HAIFA, Israel, November 18 /PRNewswire-FirstCall/ -- - Revenues
Increased by 9.1% YoY to $732.5 Million; - Net income Increased by
63.7% YoY to $58.3 Million; - Diluted net Earnings per Share
Increased by 62.7% to $1.35 Elbit Systems Ltd. (the "Company")
(NASDAQ:ESLTNASDAQ:TASE:NASDAQ:ESLT), the international defense
electronics company, today reported its consolidated financial
results for the third quarter ended September 30, 2009. (Logo:
http://www.newscom.com/cgi-bin/prnh/20080408/300441 ) Revenues
increased by 9.1% to $732.5 million in the third quarter of 2009,
as compared to $671.2 million in the third quarter of 2008. The
Company's revenues in the Electro-optics area of operations
increased in the third quarter of 2009 compared with that of the
third quarter of 2008, mainly as a result of increased sales of
night vision equipment. Gross profit increased by 8.9% to $217.3
million (29.7% of revenues) in the third quarter of 2009, as
compared with gross profit of $199.5 million (29.7% of revenues) in
the third quarter of 2008. Net research and development ("R&D")
expenses were $56 million (7.6% of revenues) in the third quarter
of 2009, as compared to $45 million (6.7% of revenues) in the third
quarter of 2008. The higher level of R&D expenses in the third
quarter of 2009 reflected increased efforts on development and
adaptations of products and systems to market requirements.
Marketing and selling expenses were $67.1 million (9.2% of
revenues) in the third quarter of 2009, as compared to $50.3
million (7.5% of revenues) in the third quarter of 2008. The
increased level of marketing and selling expenses in the quarter
reflected enhanced efforts by the Company in pursuit of a wide
range of business opportunities in various markets. General and
administrative ("G&A") expenses were $28.5 million (3.9% of
revenues) in the third quarter of 2009, as compared to $25.8
million (3.9% of revenues) in the third quarter of 2008. Net
financial expenses were $0.6 million in the third quarter of 2009,
as compared to $16.1 million in the third quarter of 2008. The
decrease in 2009 was affected by the Company's hedging activity,
which reduced the Company's exposure to changes in the value of
U.S. Dollar versus the Israeli Shekel, as well as by decreased
interest rates in the market. Since our reporting currency is the
U.S. Dollar, the weakening of the U.S, Dollar against the Israeli
Shekel negatively impacted the Company's gross and operating
income; however, it also increased the value of the Company's
currency hedge derivatives in Israeli Shekels. Net financial
expenses in the third quarter of 2008 included the impact of a
write-off related to Auction Rate Securities ("ARS") in the amount
of approximately $6 million. Taxes on income were $11.4 million
(effective tax rate of 17.6%) in the third quarter of 2009, as
compared to taxes on income of $16.4 million (effective tax rate of
26.3%) in the third quarter of 2008. The change in the effective
tax rate was attributable mainly to the mix of the tax rates in the
various tax jurisdictions in which the Company's entities generate
taxable income. Equity in net earnings of affiliated companies and
partnership increased in the third quarter of 2009 to $6.2 million
(0.8% of revenues), as compared to $2.1 million (0.3% of revenues)
in the third quarter of 2008. This was a result of both growth in
revenues and operational improvements in those entities. Net income
attributable to non-controlling interests was $1.4 million in the
third quarter of 2009, as compared to $12.4 million in the third
quarter of 2008. The decrease in net income attributable to
non-controlling interests was mainly a result of the Company's
purchase during the second quarter of 2009 of the remaining 49% of
Kinetics Ltd.'s shares, making Kinetics a wholly-owned subsidiary.
Net income attributable to the Company's ordinary shareholders
increased in the third quarter of 2009 by 63.7% to $58.3 million
(8.0% of revenues), as compared with $35.6 million (5.3% of
revenues) in the third quarter of 2008. It should also be noted
that according to ASC 810-10 "Consolidation", which is applicable
to the Company's results starting from January 1, 2009,
consolidated net income attributable to the Company's ordinary
shareholders is calculated after eliminating net income or loss
attributable to non-controlling interests. Diluted net earnings per
share attributable to the Company's ordinary shareholders were
$1.35 for the third quarter of 2009, as compared with $0.83 for the
third quarter of 2008, an increase of 62.7%. The Company's backlog
of orders totaled $5,008 million as of September 30, 2009, as
compared with $5,030 million as of December 31, 2008. Approximately
66% of the current backlog is due to orders from outside Israel.
Approximately 57% of the current backlog is scheduled to be
performed during the remainder of 2009 and during 2010. Operating
cash flow was $127 million in the nine months ended September 30,
2009, as compared to $112.9 million in the nine months ended
September 30, 2008. Management Comment: "Our quarterly results
reflect continued growth in sales and revenues," commented Joseph
Ackerman, President and CEO of Elbit Systems. "We continued our
strategic process of enhancing our R&D activities, in order to
bring to market a broad range of mature and operationally ready
products and systems. This was in response to market demand for
mature products and systems allowing for rapid deployment. We are
seeing the fruits of our previous investments, which are
strengthening our competitive position in our areas of activities."
Mr. Ackerman continued, "We see emerging opportunities in existing
and new markets. We have increased our sales and marketing efforts
to capitalize on these opportunities through the realization of
business and operational synergies among the companies we have
acquired in recent years both in Israel and internationally. We
believe these efforts will help us maintain our continued growth
and technological leadership while achieving improved profitability
in the years ahead." Dividend: The Board of Directors declared a
dividend of $0.36 per share for the third quarter of 2009. The
dividend's record date is December 1, 2009, and the dividend will
be paid on December 14, 2009, net of taxes and levies, at the rate
of 16.03%. Conference Call The Company will host a conference call
today, Wednesday, November 18, 2009, at 9:00am EST. On the call,
management will review and discuss the Company's third quarter 2009
results and will be available to answer questions. To participate,
please call one of the teleconferencing numbers that follow. Please
begin placing your call at least 10 minutes before the conference
call commences. If you are unable to connect using the toll-free
numbers, please try the international dial-in number. US Dial-in
Numbers: 1-888-407-2553 UK Dial-in Number: 0-800-917-9141 ISRAEL
Dial-in Number: 03-918-0609 INTERNATIONAL Dial-in Number:
+972-3-918-0609 at: 9:00am Eastern Time; 6:00am Pacific Time;
2:00pm UK Time; 4:00pm Israel Time This call will also be broadcast
live on the Company's web-site at http://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: 1-888-326-9310 (US) or +972-3-925-5900 (Israel and
International). About Elbit Systems Elbit Systems Ltd. is an
international defense electronics company engaged in a wide range
of defense-related 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 air vehicle (UAV) systems,
advanced electro-optics, electro-optic space systems, EW suites,
airborne warning systems, ELINT systems, data links and military
communications systems and radios. The Company also focuses on the
upgrading of existing military platforms and the development of new
technologies for defense, homeland security and commercial aviation
applications. ---------------------- Attachments: Consolidated
balance sheet Consolidated statements of income Condense
consolidated statements of cash flow Consolidated revenue
distribution by areas of operation and by geographical regions
---------------------- This press release contains forward-looking
statements (within the meaning of Section 27A of the Securities Act
of 1933, as amended and Section 21E of the Securities Exchange Act
of 1934, as amended) regarding Elbit Systems Ltd., and/or its
subsidiaries (collectively the "Company"), to the extent such
statements do not relate to historical or current fact. Forward
looking statements are based on management's expectations,
estimates, projections and assumptions. 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 and uncertainties, the outcome of which is difficult
to predict. 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; differences in anticipated and actual program
performance, including the ability to perform under long-term
fixed-price contracts; 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. The Company does not
undertake to update its forward-looking statements. (FINANCIAL
TABLES TO FOLLOW) ELBIT SYSTEMS LTD. CONSOLIDATED BALANCE SHEETS
(In thousands of US Dollars) September 30 December 31 2009 2008
Unaudited Audited Assets Current assets: Cash and cash equivalents
154,529 204,670 Short term bank deposits 101,099 69,642 Available
for sale marketable securities 26,464 3,731 Trade receivables, net
559,373 477,010 Other receivables and pre-paid expenses 170,900
203,990 Inventories, net of advances 600,509 644,107 Total current
assets 1,612,874 1,603,150 Investment in affiliated companies and a
partnership 84,486 62,300 Long-term deposits and marketable
securities 38,628 34,355 Long-term receivables 5,699 6,390 Deferred
income taxes 8,558 9,201 Severance pay fund 268,232 236,928 405,603
349,174 Property and equipment, net 398,018 384,086 Goodwill and
other intangible assets, net 580,700 594,283 Total assets 2,997,195
2,930,693 Liabilities and Shareholders' Equity Short-term bank
credit and loans 833 15,413 Trade payables 286,287 340,315 Other
payables and accrued expenses 528,272 468,224 Advances from
customers, net 381,444 489,192 1,196,836 1,313,144 Long-term loans
429,203 269,760 Accrued termination liability 351,487 332,236
Deferred income taxes 67,593 70,068 Advances from customers 108,296
115,470 Other long-term liabilities 35,058 29,707 991,637 817,241
Elbit Systems Ltd.'s shareholders' equity 787,559 723,833
Non-controlling interests(*) 21,163 76,475 Total shareholders'
equity 808,722 800,308 Total liabilities and shareholders' equity
2,997,195 2,930,693 (*) The Company has adopted ASC 810-10
"Consolidation," as of January 1, 2009. Pursuant to ASC 810-10, net
income attributable to non-controlling interests is presented in
the statement of income as part of consolidated net income and then
shown on a separate line item as a reduction to arrive at net
income attributable to Elbit Systems Ltd., which is the equivalent
of "net income" presented in previous statements of income.
Cumulative net income attributable to non-controlling interests is
presented on the balance sheets as part of total shareholders'
equity and is shown on a separate line item. Total shareholders
equity, net of the cumulative net income attributable to
non-controling interests, represents the shareholders' equity
attributable to the company's ordinary shareholders equity, which
is the equivalent of "shareholders equity" presented in previous
balance sheets. ELBIT SYSTEMS LTD. CONSOLIDATED STATEMENTS OF
INCOME (In thousands of US Dollars, except for share and per share
amounts) Nine Months Ended Three Months Year Ended Ended September
30 September 30 December 31 2009 2008 2009 2008 2008 Unaudited
Audited Revenues 2,117,741 1,940,417 732,520 671,187 2,638,271 Cost
of revenues 1,480,302 1,374,326 515,219 471,691 1,870,830 Gross
profit 637,439 566,091 217,301 199,496 767,441 Operating expenses:
Research and development, net 154,910 121,109 56,022 44,985 184,984
Marketing and selling 191,561 156,395 67,096 50,336 198,274 General
and administrative 86,805 101,766 28,519 25,842 134,182 Acquired
IPR&D - - - - 1,000 Total operating expenses 433,276 379,270
151,637 121,163 518,440 Operating income 204,163 186,821 65,664
78,333 249,001 Financial expenses, net (8,165) (33,056) (564)
(16,083) (36,815) Other income (expenses),net (868) 4,230 (222) 17
94,294 Income before taxes on income 195,130 157,995 64,878 62,267
306,480 Taxes on income 37,696 28,089 11,448 16,405 54,367 157,434
129,906 53,430 45,862 252,113 Equity in net earnings of affiliated
companies and partnership 14,395 8,071 6,202 2,125 14,435
Consolidated net income 171,829 137,977 59,632 47,987 266,548 Less:
net income attributable to non-controlling interests(*) (10,598)
(39,073) (1,377) (12,391) (62,372) Net income attributable to Elbit
Systems Ltd. 161,231 98,904 58,255 35,596 204,176 Earnings per
share attributable to Elbit Systems Ltd.'s ordinary shareholders:
Basic net earnings per share 3.82 2.35 1.37 0.85 4.85 Diluted net
earnings per share 3.76 2.31 1.35 0.83 4.78 Weighted average number
of shares used in computation of basic earnings per share 42,241
42,073 42,426 42,078 42,075 Weighted average number of shares used
in computation of diluted earnings per share 42,897 42,852 43,233
42,813 42,758 (*) The Company has adopted ASC 810-10
"Consolidation," as of January 1, 2009. Pursuant to ASC 810-10, net
income attributable to non-controlling interests is presented in
the statement of income as part of consolidated net income and then
shown on a separate line item as a reduction to arrive at net
income attributable to Elbit Systems Ltd., which is the equivalent
of "net income" presented in previous statements of income.
Cumulative net income attributable to non-controlling interests is
presented on the balance sheets as part of total shareholders'
equity and is shown on a separate line item. Total shareholders
equity, net of the cumulative net income attributable to
non-controling interests, represents the shareholders' equity
attributable to the company's ordinary shareholders equity, which
is the equivalent of "shareholders equity" presented in previous
balance sheets. ELBIT SYSTEMS LTD. CONSOLIDATED STATEMENTS OF CASH
FLOW (In thousands of US Dollars) Nine Months Ended Year Ended
September 30, December 31, 2009 2008 2008 Unaudited Audited CASH
FLOWS FROM OPERATING ACTIVITIES Net income 161,231 98,904 204,176
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization 93,189 95,256
129,437 Write-off impairment - - 10,514 Acquired IPR&D - -
1,000 Other-than-temporary impairment of - 8,236 17,885 available
for sale marketable securities Stock based compensation 3,839 3,766
5,067 Deferred income taxes and reserve (4,824) (5,715) (8,488)
Severance, pension and termination indemnities, net (13,203) 14,692
15,211 Gain on sale of property, plant and equipment (468) (152)
(1) Minority interests in earnings (loss) of subsidiaries 10,598
39,073 62,372 Gain on sale of investments (120) - (100,031) Equity
in net losses (earnings) of affiliated companies and partnership,
net of dividend received (*) (2,668) 1,718 (1,866) Changes in
operating assets and liabilities: Decrease (increase) in short and
long-term receivables and prepaid expenses (41,871) 32,320 (39,698)
Decrease (increase) in inventories, net 44,913 (177,424) (169,482)
Increase in trade payables, other payables and accrued expenses
(8,233) 103,589 120,734 Decrease in advances received from
customers (115,360) (101,356) (37,402) Net cash provided by
operating activities 127,023 112,907 209,428 CASH FLOWS FROM
INVESTING ACTIVITIES Purchase of property, plant and equipment
(78,054) (103,391) (129,241) Acquisition of subsidiaries (124,033)
(4,785) (20,637) Investments in affiliated companies (21,794) (811)
(4,001) Proceeds from sale of property, plant and equipment 6,972
6,132 8,779 Proceeds from sale of investment - - 50,254 Investment
in short-term bank deposits, net (40,946) (6,659) (58,634)
Investment in long-term bank deposits, net (11,272) (7,054)
(18,227) Net cash used in investing activities (269,127) (116,568)
(171,707) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from
exercise of options 11,340 238 188 Repayment of long-term bank
loans (68,159) (223,255) (333,590) Receipt of long-term bank loans
217,115 168,211 183,211 Dividends paid (60,897) (23,765) (32,770)
Tax benefit in respect of options exercised - - 116 Change in
short-term bank credit and loans, net (7,436) - (13,008) Net cash
provided by (used in) financing activities 91,963 (78,571)
(195,853) NET DECREASE IN CASH AND CASH EQUIVALENTS (50,141)
(82,232) (158,132) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF
THE PERIOD 204,670 362,802 362,802 CASH AND CASH EQUIVALENTS AT THE
END OF THE PERIOD 154,529 280,570 204,670 * Dividend received
11,727 9,789 12,569 ELBIT SYSTEMS LTD. DISTRIBUTION OF REVENUES
Consolidated revenues by areas of operation: Nine Months Ended
Three Months Ended September 30 September 30 2009 2008 2009 2008 $
% $ % $ % $ % millions millions millions millions Airborne 513.3
24.2 474.5 24.5 166.7 22.8 161.7 24.1 systems Land systems 384.4
18.2 432.0 22.2 132.2 18.1 122.7 18.3 C4ISR systems 819.7 38.7
714.3 36.8 289.6 39.5 297.8 44.3 Electro-optics 307.9 14.5 225.3
11.6 117.5 16.0 63.7 9.5 Other (mainly non-defense engineering and
production services) 92.4 4.4 94.3 4.9 26.5 3.6 25.3 3.8 Total
2,117.7 100.0 1,940.4 100.0 732.5 100.0 671.2 100.0 Consolidated
revenues by geographical regions: Nine Months Ended Three Months
Ended September 30 September 30 2009 2008 2009 2008 $ % $ % $ % $ %
millions millions millions millions Israel 468.3 22.1 358.6 18.5
167.5 22.9 131.8 19.6 United States 603.1 28.5 654.2 33.7 209.7
28.6 221.4 33.0 Europe 550.8 26.0 494.3 25.5 201.2 27.5 157.8 23.5
Other countries 495.5 23.4 433.3 22.3 154.1 21.0 160.2 23.9 Total
2,117.7 100.0 1,940.4 100.0 732.5 100.0 671.2 100.0 Company
Contact: Joseph Gaspar, Executive VP & CFO Dalia Rosen, Head of
Corporate Communications Elbit Systems Ltd. Tel: +972-4-831-6663
Fax: +972-4-831-6944 E-mail: IR Contact: Ehud Helft / Kenny Green
GK Investor Relations Tel: +1-646-201-9246 E-mail:
http://www.newscom.com/cgi-bin/prnh/20080408/300441DATASOURCE:
Elbit Systems Ltd CONTACT: Company Contact: Joseph Gaspar,
Executive VP & CFO, Dalia Rosen, Head of Corporate
Communications, Elbit Systems Ltd., Tel: +972-4-831-6663, Fax:
+972-4-831-6944, E-mail: , . IR Contact: Ehud Helft / Kenny Green,
GK Investor Relations, Tel: +1-646-201-9246, E-mail: .
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