Backlog of orders at $14.7 billion; Revenues of $1.3 billion;
Non-GAAP net income of $63 million;
GAAP net income of $56
million;
Non-GAAP net EPS of $1.40; GAAP net EPS of $1.26
HAIFA,
Israel, Nov. 29, 2022 /PRNewswire/
-- Elbit Systems Ltd. ("Elbit Systems" or the
"Company") (NASDAQ: ESLT) (TASE: ESLT), the international high
technology company, reported today its consolidated results for the
quarter ended September 30, 2022.
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 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: "The current environment presents
opportunities and challenges for Elbit Systems. Elevated
geopolitical tensions and growing defense budgets have created
multiple opportunities and we are increasing investment in business
development to realize the potential from these trends.
Our people are our most important asset and their contribution
is critical to our long term success. This year and as part of our
efforts to retain high performing employees, we have awarded stock
price linked compensation plans and have incurred related costs. We
have also increased inventories in recent quarters as part of our
efforts to mitigate the impact of global supply chain disruptions
and maintain timely deliveries to our customers. Our working
assumption is that supply chain and labor inflation pressures will
gradually subside from the second half of 2023.
We continue to invest in Elbit Systems' portfolio of advanced
technological capabilities including unmanned systems, C4I, EW,
maritime solutions and precision munitions. The significant orders
received in 2022 have highlighted the relevance of our portfolio to
our customers and support future growth prospects".
Third quarter 2022 results:
Revenues in the third quarter of 2022 were
$1,348.9 million, as compared to
$1,363.6 million in the third
quarter of 2021.
Non-GAAP(*) gross profit amounted to
$337.9 million (25.0% of revenues) in
the third quarter of 2022, as compared to $370.7 million (27.2% of revenues) in the third
quarter of 2021. GAAP gross profit in the third quarter of
2022 was $326.0 million (24.2% of
revenues), as compared to $363.2
million (26.6% of revenues) in the third quarter of 2021.
The GAAP and Non-GAAP gross profit in the third quarter of 2022
includes expenses of approximately $13
million related to the effect of the significant increase in
the Company's share price on employees' stock price linked
compensation plans.
*see Non-GAAP financial data
Research and development expenses, net were 113.2
million (8.4% of revenues) in the third quarter of 2022, as
compared to 101.5 million (7.4% of revenues) in the third quarter
of 2021.
Marketing and selling expenses, net were $68.5 million (5.1% of revenues) in the
third quarter of 2022, as compared to $84.1 million (6.2% of revenues) in the
third quarter of 2021.
General and administrative expenses, net were
$80.2 million (5.9% of revenues)
in the third quarter of 2022, as compared to $67.3 million (4.9% of revenues) in the
third quarter of 2021.
Other operating income, net were $9.4 million in the third quarter of 2022. Other
operating income, net in the third quarter of 2022 was a result of
a capital gain from sale of a building in Israel.
Non-GAAP(*) operating income was $84.3 million (6.3% of revenues) in the third
quarter of 2022, as compared to $123.0
million (9.0% of revenues) in the third quarter of 2021.
GAAP operating income in the third quarter of 2022 was
$73.4 million (5.4% of revenues), as
compared to $110.3 million (8.1% of
revenues) in the third quarter of 2021. GAAP and
Non-GAAP(*) operating income in the third quarter
of 2022 was reduced by expenses of approximately $22 million related to the Company's stock price
linked compensation plans.
Financial expenses, net were $16.4 million in the third quarter of 2022,
as compared to $13.5 million in
the third quarter of 2021.
Other income, net were $4.8 million in the third quarter of 2022,
as compared to $0.3 million in
the third quarter of 2021. Other income, net in the third quarter
of 2022 resulted mainly from revaluation of holdings in an
affiliated company.
Taxes on income were $7.9 million in the third quarter of 2022,
as compared to $8.3 million in
the third quarter of 2021.
Equity in net earnings of affiliated companies and
partnerships were $2.3 million in the third quarter of 2022,
as compared to $3.0 million in
the third quarter of 2021.
Non-GAAP(*) net income attributable to the
Company's shareholders in the third quarter of 2022 was
$62.6 million (4.6% of revenues), as
compared to $103.1 million (7.6%
of revenues) in the third quarter of 2021. GAAP net income
attributable to the Company's shareholders in the third
quarter of 2022 was $56.2 million (4.2% of revenues), as
compared to $91.9 million (6.7%
of revenues) in the third quarter of 2021. Net income in the third
quarter of 2022 was reduced by net expenses of approximately
$20 million related to the Company's
stock price linked compensation plans.
Non-GAAP(*) diluted net earnings per share
attributable to the Company's shareholders were
$1.40 for the third quarter of 2022,
as compared to $2.33 for the third
quarter of 2021. GAAP diluted earnings per share attributable to
the Company's shareholders in the third quarter of 2022 were
$1.26, as compared to $2.08 in the third quarter of 2021. Diluted net
earnings per share in the third quarter of 2022, were reduced by
$0.45 as a result of the expenses
related to the Company's stock price linked compensation plans.
*see Non-GAAP financial data
The Company's backlog of orders as of
September 30, 2022 totaled $14.7 billion. Approximately 75% 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 2022 and 2023.
Cash flows provided by operating activities in the
nine months ended September 30, 2022 were $44.6 million, as compared to $157.0 million in the nine months ended
September 30, 2021. Cash flows in 2022 included an amount of
approximately $76 million of a
one-time tax payment related to the Company's implementation of the
amendment to the law of Encouragement of Capital Investments
allowing payment of reduced corporate tax for the release of exempt
earnings from "Approved Enterprises" and "Privileged Enterprises"
in Israel, as reported in our 2021
annual report.
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. Such
disruptions also led to global shortages of electronics and other
components, increased costs and extended lead times. 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 16,
2022, 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. 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 2021 and the first nine months of 2022 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,
2022, 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 for the year ended
December 31, 2021, 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,
2022, 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.
* 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, 2022
|
|
Nine
months
ended
September
30, 2021
|
|
Three
months
ended
September
30, 2022
|
|
Three
months
ended
September
30, 2021
|
|
Year
ended
December
31, 2021
|
|
GAAP gross
profit
|
$ 992.7
|
|
$ 983.7
|
|
$ 326.0
|
|
$ 363.2
|
|
$
1,358.0
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
24.5
|
|
19.8
|
|
11.9
|
|
7.5
|
|
26.7
|
|
Non-GAAP gross
profit
|
$
1,017.2
|
|
$
1,003.5
|
|
$ 337.9
|
|
$ 370.7
|
|
$
1,384.7
|
|
Percent of
revenues
|
25.4 %
|
|
26.5 %
|
|
25.0 %
|
|
27.2 %
|
|
26.2 %
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$ 247.2
|
|
$ 311.2
|
|
$
73.4
|
|
$ 110.3
|
|
$ 418.5
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
37.8
|
|
34.3
|
|
11.5
|
|
12.7
|
|
47.0
|
|
Capital gain
|
(31.5)
|
|
(14.7)
|
|
(0.6)
|
|
—
|
|
(14.7)
|
|
Non-GAAP operating
income
|
$ 253.5
|
|
$ 330.8
|
|
$
84.3
|
|
$ 123.0
|
|
$ 450.8
|
|
Percent of
revenues
|
6.3 %
|
|
8.7 %
|
|
6.3 %
|
|
9.0 %
|
|
8.5 %
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to Elbit Systems'
shareholders
|
$ 190.2
|
|
$ 266.2
|
|
$
56.2
|
|
$
91.9
|
|
$ 274.4
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
37.8
|
|
34.3
|
|
11.5
|
|
12.7
|
|
47.0
|
|
Capital gain
|
(20.5)
|
|
(24.9)
|
|
(0.6)
|
|
—
|
|
(24.9)
|
|
Revaluation of
investment measured under fair value
method
|
(4.6)
|
|
(4.8)
|
|
(4.6)
|
|
(3.2)
|
|
(17.3)
|
|
Non-operating foreign
exchange (gains) losses
|
(7.5)
|
|
3.4
|
|
0.9
|
|
3.4
|
|
10.6
|
|
Tax effect and other
tax items, net
|
(1.5)
|
|
(1.5)
|
|
(0.8)
|
|
(1.7)
|
|
77.8
|
|
Non-GAAP net income
attributable to Elbit
Systems' shareholders
|
$ 193.9
|
|
$ 272.7
|
|
$
62.6
|
|
$ 103.1
|
|
$ 367.6
|
|
Percent of
revenues
|
4.8 %
|
|
7.2 %
|
|
4.6 %
|
|
7.6 %
|
|
7.0 %
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
EPS
|
$
4.27
|
|
$
6.01
|
|
$
1.26
|
|
$
2.08
|
|
$
6.20
|
|
Adjustments,
net
|
0.08
|
|
0.15
|
|
0.14
|
|
0.25
|
|
2.10
|
|
Non-GAAP diluted net
EPS
|
$
4.35
|
|
$
6.16
|
|
$
1.40
|
|
$
2.33
|
|
$
8.30
|
Recent Events:
On August 17,
2022, the Company announced that it was awarded two
contracts, in an aggregate amount valued at $240 million, to upgrade Main Battle Tanks for an
international customer. A $60 million
contract will be delivered over a period of two years and a
$180 million contract will be
delivered over a period of four years.
On September 12,
2022, the Company announced that its U.S.
subsidiary, Elbit Systems of America LLC, ("Elbit Systems of
America"), was awarded an Indefinite Delivery/Indefinite Quantity
(ID/IQ) contract with a maximum potential value of up to
approximately $49 million, to provide
120mm mortar systems for the U.S. Army. The contract will be
executed in Fort Worth, Texas over
a period of five years. An initial delivery order of approximately
$10 million has been issued under
this ID/IQ contract, to be executed over a two-year period.
On September 12,
2022, the Company announced that Elbit Systems of
America was awarded a $10 million
contract by SOSSEC, Inc. to begin phase II of the development of an
Advanced Low Light Level Sensor that is intended to be used to
support the U.S. Army's Integrated Visual Augmentation System 2.0
for soldiers. The contract will be executed through 2025 and the
work will be conducted in Roanoke,
Virginia.
On September 13,
2022, the Company announced that it was awarded a
contract valued at approximately $76
million to supply an Electronic Warfare training capability
to the Air Force of a country in Asia-Pacific. The contract will be performed
over a period of two years.
On September 22, 2022, the
Company announced that it was awarded a contract valued at
$80 million to supply unmanned
turrets for Armoured Fighting Vehicles of an Asian-Pacific country.
The contract will be performed over a three-year period.
On September 28, 2022, the
Company announced that the Israel Securities Authority extended the
term of the Company's shelf prospectus filed in September 2020, by 12 months, until September 29, 2023.
On September 28, 2022, the
Company announced that it was awarded a contract valued at
$120 million to supply
Hermes™ 900 Maritime Unmanned Aircraft Systems and training
capabilities to the Royal Thai Navy. The contract will be performed
over a three-year period.
On October 12, 2022, the
Company announced that Elbit Systems of America, was awarded an
order valued at approximately $107
million for the supply of Enhanced Night Vision Goggle –
Binocular systems, spare parts, logistics support, and test
equipment, for the U.S. Army. The order will be executed in
Roanoke, Virginia and will be
supplied during the years 2023 and 2024.
On October 26, 2022, the
Company announced that it was awarded a contract valued at
approximately $65 million to supply a
modernization solution to a Latin American Army. The contract will
be executed over a period of two and a half years.
On October 27, 2022, the
Company announced that Sparton De Leon Springs LLC, a subsidiary of
Elbit Systems of America LLC, together with two other companies,
were awarded an estimated aggregate joint ceiling of $5.1 billion for firm-fixed-price modifications
to a previously awarded ID/IQ contract to supply sonobuoy
capabilities to the U.S. Navy. According to the U.S Department of
Defense, no funds were obligated at the time of award. The
companies have an opportunity to compete for individual orders and
funds will be obligated on individual orders as they are
issued.
On October 27, 2022, the
Company announced that it was awarded a contract valued at
approximately $215 million to provide
an aerial intelligence solution to an Asia-Pacific country. The contract will be
delivered over a period of two years.
On October 31, 2022, the
Company announced that it was awarded a contract valued at
approximately $25 million from the
Finish Ministry of Defence to supply radio communications systems
to the Finish Army. The contract will be executed over a two-year
period.
On November 10, 2022, the
Company announced that its subsidiary Elbit Systems UK Ltd. ("Elbit
Systems UK") was awarded a follow-on contract valued at
approximately $19 million
(approximately £17 million) to supply Night Vision Goggles and
through-life support to the British Army. The contract will be
executed over a 18-month period.
On November 14, 2022, the
Company announced that it was awarded a contract valued at
$72 million to supply Hermes 900
Unmanned Aircraft Systems and training capabilities to an
international customer. The contract will be performed over a
two-year period.
On November 17, 2022, the
Company announced that at its Annual General Meeting of
Shareholders held on November 16,
2022 at the Company's offices in Haifa, the proposed resolutions described in
the Proxy Statement to the Shareholders dated October 6, 2022 and detailed hereunder, were
approved by the respective required majority:
- "to re-elect to the Board the following seven members who are
not "External Directors" as defined in the Israeli Companies Law
5759-1999, to serve until the close of the next Annual General
Meeting of Shareholders: Mr. Michael
Federmann, Mrs. Rina Baum,
Mr. Yoram Ben-Zeev, Mr. David Federmann, Mr. Dov Ninveh, Prof. Ehood
(Udi) Nisan, and Prof. Yuli
Tamir;
- to re-elect Mrs. Bilha (Billy)
Shapira to an additional three-year term as an External
Director; and
- to re-appoint Kost, Forer, Gabbay & Kasierer, a member of
Ernst & Young Global, as the Company's independent auditor for
the fiscal year ending December 31,
2022, and until the close of the next Annual General Meeting
of Shareholders."
On November 17, 2022, the
Company announced that it was awarded a contract valued at
approximately $200 million to supply
Electronic Warfare and airborne laser technologies to protect
military helicopters of a country in Asia-Pacific. The contract will be executed
over a four-year period.
Dividend:
The Board of Directors declared a dividend of $ 0.5 per share for the third quarter of 2022.
The dividend's record date is December 27,
2022. The dividend will be paid on January 9, 2023, after deduction of taxes at the
source, at the rate of 16.8%.
Conference Call:
The Company will be hosting a conference call today,
Tuesday, November 29, 2022, at
9:00 a.m. Eastern Time. On the call,
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. 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 flows
Consolidated revenue distribution by areas of operation and by
geographical regions
|
Company
Contact:
Joseph Gaspar,
Senior Executive VP – Business
Management
Tel:
+972-77-2948661
j.gaspar@elbitsystems.com
Dr. Yaacov (Kobi)
Kagan, Executive VP - CFO
Tel:
+972-77-2946663
j.gaspar@elbitsystems.com
Rami Myerson,
Director, Investor Relations
Tel:
+972-77-2948984
j.gaspar@elbitsystems.com
David Vaaknin,
VP, Head of Corporate Communications
Tel:
+972-77-2946691
j.gaspar@elbitsystems.com
|
IR
Contact:
Ehud
Helft
EK Global Investor
Relations
Tel:
1-212-378-8040
elbitsystems@egkir.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 of US
Dollar)
|
|
As of
September 30,
2022
(Unaudited)
|
|
As of
December 31,
2021
(Audited)
|
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
$
248,181
|
|
$
258,993
|
|
Short-term bank
deposits
|
1,094
|
|
1,185
|
|
Trade and unbilled
receivables and contract assets, net
|
2,704,059
|
|
2,770,124
|
|
Other receivables and
prepaid expenses
|
335,388
|
|
279,228
|
|
Inventories,
net
|
1,912,883
|
|
1,670,474
|
|
Total current
assets
|
5,201,605
|
|
4,980,004
|
|
|
|
|
|
Investments in
affiliated companies, partnerships and other companies
|
177,751
|
|
182,553
|
|
Long-term trade and
unbilled receivables and contract assets
|
379,376
|
|
316,074
|
|
Long-term bank deposits
and other receivables
|
158,374
|
|
133,505
|
|
Deferred income taxes,
net
|
23,133
|
|
65,274
|
|
Severance pay
fund
|
244,792
|
|
301,192
|
|
Total
|
983,426
|
|
998,598
|
|
|
|
|
|
Operating lease right
of use assets
|
409,308
|
|
416,383
|
|
Property, plant and
equipment, net
|
921,194
|
|
902,684
|
|
Goodwill and other
intangible assets, net
|
1,936,747
|
|
2,019,675
|
|
Total assets
|
$
9,452,280
|
|
$
9,317,344
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Short-term bank credit
and loans
|
$
133,020
|
|
$
27,676
|
|
Current maturities of
long-term loans and Series B, C and D Notes
|
75,723
|
|
78,682
|
|
Operating lease
liabilities
|
70,736
|
|
76,778
|
|
Trade
payables
|
1,124,259
|
|
1,023,679
|
|
Other payables and
accrued expenses
|
1,296,068
|
|
1,314,321
|
|
Contract
liabilities
|
1,804,565
|
|
1,502,955
|
|
Total current
liabilities
|
4,504,371
|
|
4,024,091
|
|
|
|
|
|
Long-term loans, net of
current maturities
|
381,258
|
|
356,624
|
|
Series B, C and D
Notes, net of current maturities
|
412,507
|
|
528,324
|
|
Employee benefit
liabilities
|
739,828
|
|
884,353
|
|
Deferred income taxes
and tax liabilities, net
|
71,400
|
|
141,451
|
|
Contract
liabilities
|
199,555
|
|
293,984
|
|
Operating lease
liabilities
|
343,616
|
|
386,644
|
|
Other long-term
liabilities
|
196,612
|
|
155,610
|
|
Total long-term
liabilities
|
2,344,776
|
|
2,746,990
|
|
|
|
|
|
Elbit Systems Ltd.'s
equity
|
2,600,988
|
|
2,531,635
|
|
Non-controlling
interests
|
2,145
|
|
14,628
|
|
Total equity
|
2,603,133
|
|
2,546,263
|
|
Total liabilities and
equity
|
$
9,452,280
|
|
$
9,317,344
|
|
ELBIT SYSTEMS
LTD.
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
(In thousands of US
Dollars, except for share and per share amounts)
|
|
Nine months
ended
September
30, 2022
(Unaudited)
|
|
Nine months
ended
September
30, 2021
(Unaudited)
|
|
Three
months
ended
September
30, 2022
(Unaudited)
|
|
Three
months
ended
September
30, 2021
(Unaudited)
|
|
Year ended
December
31, 2021
(Audited)
|
|
Revenues
|
$
4,005,119
|
|
$
3,784,248
|
|
$
1,348,940
|
|
$
1,363,596
|
|
$
5,278,521
|
|
Cost of
revenues
|
3,012,466
|
|
2,800,549
|
|
1,022,959
|
|
1,000,439
|
|
3,920,473
|
|
Gross profit
|
992,653
|
|
983,699
|
|
325,981
|
|
363,157
|
|
1,358,048
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Research and
development, net
|
310,225
|
|
281,136
|
|
113,193
|
|
101,467
|
|
395,087
|
|
Marketing and selling,
net
|
238,275
|
|
210,997
|
|
68,521
|
|
84,140
|
|
291,751
|
|
General and
administrative, net
|
237,274
|
|
194,989
|
|
80,220
|
|
67,285
|
|
267,362
|
|
Other operating income,
net
|
(40,274)
|
|
(14,660)
|
|
(9,374)
|
|
—
|
|
(14,660)
|
|
Total operating
expenses
|
745,500
|
|
672,462
|
|
252,560
|
|
252,892
|
|
939,540
|
|
Operating
income
|
247,153
|
|
311,237
|
|
73,421
|
|
110,265
|
|
418,508
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
(24,605)
|
|
(20,779)
|
|
(16,396)
|
|
(13,484)
|
|
(40,393)
|
|
Other income (expense),
net
|
(9,096)
|
|
(4,341)
|
|
4,822
|
|
324
|
|
5,336
|
|
Income before income
taxes
|
213,452
|
|
286,117
|
|
61,847
|
|
97,105
|
|
383,451
|
|
Taxes on
income
|
(28,678)
|
|
(39,212)
|
|
(7,932)
|
|
(8,319)
|
|
(131,387)
|
|
Income after taxes on
income
|
184,774
|
|
246,905
|
|
53,915
|
|
88,786
|
|
252,064
|
|
|
|
|
|
|
|
|
|
|
|
Equity in net earnings
of affiliated
companies and partnerships
|
5,224
|
|
19,476
|
|
2,313
|
|
2,985
|
|
22,599
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
189,998
|
|
$
266,381
|
|
$
56,228
|
|
$
91,771
|
|
$
274,663
|
|
|
|
|
|
|
|
|
|
|
|
Less: net income
attributable to non-
controlling interests
|
154
|
|
(217)
|
|
(7)
|
|
135
|
|
(313)
|
|
Net income
attributable to Elbit Systems
Ltd.'s shareholders
|
$
190,152
|
|
$
266,164
|
|
$
56,221
|
|
$
91,906
|
|
$
274,350
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to
Elbit Systems Ltd.'s
shareholders:
|
|
|
|
|
|
|
|
|
|
|
Basic net earnings per
share
|
$
4.29
|
|
$
6.02
|
|
$
1.27
|
|
$
2.08
|
|
$
6.21
|
|
Diluted net earnings
per share
|
$
4.27
|
|
$
6.01
|
|
$
1.26
|
|
$
2.08
|
|
$
6.20
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares used
in computation
of:
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share (in thousands)
|
44,314
|
|
44,201
|
|
44,336
|
|
44,206
|
|
44,204
|
|
Diluted earnings per
share (in thousands)
|
44,581
|
|
44,253
|
|
44,638
|
|
44,270
|
|
44,278
|
|
ELBIT SYSTEMS
LTD.
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOW
|
|
(In thousands of US
Dollars)
|
|
Nine months
ended
September
30, 2022
(Unaudited)
|
|
Nine months
ended
September
30, 2021
(Unaudited)
|
|
Year ended
December
31, 2021
(Audited)
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net income
|
$
189,998
|
|
$
266,381
|
|
$
274,663
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
121,128
|
|
112,476
|
|
153,091
|
|
Stock-based
compensation
|
9,392
|
|
3,614
|
|
5,312
|
|
Amortization of series
B, C and D related issuance costs, net
|
592
|
|
217
|
|
399
|
|
Deferred income taxes
and reserve, net
|
(622)
|
|
15,757
|
|
39,095
|
|
Gain on sale of
property, plant and equipment
|
(17,998)
|
|
(14,602)
|
|
(14,457)
|
|
Gain on sale of
investment, remeasurement of investment held under fair value
method
|
(22,453)
|
|
(3,925)
|
|
(15,153)
|
|
Equity in net
(earnings) losses of affiliated companies and partnerships,
net of dividend received (*)
|
11,811
|
|
(4,187)
|
|
7,724
|
|
Changes in operating
assets and liabilities, net of amounts acquired:
|
|
|
|
|
|
|
Increase in trade and
unbilled receivables and prepaid expenses
|
(120,229)
|
|
(375,093)
|
|
(430,296)
|
|
Increase in
inventories, net
|
(274,207)
|
|
(289,214)
|
|
(336,221)
|
|
Increase in trade
payables and other payables and accrued expenses
|
5,841
|
|
42,723
|
|
105,201
|
|
Severance, pension and
termination indemnities, net
|
(60,653)
|
|
2,039
|
|
9,834
|
|
Increase in contract
liabilities
|
202,044
|
|
400,802
|
|
617,740
|
|
Net cash provided by
operating activities
|
44,644
|
|
156,988
|
|
416,932
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
Purchase of property,
plant and equipment and other assets
|
(188,355)
|
|
(115,873)
|
|
(188,624)
|
|
Acquisition of
subsidiaries, net of cash consumed
|
(6,704)
|
|
(383,006)
|
|
(385,011)
|
|
Deferred payment on
acquisition
|
—
|
|
(60,560)
|
|
(60,560)
|
|
Investments in
affiliated companies and other companies, net
|
(2,782)
|
|
(342)
|
|
(1,828)
|
|
Proceeds from sale of
property, plant and equipment
|
23,091
|
|
19,476
|
|
25,745
|
|
Proceeds from sale of a
subsidiary and business operation
|
93,138
|
|
16,177
|
|
16,177
|
|
Investment in
short-term deposits, net
|
1,967
|
|
5,899
|
|
5,899
|
|
Proceeds from sale of
long-term deposits, net
|
132
|
|
192
|
|
481
|
|
Net cash used in
investing activities
|
(79,513)
|
|
(518,037)
|
|
(587,721)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
Issuance of
shares
|
22
|
|
2
|
|
20
|
|
Repayment of long-term
loans
|
(29,929)
|
|
(513,292)
|
|
(536,062)
|
|
Proceeds from long-term
bank loans
|
67,891
|
|
476,273
|
|
476,273
|
|
Issuance of Series B, C
and D Notes, net of issuance costs
|
—
|
|
575,249
|
|
575,249
|
|
Repayment of Series B,
C and D Notes
|
(65,374)
|
|
—
|
|
—
|
|
Dividends
paid
|
(64,644)
|
|
(79,175)
|
|
(79,175)
|
|
Change in short-term
bank credit and loans, net
|
116,091
|
|
(173,663)
|
|
(285,317)
|
|
Net cash provided by
financing activities
|
24,057
|
|
285,394
|
|
150,988
|
|
NET DECREASE IN CASH
AND CASH EQUIVALENTS
|
(10,812)
|
|
(75,655)
|
|
(19,801)
|
|
CASH AND CASH
EQUIVALENTS AT THE BEGINNING OF THE PERIOD
|
258,993
|
|
278,794
|
|
278,794
|
|
CASH AND CASH
EQUIVALENTS AT THE END OF THE PERIOD
|
$
248,181
|
|
$
203,139
|
|
$
258,993
|
|
|
|
|
|
|
|
(*)
Dividend received from affiliated companies and
partnerships
|
$
17,035
|
|
$
15,289
|
|
$
30,323
|
|
|
ELBIT SYSTEMS
LTD.
|
|
DISTRIBUTION OF
REVENUES
|
|
(In millions of US
Dollars)
|
|
Consolidated
revenues by areas of operation:
|
|
Nine
months
ended
September
30, 2022
|
|
%
|
|
Nine
months
ended
September
30, 2021
|
|
%
|
|
Three
months
ended
September
30, 2022
|
|
%
|
|
Three
months
ended
September
30, 2021
|
|
%
|
|
Airborne
systems
|
$ 1,440.7
|
|
36.0 %
|
|
$ 1,437.6
|
|
38.0 %
|
|
$
434.5
|
|
32.2 %
|
|
$
509.6
|
|
37.3 %
|
|
Land systems
|
912.7
|
|
22.8 %
|
|
901.6
|
|
23.8 %
|
|
343.8
|
|
25.5 %
|
|
317.3
|
|
23.3 %
|
|
C4ISR
systems
|
1,179.6
|
|
29.4 %
|
|
970.6
|
|
25.6 %
|
|
406.7
|
|
30.2 %
|
|
368.3
|
|
27.0 %
|
|
Electro-optic
systems
|
363.4
|
|
9.1 %
|
|
335.0
|
|
8.9 %
|
|
128.4
|
|
9.5 %
|
|
132.1
|
|
9.7 %
|
|
Other (mainly
non-defense
engineering and production
services)
|
108.7
|
|
2.7 %
|
|
139.4
|
|
3.7 %
|
|
35.5
|
|
2.6 %
|
|
36.3
|
|
2.7 %
|
|
Total
|
$ 4,005.1
|
|
100.0 %
|
|
$ 3,784.2
|
|
100.0 %
|
|
$ 1,348.9
|
|
100.0 %
|
|
$ 1,363.6
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
revenues by geographical regions:
|
|
Nine
months
ended
September
30, 2022
|
|
%
|
|
Nine
months
ended
September
30, 2021
|
|
%
|
|
Three
months
ended
September
30, 2022
|
|
%
|
|
Three
months
ended
September
30, 2021
|
|
%
|
|
Israel
|
$
800.5
|
|
20.0 %
|
|
$
797.2
|
|
21.1 %
|
|
$
253.3
|
|
18.8 %
|
|
$
244.3
|
|
17.9 %
|
|
North
America
|
1,090.1
|
|
27.2 %
|
|
1,207.3
|
|
31.9 %
|
|
386.3
|
|
28.6 %
|
|
413.6
|
|
30.3 %
|
|
Europe
|
859.1
|
|
21.4 %
|
|
630.6
|
|
16.7 %
|
|
347.1
|
|
25.7 %
|
|
237.0
|
|
17.4 %
|
|
Asia-Pacific
|
1,038.1
|
|
25.9 %
|
|
990.3
|
|
26.2 %
|
|
260.0
|
|
19.3 %
|
|
417.7
|
|
30.6 %
|
|
Latin
America
|
76.7
|
|
1.9 %
|
|
92.4
|
|
2.4 %
|
|
42.8
|
|
3.2 %
|
|
29.6
|
|
2.2 %
|
|
Other
countries
|
140.6
|
|
3.6 %
|
|
66.4
|
|
1.7 %
|
|
59.4
|
|
4.4 %
|
|
21.4
|
|
1.6 %
|
|
Total
|
$ 4,005.1
|
|
100.0 %
|
|
$ 3,784.2
|
|
100.0 %
|
|
$ 1,348.9
|
|
100.0 %
|
|
$ 1,363.6
|
|
100.0 %
|
View original
content:https://www.prnewswire.com/news-releases/elbit-systems-reports-third-quarter-2022-results-301688558.html
SOURCE Elbit Systems Ltd.