Elbit Systems Reports Second Quarter 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)--Aug. 8, 2000 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. Reaches Record of $825 Million 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/NM symbol: ESLTF) today announced results for the second quarter ended June June: see month. 30, 2000. Revenues for the quarter ended June 30, 2000 were $105.6 million compared with $104.0 million for the same period in 1999. Net income for the quarter was $7.7 million, or $0.29 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, compared with $7.3 million, or $0.28 per diluted share, for the second quarter of 1999. Gross profit for the quarter was $29.5 million compared with $28.8 million for the same period last year. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the quarter was $9.0 million compared with $9.3 million in the second quarter of 1999. The change in operating income for the quarter resulted from an increase in general and administrative expenses due mainly to the consolidation of subsidiaries which were not 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: in the second quarter of 1999 and expenses associated with the Company's recent merger and acquisition activities. Revenues for the six months ended June 30, 2000 were $212.6 million versus $210.8 million for the same period in 1999. Net income for the first six months of 2000 was $15.4 million, or $0.58 per diluted share, compared with $14.4 million, or $0.54 per diluted share in 1999. Gross profit was $59.8 million compared with $58.8 million for the six months ended June 30, 1999. Operating income for the six months ended June 30, was $17.6 million compared with $19.0 million for the first six months of 1999. The Company's backlog of orders as of June 30, 2000 reached a new record of $825.0 million, compared with $736.0 million as of December December: see month. 31, 1999. 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. constituted approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 72% of the backlog as of June 30, 2000. Approximately 70% of this backlog is scheduled to be delivered in 2000 and 2001. "This quarter we are reporting results of the Company for the last time before completing our merger with El-Op," said Joseph Ackerman. "During the quarter we devoted considerable managerial attention to successfully completing our merger with El-Op and in 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). the organization of the merged Company in the US and Israel. At the same time we succeeded in meeting our financials goals and increasing our backlog of orders to a record $825.0 million, reflecting both our technological advantages and our concentrated sales and marketing efforts in our target markets. "We expect the merger to bring about significant growth by realizing synergies between Elbit Systems and El-Op. We also believe the new organization, which was established to optimize optimize - optimisation human and technological resources in both companies, will yield positive benefits in the near future." The Company announced that its Board of Directors, in its meeting of August 8, 2000, approved the issuance of stock options to key employees as follows: (1) 2,500,000 options to purchase shares of the Company under an option plan where each option is exercisable for an ordinary share of the Company. These options include 1,500,000 options that were approved for issuance to employees in connection with the El-Op merger. (2) an additional 2,500,000 options to be issued under a "phantom" share option plan that grants the employee the right to purchase ordinary shares of the Company based upon the increase in the trading price Trading price The price at which a security is currently selling. of the shares. The exercise price of the options will be 85% of the average trading price of the Company shares on the Tel Aviv Stock Exchange Tel Aviv Stock Exchange Israel's only stock exchange. during the period of July July: see month. and August 2000. The employees 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: rights for the options shall be over a four-year period. The option plan is subject to approval of the Company's shareholders. A description of the employee option plan and a 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. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the meeting of the Company's shareholders will be issued separately by the Company. In addition, the Board of Directors authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the company's management, with the approval of the Chairman of the Board of Directors, to purchase up to 1,000,000 Company shares from time to time on the market for purposes of the employee stock option plan. The Company has 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 second quarter of 2000 of $0.08 per share. The dividend was paid on July 10, 2000 to shareholders of record as of the close of business on June 27, 2000. The dividend was paid net of taxes and levies at the rate of 18%. The decision to distribute a dividend on the above-mentioned A`bove´-men`tioned a. 1. Mentioned or named before; aforesaid; mentioned or named earlier in the same text (in written documents). Adj. 1. date resulted from the anticipated material change in the ownership of the Company in the third quarter of 2000 pursuant to the Merger Agreement with El-Op. 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)
Six Months Ended Three Months Ended
06/30/00 06/30/99 06/30/00 06/30/99
(Unaudited)(Unaudited) (Unaudited)(Unaudited)
Revenues $212,565 $210,754 $105,551 $104,039
Cost of revenues 152,737 151,935 76,043 75,202
-------- -------- -------- --------
Gross Profit 59,828 58,819 29,508 28,837
-------- -------- -------- --------
Research & development costs,
net 17,439 17,393 8,643 8,341
Marketing and selling
expenses 16,062 16,016 7,608 7,910
General and administrative
expenses 8,742 6,385 4,274 3,241
-------- -------- ------- --------
42,243 39,794 20,525 19,492
-------- -------- ------- --------
Operating income 17,585 19,025 8,983 9,345
Financing income (expenses),
net 1,894 1,028 881 921
Other income, net 289 70 120 76
-------- -------- ------- --------
Income before income taxes 19,768 20,123 9,984 10,342
Provision for income taxes 4,355 4,831 2,297 2,355
-------- -------- ------- --------
15,413 15,292 7,687 7,987
Minority interest 298 - 64 -
Company's share of partnership
income (loss) (308) (938) (85) (664)
-------- -------- ------- --------
Net income 15,403 $14,354 7,666 $7,323
======== ======== ======= ========
Basic net income per share $0.60 $0.58 $0.30 $0.29
======== ======== ======= ========
Weighted average number of
shares used in computation 25,643 24,899 25,688 25,008
(in thousands) ======== ======== ======= ========
Diluted net income per share $0.58 $0.54 $0.29 $0.28
======== ======== ======= ========
Weighted average number of
shares used in computation
(in thousands) 26,417 26,505 26,374 26,537
======== ======== ======= ========
ELBIT SYSTEMS LTD.
Condensed Balance Sheet
[U.S. Dollars in thousands]
06/30/00 12/31/99
Assets (Unaudited) (Audited)
Current Assets
Cash and short term deposits $58,556 $44,992
Trade receivables and others 155,459 130,786
Inventories, net of advances 78,452 56,055
------- -------
Total Current Assets 292,467 231,833
Deposits and long-term loans 3,070 17,465
Long term receivables and others 86,034 119,721
Fixed and other assets, net 85,344 77,718
------- -------
$466,915 $446,737
======= =======
Liabilities and Shareholders' Equity
Current liabilities 231,967 214,375
Long-term liabilities 50,253 59,656
Shareholders' equity 184,695 172,706
------- -------
$466,915 $446,737
======= =======
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