Order backlog at $20.4
billion; Revenues of $1.6
billion;
Non-GAAP net income of $81 million; GAAP net income of $74 million;
Non-GAAP net EPS of
$1.81; GAAP net EPS of $1.65
HAIFA,
Israel, May 28, 2024 /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 first
quarter ended March 31, 2024.
In this release, the Company is providing US-GAAP results as
well as additional non-GAAP financial data, which are intended to
provide investors a more comprehensive view of the Company's
business results and trends. For a description of the Company's
non-GAAP definitions see page 4 below, "Non-GAAP financial data".
Unless otherwise stated, all financial data presented is US-GAAP
financial data.
Management Comment:
Bezhalel (Butzi) Machlis, President and CEO of Elbit
Systems, commented:
"The significant increase in our order backlog, which surpassed
$20 billion, highlights the relevance
of Elbit Systems' portfolio of advanced technological and
operationally proven solutions in light of the increase in defense
budgets world-wide, which positively impacts the revenues and
growth of the Company.
Elbit Systems is continuing to implement its long-term strategy
and plans, while strengthening its global presence and maintaining
its commitments to customers."
First quarter 2024 results:
Revenues in the first quarter of 2024 were
$1,554.0 million, as compared to
$1,393.5 million in the first quarter
of 2023.
Aerospace revenues were similar to the revenues in the first
quarter of 2023. C4I and Cyber revenues increased by 12% in the
first quarter of 2024, as compared to the first quarter of 2023
mainly due to radio systems sales in Israel. ISTAR and EW revenues increased by 17%
mainly due to Electronic Warfare and Electro-Optic systems sales in
Israel. Land revenues increased by
26% due to the increase in ammunition and munition sales in
Israel. Elbit Systems of America
revenues were similar to the revenues in the first quarter of
2023.
For distribution of revenues by segments and geographic regions
see the tables on page 12.
Non-GAAP(*) gross profit amounted to
$383.4 million (24.7% of revenues) in
the first quarter of 2024, as compared to $369.0 million (26.5% of revenues) in the first
quarter of 2023. GAAP gross profit in the first quarter of
2024 was $374.1 million (24.1% of
revenues), as compared to $361.5
million (25.9% of revenues) in the first quarter of
2023.
Research and development expenses, net were
$98.5 million (6.3% of revenues) in
the first quarter of 2024, as compared to $110.3 million (7.9% of revenues) in the first
quarter of 2023.
Marketing and selling expenses, net were $89.1 million (5.7% of revenues) in the first
quarter of 2024, as compared to $80.2
million (5.8% of revenues) in the first quarter of 2023.
General and administrative expenses, net were
$81.2 million (5.2% of revenues) in
the first quarter of 2024, as compared to $77.1 million (5.5% of revenues) in the first
quarter of 2023.
Non-GAAP(*) operating income was $121.6 million (7.8% of revenues) in the first
quarter of 2024, as compared to $108.5
million (7.8% of revenues) in the first quarter of 2023.
GAAP operating income in the first quarter of 2024 was
$105.4 million (6.8% of revenues), as
compared to $93.9 million (6.7% of
revenues) in the first quarter of 2023.
Financial expenses, net were $31.2 million in the first quarter of 2024,
as compared to $24.2 million in
the first quarter of 2023. The financial expenses in 2024 were
higher mainly as a result of the significant increase in interest
rates, and the required increase in net working capital.
Taxes on income were $11.6 million in the first quarter of 2024,
as compared to $8.7 million in
the first quarter of 2023.
Non-GAAP(*) net income attributable to the
Company's shareholders in the first quarter of 2024 was
$80.7 million (5.2% of
revenues), as compared to $79.0 million (5.7% of revenues) in the
first quarter of 2023. GAAP net income attributable to
the Company's shareholders in the first quarter of 2024 was
$73.7 million (4.7% of
revenues), as compared to $62.1 (4.5%
of revenues) in the first quarter of 2023.
Non-GAAP(*) diluted net earnings per share
attributable to the Company's shareholders were
$1.81 for the first quarter of 2024,
as compared to $1.78 for the first
quarter of 2023. GAAP diluted earnings per share attributable to
the Company's shareholders in the first quarter of 2024 were
$1.65, as compared to $1.40 in the first quarter of 2023.
The Company's order backlog as of March 31,
2024 totaled $20.4 billion.
Approximately 71% of the current backlog is attributable to orders
from outside Israel. Approximately 51% of the backlog is scheduled
to be performed during the remainder of 2024 and 2025.
Cash flow used in operating activities in the three
months ended March 31, 2024 was $6.4 million, as compared to $73.0 million in the three months ended
March 31, 2023. The cash flow in the three months ended
March 31, 2024 was affected mainly by
the increase in inventories and trade receivables offset by the
increase in contract liabilities.
___________
* see page 4
Impact of the "Swords of Iron" War on the Company:
On October 7, 2023, Hamas
terrorists infiltrated Israel's southern border from the
Gaza Strip and conducted a series
of brutal attacks on civilian and military targets. Hamas also
launched extensive rocket attacks on the Israeli population and
industrial centers located along Israel's border with the
Gaza Strip and in many other parts
of Israel. Israel has also been attacked by other terrorist
organizations on different fronts, including from Lebanon, which have prompted military
responses from Israel. Following the attacks, the State of Israel declared a state of war, which
is ongoing.
Since the commencement of hostilities, Elbit Systems has
experienced a material increased demand for our products and
solutions from the Israel Ministry of Defense (IMOD) compared to
the demand levels prior to the war. We have also increased our
support to the IMOD, mainly through deliveries of our systems and
the dedicated efforts of our employees. At the same time, the
Company continues its activities in the international market
including through its local subsidiaries. Subject to further
developments, which are difficult to predict, the IMOD's increased
demand for the Company's products and solutions may continue and
could generate material additional orders to the Company.
While the vast majority of our facilities in Israel continue to operate uninterrupted, some
of our operations have experienced disruptions due to supply chain
and operational constraints, the relocation of certain production
lines, evacuation of employees and mobilization of our employees
for reserve duty. Since March 2024
the number of employees mobilized has decreased to approximately 6%
as of May 19, 2024, and could
fluctuate depending on future developments.
Elbit Systems has taken a number of steps to protect the safety
and security of our employees, support our increased production,
mitigate potential supply chain disruptions and maintain business
continuity, among them relocation of production lines from
facilities in areas of the country that have been evacuated to
other facilities; recruitment of additional employees; increased
monitoring of our global supply chain to identify delays, shortages
and bottlenecks; rescheduled deliveries to certain of our customers
as necessary; and increased inventories.
The extent of the effects of the war on the Company's
performance will depend on future developments of the war that are
difficult to predict at this time, including its duration and
scope. We continue to monitor the situation closely.
* 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, restructuring activities, uncompensated costs related
to "Swords of Iron" war, non-cash stock based compensation
expenses, 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 Supplemental Financial Data:
|
|
(US Dollars in
millions, except for per share amounts)
|
|
|
Three
months
ended March
31, 2024
|
|
Three
months
ended March
31, 2023
|
|
Year ended
December
31, 2023
|
|
GAAP gross
profit
|
$
374.1
|
|
$
361.5
|
|
$ 1,483.0
|
|
Adjustments:
|
|
|
|
|
|
|
Amortization of
purchased intangible assets(*)
|
6.4
|
|
7.0
|
|
27.3
|
|
Restructuring of a
subsidiary's activities
|
—
|
|
—
|
|
17.5
|
|
Stock based
compensation
|
0.4
|
|
0.5
|
|
1.8
|
|
Uncompensated labor
costs related to "Swords of Iron" war
|
2.5
|
|
—
|
|
4.3
|
|
Non-GAAP gross
profit
|
$
383.4
|
|
$
369.0
|
|
$ 1,533.9
|
|
Percent of
revenues
|
24.7 %
|
|
26.5 %
|
|
25.7 %
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
105.4
|
|
$
93.9
|
|
$
369.1
|
|
Adjustments:
|
|
|
|
|
|
|
Amortization of
purchased intangible assets(*)
|
10.3
|
|
11.2
|
|
43.9
|
|
Restructuring of a
subsidiary's activities
|
—
|
|
—
|
|
17.5
|
|
Stock based
compensation
|
2.4
|
|
3.4
|
|
12.1
|
|
Uncompensated labor
costs related to "Swords of Iron" war
|
3.5
|
|
—
|
|
6.1
|
|
Non-GAAP operating
income
|
$
121.6
|
|
$
108.5
|
|
$
448.7
|
|
Percent of
revenues
|
7.8 %
|
|
7.8 %
|
|
7.5 %
|
|
|
|
|
|
|
|
GAAP net income
attributable to Elbit Systems' shareholders
|
$
73.7
|
|
$
62.1
|
|
$
215.1
|
|
Adjustments:
|
|
|
|
|
|
|
Amortization of
purchased intangible assets(*)
|
10.3
|
|
11.2
|
|
43.9
|
|
Restructuring of a
subsidiary's activities
|
—
|
|
—
|
|
17.5
|
|
Stock based
compensation
|
2.4
|
|
3.4
|
|
12.1
|
|
Uncompensated labor
costs related to "Swords of Iron" war
|
3.5
|
|
—
|
|
6.1
|
|
Revaluation of
investment measured under fair value method
|
—
|
|
—
|
|
3.0
|
|
Non-operating foreign
exchange (gains) losses
|
(7.5)
|
|
3.7
|
|
12.0
|
|
Tax effect and other
tax items, net
|
(1.7)
|
|
(1.4)
|
|
(10.9)
|
|
Non-GAAP net income
attributable to Elbit Systems' shareholders
|
$
80.7
|
|
$
79.0
|
|
$
298.8
|
|
Percent of
revenues
|
5.2 %
|
|
5.7 %
|
|
5.0 %
|
|
|
|
|
|
|
|
GAAP diluted net
EPS
|
$
1.65
|
|
$
1.40
|
|
$
4.82
|
|
Adjustments,
net
|
0.16
|
|
0.38
|
|
1.88
|
|
Non-GAAP diluted net
EPS
|
$
1.81
|
|
$
1.78
|
|
$
6.70
|
|
|
(*) 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 April 30, 2024, the
Company announced that it was awarded a contract in an amount of
approximately $50 million for its new
air defense system, "Red Sky"™, by an international customer. The
contract will be executed over a period of two years.
On May 5, 2024, the Company
announced that it was awarded an initial contract of approximately
$37 million to supply Iron Fist
Active Protection Systems (APS) to General Dynamics Ordnance and
Tactical Systems (GD-OTS) for upgrades to the U.S. Army's Bradley
M2A4E1 Infantry Fighting Vehicles (IFVs). The contract will be
performed over a period of two years.
On May 8, 2024, the Company
announced that it was awarded a contract worth approximately
$53 million to supply the Crossbow
Unmanned Turreted 120mm Soft Recoil Mortar Systems to General
Dynamics European Land Systems (GDELS) for the installation on
Pandur 6x6 APC wheeled armored vehicle for a European customer. The
contract will be performed over a period of six years.
On May 21, 2024, the
Company announced, further to the report in its Annual Report on
Form 20-F for the year ended December 31,
2023, filed on March 28, 2024,
that it was awarded a group of contracts in an aggregate amount of
approximately $760 million for the
supply of ammunition to the IMOD. The contracts will be performed
over a period of two years.
On May 23, 2024, the
Company announced that it was awarded a contract to supply systems
to an international customer, in an amount of approximately
$260 million. The contract will be
performed over a period of two years.
Dividend:
The Board of Directors declared a dividend of $0.50 per share. The dividend's record date is
June 18, 2024. The dividend will be
paid on July 1, 2024, after deduction
of withholding tax, at the rate of 16.8%.
Conference Call:
The Company will be hosting a conference call today, Tuesday,
May 28, 2024, 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 is a leading global defense technology company,
delivering advanced solutions for a secure and safer world. Elbit
Systems develops, manufactures, integrates and sustains a range of
next-generation solutions across multiple domains.
Driven by its agile, collaborative culture, and leveraging
Israel's technology ecosystem, Elbit Systems enables customers to
address rapidly evolving battlefield challenges and overcome
threats.
Elbit Systems employs over 19,000 people in dozens of countries
across five continents. The Company reported as of March 31, 2024 approximately $1.6 billion in revenues and an order backlog of
$20.4 billion.
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
Dr. David Ravia,
Investor Relations
Tel:
+972-77-2947169
david.ravia@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; including the
duration and scope of the current war in Israel, and the potential impact on our
operations; 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
March 31,
2024
|
|
As of
December 31,
2023
|
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
$
108,292
|
|
$
197,429
|
|
Short-term bank
deposits
|
36,627
|
|
10,518
|
|
Trade and unbilled
receivables and contract assets, net
|
2,909,158
|
|
2,716,762
|
|
Other receivables and
prepaid expenses
|
294,741
|
|
285,352
|
|
Inventories,
net
|
2,567,193
|
|
2,298,019
|
|
Total current
assets
|
5,916,011
|
|
5,508,080
|
|
|
|
|
|
Investments in
affiliated companies and other companies
|
149,778
|
|
145,350
|
|
Long-term trade and
unbilled receivables and contract assets
|
372,386
|
|
364,719
|
|
Long-term bank deposits
and other receivables
|
82,110
|
|
87,648
|
|
Deferred income taxes,
net
|
22,357
|
|
23,423
|
|
Severance pay
fund
|
207,409
|
|
206,943
|
|
Total
|
834,040
|
|
828,083
|
|
|
|
|
|
Operating lease right
of use assets
|
490,314
|
|
425,884
|
|
Property, plant and
equipment, net
|
1,143,525
|
|
1,087,950
|
|
Goodwill and other
intangible assets, net
|
1,873,617
|
|
1,889,585
|
|
Total assets
|
$
10,257,507
|
|
$
9,739,582
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Short-term bank credit
and loans
|
$
618,772
|
|
$
576,594
|
|
Current maturities of
long-term loans and Series B, C and D Notes
|
74,460
|
|
75,286
|
|
Operating lease
liabilities
|
68,743
|
|
67,390
|
|
Trade
payables
|
1,152,994
|
|
1,254,126
|
|
Other payables and
accrued expenses
|
1,165,709
|
|
1,194,347
|
|
Contract
liabilities
|
2,003,884
|
|
1,656,103
|
|
Total current
liabilities
|
5,084,562
|
|
4,823,846
|
|
|
|
|
|
Long-term loans, net of
current maturities
|
32,582
|
|
41,227
|
|
Series B, C and D
Notes, net of current maturities
|
339,190
|
|
342,847
|
|
Employee benefit
liabilities
|
505,694
|
|
510,416
|
|
Deferred income taxes
and tax liabilities, net
|
54,959
|
|
55,240
|
|
Contract
liabilities
|
517,038
|
|
354,319
|
|
Operating lease
liabilities
|
421,577
|
|
363,100
|
|
Other long-term
liabilities
|
290,810
|
|
298,296
|
|
Total long-term
liabilities
|
2,161,850
|
|
1,965,445
|
|
|
|
|
|
Elbit Systems Ltd.'s
equity
|
3,008,280
|
|
2,947,503
|
|
Non-controlling
interests
|
2,815
|
|
2,788
|
|
Total equity
|
3,011,095
|
|
2,950,291
|
|
Total liabilities and
equity
|
$
10,257,507
|
|
$
9,739,582
|
|
ELBIT SYSTEMS
LTD.
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
(In thousands of US
Dollars, except for share and per share amounts)
|
|
|
Three months
ended March
31, 2024
|
|
Three months
ended March
31, 2023
|
|
|
Year ended
December 31,
2023
|
|
Revenues
|
$ 1,553,951
|
|
$ 1,393,488
|
|
|
$ 5,974,744
|
|
Cost of
revenues
|
1,179,802
|
|
1,031,972
|
|
|
4,491,790
|
|
Gross profit
|
374,149
|
|
361,516
|
|
|
1,482,954
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development, net
|
98,521
|
|
110,318
|
|
|
424,420
|
|
Marketing and selling,
net
|
89,082
|
|
80,160
|
|
|
359,141
|
|
General and
administrative, net
|
81,182
|
|
77,140
|
|
|
330,285
|
|
Total operating
expenses
|
268,785
|
|
267,618
|
|
|
1,113,846
|
|
Operating
income
|
105,364
|
|
93,898
|
|
|
369,108
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
(31,185)
|
|
(24,212)
|
|
|
(137,827)
|
|
Other income
(expenses), net
|
5,296
|
|
(1,846)
|
|
|
(4,787)
|
|
Income before income
taxes
|
79,475
|
|
67,840
|
|
|
226,494
|
|
Taxes on
income
|
(11,598)
|
|
(8,695)
|
|
|
(22,913)
|
|
Income after taxes on
income
|
67,877
|
|
59,145
|
|
|
203,581
|
|
|
|
|
|
|
|
|
Equity in net earnings
of affiliated companies
|
5,849
|
|
3,028
|
|
|
12,275
|
|
|
|
|
|
|
|
|
Net income
|
$
73,726
|
|
$
62,173
|
|
|
$
215,856
|
|
|
|
|
|
|
|
|
Less: net income
attributable to non-controlling interests
|
(53)
|
|
(104)
|
|
|
(725)
|
|
Net income
attributable to Elbit Systems Ltd.'s shareholders
|
$
73,673
|
|
$
62,069
|
|
|
$
215,131
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Elbit Systems Ltd.'s shareholders:
|
|
|
|
|
|
|
|
Basic net earnings per
share
|
$
1.66
|
|
$
1.40
|
|
|
$
4.85
|
|
Diluted net earnings
per share
|
$
1.65
|
|
$
1.40
|
|
|
$
4.82
|
|
|
|
|
|
|
|
|
Weighted average number
of shares used in computation of:
|
|
|
|
|
|
|
|
Basic earnings per
share (in thousands)
|
44,462
|
|
44,345
|
|
|
44,375
|
|
Diluted earnings per
share (in thousands)
|
44,659
|
|
44,459
|
|
|
44,592
|
|
ELBIT SYSTEMS
LTD.
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOW
|
|
(In thousands of US
Dollars)
|
|
|
Three months
ended March
31, 2024
|
|
Three months
ended March
31, 2023
|
|
Year ended
December
31, 2023
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net income
|
$
73,726
|
|
$
62,173
|
|
$ 215,856
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
39,960
|
|
41,058
|
|
164,799
|
|
Stock-based
compensation
|
2,412
|
|
3,416
|
|
12,141
|
|
Amortization of series
B, C and D related issuance costs, net
|
134
|
|
153
|
|
579
|
|
Deferred income taxes
and reserve, net
|
5,036
|
|
659
|
|
(13,165)
|
|
Gain on sale of
property, plant and equipment
|
(322)
|
|
(189)
|
|
(651)
|
|
Loss on sale of
investment, remeasurement of investment held under fair value
method
|
158
|
|
—
|
|
4,990
|
|
Equity in net earnings
of affiliated companies, net of dividend received
(*)
|
(4,558)
|
|
597
|
|
10,046
|
|
Changes in operating
assets and liabilities, net of amounts acquired:
|
|
|
|
|
|
|
Increase in trade and
unbilled receivables and prepaid expenses
|
(204,368)
|
|
(101,647)
|
|
(96,594)
|
|
Increase in
inventories, net
|
(273,806)
|
|
(225,366)
|
|
(351,594)
|
|
Increase (decrease) in
trade payables and other payables and accrued expenses
|
(146,130)
|
|
91,704
|
|
175,446
|
|
Severance, pension and
termination indemnities, net
|
(9,308)
|
|
(10,615)
|
|
(24,331)
|
|
Increase in contract
liabilities
|
510,679
|
|
65,032
|
|
16,187
|
|
Net cash (used in)
provided by operating activities
|
(6,387)
|
|
(73,025)
|
|
113,709
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
Purchase of property,
plant and equipment and other assets
|
(80,024)
|
|
(36,812)
|
|
(187,037)
|
|
Acquisition of
subsidiaries, net of cash assumed
|
—
|
|
—
|
|
(10,380)
|
|
Investments in
affiliated companies and other companies, net
|
(250)
|
|
(1,200)
|
|
(5,416)
|
|
Proceeds from sale of
property, plant and equipment
|
4,362
|
|
359
|
|
1,466
|
|
Proceeds from sale of a
subsidiary and an investment
|
7,376
|
|
—
|
|
151
|
|
Investment in
short-term deposits, net
|
(26,182)
|
|
(1,000)
|
|
(9,467)
|
|
Proceeds from sale of
(investment in) long-term deposits, net
|
(598)
|
|
30
|
|
83
|
|
Net cash used in
investing activities
|
(95,316)
|
|
(38,623)
|
|
(210,600)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
Issuance of
shares
|
22
|
|
3
|
|
30
|
|
Issuance of commercial
paper
|
—
|
|
—
|
|
313,620
|
|
Repayment of long-term
loans
|
(7,402)
|
|
(37,366)
|
|
(246,231)
|
|
Proceeds from long-term
bank loans
|
—
|
|
—
|
|
20,000
|
|
Repayment of Series B,
C and D Notes
|
—
|
|
—
|
|
(62,434)
|
|
Dividends paid
(**)
|
(22,231)
|
|
(22,171)
|
|
(89,248)
|
|
Change in short-term
bank credit and loans, net
|
42,177
|
|
111,547
|
|
147,475
|
|
Net cash provided by
financing activities
|
12,566
|
|
52,013
|
|
83,212
|
|
Net decrease in cash
and cash equivalents
|
(89,137)
|
|
(59,635)
|
|
(13,679)
|
|
CASH AND CASH
EQUIVALENTS AT THE BEGINNING OF THE PERIOD
|
$
197,429
|
|
$
211,108
|
|
$ 211,108
|
|
CASH AND CASH
EQUIVALENTS AT THE END OF THE PERIOD
|
$
108,292
|
|
$
151,473
|
|
$ 197,429
|
|
(*) Dividend received from
affiliated companies and partnerships
|
$
1,384
|
|
$
3,625
|
|
$
22,321
|
|
|
(**) Dividends paid during
2023 included approximately $0.5 million dividends paid by
subsidiaries to non-controlling interests.
|
|
ELBIT SYSTEMS
LTD.
|
|
DISTRIBUTION OF
REVENUES
|
|
(In millions of US
Dollars)
|
|
|
Consolidated
revenues by geographical regions:
|
|
Three
months
ended
March 31,
2024
|
|
%
|
|
Three
months
ended
March 31,
2023
|
|
%
|
|
Israel
|
$
452.1
|
|
29.1
|
|
$
255.4
|
|
18.3
|
|
North America
|
327.2
|
|
21.1
|
|
352.3
|
|
25.3
|
|
Europe
|
384.9
|
|
24.8
|
|
368.7
|
|
26.5
|
|
Asia-Pacific
|
307.1
|
|
19.8
|
|
338.6
|
|
24.3
|
|
Latin
America
|
34.2
|
|
2.2
|
|
30.2
|
|
2.2
|
|
Other
countries
|
48.5
|
|
3.0
|
|
48.3
|
|
3.4
|
|
Total
revenue
|
$
1,554.0
|
|
100.0
|
|
$
1,393.5
|
|
100.0
|
|
Consolidated
revenues by
segments:
|
|
|
|
|
|
Three months
ended March
31, 2024
|
|
Three months
ended March
31, 2023
|
|
Aerospace
|
|
|
|
|
External
customers
|
$
367.6
|
|
$
362.2
|
|
Intersegment
revenue
|
54.4
|
|
58.6
|
|
Total
|
422.0
|
|
420.8
|
|
C4I and
Cyber
|
|
|
|
|
External
customers
|
184.5
|
|
161.9
|
|
Intersegment
revenue
|
12.5
|
|
13.8
|
|
Total
|
197.0
|
|
175.7
|
|
ISTAR and EW
|
|
|
|
|
External
customers
|
297.2
|
|
249.2
|
|
Intersegment
revenue
|
48.9
|
|
45.5
|
|
Total
|
346.1
|
|
294.7
|
|
Land
|
|
|
|
|
External
customers
|
360.7
|
|
278.6
|
|
Intersegment
revenue
|
19.4
|
|
22.8
|
|
Total
|
380.1
|
|
301.4
|
|
ESA
|
|
|
|
|
External
customers
|
344.0
|
|
341.6
|
|
Intersegment
revenue
|
0.1
|
|
3.7
|
|
Total
|
344.1
|
|
345.3
|
|
Revenues
|
|
|
|
|
Total revenues
(external customers and intersegment) for reportable
segments
|
1,689.3
|
|
1,537.9
|
|
Less - intersegment
revenue
|
(135.3)
|
|
(144.4)
|
|
Total
revenues
|
$
1,554.0
|
|
$
1,393.5
|
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SOURCE Elbit Systems Ltd.