $183.4
million (6.3% of revenues) in the year ended December 31, 2013. The decrease in net income
resulted mainly from the higher financial expenses in 2014. The
non-GAAP net income in the year ended December 31, 2014 was $201.1 million (6.8% of revenues), as compared to
$210.8 million (7.2% of revenues) in
the year ended December 31, 2013.
Diluted net earnings per share attributable to the
Company's shareholders for the year ended December 31, 2014 were $4.01, as compared to $4.34 for the year ended December 31, 2013. The non-GAAP diluted net
earnings per share in the year ended December 31, 2014 were $4.71, as compared to $4.99 in the year ended December 31, 2013.
The Company's backlog of orders for the year ended
December 31, 2014 totaled
$6,265 million, as compared to
$5,822 million as of December 31, 2013. 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 2015 and 2016.
Operating cash flow for the year ended December 31, 2014 was $177.8 million, as compared to $167.0 million in the year ended December 31, 2013.
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,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
229.5
|
|
|
221.5
|
|
|
825.0
|
|
|
824.8
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
5.5
|
|
|
5.7
|
|
|
21.7
|
|
|
22.2
|
|
Impairment of
long-lived assets
|
—
|
|
|
0.9
|
|
|
—
|
|
|
0.9
|
|
Non-GAAP
gross profit
|
235.0
|
|
|
228.1
|
|
|
846.7
|
|
|
847.9
|
|
Percent of
revenues
|
27.6
|
%
|
|
28.1
|
%
|
|
28.6
|
%
|
|
29.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
64.2
|
|
|
57.9
|
|
|
246.9
|
|
|
239.4
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
10.6
|
|
|
11.7
|
|
|
43.0
|
|
|
45.9
|
|
Impairment of
long-lived assets
|
—
|
|
|
0.9
|
|
|
—
|
|
|
0.9
|
|
Legal settlements,
net
|
—
|
|
|
—
|
|
|
—
|
|
|
(7.6)
|
|
Gain from changes in
holdings
|
—
|
|
|
—
|
|
|
(6.0)
|
|
|
—
|
|
Non-GAAP operating
income
|
74.8
|
|
|
70.5
|
|
|
283.9
|
|
|
278.6
|
|
Percent of
revenues
|
8.8
|
%
|
|
8.7
|
%
|
|
9.6
|
%
|
|
9.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to Elbit Systems' shareholders
|
44.0
|
|
|
42.9
|
|
|
171.0
|
|
|
183.4
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
10.6
|
|
|
11.7
|
|
|
43.0
|
|
|
45.9
|
|
Impairment of
long-lived assets
|
—
|
|
|
0.9
|
|
|
—
|
|
|
0.9
|
|
Legal settlements,
net
|
—
|
|
|
—
|
|
|
—
|
|
|
(7.6)
|
|
Gain from changes in
holdings
|
—
|
|
|
—
|
|
|
(6.0)
|
|
|
(0.9)
|
|
Adjustment of gain
from discontinued operations, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.8)
|
|
Related tax
benefits
|
(1.8)
|
|
|
(2.0)
|
|
|
(6.9)
|
|
|
(10.1)
|
|
Non-GAAP net
income attributable to Elbit Systems' shareholders
|
52.8
|
|
|
53.5
|
|
|
201.1
|
|
|
210.8
|
|
Percent of
revenues
|
6.2
|
%
|
|
6.6
|
%
|
|
6.8
|
%
|
|
7.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted
net EPS
|
1.24
|
|
|
1.26
|
|
|
4.71
|
|
|
4.99
|
|
Recent Events:
On November 17, 2014, the Company
announced that it was awarded a contract from DIEHL BGT Defence
GmbH & Co. KG to provide J-MUSIC™ Multi-Spectral Directed
Infrared Counter Measure (DIRCM) systems for the first phase of the
German Air Force's Self-Protection program for its new Airbus A400
aircraft. The contract will be performed over approximately one
year and is in an amount that is not material to Elbit Systems.
On December 23, 2014, the Company
announced that its wholly-owned U.S. subsidiary, Elbit Systems of
America, LLC ("Elbit Systems of America"), received a directed
subcontract from the Brazilian Navy for the upgrade of four Grumman
C-1A aircraft. The prime contract is held by Marsh Aviation Company
of Mesa, Arizona. The subcontract,
valued at $106 million, will be
performed by Elbit Systems of America over a five-year period.
On January 4, 2015, the Company
announced that it was awarded an approximately $90 million contract from the Israeli Ministry of
Defense (IMOD) for the maintenance of the Israeli Air Force's (IAF)
F-16 array's avionics systems. The project, to be performed over
eleven-year period, will include the establishment of a new and
cutting edge national maintenance center for the IAF's squadrons
and bases.
On January 5, 2015, the Company
announced that it was awarded an approximately $100 million contract from the IMOD to procure
six new firefighting aircraft and operate the firefighting
squadron, which will consist of a total of fourteen aircraft,
including eight aircraft previously procured by Elbit Systems. The
contract, to be performed over an eight-year period, also covers
flight hours, infrastructure upgrade, maintenance, airstrip
operation, handling of fire retardants and other aspects of
operating the squadron.
On January 14, 2015, the Company
announced that it was awarded contracts by the IMOD, in a total
amount of approximately $54 million,
for the supply and maintenance of advanced electro-optics systems,
to be performed by Elbit Systems Electro-optics Elop Ltd. over a
six-year period.
On January 15, 2015, the Company
announced that it was awarded IMOD contracts, in a total amount of
approximately $117 million, for the
supply of Command, Control, Computer, Communications and
Intelligence (C4I) systems and communications systems. Most of the
contracts will be performed over six-year period.
On January 19, 2015, the Company
announced that it was awarded a contract from an Asian Army to
provide the mini MUSIC™ IR MWS based DIRCM systems for the
customer's Blackhawk helicopters. The contract will be performed
during 2015 and is in an amount that is not material to Elbit
Systems.
Dividend:
The Board of Directors declared a dividend of $0.35 per share for the fourth quarter of 2014.
The dividend's record date is March 20,
2015. The dividend will be paid from income generated as
Preferred Income (as defined under Israeli tax laws), on
April 2, 2015, net of taxes, at the
rate of 20%.
Conference Call:
The Company will be hosting a conference call today,
Wednesday, March 11, 2015 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 high technology company
engaged in a wide range of defense, homeland security and
commercial 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, advanced
electro-optics, electro-optic space systems, electronic warfare
suites, signal intelligence systems, data links and communications
systems and radios. The Company also focuses on the upgrading
of existing 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:
|
IR
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.
|
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, 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,
|
|
2014
|
|
|
2013
|
|
|
Audited
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
200,407
|
|
|
$
|
191,737
|
|
Short-term bank
deposits and marketable securities
|
79,369
|
|
|
22,549
|
|
Available-for-sale
marketable securities
|
26,150
|
|
|
51,076
|
|
Trade and unbilled
receivables, net
|
928,757
|
|
|
823,245
|
|
Other receivables and
prepaid expenses
|
145,562
|
|
|
151,367
|
|
Inventories, net of
customers advances
|
868,799
|
|
|
756,032
|
|
Total current
assets
|
2,249,044
|
|
|
1,996,006
|
|
|
|
|
|
|
|
Investments in
affiliated companies and partnerships
|
125,433
|
|
|
131,362
|
|
Long-term trade and
unbilled receivables
|
212,725
|
|
|
242,576
|
|
Long-term bank
deposits and other receivables
|
18,081
|
|
|
52,983
|
|
Deferred income
taxes, net
|
60,224
|
|
|
35,695
|
|
Severance pay
fund
|
276,707
|
|
|
323,388
|
|
|
693,170
|
|
|
786,004
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
441,535
|
|
|
481,408
|
|
Goodwill and other
intangible assets, net
|
637,532
|
|
|
669,750
|
|
Total
assets
|
$
|
4,021,281
|
|
|
$
|
3,933,168
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Short-term bank
credit and loans
|
$
|
557
|
|
|
$
|
—
|
|
Current maturities of
long-term loans and Series A Notes
|
81,958
|
|
|
63,111
|
|
Trade
payables
|
369,659
|
|
|
301,480
|
|
Other payables and
accrued expenses
|
758,760
|
|
|
720,544
|
|
Customer advances in
excess of costs incurred on contracts in progress
|
413,223
|
|
|
349,998
|
|
|
1,624,157
|
|
|
1,435,133
|
|
|
|
|
|
|
|
Long-term loans, net
of current maturities
|
220,716
|
|
|
224,209
|
|
Series A Notes, net
of current maturities
|
293,923
|
|
|
377,812
|
|
Employee benefit
liabilities
|
396,639
|
|
|
407,855
|
|
Deferred income taxes
and tax liabilities, net
|
68,435
|
|
|
73,502
|
|
Customer advances in
excess of costs incurred on contracts in progress
|
120,299
|
|
|
164,854
|
|
Other long-term
liabilities
|
58,217
|
|
|
55,634
|
|
|
1,158,229
|
|
|
1,303,866
|
|
|
|
|
|
|
|
Elbit Systems Ltd.'s
equity
|
1,226,667
|
|
|
1,177,012
|
|
Non-controlling
interests
|
12,228
|
|
|
17,157
|
|
Total
equity
|
1,238,895
|
|
|
1,194,169
|
|
Total liabilities and
equity
|
$
|
4,021,281
|
|
|
$
|
3,933,168
|
|
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,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
Audited
|
|
Unaudited
|
Revenues
|
$
|
2,958,248
|
|
|
$
|
2,925,151
|
|
|
$
|
850,284
|
|
|
$
|
811,460
|
|
Cost of
revenues
|
2,133,151
|
|
|
2,100,304
|
|
|
620,741
|
|
|
589,911
|
|
Gross
profit
|
825,097
|
|
|
824,847
|
|
|
229,543
|
|
|
221,549
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development, net
|
228,011
|
|
|
220,482
|
|
|
71,023
|
|
|
63,927
|
|
Marketing and
selling, net
|
216,537
|
|
|
235,466
|
|
|
59,500
|
|
|
60,711
|
|
General and
administrative, net
|
139,634
|
|
|
129,507
|
|
|
34,794
|
|
|
39,058
|
|
Other operating
income, net
|
(5,951)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total operating
expenses
|
578,231
|
|
|
585,455
|
|
|
165,317
|
|
|
163,696
|
|
Operating
income
|
246,866
|
|
|
239,392
|
|
|
64,226
|
|
|
57,853
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
(47,498)
|
|
|
(37,310)
|
|
|
(11,213)
|
|
|
(10,035)
|
|
Other (expense)
income, net
|
120
|
|
|
937
|
|
|
(134)
|
|
|
12
|
|
Income before income
taxes
|
199,488
|
|
|
203,019
|
|
|
52,879
|
|
|
47,830
|
|
Taxes on
income
|
(25,624)
|
|
|
(25,313)
|
|
|
(9,474)
|
|
|
(8,114)
|
|
|
173,864
|
|
|
177,706
|
|
|
43,405
|
|
|
39,716
|
|
Equity in net
earnings of affiliated companies and partnerships
|
5,549
|
|
|
13,032
|
|
|
1,786
|
|
|
5,465
|
|
Income from
continuing operations
|
179,413
|
|
|
190,738
|
|
|
45,191
|
|
|
45,181
|
|
Income from
discontinued operations, net
|
—
|
|
|
681
|
|
|
—
|
|
|
—
|
|
Net
income
|
$
|
179,413
|
|
|
$
|
191,419
|
|
|
$
|
45,191
|
|
|
$
|
45,181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: net income
attributable to non-controlling interests
|
(8,433)
|
|
|
(8,002)
|
|
|
(1,206)
|
|
|
(2,312)
|
|
Net income
attributable to Elbit Systems Ltd.'s shareholders
|
$
|
170,980
|
|
|
$
|
183,417
|
|
|
$
|
43,985
|
|
|
$
|
42,869
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Elbit Systems Ltd.'s shareholders:
|
|
|
|
|
|
|
|
|
|
Basic net earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
4.01
|
|
|
$
|
4.34
|
|
|
$
|
1.03
|
|
|
$
|
1.01
|
|
Discontinued
operations
|
—
|
|
|
0.01
|
|
|
—
|
|
|
—
|
|
Total
|
$
|
4.01
|
|
|
$
|
4.35
|
|
|
$
|
1.03
|
|
|
$
|
1.01
|
|
Diluted net earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
4.01
|
|
|
$
|
4.33
|
|
|
$
|
1.03
|
|
|
$
|
1.01
|
|
Discontinued
operations
|
—
|
|
|
0.01
|
|
|
—
|
|
|
—
|
|
Total
|
$
|
4.01
|
|
|
$
|
4.34
|
|
|
$
|
1.03
|
|
|
$
|
1.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computation of basic
earnings per share (in thousands)
|
42,654
|
|
|
42,139
|
|
|
42,681
|
|
|
42,427
|
|
Weighted average
number of shares used in computation of diluted
earnings per share (in thousands)
|
42,677
|
|
|
42,295
|
|
|
42,702
|
|
|
42,542
|
|
ELBIT SYSTEMS
LTD.
CONSOLIDATED
STATEMENTS OF CASH FLOW
(In thousands of US
Dollars)
|
|
|
Year Ended December
31,
|
|
2014
|
|
|
2013
|
|
|
Audited
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net income
|
$
|
179,413
|
|
|
$
|
191,419
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
122,408
|
|
|
129,348
|
|
Write-off of
impairment and discontinued operations, net
|
—
|
|
|
254
|
|
Stock-based
compensation
|
322
|
|
|
440
|
|
Amortization of Series
A Notes premium and related issuance costs, net
|
(91)
|
|
|
(92)
|
|
Deferred income taxes
and reserve, net
|
(47,456)
|
|
|
221
|
|
Gain on sale of
property, plant and equipment
|
(3,266)
|
|
|
(147)
|
|
Loss (gain) on sale of
investment
|
(4,957)
|
|
|
873
|
|
Equity in net loss of
affiliated companies and partnerships, net of dividend received
(*)
|
7,449
|
|
|
468
|
|
Changes in operating
assets and liabilities, net of amounts acquired:
|
|
|
|
|
|
Increase in short and
long-term trade receivables and prepaid expenses
|
(67,177)
|
|
|
(108,337)
|
|
Increase in
inventories, net
|
(112,747)
|
|
|
(4,785)
|
|
Increase in trade
payables and other payables and accrued expenses
|
81,687
|
|
|
55,935
|
|
Severance, pension and
termination indemnities, net
|
6,282
|
|
|
(3,595)
|
|
Increase (decrease) in
advances received from customers
|
15,970
|
|
|
(95,027)
|
|
Net cash provided by
operating activities
|
177,837
|
|
|
166,975
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
(71,211)
|
|
|
(63,019)
|
|
Acquisition of
subsidiaries and business operations
|
787
|
|
|
—
|
|
Investments in
affiliated companies and other companies
|
(4,620)
|
|
|
(6,222)
|
|
Proceeds from sale of
property, plant and equipment
|
24,969
|
|
|
3,755
|
|
Proceeds from sale of
investments
|
110
|
|
|
3,550
|
|
Investment in long-term
deposits
|
(796)
|
|
|
(2,076)
|
|
Proceeds from sale of
long-term deposits
|
790
|
|
|
795
|
|
Investment in
short-term deposits and available-for-sale marketable
securities
|
(89,521)
|
|
|
(52,975)
|
|
Proceeds from sale of
short-term deposits and available-for-sale marketable
securities
|
59,374
|
|
|
42,899
|
|
Net cash used in
investing activities
|
(80,118)
|
|
|
(73,293)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Proceeds from exercise
of options
|
3,542
|
|
|
18,364
|
|
Repayment of long-term
loans
|
(345,839)
|
|
|
(230,532)
|
|
Proceeds from long-term
loans
|
376,500
|
|
|
242,247
|
|
Repayment of Series A
Notes and convertible debentures
|
(55,532)
|
|
|
(55,535)
|
|
Dividends paid
(**)
|
(68,277)
|
|
|
(75,549)
|
|
Change in short-term
bank credit and loans, net
|
557
|
|
|
(181)
|
|
Net cash used in
financing activities
|
(89,049)
|
|
|
(101,186)
|
|
NET INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
8,670
|
|
|
(7,504)
|
|
CASH AND CASH
EQUIVALENTS AT THE BEGINNING OF THE YEAR
|
$
|
191,737
|
|
|
$
|
199,241
|
|
CASH AND CASH
EQUIVALENTS AT THE END OF THE YEAR
|
$
|
200,407
|
|
|
$
|
191,737
|
|
|
|
|
|
|
|
* Dividend received
from affiliated companies and partnerships
|
$
|
12,998
|
|
|
$
|
13,500
|
|
|
** Dividends paid in
2014 and 2013 included approximately $14,500 and $24,900,
respectively, dividends paid by a subsidiary to non-controlling
interests.
|
ELBIT SYSTEMS
LTD.
DISTRIBUTION OF
REVENUES
|
|
Consolidated Revenues
by Areas of Operation:
|
|
|
Year Ended
|
|
Three Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
$ millions
|
|
%
|
|
$ millions
|
|
%
|
|
$ millions
|
|
%
|
|
$ millions
|
|
%
|
Airborne
systems
|
$
|
1,197.9
|
|
|
40.5
|
|
|
$
|
1,133.1
|
|
|
38.7
|
|
|
$
|
314.3
|
|
|
37.0
|
|
|
$
|
283.8
|
|
|
35.0
|
|
Land
systems
|
274.9
|
|
|
9.3
|
|
|
309.3
|
|
|
10.6
|
|
|
113.4
|
|
|
13.3
|
|
|
113.9
|
|
|
14.0
|
|
C4ISR
systems
|
1,118.5
|
|
|
37.8
|
|
|
1,071.4
|
|
|
36.6
|
|
|
309.6
|
|
|
36.4
|
|
|
299.5
|
|
|
36.9
|
|
Electro-optic
systems
|
265.1
|
|
|
9.0
|
|
|
313.9
|
|
|
10.7
|
|
|
82.6
|
|
|
9.7
|
|
|
86.6
|
|
|
10.7
|
|
Other (mainly
non-defense
engineering and production
services)
|
101.8
|
|
|
3.4
|
|
|
97.5
|
|
|
3.4
|
|
|
30.4
|
|
|
3.6
|
|
|
27.7
|
|
|
3.4
|
|
Total
|
$
|
2,958.2
|
|
|
100.0
|
|
|
$
|
2,925.2
|
|
|
100.0
|
|
|
$
|
850.3
|
|
|
100.0
|
|
|
$
|
811.5
|
|
|
100.0
|
|
|
Consolidated Revenues
by Geographical Regions:
|
|
|
Year Ended
|
|
Three Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
$ millions
|
|
%
|
|
$ millions
|
|
%
|
|
$ millions
|
|
%
|
|
$ millions
|
|
%
|
Israel
|
$
|
638.8
|
|
|
21.6
|
|
|
$
|
705.7
|
|
|
24.1
|
|
|
$
|
145.9
|
|
|
17.2
|
|
|
$
|
235.1
|
|
|
29.0
|
|
North
America
|
826.8
|
|
|
27.9
|
|
|
860.7
|
|
|
29.4
|
|
|
216.3
|
|
|
25.4
|
|
|
229.7
|
|
|
28.3
|
|
Europe
|
460.9
|
|
|
15.6
|
|
|
546.7
|
|
|
18.7
|
|
|
152.0
|
|
|
17.9
|
|
|
148.8
|
|
|
18.3
|
|
Asia
Pacific
|
528.8
|
|
|
17.9
|
|
|
448.1
|
|
|
15.3
|
|
|
182.5
|
|
|
21.5
|
|
|
90.7
|
|
|
11.2
|
|
Latin
America
|
454.5
|
|
|
15.4
|
|
|
283.0
|
|
|
9.7
|
|
|
143.0
|
|
|
16.8
|
|
|
72.1
|
|
|
8.9
|
|
Other
countries
|
48.4
|
|
|
1.6
|
|
|
81.0
|
|
|
2.8
|
|
|
10.6
|
|
|
1.2
|
|
|
35.1
|
|
|
4.3
|
|
Total
|
$
|
2,958.2
|
|
|
100.0
|
|
|
$
|
2,925.2
|
|
|
100.0
|
|
|
$
|
850.3
|
|
|
100.0
|
|
|
$
|
811.5
|
|
|
100.0
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/elbit-systems-reports-fourth-quarter-and-full-year-2014-results-300048799.html
SOURCE Elbit Systems Ltd.