HAIFA, Israel, March 22,
2016 /PRNewswire/ -- Elbit Systems Ltd. (the "Company") (NASDAQ
and TASE: ESLT), the international high technology company,
reported today its consolidated results for the fourth quarter and
full year ended December 31, 2015.
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. For a description of the
Company's non-GAAP definitions see page 4 below, "Non-GAAP
financial data". Unless otherwise stated, all financial data
presented is US-GAAP financial data.
Management Comment:
Bezhalel (Butzi) Machlis, President and CEO of Elbit
Systems, commented: "We are pleased with our solid 2015
results. We saw growth in revenues, strong cash generation as well
as an increase in net profit, driven by improved margins across the
business. Furthermore, we ended the year with a record backlog
standing at $6.6 billion. The solid
increase in our backlog over the past few years has led to the
current growth trend in revenues, while the efforts we have taken
to ensure efficient operations and enhance synergies among our
business units have enabled us to steadily improve our
profitability. All this indicates a strong and healthy business
going forward."
Mr. Machlis continued, "In 2015, we witnessed a strong
renewal of interest in our technologies and defense solutions in
Europe, recently winning a number
of important contracts in the region, which creates the potential
for additional growth in this important market. Our results also
reflect strong performance in Asia-Pacific, a region with emerging defense
requirements that has been a strategic focus for us in recent
years."
Fourth quarter 2015 results:
Revenues in the fourth quarter of 2015 were
$886.6 million, as compared to
$850.3 million in the fourth quarter
of 2014.
Non-GAAP(*) gross profit amounted to
$262.4 million (29.6% of revenues) in
the fourth quarter of 2015, as compared to $235.0 million (27.6% of revenues) in the fourth
quarter of 2014. GAAP gross profit in the fourth quarter of
2015 was $253.3 million (28.6% of
revenues), as compared to $229.5
million (27.0% of revenues) in the fourth quarter of
2014.
Research and development expenses, net, were $69.3 million (7.8% of revenues) in the fourth
quarter of 2015, as compared to $71.0
million (8.4% of revenues) in the fourth quarter of
2014.
Marketing and selling expenses, net, were $66.9 million (7.5% of revenues) in the fourth
quarter of 2015, as compared to $59.5
million (7.0% of revenues) in the fourth quarter of
2014.
General and administrative expenses, net, were
$39.2 million (4.4% of revenues) in
the fourth quarter of 2015, as compared to $34.8 million (4.1% of revenues) in the fourth
quarter of 2014.
Non-GAAP(*) operating income was $91.5 million (10.3% of revenues) in the fourth
quarter of 2015, as compared to $74.8
million (8.8% of revenues) in the fourth quarter of 2014.
GAAP operating income in the fourth quarter of 2015 was
$78.0 million (8.8% of revenues), as
compared to $64.2 million (7.6% of
revenues) in the fourth quarter of 2014.
Financial expenses, net, were $2.3
million in the fourth quarter of 2015, as compared to
$11.2 million in the fourth quarter
of 2014.
Taxes on income were $15.4
million in the fourth quarter of 2015, as compared to
$9.5 million in the fourth quarter of
2014.
Equity in net earnings of affiliated companies and
partnerships was $3.3 million
(0.4% of revenues) in the fourth quarter of 2015, as compared to
$1.8 million (0.2% of revenues) in
the fourth quarter of 2014.
Net income attributable to non-controlling interests was
$0.8 million in the fourth quarter of
2015, as compared to $1.2 million in
the fourth quarter of 2014.
Non-GAAP(*) net income attributable to the
Company's shareholders in the fourth quarter of 2015 was
$74.2 million (8.4% of revenues), as
compared to $52.8 million (6.2% of
revenues) in the fourth quarter of 2014. GAAP net income
attributable to the Company's shareholders in the fourth
quarter of 2015 was $63.0 million
(7.1% of revenues), as compared to $44.0
million (5.2% of revenues) in the fourth quarter of
2014.
Non GAAP(*) diluted net earnings per share
attributable to the Company's shareholders were
$1.74 for the fourth quarter of 2015,
as compared to $1.24 for the fourth
quarter of 2014. GAAP diluted earnings per share attributable to
the Company's shareholders in the fourth quarter of 2015 were
$1.47, as compared to $1.03 in the fourth quarter of 2014.
____________
* see page 4
Full year 2015 results:
Revenues for the year ended December 31, 2015 were $3,107.6 million, as compared to $2,958.2 million in the year ended December 31, 2014. The leading contributors to
our revenues were the airborne systems and C4ISR systems areas of
operations. The increase in the land systems area of operation was
primarily due to increased revenues from tank fire control systems
and electro-optic night vision systems sold to Asia-Pacific. Revenues from C4ISR systems
decreased slightly due to decline in sales of command and control
systems, mainly for homeland security applications in Latin America.
On a geographic basis, the increase in revenues in Asia-Pacific was mainly due to increased sales
of tank fire control systems and electro-optic night vision systems
to this region. The decrease in Latin
America was a result of lower sales of command and control
systems, mainly for homeland security applications.
Cost of revenues for the year ended December 31, 2015 was $2,210.5 million (71.1% of revenues), as compared
to $2,133.2 million (72.1% of
revenues) in the year ended December
31, 2014.
Non-GAAP(*) gross profit for the year ended
December 31, 2015 was
$927.0 million (29.8% of revenues),
as compared to $846.7 million (28.6%
of revenues) in the year ended December 31,
2014. GAAP gross profit in 2015 was $897.1 million (28.9% of revenues), as compared
to $825.1 million (27.9% of revenues)
in 2014.
Research and development expenses, net, for the year
ended December 31, 2015 were
$243.4 million (7.8% of revenues), as
compared to $228.0 million (7.7% of
revenues) in the year ended December 31,
2014.
Marketing and selling expenses, net, for the year ended
December 31, 2015 were
$239.4 million (7.7% of revenues), as
compared to $216.5 million (7.3% of
revenues) in the year ended December
31, 2014. The increase in marketing and selling
expenses in 2015 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, 2015 were
$145.7 million (4.7% of revenues), as
compared to $139.6 million (4.7% of
revenues) in the year ended December
31, 2014. The increase was mainly due to cost of the
phantom bonus retention plan associated with the G&A
expenses.
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%.
Non-GAAP(*) operating income for the year
ended December 31, 2015 was
$316.7 million (10.2% of revenues),
as compared to $284.0 million (9.6%
of revenues) in the year ended December 31,
2014. GAAP operating income in 2015 was $268.6 million (8.6% of revenues), as compared to
$246.9 million (8.3% of revenues) in
2014. The main reason for the improvement of the operating income
was the increase in the gross profit in 2015 as compared to
2014.
Financial expenses, net, for the year ended December 31, 2015 were $20.2 million, as compared to $47.5 million in the year ended December 31, 2014. 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
2014.
____________
* see page 4
Taxes on income for the year ended December 31, 2015 were $46.2 million (effective tax rate of 18.6%), as
compared to $25.6 million (effective
tax rate of 12.8%) in the year ended December 31, 2014. 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 and the
settlement in 2014 of tax audits for prior years.
Equity in net earnings of affiliated companies and
partnerships for the year ended December
31, 2015 was $4.5 million
(0.1% of revenues), as compared to $5.5
million (0.2% of revenues) in the year ended December 31, 2014.
Net income attributable to non-controlling interests for
the year ended December 31, 2015 was
$4.4 million, as compared to
$8.4 million in the year ended
December 31, 2014.
Non-GAAP(*) net income attributable to the
Company's shareholders for the year ended December 31, 2015 was $242.4 million (7.8% of revenues), as compared to
$201.2 million (6.8% of revenues) in
the year ended December 31, 2014.
GAAP net income attributable to the Company's
shareholders in the year ended December
31, 2015 was $202.5 million
(6.5% of revenues), as compared to $171.0
million (5.8% of revenues) in the year ended December 31, 2014.
Non-GAAP(*) diluted net earnings per share
attributable to the Company's shareholders for the
year ended December 31,
2015 were $5.67, as compared to
$4.71 for the year ended
December 31, 2014. GAAP diluted
net earnings per share attributable to the Company's
shareholders in the year ended December
31, 2015 were $4.74, as
compared to $4.01 in the year ended
December 31, 2014.
Backlog of orders for the year ended December 31, 2015 totaled $6,564 million, as compared to $6,265 million as of December 31, 2014. Approximately 68% of the
current backlog is attributable to orders from outside Israel. Approximately 68% of the current
backlog is scheduled to be performed during 2016 and 2017.
Operating cash flow for the year ended December 31, 2015 was $434.8 million, as compared to $177.8 million in the year ended December 31, 2014. The increase in operating cash
flow was mainly a result of increased collection and advances
received from customers.
* 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,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
|
253.3
|
|
|
$
|
229.5
|
|
|
$
|
897.1
|
|
|
$
|
825.1
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
9.1
|
|
|
5.5
|
|
|
29.9
|
|
|
21.6
|
|
|
Non-GAAP
gross profit
|
$
|
262.4
|
|
|
$
|
235.0
|
|
|
$
|
927.0
|
|
|
$
|
846.7
|
|
|
Percent of
revenues
|
29.6
|
%
|
|
27.6
|
%
|
|
29.8
|
%
|
|
28.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
|
78.0
|
|
|
$
|
64.2
|
|
|
$
|
268.6
|
|
|
$
|
246.9
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
13.5
|
|
|
10.6
|
|
|
48.1
|
|
|
43.1
|
|
|
Gain from changes in
holdings
|
—
|
|
|
—
|
|
|
—
|
|
|
(6.0)
|
|
|
Non-GAAP operating
income
|
$
|
91.5
|
|
|
$
|
74.8
|
|
|
$
|
316.7
|
|
|
$
|
284.0
|
|
|
Percent of
revenues
|
10.3
|
%
|
|
8.8
|
%
|
|
10.2
|
%
|
|
9.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to Elbit Systems' shareholders
|
$
|
63.0
|
|
|
$
|
44.0
|
|
|
$
|
202.5
|
|
|
$
|
171.0
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
13.5
|
|
|
10.6
|
|
|
48.1
|
|
|
43.1
|
|
|
Gain from changes in
holdings
|
—
|
|
|
—
|
|
|
—
|
|
|
(6.0)
|
|
|
Related tax
benefits
|
(2.3)
|
|
|
(1.8)
|
|
|
(8.2)
|
|
|
(6.9)
|
|
|
Non-GAAP net
income attributable to Elbit Systems' shareholders
|
$
|
74.2
|
|
|
$
|
52.8
|
|
|
$
|
242.4
|
|
|
$
|
201.2
|
|
|
Percent of
revenues
|
8.4
|
%
|
|
6.2
|
%
|
|
7.8
|
%
|
|
6.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
EPS
|
$
|
1.47
|
|
|
$
|
1.03
|
|
|
$
|
4.74
|
|
|
$
|
4.01
|
|
|
Adjustments,
net
|
0.27
|
|
|
0.21
|
|
|
0.93
|
|
|
0.70
|
|
|
Non-GAAP diluted
net EPS
|
$
|
1.74
|
|
|
$
|
1.24
|
|
|
$
|
5.67
|
|
|
$
|
4.71
|
|
Recent Events:
On November 26, 2015, the Company
announced that it was awarded an approximately $200 million contract from the Swiss Federal
Department of Defense, Civil Protection and Sport ("DDPS"), for the
supply of Hermes 900 HFE ("Heavy Fuel Engine") Unmanned Aircraft
Systems ("UAS") and an advanced ground segment for command, control
and communications. The contract, to be performed over a four-year
period, follows the DDPS June 2014
announcement about Elbit Systems selection as the preferred
supplier for the UAS 15 new reconnaissance drone program.
On December 16, 2015, the
Company announced that it was awarded a contract to supply
commercial multi-spectral infrared countermeasures (C-MUSIC™)
systems to be implemented onboard a wide body jet aircraft of a
country in the Asia-Pacific
region. The contract, valued at approximately $26.5 million, will be performed over a two-year
period.
On December 21, 2015, the Company
announced that its wholly-owned subsidiary, CYBERBIT Ltd.
("CYBERBIT"), was awarded a contract to provide the
Switzerland-based company RUAG
Defence, with CYBERBIT's CyberShield-Cyber Security Trainer and
Simulator ("T&S"). The contract is in an amount that is not
material to either party, and the T&S will be supplied in
2016.
On December 22, 2015, the Company
announced that it was awarded a contract from an Asia-Pacific country to supply a comprehensive
airborne solution for use in intelligence, surveillance, target
acquisition and reconnaissance ("ISTAR") missions. The contract,
valued at approximately $50 million,
will be performed over a three-year period by Elbit Systems' ISTAR
Division, which will be the prime contractor for this program.
On December 28, 2015, the Company
announced that it was awarded a contract by the Directorate of
Production and Procurement of the Israeli Ministry of Defense
("IMOD") valued at approximately $70
million for the supply of Electronic Warfare ("EW") systems.
The systems, developed and manufactured by Elbit Systems EW and
SIGINT - Elisra Ltd., to be delivered over a five-year period, will
be installed on board all types of Israeli Air Force fighter
jets.
On January 7, 2016, the Company
announced , that a decision has been made to wind up the activities
of Harpia Sistemas S.A. ("Harpia"), a joint venture in Brazil, of Elbit Systems subsidiary AEL
Sistemas S.A , owned in conjunction with Embraer Defesa e Seguranca
and Avibras Diviso Area e Naval S.A. Harpia was formed in
September 2011 in order to explore
the unmanned aerial vehicles market. The decision for partnership
wind-up occurred amicably given the current budget constraints in
Brazil.
On January 11, 2016, the
Company announced that Midroog Ltd., an Israeli rating agency
("Midroog"), reaffirmed Midroog's "Aa1.il" rating (on a local
scale), with a stable outlook, of the Series "A" Notes issued by
the Company in 2010 and in 2012.
On January 20, 2016, the Company
announced that CYBERBIT was awarded a contract to provide an
Asia-Pacific country with
CYBERBIT's CyberShield-Cyber Security Trainer and Simulator. The
contract is in an amount that is not material to Elbit Systems.
On February 2, 2016, the Company
announced that Affinity Flying Services Limited ("Affinity"), its
UK joint venture with Kellog, Brown and Root Limited ("KBR"), was
awarded a fixed price contract for the support of Ascent Flight
Training (Services) Limited, in the delivery of the UK Military
Flight Training System program for the UK Ministry of Defence.
Elbit Systems and KBR, each holding a 50% share in Affinity, will
evenly support and benefit from the program. Revenue for Affinity
associated with this program is estimated to be approximately £500
million ($713 million) over an
eighteen-year period.
Dividend:
The Board of Directors declared a dividend of $0.40 per share for the fourth quarter of 2015.
The dividend's record date is April 1,
2016. The dividend will be paid from income generated as
Preferred Income (as defined under Israeli tax laws), on
April 11, 2016, net of taxes, at the
rate of 20%.
Conference Call:
The Company will be hosting a conference call today,
Tuesday, March 22, 2016 at
10:00 a.m. Eastern Time. On the call,
management will review and discuss the results and will be
available to answer questions.
To participate, please call one of the teleconferencing numbers
that follow. If you are unable to connect using the toll-free
numbers, please try the international dial-in number.
US Dial-in Numbers: 1 888 668 9141
UK Dial-in Number: 0 800 917 5108
ISRAEL Dial-in Number: 03 918 0610
INTERNATIONAL Dial-in Number: +972 3 918 0610
at: 10:00 am Eastern Time;
7:00 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 5900
(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
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.
(FINANCIAL TABLES TO FOLLOW)
ELBIT SYSTEMS LTD.
CONSOLIDATED BALANCE
SHEETS
(In thousands of US Dollars)
|
As of December
31,
|
|
2015
|
|
2014
|
|
Audited
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
299,322
|
|
|
$
|
200,407
|
|
|
Short-term bank
deposits
|
20,266
|
|
|
79,369
|
|
|
Available-for-sale
marketable securities
|
12,836
|
|
|
26,150
|
|
|
Trade and unbilled
receivables, net
|
941,913
|
|
|
928,757
|
|
|
Other receivables and
prepaid expenses
|
171,359
|
|
|
145,562
|
|
|
Inventories, net of
customers advances
|
837,111
|
|
|
868,799
|
|
|
Total current
assets
|
2,282,807
|
|
|
2,249,044
|
|
|
|
|
|
|
Investments in
affiliated companies and partnerships
|
132,718
|
|
|
125,433
|
|
|
Long-term trade and
unbilled receivables
|
152,463
|
|
|
212,725
|
|
|
Long-term bank
deposits and other receivables
|
15,765
|
|
|
18,081
|
|
|
Deferred income
taxes, net
|
52,619
|
|
|
60,224
|
|
|
Severance pay
fund
|
270,151
|
|
|
276,707
|
|
|
623,716
|
|
|
693,170
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
449,759
|
|
|
441,535
|
|
|
Goodwill and other
intangible assets, net
|
770,276
|
|
|
637,532
|
|
|
Total
assets
|
$
|
4,126,558
|
|
|
$
|
4,021,281
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Short-term bank
credit and loans
|
$
|
—
|
|
|
$
|
557
|
|
|
Current maturities of
long-term loans and Series A Notes
|
113,359
|
|
|
81,958
|
|
|
Trade
payables
|
347,366
|
|
|
369,659
|
|
|
Other payables and
accrued expenses
|
739,867
|
|
|
758,760
|
|
|
Customer advances in
excess of costs incurred on contracts in progress
|
437,202
|
|
|
413,223
|
|
|
1,637,794
|
|
|
1,624,157
|
|
|
|
|
|
|
Long-term loans, net
of current maturities
|
165,971
|
|
|
220,716
|
|
|
Series A Notes, net
of current maturities
|
226,758
|
|
|
293,923
|
|
|
Employee benefit
liabilities
|
381,641
|
|
|
396,639
|
|
|
Deferred income taxes
and tax liabilities, net
|
44,738
|
|
|
68,435
|
|
|
Customer advances in
excess of costs incurred on contracts in progress
|
167,601
|
|
|
120,299
|
|
|
Other long-term
liabilities
|
99,668
|
|
|
58,217
|
|
|
1,086,377
|
|
|
1,158,229
|
|
|
|
|
|
|
Elbit Systems Ltd.'s
equity
|
1,394,334
|
|
|
1,226,667
|
|
|
Non-controlling
interests
|
8,053
|
|
|
12,228
|
|
|
Total
equity
|
1,402,387
|
|
|
1,238,895
|
|
|
Total liabilities and
equity
|
$
|
4,126,558
|
|
|
$
|
4,021,281
|
|
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,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Audited
|
|
Unaudited
|
|
Revenues
|
$
|
3,107,581
|
|
|
$
|
2,958,248
|
|
|
$
|
886,580
|
|
|
$
|
850,284
|
|
Cost of
revenues
|
2,210,528
|
|
|
2,133,151
|
|
|
633,256
|
|
|
620,741
|
|
Gross
profit
|
897,053
|
|
|
825,097
|
|
|
253,324
|
|
|
229,543
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development, net
|
243,416
|
|
|
228,011
|
|
|
69,295
|
|
|
71,023
|
|
Marketing and
selling, net
|
239,366
|
|
|
216,537
|
|
|
66,862
|
|
|
59,500
|
|
General and
administrative, net
|
145,693
|
|
|
139,634
|
|
|
39,185
|
|
|
34,794
|
|
Other operating
income, net
|
—
|
|
|
(5,951)
|
|
|
—
|
|
|
—
|
|
Total operating
expenses
|
628,475
|
|
|
578,231
|
|
|
175,343
|
|
|
165,317
|
|
|
|
|
|
|
|
|
|
Operating
income
|
268,578
|
|
|
246,866
|
|
|
77,981
|
|
|
64,226
|
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
(20,240)
|
|
|
(47,498)
|
|
|
(2,325)
|
|
|
(11,213)
|
|
Other (expense)
income, net
|
216
|
|
|
120
|
|
|
146
|
|
|
(134)
|
|
Income before income
taxes
|
248,554
|
|
|
199,488
|
|
|
75,803
|
|
|
52,879
|
|
Taxes on
income
|
(46,235)
|
|
|
(25,624)
|
|
|
(15,353)
|
|
|
(9,474)
|
|
202,319
|
|
|
173,864
|
|
|
60,450
|
|
|
43,405
|
|
Equity in net
earnings of affiliated companies and partnerships
|
4,542
|
|
|
5,549
|
|
|
3,343
|
|
|
1,786
|
|
Net
income
|
$
|
206,861
|
|
|
$
|
179,413
|
|
|
$
|
63,793
|
|
|
$
|
45,191
|
|
|
|
|
|
|
|
|
|
Less: net income
attributable to non-controlling interests
|
(4,352)
|
|
|
(8,433)
|
|
|
(810)
|
|
|
(1,206)
|
|
Net income
attributable to Elbit Systems Ltd.'s shareholders
|
$
|
202,509
|
|
|
$
|
170,980
|
|
|
$
|
62,983
|
|
|
$
|
43,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Elbit Systems Ltd.'s shareholders:
|
|
|
|
|
|
|
|
Basic net earnings
per share
|
$
|
4.74
|
|
|
$
|
4.01
|
|
|
$
|
1.47
|
|
|
$
|
1.03
|
|
Diluted net earnings
per share
|
$
|
4.74
|
|
|
$
|
4.01
|
|
|
$
|
1.47
|
|
|
$
|
1.03
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computation of
|
|
|
|
|
|
|
|
|
Basic earnings per
share (in thousands)
|
42,711
|
|
|
42,654
|
|
|
42,727
|
|
|
42,681
|
|
Diluted earnings per
share (in thousands)
|
42,733
|
|
|
42,677
|
|
|
42,745
|
|
|
42,702
|
ELBIT SYSTEMS LTD.
CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands of US Dollars)
|
Year Ended December
31,
|
|
2015
|
|
2014
|
|
Audited
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
Net income
|
$
|
206,861
|
|
|
$
|
179,413
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
122,354
|
|
|
122,408
|
|
|
Stock-based
compensation
|
139
|
|
|
322
|
|
|
Amortization of Series
A Notes premium and related issuance costs, net
|
(92)
|
|
|
(91)
|
|
|
Deferred income taxes
and reserve, net
|
15,928
|
|
|
(47,456)
|
|
|
Loss (gain) on sale of
property, plant and equipment
|
1,742
|
|
|
(3,266)
|
|
|
Loss (gain) on sale of
investment
|
33
|
|
|
(4,957)
|
|
|
Equity in net loss of
affiliated companies and partnerships, net of dividend received
(*)
|
19,999
|
|
|
7,449
|
|
|
Changes in operating
assets and liabilities, net of amounts acquired:
|
|
|
|
|
Decrease (increase) in
short and long-term trade receivables and prepaid
expenses
|
31,860
|
|
|
(67,177)
|
|
|
Decrease (increase) in
inventories, net
|
39,801
|
|
|
(112,747)
|
|
|
Increase (decrease) in
trade payables and other payables and accrued expenses
|
(74,280)
|
|
|
81,687
|
|
|
Severance, pension and
termination indemnities, net
|
(799)
|
|
|
6,282
|
|
|
Increase in advances
received from customers
|
71,282
|
|
|
15,970
|
|
|
Net cash provided by
operating activities
|
434,828
|
|
|
177,837
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
Purchase of property,
plant and equipment
|
(99,175)
|
|
|
(71,211)
|
|
|
Acquisition of
subsidiaries and business operations
|
(141,436)
|
|
|
787
|
|
|
Investments in
affiliated companies and other companies
|
(23,852)
|
|
|
(4,620)
|
|
|
Proceeds from sale of
property, plant and equipment
|
11,563
|
|
|
24,969
|
|
|
Proceeds from sale of
investments
|
—
|
|
|
110
|
|
|
Investment in long-term
deposits
|
(396)
|
|
|
(796)
|
|
|
Proceeds from sale of
long-term deposits
|
721
|
|
|
790
|
|
|
Investment in
short-term deposits and available-for-sale marketable
securities
|
(57,175)
|
|
|
(89,521)
|
|
|
Proceeds from sale of
short-term deposits and available-for-sale marketable
securities
|
128,187
|
|
|
59,374
|
|
|
Net cash used in
investing activities
|
(181,563)
|
|
|
(80,118)
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
Proceeds from exercise
of options
|
1,616
|
|
|
3,542
|
|
|
Repayment of long-term
loans
|
(226,635)
|
|
|
(345,839)
|
|
|
Proceeds from long-term
loans
|
196,550
|
|
|
376,500
|
|
|
Repayment of Series A
Notes and convertible debentures
|
(55,532)
|
|
|
(55,532)
|
|
|
Dividends paid
(**)
|
(69,792)
|
|
|
(68,277)
|
|
|
Change in short-term
bank credit and loans, net
|
(557)
|
|
|
557
|
|
|
Net cash used in
financing activities
|
(154,350)
|
|
|
(89,049)
|
|
|
NET INCREASE IN CASH
AND CASH EQUIVALENTS
|
98,915
|
|
|
8,670
|
|
|
CASH AND CASH
EQUIVALENTS AT THE BEGINNING OF THE YEAR
|
$
|
200,407
|
|
|
$
|
191,737
|
|
|
CASH AND CASH
EQUIVALENTS AT THE END OF THE YEAR
|
$
|
299,322
|
|
|
$
|
200,407
|
|
|
|
|
|
|
* Dividend received
from affiliated companies and partnerships
|
$
|
24,541
|
|
|
$
|
12,998
|
|
** Dividends paid in 2015 and 2014 included approximately
$ 8,222 and $
14,452, 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,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
$ millions
|
|
%
|
|
$ millions
|
|
%
|
|
$ millions
|
|
%
|
|
$ millions
|
|
%
|
|
Airborne
systems
|
$
|
1,225.7
|
|
|
39.4
|
|
|
$
|
1,197.9
|
|
|
40.5
|
|
|
$
|
337.3
|
|
|
38.0
|
|
|
$
|
314.3
|
|
|
37.0
|
|
|
Land
systems
|
558.7
|
|
|
18.0
|
|
|
274.9
|
|
|
9.3
|
|
|
121.0
|
|
|
13.6
|
|
|
113.4
|
|
|
13.3
|
|
|
C4ISR
systems
|
995.2
|
|
|
32.0
|
|
|
1,118.5
|
|
|
37.8
|
|
|
320.8
|
|
|
36.2
|
|
|
309.6
|
|
|
36.4
|
|
|
Electro-optic
systems
|
231.9
|
|
|
7.5
|
|
|
265.1
|
|
|
9.0
|
|
|
81.2
|
|
|
9.2
|
|
|
82.6
|
|
|
9.7
|
|
|
Other (mainly
non-defense engineering and production services)
|
96.1
|
|
|
3.1
|
|
|
101.8
|
|
|
3.4
|
|
|
26.3
|
|
|
3.0
|
|
|
30.4
|
|
|
3.6
|
|
|
Total
|
$
|
3,107.6
|
|
|
100.0
|
|
|
$
|
2,958.2
|
|
|
100.0
|
|
|
$
|
886.6
|
|
|
100.0
|
|
|
$
|
850.3
|
|
|
100.0
|
|
Consolidated Revenues by Geographical Regions:
|
Year Ended
|
|
Three Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
$ millions
|
|
%
|
|
$ millions
|
|
%
|
|
$ millions
|
|
%
|
|
$ millions
|
|
%
|
|
Israel
|
$
|
616.6
|
|
|
19.8
|
|
|
$
|
638.9
|
|
|
21.6
|
|
|
$
|
178.3
|
|
|
20.1
|
|
|
$
|
145.9
|
|
|
17.2
|
|
|
North
America
|
838.9
|
|
|
27.0
|
|
|
826.8
|
|
|
27.9
|
|
|
219.9
|
|
|
24.8
|
|
|
216.3
|
|
|
25.4
|
|
|
Europe
|
497.6
|
|
|
16.0
|
|
|
460.9
|
|
|
15.6
|
|
|
184.4
|
|
|
20.8
|
|
|
152.0
|
|
|
17.9
|
|
|
Asia-Pacific
|
800.3
|
|
|
25.8
|
|
|
528.8
|
|
|
17.9
|
|
|
193.5
|
|
|
21.8
|
|
|
182.5
|
|
|
21.5
|
|
|
Latin
America
|
325.4
|
|
|
10.5
|
|
|
454.4
|
|
|
15.4
|
|
|
103.1
|
|
|
11.6
|
|
|
143.0
|
|
|
16.8
|
|
|
Other
countries
|
28.8
|
|
|
0.9
|
|
|
48.4
|
|
|
1.6
|
|
|
7.4
|
|
|
0.9
|
|
|
10.6
|
|
|
1.2
|
|
|
Total
|
$
|
3,107.6
|
|
|
100.0
|
|
|
$
|
2,958.2
|
|
|
100.0
|
|
|
$
|
886.6
|
|
|
100.0
|
|
|
$
|
850.3
|
|
|
100.0
|
|
|
Company
Contact:
Joseph Gaspar,
Executive VP & CFO
Tel:
+972-4-8316663
j.gaspar@elbitsystems.com
Dalia Rosen,
VP, Head of Corporate Communications
Tel:
+972-4-8316784
dalia.rosen@elbitsystems.com
Elbit Systems
Ltd.
|
IR
Contact:
Ehud
Helft
Kenny
Green
GK Investor
Relations
Tel:
1-646-201-9246
elbitsystems@gkir.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/elbit-systems-reports-fourth-quarter-and-full-year-2015-results-300239417.html
SOURCE Elbit Systems Ltd