Press Release Source: Elbit Systems Ltd http://biz.yahoo.com/prnews/070515/uktu011.html?.v=101&printer=1
Elbit Systems Reports First Quarter 2007 Results
Tuesday May 15, 3:40 am ET
Continued Record Revenues and Backlog of Orders
Revenues Increased by 20.7% Year Over Year to $403.6 Million
Net Profit Increased by 32.0% Year Over Year to $19.1 Million
HAIFA, Israel, May 15 /PRNewswire-FirstCall/ -- Elbit Systems Ltd. (the "Company") (NASDAQ: ESLT - News) the international defense company, today reported its consolidated results for the first quarter ended March 31, 2007.
The Company's backlog of orders as of March 31, 2007 totaled $3,796 million, as compared with $3,786 million as of December 31, 2006. The backlog amount reflects a reduction of approximately $70 million due to a cessation settlement of the Bulgarian helicopter program. Approximately 71% of the backlog relates to orders outside of Israel. Approximately 70% of the Company's backlog as of March 31, 2007 is scheduled to be performed during the upcoming three quarters of 2007 and during 2008.
Consolidated revenues for the first quarter of 2007 increased by 20.7% to $403.6 million, from $334.4 million in the first quarter of 2006.
Gross profit for the first quarter of 2007 increased by 18.3% to $103.5 million (25.7% of revenues), as compared with gross profit of $87.5 million (26.2% of revenues) in the first quarter of 2006. The gross profit margin in the first quarter of 2007 was affected mainly by the impact of the weakening U.S. Dollar against the New Israeli Shekel ("NIS"), which increased the effective labor costs in Israel.
Consolidated net income for the first quarter of 2007 increased by 32.0% to $19.1 million (4.7% of revenues), as compared with $14.5 million (4.3% of revenues) in the first quarter of 2006. Diluted earnings per share for the first quarter of 2007 were $0.45, as compared with $0.35 for the first quarter of 2006.
Operating Cash flow during the first quarter of 2007 reached a record $86.8 million.
The President and CEO of Elbit Systems, Joseph Ackerman, commented: "The continued revenue and profit growth trend we reported is especially impressive due to the organic growth we have recorded in the first quarter of 2007. This growth of approximately 20% is the result of our long-term strategy of expanding our operations to additional target markets and a continued investment in the R&D of advanced technologies and cutting edge products. This strategy enables us to win prestigious and important contracts and to further enhance our network of customers and business partners. It is a long-term strategy that will continue guiding us in the future."
Mr. Ackerman added "After the end of this report period we completed the acquisition of Tadiran Communications' shares and are in the process of realizing the new synergies within the Group's companies. We have also prepared an action plan for Elisra, however, it requires cooperation from the employees and their representatives."
The Board of Directors declared a dividend of $0.16 per share for the first quarter of 2007. The dividend's record date is May 29, 2007, and the dividend will be paid on June 11, 2007, net of taxes and levies, at the rate of 18.15%.
The Company will also be hosting a conference call today, Tuesday, May 15, 2007 at 10:00 am EDT. On the call, management will review and discuss its first quarter 2007 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 10 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: 1-888-407-2553
UK Dial-in Number: 0-800-917-9141
ISRAEL Dial-in Number: 03-918-0609
INTERNATIONAL Dial-in Number: +972-3-918-0609
10:00 am Eastern Time
7:00 am Pacific Time
3:00 pm UK Time
5:00 pm Israel Time
This call will be broadcast live on Elbit Systems' web-site at http://www.elbitsystems.com
. An online replay will be available from 24 hours after the call ends.
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: 1-877-456-0009 (US) 0-800-917-4613 (UK) or +972-3-925-5942 (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. The Elbit Systems Group, which includes the company and its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence, surveillance and reconnaissance ("C4ISR"), advanced electro-optic and space technologies, EW suites, airborne warning systems, ELINT systems, data links and military communications systems and equipment. The Group also focuses on the upgrading of existing military platforms and developing new technologies for defense and homeland security applications.
STATEMENTS IN THIS PRESS RELEASE WHICH ARE NOT HISTORICAL DATA ARE FORWARD-LOOKING STATEMENTS WHICH INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES OR OTHER FACTORS NOT UNDER THE COMPANY'S CONTROL, WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM THE RESULTS, PERFORMANCE OR OTHER EXPECTATIONS IMPLIED BY THESE FORWARD-LOOKING STATEMENTS. THESE FACTORS INCLUDE, BUT ARE NOT LIMITED TO, THOSE DETAILED IN THE COMPANY'S PERIODIC FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.
(FINANCIAL TABLES TO FOLLOW)
ELBIT SYSTEMS LTD.
CONSOLIDATED BALANCE SHEETS
(In thousand of US Dollars)
March 31 December 31
Cash and short term deposits 155,822 85,400
Trade receivable and others 427,289 465,428
Inventories, net of advances 395,015 371,962
Total current assets 978,126 922,790
Affiliated Companies & other Investments 231,941 235,723
Long-term receivables & others 191,443 189,236
Fixed Assets, net 294,090 294,628
Other assets, net 126,656 128,995
Liabilities and Shareholder's Equity
Current liabilities 827,435 810,885
Long-term liabilities 485,118 460,032
Minority Interest 8,380 6,871
Shareholder's equity 501.323 493,584
ELBIT SYSTEMS LTD.
CONSOLIDATED STATEMENTS OF INCOME
(In thousand of US Dollars, except for per share amounts)
Three Months Ended Year Ended
March 31 December 31
2007 2006 2006
Revenues 403,600 334,370 1,523,243
Cost of revenues 300,062 246,830 1,149,768
Gross Profit 103,538 87,540 373,475
Research and development, net 24,093 21,438 92,232
Marketing and selling 32,371 26,248 111,880
General and administrative 20,318 19,007 77,505
Total operating expenses 76,782 66,693 281,617
Operating income 26,756 20,847 91,858
Financial expenses, net (2,928) (4,241) (21,456)
Other income (expenses), net 113 908 1,814
Income before income taxes 23,941 17,514 72,216
Provisions for income taxes 6,733 4,604 20,694
17,208 12,910 51,522
Equity in net earnings (losses) of
affiliated companies and partnership
3,400 2,267 14,743
Minority rights (1,509) (709) 5,977
Net income 19,099 14,468 72,242
Earnings per share
Basic net earnings per share 0.45 0.35 1.75
Diluted net earnings per share 0.45 0.35 1.72