Backlog of orders at $13.7 billion; Revenues of $5.3 billion; Non-GAAP net income of $368 million; GAAP net income of $274 million; Non-GAAP net EPS of
$8.30; GAAP net EPS of $6.20
HAIFA, Israel,
March 29, 2022
/PRNewswire/ -- Elbit Systems Ltd. ("Elbit Systems" or the
"Company") (NASDAQ: ESLT) (TASE: ESLT), the
international high technology company, reported today its
consolidated results for the fourth quarter and full year ended
December 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 6 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:
"2021 was a solid year for Elbit Systems, and the financial
results indicate the sustained demand for our products and systems
from customers around the world. Revenues increased by 13% year
over year to $5.3 billion, and a
record backlog of $13.7 billion
provides us with good visibility.
Elbit Systems' 2021 results are an outcome of the significant
investments we have made in recent years to develop leading
technological capabilities and expand our positions in key global
defense markets to sustain through cycle growth.
I believe that Elbit Systems is well positioned to benefit from
the growth in the defense sector around the world."
Fourth quarter 2021 results:
Revenues in the fourth quarter of 2021 were
$1,494.3 million, as compared to
$1,377.7 million in the fourth
quarter of 2020.
Non-GAAP(*) gross profit amounted to
$381.1 million (25.5% of revenues) in
the fourth quarter of 2021, as compared to $363.0 million (26.3% of revenues) in the fourth
quarter of 2020. GAAP gross profit in the fourth quarter of
2021 was $374.3 million (25.1% of
revenues), as compared to $357.8
million (26.0% of revenues) in the fourth quarter of
2020.
___________
* see page 6
Research and development expenses, net were
$114.0 million (7.6% of revenues) in
the fourth quarter of 2021, as compared to $109.1 million (7.9% of revenues) in the fourth
quarter of 2020.
Marketing and selling expenses, net were $80.8 million (5.4% of revenues) in the fourth
quarter of 2021, as compared to $81.2
million (5.9% of revenues) in the fourth quarter of
2020.
General and administrative expenses, net were
$72.4 million (4.8% of revenues) in
the fourth quarter of 2021, as compared to $62.9 million (4.6% of revenues) in the fourth
quarter of 2020. The higher level of general and administrative
expenses in the fourth quarter of 2021 included the expenses of
Sparton Corporation ("Sparton") which was acquired and consolidated
commencing the second quarter of 2021.
Non-GAAP(*) operating income was $120.1 million (8.0% of revenues) in the fourth
quarter of 2021, as compared to $113.8
million (8.3% of revenues) in the fourth quarter of 2020.
GAAP operating income in the fourth quarter of 2021 was
$107.3 million (7.2% of revenues), as
compared to $104.6 million (7.6% of
revenues) in the fourth quarter of 2020.
Financial expenses, net were $19.6 million in the fourth quarter of 2021, as
compared to $32.5 million in the
fourth quarter of 2020. The lower level of financial expenses in
the fourth quarter of 2021 was mainly a result of exchange rate
differences related to the revaluation of lease liabilities.
Other income, net was $9.7
million in the fourth quarter of 2021, as compared to other
expenses, net of $7.3 million in the
fourth quarter of 2020.
Taxes on income were $92.2
million in the fourth quarter of 2021, as compared to
$1.9 million in the fourth quarter of
2020. Tax expenses in the fourth quarter of 2021 included a
one-time expense of approximately $80.0
million related to the amendment of legislation regarding
exempt earnings from "Approved Enterprises" and "Privileged
Enterprises" in Israel ("Exempt
Earnings").
Equity in net earnings of affiliated companies and
partnerships was $3.1 million in
the fourth quarter of 2021, as compared to $5.0 million the fourth quarter of 2020.
Non-GAAP(*) net income attributable to the
Company's shareholders in the fourth quarter of 2021 was
$94.9 million (6.4% of revenues), as
compared to $105.0 million (7.6% of
revenues) in the fourth quarter of 2020. GAAP net income
attributable to the Company's shareholders in the fourth
quarter of 2021 was $8.2 million
(0.5% of revenues), as compared to $67.8
million (4.9% of revenues) in the fourth quarter of
2020. The decrease in the fourth quarter of 2021 mainly was a
result of the tax expense mentioned in "Taxes on income" above.
Non GAAP(*) diluted net earnings per share
attributable to the Company's shareholders were
$2.14 for the fourth quarter of 2021,
as compared to $2.38 for the fourth
quarter of 2020. GAAP diluted earnings per share attributable to
the Company's shareholders in the fourth quarter of 2021 were
$0.18, as compared to $1.53 in the fourth quarter of 2020.
___________
* see page 6
Full year 2021 results:
Revenues for the year ended December 31, 2021 were $5,278.5 million, as compared to $4,662.6 million in the year ended December 31, 2020.
For distribution of revenues by areas of operation and by
geographic regions see the tables on page 14.
The majority of the revenues in 2021 were in the Airborne
systems and C4ISR systems areas of operation. The increase in
revenues in the area of Airborne systems was mainly a result of
sales of airborne precision guided munitions in Asia-Pacific. The growth in revenues in the
C4ISR systems area was mainly due to Sparton, a U.S. subsidiary
acquired and consolidated in the Company's results from the second
quarter of 2021.
On a geographic basis, the increase in North America was mainly a result of higher
sales of airborne systems and Sparton's products, as well as
growth in sales of medical instrumentation. The increase in
Asia-Pacific was due to
sales of airborne precision guided munitions.
Cost of revenues for the year ended December 31, 2021 was $3,920.5 million (74.3% of revenues), as compared
to $3,497.5 million (75.0% of
revenues) in the year ended December 31,
2020. Cost of revenues in 2020 included non-cash expenses of
approximately $60.0 million, related
to impairment of assets and inventory write-offs due to the impact
of COVID-19.
Non-GAAP(*) gross profit for the year ended
December 31, 2021 was
$1,384.7 million (26.2% of revenues),
as compared to $1,247.2 million
(26.7% of revenues) in the year ended December 31, 2020. GAAP gross profit in
2021 was $1,358.0 million
(25.7% of revenues), as compared to $1,165.1
million (25.0% of revenues) in 2020.
Research and development expenses, net for the year
ended December 31, 2021 were
$395.1 million (7.5% of revenues), as
compared to $359.7 million (7.7% of
revenues) in the year ended December 31,
2020.
Marketing and selling expenses, net for the year ended
December 31, 2021 were
$291.8 million (5.5% of revenues), as
compared to $290.7 million (6.2% of
revenues) in the year ended December 31,
2020.
General and administrative expenses, net for the year
ended December 31, 2021 were
$267.4 million (5.1% of revenues), as
compared to $223.9 million (4.8% of
revenues) in the year ended December
31, 2020. The increase in general administrative
expenses in 2021 was mainly as a result of general and
administrative expenses related to the acquisition and
consolidation of Sparton in the Company's results as of the second
quarter of 2021.
Other operating income, net for the year ended
December 31, 2021 amounted to
$14.7 million, as compared to
$35.0 million for the year ended
December 31, 2020. Other operating
income in 2021 resulted mainly from capital gain related to the
sale of a building by a subsidiary in Israel. Other operating income in 2020 was
mainly a result of capital gain related to the sale and lease back
of buildings by a subsidiary in the U.S.
Non-GAAP(*) operating income for the year ended
December 31, 2021 was $450.8 million (8.5% of revenues), as compared to
$390.1 million (8.4% of revenues) in
the year ended December 31, 2020.
GAAP operating income in 2021 was $418.5 million (7.9% of revenues), as compared to
$325.7 million (7.0% of revenues) in
2020, which included non-cash expenses of approximately
$60 million related to impairment of
assets and inventory write-offs due to the impact of Covid-19.
___________
* see page 6
Financial expenses, net for the year ended
December 31, 2021 were
$40.4 million, as compared to
$71.3 million in the year ended
December 31, 2020. Financial
expenses, net in 2021 included a gain from changes in fair value of
financial assets of approximately $18.8
million. Financial expenses, net in 2021 and 2020 included
expenses of approximately $10.2 and
$33.4 million, respectively, related
to revaluation of lease liabilities and exchange rate
differences.
Other income, net was $5.3
million in 2021, as compared to other income, net of
$7.4 million in 2020. Other income,
net in 2021 and 2020, resulted mainly from revaluation of holdings
in affiliated companies, net of expenses related to non-service
costs of pension plans.
Taxes on income for the year ended December 31, 2021 were $131.4 million (effective tax rate of 34.3%), as
compared to $36.4 million (effective
tax rate of 13.9%) in the year ended December 31, 2020. Taxes on income in 2021
included a one-time expense of approximately $80.0 million related to the "release" of Exempt
Earnings. Taxes on income in 2020 were reduced by a tax benefit
related to adjustments for prior years following a tax settlements
of the Company and some of its subsidiaries in Israel with the Israeli tax authorities.
Equity in net earnings of affiliated companies and
partnerships for the year ended December
31, 2021 was $22.6
million, which included a gain of approximately $10.9 million related to the sale of affiliated
company, as compared to $12.6 million
in the year ended December 31,
2020.
Non-GAAP(*) net income attributable to the
Company's shareholders for the year ended December 31, 2021 was $367.6 million (7.0% of revenues), as compared to
$318.5 million (6.8% of revenues) in
the year ended December 31, 2020.
GAAP net income attributable to the Company's
shareholders in the year ended December
31, 2021 was $274.4 million
(5.2% of revenues), as compared to $237.7
million (5.1% of revenues) in the year ended December 31, 2020.
Non-GAAP(*) diluted net earnings per
share attributable to the Company's
shareholders for the year ended December 31, 2021 were $8.30, as compared to $7.20 for the year ended December 31, 2020. GAAP diluted net
earnings per share attributable to the Company's
shareholders in the year ended December
31, 2021 were $6.20, as
compared to $5.38 in the year ended
December 31, 2020.
Backlog of orders for the year ended December 31, 2021 totaled $13,661 million, as compared to $11,024 million as of December 31, 2020. Approximately 72% of the
current backlog is attributable to orders from outside Israel. Approximately 60% of the current
backlog is scheduled to be performed during 2022 and 2023.
Net cash provided by operating activities in the
year ended December 31, 2021 was
$416.9 million, as compared to
$278.8 million in the year ended
December 31, 2020. The higher level
of operating cash flow in 2021 was mainly a result of payment of
outstanding debts by customers, mainly the Israeli Ministry of
Defense, as well as higher advances received from customers, mainly
in Israel and Europe.
___________
* see page 6
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. Such
disruptions also led to global shortages of electronics and other
components, increased costs and extended lead times. 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 November 23,
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 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 December 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 implementation of
vaccinations, and resulting actions that may be taken by our
customers and our suppliers, all of which contain uncertainties. As
will be noted in our annual report on Form 20-F for 2021 that will
be filed in April 2022, 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 and the year ended
December 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.
Potential Impact of Increase in Company's Share Price on
Employee Compensation Plan Costs:
Over the last several weeks, there has been a significant
increase in the price of the Company's shares. Should such
share price levels continue, or further increase, there would be a
significant impact on the costs to the Company under its various
stock price linked compensation plans for employees.
* 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
December
31, 2021
|
|
Three
Months
Ended
December
31, 2020
|
|
Year
Ended
December
31, 2021
|
|
Year
Ended
December
31, 2020
|
GAAP gross
profit
|
$
374.3
|
|
$
357.8
|
|
$
1,358.0
|
|
$
1,165.1
|
Adjustments:
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
6.8
|
|
5.2
|
|
26.7
|
|
22.7
|
Covid-19 related
expenses and write-offs
|
—
|
|
—
|
|
—
|
|
56.0
|
Impairment of
long-lived assets
|
—
|
|
—
|
|
—
|
|
3.4
|
Non-GAAP gross
profit
|
$
381.1
|
|
$
363.0
|
|
$
1,384.7
|
|
$
1,247.2
|
Percent of
revenues
|
25.5
%
|
|
26.3
%
|
|
26.2
%
|
|
26.7
%
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
107.3
|
|
$
104.6
|
|
$
418.5
|
|
$
325.7
|
Adjustments:
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
12.8
|
|
9.2
|
|
47.0
|
|
39.4
|
Covid-19 related
expenses and write-offs
|
—
|
|
—
|
|
—
|
|
56.6
|
Capital gain
|
—
|
|
—
|
|
(14.7)
|
|
(35.0)
|
Impairment of
long-lived assets
|
—
|
|
—
|
|
—
|
|
3.4
|
Non-GAAP operating
income
|
$
120.1
|
|
$
113.8
|
|
$
450.8
|
|
$
390.1
|
Percent of
revenues
|
8.0
%
|
|
8.3
%
|
|
8.5
%
|
|
8.4
%
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to Elbit Systems' shareholders
|
$
8.2
|
|
$
67.8
|
|
$
274.4
|
|
$
237.7
|
Adjustments:
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
12.8
|
|
9.2
|
|
47.0
|
|
39.4
|
Covid-19 related
expenses and write-offs
|
—
|
|
—
|
|
—
|
|
56.6
|
Capital gain
|
—
|
|
—
|
|
(24.9)
|
|
(35.0)
|
Impairment of
investments and long-lived assets
|
—
|
|
—
|
|
—
|
|
7.9
|
Revaluation of
investment measured under fair value method
|
(12.5)
|
|
0.6
|
|
(17.3)
|
|
(20.8)
|
Non-operating foreign
exchange losses
|
7.2
|
|
27.9
|
|
10.6
|
|
33.4
|
Tax effect and other
tax items, net
|
79.2
|
|
(0.5)
|
|
77.8
|
|
(0.7)
|
Non-GAAP net
income attributable to Elbit Systems' shareholders
|
$
94.9
|
|
$
105.0
|
|
$
367.6
|
|
$
318.5
|
Percent of
revenues
|
6.4
%
|
|
7.6
%
|
|
7.0
%
|
|
6.8
%
|
|
|
|
|
|
|
|
|
GAAP diluted net
EPS
|
$
0.18
|
|
$
1.53
|
|
$
6.20
|
|
$
5.38
|
Adjustments,
net
|
1.96
|
|
0.85
|
|
2.10
|
|
1.82
|
Non-GAAP diluted net
EPS
|
$
2.14
|
|
$
2.38
|
|
$
8.30
|
|
$
7.20
|
Recent Events:
On December 15, 2021, the
Company announced that it was awarded a contract valued at
approximately $350 million to supply
an array of land systems to an international customer. The contract
will be fulfilled over a three-year period.
On December 15, 2021, the
Company announced that at its Annual General Meeting of
Shareholders held on December 14,
2021, the proposed resolutions described in the Proxy
Statement to the Shareholders dated November
4, 2021 and detailed hereunder were approved by the
respective required majority:
- "To re-elect to the Board the following seven members who are
not "External Directors" as defined in the Israeli Companies Law
5759-1999, to serve until the close of the next Annual General
Meeting of Shareholders: Mr. Michael
Federmann, Mrs. Rina Baum,
Mr. Yoram Ben-Zeev, Mr. David Federmann, Mr. Dov Ninveh, Prof. Ehood
(Udi) Nisan and Prof. Yuli Tamir;
and
- "To re-appoint Kost, Forer, Gabbay & Kasierer, a member of
Ernst & Young Global, as the Company's independent
auditor for the fiscal year ending December
31, 2021, and until the close of the next Annual General
Meeting of Shareholders."
On January 3, 2022, the
Company announced that its subsidiary in the United Arab Emirates ("UAE"), Elbit Systems
Emirates Limited, was awarded an approximately $53 million contract to supply Direct Infrared
Countermeasures and airborne Electronic Warfare Self Protection
Systems for the Airbus A330 Multi-Role Tanker Transport aircraft of
the UAE Air Force. The contract will be performed over a five-year
period.
On January 5 2022, the
Company announced that its Brazilian subsidiary, AEL Sistemas S.A.,
was awarded a contract to supply additional HermesTM 900
Unmanned Aircraft Systems to the Brazilian Air Force. The contract
is in an amount that is not material to Elbit Systems and will be
performed over a period of 16 months.
On January 10, 2022, the
Company announced that its UK subsidiary, Elbit Systems UK Ltd.,
sold the Power and Control Business of its subsidiary Ferranti
Technologies Ltd., to TT Electronics (UK) Plc. (LSE: TTG.L) for
approximately $12 million
(approximately £9 million) in cash, subject to customary
post-completion working capital adjustments.
On January 13, 2022, the
Company announced that following a competitive tender process, its
Swedish subsidiary, Elbit Systems Sweden AB was awarded a contract
from the Swedish Defence Material Administration to supply the
Albatross Combat Management Systems for the Royal Swedish Navy. The
contract, that is in an amount that is not material to Elbit
Systems, will be performed over a period of 34 months.
On January 26,
2022, the Company announced that it was awarded a
contract valued at approximately $16
million to supply a space telescope to the Weizmann
Institute of Science under Israel's Ultraviolet Transient Astronomy
Satellite ("ULTRASAT") program to observe and research deep space.
The ULTRASAT program is jointly managed and funded by the Weizmann
Institute of Science and the Israeli Space Agency and is carried
out in association with the German DESY research center. The
contract will be performed over a period of two years.
On February 22, 2022, the
Company announced that as a result of an amendment to the Law for
the Encouragement of Capital Investments and the implementation of
an arrangement to pay reduced tax on selected accumulated income,
the Company will include a one-time expense of approximately
$80 million (approximately
NIS 250 million) in its financial
results for the fourth quarter of 2021, which are planned to be
published in March, 2022.
On March 21, 2022, the
Company announced that it was awarded a contract in the amount of
approximately $27 million by the
Swedish Defence Material Administration, to provide the Swedish
Armed Forces with M339 rounds, a 120mm ammunition, and Data Setting
Units, for its Leopard Main Battle Tanks. The contract will be
performed over a period of ten months.
On March 27, 2022, the
Company announced that it was awarded contracts with an aggregate
value of approximately $130 million
to deliver an artillery munitions production line in a country in
Asia-Pacific. The contracts will
be performed over a period of 2.5 years.
Dividend:
The Board of Directors declared a dividend of $0.50 per share for the fourth quarter of 2021.
The dividend's record date is April 11,
2022. The dividend will be paid on April 25, 2022, after deduction of taxes at the
source, at the rate of 16.8%.
Conference Call:
The Company will be hosting a conference call today,
Wednesday, March 29, 2022, 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 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. 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).
Investor conference
Starting at 10:00am Israel time (3:00am
Eastern Time) today, March 29,
2022, Elbit Systems will host an investor conference in
Israel. The event will be streamed
live in Hebrew with a simultaneous English translation. A recording
of the event will be available shortly after the event concludes.
The live webcast and recording will be available in the Investor
Relations section of Elbit Systems' website at
http://www.elbitsystems.com.
Investors and analysts that wish to ask questions related to
topics discussed at the investor conference are welcome to present
their questions during the Q&A part of the financial results
conference call.
Annual Report
The Company's Annual Report on Form 20-F (including its
financial statements for the fiscal year ended December 31, 2021) will be filed in April,
2022.
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,
Gavriel Frohwein, 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)
|
|
|
As of
December 31, 2021
Audited
|
|
As of
December 31, 2020
Audited
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
258,993
|
|
$
278,794
|
Short-term bank
deposits
|
1,185
|
|
1,524
|
Trade and unbilled
receivables and contract assets, net
|
2,770,124
|
|
2,519,562
|
Other receivables and
prepaid expenses
|
279,228
|
|
156,330
|
Inventories,
net
|
1,670,474
|
|
1,316,688
|
Total current
assets
|
4,980,004
|
|
4,272,898
|
|
|
|
|
Investments in
affiliated companies, partnerships and other companies
|
182,553
|
|
184,338
|
Long-term trade and
unbilled receivables and contract assets
|
316,074
|
|
312,097
|
Long-term bank deposits
and other receivables
|
133,505
|
|
69,269
|
Deferred income taxes,
net
|
65,274
|
|
118,513
|
Severance pay
fund
|
301,192
|
|
293,716
|
Total
|
998,598
|
|
977,933
|
|
|
|
|
Operating lease right
of use assets
|
416,383
|
|
423,088
|
Property, plant and
equipment, net
|
902,684
|
|
786,972
|
Goodwill and other
intangible assets, net
|
2,019,675
|
|
1,597,006
|
Total assets
|
$
9,317,344
|
|
$
8,057,897
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Short-term bank credit
and loans
|
$
27,676
|
|
$
312,993
|
Current maturities of
long-term loans and Series B, C and D Notes
|
78,682
|
|
17,972
|
Operating lease
liabilities
|
76,778
|
|
65,520
|
Trade
payables
|
1,023,679
|
|
1,007,237
|
Other payables and
accrued expenses
|
1,314,321
|
|
1,218,273
|
Contract
liabilities
|
1,502,955
|
|
1,000,159
|
Total
|
4,024,091
|
|
3,622,154
|
|
|
|
|
Long-term loans, net of
current maturities
|
356,624
|
|
408,820
|
Series B, C and D
Notes, net of current maturities
|
528,324
|
|
—
|
Employee benefit
liabilities
|
884,353
|
|
914,364
|
Deferred income taxes
and tax liabilities, net
|
141,451
|
|
132,442
|
Contract
liabilities
|
293,984
|
|
169,073
|
Operating lease
liabilities
|
386,644
|
|
397,936
|
Other long-term
liabilities
|
155,610
|
|
181,741
|
Total
|
2,746,990
|
|
2,204,376
|
|
|
|
|
Elbit Systems Ltd.'s
equity
|
2,531,635
|
|
2,218,154
|
Non-controlling
interests
|
14,628
|
|
13,213
|
Total equity
|
2,546,263
|
|
2,231,367
|
Total liabilities and
equity
|
$
9,317,344
|
|
$
8,057,897
|
ELBIT SYSTEMS
LTD.
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(In thousands of US
Dollars, except for share and per share amounts)
|
|
|
Year ended
December 31,
2021
Audited
|
|
Year ended
December 31,
2020
Audited
|
|
Three months
ended
December 31,
2021
Unaudited
|
|
Three months
ended
December 31,
2020
Unaudited
|
Revenues
|
$
5,278,521
|
|
$
4,662,572
|
|
$
1,494,273
|
|
$
1,377,732
|
Cost of
revenues
|
3,920,473
|
|
3,497,465
|
|
1,119,924
|
|
1,019,899
|
Gross profit
|
1,358,048
|
|
1,165,107
|
|
374,349
|
|
357,833
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development, net
|
395,087
|
|
359,745
|
|
113,950
|
|
109,062
|
Marketing and selling,
net
|
291,751
|
|
290,703
|
|
80,754
|
|
81,226
|
General and
administrative, net
|
267,362
|
|
223,935
|
|
72,373
|
|
62,920
|
Other operating income,
net
|
(14,660)
|
|
(34,963)
|
|
—
|
|
—
|
Total operating
expenses
|
939,540
|
|
839,420
|
|
267,077
|
|
253,208
|
Operating
income
|
418,508
|
|
325,687
|
|
107,272
|
|
104,625
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
(40,393)
|
|
(71,270)
|
|
(19,614)
|
|
(32,525)
|
Other income (expense),
net
|
5,336
|
|
7,408
|
|
9,677
|
|
(7,332)
|
Income before income
taxes
|
383,451
|
|
261,825
|
|
97,335
|
|
64,768
|
Taxes on
income
|
(131,387)
|
|
(36,443)
|
|
(92,175)
|
|
(1,878)
|
Income after taxes on
income
|
252,064
|
|
225,382
|
|
5,160
|
|
62,890
|
|
|
|
|
|
|
|
|
Equity in net earnings
of affiliated companies and
partnerships
|
22,599
|
|
12,604
|
|
3,123
|
|
5,025
|
|
|
|
|
|
|
|
|
Net
income
|
$
274,663
|
|
$
237,986
|
|
$
8,283
|
|
$
67,915
|
|
|
|
|
|
|
|
|
Less: net income
attributable to non-controlling interests
|
(313)
|
|
(328)
|
|
(96)
|
|
(93)
|
Net income attributable
to Elbit Systems Ltd.'s
shareholders
|
$
274,350
|
|
$
237,658
|
|
$
8,187
|
|
$
67,822
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Elbit Systems Ltd.'s shareholders:
|
|
|
|
|
|
|
Basic net earnings per
share
|
$
6.21
|
|
$
5.38
|
|
$
0.19
|
|
$
1.53
|
Diluted net earnings
per share
|
$
6.20
|
|
$
5.38
|
|
$
0.18
|
|
$
1.53
|
|
|
|
|
|
|
|
|
Weighted average number
of shares used in computation of:
|
|
|
|
|
|
|
Basic earnings per
share (in thousands)
|
44,204
|
|
44,198
|
|
44,213
|
|
44,198
|
Diluted earnings per
share (in thousands)
|
44,278
|
|
44,215
|
|
44,350
|
|
44,198
|
ELBIT SYSTEMS
LTD.
|
CONSOLIDATED
STATEMENTS OF CASH FLOW
|
(In thousands of US
Dollars)
|
|
|
Year ended
December 31,
2021
Audited
|
|
Year ended
December 31,
2020
Audited
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net income
|
$
274,663
|
|
$
237,986
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
153,091
|
|
144,420
|
Write-off
impairment
|
—
|
|
7,932
|
Stock-based
compensation
|
5,312
|
|
4,086
|
Amortization of Series
A, B, C and D related issuance costs, net
|
399
|
|
(46)
|
Deferred income taxes
and reserve, net
|
39,095
|
|
(5,345)
|
Gain on sale of
property, plant and equipment
|
(14,457)
|
|
(34,926)
|
Gain on sale of
investment, remeasurement of investment held under fair value
method
|
(15,153)
|
|
(23,572)
|
Equity in net
(earnings) losses of affiliated companies and partnerships, net
of
dividend received (*)
|
7,724
|
|
(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
|
(430,296)
|
|
(508,057)
|
Increase in
inventories, net
|
(336,221)
|
|
(69,762)
|
Increase in trade
payables and other payables and accrued expenses
|
105,201
|
|
143,847
|
Severance, pension and
termination indemnities, net
|
9,834
|
|
31,394
|
Increase in contract
liabilities
|
617,740
|
|
358,730
|
Net cash provided by
operating activities
|
416,932
|
|
278,834
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
Purchase of property,
plant and equipment and other assets
|
(188,624)
|
|
(132,210)
|
Acquisition of
subsidiaries and business operations, net of cash
consumed
|
(385,011)
|
|
218
|
Deferred payment on
acquisition
|
(60,560)
|
|
—
|
Investments in
affiliated companies and other companies, net
|
(1,828)
|
|
(8,212)
|
Proceeds from sale of
property, plant and equipment
|
25,745
|
|
71,933
|
Proceeds from sale of
investments
|
16,177
|
|
44,200
|
Proceeds from sale
of (investment in) long-term deposits, net
|
481
|
|
221
|
Investment in
short-term deposits
|
(435)
|
|
(683)
|
Proceeds from sale of
short-term
|
6,334
|
|
1,666
|
Net cash used in
investing activities
|
(587,721)
|
|
(22,867)
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
Proceeds from exercise
of options
|
20
|
|
—
|
Repayment of long-term
loans
|
(536,062)
|
|
(370,367)
|
Proceeds from long-term
bank loans
|
476,273
|
|
201,551
|
Issuance of series B,
C, D Notes, net of issuance costs
|
575,249
|
|
—
|
Repayment of Series A
Notes
|
—
|
|
(55,532)
|
Dividends
paid
|
(79,175)
|
|
(78,194)
|
Change in short-term
bank credit and loans, net
|
(285,317)
|
|
104,309
|
Net cash provided by
(used in) financing activities
|
150,988
|
|
(198,233)
|
NET (DECREASE)
INCREASE IN CASH AND CASH EQUIVALENTS
|
(19,801)
|
|
57,734
|
CASH AND CASH
EQUIVALENTS AT THE BEGINNING OF THE YEAR
|
278,794
|
|
221,060
|
CASH AND CASH
EQUIVALENTS AT THE END OF THE YEAR
|
258,993
|
|
278,794
|
|
|
|
|
(*) Dividend
received from affiliated companies and partnerships
|
$
30,323
|
|
$
9,151
|
ELBIT SYSTEMS
LTD.
|
DISTRIBUTION OF
REVENUES
|
(In millions of US
Dollars)
|
|
|
Consolidated
Revenues by Areas of Operation:
|
|
|
|
Year
Ended
December
31, 2021
|
|
%
|
|
Year
Ended
December
31, 2020
|
|
%
|
|
Three
Months
Ended
December
31, 2021
|
|
%
|
|
Three
Months
Ended
December
31, 2020
|
|
%
|
Airborne
systems
|
$
2,005.8
|
|
37.9
|
|
$
1,650.4
|
|
35.4
|
|
$
568.2
|
|
38.1
|
|
$
480.4
|
|
34.9
|
C4ISR
systems
|
1,371.5
|
|
26.0
|
|
1,145.7
|
|
24.6
|
|
400.9
|
|
26.8
|
|
386.1
|
|
28.0
|
Land systems
|
1,254.7
|
|
23.8
|
|
1,258.9
|
|
27.0
|
|
353.1
|
|
23.6
|
|
342.1
|
|
24.8
|
Electro-optic
systems
|
452.9
|
|
8.6
|
|
475.9
|
|
10.2
|
|
118.0
|
|
7.9
|
|
116.4
|
|
8.5
|
Other (mainly
non-defense engineering and production services)
|
193.6
|
|
3.7
|
|
131.7
|
|
2.8
|
|
54.1
|
|
3.6
|
|
52.8
|
|
3.8
|
Total
|
$
5,278.5
|
|
100.0
|
|
$
4,662.6
|
|
100.0
|
|
$
1,494.3
|
|
100.0
|
|
$
1,377.8
|
|
100.0
|
|
|
|
Consolidated
Revenues by Geographical Regions:
|
|
|
Year
Ended
December
31, 2021
|
|
%
|
|
Year
Ended
December
31, 2020
|
|
%
|
|
Three
Months
Ended
December
31, 2021
|
|
%
|
|
Three
Months
Ended
December
31, 2020
|
|
%
|
Israel
|
$
1,094.7
|
|
20.7
|
|
$
1,106.4
|
|
23.7
|
|
$
297.4
|
|
19.9
|
|
$
309.6
|
|
22.4
|
North
America
|
1,608.6
|
|
30.5
|
|
1,500.6
|
|
32.2
|
|
401.2
|
|
26.9
|
|
423.5
|
|
30.7
|
Europe
|
884.5
|
|
16.8
|
|
819.0
|
|
17.6
|
|
254.0
|
|
17.0
|
|
261.9
|
|
19.0
|
Asia-Pacific
|
1,443.5
|
|
27.3
|
|
961.8
|
|
20.6
|
|
453.2
|
|
30.3
|
|
278.0
|
|
20.2
|
Latin
America
|
126.7
|
|
2.4
|
|
140.1
|
|
3.0
|
|
34.3
|
|
2.3
|
|
40.7
|
|
3.0
|
Other
countries
|
120.5
|
|
2.3
|
|
134.7
|
|
2.9
|
|
54.2
|
|
3.6
|
|
64.1
|
|
4.7
|
Total
|
$
5,278.5
|
|
100.0
|
|
$
4,662.6
|
|
100.0
|
|
$
1,494.3
|
|
100.0
|
|
$
1,377.8
|
|
100.0
|
View original
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SOURCE Elbit Systems Ltd.