HAIFA, Israel, Nov. 23, 2021 /PRNewswire/ -- Elbit Systems
Ltd. (the "Company") (NASDAQ: ESLT)
(TASE: ESLT), the international high technology
company, reported today its consolidated results for the quarter
ended September 30, 2021.
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: "We are pleased with our third quarter
results that demonstrated the successful execution of our strategy
to build a diverse global footprint, which contributed to the 20%
revenue growth, as well as successful implementation of efficiency
measures that supported an improved operational performance. The
third quarter results and sustained demand from our customers
provide us with confidence in Elbit Systems' long term strategy and
future prospects."
Third quarter 2021 results:
Revenues in the third quarter of 2021 were
$1,363.6 million, as compared to
$1,134.2 million in the third quarter
of 2020. A major part of the growth was organic, in addition to the
contribution of Sparton, which was acquired in the second quarter
of 2021.
Non-GAAP(*) gross profit amounted to
$370.7 million (27.2% of revenues) in
the third quarter of 2021, as compared to $302.3 million (26.7% of revenues) in the third
quarter of 2020. GAAP gross profit in the third quarter of
2021 was $363.2 million (26.6% of
revenues), as compared to $237.4
million (20.9% of revenues) in the third quarter of 2020.
The GAAP gross profit in the third quarter of 2020 was affected by
non-cash expenses related to impairment of assets and inventory
write-offs due to the impact of COVID-19, in the amount of
approximately $60 million.
Research and development expenses, net were
$101.5 million (7.4% of revenues) in
the third quarter of 2021, as compared to $91.3 million (8.0% of revenues) in the third
quarter of 2020.
* see page 4
Marketing and selling expenses, net were $84.1 million (6.2% of revenues) in the third
quarter of 2021, as compared to $71.6
million (6.3% of revenues) in the third quarter of 2020.
General and administrative expenses, net were
$67.3 million (4.9% of revenues) in
the third quarter of 2021, as compared to $51.0 million (4.5% of revenues) in the third
quarter of 2020.
Non-GAAP(*) operating income was $123.0 million (9.0% of revenues) in the third
quarter of 2021, as compared to $93.1
million (8.2% of revenues) in the third quarter of 2020.
GAAP operating income in the third quarter of 2021 was
$110.3 million (8.1% of revenues), as
compared to $23.5 million (2.1% of
revenues) in the third quarter of 2020.
Financial expenses, net were $13.5 million in the third quarter of 2021, as
compared to $9.7 million in the third
quarter of 2020.
Other income, net were $0.3
million in the third quarter of 2021, as compared to other
income, net of $0.5 million in the
third quarter of 2020.
Taxes on income were $8.3
million in the third quarter of 2021, as compared to
$2.2 million in the third quarter of
2020.
Equity in net earnings of affiliated companies and
partnerships was $3.0 million in
the third quarter of 2021, as compared to $4.9 million in the third quarter of 2020.
Non-GAAP(*) net income attributable to the
Company's shareholders in the third quarter of 2021 was
$103.1 million (7.6% of revenues), as
compared to $72.7 million (6.4% of
revenues) in the third quarter of 2020. GAAP net income
attributable to the Company's shareholders in the third
quarter of 2021 was $91.9 million
(6.7% of revenues), as compared to $17.0
million (1.5% of revenues) in the third quarter of 2020.
Non-GAAP(*) diluted net earnings per share
attributable to the Company's shareholders were
$2.33 for the third quarter of 2021,
as compared to $1.64 for the third
quarter of 2020. GAAP diluted earnings per share attributable to
the Company's shareholders in the third quarter of 2021 were
$2.08, as compared to $0.38 in the third quarter of 2020.
The Company's backlog of orders as of
September 30, 2021 totaled $13.6
billion, similar to the backlog as of June 30, 2021. Approximately 72% of the current
backlog is attributable to orders from outside Israel. Approximately 40% of the backlog is
scheduled to be performed during the remainder of 2021 and
2022.
Cash flows provided by operating activities in the
nine months ended September 30, 2021 were $157.0 million, as compared to $106.7 million for the nine months ended
September 30, 2020.
Issuance of Notes. On July 7,
2021, the Company raised an aggregate amount of NIS 1.9 billion (approximately $575 million) from the issuance of three trances
of notes. In the third quarter of 2021 the Company entered into
swap transactions to convert the series B notes in the amount of
NIS 1.5 billion (approximately
$457 million) to USD with a fixed
annual interest rate of 1.92%.
* see page 4
Impact of the COVID-19 Pandemic on the Company:
The Coronavirus disease 2019 (COVID-19) was declared a pandemic
by the World Health Organization in March
2020. COVID-19 has had significant negative impacts on the
worldwide economy, resulting in disruptions to supply chains and
financial markets, significant travel restrictions, facility
closures and shelter-in place orders in various locations. Elbit
Systems is closely monitoring the evolution of the COVID-19
pandemic and its impacts on the Company's employees, customers and
suppliers, as well as on the global economy.
As we last reported on August 12,
2021, we have been taking a number of actions to protect the
safety of our employees as well as maintain business continuity and
secure our supply chain. We also reported on a number of activities
where we are leveraging our technological capabilities to assist
hospital staffs and other first responders protecting our
communities from the impact of the pandemic. All of these actions
remain ongoing.
We have implemented a series of cost control measures to help
limit the financial impact of the pandemic on the Company, in
parallel to the measures we are taking to maintain business
continuity and deliveries to our customers. We also are working on
efficiency initiatives with a number of our suppliers. We continue
to evaluate our operations on an ongoing basis in order to adapt to
the evolving business environment.
During 2020 and the first nine months of 2021 our defense
activities, which account for most of our business, were not
materially impacted by the pandemic, although some of our
businesses experienced certain disruptions due to government
directed safety measures, travel restrictions and supply chain
delays.
We believe that as of September 30,
2021, Elbit Systems had a healthy balance sheet, adequate
levels of cash and access to credit facilities that provide
liquidity when necessary. We have given high priority to cash
management and adequate cash reserves to run the business.
The extent of the impact of COVID-19 on the Company's
performance depends on future developments including the duration
and spread of the pandemic, the measures adopted by governments to
limit the spread of the pandemic, including implementation of
vaccinations, and resulting actions that may be taken by our
customers and our supply chain, all of which contain uncertainties.
As noted in our annual report on Form 20-F, the preparation of
financial reports requires us to make judgments, assumptions and
estimates that affect the amounts reported. For our financial
results for the quarter ended September 30, 2021, we considered the economic
impact of the COVID-19 pandemic on our critical and significant
accounting estimates. The expected impact of the COVID-19 pandemic
did not have a material effect on our judgments, assumptions and
estimates reflected in the results. However, our future results may
differ materially from our estimates. As events continue to evolve
in connection with the COVID-19 pandemic, the estimates we use in
future periods may change materially.
* see page 4
* Non-GAAP financial data:
The following non-GAAP financial data is presented to enable
investors to have additional information on the Company's business
performance as well as a further basis for periodical comparisons
and trends relating to the Company's financial results. The Company
believes such data provides useful information to investors by
facilitating more meaningful comparisons of the Company's financial
results over time. Such non-GAAP information is used by the
Company's management to make strategic decisions, forecast future
results and evaluate the Company's current performance. However,
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.
The non-GAAP financial data includes reconciliation adjustments
regarding non-GAAP gross profit, operating income, net income and
diluted EPS. In arriving at non-GAAP presentations, companies
generally factor out items such as those that have a non-recurring
impact on the income statements, various non-cash items including
significant exchange rate differences, significant effects of
retroactive tax legislation, changes in accounting guidance,
financial transactions and other items not considered to be
part of regular ongoing business, which, in management's judgment,
are items that are considered to be outside of the review of core
operating results.
In the Company's non-GAAP presentation, the Company made certain
adjustments, as indicated in the table below.
These non-GAAP measures are not based on any comprehensive set
of accounting rules or principles. The Company believes that
non-GAAP measures have limitations in that they do not reflect all
of the amounts associated with the Company's results of operations,
as determined in accordance with GAAP, and that these measures
should only be used to evaluate the Company's results of operations
in conjunction with the corresponding GAAP measures.
Investors 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 (Unaudited) Supplemental Financial
Data:
|
(US Dollars in
millions, except for per share amounts)
|
|
Nine Months
Ended
September 30,
2021
|
|
Nine Months
Ended
September 30,
2020
|
|
Three
Months
Ended
September 30,
2021
|
|
Three
Months
Ended
September 30,
2020
|
|
Year Ended
December 31,
2020
|
GAAP gross
profit
|
$
|
983.7
|
|
|
$
|
807.3
|
|
|
$
|
363.2
|
|
|
$
|
237.4
|
|
|
$
|
1,165.1
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased
intangible assets
|
19.8
|
|
|
17.5
|
|
|
7.5
|
|
|
5.5
|
|
|
22.7
|
|
Covid-19 related
expenses and write-offs
|
—
|
|
|
56.0
|
|
|
—
|
|
|
56.0
|
|
|
56.0
|
|
Impairment of
long-lived assets
|
—
|
|
|
3.4
|
|
|
—
|
|
|
3.4
|
|
|
3.4
|
|
Non-GAAP gross
profit
|
$
|
1,003.5
|
|
|
$
|
884.2
|
|
|
$
|
370.7
|
|
|
$
|
302.3
|
|
|
$
|
1,247.2
|
|
Percent of
revenues
|
26.5
|
%
|
|
26.9
|
%
|
|
27.2
|
%
|
|
26.7
|
%
|
|
26.7
|
%
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
|
311.2
|
|
|
$
|
221.1
|
|
|
$
|
110.3
|
|
|
$
|
23.5
|
|
|
$
|
325.7
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible
assets
|
34.3
|
|
|
30.2
|
|
|
12.7
|
|
|
9.6
|
|
|
39.4
|
|
Covid-19 related
expenses and write-offs
|
—
|
|
|
56.6
|
|
|
—
|
|
|
56.6
|
|
|
56.6
|
|
Impairment of
long-lived assets
|
—
|
|
|
3.4
|
|
|
—
|
|
|
3.4
|
|
|
3.4
|
|
Capital
gains
|
(14.7)
|
|
|
(35.0)
|
|
|
—
|
|
|
—
|
|
|
(35.0)
|
|
Non-GAAP operating
income
|
$
|
330.8
|
|
|
$
|
276.3
|
|
|
$
|
123.0
|
|
|
$
|
93.1
|
|
|
$
|
390.1
|
|
Percent of
revenues
|
8.7
|
%
|
|
8.4
|
%
|
|
9.0
|
%
|
|
8.2
|
%
|
|
8.4
|
%
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to
Elbit Systems' shareholders
|
$
|
266.2
|
|
|
$
|
169.8
|
|
|
$
|
91.9
|
|
|
$
|
17.0
|
|
|
$
|
237.7
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
34.3
|
|
|
30.2
|
|
|
12.7
|
|
|
9.6
|
|
|
39.4
|
|
Covid-19 related
expenses and write-offs
|
—
|
|
|
56.6
|
|
|
—
|
|
|
56.6
|
|
|
56.6
|
|
Capital
gains
|
(24.9)
|
|
|
(35.0)
|
|
|
—
|
|
|
—
|
|
|
(35.0)
|
|
Impairment of
investments and long-
lived assets
|
—
|
|
|
7.8
|
|
|
—
|
|
|
3.4
|
|
|
7.9
|
|
Revaluation of
investments measured
under fair value method
|
(4.8)
|
|
|
(21.4)
|
|
|
(3.2)
|
|
|
(2.8)
|
|
|
(20.8)
|
|
Non-operating foreign
exchange losses
|
3.4
|
|
|
5.6
|
|
|
3.4
|
|
|
(1.2)
|
|
|
33.4
|
|
Tax effect and other
tax items, net
|
(1.5)
|
|
|
(0.2)
|
|
|
(1.7)
|
|
|
(9.9)
|
|
|
(0.7)
|
|
Non-GAAP net income
attributable to
Elbit Systems' shareholders
|
$
|
272.7
|
|
|
$
|
213.4
|
|
|
$
|
103.1
|
|
|
$
|
72.7
|
|
|
$
|
318.5
|
|
Percent of
revenues
|
7.2
|
%
|
|
6.5
|
%
|
|
7.6
|
%
|
|
6.4
|
%
|
|
6.8
|
%
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
EPS
|
$
|
6.01
|
|
|
$
|
3.84
|
|
|
$
|
2.08
|
|
|
$
|
0.38
|
|
|
$
|
5.38
|
|
Adjustments,
net
|
0.15
|
|
|
0.99
|
|
|
0.25
|
|
|
1.26
|
|
|
1.82
|
|
Non-GAAP diluted
net EPS
|
$
|
6.16
|
|
|
$
|
4.83
|
|
|
$
|
2.33
|
|
|
$
|
1.64
|
|
|
$
|
7.20
|
|
Recent Events:
On September 1, 2021, the
Company announced that, after 20 years as Chief Financial Officer
("CFO") of the Company, and having held various managerial
positions in Elbit Systems and its subsidiaries around the world
for many years prior to that, Joseph
Gaspar will become Senior Executive Vice President ("EVP") -
Business Management. Dr. Kobi Kagan,
currently serving as Deputy General Manager and Senior Vice
President - Finance and Control of Elbit Systems Land, will replace
Mr. Gaspar as EVP and CFO. The appointments will become effective
as of April 1, 2022.
On September 13, 2021, the
Company announced that it was awarded contracts, in an aggregate
amount of approximately $56 million,
to supply Anti-Submarine Warfare capabilities to the Navy of a
country in Asia-Pacific. The
contracts will be performed over a 12-month period. Under the
contracts, Elbit Systems will provide the Seagull™ USVs (Unmanned
Surface Vessels) configured to perform ASW missions and the Towed
Reelable Active Passive Sonar (TRAPS) systems. The Seagull USVs
will integrate Helicopter/Ship Long-Range Active Sonars (HELRAS)
and will be equipped with the Company's autonomous suite, Combat
Management System and Satellite Communication capability.
On September 23, 2021, the
Company announced, further to the Company's announcement of
October 22, 2020, that its U.S.
subsidiary, Elbit Systems of America LLC, ("Elbit Systems of
America"), was awarded a second production order in the amount of
approximately $54 million to supply
Enhanced Night Vision Goggle – Binocular systems, provide spare
parts, logistics support and test equipment for the U.S. Army. The
order will be executed in Roanoke,
Virginia and will be supplied through February 2023. This order is part of an Other
Transaction Authority contract that could reach a maximum amount of
approximately $442 million.
On October 3, 2021, the
Company announced that its subsidiaries, Beyeonics Surgical
Ltd. ("Beyeonics Surgical") and Beyeonics Vision Ltd. ("Beyeonics
Vision"), concluded a financing round in an aggregate amount of
$36 million. The financing round is
comprised of an investment in Beyeonics Surgical and Beyeonics
Vision in an aggregate amount of $26
million led by the Italian investment fund TechWald Holding
and the Israeli investment fund Alive Israel HealthTech and with
participation of the existing shareholders LR Group, XT Hi-Tech,
Aurum Ventures and Mivtach Shamir; and a $10
million convertible loan to Beyeonics Vision by global
surgical ophthalmic company BVI Medical. Following the investment,
Elbit Systems is a minority shareholder in Beyeonics Surgical and
Beyeonics Vision.
On October 6, 2021 the
Company announced, that Elbit Systems of America, was awarded
an Indefinite Delivery/Indefinite Quantity ("ID/IQ") contract from
the U.S. Army to provide Integrated Helmet And Display Sight
Systems ("IHADSS") equipment for the AH-64 Apache helicopter fleet.
The contract, with a maximum potential value of up to approximately
$76 million, will be performed over a
five-year period. An initial delivery order of approximately
$6 million has been issued under this
ID/IQ contract, to be executed over a two-year period. The IHADSS
parts will be delivered to the U.S. Army from Elbit Systems of
America's Fort Worth, Texas,
engineering and manufacturing facility.
On October 21,
2021, the Company announced the signing of a definitive
agreement for the sale of all ordinary shares held by its
wholly-owned Israeli subsidiary, IMI Systems Ltd. ("IMI"), in IMI's
84.98%-owned subsidiary, Ashot Ashkelon Industries Ltd. (TASE: ASHO) ("Ashot") and all capital notes
of Ashot held by IMI and Elbit Systems, to FIMI Opportunity Funds,
for approximately $88 million in cash
(approximately NIS 285 million). The
transaction is conditioned on various closing terms, including
receipt of certain regulatory approvals.
On November 8, 2021, the
Company announced that Affinity Flying Training Services Ltd.
("Affinity"), its UK joint venture with Kellog, Brown and Root Ltd.
(NYSE: KBR) ("KBR"), was awarded an
approximately $88 million
(approximately £65 million) contract from the UK Ministry of
Defence for the operation of four additional Texan T-6C aircraft
for the UK Military Flying Training System program. The contract
will be performed over a 12-year period. Elbit Systems and KBR each
hold a 50% share in Affinity and will evenly benefit from the
contract.
On November 9, 2021, the
Company announced that its subsidiary, Elbit Systems UK Ltd.,
was awarded a contract valued at approximately $100 million (approximately £73 million) by
Babcock International Group Plc. (LSE:
BAB), to provide the Royal Navy with new Electronic Warfare
capabilities under Increment 1 of the Maritime Electronic Warfare
System Integrated Capability (MEWSIC) Program. The contract will be
performed over a period of 13 years and will include in-service
support.
On November 11, 2021, the
Company announced that it was awarded contracts in an
aggregate amount of approximately $74
million from the Defense Acquisition Program Administration
of the Ministry of National Defense of the Republic of South Korea, to supply a range of airborne
munitions as part of the Precision Fires Program of the Republic of
Korea Air Force. The contracts will be performed over a five-year
period.
On November 15, 2021, the
Company announced that it was awarded a contract valued at
approximately $106 million to supply
SIGMA fully automatic self-propelled howitzer gun systems to a
country in Asia-Pacific. The
contract will be fulfilled over a five-year period.
Dividend:
The Board of Directors declared a dividend of $0.46 per share for the third quarter of 2021.
The dividend's record date is December 20,
2021. The dividend will be paid on January 3, 2022, net of taxes.
Conference Call:
The Company will be hosting a conference call on Tuesday, November 23, 2021 at 9:00 a.m. Eastern Time. On the call, the
Company's 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/investor-relations/. 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 Ltd. is an international high technology company
engaged in a wide range of defense, homeland security and
commercial programs throughout the world. The Company, which
includes Elbit Systems and its subsidiaries, operates in the areas
of aerospace, land and naval systems, command, control,
communications, computers, intelligence surveillance and
reconnaissance ("C4ISR"), unmanned aircraft systems, advanced
electro-optics, electro-optic space systems, EW suites, signal
intelligence systems, data links and communications systems,
radios, cyber-based systems and munitions. The Company also focuses
on the upgrading of existing platforms, developing new technologies
for defense, homeland security and commercial applications and
providing a range of support services, including training and
simulation systems.
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 flow
Consolidated revenue distribution by areas of operation and by
geographical regions
Company
Contact:
Joseph Gaspar,
Executive VP & CFO
Tel:
+972-77-2946663
j.gaspar@elbitsystems.com
Rami Myerson,
Director, Investor Relations
Tel:
+972-77-2948984
rami.myerson@elbitsystems.com
David Vaaknin,
VP, Head of Corporate Communications
Tel:
+972-77-2946691
david.vaaknin@elbitsystems.com
|
IR
Contact:
Ehud
Helft
Kenny
Green
GK Investor
Relations
Tel:
1-646-201-9246
elbitsystems@gkir.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; 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 US
Dollar)
|
|
|
As
of September 30,
2020
(Unaudited)
|
|
As
of December 31,
2020
(Audited)
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
203,139
|
|
|
$
|
278,794
|
|
Short-term bank
deposits
|
1,437
|
|
|
1,524
|
|
Trade and unbilled
receivables and contract assets, net
|
2,805,137
|
|
|
2,519,562
|
|
Other receivables and
prepaid expenses
|
284,947
|
|
|
156,330
|
|
Inventories,
net
|
1,644,228
|
|
|
1,316,688
|
|
Total current
assets
|
4,938,888
|
|
|
4,272,898
|
|
|
|
|
|
Investments in
affiliated companies, partnerships and other companies
|
182,019
|
|
|
184,338
|
|
Long-term trade and
unbilled receivables and contract assets
|
287,778
|
|
|
312,097
|
|
Long-term bank
deposits and other receivables
|
67,995
|
|
|
69,269
|
|
Deferred income
taxes, net
|
91,432
|
|
|
118,513
|
|
Severance pay
fund
|
292,631
|
|
|
293,716
|
|
Total
|
921,855
|
|
|
977,933
|
|
|
|
|
|
Operating lease right
of use assets
|
412,774
|
|
|
423,088
|
|
Property, plant and
equipment, net
|
848,952
|
|
|
786,972
|
|
Goodwill and other
intangible assets, net
|
2,041,613
|
|
|
1,597,006
|
|
Total
assets
|
$
|
9,164,082
|
|
|
$
|
8,057,897
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Short-term bank
credit and loans
|
$
|
139,330
|
|
|
$
|
312,993
|
|
Current maturities of
long-term loans and Series B, C and D Notes
|
76,529
|
|
|
17,972
|
|
Operating lease
liability
|
70,865
|
|
|
65,520
|
|
Trade
payables
|
1,091,839
|
|
|
1,007,237
|
|
Other payables and
accrued expenses
|
1,190,789
|
|
|
1,218,273
|
|
Contract
liabilities
|
1,341,278
|
|
|
1,000,159
|
|
Total
|
3,910,630
|
|
|
3,622,154
|
|
|
|
|
|
Long-term loans, net
of current maturities
|
379,677
|
|
|
408,820
|
|
Series B,C and D
Notes, net of current maturities
|
512,502
|
|
|
—
|
|
Employee benefit
liabilities
|
905,031
|
|
|
914,364
|
|
Deferred income taxes
and tax liabilities, net
|
161,014
|
|
|
132,442
|
|
Contract
liabilities
|
238,725
|
|
|
169,073
|
|
Operating lease
liability
|
376,727
|
|
|
397,936
|
|
Other long-term
liabilities
|
185,080
|
|
|
181,741
|
|
Total
|
2,758,756
|
|
|
2,204,376
|
|
|
|
|
|
Elbit Systems Ltd.'s
equity
|
2,481,485
|
|
|
2,218,154
|
|
Non-controlling
interests
|
13,211
|
|
|
13,213
|
|
Total
equity
|
2,494,696
|
|
|
2,231,367
|
|
Total liabilities
and equity
|
$
|
9,164,082
|
|
|
$
|
8,057,897
|
|
ELBIT
SYSTEMS LTD.
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(In thousands of US
Dollars, except for share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Nine
Months
Ended
September
30, 2021
(Unaudited)
|
|
Nine
Months
Ended
September
30, 2020
(Unaudited)
|
|
Three
Months
Ended
September
30, 2021
(Unaudited)
|
|
Three
Months
Ended
September
30, 2020
(Unaudited)
|
|
Year Ended
December
31, 2020
(Audited)
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
3,784,248
|
|
|
$
|
3,284,840
|
|
|
$
|
1,363,596
|
|
|
$
|
1,134,169
|
|
|
$
|
4,662,572
|
|
Cost of
revenues
|
2,800,549
|
|
|
2,477,567
|
|
|
1,000,439
|
|
|
896,780
|
|
|
3,497,465
|
|
Gross
profit
|
983,699
|
|
|
807,273
|
|
|
363,157
|
|
|
237,389
|
|
|
1,165,107
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development, net
|
281,136
|
|
|
250,683
|
|
|
101,467
|
|
|
91,282
|
|
|
359,745
|
|
Marketing and
selling, net
|
210,997
|
|
|
209,477
|
|
|
84,140
|
|
|
71,557
|
|
|
290,703
|
|
General and
administrative, net
|
194,989
|
|
|
161,015
|
|
|
67,285
|
|
|
51,020
|
|
|
223,935
|
|
Other operating
income, net
|
(14,660)
|
|
|
(34,963)
|
|
|
—
|
|
|
—
|
|
|
(34,963)
|
|
Total operating
expenses
|
672,462
|
|
|
586,212
|
|
|
252,892
|
|
|
213,859
|
|
|
839,420
|
|
Operating
income
|
311,237
|
|
|
221,061
|
|
|
110,265
|
|
|
23,530
|
|
|
325,687
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
(20,779)
|
|
|
(38,745)
|
|
|
(13,484)
|
|
|
(9,673)
|
|
|
(71,270)
|
|
Other income
(expense), net
|
(4,341)
|
|
|
14,740
|
|
|
324
|
|
|
525
|
|
|
7,408
|
|
Income before income
taxes
|
286,117
|
|
|
197,056
|
|
|
97,105
|
|
|
14,382
|
|
|
261,825
|
|
Taxes on
income
|
(39,212)
|
|
|
(34,565)
|
|
|
(8,319)
|
|
|
(2,215)
|
|
|
(36,443)
|
|
Income after income
taxes
|
246,905
|
|
|
162,491
|
|
|
88,786
|
|
|
12,167
|
|
|
225,382
|
|
Equity in net
earnings (losses) of affiliated
companies and partnerships
|
19,476
|
|
|
7,579
|
|
|
2,985
|
|
|
4,880
|
|
|
12,604
|
|
Net
income
|
$
|
266,381
|
|
|
$
|
170,070
|
|
|
$
|
91,771
|
|
|
$
|
17,047
|
|
|
$
|
237,986
|
|
|
|
|
|
|
|
|
|
|
|
Less: net income
attributable to non-
controlling interests
|
(217)
|
|
|
(235)
|
|
|
135
|
|
|
(73)
|
|
|
(328)
|
|
Net income
attributable to Elbit
Systems Ltd.'s shareholders
|
$
|
266,164
|
|
|
$
|
169,835
|
|
|
$
|
91,906
|
|
|
$
|
16,974
|
|
|
$
|
237,658
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Elbit Systems Ltd.'s
shareholders:
|
|
|
|
|
|
|
|
|
Basic net earnings
per share
|
$
|
6.02
|
|
|
$
|
3.84
|
|
|
$
|
2.08
|
|
|
$
|
0.38
|
|
|
$
|
5.38
|
|
Diluted net earnings
per share
|
$
|
6.01
|
|
|
$
|
3.84
|
|
|
$
|
2.08
|
|
|
$
|
0.38
|
|
|
$
|
5.38
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computation
of (in thousands):
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
44,201
|
|
|
44,198
|
|
|
44,206
|
|
|
44,198
|
|
|
44,198
|
|
Diluted earnings per
share
|
44,253
|
|
|
44,220
|
|
|
44,270
|
|
|
44,221
|
|
|
44,215
|
|
ELBIT SYSTEMS
LTD.
|
CONSOLIDATED
STATEMENTS OF CASH FLOW
|
(In thousands of US
Dollars)
|
|
|
Nine Months
Ended
September 30,
2021
(Unaudited)
|
|
Nine Months
Ended
September 30,
2020
(Unaudited)
|
|
Year ended
December 31,
2020 (Audited)
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net income
|
$
|
266,381
|
|
|
$
|
170,070
|
|
|
$
|
237,986
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
112,476
|
|
|
109,040
|
|
|
144,420
|
|
Write-off
impairment
|
—
|
|
|
7,771
|
|
|
7,932
|
|
Stock-based
compensation
|
3,614
|
|
|
3,064
|
|
|
4,086
|
|
Amortization of Series
A, B, C and D Notes related issuance costs, net
|
217
|
|
|
(46)
|
|
|
(46)
|
|
Deferred income taxes
and reserve, net
|
15,757
|
|
|
(12,773)
|
|
|
(5,345)
|
|
Gain on sale of
property, plant and equipment
|
(14,602)
|
|
|
(32,180)
|
|
|
(34,926)
|
|
Gain on sale of
investment, remeasurement of investment held under fair value
method
|
(3,925)
|
|
|
(23,652)
|
|
|
(23,572)
|
|
Equity in net
earnings of affiliated companies and partnerships, net of
dividends
received(*)
|
(4,187)
|
|
|
(5,862)
|
|
|
(7,853)
|
|
Changes in operating
assets and liabilities, net of amounts acquired:
|
|
|
|
|
|
Increase in short and
long-term trade and unbilled receivables and prepaid
expenses
|
(375,093)
|
|
|
(242,994)
|
|
|
(508,057)
|
|
Increase in
inventories, net
|
(289,214)
|
|
|
(78,874)
|
|
|
(69,762)
|
|
Increase (decrease) in
trade payables and other payables and accrued
expenses
|
42,723
|
|
|
(13,739)
|
|
|
143,847
|
|
Severance, pension and
termination indemnities, net
|
2,039
|
|
|
(3,874)
|
|
|
31,394
|
|
Increase in contract
liabilities
|
400,802
|
|
|
230,757
|
|
|
358,730
|
|
Net cash provided by
operating activities
|
156,988
|
|
|
106,708
|
|
|
278,834
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Purchase of property,
plant and equipment and other assets
|
(115,873)
|
|
|
(92,945)
|
|
|
(132,210)
|
|
Acquisitions of
subsidiaries and business operations
|
(383,006)
|
|
|
—
|
|
|
218
|
|
Deferred payment on
acquisition
|
(60,560)
|
|
|
—
|
|
|
—
|
|
Investments in
affiliated companies and other companies, net
|
(342)
|
|
|
(12,316)
|
|
|
(8,212)
|
|
Proceeds from sale of
property, plant and equipment
|
19,476
|
|
|
71,918
|
|
|
71,933
|
|
Proceeds from sale of
investments
|
16,177
|
|
|
44,200
|
|
|
44,200
|
|
Proceeds from sale of
long-term deposits, net
|
192
|
|
|
(161)
|
|
|
221
|
|
Investment in
short-term deposits, net
|
(435)
|
|
|
(600)
|
|
|
(683)
|
|
Proceeds from sale of
short-term deposits
|
6,334
|
|
|
1,663
|
|
|
1,666
|
|
Net cash provided by
(used in) investing activities
|
(518,037)
|
|
|
11,759
|
|
|
(22,867)
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Issuance of
shares
|
2
|
|
|
—
|
|
|
—
|
|
Repayment of long-term
bank loans
|
(513,292)
|
|
|
(205,923)
|
|
|
(370,367)
|
|
Proceeds from long-term
bank loans
|
476,273
|
|
|
201,551
|
|
|
201,551
|
|
Issuance of Series B,C
and D Notes
|
575,249
|
|
|
—
|
|
|
—
|
|
Repayment of Series A
Notes
|
—
|
|
|
(55,532)
|
|
|
(55,532)
|
|
Dividends
paid
|
(79,175)
|
|
|
(74,308)
|
|
|
(78,194)
|
|
Change in short-term
bank credit and loans, net
|
(173,663)
|
|
|
81,836
|
|
|
104,309
|
|
Net cash provided by
(used in) financing activities
|
285,394
|
|
|
(52,376)
|
|
|
(198,233)
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
(75,655)
|
|
|
66,091
|
|
|
57,734
|
|
Cash and cash
equivalents at the beginning of the year
|
278,794
|
|
|
221,060
|
|
|
221,060
|
|
Cash and cash
equivalents at the end of the year
|
$
|
203,139
|
|
|
$
|
287,151
|
|
|
$
|
278,794
|
|
|
|
|
|
|
|
* Dividend received
from affiliated companies and partnerships
|
$
|
15,289
|
|
|
$
|
6,117
|
|
|
$
|
9,151
|
|
ELBIT SYSTEMS
LTD.
|
DISTRIBUTION OF
REVENUES
|
(In millions of US
Dollars)
|
|
Consolidated
Revenues by Areas of Operation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended September
30, 2021
|
|
%
|
|
Nine Months
Ended September
30, 2020
|
|
%
|
|
Three Months
Ended September
30, 2021
|
|
%
|
|
Three Months
Ended September
30, 2020
|
|
%
|
Airborne
systems
|
1,437.6
|
|
|
38.0
|
|
|
1,170.0
|
|
|
35.7
|
|
|
509.6
|
|
|
37.3
|
|
|
393.0
|
|
|
34.7
|
|
Land
systems
|
901.6
|
|
|
23.8
|
|
|
916.8
|
|
|
27.9
|
|
|
317.3
|
|
|
23.3
|
|
|
323.9
|
|
|
28.6
|
|
C4ISR
systems
|
970.6
|
|
|
25.6
|
|
|
759.6
|
|
|
23.1
|
|
|
368.3
|
|
|
27.0
|
|
|
280.3
|
|
|
24.7
|
|
Electro-optic
systems
|
335.0
|
|
|
8.9
|
|
|
359.5
|
|
|
10.9
|
|
|
132.1
|
|
|
9.7
|
|
|
108.2
|
|
|
9.5
|
|
Other (mainly
non-
defense engineering and
production services)
|
139.4
|
|
|
3.7
|
|
|
78.9
|
|
|
2.4
|
|
|
36.3
|
|
|
2.7
|
|
|
28.7
|
|
|
2.5
|
|
Total
|
3,784.2
|
|
|
100.0
|
|
|
3,284.8
|
|
|
100.0
|
|
|
1,363.6
|
|
|
100.0
|
|
|
1,134.1
|
|
|
100.0
|
|
Consolidated
Revenues by Geographical Regions:
|
|
|
Nine Months
Ended September
30, 2021
|
|
%
|
|
Nine Months
Ended September
30, 2020
|
|
%
|
|
Three Months
Ended September
30, 2021
|
|
%
|
|
Three Months
Ended September
30, 2020
|
|
%
|
Israel
|
797.2
|
|
|
21.1
|
|
|
796.7
|
|
|
24.3
|
|
|
244.3
|
|
|
17.9
|
|
|
284.8
|
|
|
25.1
|
|
North
America
|
1,207.3
|
|
|
31.9
|
|
|
1,077.1
|
|
|
32.8
|
|
|
413.6
|
|
|
30.3
|
|
|
343.8
|
|
|
30.3
|
|
Europe
|
630.6
|
|
|
16.7
|
|
|
557.1
|
|
|
17.0
|
|
|
237.0
|
|
|
17.4
|
|
|
209.5
|
|
|
18.5
|
|
Asia-Pacific
|
990.3
|
|
|
26.2
|
|
|
683.8
|
|
|
20.8
|
|
|
417.7
|
|
|
30.6
|
|
|
252.6
|
|
|
22.3
|
|
Latin
America
|
92.4
|
|
|
2.4
|
|
|
99.5
|
|
|
3.0
|
|
|
29.6
|
|
|
2.2
|
|
|
25.5
|
|
|
2.2
|
|
Other
countries
|
66.4
|
|
|
1.7
|
|
|
70.6
|
|
|
2.1
|
|
|
21.4
|
|
|
1.6
|
|
|
17.9
|
|
|
1.6
|
|
Total
|
3,784.2
|
|
|
100.0
|
|
|
3,284.8
|
|
|
100.0
|
|
|
1,363.6
|
|
|
100.0
|
|
|
1,134.1
|
|
|
100.0
|
|
View original
content:https://www.prnewswire.com/news-releases/elbit-systems-reports-third-quarter-2021-results-301430676.html
SOURCE Elbit Systems Ltd