HAIFA, Israel, March 22,
2017 /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, 2016.
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 5 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: "Our fourth quarter results culminate a
good year for Elbit Systems. In addition to the increase in
revenues, our backlog continued its positive trend in 2016. Thanks
to our growth and operating efficiency measures, we were able to
increase our investments in R&D and marketing in order to
capitalize on many of the opportunities in our markets and still
produce a nice improvement in net income, year-over-year.
In today's geopolitical environment we see increasing demand for
our solutions in many markets, and we are pursuing increased
opportunities around the world. Based on these opportunities and a
growing backlog, we believe that we have the potential for further
improvement and growth."
Fourth quarter 2016 results:
Revenues in the fourth quarter of 2016 were
$953.7 million, as compared to
$886.6 million in the fourth quarter
of 2015.
Non-GAAP(*) gross profit amounted to
$288.5 million (30.3% of revenues) in
the fourth quarter of 2016, as compared to $262.4 million (29.6% of revenues) in the fourth
quarter of 2015. GAAP gross profit in the fourth quarter of
2016 was $280.8 million (29.4% of
revenues), as compared to $253.3
million (28.6% of revenues) in the fourth quarter of
2015.
Research and development expenses, net, were $67.0 million (7.0% of revenues) in the fourth
quarter of 2016, as compared to $69.3
million (7.8% of revenues) in the fourth quarter of
2015.
Marketing and selling expenses, net, were $88.8 million (9.3% of revenues) in the fourth
quarter of 2016, as compared to $66.9
million (7.5% of revenues) in the fourth quarter of
2015.
General and administrative expenses, net, were
$37.6 million (3.9% of revenues) in
the fourth quarter of 2016, as compared to $39.2 million (4.4% of revenues) in the fourth
quarter of 2015.
Non-GAAP(*) operating income was $97.3 million (10.2% of revenues) in the fourth
quarter of 2016, as compared to $91.5
million (10.3% of revenues) in the fourth quarter of 2015.
GAAP operating income in the fourth quarter of 2016 was
$87.5 million (9.2% of revenues), as
compared to $78.0 million (8.8% of
revenues) in the fourth quarter of 2015.
Financial expenses, net, were $9.2
million in the fourth quarter of 2016, as compared to
$2.3 million in the fourth quarter of
2015. Financial expenses in the fourth quarter of 2015 were
relatively low mainly due to gains from exchange rate
differences.
Taxes on income were $9.8
million in the fourth quarter of 2016, as compared to
$15.4 million in the fourth quarter
of 2015. Taxes in the fourth quarter of 2016 were somewhat lower
mainly due to settlements of tax audits for prior years.
Equity in net losses of affiliated companies and
partnerships was $0.6 million
(0.1% of revenues) in the fourth quarter of 2016, as compared to
net earnings of $3.3 million (0.4% of
revenues) in the fourth quarter of 2015.
Net income attributable to non-controlling interests was
$0.7 million in the fourth quarter of
2016, as compared to $0.8 million in
the fourth quarter of 2015.
Non-GAAP(*) net income attributable to the
Company's shareholders in the fourth quarter of 2016 was
$77.7 million (8.2% of revenues), as
compared to $74.2 million (8.4% of
revenues) in the fourth quarter of 2015. GAAP net income
attributable to the Company's shareholders in the fourth
quarter of 2016 was $67.1 million
(7.0% of revenues), as compared to $63.0
million (7.1% of revenues) in the fourth quarter of
2015.
Non GAAP(*) diluted net earnings per share
attributable to the Company's shareholders were
$1.82 for the fourth quarter of 2016,
as compared to $1.74 for the fourth
quarter of 2015. GAAP diluted earnings per share attributable to
the Company's shareholders in the fourth quarter of 2016 were
$1.57, as compared to $1.47 in the fourth quarter of 2015.
___________
* see page 5
Full year 2016 results:
Revenues for the year ended December 31, 2016 were $3,260.2 million, as compared to $3,107.6 million in the year ended December 31, 2015. The leading contributors to
our revenues were the airborne systems and C4ISR systems areas of
operations. The increase in the C4ISR systems area of operations
was primarily due to an increase in sales of command and control
systems and radio systems in Europe, Asia-Pacific and in Israel. Revenues from land systems decreased
due to a decline in sales of tank fire control systems to
Asia-Pacific.
On a geographic basis, the decrease in Latin America was mainly a result of lower
sales of command and control systems for homeland security
applications.
Cost of revenues for the year ended December 31, 2016 was $2,300.6 million (70.6% of revenues), as compared
to $2,210.5 million (71.1% of
revenues) in the year ended December
31, 2015.
Non-GAAP(*) gross profit for the year ended
December 31, 2016 was
$990.8 million (30.4% of revenues),
as compared to $927.0 million (29.8%
of revenues) in the year ended December 31,
2015. GAAP gross profit in 2016 was $959.6 million (29.4% of revenues), as
compared to $897.1 million (28.9% of
revenues) in 2015.
Research and development expenses, net, for the year
ended December 31, 2016 were
$255.8 million (7.8% of revenues), as
compared to $243.4 million (7.8% of
revenues) in the year ended December 31,
2015.
Marketing and selling expenses, net, for the year ended
December 31, 2016 were
$271.0 million (8.3% of revenues), as
compared to $239.4 million (7.7% of
revenues) in the year ended December
31, 2015. The increase in marketing and selling
expenses in 2016 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, 2016 were
$151.4 million (4.6% of revenues), as
compared to $145.7 million (4.7% of
revenues) in the year ended December 31,
2015.
Other operating income, net, for the year ended
December 31, 2016 amounted to
$17.6 million. This was the result of
net gains related to valuation of shares in two of our Israeli
subsidiaries in the energy and automotive areas, due to third party
investments.
Non-GAAP(*) operating income for the year
ended December 31, 2016 was
$322.6 million (9.9% of revenues), as
compared to $316.7 million (10.2% of
revenues) in the year ended December 31,
2015. GAAP operating income in 2016 was $299.0 million (9.2% of revenues), as compared to
$268.6 million (8.6% of revenues) in
2015. The main reason for the improvement of the operating income
in 2016 was the increase in the gross profit as compared to
2015.
Other income, net for the year ended December 31, 2016 amounted to $4 million. This was due to a capital gain
related to the sale of real estate acquired in prior years.
Financial expenses, net, for the year ended December 31, 2016 were $23.7 million, as compared to $20.2 million in the year ended December 31, 2015. Financial expenses in 2015
were relatively low mainly due to gains from exchange rate
differences.
___________
* see page 5
Taxes on income for the year ended December 31, 2016 were $45.6 million (effective tax rate of 16.3%), as
compared to $46.2 million (effective
tax rate of 18.6%) in the year ended December 31, 2015. 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 2016 of tax audits for prior years.
Equity in net earnings of affiliated companies and
partnerships for the year ended December
31, 2016 was $5.2 million
(0.2% of revenues), as compared to $4.5
million (0.1% of revenues) in the year ended December 31, 2015.
Net income attributable to non-controlling interests for
the year ended December 31, 2016 was
$1.9 million, as compared to
$4.4 million in the year ended
December 31, 2015.
Non-GAAP(*) net income attributable to the
Company's shareholders for the year ended December 31, 2016 was $254.2 million (7.8% of revenues), as compared to
$242.4 million (7.8% of revenues) in
the year ended December 31, 2015.
GAAP net income attributable to the Company's
shareholders in the year ended December
31, 2016 was $236.9 million
(7.3% of revenues), as compared to $202.5
million (6.5% of revenues) in the year ended December 31, 2015.
Non-GAAP(*) diluted net earnings per share
attributable to the Company's shareholders for the
year ended December 31,
2016 were $5.95, as compared to
$5.67 for the year ended
December 31, 2015. GAAP diluted
net earnings per share attributable to the Company's
shareholders in the year ended December
31, 2016 were $5.54, as
compared to $4.74 in the year ended
December 31, 2015.
Backlog of orders for the year ended December 31, 2016 totaled $6,909 million, as compared to $6,564 million as of December 31, 2015. Approximately 68% of the
current backlog is attributable to orders from outside Israel. Approximately 69% of the current
backlog is scheduled to be performed during 2017 and 2018.
Operating cash flow for the year ended December 31, 2016 was $208.0 million, as compared to $434.8 million in the year ended December 31, 2015. The higher level of operating
cash flow in 2015 was mainly a result of higher collection of
receipts and advances received from customers.
___________
* see page 5
* 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,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
|
280.8
|
|
|
$
|
253.3
|
|
|
$
|
959.6
|
|
|
$
|
897.1
|
|
Adjustments:
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
7.7
|
|
|
9.1
|
|
|
31.2
|
|
|
29.9
|
|
Non-GAAP
gross profit
|
$
|
288.5
|
|
|
$
|
262.4
|
|
|
$
|
990.8
|
|
|
$
|
927.0
|
|
Percent of
revenues
|
30.3
|
%
|
|
29.6
|
%
|
|
30.4
|
%
|
|
29.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
|
87.5
|
|
|
$
|
78.0
|
|
|
$
|
299.0
|
|
|
$
|
268.6
|
|
Adjustments:
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
9.8
|
|
|
13.5
|
|
|
41.2
|
|
|
48.1
|
|
Gain from changes in
holdings
|
—
|
|
|
—
|
|
|
(17.6
|
)
|
|
—
|
|
Non-GAAP operating
income
|
$
|
97.3
|
|
|
$
|
91.5
|
|
|
$
|
322.6
|
|
|
$
|
316.7
|
|
Percent of
revenues
|
10.2
|
%
|
|
10.3
|
%
|
|
9.9
|
%
|
|
10.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to Elbit Systems' shareholders
|
$
|
67.1
|
|
|
$
|
63.0
|
|
|
$
|
236.9
|
|
|
$
|
202.5
|
|
Adjustments:
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
9.8
|
|
|
13.5
|
|
|
41.2
|
|
|
48.1
|
|
Capital
gain
|
—
|
|
|
—
|
|
|
(3.9
|
)
|
|
—
|
|
Impairment of
investments
|
2.5
|
|
|
—
|
|
|
2.5
|
|
|
—
|
|
Gain from changes in
holdings, net
|
—
|
|
|
—
|
|
|
(16.4
|
)
|
|
—
|
|
Related tax
benefits
|
(1.7
|
)
|
|
(2.3
|
)
|
|
(6.1
|
)
|
|
(8.2
|
)
|
Non-GAAP net
income attributable to Elbit Systems' shareholders
|
$
|
77.7
|
|
|
$
|
74.2
|
|
|
$
|
254.2
|
|
|
$
|
242.4
|
|
Percent of
revenues
|
8.2
|
%
|
|
8.4
|
%
|
|
7.8
|
%
|
|
7.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
EPS
|
$
|
1.57
|
|
|
$
|
1.47
|
|
|
$
|
5.54
|
|
|
$
|
4.74
|
|
Adjustments,
net
|
0.25
|
|
|
0.27
|
|
|
0.41
|
|
|
0.93
|
|
Non-GAAP diluted
net EPS
|
$
|
1.82
|
|
|
$
|
1.74
|
|
|
$
|
5.95
|
|
|
$
|
5.67
|
|
Recent Events:
On November 22, 2016, the
Company announced that Item 3 (Approval of Amended Compensation
Policy for the Company's Executive Officers and Directors) ("Item
3") on the agenda of the Company's Annual General Meeting scheduled
to be held on Wednesday, November 23,
2016 (the "Meeting"), as specified in the Company's Proxy
Statement of October 19, 2016 (the
"Proxy Statement") - was withdrawn in order to allow the Company
additional time to consider certain comments received from
shareholders or on their behalf with respect to said Item 3 on the
Meeting agenda.
On November 23, 2016, the
Company announced that its U.S. subsidiary, Elbit Systems of
America, LLC was awarded an Indefinite Delivery/Indefinite Quantity
("ID/IQ") contract for the production of mortar weapon systems. The
contract, with a maximum value of up to approximately $103 million, will be performed over a five-year
period. An initial purchase order, in an amount that is not
material to the Company, was awarded.
On January 3, 2017, the
Company announced that it was awarded two contracts from Rafael
Advanced Defense Systems Ltd. for the supply of airborne laser
designators, in a total value of approximately $35 million. The contracts will be performed over
a three-year period, and systems will be supplied by Rafael to two
countries in the Asia-Pacific
region.
On January 8, 2017 the
Company announced that a Brazilian subsidiary, Ares Aeroespacial e
Defesa S.A. ("Ares"), was awarded a framework contract, in a total
value of approximately $100 million,
to supply 12.7/7.62 mm Remote Controlled Weapon Stations ("RCWS")
to the Brazilian Army. The contract includes associated equipment
and services. The RCWS, named REMAX, will be supplied over a
five-year period. An initial production order, valued at
approximately $7.5 million, was
received.
On January 12, 2017, the
Company announced that Midroog Ltd., an Israeli rating agency
("Midroog"), reaffirmed Midroog's "Aa1" 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 17, 2017, the
Company announced that it was awarded a contract to supply multi
spectral BrightNite systems to an air force in a NATO country. The
contract, in an amount of approximately $17
million, will be performed over a thirty-month period.
On February 6, 2017, the
Company announced that its subsidiary Cyberbit Ltd.
("Cyberbit"), was awarded a contract from Ni Cybersecurity Inc.,
the Japanese cybersecurity service provider, to launch a unique
cybersecurity training and simulation center in Tokyo powered by the Cyberbit Range
platform.
On February 8, 2017, the
Company announced that it was awarded an approximately $110 million contract from an Asia-Pacific country for the upgrade and
maintenance of dozens of Mi-17 helicopters. The project will be
performed over a five-year period.
On February 9, 2017, the
Company announced that its subsidiary, Cyberbit was awarded a
contract from the enterprise software provider Infor (US), Inc. for
the supply of Cyberbit's Endpoint Detection and Response security
platform to be used to support Infor's internal cyber protection.
The contract is in an amount that is not material to Elbit
Systems.
On February 16, 2017, the
Company announced that its subsidiary, Elbit Systems of America
LLC. was awarded a ID/IQ contract to provide and field mortar fire
control systems for the U.S. Army. The contract was awarded by the
U.S. Army Contracting Command, Picatinny Arsenal, New Jersey. If fully ordered, the maximum
value of the contract is $102 million
to be performed over a five-year period.
Dividend:
The Board of Directors declared a dividend of $0.44 per share for the fourth quarter of 2016.
The dividend's record date is March 31,
2017. The dividend will be paid from income generated as
Preferred Income (as defined under Israeli tax laws), on
April 6, 2017, net of taxes, at the
rate of 20%.
Conference Call:
The Company will be hosting a conference call today,
Wednesday, March 22, 2017 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 Number: 1-888-668-9141
Canada Dial-in Number: 1-866-485-2399
UK Dial-in Number: 0-800-917-5108
ISRAEL Dial-in Number: 03-918-0609
INTERNATIONAL Dial-in Number: +972-3-918-0609
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:
1-877-456-0009 (US and Canada)
or +972-3-925-5929 (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:
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, 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,
|
|
2016
|
|
2015
|
|
Audited
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
222,810
|
|
|
$
|
299,322
|
|
Short-term bank
deposits
|
8,882
|
|
|
20,266
|
|
Available-for-sale
marketable securities
|
13,370
|
|
|
12,836
|
|
Trade and unbilled
receivables, net
|
1,232,591
|
|
|
941,913
|
|
Other receivables and
prepaid expenses
|
135,315
|
|
|
171,359
|
|
Inventories, net of
customers advances
|
840,266
|
|
|
837,111
|
|
Total current
assets
|
2,453,234
|
|
|
2,282,807
|
|
|
|
|
|
Investments in
affiliated companies, partnerships and other companies
|
180,962
|
|
|
129,758
|
|
Long-term trade and
unbilled receivables
|
189,688
|
|
|
152,463
|
|
Long-term bank
deposits and other receivables
|
15,917
|
|
|
15,765
|
|
Deferred income
taxes, net
|
47,303
|
|
|
52,619
|
|
Severance pay
fund
|
264,253
|
|
|
270,151
|
|
|
698,123
|
|
|
620,756
|
|
|
|
|
|
Property, plant and
equipment, net
|
474,109
|
|
|
449,759
|
|
Goodwill and other
intangible assets, net
|
726,398
|
|
|
770,276
|
|
Total
assets
|
$
|
4,351,864
|
|
|
$
|
4,123,598
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Short-term bank
credit and loans
|
$
|
5,027
|
|
|
$
|
—
|
|
Current maturities of
long-term loans and Series A Notes
|
228,956
|
|
|
113,359
|
|
Trade
payables
|
514,106
|
|
|
347,366
|
|
Other payables and
accrued expenses
|
830,516
|
|
|
739,867
|
|
Customer advances in
excess of costs incurred on contracts in progress
|
347,393
|
|
|
437,202
|
|
|
1,925,998
|
|
|
1,637,794
|
|
|
|
|
|
Long-term loans, net
of current maturities
|
475
|
|
|
165,971
|
|
Series A Notes, net
of current maturities
|
171,066
|
|
|
226,758
|
|
Employee benefit
liabilities
|
376,115
|
|
|
381,641
|
|
Deferred income taxes
and tax liabilities, net
|
58,298
|
|
|
44,738
|
|
Customer advances in
excess of costs incurred on contracts in progress
|
174,529
|
|
|
167,601
|
|
Other long-term
liabilities
|
78,142
|
|
|
99,668
|
|
|
858,625
|
|
|
1,086,377
|
|
|
|
|
|
Elbit Systems Ltd.'s
equity
|
1,559,840
|
|
|
1,391,374
|
|
Non-controlling
interests
|
7,401
|
|
|
8,053
|
|
Total
equity
|
1,567,241
|
|
|
1,399,427
|
|
Total liabilities and
equity
|
$
|
4,351,864
|
|
|
$
|
4,123,598
|
|
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,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Audited
|
|
Unaudited
|
Revenues
|
$
|
3,260,219
|
|
|
$
|
3,107,581
|
|
|
$
|
953,722
|
|
|
$
|
886,580
|
|
Cost of
revenues
|
2,300,636
|
|
|
2,210,528
|
|
|
672,888
|
|
|
633,256
|
Gross
profit
|
959,583
|
|
|
897,053
|
|
|
280,834
|
|
|
253,324
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development, net
|
255,792
|
|
|
243,416
|
|
|
66,978
|
|
|
69,295
|
Marketing and
selling, net
|
271,037
|
|
|
239,366
|
|
|
88,786
|
|
|
66,862
|
General and
administrative, net
|
151,353
|
|
|
145,693
|
|
|
37,599
|
|
|
39,185
|
|
Other operating
income, net
|
(17,575)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total operating
expenses
|
660,607
|
|
|
628,475
|
|
|
193,363
|
|
|
175,342
|
|
|
|
|
|
|
|
|
Operating
income
|
298,976
|
|
|
268,578
|
|
|
87,471
|
|
|
77,982
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
(23,742)
|
|
|
(20,240)
|
|
|
(9,246)
|
|
|
(2,325)
|
|
Other income,
net
|
3,967
|
|
|
216
|
|
|
25
|
|
|
146
|
|
Income before income
taxes
|
279,201
|
|
|
248,554
|
|
|
78,250
|
|
|
75,803
|
Taxes on
income
|
(45,617)
|
|
|
(46,235)
|
|
|
(9,805)
|
|
|
(15,353)
|
|
|
233,584
|
|
|
202,319
|
|
|
68,445
|
|
|
60,450
|
Equity in net
earnings (losses) of affiliated companies and
partnerships
|
5,224
|
|
|
4,542
|
|
|
(631)
|
|
|
3,343
|
Net
income
|
$
|
238,808
|
|
|
$
|
206,861
|
|
|
$
|
67,814
|
|
|
$
|
63,793
|
|
|
|
|
|
|
|
|
|
Less: net income
attributable to non-controlling interests
|
(1,899)
|
|
|
(4,352)
|
|
|
(702)
|
|
|
(810)
|
Net income
attributable to Elbit Systems Ltd.'s shareholders
|
$
|
236,909
|
|
|
$
|
202,509
|
|
|
$
|
67,112
|
|
|
$
|
62,983
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Elbit Systems Ltd.'s shareholders:
|
|
|
|
|
|
|
Basic net earnings
per share
|
$
|
5.54
|
|
|
$
|
4.74
|
|
|
$
|
1.57
|
|
|
$
|
1.47
|
|
Diluted net earnings
per share
|
$
|
5.54
|
|
|
$
|
4.74
|
|
|
$
|
1.57
|
|
|
$
|
1.47
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computation of
|
|
|
|
|
|
|
|
Basic earnings per
share (in thousands)
|
42,742
|
|
|
42,711
|
|
|
42,746
|
|
|
42,727
|
|
Diluted earnings per
share (in thousands)
|
42,752
|
|
|
42,733
|
|
|
42,755
|
|
|
42,745
|
|
ELBIT SYSTEMS LTD.
CONSOLIDATED STATEMENTS OF CASH
FLOW
(In thousands of US Dollars)
|
Year Ended
December 31,
|
|
2016
|
|
2015
|
|
Audited
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net income
|
$
|
238,808
|
|
|
$
|
206,861
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
122,888
|
|
|
122,354
|
|
Write-off impairment on
marketable securities
|
86
|
|
|
—
|
|
Stock-based
compensation
|
70
|
|
|
139
|
|
Amortization of Series
A Notes discount (premium) and related issuance costs,
net
|
(92)
|
|
|
(92)
|
|
Deferred income taxes
and reserve, net
|
2,683
|
|
|
15,928
|
|
Loss (gain) on sale of
property, plant and equipment
|
(3,347)
|
|
|
1,742
|
|
Loss (gain) on sale of
investment and deconsolidation of subsidiary
|
(16,734)
|
|
|
33
|
|
Equity in net loss
(gain) of affiliated companies and partnerships, net of dividend
received(*)
|
(1,728)
|
|
|
19,999
|
|
Changes in operating
assets and liabilities, net of amounts acquired:
|
|
|
|
Decrease (increase) in
short and long-term trade receivables and prepaid
expenses
|
(297,439)
|
|
|
31,860
|
|
Decrease (increase) in
inventories, net
|
(8,040)
|
|
|
39,801
|
|
Increase (decrease) in
trade payables and other payables and accrued expenses
|
253,413
|
|
|
(74,280)
|
|
Severance, pension and
termination indemnities, net
|
315
|
|
|
(799)
|
|
Increase (decrease) in
advances received from customers
|
(82,881)
|
|
|
71,282
|
|
Net cash provided by
operating activities
|
208,002
|
|
|
434,828
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
Purchase of property,
plant and equipment and other assets
|
(124,221)
|
|
|
(99,175)
|
|
Acquisition of
subsidiaries and business operations
|
—
|
|
|
(141,436)
|
|
Investments in
affiliated companies and other companies
|
(19,277)
|
|
|
(23,852)
|
|
Deconsolidation of
subsidiary
|
(1,538)
|
|
|
—
|
|
Proceeds from sale of
property, plant and equipment
|
15,745
|
|
|
11,563
|
|
Investment in long-term
deposits
|
(417)
|
|
|
(396)
|
|
Proceeds from sale of
long-term deposits
|
894
|
|
|
721
|
|
Investment in
short-term deposits and available-for-sale marketable
securities
|
(25,622)
|
|
|
(57,175)
|
|
Proceeds from sale of
short-term deposits and available-for-sale marketable
securities
|
36,619
|
|
|
128,187
|
|
Net cash used in
investing activities
|
(117,817)
|
|
|
(181,563)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
Proceeds from exercise
of options
|
505
|
|
|
1,616
|
|
Repayment of long-term
loans
|
(48,250)
|
|
|
(226,635)
|
|
Proceeds from long-term
loans
|
—
|
|
|
196,550
|
|
Repayment of Series A
Notes and convertible debentures
|
(55,532)
|
|
|
(55,532)
|
|
Dividends paid
(**)
|
(68,447)
|
|
|
(69,792)
|
|
Change in short-term
bank credit and loans, net
|
5,027
|
|
|
(557)
|
|
Net cash used in
financing activities
|
(166,697)
|
|
|
(154,350)
|
|
NET INCREASE IN CASH
AND CASH EQUIVALENTS
|
(76,512)
|
|
|
98,915
|
|
CASH AND CASH
EQUIVALENTS AT THE BEGINNING OF THE YEAR
|
$
|
299,322
|
|
|
$
|
200,407
|
|
CASH AND CASH
EQUIVALENTS AT THE END OF THE YEAR
|
$
|
222,810
|
|
|
$
|
299,322
|
|
|
|
|
|
* Dividend received
from affiliated companies and partnerships
|
$
|
3,496
|
|
|
$
|
24,541
|
|
** Dividends paid in 2015 included approximately $ 8,222 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,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
Airborne
systems
|
$
|
1,242.3
|
|
|
38.1
|
|
|
$
|
1,225.7
|
|
|
39.4
|
|
|
$
|
342.3
|
|
|
35.9
|
|
|
$
|
337.3
|
|
|
38.0
|
|
C4ISR
systems
|
1,220.9
|
|
|
37.4
|
|
|
995.2
|
|
|
32.0
|
|
|
329.6
|
|
|
34.6
|
|
|
320.8
|
|
|
36.2
|
|
Land
systems
|
408.0
|
|
|
12.5
|
|
|
558.7
|
|
|
18.0
|
|
|
150.0
|
|
|
15.7
|
|
|
121.0
|
|
|
13.6
|
|
Electro-optic
systems
|
276.0
|
|
|
8.5
|
|
|
231.9
|
|
|
7.5
|
|
|
94.8
|
|
|
9.9
|
|
|
81.2
|
|
|
9.2
|
|
Other (mainly
non-defense engineering and production services)
|
113.0
|
|
|
3.5
|
|
|
96.1
|
|
|
3.1
|
|
|
37.0
|
|
|
3.9
|
|
|
26.3
|
|
|
3.0
|
|
Total
|
$
|
3,260.2
|
|
|
100.0
|
|
|
$
|
3,107.6
|
|
|
100.0
|
|
|
$
|
953.7
|
|
|
100.0
|
|
|
$
|
886.6
|
|
|
100.0
|
|
Consolidated Revenues by Geographical Regions:
|
Year
Ended
|
|
Three Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
Israel
|
$
|
709.5
|
|
|
21.8
|
|
|
$
|
616.6
|
|
|
19.8
|
|
|
$
|
202.8
|
|
|
21.3
|
|
|
$
|
178.3
|
|
|
20.1
|
|
North
America
|
825.7
|
|
|
25.3
|
|
|
838.9
|
|
|
27.0
|
|
|
229.7
|
|
|
24.1
|
|
|
219.9
|
|
|
24.8
|
|
Europe
|
640.8
|
|
|
19.7
|
|
|
497.6
|
|
|
16.0
|
|
|
218.4
|
|
|
22.9
|
|
|
184.4
|
|
|
20.8
|
|
Asia-Pacific
|
801.6
|
|
|
24.6
|
|
|
800.3
|
|
|
25.8
|
|
|
206.5
|
|
|
21.6
|
|
|
193.5
|
|
|
21.8
|
|
Latin
America
|
212.8
|
|
|
6.5
|
|
|
325.4
|
|
|
10.5
|
|
|
61.4
|
|
|
6.4
|
|
|
103.1
|
|
|
11.7
|
|
Other
countries
|
69.8
|
|
|
2.1
|
|
|
28.8
|
|
|
0.9
|
|
|
34.9
|
|
|
3.7
|
|
|
7.4
|
|
|
0.8
|
|
Total
|
$
|
3,260.2
|
|
|
100.0
|
|
|
$
|
3,107.6
|
|
|
100.0
|
|
|
$
|
953.7
|
|
|
100.0
|
|
|
$
|
886.6
|
|
|
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-2016-results-300427634.html
SOURCE Elbit Systems Ltd.