Backlog of orders at $16.1 billion; Revenues of $1.5 billion;
Non-GAAP net income of $70.2; GAAP net income of $62.4 million;
Non-GAAP net EPS of $1.57; GAAP net EPS of $1.40
HAIFA,
Israel, Aug. 15, 2023 /PRNewswire/ -- Elbit
Systems Ltd. ("Elbit Systems" or the "Company") (NASDAQ: ESLT)
(TASE: ESLT), the international high technology defense
company, reported today its consolidated results for the second
quarter ended June 30, 2023.
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 3 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:
"Double digit revenue growth in the second quarter reflects the
conversion of the order backlog, increased capacity and sustained
demand for our solutions from customers around the world.
We have started to deliver the initial benefits of our
operational improvement program with an increase in operating
profitability in recent quarters, that also benefited from the
easing of supply chain and labor market pressures, as anticipated.
Our financial expenses in the first half mainly reflect increased
interest rates.
Elbit Systems' portfolio of market leading technological
solutions and growing global presence combined with an innovative
culture and the resilience demonstrated by our employees in recent
years should support the long term outlook."
Second quarter 2023 results:
Revenues in the second quarter of 2023 were
$1,453.9 million, as compared to
$1,303.4 million in the second
quarter of 2022.
Aerospace revenues increased by 19%, to $487.0 million in the second quarter of 2023
from $408.9 million in the
second quarter of 2022, mainly due to growth in Training &
Simulation sales in Europe.
C4I and Cyber revenues increased by 1%, to $168.7 million in the second quarter of 2023
from $167.3 million in the
second quarter of 2022.
ISTAR and EW revenues increased by 21%, to $292.7 million in the second quarter of 2023
from $241.5 million in the
second quarter of 2022, mainly due to European Electronic Warfare
sales.
Land revenues increased by 3%, to $294.1 million in the second quarter of 2023
from $284.9 million in the
second quarter of 2022, mainly due to armored vehicle upgrades and
ammunition sales.
Elbit Systems of America revenues increased by 7% to
$355.3 million in the second quarter
of 2023 compared to $330.6 million in
the second quarter of 2022 due to growth in night vision sales.
For distribution of revenues by segments and geographic regions
see the tables on page 11.
Non-GAAP(*) gross profit amounted to
$378.8 million (26.1% of
revenues) in the second quarter of 2023, as compared to
$345.9 million (26.5% of
revenues) in the second quarter of 2022. GAAP gross profit
in the second quarter of 2023 was $372.2 million (25.6% of revenues), as
compared to $339.7 million
(26.1% of revenues) in the second quarter of 2022.
Research and development expenses, net were
$93.4 million (6.4% of revenues)
in the second quarter of 2023, as compared to $96.4 million (7.4% of revenues) in the
second quarter of 2022.
Marketing and selling expenses, net were $101.7 million (7.0% of revenues) in the second
quarter of 2023, as compared to $82.8
million (6.4% of revenues) in the second quarter of
2022.
General and administrative expenses, net were
$75.4 million (5.2% of revenues) in
the second quarter of 2023, as compared to $72.7 million (5.6% of revenues) in the second
quarter of 2022.
Non-GAAP(*) operating income was $112.2 million (7.7% of revenues) in the
second quarter of 2023, as compared to $103.3 million (7.9% of revenues) in the
second quarter of 2022. GAAP operating income in the second
quarter of 2023 was $101.6 million (7.0% of revenues), as
compared to $115.1 million (8.8%
of revenues) in the second quarter of 2022.
Financial expenses, net were $32.1 million in the second quarter of 2023,
as compared to $9.3 million in
the second quarter of 2022. The financial expenses in 2023 were
higher as a result of the significant increase in interest
rates.
Taxes on income were $9.2 million in the second quarter of 2023,
as compared to $12.8 million in the
second quarter of 2022.
Non-GAAP(*) net income attributable to the
Company's shareholders in the second quarter of 2023 was
$70.2 million (4.8% of
revenues), as compared to $76.9 million (5.9% of revenues) in the
second quarter of 2022. GAAP net income attributable to
the Company's shareholders in the second quarter of 2023 was
$62.4 million (4.3% of
revenues), as compared to $81.2 million (6.2% of revenues) in the
second quarter of 2022. Net income in the second quarter of 2022
included capital gains from sale of our shares in a subsidiary in
Israel and sale of a building in
Israel.
Non-GAAP(*) diluted net earnings per share
attributable to the Company's shareholders were
$1.57 for the second quarter of 2023,
as compared to $1.73 for the second
quarter of 2022. GAAP diluted earnings per share attributable to
the Company's shareholders in the second quarter of 2023 were
$1.40, as compared to $1.82 in the second quarter of 2022.
* see page 3
The Company's backlog of orders as of June 30,
2023 totaled $16.1 billion.
Approximately 75% of the current backlog is attributable to orders
from outside Israel. Approximately 49% of the backlog is scheduled
to be performed during the remainder of 2023 and 2024.
Cash flows used in operating activities in the six
months ended June 30, 2023 were $210.7 million, as compared to $133.5 million in the six months ended
June 30, 2022. The cash flows in the first half of 2023 was
affected by the increase in inventories and trade receivables.
* Non-GAAP financial data:
The following non-GAAP financial data, including Adjusted gross
profit, Adjusted operating income, Adjusted net income, and
Adjusted diluted earnings per share, is presented to enable
investors to have additional information on our business
performance as well as a further basis for periodical comparisons
and trends relating to our financial results. We believe such data
provides useful information to investors and analysts by
facilitating more meaningful comparisons of our financial results
over time. The non-GAAP adjustments exclude amortization expenses
of intangible assets related to acquisitions that occurred mainly
in prior periods, capital gains related primarily to the sale of
investments, revaluations of investments in affiliated companies,
non-operating foreign exchange gains or losses, one-time tax
expenses, and the effect of tax on each of these items. We present
these non-GAAP financial measures because management believes they
supplement and/or enhance management's, analysts' and investors'
overall understanding of the Company's underlying financial
performance and trends and facilitate comparisons among current,
past, and future periods.
Specifically, management uses Adjusted gross profit, Adjusted
operating income, and Adjusted net income attributable to the
Company's shareholders to measure the ongoing gross profit,
operating profit and net income performance of the Company because
the measure adjusts for more significant non-recurring items,
amortization expenses of intangible assets relating to prior
acquisitions, and non-cash expense which can fluctuate year to
year.
We believe Adjusted gross profit, Adjusted operating income, and
Adjusted net income attributable to the Company's shareholders are
useful to existing shareholders, potential shareholders and other
users of our financial information because they provide measures of
the Company's ongoing performance that enable these users to
perform trend analysis using comparable data.
Management uses Adjusted diluted earnings per share to evaluate
further adjusted net income attributable to the Company's
shareholders while considering changes in the number of diluted
shares over comparable periods.
We believe adjusted diluted earnings per share is useful to
existing shareholders, potential shareholders and other users of
our financial information because it also enables these users to
evaluate adjusted net income attributable to Company's shareholders
on a per-share basis.
The non-GAAP measures used by the Company are not based on any
comprehensive set of accounting rules or principles. We believe
that non-GAAP measures have limitations in that they do not reflect
all of the amounts associated with our results of operations, as
determined in accordance with GAAP, and that these measures should
only be used to evaluate our results of operations in conjunction
with the corresponding GAAP measures.
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. They
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, 2023
|
|
Six months
ended June
30, 2022
|
|
Three
months
ended
June 30,
2023
|
|
Three
months
ended
June 30,
2022
|
|
Year ended
December
31, 2022
|
GAAP gross
profit
|
$
733.7
|
|
$
666.7
|
|
$
372.2
|
|
$
339.7
|
|
$
1,373.3
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets(*)
|
13.6
|
|
12.6
|
|
6.6
|
|
6.2
|
|
31.7
|
Non-GAAP gross
profit
|
$
747.3
|
|
$
679.3
|
|
$
378.8
|
|
$
345.9
|
|
$
1,405.0
|
Percent of
revenues
|
26.2 %
|
|
25.6 %
|
|
26.1 %
|
|
26.5 %
|
|
25.5 %
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
195.5
|
|
$
173.7
|
|
$
101.6
|
|
$
115.1
|
|
$
367.5
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets(*)
|
21.8
|
|
26.3
|
|
10.6
|
|
15.4
|
|
49.2
|
Capital gain
|
—
|
|
(30.9)
|
|
—
|
|
(27.2)
|
|
(31.5)
|
Non-recurring gain
related to grants
|
—
|
|
—
|
|
—
|
|
—
|
|
(28.6)
|
Non-GAAP operating
income
|
$
217.3
|
|
$
169.1
|
|
$
112.2
|
|
$
103.3
|
|
$
356.6
|
Percent of
revenues
|
7.6 %
|
|
6.4 %
|
|
7.7 %
|
|
7.9 %
|
|
6.5 %
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to Elbit Systems' shareholders
|
$
124.4
|
|
$
133.9
|
|
$
62.4
|
|
$
81.2
|
|
$
275.4
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets(*)
|
21.8
|
|
26.3
|
|
10.6
|
|
15.4
|
|
49.2
|
Non-recurring gain
related to grants
|
—
|
|
—
|
|
—
|
|
—
|
|
(28.6)
|
Capital gain
|
—
|
|
(20.0)
|
|
—
|
|
(16.3)
|
|
(20.5)
|
Revaluation of
investment measured under fair value method
|
—
|
|
—
|
|
—
|
|
—
|
|
10.2
|
Non-operating foreign
exchange (gains) losses
|
2.4
|
|
(8.4)
|
|
(1.4)
|
|
(3.7)
|
|
(10.5)
|
Tax effect and other
tax items, net
|
(2.8)
|
|
(0.6)
|
|
(1.4)
|
|
0.3
|
|
(6.3)
|
Non-GAAP net income
attributable to Elbit Systems' shareholders
|
$
145.8
|
|
$
131.2
|
|
$
70.2
|
|
$
76.9
|
|
$
268.9
|
Percent of
revenues
|
5.1 %
|
|
4.9 %
|
|
4.8 %
|
|
5.9 %
|
|
4.9 %
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
EPS
|
$
2.79
|
|
$
3.01
|
|
$
1.40
|
|
$
1.82
|
|
$
6.18
|
Adjustments,
net
|
0.48
|
|
(0.06)
|
|
0.17
|
|
(0.09)
|
|
(0.15)
|
Non-GAAP diluted net
EPS
|
$
3.27
|
|
$
2.95
|
|
$
1.57
|
|
$
1.73
|
|
$
6.03
|
(*) While amortization of
acquired intangible assets is excluded from the measures, the
revenue of the acquired companies is reflected in the measures and
the acquired assets contribute to revenue generation.
Recent Events:
On June 12, 2023, 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 and
reaffirmed the Notes' "ilAA" (on local scaling) rating with a
stable outlook.
On June 20, 2023, the
Company announced that pursuant to Article 23(d) of its Articles of
Association, the Company's Board of Directors resolved to appoint
Mr. Ehud (Udi) Adam as a member of
the board, effective as of June 25,
2023, and until the next annual meeting of the Company's
shareholders. As of June 25, 2023,
Mr. Yoram Ben-Zeev will no longer
serve as a director of Elbit Systems, having completed nine years
of service as an Independent Director provided by the Israeli
Companies Law.
On June 21, 2023, the
Company announced, further to its announcement of December 21, 2022, that it received a first
purchase order worth approximately $180
million to supply the first three out of a maximum seven
Watchkeeper X tactical Unmanned Aerial Systems (UAS) as part of a
framework contract with the Romanian Ministry of National Defense
with a maximum value of approximately $410
million (1.89 billion Lei). The purchase order will be
performed over a period of two years.
On July 10, 2023, the
Company announced that it was awarded a contract worth
approximately $114 million with an
Asian-Pacific country to supply two long-range patrol aircraft
(LRPA) equipped with an advanced and comprehensive mission suite.
The contract will be carried out over a period of five years.
On July 18, 2023, the
Company announced that it was awarded a $150
million contract to supply PULS™ (Precise and Universal
Launching Systems) rocket launchers and a package of
precision-guided long-range rockets to an international customer.
The contract will be performed over a period of three years.
On 31 July, 2023, the
Company announced that it was awarded a contract worth
approximately $60 million to supply
thousands of 155mm artillery shells to the Israel Defense Forces'
Artillery Corps. The contract will be performed over a period of
one year.
On 9 August, 2023, the
Company announced that at its Annual General Meeting of
Shareholders held on August 8, 2023
at the Company's offices in Haifa
(the "Meeting"), the proposed resolutions described in the Proxy
Statement to the Shareholders dated June 27,
2023 and detailed hereunder, were approved by the respective
required majority:
- "to 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, Mr. Ehud (Udi)
Adam, Mrs. Rina Baum, Mr.
David Federmann, Mrs. Tzipi Livni, Mr. Dov Ninveh and Prof. Ehood
(Udi) Nisan;
- to re-elect Mr. Noaz Bar-Nir to an additional three-year
term as an External Director;
- to approve the extension of the indemnification letters of Mr.
Michael Federmann and Mr. David
Federmann, for an additional three years commencing on
December 1, 2023;
- to approve the extension of the exemption letters of Mr.
Michael Federmann and Mr. David
Federmann, for an additional three years commencing on
April 7, 2024; 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,
2023, and until the close of the next Annual General Meeting
of Shareholders."
Mr. David Federmann was appointed
Chair of the Company's board of directors as of the close of the
Meeting.
Dividend:
The Board of Directors declared a dividend of $0.50 per share. The dividend's record date is
October 10, 2023. The dividend will
be paid on October 23, 2023, after
deduction of withholding tax, at the rate of 16.8%.
Conference Call:
The Company will be hosting a conference call today, Tuesday,
August 15, 2023, 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 flows
Consolidated revenue distribution by geographical regions and by
segments
Company
Contact:
Dr. Yaacov (Kobi)
Kagan, EVP & Chief Financial Officer
Tel:
+972-77-2946663
kobi.kagan@elbitsystems.com
Rami Myerson,
Director, Investor Relations
Tel:
+972-77-2948984
rami.myerson@elbitsystems.com
Dalia Bodinger,
VP, Communications & Brand
Tel:
+972-77-2947602
dalia.bodinger@elbitsystems.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
Dollars)
|
|
As of
June 30,
2023
(Unaudited)
|
|
As of
December 31,
2022
(Audited)
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
111,680
|
|
$
211,108
|
Short-term bank
deposits
|
26,435
|
|
1,040
|
Trade and unbilled
receivables and contract assets, net
|
2,771,373
|
|
2,574,605
|
Other receivables and
prepaid expenses
|
297,406
|
|
298,698
|
Inventories,
net
|
2,215,706
|
|
1,946,326
|
Total current
assets
|
5,422,600
|
|
5,031,777
|
|
|
|
|
Investments in
affiliated companies, partnerships and other companies
|
165,287
|
|
159,604
|
Long-term trade and
unbilled receivables and contract assets
|
311,652
|
|
374,054
|
Long-term bank deposits
and other receivables
|
86,651
|
|
112,525
|
Deferred income taxes,
net
|
26,482
|
|
20,025
|
Severance pay
fund
|
209,137
|
|
227,786
|
Total
|
799,209
|
|
893,994
|
|
|
|
|
Operating lease right
of use assets
|
422,251
|
|
405,446
|
Property, plant and
equipment, net
|
1,011,767
|
|
949,207
|
Goodwill and other
intangible assets, net
|
1,903,678
|
|
1,935,227
|
Total assets
|
$
9,559,505
|
|
$
9,215,651
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Short-term bank credit
and loans
|
$
693,347
|
|
$
115,076
|
Current maturities of
long-term loans and Series B, C and D Notes
|
74,055
|
|
76,555
|
Operating lease
liabilities
|
64,227
|
|
69,322
|
Trade
payables
|
1,058,559
|
|
1,067,818
|
Other payables and
accrued expenses
|
1,208,126
|
|
1,171,357
|
Contract
liabilities
|
1,808,462
|
|
1,777,161
|
Total current
liabilities
|
4,906,776
|
|
4,277,289
|
|
|
|
|
Long-term loans, net of
current maturities
|
40,685
|
|
264,541
|
Series B, C and D
Notes, net of current maturities
|
337,479
|
|
415,537
|
Employee benefit
liabilities
|
582,726
|
|
618,088
|
Deferred income taxes
and tax liabilities, net
|
62,579
|
|
72,965
|
Contract
liabilities
|
200,806
|
|
217,075
|
Operating lease
liabilities
|
354,509
|
|
344,585
|
Other long-term
liabilities
|
279,459
|
|
247,896
|
Total long-term
liabilities
|
1,858,243
|
|
2,180,687
|
|
|
|
|
Elbit Systems Ltd.'s
equity
|
2,792,270
|
|
2,755,221
|
Non-controlling
interests
|
2,216
|
|
2,454
|
Total equity
|
2,794,486
|
|
2,757,675
|
Total liabilities and
equity
|
$
9,559,505
|
|
$
9,215,651
|
ELBIT SYSTEMS
LTD.
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(In thousands of US
Dollars, except for share and per share amounts)
|
|
Six months
ended June
30, 2023
(Unaudited)
|
|
Six months
ended June
30, 2022
(Unaudited)
|
|
Three
months
ended June
30, 2023
(Unaudited)
|
|
Three
months
ended June
30, 2022
(Unaudited)
|
|
Year ended
December 31,
2022
|
(Audited)
|
Revenues
|
$
2,847,383
|
|
$
2,656,179
|
|
$
1,453,895
|
|
$
1,303,374
|
|
$
5,511,549
|
Cost of
revenues
|
2,113,711
|
|
1,989,507
|
|
1,081,739
|
|
963,647
|
|
4,138,266
|
Gross profit
|
733,672
|
|
666,672
|
|
372,156
|
|
339,727
|
|
1,373,283
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development, net
|
203,750
|
|
197,032
|
|
93,432
|
|
96,353
|
|
435,650
|
Marketing and selling,
net
|
181,878
|
|
169,754
|
|
101,718
|
|
82,779
|
|
326,020
|
General and
administrative, net
|
152,564
|
|
157,054
|
|
75,424
|
|
72,730
|
|
313,047
|
Other operating income,
net
|
—
|
|
(30,900)
|
|
—
|
|
(27,249)
|
|
(68,918)
|
Total operating
expenses
|
538,192
|
|
492,940
|
|
270,574
|
|
224,613
|
|
1,005,799
|
Operating
income
|
195,480
|
|
173,732
|
|
101,582
|
|
115,114
|
|
367,484
|
|
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
(56,269)
|
|
(8,209)
|
|
(32,057)
|
|
(9,290)
|
|
(51,364)
|
Other expense,
net
|
(3,524)
|
|
(13,918)
|
|
(1,678)
|
|
(12,091)
|
|
(23,562)
|
Income before income
taxes
|
135,687
|
|
151,605
|
|
67,847
|
|
93,733
|
|
292,558
|
Taxes on
income
|
(17,943)
|
|
(20,745)
|
|
(9,248)
|
|
(12,776)
|
|
(24,131)
|
Income after taxes on
income
|
117,744
|
|
130,860
|
|
58,599
|
|
80,957
|
|
268,427
|
|
|
|
|
|
|
|
|
|
|
Equity in net earnings
(losses) of
affiliated companies and partnerships
|
6,852
|
|
2,910
|
|
3,824
|
|
(135)
|
|
7,042
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
124,596
|
|
$
133,770
|
|
$
62,423
|
|
$
80,822
|
|
$
275,469
|
|
|
|
|
|
|
|
|
|
|
Less: net (income)
losses attributable to
non-controlling interests
|
(176)
|
|
161
|
|
(72)
|
|
345
|
|
(21)
|
Net income
attributable to Elbit
Systems Ltd.'s shareholders
|
$
124,420
|
|
$
133,931
|
|
$
62,351
|
|
$
81,167
|
|
$
275,448
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to
Elbit Systems Ltd.'s
shareholders:
|
|
|
|
|
|
|
|
|
|
Basic net earnings per
share
|
$
2.81
|
|
$
3.02
|
|
$
1.41
|
|
$
1.83
|
|
$
6.21
|
Diluted net earnings
per share
|
$
2.79
|
|
$
3.01
|
|
$
1.40
|
|
$
1.82
|
|
$
6.18
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares
used in computation of:
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share (in thousands)
|
44,346
|
|
44,304
|
|
44,348
|
|
44,321
|
|
44,322
|
Diluted earnings per
share (in
thousands)
|
44,548
|
|
44,552
|
|
44,637
|
|
44,580
|
|
44,581
|
ELBIT SYSTEMS
LTD.
|
CONSOLIDATED
STATEMENTS OF CASH FLOW
|
(In thousands of US
Dollars)
|
|
Six months
ended June
30, 2023
(Unaudited)
|
|
Six months
ended June
30, 2022
(Unaudited)
|
|
Year ended
December
31, 2022
|
(Audited)
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net income
|
$
124,596
|
|
$
133,770
|
|
$
275,469
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
80,735
|
|
81,874
|
|
161,290
|
Stock-based
compensation
|
6,761
|
|
3,729
|
|
10,463
|
Amortization of series
B, C and D related issuance costs, net
|
311
|
|
410
|
|
773
|
Deferred income taxes
and reserve, net
|
(448)
|
|
(5,442)
|
|
(2,219)
|
Gain on sale of
property, plant and equipment
|
(232)
|
|
(8,805)
|
|
(18,995)
|
Gain on sale of
investment, remeasurement of investment held under fair value
method
|
—
|
|
(17,318)
|
|
(7,360)
|
Equity in net
(earnings) losses of affiliated companies and partnerships, net of
dividend
received (*)
|
(1,808)
|
|
6,075
|
|
11,368
|
Changes in operating
assets and liabilities, net of amounts acquired:
|
|
|
|
|
|
Decrease (increase) in
trade and unbilled receivables and prepaid expenses
|
(109,320)
|
|
(61,009)
|
|
97,151
|
Increase in
inventories, net
|
(269,281)
|
|
(178,274)
|
|
(305,058)
|
Decrease in trade
payables and other payables and accrued expenses
|
(43,738)
|
|
(73,274)
|
|
(123,289)
|
Severance, pension and
termination indemnities, net
|
(13,337)
|
|
(53,976)
|
|
(51,689)
|
Increase in contract
liabilities
|
15,032
|
|
38,770
|
|
192,164
|
Net cash (used in)
provided by operating activities
|
(210,729)
|
|
(133,470)
|
|
240,068
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Purchase of property,
plant and equipment and other assets
|
(97,237)
|
|
(107,266)
|
|
(205,110)
|
Acquisition of
subsidiaries, net of cash assumed
|
(10,380)
|
|
(3,390)
|
|
(12,430)
|
Deferred payment on
acquisition
|
—
|
|
—
|
|
(50,749)
|
Investments in
affiliated companies and other companies, net
|
(1,035)
|
|
(2,268)
|
|
(4,466)
|
Proceeds from sale of
property, plant and equipment
|
590
|
|
10,192
|
|
24,882
|
Proceeds from sale of a
subsidiary and business operation
|
—
|
|
93,138
|
|
93,138
|
Proceeds from
(investment in) short-term deposits, net
|
(25,584)
|
|
1,972
|
|
2,567
|
Proceeds from sale of
long-term deposits, net
|
83
|
|
116
|
|
186
|
Net cash used in
investing activities
|
(133,563)
|
|
(7,506)
|
|
(151,982)
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Issuance of
shares
|
1
|
|
21
|
|
24
|
Repayment of long-term
loans
|
(226,118)
|
|
(4,208)
|
|
(122,353)
|
Proceeds from long-term
bank loans
|
—
|
|
38,776
|
|
39,547
|
Repayment of Series B,
C and D Notes
|
(62,434)
|
|
(65,374)
|
|
(65,379)
|
Dividends paid
(**)
|
(44,857)
|
|
(42,483)
|
|
(86,813)
|
Change in short-term
bank credit and loans, net
|
578,272
|
|
202,523
|
|
99,003
|
Net cash (used in)
provided by financing activities
|
244,864
|
|
129,255
|
|
(135,971)
|
NET DECREASE IN CASH
AND CASH EQUIVALENTS
|
(99,428)
|
|
(11,721)
|
|
(47,885)
|
CASH AND CASH
EQUIVALENTS AT THE BEGINNING OF THE PERIOD
|
$
211,108
|
|
$
258,993
|
|
$
258,993
|
CASH AND CASH
EQUIVALENTS AT THE END OF THE PERIOD
|
$
111,680
|
|
$
247,272
|
|
$
211,108
|
|
|
|
|
|
|
(*)
Dividend received from affiliated companies and
partnerships
|
$
5,044
|
|
$
8,985
|
|
$
18,409
|
(**) Dividends paid during 2023 included
approximately $500 dividends paid by
subsidiaries to non-controlling interests.
ELBIT SYSTEMS
LTD.
|
DISTRIBUTION OF
REVENUES
|
(In millions of US
Dollars)
|
Consolidated
revenues by geographical regions:
|
|
Six months
ended
June 30,
2023
|
|
%
|
|
Six months
ended
June 30,
2022
|
|
%
|
|
Three
months
ended
June 30,
2023
|
|
%
|
|
Three
months
ended
June 30,
2022
|
|
%
|
|
Year
ended
December
31, 2022
|
|
%
|
Israel
|
$
499.9
|
|
17.6
|
|
$
547.2
|
|
20.6
|
|
$
244.5
|
|
16.8
|
|
$
261.6
|
|
20.1
|
|
$
1,071.9
|
|
19.4
|
North
America
|
690.0
|
|
24.2
|
|
703.9
|
|
26.5
|
|
337.7
|
|
23.2
|
|
341.4
|
|
26.2
|
|
1,489.7
|
|
27.0
|
Europe
|
832.9
|
|
29.3
|
|
511.9
|
|
19.3
|
|
464.1
|
|
31.9
|
|
257.3
|
|
19.7
|
|
1,243.6
|
|
22.6
|
Asia-Pacific
|
653.9
|
|
23.0
|
|
778.0
|
|
29.3
|
|
315.3
|
|
21.7
|
|
375.7
|
|
28.8
|
|
1,405.5
|
|
25.5
|
Latin
America
|
58.2
|
|
2.0
|
|
34.0
|
|
1.3
|
|
28.0
|
|
1.9
|
|
20.8
|
|
1.6
|
|
119.9
|
|
2.2
|
Other
countries
|
112.5
|
|
3.9
|
|
81.2
|
|
3.0
|
|
64.3
|
|
4.5
|
|
46.6
|
|
3.6
|
|
180.9
|
|
3.3
|
Total
revenue
|
$
2,847.4
|
|
100.0
|
|
$
2,656.2
|
|
100.0
|
|
$
1,453.9
|
|
100.0
|
|
$
1,303.4
|
|
100.0
|
|
$
5,511.5
|
|
100.0
|
Consolidated
revenues by segments:
|
|
Six months
ended
June 30,
2023
|
|
Six months
ended
June 30,
2022
|
|
Three months
ended
June 30,
2023
|
|
Three months
ended
June 30,
2022
|
|
Year ended
December 31,
|
2022
|
Aerospace
|
|
|
|
|
|
|
|
|
|
External
customers
|
$
784.1
|
|
$
756.0
|
|
$
421.9
|
|
$
350.0
|
|
$
1,471.1
|
Intersegment
revenue
|
123.7
|
|
117.9
|
|
65.1
|
|
58.9
|
|
262.1
|
Total
|
907.8
|
|
873.9
|
|
487.0
|
|
408.9
|
|
1,733.2
|
C4I and
Cyber
|
|
|
|
|
|
|
|
|
|
External
customers
|
318.9
|
|
291.3
|
|
157.1
|
|
156.0
|
|
631.3
|
Intersegment
revenue
|
25.5
|
|
24.0
|
|
11.6
|
|
11.3
|
|
47.1
|
Total
|
344.4
|
|
315.3
|
|
168.7
|
|
167.3
|
|
678.4
|
ISTAR and EW
|
|
|
|
|
|
|
|
|
|
External
customers
|
492.7
|
|
426.6
|
|
243.4
|
|
210.3
|
|
882.2
|
Intersegment
revenue
|
94.7
|
|
66.4
|
|
49.3
|
|
31.2
|
|
163.4
|
Total
|
587.4
|
|
493.0
|
|
292.7
|
|
241.5
|
|
1,045.6
|
Land
|
|
|
|
|
|
|
|
|
|
External
customers
|
554.7
|
|
509.1
|
|
276.2
|
|
256.5
|
|
1,075.8
|
Intersegment
revenue
|
40.8
|
|
55.2
|
|
17.9
|
|
28.4
|
|
92.7
|
Total
|
595.5
|
|
564.3
|
|
294.1
|
|
284.9
|
|
1,168.5
|
ESA
|
|
|
|
|
|
|
|
|
|
External
customers
|
697.0
|
|
673.2
|
|
355.3
|
|
330.6
|
|
1,451.1
|
Intersegment
revenue
|
3.7
|
|
1.3
|
|
—
|
|
—
|
|
5.6
|
Total
|
700.7
|
|
674.5
|
|
355.3
|
|
330.6
|
|
1,456.7
|
Revenues
|
|
|
|
|
|
|
|
|
|
Total revenues
(external customers
and intersegment) for reportable
segments
|
3,135.8
|
|
2,921.0
|
|
1,597.8
|
|
1,433.2
|
|
6,082.4
|
Less - Intersegment
revenue
|
(288.4)
|
|
(264.8)
|
|
(143.9)
|
|
(129.8)
|
|
(570.9)
|
Total
revenues
|
$
2,847.4
|
|
$
2,656.2
|
|
$
1,453.9
|
|
$
1,303.4
|
|
$
5,511.5
|
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SOURCE Elbit Systems Ltd.