HAIFA, Israel, May 28, 2019 /PRNewswire/ -- Elbit Systems
Ltd. (NASDAQ: ESLT) (TASE: ESLT), (the "Company")
the international high technology company, reported today its
consolidated results for the quarter ended March 31, 2019.
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: "The results of the first quarter of 2019 mark the
first full quarter that includes the results of IMI. I am pleased
with our results, especially the 25% growth in revenue with a
well-diversified global presence in which our major geographic
regions grew on an absolute basis. Our economies of scale enabled
us to maintain a similar level of operating margins despite lower
gross margins following the IMI acquisition. The significant
increase in our backlog and the progress in the integration of IMI
into the Company, support our long-term growth potential."
First quarter 2019 results:
Revenues in the first quarter of 2019 were
$1,021.7 million, as compared to
$818.5 million in the first quarter
of 2018. The strong growth was mainly driven by the consolidation
of IMI and Universal performance in the first quarter of 2019.
Non-GAAP (*) gross profit amounted to
$283.4 million (27.7% of revenues) in
the first quarter of 2019, as compared to $239.8 million (29.3% of revenues) in the first
quarter of 2018. GAAP gross profit in the first quarter of
2019 was $277.6 million (27.2% of
revenues), as compared to $235.4
million (28.8% of revenues) in the first quarter of
2018.
Research and development expenses, net were
$77.4 million (7.6% of revenues) in
the first quarter of 2019, as compared to $68.2 million (8.3% of revenues) in the first
quarter of 2018.
_____________
* see page 3
Marketing and selling expenses, net were $71.8 million (7% of revenues) in the first
quarter of 2019, as compared to $68.2
million (8.3% of revenues) in the first quarter of 2018.
General and administrative expenses, net were
$53.6 million (5.2% of revenues) in
the first quarter of 2019, as compared to $35.7 million (4.4% of revenues) in the first
quarter of 2018.
Other operating income, net was $1.2 million in the first quarter of 2019, due to
a gain resulting from an investment and remeasurement of the
Company in a subsidiary.
Non-GAAP(*) operating income was $84.0 million (8.2% of revenues) in the first
quarter of 2019, as compared to $69.4
million (8.5% of revenues) in the first quarter of
2018. GAAP operating income in the first quarter
of 2019 was $76.0 million (7.4%
of revenues), as compared to $63.3
million (7.7% of revenues) in the first quarter of 2018.
Financial expenses, net were $13.9 million in the first quarter of 2019, as
compared to $10.2 million in the
first quarter of 2018. Financial expenses, net in the first quarter
of 2019, include exchange rate differences of approximately
$9.3 million related to the
recognition of lease liabilities denominated in foreign currencies
(mainly in New Israeli Shekels) as a result of the adoption of ASC
842, Leases, effective January 1,
2019.
Other (expenses) income, net were $3.4 million in the first quarter of 2019, mainly
due to the non-service cost components of pension plans, in
accordance with ASU 2017-07.
Taxes on income were $10.1
million (effective tax rate of 17.2%) in the first quarter
of 2019, as compared to $6.4 million
(effective tax rate of 12.0%) in the first quarter of 2018.
Equity in net earnings of affiliated companies
and partnerships was $2.2 million
(0.2% of revenues) in the first quarter of 2019, as compared to
$3.1 million (0.4% of revenues) in
the first quarter of 2018.
Net income attributable to non-controlling
interests was $0.4 million
in the first quarter of 2019, as compared to $0.2 million in the first quarter of 2018.
Non-GAAP(*) net income attributable to the
Company's shareholders in the first quarter of 2019 was
$65.8 million (6.4% of revenues), as
compared to $55.1 million (6.7% of
revenues) in the first quarter of 2018. GAAP net income
attributable to the Company's shareholders in the first quarter
of 2019 was $50.5 million (4.9% of
revenues), as compared to $49.6
million (6.1% of revenues) in the first quarter of 2018.
Non-GAAP(*) diluted net earnings per share
attributable to the Company's shareholders were
$1.54 for the first quarter of 2019,
as compared to $1.29 for the first
quarter of 2018. GAAP diluted earnings per share in the
first quarter of 2019 were $1.18, as
compared to $1.16 for the first
quarter of 2018.
The Company's backlog of orders as of March 31,
2019 totaled $9,658 million as
compared to $8,046 million as of
March 31, 2018. Approximately 59% of the current backlog is
attributable to orders from outside Israel. Approximately 61% of the current
backlog is scheduled to be performed during 2019 and 2020.
Operating cash flow generated in the three months ended
March 31, 2019 was $46.5
million, as compared to $147.9
million used in the three months ended March 31,
2018.
_____________
* see page 3
Adoption of New Accounting Standard:
The Company adopted Accounting Standards Update (ASU) 2016-02,
Leases (ASC 842), effective January 1,
2019, using a modified retrospective transition method.
Consequently, periods prior to January 1,
2019 are not restated for the adoption of ASU 2016-02.
Leases (ASC 842), as amended, requires lessees to recognize a
Right of Use ("ROU") asset and lease liability on the balance sheet
for most lease arrangements and expands disclosures about leasing
arrangements for both lessees and lessors, among other items. We
adopted ASU 2016-02 using the optional transition method whereby we
applied the new lease requirements under ASU 2016-02 through a
cumulative-effect adjustment.
We recognized approximately $370
million of ROU operating lease assets and lease
liabilities as a result of adopting this standard. As part of our
adoption, we elected all of the available practical expedients with
the exception of the practical expedient permitting the use of
hindsight when determining the lease term and assessing impairment
of ROU assets. The adoption of the standard increased our financial
expenses in the first quarter of 2019, in the amount of
$9.3 million as a result of exchange
rate differences on lease liabilities denominated in foreign
currencies (mainly NIS). The comparative periods have not been
restated for the adoption of ASU 2016-02.
* 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, the Company
factors out items such as those that have a non-recurring impact on
the income statements, various non-cash items, including
significant exchange rate differences, 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
March 31,
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2018
|
|
|
|
|
|
|
GAAP gross
profit
|
$
|
277.6
|
|
|
$
|
235.4
|
|
|
$
|
976.2
|
|
Adjustments:
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
5.8
|
|
|
4.4
|
|
|
19.1
|
|
Expenses related to
IMI acquisition
|
—
|
|
|
—
|
|
|
66.6
|
|
Non-GAAP
gross profit
|
$
|
283.4
|
|
|
$
|
239.8
|
|
|
$
|
1,061.9
|
|
Percent of
revenues
|
27.7
|
%
|
|
29.3
|
%
|
|
28.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
|
76.0
|
|
|
$
|
63.3
|
|
|
$
|
292.8
|
|
Adjustments:
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
9.2
|
|
|
6.1
|
|
|
26.5
|
|
Expenses related to
IMI acquisition
|
—
|
|
|
—
|
|
|
66.8
|
|
Gain from changes in
holdings
|
(1.2)
|
|
|
—
|
|
|
(45.4)
|
|
Non-GAAP operating
income
|
$
|
84.0
|
|
|
$
|
69.4
|
|
|
$
|
340.7
|
|
Percent of
revenues
|
8.2
|
%
|
|
8.5
|
%
|
|
9.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to Elbit Systems' shareholders
|
$
|
50.5
|
|
|
$
|
49.6
|
|
|
$
|
206.7
|
|
Adjustments:
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
9.2
|
|
|
6.1
|
|
|
26.5
|
|
Expenses related to
IMI acquisition
|
—
|
|
|
—
|
|
|
66.8
|
|
Impairment of
investment
|
—
|
|
|
—
|
|
|
17.6
|
|
Exchange rate
differences (*)
|
8.5
|
|
|
0.2
|
|
|
3.4
|
|
Gain from changes in
holdings
|
(1.2)
|
|
|
—
|
|
|
(45.4)
|
|
Related tax
benefits
|
(1.2)
|
|
|
(0.8)
|
|
|
(8.1)
|
|
Non-GAAP net
income attributable to Elbit Systems' shareholders
|
$
|
65.8
|
|
|
$
|
55.1
|
|
|
$
|
267.5
|
|
Percent of
revenues
|
6.4
|
%
|
|
6.7
|
%
|
|
7.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
EPS
|
$
|
1.18
|
|
|
$
|
1.16
|
|
|
$
|
4.84
|
|
Adjustments,
net
|
0.36
|
|
|
0.13
|
|
|
1.42
|
|
Non-GAAP diluted
net EPS
|
$
|
1.54
|
|
|
$
|
1.29
|
|
|
$
|
6.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) Exchange
rate differences in the first quarter of 2019 included
exchange rate differences of $ 9.3 million on lease contracts as a
result of the implementation of ASC 842, effective as of January 1,
2019, as well as other assets and liabilities denominated in non
U.S. dollars.
|
Recent Events:
On March 27, 2019, the
Company announced that it was awarded an approximately
$125 million (approximately
NIS 460 million) contract from the
Israeli Ministry of Defense to supply fully automatic
self-propelled howitzer gun systems to the Israeli Defense Forces.
The contract, which also includes the supply of training
simulators, will be performed over a 12-year period.
On April 5, 2019, the
Company announced that its U.S. subsidiary, Elbit Systems of
America, LLC, signed a definitive agreement with Harris Corporation
("Harris") for the acquisition of Harris' Night Vision business for
a purchase price of $350
million. The transaction is conditioned on completion
of Harris' proposed merger with L3 Technologies, Inc, as well as
customary closing conditions, including receipt of regulatory
approvals.
On April 9, 2019, the
Company announced that it obtained the commitment of several
institutional investors in Israel
to purchase 1,408,921 ordinary shares of the Company, par value 1.0
New Israeli Shekel ("NIS") per share (the "Offered Shares"), at a
purchase price per Offered Share of approximately NIS 472 (approximately $132 million), for gross proceeds of
approximately NIS 665 million
(approximately $186 million). The
Offered Shares were held by the Company as treasury shares.
On April 11, 2019, the
Company announced that it was awarded an approximately $30 million contract to supply STYLET, a precise
Guided Mortar Munition to a country in Asia-Pacific. The contract will be performed
over a two-year period.
On May 26, 2019, the
Company announced that it was awarded a $127
million contract to supply vehicular tactical radio systems
to the Army of a country in South
Asia. The contract will be performed over a three-year
period.
Dividend:
The Board of Directors declared a dividend of $0.44 per share for the first quarter of 2019.
The dividend's record date is June 7,
2019. The dividend will be paid from income generated as
Preferred Income (as defined under Israel tax laws), on June 24, 2019, net of taxes and levies, at the
rate of 20%.
Conference Call:
The Company will be hosting a conference call on Tuesday, May 28, 2019 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: 0-800-917-5108
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 +972-3-925-5925 (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, radios
and munitions. 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:
+972-772946663
j.gaspar@elbitsystems.com
David Vaaknin,
VP, Head of Corporate Communications
Tel:
+972-772946691
david.vaaknin@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)
|
|
|
|
|
|
March 31,
2019
|
|
December 31,
2018
|
|
Unaudited
|
|
Audited
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
184,659
|
|
|
$
|
208,479
|
|
Short-term bank
deposits and restricted deposits
|
12,003
|
|
|
16,447
|
|
Premises
evacuation
|
334,125
|
|
|
—
|
|
Trade and unbilled
receivables and contract assets, net
|
1,686,862
|
|
|
1,712,915
|
|
Other receivables and
prepaid expenses
|
194,039
|
|
|
199,148
|
|
Inventories,
net
|
1,214,498
|
|
|
1,141,996
|
|
Total current
assets
|
3,626,186
|
|
|
3,278,985
|
|
|
|
|
|
Investments in
affiliated companies and partnerships and other
companies
|
196,481
|
|
|
196,180
|
|
Long-term trade and
unbilled receivables and contract assets
|
255,284
|
|
|
297,145
|
|
Premises
evacuation
|
39,231
|
|
|
365,436
|
|
Long-term bank
deposits and other receivables
|
44,324
|
|
|
42,962
|
|
Deferred income
taxes, net
|
43,220
|
|
|
42,804
|
|
Severance pay
fund
|
295,347
|
|
|
278,732
|
|
|
873,887
|
|
|
1,223,259
|
|
|
|
|
|
Operating lease right
of use assets
|
359,652
|
|
|
—
|
|
Property, plant and
equipment, net
|
695,514
|
|
|
686,620
|
|
Goodwill and other
intangible assets, net
|
1,285,659
|
|
|
1,261,921
|
|
Total
assets
|
$
|
6,840,898
|
|
|
$
|
6,450,785
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Short-term bank
credit and loans
|
$
|
167,841
|
|
|
$
|
208,821
|
|
Current maturities of
long-term loans and Series A Notes
|
405,059
|
|
|
62,546
|
|
Operating lease
liabilities
|
55,758
|
|
|
—
|
|
Trade
payables
|
708,791
|
|
|
776,100
|
|
Other payables and
accrued expenses
|
1,103,404
|
|
|
1,081,992
|
|
Contract
liabilities
|
850,592
|
|
|
780,994
|
|
|
3,291,445
|
|
|
2,910,453
|
|
|
|
|
|
Long-term loans, net
of current maturities
|
127,346
|
|
|
467,649
|
|
Series A Notes, net
of current maturities
|
58,498
|
|
|
56,303
|
|
Employee benefit
liabilities
|
762,006
|
|
|
736,798
|
|
Deferred income taxes
and tax liabilities, net
|
83,738
|
|
|
78,677
|
|
Operating lease
liabilities
|
310,234
|
|
|
—
|
|
Contract
liabilities
|
118,561
|
|
|
175,890
|
|
Other long-term
liabilities
|
182,759
|
|
|
170,607
|
|
|
1,643,142
|
|
|
1,685,924
|
|
|
|
|
|
Elbit Systems Ltd.'s
equity
|
1,883,856
|
|
|
1,832,453
|
|
Non-controlling
interests
|
22,455
|
|
|
21,955
|
|
Total
equity
|
1,906,311
|
|
|
1,854,408
|
|
Total liabilities
and equity
|
$
|
6,840,898
|
|
|
$
|
6,450,785
|
|
ELBIT SYSTEMS
LTD.
CONSOLIDATED STATEMENTS OF INCOME (In thousands of US
Dollars, except for share and per share amount)
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2018
|
|
Unaudited
|
|
Audited
|
Revenues
|
$
|
1,021,723
|
|
|
$
|
818,528
|
|
|
$
|
3,683,684
|
|
Cost of
revenues
|
744,101
|
|
|
583,104
|
|
|
2,707,505
|
|
Gross
profit
|
277,622
|
|
|
235,424
|
|
|
976,179
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Research and
development, net
|
77,354
|
|
|
68,185
|
|
|
287,352
|
|
Marketing and
selling, net
|
71,832
|
|
|
68,168
|
|
|
281,014
|
|
General and
administrative, net
|
53,640
|
|
|
35,740
|
|
|
160,348
|
|
Other operating
income, net
|
(1,234)
|
|
|
—
|
|
|
(45,367)
|
|
Total operating
expenses
|
201,592
|
|
|
172,093
|
|
|
683,347
|
|
Operating
income
|
76,030
|
|
|
63,331
|
|
|
292,832
|
|
|
|
|
|
|
|
Financial expenses,
net(*)
|
(13,925)
|
|
|
(10,248)
|
|
|
(44,061)
|
|
Other (expenses)
income, net
|
(3,430)
|
|
|
22
|
|
|
(11,449)
|
|
Income before income
taxes
|
58,675
|
|
|
53,105
|
|
|
237,322
|
|
|
|
|
|
|
|
Taxes on
income
|
(10,099)
|
|
|
(6,362)
|
|
|
(26,445)
|
|
|
48,576
|
|
|
46,743
|
|
|
210,877
|
|
|
|
|
|
|
|
Equity in net
earnings (losses) of affiliated companies and
partnerships
|
2,247
|
|
|
3,134
|
|
|
(2,222)
|
|
Net income
|
$
|
50,823
|
|
|
$
|
49,877
|
|
|
$
|
208,655
|
|
Less: net income
attributable to non-controlling interests
|
(366)
|
|
|
(243)
|
|
|
(1,917)
|
|
Net income
attributable to Elbit Systems Ltd.'s shareholders
|
$
|
50,457
|
|
|
$
|
49,634
|
|
|
$
|
206,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Elbit Systems Ltd.'s shareholders:
|
|
|
|
|
Basic net earnings
per share
|
$
|
1.18
|
|
|
$
|
1.16
|
|
|
$
|
4.84
|
|
Diluted net earnings
per share
|
$
|
1.18
|
|
|
$
|
1.16
|
|
|
$
|
4.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares (in thousands)
|
|
|
|
|
|
Shares used in
computation of basic earnings per share
|
42,753
|
|
|
42,751
|
|
|
42,753
|
|
Shares used in
computation of diluted earnings per share
|
42,756
|
|
|
42,753
|
|
|
42,753
|
|
|
|
|
|
|
|
|
|
|
(*) Financial
expenses in the first quarter of 2019 included exchange rate
differences of $9.3 million on lease contracts as a result of the
implementation of ASC 842.
|
ELBIT SYSTEMS
LTD.
CONSOLIDATED STATEMENTS OF CASH FLOW (In thousands of US
dollars)
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2018
|
|
Unaudited
|
|
Audited
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net
income
|
$
|
50,823
|
|
|
$
|
49,877
|
|
|
$
|
208,655
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
33,206
|
|
|
27,766
|
|
|
118,205
|
|
Adjustment to fair
value investment
|
—
|
|
|
—
|
|
|
13,334
|
|
Stock-based
compensation
|
1,090
|
|
|
—
|
|
|
1,387
|
|
Amortization of Series
A Notes premium and related issuance costs, net
|
(23)
|
|
|
(23)
|
|
|
(92)
|
|
Deferred income taxes
and reserve, net
|
4,072
|
|
|
2,612
|
|
|
13,724
|
|
Loss (gain) on sale of
property, plant and equipment
|
(459)
|
|
|
(37)
|
|
|
2,080
|
|
Loss (gain) on sale and
revaluation of investments
|
116
|
|
|
620
|
|
|
(41,822)
|
|
Equity in net earnings
of affiliated companies and partnerships, net of dividend received
(*)
|
(897)
|
|
|
(1,845)
|
|
|
17,929
|
|
Changes in operating
assets and liabilities, net of amounts acquired:
|
|
|
|
|
|
Decrease (increase) in
short and long-term trade and unbilled receivables and contract
assets and prepaid expenses
|
62,262
|
|
|
22,659
|
|
|
(89,099)
|
|
Increase in
inventories, net
|
(72,062)
|
|
|
(85,896)
|
|
|
(117,221)
|
|
Decrease in trade
payables, other payables and accrued expenses
|
(48,830)
|
|
|
(149,991)
|
|
|
(89,956)
|
|
Severance, pension and
termination indemnities, net
|
5,126
|
|
|
1,336
|
|
|
(31,363)
|
|
Increase (decrease) in
contract liabilities
|
12,093
|
|
|
(14,952)
|
|
|
185,898
|
|
Net cash provided by
(used in) operating activities
|
46,517
|
|
|
(147,874)
|
|
|
191,659
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Purchase of property,
plant and equipment and other assets
|
(27,140)
|
|
|
(25,267)
|
|
|
(102,301)
|
|
Acquisition of
subsidiaries and business operations
|
(5,601)
|
|
|
(4,000)
|
|
|
(504,447)
|
|
Investments in
affiliated companies and other companies
|
(1,350)
|
|
|
(350)
|
|
|
(7,538)
|
|
Deconsolidation of
subsidiary
|
—
|
|
|
—
|
|
|
(2,873)
|
|
Proceeds from sale of
property, plant and equipment
|
983
|
|
|
233
|
|
|
4,388
|
|
Investment in long-term
deposits
|
—
|
|
|
(141)
|
|
|
(183)
|
|
Proceeds from sale of
long-term deposits
|
—
|
|
|
—
|
|
|
82
|
|
Investment in
short-term deposits and marketable securities
|
(15,649)
|
|
|
(2,835)
|
|
|
(10,361)
|
|
Proceeds from sale of
short-term deposits and marketable securities
|
20,584
|
|
|
13,484
|
|
|
30,363
|
|
Net cash used in
investing activities
|
(28,173)
|
|
|
(18,876)
|
|
|
(592,870)
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Proceeds from exercise
of options
|
—
|
|
|
48
|
|
|
48
|
|
Repayment of long-term
loans
|
(893)
|
|
|
(14)
|
|
|
(775)
|
|
Proceeds from long-term
loans
|
—
|
|
|
340,000
|
|
|
342,528
|
|
Repayment of Series A
Notes
|
—
|
|
|
—
|
|
|
(55,532)
|
|
Dividends
paid
|
—
|
|
|
—
|
|
|
(75,305)
|
|
Change in short-term
bank credit and loans, net
|
(41,271)
|
|
|
(114,863)
|
|
|
242,652
|
|
Net cash (used in)
provided by financing activities
|
(42,164)
|
|
|
225,171
|
|
|
453,616
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
(23,820)
|
|
|
58,421
|
|
|
52,405
|
|
Cash and cash
equivalents at the beginning of the year
|
208,479
|
|
|
156,074
|
|
|
156,074
|
|
Cash and cash
equivalents at the end of the period
|
$
|
184,659
|
|
|
$
|
214,495
|
|
|
$
|
208,479
|
|
|
|
|
|
|
|
* Dividend
received from affiliated companies and partnerships
|
$
|
1,350
|
|
|
$
|
1,289
|
|
|
$
|
15,707
|
|
ELBIT SYSTEMS
LTD.
DISTRIBUTION OF REVENUES
|
|
Consolidated
Revenues by Areas of Operation:
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2018
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
Airborne
systems
|
368.3
|
|
|
36.1
|
|
|
311.0
|
|
|
38.0
|
|
|
1,470.1
|
|
|
39.9
|
|
C4ISR
systems
|
243.6
|
|
|
23.8
|
|
|
275.2
|
|
|
33.6
|
|
|
1,130.1
|
|
|
30.7
|
|
Land
systems
|
303.4
|
|
|
29.7
|
|
|
114.4
|
|
|
14.0
|
|
|
649.1
|
|
|
17.6
|
|
Electro-optic
systems
|
77.9
|
|
|
7.6
|
|
|
88.0
|
|
|
10.8
|
|
|
333.9
|
|
|
9.1
|
|
Other (mainly
non-defense engineering and production services)
|
28.5
|
|
|
2.8
|
|
|
29.9
|
|
|
3.6
|
|
|
100.5
|
|
|
2.7
|
|
Total
|
1,021.7
|
|
|
100.0
|
|
|
818.5
|
|
|
100.0
|
|
|
3,683.7
|
|
|
100.0
|
|
Consolidated
Revenues by Geographical Regions:
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2018
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
Israel
|
261.9
|
|
|
25.6
|
|
|
185.6
|
|
|
22.7
|
|
|
740.2
|
|
|
20.1
|
|
North
America
|
275.6
|
|
|
27.0
|
|
|
208.7
|
|
|
25.5
|
|
|
979.2
|
|
|
26.6
|
|
Europe
|
196.5
|
|
|
19.2
|
|
|
152.7
|
|
|
18.7
|
|
|
737.1
|
|
|
20.0
|
|
Asia-Pacific
|
216.6
|
|
|
21.2
|
|
|
173.6
|
|
|
21.2
|
|
|
791.8
|
|
|
21.5
|
|
Latin
America
|
31.8
|
|
|
3.1
|
|
|
40.2
|
|
|
4.9
|
|
|
192.4
|
|
|
5.2
|
|
Other
countries
|
39.3
|
|
|
3.9
|
|
|
57.7
|
|
|
7.0
|
|
|
243.0
|
|
|
6.6
|
|
Total
|
1,021.7
|
|
|
100.0
|
|
|
818.5
|
|
|
100.0
|
|
|
3,683.7
|
|
|
100.0
|
|
View original
content:http://www.prnewswire.com/news-releases/elbit-systems-reports-first-quarter-2019-results-300857186.html
SOURCE Elbit Systems Ltd