HAIFA, Israel, May 25, 2021 /PRNewswire/ -- Elbit Systems
Ltd. (the "Company") (NASDAQ: ESLT) and (TASE: ESLT),
the international high technology company, reported today its
consolidated results for the quarter ended March 31, 2021.
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 view of the Company's
business results and trends. For a description of the Company's
non-GAAP definitions see page 4 below, "Non-GAAP financial data".
Unless otherwise stated, all financial data presented is US-GAAP
financial data.
Management Comment:
Bezhalel (Butzi) Machlis, President and CEO of Elbit
Systems, commented: "Our financial results for 2021
have started well, with revenues up 4.4% over those of the first
quarter last year. Sustained demand for our products and solutions
from customers around the world led to a 9% increase in our order
backlog, reaching a record $11.8
billion. This backlog and a healthy pipeline of
opportunities provide us with good visibility and confidence in the
Company's prospects."
First quarter
2021 results:
Revenues in the first quarter of 2021 were
$1,118.3 million, as compared to
$1,071.2 million in the first quarter
of 2020.
Non-GAAP(*) gross profit amounted to
$286.2 million (25.6% of revenues) in
the first quarter of 2021, as compared to $295.4 million (27.6% of revenues) in the first
quarter of 2020. GAAP gross profit in the first quarter of
2021 was $281.3 million (25.2% of
revenues), as compared to $289.4
million (27.0% of revenues) in the first quarter of
2020.
Research and development expenses, net were
$84.3 million (7.5% of revenues) in
the first quarter of 2021, as compared to $80.4 million (7.5% of revenues) in the first
quarter of 2020.
Marketing and selling expenses, net were $51.5 million (4.6% of revenues) in the first
quarter of 2021, as compared to $70.5
million (6.6% of revenues) in the first quarter of 2020.
___________
* see page 4
General and administrative expenses, net were
$61.8 million (5.5% of revenues) in
the first quarter of 2021, as compared to $58.0 million (5.4% of revenues) in the first
quarter of 2020.
Non-GAAP(*) operating income was $92.9 million (8.3% of revenues) in the first
quarter of 2021, as compared to $90.4
million (8.4% of revenues) in the first quarter of 2020.
GAAP operating income in the first quarter of 2021 was
$83.8 million (7.5% of revenues), as
compared to $80.4 million (7.5% of
revenues) in the first quarter of 2020.
Financial expenses, net were $0.2 million in the first quarter of 2021, as
compared to $12.5 million in the
first quarter of 2020. The lower level of financial expenses in the
first quarter of 2021 was mainly a result of the weakening of
the New Israeli Shekel versus the U.S. Dollar.
Other expenses, net were $3.2
million in the first quarter of 2021, as compared to other
income, net of $1.2 million in the
first quarter of 2020. Other expenses, net in the first quarter of
2021 were mainly due to the non-service cost components of pension
plans. Other income in the first quarter of 2020 included income of
approximately $3.2 million as a
result of revaluation of an investment in a subsidiary accounted
for under the fair value method.
Taxes on income were $10.8
million in the first quarter of 2021, as compared to
$8.7 million in the first quarter of
2020.
Equity in net earnings of affiliated companies and
partnerships was $3.0 million in
the first quarter of 2021, as compared to $3.1 million the first quarter of 2020.
Non-GAAP(*) net income attributable to the
Company's shareholders in the first quarter of 2021 was
$76.2 million (6.8% of revenues), as
compared to $72.0 million (6.7% of
revenues) in the first quarter of 2020. GAAP net income
attributable to the Company's shareholders in the first
quarter of 2021 was $72.5 million
(6.5% of revenues), as compared to $63.6
million (5.9% of revenues) in the first quarter of 2020.
Non GAAP(*) diluted net earnings per share
attributable to the Company's shareholders were
$1.72 for the first quarter of 2021,
as compared to $1.63 for the first
quarter of 2020. GAAP diluted earnings per share attributable to
the Company's shareholders in the first quarter of 2021 were
$1.64, as compared to $1.44 in the first quarter of 2020.
The Company's backlog of orders as of March 31,
2021 totaled $11.8 billion, as
compared to $10.8 billion as of
March 31, 2020. Approximately 68% of
the current backlog is attributable to orders from outside
Israel. Approximately 59% of the
current backlog is scheduled to be performed during 2021 and
2022.
Operating cash flow used in the three months ended
March 31, 2021 was $13.1
million, as compared to $9.9
million for the three months ended March 31, 2020.
__________
* see page 4
Impact of the COVID-19 Pandemic on the Company:
The Coronavirus disease 2019 (COVID-19) was declared a pandemic
by the World Health Organization in March
2020. COVID-19 has had significant negative impacts on the
worldwide economy, resulting in disruptions to supply chains and
financial markets, significant travel restrictions, facility
closures and shelter-in place orders in various locations. Elbit
Systems is closely monitoring the evolution of the COVID-19
pandemic and its impacts on the Company's employees, customers and
suppliers, as well as on the global economy.
As we last reported on March 24,
2021, we have been taking a number of actions to protect the
safety of our employees as well as maintain business continuity and
secure our supply chain. We also reported on a number of activities
where we are leveraging our technological capabilities to assist
hospital staffs and other first responders protecting our
communities from the impact of the pandemic. All of these actions
remain ongoing.
We have implemented a series of cost control measures to help
limit the financial impact of the pandemic on the Company, in
parallel to the measures we are taking to maintain business
continuity and deliveries to our customers. We also are working on
efficiency initiatives with a number of our suppliers. We continue
to evaluate our operations on an ongoing basis in order to adapt to
the evolving business environment.
During 2020 and the first quarter of 2021 our defense
activities, which account for most of our business, were not
materially impacted by the pandemic, although some of our
businesses experienced certain disruptions due to government
directed safety measures, travel restrictions and supply chain
delays.
We believe that as of March 31,
2021, Elbit Systems had a healthy balance sheet, adequate
levels of cash and access to credit facilities that provide
liquidity when necessary. We have given high priority to cash
management and adequate cash reserves to run the business.
The extent of the impact of COVID-19 on the Company's
performance depends on future developments including the duration
and spread of the pandemic, the measures adopted by governments to
limit the spread of the pandemic, including the roll-out of
vaccinations, and resulting actions that may be taken by our
customers and our supply chain, all of which contain uncertainties.
As noted in our annual report on Form 20-F, the preparation of
financial reports requires us to make judgments, assumptions and
estimates that affect the amounts reported. For our financial
results for the quarter ended March
31, 2021, we considered the economic impact of the COVID-19
pandemic on our critical and significant accounting estimates. The
expected impact of the COVID-19 pandemic did not have a material
effect on our judgments, assumptions and estimates reflected in the
results. However, our future results may differ materially from our
estimates. As events continue to evolve in connection with the
COVID-19 pandemic, the estimates we use in future periods may
change materially.
* 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 including
significant exchange rate differences, significant effects of
retroactive tax legislation, changes in accounting guidance,
financial transactions and other items not considered to be
part of regular ongoing business, 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,
|
|
2021
|
|
2020
|
|
2020
|
|
|
|
|
|
|
GAAP gross
profit
|
$
|
281.3
|
|
|
$
|
289.4
|
|
|
$
|
1,165.1
|
|
Adjustments:
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
4.9
|
|
|
6.0
|
|
|
22.7
|
|
Covid-19 related
expenses and write-offs
|
—
|
|
|
—
|
|
|
56.0
|
|
Impairment of
long-lived assets
|
—
|
|
|
—
|
|
|
3.4
|
|
Non-GAAP
gross profit
|
$
|
286.2
|
|
|
$
|
295.4
|
|
|
$
|
1,247.2
|
|
Percent of
revenues
|
25.6
|
%
|
|
27.6
|
%
|
|
26.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
|
83.8
|
|
|
$
|
80.4
|
|
|
$
|
325.7
|
|
Adjustments:
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
9.1
|
|
|
10.0
|
|
|
39.4
|
|
Covid-19 related
expenses and write-offs
|
—
|
|
|
—
|
|
|
56.6
|
|
Impairment of
long-lived assets
|
—
|
|
|
—
|
|
|
3.4
|
|
Capital
gain
|
—
|
|
|
—
|
|
|
(35.0)
|
|
Non-GAAP operating
income
|
$
|
92.9
|
|
|
$
|
90.4
|
|
|
$
|
390.1
|
|
Percent of
revenues
|
8.3
|
%
|
|
8.4
|
%
|
|
8.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to Elbit Systems' shareholders
|
$
|
72.5
|
|
|
$
|
63.6
|
|
|
$
|
237.7
|
|
Adjustments:
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
9.1
|
|
|
10.0
|
|
|
39.4
|
|
Covid-19 related
expenses and write-offs
|
—
|
|
|
—
|
|
|
56.6
|
|
Capital
gain
|
—
|
|
|
—
|
|
|
(35.0)
|
|
Impairment of
investments and long-lived assets
|
—
|
|
|
—
|
|
|
7.9
|
|
Revaluation of
investment measured under fair value method
|
—
|
|
|
(3.2)
|
|
|
(20.8)
|
|
Non-operating foreign
exchange (gains) losses
|
(4.2)
|
|
|
2.9
|
|
|
33.4
|
|
Tax effect and other
tax items, net
|
(1.2)
|
|
|
(1.3)
|
|
|
(0.7)
|
|
Non-GAAP net
income attributable to Elbit Systems' shareholders
|
$
|
76.2
|
|
|
$
|
72.0
|
|
|
$
|
318.5
|
|
Percent of
revenues
|
6.8
|
%
|
|
6.7
|
%
|
|
6.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
EPS
|
$
|
1.64
|
|
|
$
|
1.44
|
|
|
$
|
5.38
|
|
Adjustments,
net
|
0.08
|
|
|
0.19
|
|
|
1.82
|
|
Non-GAAP diluted
net EPS
|
$
|
1.72
|
|
|
$
|
1.63
|
|
|
$
|
7.20
|
|
Recent Events:
On April 1, 2021, the
Company announced the acquisition of BAE Systems Rokar
International Ltd. ("Rokar") from BAE Systems, Inc., the U.S.
headquartered subsidiary of BAE Systems plc, for approximately
$31 million net of any cash in Rokar.
Located in Jerusalem, Israel,
Rokar specializes in the development, manufacture, integration and
support of high-end GPS receivers and guidance systems for advanced
defense applications.
On April 6, 2021, the
Company announced, further to the Company's announcement of
December 23, 2020, that its U.S.
subsidiary, Elbit Systems of America, LLC ("Elbit Systems of
America"), completed the acquisition of Sparton Corporation from an
affiliate of Cerberus Capital Management, L.P. for a purchase price
of $380 million. The closing followed
receipt of all the required approvals, including receipt of U.S.
Government and regulatory approvals.
On April 8, 2021, the
Company announced that at its Extraordinary General Meeting of
Shareholders held on April 7, 2021 at
the Company's offices in Haifa,
the proposed resolutions described in the Proxy Statement to the
Shareholders dated March 3, 2021 (the
"Proxy Statement") and detailed hereunder were approved by the
respective required majority:
1. to approve the amended compensation policy of the Company,
substantially in the form attached as Exhibit A to the Proxy
Statement;
2. to approve the amended employment agreement of the Company's
President and Chief Executive Officer, Mr. Bezhalel Machlis;
3. to approve the provision of exemption letters, substantially
in the form attached as Exhibit B to the Proxy Statement (the
"Exemption Letters"), to Mr. Bezhalel Machlis, Mr. Michael Federmann and Mr. David Federmann; and
4. to approve the provision of Exemption Letters to the
Company's current and future directors who are not direct or
indirect controlling shareholders of the Company or relatives
thereof.
On April 18, 2021, the
Company announced, further to the Company's announcement of
January 5, 2021, that it was awarded
a contract valued at approximately $1.65
billion (approximately €1.375 billion) for the establishment
and operation of the International Flight Training Center of the
Hellenic Air Force, as part of an agreement between the Israeli
Ministry of Defense and the Hellenic Ministry of National Defense.
The contract will be performed over a period of approximately 20
years and will include price indexation.
On April 20, 2021, the
Company announced that Elbit Systems of America was awarded a
delivery order valued at approximately $41
million for the supply of night vision systems and
various spare components to the U.S. Marine Corps. The order will
be executed in Roanoke, Virginia
and will be supplied through March
2022.
Dividend:
The Board of Directors declared a dividend of $0.44 per share for the first quarter of 2021.
The dividend's record date is June 7,
2021. The dividend will be paid from income generated as
Preferred Income (as defined under Israeli tax laws), on
June 21, 2021, net of taxes, at the
rate of 20%.
Conference Call:
The Company will be hosting a conference call on Tuesday, May 25, 2021 at 9:00 a.m. Eastern Time. On the call, the
Company's 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:
1-888-281-1167
CANADA
Dial-in Numbers: 1-866-485-2399
ISRAEL Dial-in Number:
03-918-0644
INTERNATIONAL Dial-in Number:
+972-3-918-0644
at 9:00am Eastern
Time; 6:00am Pacific Time;
4:00pm Israel Time
The conference call will also be broadcast live on Elbit
Systems' website at
https://www.elbitsystems.com/investor-relations/. 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 +972-3-925-5900 (Israel and International).
About Elbit Systems
Elbit Systems Ltd. is an international high technology company
engaged in a wide range of defense, homeland security and
commercial programs throughout the world. The Company, which
includes Elbit Systems and its subsidiaries, operates in the areas
of aerospace, land and naval systems, command, control,
communications, computers, intelligence surveillance and
reconnaissance ("C4ISR"), unmanned aircraft systems, advanced
electro-optics, electro-optic space systems, EW suites, signal
intelligence systems, data links and communications systems,
radios, cyber-based systems and munitions. The Company also focuses
on the upgrading of existing platforms, developing new technologies
for defense, homeland security and commercial applications and
providing a range of support services, including training and
simulation systems.
For additional information, visit: https://elbitsystems.com/,
follow us on Twitter or visit our official Facebook, Youtube and
LinkedIn Channels.
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:
+972-77-2946663
j.gaspar@elbitsystems.com
Rami Myerson,
Director, Investor Relations
Tel:
+972-77-2948984
rami.myerson@elbitsystems.com
David Vaaknin,
VP, Head of Corporate Communications
Tel:
+972-77-2946691
david.vaaknin@elbitsystems.com
|
IR
Contact:
Ehud
Helft
Kenny
Green
GK Investor
Relations
Tel:
1-646-201-9246
elbitsystems@gkir.com
|
This press release may contain forward–looking statements
(within the meaning of Section 27A of the Securities Act of 1933,
as amended, Section 21E of the Securities Exchange Act of 1934, as
amended and the Israeli Securities Law, 1968) regarding Elbit
Systems Ltd. and/or its subsidiaries (collectively the Company), to
the extent such statements do not relate to historical or current
facts. Forward-looking statements are based on management's current
expectations, estimates, projections and assumptions about future
events. 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, uncertainties and
assumptions about the Company, which are difficult to predict,
including projections of the Company's future financial results,
its anticipated growth strategies and anticipated trends in its
business. 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; changes in global health and
macro-economic conditions; differences in anticipated and actual
program performance, including the ability to perform under
long-term fixed-price contracts; changes in the competitive
environment; 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. Although the Company
believes the expectations reflected in the forward-looking
statements contained herein are reasonable, it cannot guarantee
future results, level of activity, performance or achievements.
Moreover, neither the Company nor any other person assumes
responsibility for the accuracy and completeness of any of these
forward-looking statements. 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 Dollar)
|
March 31,
2021
|
|
December 31,
2020
|
|
Unaudited
|
|
Audited
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
206,959
|
|
|
$
|
278,794
|
|
Short-term bank
deposits
|
1,491
|
|
|
1,524
|
|
Trade and unbilled
receivables and contract assets, net
|
2,475,337
|
|
|
2,519,562
|
|
Other receivables and
prepaid expenses
|
174,086
|
|
|
156,330
|
|
Inventories,
net
|
1,436,333
|
|
|
1,316,688
|
|
Total current
assets
|
4,294,206
|
|
|
4,272,898
|
|
|
|
|
|
Investments in
affiliated companies, partnerships and other companies
|
184,436
|
|
|
184,338
|
|
Long-term trade and
unbilled receivables and contract assets
|
317,468
|
|
|
312,097
|
|
Long-term bank
deposits and other receivables
|
63,077
|
|
|
69,269
|
|
Deferred income
taxes, net
|
120,122
|
|
|
118,513
|
|
Severance pay
fund
|
283,150
|
|
|
293,716
|
|
|
968,253
|
|
|
977,933
|
|
|
|
|
|
Operating lease right
of use assets
|
418,950
|
|
|
423,088
|
|
Property, plant and
equipment, net
|
785,722
|
|
|
786,972
|
|
Goodwill and other
intangible assets, net
|
1,566,582
|
|
|
1,597,006
|
|
Total
assets
|
$
|
8,033,713
|
|
|
$
|
8,057,897
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Short-term bank
credit and loans
|
$
|
367,893
|
|
|
$
|
312,993
|
|
Current maturities of
long-term loans
|
17,827
|
|
|
17,972
|
|
Operating lease
liability
|
64,813
|
|
|
65,520
|
|
Trade
payables
|
927,429
|
|
|
1,007,237
|
|
Other payables and
accrued expenses
|
1,134,522
|
|
|
1,218,273
|
|
Contract liabilities
(customer advances)
|
1,094,879
|
|
|
1,000,159
|
|
|
3,607,363
|
|
|
3,622,154
|
|
|
|
|
|
Long-term loans, net
of current maturities
|
400,361
|
|
|
408,820
|
|
Employee benefit
liabilities
|
889,697
|
|
|
914,364
|
|
Deferred income taxes
and tax liabilities, net
|
130,635
|
|
|
132,442
|
|
Contract liabilities
(customer advances)
|
150,969
|
|
|
169,073
|
|
Operating lease
liability
|
380,373
|
|
|
397,936
|
|
Other long-term
liabilities
|
178,579
|
|
|
181,741
|
|
|
2,130,614
|
|
|
2,204,376
|
|
|
|
|
|
Elbit Systems Ltd.'s
equity
|
2,282,666
|
|
|
2,218,154
|
|
Non-controlling
interests
|
13,070
|
|
|
13,213
|
|
Total
equity
|
2,295,736
|
|
|
2,231,367
|
|
Total liabilities
and equity
|
$
|
8,033,713
|
|
|
$
|
8,057,897
|
|
ELBIT SYSTEMS
LTD.
CONSOLIDATED STATEMENTS OF INCOME
(In
thousands of US Dollars, except for share and per share
amounts)
|
Three Months Ended
March 31,
|
|
Year Ended
December 31,
|
|
2021
|
|
2020
|
|
2020
|
|
Unaudited
|
|
Audited
|
Revenues
|
$
|
1,118,279
|
|
|
$
|
1,071,223
|
|
|
$
|
4,662,572
|
|
Cost of
revenues
|
836,939
|
|
|
781,846
|
|
|
3,497,465
|
|
Gross
profit
|
281,340
|
|
|
289,377
|
|
|
1,165,107
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Research and
development, net
|
84,258
|
|
|
80,436
|
|
|
359,745
|
|
Marketing and
selling, net
|
51,484
|
|
|
70,544
|
|
|
290,703
|
|
General and
administrative, net
|
61,759
|
|
|
57,995
|
|
|
223,935
|
|
Other operating
income, net
|
—
|
|
|
—
|
|
|
(34,963)
|
|
Total operating
expenses
|
197,501
|
|
|
208,975
|
|
|
839,420
|
|
|
|
|
|
|
|
Operating
income
|
83,839
|
|
|
80,402
|
|
|
325,687
|
|
|
|
|
|
|
|
Financial expenses,
net
|
(222)
|
|
|
(12,520)
|
|
|
(71,270)
|
|
Other income
(expense), net
|
(3,246)
|
|
|
1,230
|
|
|
7,408
|
|
Income before income
taxes
|
80,371
|
|
|
69,112
|
|
|
261,825
|
|
Taxes on
income
|
(10,802)
|
|
|
(8,713)
|
|
|
(36,443)
|
|
|
69,569
|
|
|
60,399
|
|
|
225,382
|
|
Equity in net
earnings of affiliated companies and partnerships
|
3,028
|
|
|
3,146
|
|
|
12,604
|
|
Net
income
|
$
|
72,597
|
|
|
$
|
63,545
|
|
|
$
|
237,986
|
|
|
|
|
|
|
|
Less: net income
attributable to non-controlling interests
|
(67)
|
|
|
19
|
|
|
(328)
|
|
Net income
attributable to Elbit Systems Ltd.'s shareholders
|
$
|
72,530
|
|
|
$
|
63,564
|
|
|
$
|
237,658
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Elbit Systems Ltd.'s shareholders:
|
|
|
|
|
Basic net earnings
per share
|
$
|
1.64
|
|
|
$
|
1.44
|
|
|
$
|
5.38
|
|
Diluted net earnings
per share
|
$
|
1.64
|
|
|
$
|
1.44
|
|
|
$
|
5.38
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computation of:
|
|
|
|
|
|
Basic earnings per
share (in thousands)
|
44,200
|
|
|
44,198
|
|
|
44,198
|
|
Diluted earnings per
share (in thousands)
|
44,247
|
|
|
44,204
|
|
|
44,215
|
|
ELBIT SYSTEMS LTD.
CONSOLIDATED
STATEMENTS OF CASH FLOW
(In thousands of US dollars)
|
Three Months
Ended March 31,
|
|
Year Ended
December 31,
|
|
2021
|
|
2020
|
|
2020
|
|
Unaudited
|
|
Audited
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net income
|
$
|
72,597
|
|
|
$
|
63,545
|
|
|
$
|
237,986
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
34,581
|
|
|
35,400
|
|
|
144,420
|
|
Write-off
impairment
|
—
|
|
|
—
|
|
|
7,932
|
|
Stock-based
compensation
|
1,021
|
|
|
1,021
|
|
|
4,086
|
|
Amortization of Series
A Notes discount (premium) and related issuance costs,
net
|
—
|
|
|
(23)
|
|
|
(46)
|
|
Deferred income taxes
and reserve, net
|
1,460
|
|
|
1,289
|
|
|
(5,345)
|
|
Gain on sale of
property, plant and equipment
|
(9)
|
|
|
(240)
|
|
|
(34,926)
|
|
Loss (gain) on sale of
investment, remeasurement of investment held under fair value
method
and deconsolidation of subsidiary
|
370
|
|
|
(2,759)
|
|
|
(23,572)
|
|
Equity in net
(earnings) losses of affiliated companies and partnerships, net of
dividend
received(*)
|
545
|
|
|
(2,200)
|
|
|
(7,853)
|
|
Changes in operating
assets and liabilities, net of amounts acquired:
|
|
|
|
|
|
Decrease (increase) in
short and long-term trade and unbilled receivables and prepaid
expenses
|
86,098
|
|
|
(29,869)
|
|
|
(508,057)
|
|
Increase in
inventories, net
|
(119,645)
|
|
|
(77,655)
|
|
|
(69,762)
|
|
Increase (decrease) in
trade payables and other payables and accrued expenses
|
(156,370)
|
|
|
(68,059)
|
|
|
143,847
|
|
Severance, pension and
termination indemnities, net
|
(10,350)
|
|
|
(20,049)
|
|
|
31,394
|
|
Increase in contract
liabilities (customer advances)
|
76,616
|
|
|
89,712
|
|
|
358,730
|
|
Net cash provided by
(used for) operating activities
|
(13,086)
|
|
|
(9,887)
|
|
|
278,834
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Purchase of property,
plant and equipment and other assets
|
(32,804)
|
|
|
(32,317)
|
|
|
(132,210)
|
|
Acquisition of
subsidiaries
|
(60,560)
|
|
|
—
|
|
|
218
|
|
Investments in
affiliated companies and other companies
|
(370)
|
|
|
(471)
|
|
|
(8,212)
|
|
Proceeds from sale of
property, plant and equipment
|
34
|
|
|
1,330
|
|
|
71,933
|
|
Proceeds from sale of
investment
|
—
|
|
|
—
|
|
|
44,200
|
|
Investment in long-term
deposits, net
|
98
|
|
|
(160)
|
|
|
221
|
|
Investment in
short-term deposits, net
|
39
|
|
|
1,059
|
|
|
983
|
|
Net cash used in
investing activities
|
(93,563)
|
|
|
(30,559)
|
|
|
(22,867)
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Issuance of
shares
|
1
|
|
|
—
|
|
|
—
|
|
Repayment of long-term
loans
|
(640)
|
|
|
(105,625)
|
|
|
(370,367)
|
|
Proceeds from long-term
loans
|
—
|
|
|
—
|
|
|
201,551
|
|
Repayment of Series A
Notes
|
—
|
|
|
—
|
|
|
(55,532)
|
|
Dividends
paid
|
(19,447)
|
|
|
(19,946)
|
|
|
(78,194)
|
|
Change in short-term
bank credit and loans, net
|
54,900
|
|
|
629,302
|
|
|
104,309
|
|
Net cash provided by
(used for) financing activities
|
34,814
|
|
|
503,731
|
|
|
(198,233)
|
|
NET INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
(71,835)
|
|
|
463,285
|
|
|
57,734
|
|
CASH AND CASH
EQUIVALENTS AT THE BEGINNING OF THE YEAR
|
278,794
|
|
|
221,060
|
|
|
221,060
|
|
CASH AND CASH
EQUIVALENTS AT THE END OF THE PERIOD
|
$
|
206,959
|
|
|
$
|
684,345
|
|
|
$
|
278,794
|
|
|
|
|
|
|
|
* Dividend received
from affiliated companies and partnerships
|
$
|
3,573
|
|
|
$
|
946
|
|
|
$
|
9,151
|
|
ELBIT SYSTEMS LTD.
DISTRIBUTION OF
REVENUES
Consolidated Revenues by Areas of Operation:
|
Three Months
Ended
|
|
Year
Ended
|
|
March
31,
|
|
December
31,
|
|
2021
|
|
2020
|
|
2020
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
Airborne
systems
|
$
|
411.2
|
|
|
36.8
|
|
|
$
|
387.6
|
|
|
36.2
|
|
|
$
|
1,650.4
|
|
|
35.4
|
|
Land
systems
|
300.1
|
|
|
26.8
|
|
|
298.2
|
|
|
27.8
|
|
|
1,258.9
|
|
|
27.0
|
|
C4ISR
systems
|
260.0
|
|
|
23.2
|
|
|
240.9
|
|
|
22.5
|
|
|
1,145.7
|
|
|
24.6
|
|
Electro-optic
systems
|
97.2
|
|
|
8.7
|
|
|
119.4
|
|
|
11.2
|
|
|
475.9
|
|
|
10.2
|
|
Other (mainly
non-defense
engineering and production services)
|
49.8
|
|
|
4.5
|
|
|
25.1
|
|
|
2.3
|
|
|
131.7
|
|
|
2.8
|
|
Total
|
$
|
1,118.3
|
|
|
100.0
|
|
|
$
|
1,071.2
|
|
|
100.0
|
|
|
$
|
4,662.6
|
|
|
100.0
|
|
Consolidated Revenues by Geographical Regions:
|
Three Months
Ended
|
|
Year
Ended
|
|
March
31,
|
|
December
31,
|
|
2021
|
|
2020
|
|
2020
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
Israel
|
$
|
284.0
|
|
|
25.4
|
|
|
$
|
246.0
|
|
|
23.0
|
|
|
$
|
1,106.4
|
|
|
23.7
|
|
North
America
|
349.9
|
|
|
31.3
|
|
|
366.8
|
|
|
34.2
|
|
|
1,500.6
|
|
|
32.2
|
|
Europe
|
185.5
|
|
|
16.6
|
|
|
184.8
|
|
|
17.3
|
|
|
819.0
|
|
|
17.6
|
|
Asia-Pacific
|
229.5
|
|
|
20.5
|
|
|
210.0
|
|
|
19.6
|
|
|
961.8
|
|
|
20.6
|
|
Latin
America
|
35.3
|
|
|
3.2
|
|
|
32.6
|
|
|
3.0
|
|
|
140.1
|
|
|
3.0
|
|
Other
countries
|
34.1
|
|
|
3.0
|
|
|
31.0
|
|
|
2.9
|
|
|
134.7
|
|
|
2.9
|
|
Total
|
$
|
1,118.3
|
|
|
100.0
|
|
|
$
|
1,071.2
|
|
|
100.0
|
|
|
$
|
4,662.6
|
|
|
100.0
|
|
View original
content:http://www.prnewswire.com/news-releases/elbit-systems-reports-first-quarter-2021-results-301298357.html
SOURCE Elbit Systems Ltd