HAIFA, Israel, Nov. 14,
2017 /PRNewswire/ --
Elbit Systems Ltd. (NASDAQ: ESLT and TASE:
ESLT), (the "Company") the international high technology
company, reported today its consolidated results for the quarter
ended September 30, 2017.
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 results, particularly the
increase in our backlog, which positions us well for long-term
growth. We see ongoing increases in defense budgets, which we have
been able to capitalize on in many of our target markets, and
during the quarter we announced a number of significant contract
wins. This has enabled us to achieve a 12% increase year-over-year
in our backlog, with the growth favoring the long-term component.
Furthermore, our improved gross and operating profit margins this
quarter underscore the fruits of our ongoing effort to improve
business efficiencies and build on inter-company synergies. Elbit
Systems remains well positioned to benefit over the long-term from
the positive momentum in our markets."
Third quarter 2017 results:
Revenues in the third quarter of 2017 were
$800.7 million, as compared to
$780.8 million in the third quarter
of 2016.
Non-GAAP [(*)] gross
profit amounted to $256.3 million
(32.0% of revenues) in the third quarter of 2017, as compared to
$238.1 million (30.5% of revenues) in
the third quarter of 2016. GAAP gross profit in the third
quarter of 2017 was $251.0 million
(31.3% of revenues), as compared to $230.4
million (29.5% of revenues) in the third quarter of
2016.
Research and development expenses, net were $67.1 million (8.4% of revenues) in the third
quarter of 2017, as compared to $65.6
million (8.4% of revenues) in the third quarter of 2016.
____________
* see page 3
Marketing and selling expenses, net were $66.9 million (8.4% of revenues) in the third
quarter of 2017, as compared to $60.9
million (7.8% of revenues) in the third quarter of 2016. The
increase in marketing and selling expenses in the third quarter of
2017 was mainly related to the mix of countries and types of
marketing activities for projects in which we invest our marketing
efforts.
General and administrative expenses, net were
$34.8 million (4.3% of revenues) in
the third quarter of 2017, as compared to $36.1 million (4.6% of revenues) in the third
quarter of 2016.
Other operating income, net in the third quarter of 2016
amounted to $10.5 million. The amount
reflects a net
gain related to valuation of shares in a newly established
Israeli subsidiary due to a third party investment.
Non-GAAP[(*)] operating
income was $89.2 million (11.1%
of revenues) in the third quarter of 2017, as compared to
$77.9 million (10.0% of revenues) in
the third quarter of 2016. GAAP operating income in the
third quarter of 2017 was $82.2
million (10.3% of revenues), as compared to $78.3 million (10.0% of revenues) in the third
quarter of 2016.
Financial expenses, net were $9.3
million in the third quarter of 2017, as compared to
$7.3 million in the third quarter of
2016.
Taxes on income were $14.6
million (effective tax rate of 20.0%) in the third quarter
of 2017, as compared to $8.9 million
(effective tax rate of 12.5%) in the third quarter of 2016. 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. The lower effective tax rate in the third quarter
of 2016 was mainly a result of prior years adjustments related to
finalizing a tax assessment of a subsidiary.
Equity in net earnings of affiliated companies and
partnerships was $3.5 million
(0.4% of revenues) in the third quarter of 2017, as compared to
$1.4 million (0.2% of revenues) in
the third quarter of 2016.
Net income attributable to non-controlling interests was
$0.3 million in the third quarter of
2017, as compared to $0.2 million in
the third quarter of 2016.
Non-GAAP[(*)] net income
attributable to the Company's shareholders in the third quarter
of 2017 was $67.3 million (8.4% of
revenues), as compared to $62.5
million (8.0% of revenues) in the third quarter of 2016.
GAAP net income in the third quarter of 2017 was
$61.5 million (7.7% of revenues), as
compared to $63.4 million (8.1% of
revenues) in the third quarter of 2016.
Non-GAAP[(*)] diluted net
earnings per share attributable to the Company's
shareholders were $1.57 for
the third quarter of 2017, as compared to $1.46 for the third quarter of 2016. GAAP
diluted earnings per share in the third quarter of 2017 were
$1.44, as compared to $1.48 for the third quarter of 2016.
The Company's backlog of orders as of September 30,
2017 totaled $7,641 million, as
compared to $6,836 million as of
September 30, 2016. Approximately 73% of the current backlog
is attributable to orders from outside Israel. Approximately 45% of the current
backlog is scheduled to be performed during 2017 and 2018.
Operating cash flow used in the nine months ended
September 30, 2017 was $140.0
million, as compared to $31.5
million used in the nine months ended September 30,
2016.
_____________
* see page 3
Accounting policies update:
ASU 2014-09, "Revenue from Contracts with Customers" (ASC 606),
will be effective for the Company beginning January 1, 2018. The Company is adopting ASC 606
effective January 1, 2018 and expects
to do so using the modified retrospective method.
The Company has made progress toward completing the evaluation
of the potential changes from adopting the new standard on its
financial reporting and disclosures. The Company is evaluating the
impact of the standard on its revenue streams and some of its
significant representative contracts. The Company has significantly
progressed in its assessment of the impact on its business
processes, controls and systems. We are in the process of
implementing changes to business processes, systems and internal
controls required to implement and account for the new
standard.
The adoption of the new standard may primarily impact the
Company's contracts where revenue is currently recognized using the
percentage-of-completion units-of-delivery method, with the
possible resulting impact being revenue which may be recognized
earlier in the performance period as it incurs costs, as opposed to
when units are delivered. This change may also impact the Company's
balance sheet presentation with a possible decrease in inventories,
an increase in contract assets (i.e., unbilled receivables) and a
net increase to retained earnings to primarily reflect the impact
of converting units-of-delivery contracts to the cost-to-cost
method for recognizing revenue and profits.
Our evaluation of the standard and its impact on the financial
statements, contracts and required financial controls will continue
through the adoption date, including any impacts related to new
contracts awarded.
* 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)
|
Nine Months
Ended
September 30,
|
|
Three Months
Ended
September 30,
|
|
Year Ended
December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
|
714.5
|
|
|
$
|
678.7
|
|
|
$
|
251.0
|
|
|
$
|
230.4
|
|
|
$
|
959.6
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
16.9
|
|
|
23.5
|
|
|
5.3
|
|
|
7.7
|
|
|
31.2
|
|
Non-GAAP gross
profit
|
$
|
731.4
|
|
|
$
|
702.2
|
|
|
$
|
256.3
|
|
|
$
|
238.1
|
|
|
$
|
990.8
|
|
Percent of
revenues
|
30.9
|
%
|
|
30.4
|
%
|
|
32.0
|
%
|
|
30.5
|
%
|
|
30.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
|
215.7
|
|
|
$
|
211.5
|
|
|
$
|
82.2
|
|
|
$
|
78.3
|
|
|
$
|
299.0
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
21.7
|
|
|
31.3
|
|
|
7.0
|
|
|
10.1
|
|
|
41.2
|
|
Gain from changes in
holdings
|
—
|
|
|
(17.6)
|
|
|
—
|
|
|
(10.5)
|
|
|
(17.6)
|
|
Non-GAAP operating
income
|
$
|
237.4
|
|
|
$
|
225.2
|
|
|
$
|
89.2
|
|
|
$
|
77.9
|
|
|
$
|
322.6
|
|
Percent of
revenues
|
10.0
|
%
|
|
9.8
|
%
|
|
11.1
|
%
|
|
10.0
|
%
|
|
9.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to Elbit Systems' shareholders
|
$
|
169.7
|
|
|
$
|
169.8
|
|
|
$
|
61.5
|
|
|
$
|
63.4
|
|
|
$
|
236.9
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
21.7
|
|
|
31.3
|
|
|
7.0
|
|
|
10.1
|
|
|
41.2
|
|
Capital
gain
|
—
|
|
|
(3.9)
|
|
|
—
|
|
|
—
|
|
|
(3.9)
|
|
Impairment of
investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.5
|
|
Gain from changes in
holdings
|
—
|
|
|
(16.4)
|
|
|
—
|
|
|
(9.3)
|
|
|
(16.4)
|
|
Related tax
benefits
|
(3.6)
|
|
|
(4.4)
|
|
|
(1.2)
|
|
|
(1.7)
|
|
|
(6.1)
|
|
Non-GAAP net
income attributable to Elbit Systems' shareholders
|
$
|
187.8
|
|
|
$
|
176.4
|
|
|
$
|
67.3
|
|
|
$
|
62.5
|
|
|
$
|
254.2
|
|
Percent of
revenues
|
7.9
|
%
|
|
7.6
|
%
|
|
8.4
|
%
|
|
8.0
|
%
|
|
7.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
EPS
|
$
|
3.97
|
|
|
$
|
3.97
|
|
|
$
|
1.44
|
|
|
$
|
1.48
|
|
|
$
|
5.54
|
|
Adjustments,
net
|
0.42
|
|
|
0.16
|
|
|
0.13
|
|
|
(0.02)
|
|
|
0.41
|
|
Non-GAAP diluted
net EPS
|
$
|
4.39
|
|
|
$
|
4.13
|
|
|
$
|
1.57
|
|
|
$
|
1.46
|
|
|
$
|
5.95
|
|
Recent Events:
On August 17, 2017, the Company
confirmed, in an answer to media inquiries, that on August 7, 2017, a jury in the United States
District Court for the Eastern District of Texas found Hughes Network Systems, LLC, to
have infringed one of its patent, which generally relates to
high-speed satellite communications, U.S. Patent No. 6,240,073.
On August 29, 2017, the Company
announced that it was awarded an approximately $93 million contract from an Asia-Pacific country to upgrade its F-5
aircraft fleet. The contract will be performed over a three-year
period. Under the upgrade contract, Elbit Systems will supply the
F-5 with cutting edge systems, including Head-Up Displays (HUDs),
an advanced cockpit, radars, weapon delivery and navigation
systems, as well as DASH IV Head Mounted Systems.
On September 4, 2017, the Company
announced that it was awarded an approximately $11 million contract for the supply of an
integrated maritime C4ISR system to an Asia-Pacific navy. The contract, to be
performed over a two-year period, will include interconnected
coastal sensor towers, naval command centers and maritime C4I
capabilities, as well as ongoing maintenance. The project will
support commanders and other users (headquarters, command centers,
coastal observation posts and vessels) throughout routine and
special operations and will also be used for training and
simulation.
On September 12, 2017, the Company
announced that its subsidiary, Elbit Systems of America, LLC, was
awarded a U.S. Customs and Border Protection (CBP) contract to
provide a tower and in-fill radar system that supplies a complete
capability to detect flying objects in highly cluttered
environments. The contract, in an amount that is not material to
Elbit Systems, will be performed in Texas.
On September 18, 2017, the Company
announced that it will reorganize the business of CYBERBIT
Solutions Ltd., its wholly-owned subsidiary. The defense Cyber
Intelligence and Cyber Security business will be integrated with
Elbit Systems Land and C4I Division, and the commercial cyber
business will continue to operate under CYBERBIT Ltd. The
reorganization will become effective as of January 1, 2018.
On September 26, 2017, the Company
announced that it was awarded a contract, in an amount of
$240 million, to provide a wide array
of defense electronic systems to a country in Africa. The contract, which will be performed
over a two-year period, is comprised of Directed Infra-red Counter
Measure (DIRCM) systems to protect aircraft from shoulder fired
missiles (Man Portable Air Defense Systems -MANPADS), based on
passive IR (Infrared) systems, and includes Missile Warning Systems
(MWS), radio and communication systems, land systems, mini-UAS
systems and a helicopter upgrade.
On September 27, 2017, the Company
announced that it was awarded an approximately $300 million contract, for the supply of command
and control systems to a customer in Asia-Pacific. The project will be performed
over a three-year period.
On October 3, 2017, the Company
announced that its subsidiary, Elbit Systems of America, LLC, was
awarded a $31.5 million additional
component contract by the Defense Logistics Agency Land and
Maritime to provide Aviator Night Vision Imaging System Head-Up
Displays (ANVIS HUD). Work will be performed over a two-year
period.
Dividend:
The Board of Directors declared a dividend of $0.44 per share for the third quarter of 2017.
The dividend's record date is December 1,
2017. The dividend will be paid from income generated as
Preferred Income (as defined under Israel tax laws), on December 18, 2017, net of taxes and levies, at
the rate of 20%.
Conference Call:
The Company will be hosting a conference call today,
Tuesday, November 14, 2017 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: +1-888-407-2553
Canada Dial-in Numbers: +1-866-485-2399
UK Dial-in Number: 0-800-917-5108
ISRAEL Dial-in Number: 03-918-0610
INTERNATIONAL Dial-in Number: +972-3-918 0610
at: 9:00 am Eastern
Time; 6:00 am Pacific Time;
2:00 pm UK Time; 4:00 pm Israel Time
This call will also be broadcast live on Elbit Systems' web-site
at http://www.elbitsystems.com. An online replay will be
available from 24 hours after the call ends.
Alternatively, for two days following the call, investors will
be able to dial a replay number to listen to the call. The dial-in
numbers are:
+1-888-782-4291 (US and Canada)
or +972-3-925-5928 (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 airborne, land and naval systems, command, control,
communications, computers, intelligence surveillance and
reconnaissance ("C4ISR"), unmanned aircraft systems, advanced
electro-optics, electro-optic space systems, EW 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:
http://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)
|
September
30,
|
|
December
31,
|
|
2017
|
|
2016
|
|
Unaudited
|
|
Audited
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
124,055
|
|
|
$
|
222,810
|
|
Short-term bank
deposits and marketable securities
|
18,606
|
|
|
22,252
|
|
Trade and unbilled
receivables, net
|
1,446,287
|
|
|
1,232,591
|
|
Other receivables and
prepaid expenses
|
145,644
|
|
|
102,979
|
|
Inventories, net of
customers advances
|
925,929
|
|
|
840,266
|
|
Total current
assets
|
2,660,521
|
|
2,420,898
|
|
|
|
|
Investments in
affiliated companies and partnerships
|
174,816
|
|
|
180,962
|
|
Long-term trade and
unbilled receivables
|
197,028
|
|
|
189,688
|
|
Long-term bank
deposits and other receivables
|
36,702
|
|
|
15,917
|
|
Deferred income
taxes, net
|
80,622
|
|
|
79,639
|
|
Severance pay
fund
|
292,585
|
|
|
264,253
|
|
|
781,753
|
|
730,459
|
|
|
|
|
Property, plant and
equipment, net
|
489,295
|
|
|
474,109
|
|
Goodwill and other
intangible assets, net
|
760,223
|
|
|
726,398
|
|
Total
assets
|
$
|
4,691,792
|
|
|
$
|
4,351,864
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Short-term bank
credit and loans
|
$
|
291,481
|
|
|
$
|
5,027
|
|
Current maturities of
long-term loans and Series A Notes
|
67,777
|
|
|
228,956
|
|
Trade
payables
|
494,678
|
|
|
514,106
|
|
Other payables and
accrued expenses
|
849,981
|
|
|
828,716
|
|
Customer advances in
excess of costs incurred on contracts in progress
|
411,743
|
|
|
347,393
|
|
|
2,115,660
|
|
1,924,198
|
|
|
|
|
Long-term loans, net
of current maturities
|
120,051
|
|
|
475
|
|
Series A Notes, net
of current maturities
|
125,136
|
|
|
171,066
|
|
Employee benefit
liabilities
|
400,715
|
|
|
376,115
|
|
Deferred income taxes
and tax liabilities, net
|
70,614
|
|
|
60,098
|
|
Customer advances in
excess of costs incurred on contracts in progress
|
129,313
|
|
|
174,529
|
|
Other long-term
liabilities
|
48,844
|
|
|
78,142
|
|
|
894,673
|
|
860,425
|
|
|
|
|
Elbit Systems Ltd.'s
equity
|
1,672,385
|
|
|
1,559,840
|
|
Non-controlling
interests
|
9,074
|
|
|
7,401
|
|
Total
equity
|
1,681,459
|
|
1,567,241
|
Total liabilities
and equity
|
$
|
4,691,792
|
|
|
$
|
4,351,864
|
|
ELBIT SYSTEMS LTD.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands of US Dollars, except for share and per share
amount)
|
Nine Months
Ended
September
30,
|
|
Three Months
Ended
September 30,
|
|
Year Ended
December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2016
|
|
Unaudited
|
|
Unaudited
|
|
Audited
|
Revenues
|
$
|
2,368,221
|
|
|
$
|
2,306,497
|
|
|
$
|
800,734
|
|
|
$
|
780,776
|
|
|
$
|
3,260,219
|
|
Cost of
revenues
|
1,653,762
|
|
|
1,627,748
|
|
|
549,753
|
|
|
550,403
|
|
|
2,300,636
|
|
Gross
profit
|
714,459
|
|
|
678,749
|
|
|
250,981
|
|
|
230,373
|
|
|
959,583
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development, net
|
192,598
|
|
|
188,814
|
|
|
67,092
|
|
|
65,578
|
|
|
255,792
|
|
Marketing and
selling, net
|
199,003
|
|
|
182,252
|
|
|
66,934
|
|
|
60,926
|
|
|
271,037
|
|
General and
administrative, net
|
107,160
|
|
|
113,754
|
|
|
34,791
|
|
|
36,138
|
|
|
151,353
|
|
Other operating
income, net
|
—
|
|
|
(17,575)
|
|
|
—
|
|
|
(10,543)
|
|
|
(17,575)
|
|
Total operating
expenses
|
498,761
|
|
|
467,245
|
|
|
168,817
|
|
|
152,099
|
|
|
660,607
|
|
Operating
income
|
215,698
|
|
|
211,504
|
|
|
82,164
|
|
|
78,274
|
|
|
298,976
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
(24,810)
|
|
|
(14,495)
|
|
|
(9,333)
|
|
|
(7,303)
|
|
|
(23,742)
|
|
Other income,
net
|
37
|
|
|
3,942
|
|
|
5
|
|
|
32
|
|
|
3,967
|
|
Income before income
taxes
|
190,925
|
|
|
200,951
|
|
|
72,836
|
|
|
71,003
|
|
|
279,201
|
|
|
|
|
|
|
|
|
|
|
|
Taxes on
income
|
(30,151)
|
|
|
(35,812)
|
|
|
(14,579)
|
|
|
(8,856)
|
|
|
(45,617)
|
|
|
160,774
|
|
|
165,139
|
|
|
58,257
|
|
|
62,147
|
|
|
233,584
|
|
|
|
|
|
|
|
|
|
|
|
Equity in net
earnings of affiliated companies and partnerships
|
9,918
|
|
|
5,855
|
|
|
3,500
|
|
|
1,426
|
|
|
5,224
|
|
Net income
|
$
|
170,692
|
|
|
$
|
170,994
|
|
|
$
|
61,757
|
|
|
$
|
63,573
|
|
|
$
|
238,808
|
|
Less: net income
attributable to non-controlling interests
|
(996)
|
|
|
(1,197)
|
|
|
(280)
|
|
|
(195)
|
|
|
(1,899)
|
|
Net income
attributable to Elbit Systems Ltd.'s shareholders
|
$
|
169,696
|
|
|
$
|
169,797
|
|
|
$
|
61,477
|
|
|
$
|
63,378
|
|
|
$
|
236,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Elbit Systems Ltd.'s shareholders:
|
|
|
|
|
Basic net earnings
per share
|
$
|
3.97
|
|
|
$
|
3.97
|
|
|
$
|
1.44
|
|
|
$
|
1.48
|
|
|
$
|
5.54
|
|
Diluted net earnings
per share
|
$
|
3.97
|
|
|
$
|
3.97
|
|
|
$
|
1.44
|
|
|
$
|
1.48
|
|
|
$
|
5.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares (in thousands)
|
|
|
|
|
|
|
|
|
Shares used in
computation of basic earnings per share
|
42,749
|
|
|
42,741
|
|
|
42,751
|
|
|
42,745
|
|
|
42,742
|
|
Shares used in
computation of diluted earnings per share
|
42,753
|
|
|
42,751
|
|
|
42,753
|
|
|
42,753
|
|
|
42,752
|
|
ELBIT SYSTEMS LTD.
CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands of US dollars)
|
Nine Months
Ended
September 30,
|
|
Year Ended
December 31,
|
|
2017
|
|
2016
|
|
2016
|
|
Unaudited
|
|
Audited
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net
income
|
$
|
170,692
|
|
|
$
|
170,994
|
|
|
$
|
238,808
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
84,884
|
|
|
89,186
|
|
|
122,888
|
|
Write-off impairment on
marketable securities
|
—
|
|
|
—
|
|
|
86
|
|
Stock-based
compensation
|
13
|
|
|
58
|
|
|
70
|
|
Amortization of Series
A Notes premium and related issuance costs, net
|
(69)
|
|
|
(69)
|
|
|
(92)
|
|
Deferred income taxes
and reserve, net
|
6,920
|
|
|
15,210
|
|
|
2,683
|
|
Gain on sale of
property, plant and equipment
|
(2,101)
|
|
|
(3,777)
|
|
|
(3,347)
|
|
Loss (gain) on sale and
revaluation of investments, net
|
635
|
|
|
(16,752)
|
|
|
(16,734)
|
|
Equity in net earnings
of affiliated companies and partnerships, net of dividend received
(*)
|
(6,560)
|
|
|
(5,855)
|
|
|
(1,728)
|
|
Changes in operating
assets and liabilities, net of amounts acquired:
|
|
|
|
|
|
Increase in short and
long-term trade receivables and prepaid expenses
|
(272,320)
|
|
|
(268,833)
|
|
|
(297,439)
|
|
Increase in
inventories, net
|
(82,674)
|
|
|
(59,561)
|
|
|
(8,040)
|
|
Increase (decrease) in
trade payables, other payables and accrued expenses
|
(57,985)
|
|
|
121,861
|
|
|
253,413
|
|
Severance, pension and
termination indemnities, net
|
(554)
|
|
|
1,332
|
|
|
315
|
|
Increase (decrease) in
advances received from customers
|
19,134
|
|
|
(75,248)
|
|
|
(82,881)
|
|
Net cash provided by
(used in) operating activities
|
(139,985)
|
|
|
(31,454)
|
|
|
208,002
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Purchase of property,
plant and equipment and other assets
|
(78,136)
|
|
|
(99,936)
|
|
|
(124,221)
|
|
Acquisition of
subsidiaries and business operations
|
(25,440)
|
|
|
—
|
|
|
—
|
|
Investments in
affiliated companies and other companies
|
(1,078)
|
|
|
(19,277)
|
|
|
(19,277)
|
|
Deconsolidation of
subsidiary
|
—
|
|
|
(1,538)
|
|
|
(1,538)
|
|
Proceeds from sale of
property, plant and equipment
|
4,932
|
|
|
12,514
|
|
|
15,745
|
|
Proceeds from sale of
investments
|
12,067
|
|
|
—
|
|
|
—
|
|
Investment in long-term
deposits
|
(717)
|
|
|
(109)
|
|
|
(417)
|
|
Proceeds from sale of
long-term deposits
|
175
|
|
|
661
|
|
|
894
|
|
Investment in
short-term deposits and marketable securities
|
(23,746)
|
|
|
(24,530)
|
|
|
(25,622)
|
|
Proceeds from sale of
short-term deposits and marketable securities
|
28,139
|
|
|
32,146
|
|
|
36,619
|
|
Net cash used in
investing activities
|
(83,804)
|
|
|
(100,069)
|
|
|
(117,817)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Proceeds from exercise
of options
|
119
|
|
|
488
|
|
|
505
|
|
Repayment of long-term
loans
|
(166,879)
|
|
|
(48,250)
|
|
|
(48,250)
|
|
Proceeds from long-term
loans
|
118,615
|
|
|
—
|
|
|
—
|
|
Repayment of Series A
Notes
|
(55,532)
|
|
|
(55,532)
|
|
|
(55,532)
|
|
Dividends
paid
|
(56,475)
|
|
|
(51,336)
|
|
|
(68,447)
|
|
Change in short-term
bank credit and loans, net
|
285,186
|
|
|
149,062
|
|
|
5,027
|
|
Net cash provided by
(used in) financing activities
|
125,034
|
|
|
(5,568)
|
|
|
(166,697)
|
|
Net decrease in cash
and cash equivalents
|
(98,755)
|
|
|
(137,091)
|
|
|
(76,512)
|
|
Cash and cash
equivalents at the beginning of the year
|
222,810
|
|
|
299,322
|
|
|
299,322
|
|
Cash and cash
equivalents at the end of the period
|
$
|
124,055
|
|
|
$
|
162,231
|
|
|
$
|
222,810
|
|
|
|
|
|
|
|
* Dividend
received from affiliated companies and partnerships
|
$
|
3,358
|
|
|
$
|
—
|
|
|
$
|
3,496
|
|
ELBIT SYSTEMS LTD.
DISTRIBUTION OF REVENUES
Consolidated Revenues by Areas of Operation:
|
Nine Months Ended
September 30,
|
|
Three Months Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
Airborne
systems
|
897.2
|
|
|
37.9
|
|
|
900.0
|
|
|
39.0
|
|
|
304.3
|
|
|
38.0
|
|
|
305.3
|
|
|
39.1
|
|
C4ISR
systems
|
826.8
|
|
|
34.9
|
|
|
891.3
|
|
|
38.6
|
|
|
274.2
|
|
|
34.2
|
|
|
363.0
|
|
|
46.5
|
|
Land
systems
|
324.5
|
|
|
13.7
|
|
|
258.0
|
|
|
11.2
|
|
|
121.0
|
|
|
15.1
|
|
|
31.8
|
|
|
4.1
|
|
Electro-optic
systems
|
252.4
|
|
|
10.7
|
|
|
181.2
|
|
|
7.9
|
|
|
82.9
|
|
|
10.3
|
|
|
57.9
|
|
|
7.4
|
|
Other (mainly
non-defense engineering and production services)
|
67.3
|
|
|
2.8
|
|
|
76.0
|
|
|
3.3
|
|
|
18.3
|
|
|
2.4
|
|
|
22.8
|
|
|
2.9
|
|
Total
|
2,368.2
|
|
|
100.0
|
|
|
2,306.5
|
|
|
100.0
|
|
|
800.7
|
|
|
100.0
|
|
|
780.8
|
|
|
100.0
|
|
Consolidated Revenues by Geographical Regions:
|
Nine Months Ended
September 30,
|
|
Three Months Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
Israel
|
509.3
|
|
|
21.5
|
|
|
506.7
|
|
|
22.0
|
|
|
174.3
|
|
|
21.8
|
|
|
183.4
|
|
|
23.5
|
|
North
America
|
591.4
|
|
|
25.0
|
|
|
596.0
|
|
|
25.8
|
|
|
189.6
|
|
|
23.7
|
|
|
199.7
|
|
|
25.6
|
|
Europe
|
528.5
|
|
|
22.3
|
|
|
422.4
|
|
|
18.3
|
|
|
163.6
|
|
|
20.4
|
|
|
161.5
|
|
|
20.7
|
|
Asia-Pacific
|
510.5
|
|
|
21.6
|
|
|
595.1
|
|
|
25.8
|
|
|
181.6
|
|
|
22.7
|
|
|
176.3
|
|
|
22.6
|
|
Latin
America
|
149.3
|
|
|
6.3
|
|
|
151.4
|
|
|
6.6
|
|
|
56.3
|
|
|
7.0
|
|
|
54.7
|
|
|
7.0
|
|
Other
countries
|
79.2
|
|
|
3.3
|
|
|
34.9
|
|
|
1.5
|
|
|
35.3
|
|
|
4.4
|
|
|
5.2
|
|
|
0.6
|
|
Total
|
2,368.2
|
|
|
100.0
|
|
|
2,306.5
|
|
|
100.0
|
|
|
800.7
|
|
|
100.0
|
|
|
780.8
|
|
|
100.0
|
|
Company Contact
Joseph Gaspar,
Executive VP & CFO
Tel: +972-772946663
j.gaspar@elbitsystems.com
David Vaaknin,
VP, Head of Corporate Communications
Tel: +972-772946784
david.vaaknin@elbitsystems.com
Elbit Systems Ltd.
IR Contact:
Ehud Helft
Kenny Green
GK Investor
Relations
Tel: 1-646-201-9246
elbitsystems@gkir.com
View original
content:http://www.prnewswire.com/news-releases/elbit-systems-reports-third-quarter-of-2017-results-300555376.html
SOURCE Elbit Systems Ltd