Elbit Systems Reports Fourth Quarter and Year-End Results for 2004; Record Revenues, Net Earnings and Order Backlog.HAIFA, Israel, March 15 /PRNewswire-FirstCall/ --
- 22.9% Increase in Backlog of Orders to $2.15 Billion - 4.7% Increase in Annual Consolidated Revenues to $940 million - 15.3% Increase in Annual Consolidated Net Earnings to $53 Million - EPS $1.36 Excluding Non-Cash Effect of Option Plan
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. (the "Company") , the international defense electronics company, today reported its consolidated results for the fourth quarter and year-ended December 31, 2004.
The Company's backlog of orders as of December 31, 2004 reached $2.15 billion, as compared with $1.75 billion at the end of 2003. 66% of the backlog relates to orders outside of Israel. Approximately 74% of the Company's backlog as of December 31, 2004 is scheduled to be performed during 2005 and 2006.
Consolidated revenues for the year ended December 31, 2004 increased by 4.7% to $940 million from $898 million in 2003.
Consolidated revenues for the fourth quarter of 2004 increased by 3.1% to $270.8 million from $262.8 million in the corresponding quarter in 2003.
Consolidated net earnings for the year ended December 31, 2004 increased by 15.3% to $53 million, as compared to $45.9 million in 2003. Diluted earnings per share diluted earnings per share
An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of in ("EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ") 2004 were $1.29, as compared with $1.14 in 2003. Excluding the non-cash effect of the Company's option plan, EPS in 2004 was $1.36, as compared to $1.24 in 2003.
Consolidated net earnings for the fourth quarter of 2004 were $14.1 million, compared to $12.5 million in the same period in 2003. 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. EPS for the fourth quarter of 2004 were $0.34, as compared with $0.31 for the fourth quarter of 2003. Excluding the non-cash effect of the Company's option plan, EPS in the fourth quarter of 2004 was $0.35 as compared to $0.34 in the fourth quarter of 2003.
During the fourth quarter of 2004, the Company adopted the fair value recognition provision of SFAS SFAS Statement of Financial Accounting Standards
SFAS Special Forces Assessment and Selection
SFAS Student Financial Aid Services
SFAS Sport Fishing Association of Singapore
SFAS Safety Features Actuation System
SFAS Statewide Fixed Assets System No. 123, effective January 1, 2004. The Company uses the Black-Scholes-Merton formula to estimate the fair value of stock options granted to employees. Compensation cost is recorded over the vesting Vesting
The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account.
Notes: period on a straight-line basis. Following the adoption of SFAS 123 the financial result will no longer be affected by the impact of changes in the Company's share price on employees stock based compensation.
Gross profit for the fourth quarter of 2004 was $72.6 million, as compared with gross profit of $54.1 million in the fourth quarter of 2003, and the gross profit margin Gross profit margin
Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold.
gross profit margin
A measure calculated by dividing gross profit by net sales. in the fourth quarter of 2004 was 26.8%, as compared with 20.6% in the fourth quarter of 2003.
The Company produced an operating cash flow Operating cash flow
Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. of $81.5 million in 2004.
The President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Elbit Systems, Joseph Ackerman, commented: "We are pleased to report our ninth consecutive year of increased revenues, net profit and backlog of orders. 2004 was a very important year for Elbit Systems in terms of key programs, with the win of the Digital Army Program in Israel and the selection for the Watchkeeper Program in the UK together with Thales. On the acquisitions side, we signed an agreement to acquire the controlling shareholdings of Tadiran Communications and Elisra. We believe that the investments made in the development of new technologies, and the strategic steps taken in 2004, lay a solid foundation for the continued development of Elbit Systems in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.
As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with our long-term business plan."
The Board of Directors has declared a dividend of $0.13 per share for the fourth quarter of 2004. The dividend will be paid on April 18, 2005, net of taxes and levies, at the rate of 20.58%. The record date of the dividend is April 5, 2005. The total dividend to be paid for 2004 is $2.17 per share.
The Company will be hosting a webcast and conference call today, Tuesday, March 15th at 10.30am EST EST electroshock therapy.
electroshock therapy . On the call, management will review and discuss the results, and will be available to answer investor questions.
To participate, please access Elbit Systems' investor relations Investor relations
The process by which the corporation communicates with its investors. web-site at http://www.elbitsystems.com/. An online replay will be available from 2 hours after the call ends, and will be available for 30 days.
Alternatively, please call one of the teleconferencing numbers that follow. Please begin placing your calls at least 5 minutes before the conference call commences. If you are unable to connect using one of the toll-free numbers, please try the international dial-in number.
US Dial-in Numbers: +1-866-860-9642 UK Dial-in Number: 0-800-917-5108 ISRAEL Dial-in Number: 03-918-0610 INTERNATIONAL Dial-in Number: +972-3-918-0610
At: 10:30am Eastern Standard Time, 7:30am Pacific Standard Time, 3:30pm Greenwich Mean Time Greenwich mean time or Greenwich meridian time (GMT), the former name for mean solar time at the original site of the Royal Observatory in Greenwich, England, which is located on the prime meridian. or 5:30pm Israel Time.
In addition, a replay of the call will be available by telephone starting two hours after the call ends until Thursday, March 17, 10:30 am EST. To access the replay please dial:
+1-877-332-1104 (US) or +972-3-925-5945 (international and Israel) About Elbit Systems Ltd.
Elbit Systems Ltd. is an international defense electronics company engaged in a wide range of defense-related programs throughout the world, in the areas of aerospace, ground and naval systems, command, control, communications, computers, intelligence, surveillance and reconnaissance Intelligence, Surveillance and Reconnaissance may refer to:
C4ISR Command, Control, Communications, Computer, Intelligence, Surveillance and Reconnaissance
C4ISR Command Control Communications Computers Intelligence Surveillance and Reconnaissance ) and advanced electro-optic technologies. The Company focuses on the upgrading of existing military platforms and developing new technologies for defense applications. For further information, please visit the Company web site at http://www.elbitsystems.com/
Company Contact: IR Contact: Ilan Pacholder Ehud Helft / Kenny Green V.P. Finance & Capital Markets Corporate Secretary Elbit Systems Ltd Gelbart Kahana Tel: +972-4-831-6632 Tel: +1-866-704-6710 Fax: +972-4-831-6659 Fax: +972-3-607-4711 E-mail: firstname.lastname@example.org E-mail: Kenny@gk-biz.com E-mail: Ehud@gk-biz.com
STATEMENTS IN THIS PRESS RELEASE WHICH ARE NOT HISTORICAL DATA ARE FORWARD-LOOKING STATEMENTS WHICH INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES OR OTHER FACTORS NOT UNDER THE COMPANY'S CONTROL, WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM THE RESULTS, PERFORMANCE OR OTHER EXPECTATIONS IMPLIED BY THESE FORWARD-LOOKING STATEMENTS. THESE FACTORS INCLUDE, BUT ARE NOT LIMITED TO, THOSE DETAILED IN THE COMPANY'S PERIODIC FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.
(FINANCIAL TABLES TO FOLLOW) ELBIT SYSTEMS LTD. CONSOLIDATED BALANCE SHEETS (In thousand of US Dollars) December 31 December 31 2004 2003 Audited Audited Assets Current Assets: Cash and short term deposits 34,847 76,846 Trade receivable and others 267,151 251,644 Inventories, net of advances 249,041 249,225 Total current assets 551,039 577,715 Affiliated Companies & other Investments 62,886 38,223 Long-term receivables & others 85,100 78,565 Fixed Assets, net 244,288 229,221 Other assets, net 95,987 100,012 1,039,300 1,023,736 Liabilities and Shareholder's Equity Current liabilities 378,450 378,731 Long-term liabilities 221,810 188,811 Minority Interest 4,340 4,115 Shareholder's equity 434,700 452,079 1,039,300 1,023,736 ELBIT SYSTEMS LTD. CONSOLIDATED STATEMENTS OF INCOME (In thousand of US Dollars, except for per share amounts) For the Year Ended Three Months Ended December 31 December 31 2004 2003 2004 2003 Audited Unaudited Revenues 939,925 897,980 270,775 262,757 Cost of revenues 689,626 672,711 198,198 208,649 Gross Profit 250,299 225,269 72,577 54,108 Research and development, net 66,846 54,919 23,277 11,913 Marketing and selling 69,912 69,943 19,190 19,247 General and administrative 47,832 46,077 12,876 12,153 Total operating expenses 184,590 170,939 55,343 43,313 Operating income 65,709 54,330 17,234 10,795 Financial expenses, net (5,852) (4,870) (2,974) (1,403) Other income (expenses), net 770 53 831 542 Income before income taxes 60,627 49,513 15,091 9,934 Provisions for income taxes 15,219 11,334 3,507 832 45,408 38,179 11,584 9,102 Company's share of partnerships and affiliated Companies income, net 7,765 7,209 3,180 3,271 Minority rights (180) 557 (639) 101 Net income 52,993 45,945 14,125 12,474 Earnings per share Basic net earnings per share 1.33 1.18 0.35 0.32 Diluted net earnings per share 1.29 1.14 0.34 0.31
CONTACT: Company Contact: Ilan Pacholder, V.P. Finance & Capital Markets, Corporate Secretary, Elbit Systems Ltd, Tel: +972-4-831-6632, Fax: +972-4-831-6659, E-mail: email@example.com; IR Contact: Ehud Helft / Kenny Green Kenny Green (born October 11, 1964 in Eustis, Florida) is an American former professional basketball player who was selected by the Washington Bullets in the 1st round (12th overall) of the 1985 NBA Draft. , Gelbart Kahana, Tel: +1-866-704-6710 Fax: +972-3-607-4711, E-mail: Kenny@gk-biz.com, E-mail: Ehud@gk-biz.com