Elbit Systems Reports Third Quarter 2005 Results.
Backlog of Orders Reached a New Record of $2.405 Billion
Excluding One-Time In-Process R&D Write-Off Related to Tadiran Share Purchase, Net Profit and EPS Reached $15.8 Million and $0.38, Respectively
HAIFA, Israel, November 15 /PRNewswire-FirstCall/ -- Elbit Systems Ltd. (the "Company") , the international defense company, today reported its consolidated results for the third quarter ended September 30, 2005.
The Company's backlog of orders as of September 30, 2005 reached $2,405 million, an 11.7% increase as compared to $2,154 million at the end of 2004. Approximately 65% of the backlog relates to orders outside of Israel. Approximately 50% of the Company's backlog as of September 30, 2005 is scheduled to be performed over the last quarter of 2005 and during 2006.
Consolidated revenues for the third quarter of 2005 increased by 22.3% to $273.6 million from $223.8 million in the third quarter of 2004.
Gross profit for the third quarter of 2005 increased by 20.3% to $73.7 million (26.9% of revenues), as compared with gross profit of $61.2 million (27.4% of revenues) in the third quarter of 2004.
Reported consolidated net income for the third quarter of 2005 increased by 9.4% to $14.6 million (5.3% of revenues), as compared with $13.3 million (5.9% of revenues) in the third quarter of 2004. Reported diluted earnings per share for the third quarter of 2005 were $0.35, as compared with $0.32 for the third quarter of 2004.
Excluding the one-time in-process R&D write-off related to the share purchase of Tadiran Communications Ltd. ("Tadiran"), the Company's net income for the third quarter of 2005 was $15.8 million (or 5.8% of revenues) and the diluted EPS was $0.38.
As previously reported, the Company's financial results for the third quarter of 2005 were affected by its acquisition of Tadiran shares from Koor Industries Ltd. ("Koor"). As a result of the completion of the second stage of the agreement to acquire Koor's holdings in Tadiran, which included the purchase of an additional 5% of Tadiran's shares during the third quarter of 2005, the Company recorded a $1.2 million write-off of In-Process Research & Development in the third quarter of 2005. All the effects of the Tadiran transaction are recorded as part of the Company's earnings from affiliated companies in its income statement
During the first nine months of 2005 the Company produced an operating cash flow of $96.4 million.
The President and CEO of Elbit Systems, Joseph Ackerman, commented: "We are pleased to report the third quarter results, in which we reached the highest quarterly revenues in our history. These results continue the trend of profitable growth that we have demonstrated for many consecutive quarters. The high backlog of orders does not include some large and important orders, such as the UK Watchkeeper, the U.S. Marine Corps contract and other contracts that we received following the end of the quarter. All of this provides us with a high level of confidence in the continued growth of Elbit Systems going forward, supported by our on going investments in R&D in order to maintain technological leadership in our many business areas."
The Board of Directors declared a dividend of $0.14 per share for the third quarter of 2005. The dividend's record date is November 29, 2005, and the dividend will be paid on December 12, 2005, net of taxes and levies, at the rate of 22.1%.
The Company will be hosting a conference call today, Tuesday, November 15, at 10.00am EST. On the call, management will review and discuss the third quarter 2005 results and will be available to answer questions.
To participate, please call one of the following teleconferencing numbers. Please begin placing your calls at least 5 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: +1-866-860-9642 UK Dial-in Number: 0800-917-5108 ISRAEL Dial-in Number: 03-918-0610 INTERNATIONAL Dial-in Number: +972-3-918-0610 At: 10:00am Eastern Standard Time 7:00am Pacific Standard Time 3:00pm Greenwich Mean Time 5:00pm Israel Time
This call will also be broadcast live on Elbit Systems' web-site at http://www.elbitsystems.com/. An online replay will be available from 48 hours after the call ends, and will be available online for 30 days.
Alternatively, for two days following the end of the call, investors will be able to dial a replay number to listen to the call. The dial-in number is either: 1-888-269-0005 (US) or +972-3-925-5945 (Israel and International).
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 (C4ISR) 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 and Corporate Secretary Elbit Systems Ltd GK International 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.
ELBIT SYSTEMS LTD. CONSOLIDATED BALANCE SHEETS (In thousand of US Dollars) September 30 December 31 2005 2004 Unaudited (**) Assets Current Assets: Cash and short term deposits 150,949 34,847 Trade receivable and others 288,632 *267,903 Inventories, net of advances 294,069 249,041 Total current assets 733,650 551,791 Affiliated Companies & other Investments 150,618 *59,618 Long-term receivables & others 85,241 85,100 Fixed Assets, net 252,311 244,288 Other assets, net 93,403 95,987 1,315,223 1,036,784 Liabilities and Shareholder's Equity Current liabilities 454,611 378,450 Long-term liabilities 397,237 221,810 Minority Interest 3,915 4,340 Shareholder's equity 459,460 *432,184 1,315,223 1,036,784 * Restated due to the Tadiran share purchase transaction ** Derived from the Company's 2004 audited financial statements ELBIT SYSTEMS LTD. CONSOLIDATED STATEMENTS OF INCOME (In thousand of US Dollars, except for per share amounts) Nine Months Three Months Year Ended Ended Ended December 31 September 30 September 30 2004 2005 **2004 2005 **2004 (***) Unaudited Unaudited Revenues 748,116 669,150 273,646 223,833 939,925 Cost of revenues 546,790 491,427 199,969 162,588 689,626 Gross Profit 201,326 177,723 73,677 61,245 250,299 Research and development, 53,443 43,570 20,482 16,543 66,846 net Marketing and selling 54,695 50,722 20,309 15,562 69,912 General and administrative 38,262 34,957 12,838 12,226 47,832 Total operating expenses 146,400 129,249 53,629 44,331 184,590 Operating income 54,926 48,474 20,048 16,914 65,709 Financial expenses, net (6,273) (2,878) (3,076) (1,577) (5,852) Other income, net (192) (61) (6) 23 770 Income before income taxes 48,461 45,535 16,966 15,360 60,627 Taxes on income 12,289 11,712 4,246 3,933 15,219 36,172 33,823 12,720 11,427 45,408 Company's share of partnerships and 1,339 4,586 1,465 1,616 *6,645 affiliated Companies income, net Minority rights 652 459 379 271 (180) Net income 38,163 38,868 14,564 13,314 *51,873 Earnings per share Basic net earnings per $ 0.94 $ 0.98 $ 0.36 $ 0.33 *$ 1.30 share Diluted net earnings per $ 0.92 $ 0.95 $ 0.35 $ 0.32 *$ 1.26 share * Restated due to the Tadiran share purchase transaction ** Restated due to the adoption of SFAS 123 *** Derived from the Company's 2004 audited financial statements
CONTACT: Ilan Pacholder, V.P. Finance & Capital Markets and Corporate Secretary, Elbit Systems Ltd, Tel: +972-4-831-6632, Fax: +972-4-831-6659, E-mail: email@example.com, Ehud Helft/Kenny Green, GK International, Tel: +1-866-704-6710, Fax: + 972-3-607- 4711, E-mail: Kenny@gk-biz.com, E-mail: Ehud@gk-biz.com