HAIFA, Israel, Aug. 16,
2018 /PRNewswire/ -- Elbit Systems Ltd. (NASDAQ: ESLT)
(TASE: ESLT), (the "Company") the international high
technology company, reported today its consolidated results for the
quarter ended June 30, 2018.
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 the second quarter year over
year revenue growth of 9%, while maintaining the 10% year over year
growth in our backlog. This quarter, in particular, we see the
fruits of our prior investment in Cyberbit. In line with our
strategy of partnering with strategic investors to aid in the
development of our commercial businesses, we had this quarter a
$30 million external investment in
Cyberbit. We believe that Cyberbit will further develop its
business together with our new partner.
Furthermore, our strategy of enhancing organic growth with
synergistic acquisitions continues. The results of this quarter for
the first time include those of Universal Avionics Systems
Corporation, a company we acquired that is active in the field of
commercial avionics. This acquisition is part of our strategy of
strengthening our footprint in this business area. Our combined
portfolio will create strong synergies that we believe will
ultimately generate further growth opportunities for us."
Second quarter 2018 results:
Revenues in the second quarter of 2018 were
$892.2 million, as compared to
$818.3 million in the second quarter
of 2017.
Non-GAAP (*) gross profit amounted to
$254.8 million (28.6% of revenues) in
the second quarter of 2018, as compared to $248.3 million (30.4% of revenues) in the second
quarter of 2017. GAAP gross profit in the second quarter of
2018 was $250.0 million (28.0% of
revenues), as compared to $242.3
million (29.6% of revenues) in the second quarter of 2017.
The gross profit margin was affected by the mix of projects sold in
the quarter.
Research and development expenses, net were $76.6 million (8.6% of revenues) in the second
quarter of 2018, as compared to $67.1
million (8.2% of revenues) in the second quarter of
2017.
_____________
* see page 3
Marketing and selling expenses, net were $69.9 million (7.8% of revenues) in the second
quarter of 2018, as compared to $66.3
million (8.1% of revenues) in the second quarter of
2017.
General and administrative expenses, net were
$37.0 million (4.2% of revenues) in
the second quarter of 2018, as compared to $33.6 million (4.1% of revenues) in the second
quarter of 2017. The lower expenses in the second quarter of 2017
resulted from revaluation of liabilities related to assets and
activities acquired in prior years.
Other operating income, net in the second quarter of 2018
amounted to $45.4 million. This was
the result of net gains related to valuation of shares in two of
our Israeli subsidiaries in the cyber and medical instrumentation
areas, due to third party investments.
Non-GAAP(*) operating income was $73.1 million (8.2% of revenues) in the second
quarter of 2018, as compared to $82.7
million (10.1% of revenues) in the second quarter
of 2017. GAAP operating income in the second
quarter of 2018 was $111.8
million (12.5% of revenues), as compared to $75.3 million (9.2% of revenues) in the second
quarter of 2017.
Financial expenses, net were $10.7
million in the second quarter of 2018, as compared to
$6.8 million in the second quarter of
2017. The increase in financial expenses in the second quarter of
2018 was mainly a result of higher level of debt and increased
libor interest rates.
Taxes on income were $7.3
million (effective tax rate of 7.6%) in the second quarter
of 2018, as compared to $10.3 million
(effective tax rate of 15.1%) in the second quarter of
2017. The effective tax rate is affected by the mix of the tax
rates in the various jurisdictions in which the Company's entities
generate taxable income and other income that is not part of the
taxable income.
Other expenses, net in the second quarter of 2018
amounted to $5.1 million. This was
the result of an adjustment to the fair value of our investment in
an Israeli subsidiary.
Equity in net earnings of affiliated companies and
partnerships was $3.3 million
(0.4% of revenues) in the second quarter of 2018, as compared to
$4.8 million (0.6% of revenues) in
the second quarter of 2017.
Net income attributable to non-controlling interests was
$0.1 million in the second quarter of
2018, as compared to $0.4 million in
the second quarter of 2017.
Non-GAAP(*) net income attributable to the
Company's shareholders in the second quarter of 2018 was
$57.5 million (6.5% of revenues), as
compared to $68.8 million (8.4% of
revenues) in the second quarter of 2017. GAAP net income in
the second quarter of 2018 was $91.9
million (10.3% of revenues), as compared to $62.6 million (7.6% of revenues) in the second
quarter of 2017.
Non-GAAP(*) diluted net earnings per share
attributable to the Company's shareholders were
$1.35 for the second quarter of 2018,
as compared to $1.61 for the second
quarter of 2017. GAAP diluted earnings per share in the
second quarter of 2018 were $2.15, as
compared to $1.46 for the second
quarter of 2017.
The Company's backlog of orders for the quarter ended
June 30, 2018 totaled $8,065
million as compared to $7,329
million as of June 30, 2017. Approximately 74% of
the current backlog is attributable to orders from outside Israel.
Approximately 55% of the current backlog is scheduled to be
performed during 2018 and 2019.
Operating cash flow used in the six months ended
June 30, 2018 was $1.1
million, as compared to $2.7
million provided in the six months ended June 30,
2017.
_____________
* see page 3
Accounting policies update:
The Company adopted the new revenue recognition accounting
standard ASC 606, effective January 1,
2018, using the modified retrospective approach. Financial
results for reporting periods during 2018 are presented in
compliance with ASC 606. Historical financial results for the
reporting periods prior to 2018 are presented in conformity with
amounts previously disclosed under the prior revenue recognition
standard, ASC 605. The adoption of ASC 606 primarily impacts the
Company's contracts where revenue was recognized using the
percentage of completion units of delivery method, which under ASC
606 can be recognized over time because control is transfered
continuously to the customer over the performance period for
contracts recognized over time. As a result, the adoption of ASC
606 influenced part of the revenue growth in 2018.
The cumulative effects of the transition to ASC 606 on
January 1, 2018, resulted in the
following main adjustments: a $0.1
million increase in retained earnings, a decrease in
inventories of approximately $81.9
million, an increase in contract assets (unbilled
receivables) of approximately $78.8
million and a net decrease in customer advances and other
contract liabilities and deferred tax assets in the aggregate
amount of approximately $3.2
million.
According to ASC 606, customer advances are no longer deducted
from inventories. Accordingly, on January 1,
2018, the open balances of inventories net and customer
advances were grossed up in the amount of approximately
$87 million.
* Non-GAAP financial data:
The following non-GAAP financial data is presented to enable
investors to have additional information on the Company's business
performance as well as a further basis for periodical comparisons
and trends relating to the Company's financial results. The Company
believes such data provides useful information to investors by
facilitating more meaningful comparisons of the Company's financial
results over time. Such non-GAAP information is used by the
Company's management to make strategic decisions, forecast future
results and evaluate the Company's current performance. However,
investors are cautioned that, unlike financial measures prepared in
accordance with GAAP, non-GAAP measures may not be comparable with
the calculation of similar measures for other companies.
The non-GAAP financial data includes reconciliation adjustments
regarding non-GAAP gross profit, operating income, net income and
diluted EPS. In arriving at non-GAAP presentations, companies
generally factor out items such as those that have a non-recurring
impact on the income statements, various non-cash items,
significant effects of retroactive tax legislation and changes in
accounting guidance and other items, which in management's
judgment, are items that are considered to be outside of the review
of core operating results.
In the Company's non-GAAP presentation, the Company made certain
adjustments, as indicated in the table below.
These non-GAAP measures are not based on any comprehensive set
of accounting rules or principles. The Company believes that
non-GAAP measures have limitations in that they do not reflect all
of the amounts associated with the Company's results of operations,
as determined in accordance with GAAP, and that these measures
should only be used to evaluate the Company's results of operations
in conjunction with the corresponding GAAP measures. Investors
should consider non-GAAP financial measures in addition to, and not
as replacements for or superior to, measures of financial
performance prepared in accordance with GAAP.
|
|
|
Reconciliation of
GAAP to Non-GAAP (Unaudited) Supplemental Financial
Data
|
(US Dollars in
millions)
|
|
|
|
Six Months
Ended
June 30,
|
|
Three Months
Ended
June 30,
|
|
Year
Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
|
485.4
|
|
|
$
|
463.5
|
|
|
$
|
250.0
|
|
|
$
|
242.3
|
|
|
$
|
997.9
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
9.2
|
|
|
11.7
|
|
|
4.8
|
|
|
6.0
|
|
|
22.2
|
|
Non-GAAP
gross profit
|
$
|
494.6
|
|
|
$
|
475.2
|
|
|
$
|
254.8
|
|
|
$
|
248.3
|
|
|
$
|
1,020.1
|
|
Percent of
revenues
|
28.9%
|
|
|
30.3%
|
|
|
28.6%
|
|
|
30.4%
|
|
|
30.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
|
175.1
|
|
|
$
|
133.5
|
|
|
$
|
111.8
|
|
|
$
|
75.3
|
|
|
$
|
319.3
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization
of purchased intangible assets
|
12.8
|
|
|
14.7
|
|
|
6.7
|
|
|
7.4
|
|
|
28.6
|
|
Gain from changes in
holdings
|
(45.4)
|
|
|
—
|
|
|
(45.4)
|
|
|
—
|
|
|
—
|
|
Non-GAAP operating
income
|
$
|
142.5
|
|
|
$
|
148.2
|
|
|
$
|
73.1
|
|
|
$
|
82.7
|
|
|
$
|
347.9
|
|
Percent of
revenues
|
8.3%
|
|
|
9.5%
|
|
|
8.2%
|
|
|
10.1%
|
|
|
10.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to Elbit
Systems' shareholders
|
$
|
141.6
|
|
|
$
|
108.2
|
|
|
$
|
91.9
|
|
|
$
|
62.6
|
|
|
$
|
239.1
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
12.8
|
|
|
14.7
|
|
|
6.7
|
|
|
7.4
|
|
|
28.6
|
|
Fair value adjustment
of investment
|
5.1
|
|
|
—
|
|
|
5.1
|
|
|
—
|
|
|
—
|
|
Gain from changes in
holdings
|
(45.4)
|
|
|
—
|
|
|
(45.4)
|
|
|
—
|
|
|
—
|
|
Related tax
benefits
|
(1.7)
|
|
|
(2.5)
|
|
|
(0.8)
|
|
|
(1.2)
|
|
|
6.2
|
|
Non-GAAP net
income attributable to Elbit
Systems' shareholders
|
$
|
112.4
|
|
|
$
|
120.4
|
|
|
$
|
57.5
|
|
|
$
|
68.8
|
|
|
$
|
273.9
|
|
Percent of
revenues
|
6.6%
|
|
|
7.7%
|
|
|
6.5%
|
|
|
8.4%
|
|
|
8.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
EPS
|
$
|
3.31
|
|
|
$
|
2.53
|
|
|
$
|
2.15
|
|
|
$
|
1.46
|
|
|
$
|
5.59
|
|
Adjustments,
net
|
(0.68)
|
|
|
0.29
|
|
|
0.80
|
|
|
0.15
|
|
|
0.81
|
|
Non-GAAP diluted
net EPS
|
$
|
2.63
|
|
|
$
|
2.82
|
|
|
$
|
1.35
|
|
|
$
|
1.61
|
|
|
$
|
6.41
|
|
Recent Events:
On May 31, 2018, the Company
announced that its wholly-owned subsidiary in Canada, GeoSpectrum Technologies Inc. was
awarded a contract from STX Engine Co., to deliver a full
end-to-end Underwater Sound Source System and software package to
the Republic of Korea Navy. The system will be supplied by the end
of 2018. The contract is in an amount that is not material to Elbit
Systems.
On June 4, 2018, the Company
announced that it's wholly-owned subsidiary, Cyberbit Ltd.
(Cyberbit), raised a $30 million
investment from the private equity investor Claridge Israel L.P. Engaged in the cyber
security area, Cyberbit provides the cyber training and simulation
solution - Cyberbit Range and a consolidated detection and response
platform that protects an organization's entire attack surface
across IT, OT and IoT networks.
On June 13, 2018, the Company
announced that it's subsidiary, Beyeonics Surgical Ltd.
(Beyeonics), concluded a first round of funding, raising a
$11.5 million investment from leading
investment groups including an international corporation. Beyeonics
develops innovative surgeon-centered visualization technologies
that improve the surgeon's efficiency and substantially enhance
patient safety and surgical outcomes.
On June 19, 2018, the Company
announced that the agreements reached between Elbit Systems and the
Israeli Government for the acquisition of IMI Systems Ltd. (IMI),
were approved by the Committee for the Tender of the Sale of State
Shares and by the Board of Directors of the Company. The purchase
price will be approximately $495
million (NIS 1.8 billion),
with an additional payment of up to approximately $27 million (NIS 100
million) contingent upon IMI meeting certain performance
goals.
On June 21, 2018, the Company
announced that it was awarded an approximately $17 million contract from a European country to
supply a range of advanced ground-based electronic warfare and
signal intelligence systems. The contract will be performed over a
two-year period.
On June 28, 2018, the Company
announced that in light of the progress in the acquisition of IMI
by the Company, as announced by the Company on June 19, 2018, the Israeli rating agency Midroog
Ltd. ("Midroog"), placed the Series "A" Notes issued by the Company
in 2010 and in 2012 (the Notes) under review for downgrade (Credit
Review). The Notes are currently rated "Aa1" (on a local scale).
The Credit Review will be performed by Midroog following the
closing of the acquisition transaction.
On August 7, 2018, the Company
announced that it was awarded an approximately $85 million contract from the Israeli Ministry of
Defense to supply electronic warfare suites for the Israeli Navy
Sa'ar 6-class corvettes that will be tasked with the protection of
Israel's Economic Exclusion Zone. The contract will be performed
over a 10-year period.
Dividend:
The Board of Directors declared a dividend of $0.44 per share for the second quarter of 2018.
The dividend's record date is September 4,
2018. The dividend will be paid from income generated as
Preferred Income (as defined under Israel tax laws), on
September 17, 2018, net of taxes and
levies, at the rate of 20%.
Conference Call:
The Company will be hosting a conference call on Thursday, August 16, 2018 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: 1-888-604-5839
UK Dial-in Number: 0-800-917-9141
ISRAEL Dial-in Number: 03-918-0609
INTERNATIONAL Dial-in Number: +972-3-918-0609
at: 9:00 am Eastern
Time; 6:00 am Pacific Time;
2:00 pm UK Time; 4:00 pm Israel Time
This call will also be broadcast live on Elbit Systems' web-site
at http://www.elbitsystems.com. An online replay will be
available from 24 hours after the call ends.
Alternatively, for two days following the call, investors will
be able to dial a replay number to listen to the call. The dial-in
numbers are:
1-888-782-4291 (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 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: 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)
|
|
|
June
30,
|
|
December
31,
|
|
2018
|
|
2017
|
|
Unaudited
|
|
Audited
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
186,977
|
|
$
|
156,074
|
Short-term bank
deposits and marketable securities
|
3,268
|
|
16,497
|
Trade and unbilled
receivables, net
|
1,427,423
|
|
1,406,563
|
Other receivables and
prepaid expenses
|
141,111
|
|
128,946
|
Inventories,
net
|
1,074,318
|
|
902,954
|
Total current
assets
|
2,833,097
|
|
2,611,034
|
|
|
|
|
Investments in
affiliated companies and partnerships
|
220,477
|
|
172,338
|
Long-term trade and
unbilled receivables
|
326,493
|
|
295,396
|
Long-term bank
deposits and other receivables
|
28,499
|
|
38,082
|
Deferred income
taxes, net
|
47,323
|
|
51,358
|
Severance pay
fund
|
280,229
|
|
298,590
|
|
903,021
|
|
855,764
|
|
|
|
|
Property, plant and
equipment, net
|
519,151
|
|
495,716
|
Goodwill and other
intangible assets, net
|
814,345
|
|
752,403
|
Total
assets
|
$
|
5,069,614
|
|
$
|
4,714,917
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Short-term bank
credit and loans
|
$
|
12,755
|
|
$
|
133,750
|
Current maturities of
long-term loans and Series A Notes
|
120,137
|
|
67,556
|
Trade
payables
|
569,587
|
|
633,689
|
Other payables and
accrued expenses
|
836,968
|
|
835,394
|
Customer
advances
|
548,404
|
|
418,560
|
|
2,087,851
|
|
2,088,949
|
|
|
|
|
Long-term loans, net
of current maturities
|
459,798
|
|
119,514
|
Series A Notes, net
of current maturities
|
59,108
|
|
124,865
|
Employee benefit
liabilities
|
394,339
|
|
413,117
|
Deferred income taxes
and tax liabilities, net
|
65,329
|
|
68,159
|
Customer
advances
|
137,965
|
|
133,649
|
Other long-term
liabilities
|
45,889
|
|
48,692
|
|
1,162,428
|
|
907,996
|
|
|
|
|
Elbit Systems Ltd.'s
equity
|
1,809,609
|
|
1,708,310
|
Non-controlling
interests
|
9,726
|
|
9,662
|
Total
equity
|
1,819,335
|
|
1,717,972
|
Total liabilities
and equity
|
$
|
5,069,614
|
|
$
|
4,714,917
|
ELBIT SYSTEMS
LTD.
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
(In thousands of US
Dollars, except for share and per share amount)
|
|
|
|
|
Six Months
Ended
June
30,
|
|
Three Months
Ended
June 30,
|
|
Year Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2017
|
|
Unaudited
|
|
Unaudited
|
|
Audited
|
Revenues
|
$
|
1,710,694
|
|
|
$
|
1,567,487
|
|
|
$
|
892,166
|
|
|
$
|
818,299
|
|
|
$
|
3,377,825
|
|
Cost of
revenues
|
1,225,283
|
|
|
1,104,009
|
|
|
642,180
|
|
|
575,971
|
|
|
2,379,905
|
|
Gross
profit
|
485,411
|
|
|
463,478
|
|
|
249,986
|
|
|
242,328
|
|
|
997,920
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development, net
|
144,740
|
|
|
125,506
|
|
|
76,555
|
|
|
67,069
|
|
|
265,060
|
|
Marketing and
selling, net
|
138,119
|
|
|
132,068
|
|
|
69,949
|
|
|
66,291
|
|
|
280,246
|
|
General and
administrative, net
|
72,784
|
|
|
72,369
|
|
|
37,045
|
|
|
33,645
|
|
|
133,314
|
|
Other operating
income, net
|
(45,367)
|
|
|
—
|
|
|
(45,367)
|
|
|
—
|
|
|
—
|
|
Total operating
expenses
|
310,276
|
|
|
329,943
|
|
|
138,182
|
|
|
167,005
|
|
|
678,620
|
|
Operating
income
|
175,135
|
|
|
133,535
|
|
|
111,804
|
|
|
75,323
|
|
|
319,300
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
(20,994)
|
|
|
(15,478)
|
|
|
(10,745)
|
|
|
(6,833)
|
|
|
(34,502)
|
|
Other (expenses)
income, net
|
(5,088)
|
|
|
37
|
|
|
(5,110)
|
|
|
5
|
|
|
48
|
|
Income before income
taxes
|
149,053
|
|
|
118,094
|
|
|
95,949
|
|
|
68,495
|
|
|
284,846
|
|
|
|
|
|
|
|
|
|
|
|
Taxes on
income
|
(13,639)
|
|
|
(15,572)
|
|
|
(7,277)
|
|
|
(10,321)
|
|
|
(55,585)
|
|
|
135,414
|
|
|
102,522
|
|
|
88,672
|
|
|
58,174
|
|
|
229,261
|
|
|
|
|
|
|
|
|
|
|
|
Equity in net
earnings of affiliated
companies and partnerships
|
6,445
|
|
|
6,418
|
|
|
3,311
|
|
|
4,822
|
|
|
11,361
|
|
Net income
|
$
|
141,859
|
|
|
$
|
108,940
|
|
|
$
|
91,983
|
|
|
$
|
62,996
|
|
|
$
|
240,622
|
|
Less: net income
attributable to non-
controlling interests
|
(299)
|
|
|
(716)
|
|
|
(53)
|
|
|
(412)
|
|
|
(1,513)
|
|
Net income
attributable to Elbit
Systems Ltd.'s shareholders
|
$
|
141,560
|
|
|
$
|
108,224
|
|
|
$
|
91,930
|
|
|
$
|
62,584
|
|
|
$
|
239,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Elbit Systems Ltd.'s shareholders:
|
|
|
|
|
Basic net earnings
per share
|
$
|
3.31
|
|
|
$
|
2.53
|
|
|
$
|
2.15
|
|
|
$
|
1.46
|
|
|
$
|
5.59
|
|
Diluted net earnings
per share
|
$
|
3.31
|
|
|
$
|
2.53
|
|
|
$
|
2.15
|
|
|
$
|
1.46
|
|
|
$
|
5.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares (in thousands)
|
|
|
|
|
|
|
|
|
Shares used in
computation of basic
earnings per share
|
42,752
|
|
|
42,749
|
|
|
42,753
|
|
|
42,749
|
|
|
42,750
|
|
Shares used in
computation of diluted
earnings per share
|
42,754
|
|
|
42,753
|
|
|
42,755
|
|
|
42,755
|
|
|
42,753
|
|
ELBIT SYSTEMS
LTD.
|
CONSOLIDATED
STATEMENTS OF CASH FLOW
|
(In thousands of US
dollars)
|
|
|
Six Months
Ended
June 30,
|
|
Year
Ended
December 31,
|
|
2018
|
|
2017
|
|
2017
|
|
Unaudited
|
|
Audited
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net
income
|
$
|
141,859
|
|
|
$
|
108,940
|
|
|
$
|
240,622
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
56,413
|
|
|
56,360
|
|
|
114,017
|
|
Adjustment to fair
value investment
|
5,114
|
|
|
—
|
|
|
—
|
|
Stock-based
compensation
|
—
|
|
|
13
|
|
|
13
|
|
Amortization of Series
A Notes premium and related issuance costs, net
|
(46)
|
|
|
(46)
|
|
|
(92)
|
|
Deferred income taxes
and reserve, net
|
1,305
|
|
|
1,960
|
|
|
28,774
|
|
Gain on sale of
property, plant and equipment
|
(89)
|
|
|
(1,970)
|
|
|
(2,440)
|
|
Loss (gain) on sale and
revaluation of investments
|
(43,201)
|
|
|
204
|
|
|
1,358
|
|
Equity in net earnings
of affiliated companies and partnerships, net of dividend
received (*)
|
(4,093)
|
|
|
(4,303)
|
|
|
(1,987)
|
|
Changes in operating
assets and liabilities, net of amounts acquired:
|
|
|
|
|
|
Decrease (increase) in
short and long-term trade receivables and prepaid
expenses
|
18,077
|
|
|
(157,407)
|
|
|
(315,236)
|
|
Increase in
inventories, net
|
(136,949)
|
|
|
(50,203)
|
|
|
(59,699)
|
|
Increase (decrease) in
trade payables, other payables and accrued expenses
|
(91,660)
|
|
|
(17,381)
|
|
|
63,274
|
|
Severance, pension and
termination indemnities, net
|
439
|
|
|
12,850
|
|
|
2,003
|
|
Increase in advances
received from customers
|
51,689
|
|
|
53,654
|
|
|
30,286
|
|
Net cash provided by
(used in) operating activities
|
(1,142)
|
|
|
2,671
|
|
|
100,893
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Purchase of property,
plant and equipment and other assets
|
(48,374)
|
|
|
(55,416)
|
|
|
(107,880)
|
|
Acquisition of
subsidiaries and business operations
|
(127,569)
|
|
|
(25,440)
|
|
|
(25,440)
|
|
Investments in
affiliated companies and other companies
|
(3,748)
|
|
|
(678)
|
|
|
(4,964)
|
|
Deconsolidation of
subsidiary
|
(2,873)
|
|
|
—
|
|
|
—
|
|
Proceeds from sale of
property, plant and equipment
|
1,106
|
|
|
3,597
|
|
|
6,270
|
|
Proceeds from sale of
investments
|
—
|
|
|
12,067
|
|
|
12,067
|
|
Investment in long-term
deposits
|
(180)
|
|
|
(499)
|
|
|
(1,396)
|
|
Proceeds from sale of
long-term deposits
|
67
|
|
|
172
|
|
|
176
|
|
Investment in
short-term deposits and marketable securities
|
(5,072)
|
|
|
(26,858)
|
|
|
(40,893)
|
|
Proceeds from sale of
short-term deposits and marketable securities
|
18,104
|
|
|
27,159
|
|
|
46,491
|
|
Net cash used in
investing activities
|
(168,539)
|
|
|
(65,896)
|
|
|
(115,569)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Proceeds from exercise
of options
|
48
|
|
|
63
|
|
|
119
|
|
Repayment of long-term
loans
|
(28)
|
|
|
(140,782)
|
|
|
(167,425)
|
|
Proceeds from long-term
loans
|
340,386
|
|
|
118,550
|
|
|
118,623
|
|
Repayment of Series A
Notes
|
—
|
|
|
(55,532)
|
|
|
(55,532)
|
|
Dividends
paid
|
(18,827)
|
|
|
(37,649)
|
|
|
(75,300)
|
|
Change in short-term
bank credit and loans, net
|
(120,995)
|
|
|
105,248
|
|
|
127,455
|
|
Net cash (used in)
provided by financing activities
|
200,584
|
|
|
(10,102)
|
|
|
(52,060)
|
|
Net increase (decrease)
in cash and cash equivalents
|
30,903
|
|
|
(73,327)
|
|
|
(66,736)
|
|
Cash and cash
equivalents at the beginning of the year
|
156,074
|
|
|
222,810
|
|
|
222,810
|
|
Cash and cash
equivalents at the end of the period
|
186,977
|
|
|
149,483
|
|
|
156,074
|
|
|
|
|
|
|
|
* Dividend
received from affiliated companies and partnerships
|
$
|
2,352
|
|
|
$
|
2,115
|
|
|
$
|
9,374
|
|
ELBIT SYSTEMS
LTD.
|
DISTRIBUTION OF
REVENUES
|
Consolidated
Revenues by Areas of Operation:
|
|
|
Six Months Ended
June 30,
|
|
Three Months Ended
June 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
Airborne
systems
|
678.3
|
|
|
39.7
|
|
|
592.8
|
|
|
37.8
|
|
|
367.3
|
|
|
41.2
|
|
|
302.6
|
|
|
37.0
|
|
C4ISR
systems
|
563.1
|
|
|
32.9
|
|
|
545.4
|
|
|
34.9
|
|
|
287.9
|
|
|
32.3
|
|
|
266.3
|
|
|
32.6
|
|
Land
systems
|
256.5
|
|
|
15.0
|
|
|
210.7
|
|
|
13.4
|
|
|
142.1
|
|
|
15.9
|
|
|
131.8
|
|
|
16.1
|
|
Electro-optic
systems
|
154.8
|
|
|
9.1
|
|
|
169.6
|
|
|
10.8
|
|
|
66.8
|
|
|
7.5
|
|
|
93.2
|
|
|
11.4
|
|
Other (mainly
non-defense
engineering and production services)
|
58.0
|
|
|
3.3
|
|
|
49.0
|
|
|
3.1
|
|
|
28.1
|
|
|
3.1
|
|
|
24.4
|
|
|
2.9
|
|
Total
|
1,710.7
|
|
|
100.0
|
|
|
1,567.5
|
|
|
100.0
|
|
|
892.2
|
|
|
100.0
|
|
|
818.3
|
|
|
100.0
|
|
Consolidated
Revenues by Geographical Regions:
|
|
|
|
Six Months Ended
June 30,
|
|
Three Months Ended
June 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
Israel
|
|
351.9
|
|
|
20.6
|
|
|
335.0
|
|
|
21.4
|
|
|
166.3
|
|
|
18.6
|
|
|
167.6
|
|
|
20.5
|
|
North
America
|
|
461.2
|
|
|
27.0
|
|
|
401.8
|
|
|
25.6
|
|
|
252.5
|
|
|
28.3
|
|
|
208.8
|
|
|
25.5
|
|
Europe
|
|
315.7
|
|
|
18.5
|
|
|
364.9
|
|
|
23.3
|
|
|
162.9
|
|
|
18.3
|
|
|
203.1
|
|
|
24.8
|
|
Asia-Pacific
|
|
364.0
|
|
|
21.3
|
|
|
328.9
|
|
|
21.0
|
|
|
190.4
|
|
|
21.3
|
|
|
162.7
|
|
|
19.9
|
|
Latin
America
|
|
91.0
|
|
|
5.3
|
|
|
93.0
|
|
|
5.9
|
|
|
50.8
|
|
|
5.7
|
|
|
58.6
|
|
|
7.2
|
|
Other
countries
|
|
126.9
|
|
|
7.3
|
|
|
43.9
|
|
|
2.8
|
|
|
69.3
|
|
|
7.8
|
|
|
17.5
|
|
|
2.1
|
|
Total
|
|
1,710.7
|
|
|
100.0
|
|
|
1,567.5
|
|
|
100.0
|
|
|
892.2
|
|
|
100.0
|
|
|
818.3
|
|
|
100.0
|
|
Company
Contact:
Joseph Gaspar,
Executive VP & CFO
Tel:
+972-772946663
j.gaspar@elbitsystems.com
David Vaaknin,
VP, Head of Corporate Communications
Tel:
+972-772946691
david.vaaknin@elbitsystems.com
|
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-second-quarter-of-2018-results-300698184.html
SOURCE Elbit Systems Ltd.