Backlog of orders at $14.1 billion; Revenues of $1.3 billion;
Non-GAAP net income of
$77 million;
GAAP net
income of $81
million;
Non-GAAP net EPS of $1.73; GAAP net EPS of $1.82
HAIFA,
Israel, Aug. 16, 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 quarter ended June 30,
2022.
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 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, "Order
backlog growth in the second quarter reflects the continued demand
for Elbit Systems' portfolio of leading technological capabilities
from customers around the world and supports our future growth
prospects.
We continue to make investments in our portfolio that are well
aligned with the priority areas of our customers. I believe the
trend in global defense budgets combined with an improved
operational initiative should
support Elbit Systems' long term success."
Second quarter 2022 results:
Revenues in the second quarter of 2022 were
$1,303.4 million, as compared to
$1,302.4 million in the second
quarter of 2021.
Non-GAAP(*) gross profit amounted to
$345.9 million (26.5% of revenues) in
the second quarter of 2022, as compared to $346.6 million (26.6% of revenues) in the second
quarter of 2021. GAAP gross profit in the second quarter of
2022 was $339.7 million (26.1% of
revenues), as compared to $339.2
million (26.0% of revenues) in the second quarter of
2021.
Research and development expenses, net were 96.4
million (7.4% of revenues) in the second quarter of 2022, as
compared to 95.4 million (7.3% of revenues) in the second quarter
of 2021.
Marketing and selling expenses, net were $82.8 million (6.4% of revenues) in the
second quarter of 2022, as compared to $75.4 million (5.8% of revenues) in the
second quarter of 2021.
* see Non-GAAP financial
data
General and administrative expenses, net were
$72.7 million (5.6% of revenues)
in the second quarter of 2022, as compared to $65.9 million (5.1% of revenues) in the
second quarter of 2021.
Other operating income, net was $27.2 million in the second quarter of 2022,
as compared to other operating income of $14.7 million in the second quarter of 2021.
Other operating income in 2022 was a result of capital gains from
sale of our shares in a subsidiary and sale of a building in
Israel.
Non-GAAP(*) operating income was $103.3 million (7.9% of revenues) in the second
quarter of 2022, as compared to $114.9
million (8.8% of revenues) in the second quarter of 2021.
GAAP operating income in the second quarter of 2022 was
$115.1 million (8.8% of revenues), as
compared to $117.1 million (9.0% of
revenues) in the second quarter of 2021.
Financial expenses, net were $9.3 million in the second quarter of 2022,
as compared to $7.1 million in
the second quarter of 2021.
Other expenses, net were $12.1 million in the second quarter of 2022,
as compared to $1.4 million in
the second quarter of 2021. Other expenses, net in the second
quarter of 2022 includes an amount of $10.6
million related to an adjustment to other comprehensive loss
of pension plans as a result of a sale of a subsidiary in
Israel.
Taxes on income were $12.8 million in the second quarter of 2022,
as compared to $20.1 million in
the second quarter of 2021.
Equity in net losses of affiliated companies and
partnerships were $0.1 million in the second quarter of 2022,
as compared to net earnings of $13.5 million in the second quarter of 2021.
The income in 2021 includes a gain of approximately $10.3 million related to the sale of our shares
in an affiliated company.
Non-GAAP(*) net income attributable to the
Company's shareholders in the second quarter of 2022 was
$76.9 million (5.9% of revenues), as
compared to $93.4 million (7.2%
of revenues) in the second quarter of 2021. GAAP net income
attributable to the Company's shareholders in the second
quarter of 2022 was $81.2 million (6.2% of revenues), as
compared to $101.7 million (7.8%
of revenues) in the second quarter of 2021.
Non GAAP(*) diluted net earnings per share
attributable to the Company's shareholders were
$1.73 for the second quarter of 2022,
as compared to $2.11 for the second
quarter of 2021. GAAP diluted earnings per share attributable to
the Company's shareholders in the second quarter of 2022 were
$1.82, as compared to $2.30 in the second quarter of 2021.
* see Non-GAAP financial
data
The Company's backlog of orders as of June 30,
2022 totaled $14.1 billion.
Approximately 74% of the current backlog is attributable to orders
from outside Israel. Approximately 52% of the backlog is scheduled
to be performed during the remainder of 2022 and 2023.
Cash flows used in operating activities in the six
months ended June 30, 2022 were $133.5 million, as compared to cash flows
provided by operating activities in the six months ended
June 30, 2021 of $157.1 million. Cash flows in 2022 includes
an amount of approximately $76
million of tax payment related to the Company's
implementation of the amendment to the law of Encouragement of
Capital Investments allowing payment of reduced corporate tax for
the release of exempt earnings from "Approved Enterprises" and
"Privileged Enterprises" in Israel, as reported in our 2021 annual
report.
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 May 24,
2022, 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 2021 and the first half of 2022 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,
2022, 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 supply chain, all of which contain uncertainties.
As noted in our annual report on Form 20-F for the year ended
December 31, 2021, 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,
2022, 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:
From the beginning of the third quarter of 2022, the price of the Company's shares have
increased significantly. If the share price remains at current
levels, or further increases, there would be a significant increase
in compensation expenses, related to the Company's stock price
linked employee compensation plans.
* 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,
2022
|
|
Six
months
ended June 30,
2021
|
|
Three
months
ended
June 30, 2022
|
|
Three
months ended
June 30,
2021
|
|
Year
ended
December
31, 2021
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
$ 666.7
|
|
$ 620.5
|
|
$ 339.7
|
|
$ 339.2
|
|
$
1,358.0
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
12.6
|
|
12.3
|
|
6.2
|
|
7.4
|
|
26.7
|
Non-GAAP gross profit
|
$ 679.3
|
|
$ 632.8
|
|
$ 345.9
|
|
$ 346.6
|
|
$
1,384.7
|
Percent of revenues
|
25.6 %
|
|
26.1 %
|
|
26.5 %
|
|
26.6 %
|
|
26.2 %
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income
|
$ 173.7
|
|
$ 201.0
|
|
$ 115.1
|
|
$ 117.1
|
|
$ 418.5
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
26.3
|
|
21.6
|
|
15.4
|
|
12.5
|
|
47.0
|
Capital gain
|
(30.9)
|
|
(14.7)
|
|
(27.2)
|
|
(14.7)
|
|
(14.7)
|
Non-GAAP operating income
|
$ 169.1
|
|
$ 207.9
|
|
$ 103.3
|
|
$ 114.9
|
|
$ 450.8
|
Percent of revenues
|
6.4 %
|
|
8.6 %
|
|
7.9 %
|
|
8.8 %
|
|
8.5 %
|
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable to Elbit Systems'
shareholders
|
$ 133.9
|
|
$ 174.3
|
|
$
81.2
|
|
$ 101.7
|
|
$ 274.4
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
26.3
|
|
21.6
|
|
15.4
|
|
12.5
|
|
47.0
|
Capital gain
|
(20.0)
|
|
(24.9)
|
|
(16.3)
|
|
(24.9)
|
|
(24.9)
|
Revaluation of
investment measured under fair value
method
|
—
|
|
(1.5)
|
|
—
|
|
(1.5)
|
|
(17.3)
|
Non-operating foreign
exchange (gains) losses
|
(8.4)
|
|
—
|
|
(3.7)
|
|
4.2
|
|
10.6
|
Tax effect and other
tax items, net
|
(0.6)
|
|
0.2
|
|
0.3
|
|
1.4
|
|
77.8
|
Non-GAAP net income attributable to
Elbit
Systems' shareholders
|
$ 131.2
|
|
$ 169.7
|
|
$
76.9
|
|
$
93.4
|
|
$ 367.6
|
Percent of revenues
|
4.9 %
|
|
7.0 %
|
|
5.9 %
|
|
7.2 %
|
|
7.0 %
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net EPS
|
$
3.01
|
|
$
3.94
|
|
$
1.82
|
|
$
2.30
|
|
$
6.20
|
Adjustments,
net
|
(0.06)
|
|
(0.11)
|
|
(0.09)
|
|
(0.19)
|
|
2.10
|
Non-GAAP diluted net EPS
|
$
2.95
|
|
$
3.83
|
|
$
1.73
|
|
$
2.11
|
|
$
8.30
|
Recent Events:
On May 31, 2022, the
Company announced that it was awarded a $69
million contract to supply Electronic Warfare (EW)
capabilities to a country in Asia-Pacific. The contract will be delivered
over a period of three years.
On June 2, 2022, the
Company announced that S&P Global Ratings Maalot Ltd., an
Israeli rating agency, issued its rating report regarding the
Series B, C and D Notes, issued by the Company in 2021 (the
"Notes") and reaffirmed the Notes' "ilAA" (on local scaling) rating
with a stable outlook.
On June 27, 2022, the
Company announced that it was awarded an approximately $70 million contract to supply an Electronic
Warfare (EW) solution to an international customer. The contract
will be executed over a period of two and a half years.
On June 29, 2022, the
Company announced that it was awarded an approximately $220 million contract to supply precision
guidance kits for airborne munitions to a country in Asia-Pacific. The contract will be performed
over a period of 15 months.
On June 30, 2022, the
Company announced, further to the Company's announcement of
October 21, 2021, that it completed
the sale of all ordinary shares held by its wholly-owned Israeli
subsidiary, IMI Systems Ltd. ("IMI"), in IMI's 84.98%-owned
subsidiary, Ashot Ashkelon Industries Ltd. (TASE: ASHO) ("Ashot")
and all capital notes of Ashot held by IMI and Elbit Systems, to
FIMI Opportunity Funds ("FIMI"), for approximately $84 million in cash (approximately NIS 291 million). The closing followed receipt of
all the required regulatory approvals.
On June 30, 2022, the
Company announced that it was awarded a contract valued at
$548 million to supply military-wide
multi-domain combat networked warfare capabilities to the Armed
Forces of a country in Asia-Pacific. The contract will be performed
over a four-year period.
On July 5, 2022, the
Company announced that it was awarded a $80
million contract to supply Direct Infrared Counter
Measures ("DIRCM") and airborne EW systems for a country in
Asia-Pacific. The contract will be
performed over a two-year period.
On July 13, 2022, the
Company announced that it was awarded a contract valued at
$660 million to provide intelligence
systems for a country in Europe.
The contract will be executed over a period of four years and
includes an additional ten-year maintenance period.
On July 18, 2022, the
Company announced that its subsidiary, Universal Avionics Systems
Corporation was awarded a contract valued at approximately
$33 million from AerSale Corporation
(NASDAQ: ASLE), to supply Enhanced Flight Vision Systems (EFVS) for
Boeing 737NG aircraft. The contract will be executed through
2023.
Dividend:
The Board of Directors declared a dividend of $ 0.5 per share for the second quarter of 2022.
The dividend's record date is October 6,
2022. The dividend will be paid on October 24, 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,
Tuesday, August 16, 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).
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 Contacts:
Joseph Gaspar, Senior
Executive VP – Business
Management
Tel: +972-77-2948661
j.gaspar@elbitsystems.com
Dr. Yaacov (Kobi)
Kagan, Executive VP - CFO
Tel: +972-77-2946663
kobi.kagan@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
EK Global Investor Relations
Tel: 1-212-378-8040
elbitsystems@egkir.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 June 30,
2022 (Unaudited)
|
|
As
of December 31,
2021 (Audited)
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
247,272
|
|
$
258,993
|
|
|
|
|
Short-term bank
deposits
|
1,109
|
|
1,185
|
|
|
|
|
Trade and unbilled
receivables and contract assets, net
|
2,725,427
|
|
2,770,124
|
|
|
|
|
Other receivables and
prepaid expenses
|
296,428
|
|
279,228
|
|
|
|
|
Inventories,
net
|
1,813,316
|
|
1,670,474
|
|
|
|
|
Total current
assets
|
5,083,552
|
|
4,980,004
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in
affiliated companies, partnerships and other companies
|
169,558
|
|
182,553
|
|
|
|
|
Long-term trade and
unbilled receivables and contract assets
|
369,411
|
|
316,074
|
|
|
|
|
Long-term bank deposits
and other receivables
|
124,632
|
|
133,505
|
|
|
|
|
Deferred income taxes,
net
|
51,758
|
|
65,274
|
|
|
|
|
Severance pay
fund
|
246,599
|
|
301,192
|
|
|
|
|
Total
|
961,958
|
|
998,598
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease right
of use assets
|
408,664
|
|
416,383
|
|
|
|
|
Property, plant and
equipment, net
|
877,726
|
|
902,684
|
|
|
|
|
Goodwill and other
intangible assets, net
|
1,933,208
|
|
2,019,675
|
|
|
|
|
Total assets
|
$
9,265,108
|
|
$
9,317,344
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
Short-term bank credit
and loans
|
$
218,342
|
|
$
27,676
|
|
|
|
|
Current maturities of
long-term loans and Series B, C and D Notes
|
77,219
|
|
78,682
|
|
|
|
|
Operating lease
liabilities
|
71,316
|
|
76,778
|
|
|
|
|
Trade
payables
|
1,070,380
|
|
1,023,679
|
|
|
|
|
Other payables and
accrued expenses
|
1,235,203
|
|
1,314,321
|
|
|
|
|
Contract
liabilities
|
1,686,332
|
|
1,502,955
|
|
|
|
|
Total current
liabilities
|
4,358,792
|
|
4,024,091
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term loans, net of
current maturities
|
379,110
|
|
356,624
|
|
|
|
|
Series B, C and D
Notes, net of current maturities
|
416,226
|
|
528,324
|
|
|
|
|
Employee benefit
liabilities
|
750,025
|
|
884,353
|
|
|
|
|
Deferred income taxes
and tax liabilities, net
|
123,067
|
|
141,451
|
|
|
|
|
Contract
liabilities
|
151,246
|
|
293,984
|
|
|
|
|
Operating lease
liabilities
|
345,595
|
|
386,644
|
|
|
|
|
Other long-term
liabilities
|
198,980
|
|
155,610
|
|
|
|
|
Total long-term
liabilities
|
2,364,249
|
|
2,746,990
|
|
|
|
|
|
|
|
|
|
|
|
|
Elbit Systems Ltd.'s
equity
|
2,539,764
|
|
2,531,635
|
|
|
|
|
Non-controlling
interests
|
2,303
|
|
14,628
|
|
|
|
|
Total equity
|
2,542,067
|
|
2,546,263
|
|
|
|
|
Total liabilities and
equity
|
$
9,265,108
|
|
$
9,317,344
|
|
|
|
|
ELBIT SYSTEMS
LTD.
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(In thousands of US
Dollars, except for share and per share amounts)
|
|
Six months
ended June
30, 2022
(Unaudited)
|
|
Six months
ended June
30, 2021
(Unaudited)
|
|
Three
months
ended June
30, 2022
(Unaudited)
|
|
Three
months
ended June
30, 2021
(Unaudited)
|
|
Year ended
December
31, 2021
(Audited)
|
Revenues
|
$
2,656,179
|
|
$
2,420,652
|
|
$
1,303,374
|
|
$
1,302,373
|
|
$
5,278,521
|
Cost of
revenues
|
1,989,507
|
|
1,800,110
|
|
963,647
|
|
963,171
|
|
3,920,473
|
Gross profit
|
666,672
|
|
620,542
|
|
339,727
|
|
339,202
|
|
1,358,048
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development, net
|
197,032
|
|
179,670
|
|
96,353
|
|
95,412
|
|
395,087
|
Marketing and selling,
net
|
169,754
|
|
126,857
|
|
82,779
|
|
75,373
|
|
291,751
|
General and
administrative, net
|
157,054
|
|
127,704
|
|
72,730
|
|
65,945
|
|
267,362
|
Other operating income,
net
|
(30,900)
|
|
(14,660)
|
|
(27,249)
|
|
(14,660)
|
|
(14,660)
|
Total operating
expenses
|
492,940
|
|
419,571
|
|
224,613
|
|
222,070
|
|
939,540
|
Operating
income
|
173,732
|
|
200,971
|
|
115,114
|
|
117,132
|
|
418,508
|
|
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
(8,209)
|
|
(7,295)
|
|
(9,290)
|
|
(7,073)
|
|
(40,393)
|
Other income (expense),
net
|
(13,918)
|
|
(4,665)
|
|
(12,091)
|
|
(1,419)
|
|
5,336
|
Income before income
taxes
|
151,605
|
|
189,011
|
|
93,733
|
|
108,640
|
|
383,451
|
Taxes on
income
|
(20,745)
|
|
(30,893)
|
|
(12,776)
|
|
(20,091)
|
|
(131,387)
|
Income after taxes on
income
|
130,860
|
|
158,118
|
|
80,957
|
|
88,549
|
|
252,064
|
|
|
|
|
|
|
|
|
|
|
Equity in net earnings
(losses) of affiliated
companies and partnerships
|
2,910
|
|
16,491
|
|
(135)
|
|
13,463
|
|
22,599
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
133,770
|
|
$
174,609
|
|
$
80,822
|
|
$
102,012
|
|
$
274,663
|
|
|
|
|
|
|
|
|
|
|
Less: net income
attributable to non-
controlling interests
|
161
|
|
(352)
|
|
345
|
|
(285)
|
|
(313)
|
Net income attributable
to Elbit Systems
Ltd.'s shareholders
|
$
133,931
|
|
$
174,257
|
|
$
81,167
|
|
$
101,727
|
|
$
274,350
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to
Elbit Systems
Ltd.'s shareholders:
|
|
|
|
|
|
|
|
|
|
Basic net earnings per
share
|
$
3.02
|
|
$
3.94
|
|
$
1.83
|
|
$
2.30
|
|
$
6.21
|
Diluted net earnings
per share
|
$
3.01
|
|
$
3.94
|
|
$
1.82
|
|
$
2.30
|
|
$
6.20
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares used in computation
of:
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share (in thousands)
|
44,304
|
|
44,200
|
|
44,321
|
|
44,200
|
|
44,204
|
Diluted earnings per
share (in thousands)
|
44,552
|
|
44,247
|
|
44,580
|
|
44,247
|
|
44,278
|
ELBIT SYSTEMS
LTD.
|
CONSOLIDATED
STATEMENTS OF CASH FLOW
|
(In thousands of US
Dollars)
|
|
Six months
ended June
30, 2022
(Unaudited)
|
|
Six months
ended June
30, 2021
(Unaudited)
|
|
Year ended
December
31, 2021
(Audited)
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net income
|
$
133,770
|
|
$
174,609
|
|
$
274,663
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
81,874
|
|
73,320
|
|
153,091
|
Stock-based
compensation
|
3,729
|
|
1,916
|
|
5,312
|
Amortization of series
B, C and D related issuance costs, net
|
410
|
|
—
|
|
399
|
Deferred income taxes
and reserve, net
|
(5,442)
|
|
10,645
|
|
39,095
|
Gain on sale of
property, plant and equipment
|
(8,805)
|
|
(14,457)
|
|
(14,457)
|
Gain on sale of
investment, remeasurement of investment held under fair value
method
|
(17,318)
|
|
(947)
|
|
(15,153)
|
Equity in net
(earnings) losses of affiliated companies and partnerships, net
of
dividend received (*)
|
6,075
|
|
(2,732)
|
|
7,724
|
Changes in operating
assets and liabilities, net of amounts acquired:
|
|
|
|
|
|
Increase in trade and
unbilled receivables and prepaid expenses
|
(61,009)
|
|
(52,341)
|
|
(430,296)
|
Increase in
inventories, net
|
(178,274)
|
|
(192,102)
|
|
(336,221)
|
Increase (decrease) in
trade payables and other payables and accrued expenses
|
(73,274)
|
|
(151,066)
|
|
105,201
|
Severance, pension and
termination indemnities, net
|
(53,976)
|
|
(1,117)
|
|
9,834
|
Increase in contract
liabilities
|
38,770
|
|
311,405
|
|
617,740
|
Net cash (used in)
provided by operating activities
|
(133,470)
|
|
157,133
|
|
416,932
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Purchase of property,
plant and equipment and other assets
|
(107,266)
|
|
(70,558)
|
|
(188,624)
|
Acquisition of
subsidiaries, net of cash consumed
|
(3,390)
|
|
(383,006)
|
|
(385,011)
|
Deferred payment on
acquisition
|
—
|
|
(60,560)
|
|
(60,560)
|
Investments in
affiliated companies and other companies, net
|
(2,268)
|
|
(2,583)
|
|
(1,828)
|
Proceeds from sale of
property, plant and equipment
|
10,192
|
|
19,137
|
|
25,745
|
Proceeds from sale of a
subsidiary and business operation
|
93,138
|
|
16,177
|
|
16,177
|
Proceeds from sale of
long-term deposits, net
|
116
|
|
133
|
|
481
|
Investment in
short-term deposits, net
|
1,972
|
|
(396)
|
|
5,899
|
Net cash used in
investing activities
|
(7,506)
|
|
(481,656)
|
|
(587,721)
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Issuance of
shares
|
21
|
|
1
|
|
20
|
Repayment of long-term
loans
|
(4,208)
|
|
(67,613)
|
|
(536,062)
|
Proceeds from long-term
bank loans
|
38,776
|
|
475,328
|
|
476,273
|
Repayment of Series B,
C and D Notes
|
(65,374)
|
|
—
|
|
—
|
Issuance of series B,
C, and D Notes, net of issuance costs
|
—
|
|
—
|
|
575,249
|
Dividends
paid
|
(42,483)
|
|
(58,842)
|
|
(79,175)
|
Change in short-term
bank credit and loans, net
|
202,523
|
|
(91,722)
|
|
(285,317)
|
Net cash provided by
financing activities
|
129,255
|
|
257,152
|
|
150,988
|
NET DECREASE IN CASH
AND CASH EQUIVALENTS
|
(11,721)
|
|
(67,371)
|
|
(19,801)
|
CASH AND CASH
EQUIVALENTS AT THE BEGINNING OF THE PERIOD
|
258,993
|
|
278,794
|
|
278,794
|
CASH AND CASH
EQUIVALENTS AT THE END OF THE PERIOD
|
$
247,272
|
|
$
211,423
|
|
$
258,993
|
|
|
|
|
|
|
(*)
Dividend received from affiliated companies and
partnerships
|
$
8,985
|
|
$
13,759
|
|
$
30,323
|
ELBIT SYSTEMS
LTD.
|
DISTRIBUTION OF
REVENUES
|
(In millions of US
Dollars)
|
Consolidated
revenues by areas of operation:
|
|
Six
months
ended
June 30,
2022
|
|
%
|
|
Six
months
ended
June 30,
2021
|
|
%
|
|
Three
months
ended
June 30,
2022
|
|
%
|
|
Three
months
ended
June 30,
2021
|
|
%
|
Airborne
systems
|
$ 1,006.2
|
|
37.9 %
|
|
$
928.0
|
|
38.3 %
|
|
$
504.9
|
|
38.7 %
|
|
$
516.9
|
|
39.7 %
|
Land systems
|
568.9
|
|
21.4 %
|
|
584.4
|
|
24.1 %
|
|
268.6
|
|
20.6 %
|
|
284.3
|
|
21.8 %
|
C4ISR
systems
|
772.9
|
|
29.1 %
|
|
602.3
|
|
24.9 %
|
|
387.6
|
|
29.7 %
|
|
342.2
|
|
26.3 %
|
Electro-optic
systems
|
235.0
|
|
8.8 %
|
|
202.9
|
|
8.4 %
|
|
115.2
|
|
8.8 %
|
|
105.7
|
|
8.1 %
|
Other (mainly
non-defense
engineering and production
services)
|
73.2
|
|
2.8 %
|
|
103.1
|
|
4.3 %
|
|
27.1
|
|
2.2 %
|
|
53.3
|
|
4.1 %
|
Total
|
$ 2,656.2
|
|
100.0 %
|
|
$ 2,420.7
|
|
100.0 %
|
|
$ 1,303.4
|
|
100.0 %
|
|
$ 1,302.4
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
revenues by geographical regions:
|
|
Six months
ended
June 30,
2022
|
|
%
|
|
Six months
ended
June 30,
2021
|
|
%
|
|
Three
months
ended
June 30,
2022
|
|
%
|
|
Three
months
ended
June 30,
2021
|
|
%
|
Israel
|
$
547.2
|
|
20.6 %
|
|
$
552.9
|
|
22.8 %
|
|
$
261.6
|
|
20.1 %
|
|
$
268.9
|
|
20.6 %
|
North
America
|
703.9
|
|
26.5 %
|
|
793.8
|
|
32.8 %
|
|
341.4
|
|
26.2 %
|
|
443.9
|
|
34.1 %
|
Europe
|
511.9
|
|
19.3 %
|
|
393.6
|
|
16.3 %
|
|
257.3
|
|
19.7 %
|
|
208.1
|
|
16.0 %
|
Asia-Pacific
|
778.0
|
|
29.3 %
|
|
572.7
|
|
23.7 %
|
|
375.7
|
|
28.8 %
|
|
343.2
|
|
26.4 %
|
Latin
America
|
34.0
|
|
1.3 %
|
|
62.8
|
|
2.6 %
|
|
20.8
|
|
1.6 %
|
|
27.5
|
|
2.1 %
|
Other
countries
|
81.2
|
|
3.0 %
|
|
44.9
|
|
1.8 %
|
|
46.6
|
|
3.6 %
|
|
10.8
|
|
0.8 %
|
Total
|
$ 2,656.2
|
|
100.0 %
|
|
$ 2,420.7
|
|
100.0 %
|
|
$ 1,303.4
|
|
100.0 %
|
|
$ 1,302.4
|
|
100.0 %
|
View original
content:https://www.prnewswire.com/news-releases/elbit-systems-reports-second-quarter-2022-results-301606365.html
SOURCE Elbit Systems Ltd.