Elbit Systems Ltd. Reports Third Quarter 2000 Results.Business & High Tech Editors HAIFA Haifa (hī`fä), city (1994 pop. 246,700), NW Israel, a port on the Mediterranean Sea, at the foot of Mt. Carmel. Haifa is the chief city of N Israel and the country's principal oil refining center. , Israel--(BUSINESS WIRE)--Nov. 8, 2000 Elbit Systems Elbit Systems Ltd. NASDAQ: ESLT is one of Israel's largest defense electronics manufacturers and integrators. Established in 1967, and based in Haifa, Israel, Elbit has over 8,000 employees. Ltd. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ESLTF) today announced unaudited results for the third quarter ended September September: see month. 30, 2000. This report contains for the first time consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: results with Elop Electro-Optics See electro-optic. Industries Ltd. ("El-Op"), whose merger with the Company was completed on July July: see month. 5, 2000. The financial results of El-Op and its subsidiaries are included in the Company's consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge beginning with the third quarter of 2000. The results include the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of R&D in process in the amount of $40 million acquired in the merger with El-Op, as well as a non-recurring charge of approximately $22.1 million (before tax) resulting from the approved Company's restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). program that includes elimination of duplicate DUPLICATE. The double of anything. 2. It is usually applied to agreements, letters, receipts, and the like, when two originals are made of either of them. Each copy has the same effect. activities, reduction in workforce, write-offs of redundant equipment and inventories and other related expenses. In addition, the consolidated financial results for the third quarter of 2000 include amortization of goodwill arising out of the merger with El-Op. The amortization of goodwill will be recorded on a straight-line straight-line adj. 1. Lying in a straight line. 2. Relating to a device whose linkage produces or copies motion in straight lines. 3. basis over a period of approximately 17 years. The goodwill amortization in the third quarter of 2000 was approximately $1.4 million (before tax). The following discussion of results of operations include goodwill amortization arising out of the merger but does not include the effects of the non recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. write-off of R&D in process and the restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. . As described in the Company's Proxy Statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. dated February February: see month. 28, 2000, El-Op's results for the second half of the year are generally characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by higher revenues and profits than in the first half, a trend which is anticipated to continue in 2000. The Company's third quarter 2000 consolidated revenues amounted to $176.8 million as compared to $109.8 million for the third quarter 1999. The Company's consolidated revenues for the first nine months of 2000 were $389.4 million as compared to $320.6 million in the corresponding period in 1999. The relative change in the Company's revenues for the corresponding periods resulted from the consolidation for the first time of El-Op's sales in the third quarter of 2000. The Company's consolidated net income for the third quarter 2000, (excluding non recurring charges) was approximately $8.6 million or $0.22 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share as compared to $7.9 million or $0.3 per diluted share in the corresponding period of 1999. The Company's consolidated net income for the first nine months of 2000 (excluding non recurring charges) was $24.0 million, or $0.79 per diluted share, compared to a net income of $22.2 million, or $0.84 per diluted share in the corresponding period in 1999. The gross profit for the third quarter 2000 was $47.1 million as compared to $30.4 million for the third quarter 1999. The gross profit for the first nine months of 2000 was approximately $107 million as compared to $89.2 million for the corresponding period in 1999. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the third quarter 2000 (excluding non-recurring charges) was approximately $13 million as compared to approximately $10.6 million for the corresponding quarter in 1999. Operating profit for the first nine months of 2000 (excluding non-recurring charges) was $30.6 million as compared to $29.6 million for the corresponding period of 1999. After the write-off of acquired R&D in process of $40 million and amortization of goodwill of $1.4 million (before tax) resulting from the merger, as well as non recurring charge of $22.1 million (before tax) relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's restructuring, the Company recorded a loss of $48.2 million in the third quarter of 2000, or a loss per diluted share of $1.27, as compared to net income of approximately $7.9 million, or $0.30 per diluted share in the corresponding period in 1999. Consolidated sales on a pro-forma basis, assuming that the merger with El-Op had occurred at the beginning of the reported periods, and after elimination of inter-company transactions, amounted to approximately $506 million in the first nine months of 2000 as compared to $494 million in the corresponding period in 1999. The consolidated pro-forma net income (excluding non-recurring items) for the first nine months of 2000, was $21.2 million as compared to $22.2 million for the corresponding period in 1999. The Company's backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of orders following the merger with El-Op as of September 30, 2000, was approximately $1,381 million as compared to $736 million at the end of 1999, prior to the merger with El-Op. Approximately 71% of the backlog relates to orders from outside Israel Israel, in the Bible Israel (ĭz`rēəl, ĭz`rāəl) [as understood by Hebrews,=he strives with God], according to the book of Genesis, name given to Jacob as eponymous ancestor of the Hebrews, the chosen people of God. . "We are reporting Elbit Systems' financial results for the first time following completion of the merger with El-Op in July", said Joseph Ackerman, President and Chief Executive Officer of Elbit Systems. "Our third quarter was dedicated primarily to the implementation of our new organizational structure  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. , an initiative whose purpose is to eliminate duplicate activities, increase efficiency of operations and maximize synergies between the two companies. This initiative required certain investments and one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. write-offs that are reflected in the third quarter 2000 results. We anticipate seeing the fruits of these investments in the Company's results in the coming year. "The Company's substantial backlog, our greater global presence, ongoing research and development activities at the forefront of technology and marketing activities in Israel and globally give us a strong foundation for future growth", concluded Joseph Ackerman. The Company's Board of Directors declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a dividend for the third quarter of 2000 of $0.08 per share. The record date for the dividend is December December: see month. 5, 2000, and the dividend will be paid on December 18, 2000 net of taxes and levies to be withheld at the rate of 18%. About Elbit Systems Ltd. Elbit Systems Ltd. is engaged in a wide range of defense-related airborne airborne /air·borne/ (ar´born) suspended in, transported by, or spread by air. airborne, adj carried through the air. In health care settings, viruses or bacteria may become airborne, e.g. , ground and command, control and communications ("C3") programs throughout the world. The Company focuses on upgrading of existing military platforms and developing new technologies for defense applications. Forward looking statements with respect to the Company's business, financial condition and results of operations, in this release are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward looking statements, including, but not limited to, product demand, pricing, market acceptance, changing economic conditions, risks in product and technology development, the effect of the Company's accounting policies as well as certain other risk factors which are detailed from time to time in the Company's SEC filings.
ELBIT SYSTEMS LTD.
Condensed Statements of Operations
(U.S. Dollars in thousands, except per share data)
Nine Months Ended Three Months Ended
09/30/00 09/30/99 09/30/00 09/30/99
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues $389,413 $320,558 $176,848 $109,804
Cost of revenues 282,447 231,374 129,710 79,439
------- ------- ------- ------
Gross Profit 106,966 89,184 47,138 30,365
------- ------ ------ ------
Research & development
costs, net 30,344 24,825 12,905 7,432
Marketing and selling
expenses 28,621 24,406 12,559 8,390
General and administrative
expenses 17,438 10,305 8,696 3,920
------ ------ ----- -----
76,403 59,536 34,160 19,742
------ ------ ------ ------
In-process research and
development 40,000 - 40,000 -
Restructuring expenses
(see note 5) 22,100 - 22,100 -
------ ------
138,503 59,536 96,260 19,742
------- ------ ------ ------
Operating income (loss) (31,537) 29,648 (49,122) 10,623
Financing income (expenses),
net 1,179 1,413 (715) 385
Other income (expenses),
net 11 61 (278) (9)
-- -- ----- ---
Income (loss) before income
taxes (30,347) 31,122 (50,115) 10,999
Income taxes (tax benefit) 2,131 7,541 (2,224) 2,710
----- ----- ------- -----
Income (loss) after income
taxes (32,478) 23,581 (47,891) 8,289
Equity in net losses of affiliated
company (601) (1,361) (293) (423)
Minority Interest 287 - (11) -
--- - ---- -
Net income $(32,792) $22,220 $(48,195) $7,866
========= ======= ========= ======
Earnings (loss) per share
Basic earnings (loss)
per share $(1.10) $0.89 $(1.27) $0.31
======= ===== ======= =====
Number of shares used in computation
(In thousands) 29,700 25,033 37,815 25,298
====== ====== ====== ======
Diluted earnings (loss)
per share $(1.10) $0.84 $(1.27) $0.30
======= ===== ======= =====
Number of shares used in computation
(In thousands) 29,700 26,502 37,815 26,496
====== ====== ====== ======
ELBIT SYSTEMS LTD.
Condensed Balance Sheet
[U.S. Dollars in thousands]
09/30/00 12/31/99
Assets (Unaudited) (Audited)
------
Current Assets
Cash and short term deposits $62,088 $44,992
Trade receivables and others 231,930 130,786
Inventories, net of advances 130,769 56,055
------- ------
Total Current Assets 424,787 231,833
Deposits and long-term loans 2,900 17,465
Long-term receivables and others 110,631 119,721
Fixed assets, net 156,389 66,691
Other assets, net 94,155 11,027
------ ------
$788,862 $446,737
======== ========
Liabilities and Shareholders' Equity
Current liabilities 381,527 214,375
Long-term liabilities 89,452 57,877
Minority interest 4,225 1,779
Shareholders' equity 313,658 172,706
------- -------
$788,862 $446,737
======== ========
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