HAIFA, Israel, Aug. 12, 2021 /PRNewswire/ -- Elbit Systems
Ltd. (the "Company") (NASDAQ: ESLT) (TASE: ESLT), the
international high technology company, reported today its
consolidated results for the quarter ended June 30, 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 second quarter results
included a 21% growth in revenues, underscoring our diversified
portfolio of technologies and broad global footprint. I am also
pleased by the improvement in profitability and cash generation.
Demand for our systems and services from customers around the world
supported the 26% growth in our backlog to $13.6 billion. The diversification of our growth
across areas of operation and geographies reflects successful
implementation of our strategy and provides us with confidence in
the Company's future".
Acquisition of Sparton
On April 6, 2021, we completed the
acquisition of Sparton Corporation ("Sparton") for a purchase price
of approximately $380 million.
Headquartered in De Leon Springs, Florida, Sparton is a premier developer,
producer and supplier of systems supporting Undersea Warfare for
the U.S. Navy and allied military forces. The financial results of
Sparton were included in our consolidated reports commencing the
date of the acquisition.
Second quarter
2021 results:
Revenues in the second quarter of 2021 were
$1,302.4 million, as compared to
$1,079.4 million in the second
quarter of 2020. A major part of the growth was organic, in
addition to the contribution of Sparton.
Non-GAAP(*) gross profit amounted to
$346.6 million (26.6% of revenues) in
the second quarter of 2021, as compared to $286.4 million (26.5% of revenues) in the second
quarter of 2020. GAAP gross profit in the second quarter of
2021 was $339.2 million (26.0% of
revenues), as compared to $280.5
million (26.0% of revenues) in the second quarter of
2020.
Research and development expenses, net were
$95.4 million (7.3% of revenues) in
the second quarter of 2021, as compared to $79.0 million (7.3% of revenues) in the second
quarter of 2020.
Marketing and selling expenses, net were $75.4 million (5.8% of revenues) in the second
quarter of 2021, as compared to $67.4
million (6.2% of revenues) in the second quarter of
2020.
General and administrative expenses, net were
$65.9 million (5.1% of revenues) in
the second quarter of 2021, as compared to $52.0 million (4.8% of revenues) in the second
quarter of 2020.
Other operating income, net was $14.7 million in the second quarter of 2021, as
compared to $35.0 million in the
second quarter of 2020. Other operating income was mainly a result
of gains from sale of buildings.
Non-GAAP(*) operating income was $114.9 million (8.8% of revenues) in the second
quarter of 2021, as compared to $92.7
million (8.6% of revenues) in the second quarter of 2020.
GAAP operating income in the second quarter of 2021 was
$117.1 million (9.0%of revenues), as
compared to $117.1 million (10.9% of
revenues) in the second quarter of 2020.
Financial expenses, net were $7.1 million in the second quarter of 2021, as
compared to $16.6 million in the
second quarter of 2020. The lower level of financial expenses in
the second quarter of 2021 was mainly a result of gains from
changes in fair value of financial assets and liabilities.
Other expenses, net were $1.4
million in the second quarter of 2021, as compared to other
income, net of $13.0 million in the
second quarter of 2020. Other income, net in the second quarter of
2020 included income of approximately $15.4
million as a result of revaluation and capital gain related
to the sale of shares in a subsidiary in Israel.
Taxes on income were $20.1
million in the second quarter of 2021, as compared to
$23.6 million in the second quarter
of 2020.
Equity in net earnings of affiliated companies and
partnerships was $13.5 million in
the second quarter of 2021, as compared to equity in net losses
of $0.4 million in the second quarter of 2020. Equity in net
earnings of affiliated companies and partnerships in the second
quarter of 2021 included a gain of approximately $10 million, which resulted from the sale of the
Company's share in an affiliated company.
Non-GAAP(*) net income attributable to the
Company's shareholders in the second quarter of 2021 was
$93.4 million (7.2% of revenues), as
compared to $68.9 million (6.4% of
revenues) in the second quarter of 2020. GAAP net income
attributable to the Company's shareholders in the second
quarter of 2021 was $101.7 million
(7.8% of revenues), as compared to $89.3
million (8.3% of revenues) in the second quarter of
2020.
___________
* see page 4
Non-GAAP(*) diluted net earnings per share
attributable to the Company's shareholders were
$2.11 for the second quarter of 2021,
as compared to $1.56 for the second
quarter of 2020. GAAP diluted earnings per share attributable to
the Company's shareholders in the second quarter of 2021 were
$2.30, as compared to $2.02 in the second quarter of 2020.
The Company's backlog of orders as of June 30,
2021 totaled $13.6 billion, as
compared to $11.8 billion as of
March 31, 2021. Approximately 72% of
the current backlog is attributable to orders from outside
Israel. Approximately 51% of the
backlog is scheduled to be performed during the remainder of 2021
and 2022.
Cash flows provided by operating activities in the
six months ended June 30, 2021 were $157.1 million, as compared to $169.3 million for the six months ended
June 30, 2020.
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 May 25,
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 half 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 June 30,
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.
___________
* see page 4
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 implementation 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 June 30,
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, except for per share amounts)
|
|
Six Months
Ended
June
30,
|
|
Three Months Ended
June
30,
|
|
Year ended
December 31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
|
620.5
|
|
|
$
|
569.9
|
|
|
$
|
339.2
|
|
|
$
|
280.5
|
|
|
$
|
1,165.1
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible
assets
|
12.3
|
|
|
11.9
|
|
|
7.4
|
|
|
5.9
|
|
|
22.7
|
|
Covid-19 related
expenses and write-offs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56.0
|
|
Impairment of
long-lived assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.4
|
|
Non-GAAP gross
profit
|
$
|
632.8
|
|
|
$
|
581.8
|
|
|
$
|
346.6
|
|
|
$
|
286.4
|
|
|
$
|
1,247.2
|
|
Percent of
revenues
|
26.1%
|
|
|
27.1%
|
|
|
26.6%
|
|
|
26.5%
|
|
|
26.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
|
201.0
|
|
|
$
|
197.5
|
|
|
$
|
117.1
|
|
|
$
|
117.1
|
|
|
$
|
325.7
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible
assets
|
21.6
|
|
|
20.6
|
|
|
12.5
|
|
|
10.6
|
|
|
39.4
|
|
Covid-19 related
expenses and write-offs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56.6
|
|
Impairment of
long-lived assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.4
|
|
Capital
gains
|
(14.7)
|
|
|
(35.0)
|
|
|
(14.7)
|
|
|
(35.0)
|
|
|
(35.0)
|
|
Non-GAAP operating
income
|
$
|
207.9
|
|
|
$
|
183.1
|
|
|
$
|
114.9
|
|
|
$
|
92.7
|
|
|
$
|
390.1
|
|
Percent of
revenues
|
8.6%
|
|
|
8.5%
|
|
|
8.8%
|
|
|
8.6%
|
|
|
8.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to Elbit
Systems' shareholders
|
$
|
174.3
|
|
|
$
|
152.9
|
|
|
$
|
101.7
|
|
|
$
|
89.3
|
|
|
$
|
237.7
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible
assets
|
21.6
|
|
|
20.6
|
|
|
12.5
|
|
|
10.6
|
|
|
39.4
|
|
Covid-19 related
expenses and write-offs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56.6
|
|
Capital
gains
|
(24.9)
|
|
|
(35.0)
|
|
|
(24.9)
|
|
|
(35.0)
|
|
|
(35.0)
|
|
Impairment of
investments and long-
lived assets
|
—
|
|
|
4.4
|
|
|
—
|
|
|
4.4
|
|
|
7.9
|
|
Revaluation of
investments measured
under fair value method
|
(1.5)
|
|
|
(18.6)
|
|
|
(1.5)
|
|
|
(15.4)
|
|
|
(20.8)
|
|
Non-operating foreign
exchange losses
|
—
|
|
|
6.8
|
|
|
4.2
|
|
|
4.0
|
|
|
33.4
|
|
Tax effect and other
tax items, net
|
0.2
|
|
|
9.7
|
|
|
1.4
|
|
|
11.0
|
|
|
(0.7)
|
|
Non-GAAP net income
attributable to
Elbit Systems' shareholders
|
$
|
169.7
|
|
|
$
|
140.8
|
|
|
$
|
93.4
|
|
|
$
|
68.9
|
|
|
$
|
318.5
|
|
Percent of
revenues
|
7.0%
|
|
|
6.5%
|
|
|
7.2%
|
|
|
6.4%
|
|
|
6.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
EPS
|
$
|
3.94
|
|
|
$
|
3.46
|
|
|
$
|
2.30
|
|
|
$
|
2.02
|
|
|
$
|
5.38
|
|
Adjustments,
net
|
(0.11)
|
|
|
(0.28)
|
|
|
(0.19)
|
|
|
(0.46)
|
|
|
1.82
|
|
Non-GAAP diluted
net EPS
|
$
|
3.83
|
|
|
$
|
3.18
|
|
|
$
|
2.11
|
|
|
$
|
1.56
|
|
|
$
|
7.20
|
|
Recent Events:
On June 2, 2021, the
Company announced that following competitive technical evaluations
it was awarded an approximately $80
million contract by a country in Asia-Pacific to supply SPECTRO™
XR multi-spectral electro-optic systems for maritime forces. The
contract will be performed over a period of four years.
On June 8, 2021, the
Company announced that its UK subsidiary, Elbit Systems UK
Limited., was awarded an approximately $16
million (approximately £11.5 million) initial contract by
the UK Ministry of Defence to provide the UK Armed Forces with XACT
Night Vision Goggles. The initial contract will be performed over
an 18-month period with the potential for additional follow-on
orders over a period of five years.
On June 10, 2021, the
Company announced that it was considering a note offering in
Israel under the Company's shelf
prospectus dated September 30, 2020
(the "Offering"), following which the Company made several
announcements in the process of the Offering. On July 5, 2021, the Company announced, further to
its announcements of June 15, 2021 of
the issuance by S&P Global Ratings Maalot Ltd. of an "ilAA" (on
local scaling) rating with a stable outlook (the "Rating") for the
potential new notes that may be issued by the Company, that the
Rating applies to the potential new notes that may be issued by the
Company in an aggregate amount of approximately NIS 2 billion (approximately $613 million) nominal value. On July 6, 2021, the Company announced in
Israel that three tenders for
classified investors were held on July 5,
2021 for the issuance of three new series of notes - Series
B, C and D, of the Company, with details of the prior undertakings
made by the classified investors. On July 7,
2021, the Company announced, following the issuance of a
shelf offering report in Israel,
of the conclusion and results of the Company's public notes
offering in Israel.
The principle amount of the Notes that were issued in the
Offering amounted to NIS 1.9 billion
($581 million), as follow:
Series B Notes - NIS 1.5
billion (approximately $459
million) that will be paid in eight equal annual
installments on June 30 of each of
the years 2022 through 2029 (inclusive) they will bear a fixed
interest rate of 1.08% per annum and will not be adjusted to any
currency or index changes.
Series C Notes - NIS 200
million (approximately $61
million) that will be paid in eight equal annual
installments on June 30 of each of
the years 2022 through 2029 (inclusive), will bear a fixed interest
rate of 2.12% per annum and will be adjusted to changes in the NIS/
U.S. Dollar currency exchange rate.
Series D Notes - NIS 200
million (approximately $61
million) that will be paid in fourteen annual installments
as follows: thirteen equal annual installments in an amount equal
to 7.14% of the nominal value of the principal on June 30 of each of the years 2022 through 2034
(inclusive) and the final annual installment in an amount equal to
7.18% of the nominal value of the principal on June 30, 2035. They will bear a fixed interest
rate of 2.67% per annum and will be adjusted to changes in the NIS/
U.S. Dollar currency exchange rate.
On June 17, 2021, the
Company announced that its U.S. subsidiary, Elbit Systems of
America, LLC ("Elbit Systems of America"), recently was awarded two
orders with an aggregate value of approximately $29 million by the U.S. Army's Program Executive
Office (PEO) Soldier under an Indefinite
Delivery/Indefinite-Quantity (ID/IQ) contract issued in 2020. The
orders will be executed from the Elbit Systems of America facility
in Roanoke, Virginia with
deliveries through September
2021.
On June 17, 2021, the
Company announced that its German subsidiary, Elbit Systems
Deutschland GmbH & Co. KG, was awarded an approximately
$23 million follow-on contract by the
Swedish Defence Material Administration for the supply of
additional Software Defined Radios for the Swedish Armed Forces.
The contract will be performed over a period of 30 months.
Dividend:
The Board of Directors declared a dividend of $0.46 per share for the second quarter of 2021.
The dividend's record date is August 30,
2021. The dividend will be paid from income generated as
Preferred Income (as defined under Israeli tax laws), on
September 13, 2021, net of
taxes.
Conference Call:
The Company will be hosting a conference call on Thursday, August 12, 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 Number:
1-866-744-5399
CANADA
Dial-in Number: 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)
|
|
June 30,
2021
|
|
December 31,
2020
|
|
Unaudited
|
|
Audited
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
211,423
|
|
|
$
|
278,794
|
|
Short-term bank
deposits
|
7,726
|
|
|
1,524
|
|
Trade and unbilled
receivables and contract assets, net
|
2,448,156
|
|
|
2,519,562
|
|
Other receivables and
prepaid expenses
|
238,898
|
|
|
156,330
|
|
Inventories,
net
|
1,547,116
|
|
|
1,316,688
|
|
Total current
assets
|
4,453,319
|
|
|
4,272,898
|
|
|
|
|
|
Investments in
affiliated companies, partnerships and other companies
|
179,335
|
|
|
184,338
|
|
Long-term trade and
unbilled receivables and contract assets
|
361,831
|
|
|
312,097
|
|
Long-term bank
deposits and other receivables
|
77,820
|
|
|
69,269
|
|
Deferred income
taxes, net
|
92,313
|
|
|
118,513
|
|
Severance pay
fund
|
291,593
|
|
|
293,716
|
|
|
1,002,892
|
|
|
977,933
|
|
|
|
|
|
Operating lease right
of use assets
|
417,358
|
|
|
423,088
|
|
Property, plant and
equipment, net
|
829,908
|
|
|
786,972
|
|
Goodwill and other
intangible assets, net
|
2,051,239
|
|
|
1,597,006
|
|
Total
assets
|
$
|
8,754,716
|
|
|
$
|
8,057,897
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Short-term bank
credit and loans
|
$
|
221,271
|
|
|
$
|
312,993
|
|
Current maturities of
long-term loans
|
281,868
|
|
|
17,972
|
|
Operating lease
liability
|
68,308
|
|
|
65,520
|
|
Trade
payables
|
925,113
|
|
|
1,007,237
|
|
Other payables and
accrued expenses
|
1,189,057
|
|
|
1,218,273
|
|
Contract
liabilities
|
1,298,504
|
|
|
1,000,159
|
|
|
3,984,121
|
|
|
3,622,154
|
|
|
|
|
|
Long-term loans, net
of current maturities
|
548,675
|
|
|
408,820
|
|
Employee benefit
liabilities
|
904,302
|
|
|
914,364
|
|
Deferred income taxes
and tax liabilities, net
|
156,961
|
|
|
132,442
|
|
Contract
liabilities
|
192,100
|
|
|
169,073
|
|
Operating lease
liability
|
382,730
|
|
|
397,936
|
|
Other long-term
liabilities
|
182,615
|
|
|
181,741
|
|
|
2,367,383
|
|
|
2,204,376
|
|
|
|
|
|
Elbit Systems Ltd.'s
equity
|
2,390,009
|
|
|
2,218,154
|
|
Non-controlling
interests
|
13,203
|
|
|
13,213
|
|
Total
equity
|
2,403,212
|
|
|
2,231,367
|
|
Total liabilities
and equity
|
$
|
8,754,716
|
|
|
$
|
8,057,897
|
|
ELBIT SYSTEMS
LTD.
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(In thousands of US
Dollars, except for share and per share amounts)
|
|
|
|
Six Months
Ended
June
30,
|
|
Three Months
Ended
June
30,
|
|
Year Ended
December 31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2020
|
|
Unaudited
|
|
Unaudited
|
|
Audited
|
Revenues
|
$
|
2,420,652
|
|
|
$
|
2,150,671
|
|
|
$
|
1,302,373
|
|
|
$
|
1,079,448
|
|
|
$
|
4,662,572
|
|
Cost of
revenues
|
1,800,110
|
|
|
1,580,787
|
|
|
963,171
|
|
|
798,940
|
|
|
3,497,465
|
|
Gross
profit
|
620,542
|
|
|
569,884
|
|
|
339,202
|
|
|
280,508
|
|
|
1,165,107
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development, net
|
179,670
|
|
|
159,401
|
|
|
95,412
|
|
|
78,965
|
|
|
359,745
|
|
Marketing and
selling, net
|
126,857
|
|
|
137,920
|
|
|
75,373
|
|
|
67,377
|
|
|
290,703
|
|
General and
administrative, net
|
127,704
|
|
|
109,995
|
|
|
65,945
|
|
|
52,000
|
|
|
223,935
|
|
Other operating
income, net
|
(14,660)
|
|
|
(34,963)
|
|
|
(14,660)
|
|
|
(34,963)
|
|
|
(34,963)
|
|
Total operating
expenses
|
419,571
|
|
|
372,353
|
|
|
222,070
|
|
|
163,379
|
|
|
839,420
|
|
Operating
income
|
200,971
|
|
|
197,531
|
|
|
117,132
|
|
|
117,129
|
|
|
325,687
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
(7,295)
|
|
|
(29,072)
|
|
|
(7,073)
|
|
|
(16,552)
|
|
|
(71,270)
|
|
Other income
(expense), net
|
(4,665)
|
|
|
14,215
|
|
|
(1,419)
|
|
|
12,985
|
|
|
7,408
|
|
Income before income
taxes
|
189,011
|
|
|
182,674
|
|
|
108,640
|
|
|
113,562
|
|
|
261,825
|
|
Taxes on
income
|
(30,893)
|
|
|
(32,350)
|
|
|
(20,091)
|
|
|
(23,637)
|
|
|
(36,443)
|
|
|
158,118
|
|
|
150,324
|
|
|
88,549
|
|
|
89,925
|
|
|
225,382
|
|
Equity in net
earnings (losses) of
affiliated companies and partnerships
|
16,491
|
|
|
2,699
|
|
|
13,463
|
|
|
(447)
|
|
|
12,604
|
|
Net
income
|
$
|
174,609
|
|
|
$
|
153,023
|
|
|
$
|
102,012
|
|
|
$
|
89,478
|
|
|
$
|
237,986
|
|
|
|
|
|
|
|
|
|
|
|
Less: net income
attributable to non-
controlling interests
|
(352)
|
|
|
(162)
|
|
|
(285)
|
|
|
(181)
|
|
|
(328)
|
|
Net income
attributable to Elbit
Systems Ltd.'s shareholders
|
$
|
174,257
|
|
|
$
|
152,861
|
|
|
$
|
101,727
|
|
|
$
|
89,297
|
|
|
$
|
237,658
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Elbit Systems
Ltd.'s shareholders:
|
|
|
|
|
|
|
|
|
Basic net earnings
per share
|
$
|
3.94
|
|
|
$
|
3.46
|
|
|
$
|
2.30
|
|
|
$
|
2.02
|
|
|
$
|
5.38
|
|
Diluted net earnings
per share
|
$
|
3.94
|
|
|
$
|
3.46
|
|
|
$
|
2.30
|
|
|
$
|
2.02
|
|
|
$
|
5.38
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
computation of (in thousands):
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
44,200
|
|
|
44,198
|
|
|
44,200
|
|
|
44,198
|
|
|
44,198
|
|
Diluted earnings per
share
|
44,247
|
|
|
44,220
|
|
|
44,247
|
|
|
44,236
|
|
|
44,215
|
|
ELBIT SYSTEMS
LTD.
|
CONSOLIDATED
STATEMENTS OF CASH FLOW
|
(In thousands of US
dollars)
|
|
|
|
Six Months Ended
June 30,
|
|
Year Ended
December 31,
|
|
2021
|
|
2020
|
|
2020
|
|
Unaudited
|
|
Audited
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net income
|
$
|
174,609
|
|
|
$
|
153,023
|
|
|
$
|
237,986
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
73,320
|
|
|
73,971
|
|
|
144,420
|
|
Write-off
impairment
|
—
|
|
|
4,400
|
|
|
7,932
|
|
Stock-based
compensation
|
1,916
|
|
|
2,042
|
|
|
4,086
|
|
Amortization of Series
A Notes discount (premium) and related issuance costs,
net
|
—
|
|
|
(46)
|
|
|
(46)
|
|
Deferred income taxes
and reserve, net
|
10,645
|
|
|
(13,953)
|
|
|
(5,345)
|
|
Gain on sale of
property, plant and equipment
|
(14,457)
|
|
|
(32,236)
|
|
|
(34,926)
|
|
Gain on sale of
investment, remeasurement of investment held under fair value
method
|
(947)
|
|
|
(21,358)
|
|
|
(23,572)
|
|
Equity in net
earnings of affiliated companies and partnerships, net of
dividend
received(*)
|
(2,732)
|
|
|
(2,086)
|
|
|
(7,853)
|
|
Changes in operating
assets and liabilities, net of amounts acquired:
|
|
|
|
|
|
Increase in short and
long-term trade and unbilled receivables and prepaid
expenses
|
(52,341)
|
|
|
(67,732)
|
|
|
(508,057)
|
|
Increase in
inventories, net
|
(192,102)
|
|
|
(90,146)
|
|
|
(69,762)
|
|
Increase (decrease) in
trade payables and other payables and accrued expenses
|
(151,066)
|
|
|
(69,093)
|
|
|
143,847
|
|
Severance, pension and
termination indemnities, net
|
(1,117)
|
|
|
(8,079)
|
|
|
31,394
|
|
Increase in contract
liabilities
|
311,405
|
|
|
240,569
|
|
|
358,730
|
|
Net cash provided by
operating activities
|
157,133
|
|
|
169,276
|
|
|
278,834
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Purchase of property,
plant and equipment and other assets
|
(70,558)
|
|
|
(58,548)
|
|
|
(132,210)
|
|
Acquisitions of
subsidiaries and business operations
|
(383,006)
|
|
|
—
|
|
|
218
|
|
Deferred payment on
acquisition
|
(60,560)
|
|
|
—
|
|
|
—
|
|
Investments in
affiliated companies and other companies, net
|
(2,583)
|
|
|
(1,220)
|
|
|
(8,212)
|
|
Proceeds from sale of
property, plant and equipment
|
19,137
|
|
|
70,720
|
|
|
71,933
|
|
Proceeds from sale of
investments
|
16,177
|
|
|
44,200
|
|
|
44,200
|
|
Proceeds from sale of
long-term deposits, net
|
133
|
|
|
(161)
|
|
|
221
|
|
Investment in
short-term deposits, net
|
(435)
|
|
|
(600)
|
|
|
(683)
|
|
Proceeds from sale of
short-term deposits
|
39
|
|
|
1,066
|
|
|
1,666
|
|
Net cash used in
investing activities
|
(481,656)
|
|
|
55,457
|
|
|
(22,867)
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Proceeds from exercise
of options
|
1
|
|
|
—
|
|
|
—
|
|
Repayment of long-term
bank loans
|
(67,613)
|
|
|
(155,224)
|
|
|
(370,367)
|
|
Issuance of long-term
bank loans
|
475,328
|
|
|
201,550
|
|
|
201,551
|
|
Repayment of long-term
debenture
|
—
|
|
|
(55,532)
|
|
|
(55,532)
|
|
Dividends
paid
|
(58,842)
|
|
|
(54,861)
|
|
|
(78,194)
|
|
Change in short-term
bank credit and loans, net
|
(91,722)
|
|
|
(42,623)
|
|
|
104,309
|
|
Net cash provided by
(used for) financing activities
|
257,152
|
|
|
(106,690)
|
|
|
(198,233)
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
(67,371)
|
|
|
118,043
|
|
|
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 year
|
$
|
211,423
|
|
|
$
|
339,103
|
|
|
$
|
278,794
|
|
|
|
|
|
|
|
* Dividend received
from affiliated companies and partnerships
|
$
|
13,759
|
|
|
$
|
5,013
|
|
|
$
|
9,151
|
|
ELBIT SYSTEMS
LTD.
|
DISTRIBUTION OF
REVENUES
|
Consolidated
Revenues by Areas of Operation:
|
|
|
|
|
Six Months Ended
June 30,
|
|
Three Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
Airborne
systems
|
928.0
|
|
|
38.3
|
|
|
777.0
|
|
|
36.1
|
|
|
516.9
|
|
|
39.7
|
|
|
389.5
|
|
|
36.1
|
|
Land
systems
|
584.4
|
|
|
24.1
|
|
|
592.9
|
|
|
27.6
|
|
|
284.3
|
|
|
21.8
|
|
|
294.8
|
|
|
27.3
|
|
C4ISR
systems
|
602.3
|
|
|
24.9
|
|
|
479.4
|
|
|
22.3
|
|
|
342.2
|
|
|
26.3
|
|
|
238.4
|
|
|
22.1
|
|
Electro-optic
systems
|
202.9
|
|
|
8.4
|
|
|
251.3
|
|
|
11.7
|
|
|
105.7
|
|
|
8.1
|
|
|
131.8
|
|
|
12.2
|
|
Other (mainly
non-defense
engineering and production
services)
|
103.1
|
|
|
4.3
|
|
|
50.1
|
|
|
2.3
|
|
|
53.3
|
|
|
4.1
|
|
|
25.0
|
|
|
2.3
|
|
Total
|
2,420.7
|
|
|
100.0
|
|
|
2,150.7
|
|
|
100.0
|
|
|
1,302.4
|
|
|
100.0
|
|
|
1,079.5
|
|
|
100.0
|
|
Consolidated
Revenues by Geographical Regions:
|
|
Six Months Ended
June 30,
|
|
Three Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
|
$
millions
|
|
%
|
Israel
|
552.9
|
|
|
22.8
|
|
|
511.9
|
|
|
23.8
|
|
|
268.9
|
|
|
20.6
|
|
|
265.9
|
|
|
24.6
|
|
North
America
|
793.8
|
|
|
32.8
|
|
|
733.3
|
|
|
34.1
|
|
|
443.9
|
|
|
34.1
|
|
|
366.5
|
|
|
34.0
|
|
Europe
|
393.6
|
|
|
16.3
|
|
|
347.6
|
|
|
16.2
|
|
|
208.1
|
|
|
16.0
|
|
|
162.8
|
|
|
15.1
|
|
Asia-Pacific
|
572.7
|
|
|
23.7
|
|
|
431.2
|
|
|
20.0
|
|
|
343.2
|
|
|
26.4
|
|
|
221.2
|
|
|
20.5
|
|
Latin
America
|
62.8
|
|
|
2.6
|
|
|
74.0
|
|
|
3.4
|
|
|
27.5
|
|
|
2.1
|
|
|
41.4
|
|
|
3.8
|
|
Other
countries
|
44.9
|
|
|
1.8
|
|
|
52.7
|
|
|
2.5
|
|
|
10.8
|
|
|
0.8
|
|
|
21.7
|
|
|
2.0
|
|
Total
|
2,420.7
|
|
|
100.0
|
|
|
2,150.7
|
|
|
100.0
|
|
|
1,302.4
|
|
|
100.0
|
|
|
1,079.5
|
|
|
100.0
|
|
View original
content:https://www.prnewswire.com/news-releases/elbit-systems-reports-second-quarter-2021-results-301354122.html
SOURCE Elbit Systems Ltd