HAIFA, Israel,
March 11 /PRNewswire-FirstCall/ -- Elbit Systems Ltd. (the
"Company") (NASDAQ: ESLT, TASE: ESLT), the international defense electronics
company, today reported its consolidated results for the fourth quarter and
full year ended
December 31, 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080408/300441 )
Fourth quarter 2008 results
Consolidated revenues for the fourth quarter of 2008 increased by 18.1%
to $697.9 million, from $591.1 million in the fourth quarter of 2007.
Gross profit for the fourth quarter of 2008 increased by 30.2% to $203.4
million (29.1% of revenues), as compared with gross profit of $156.2 million
(26.4% of revenues) in the fourth quarter of 2007.
During the fourth quarter the Company had a $1 million IPR&D expense due
to the acquisition of Innovative Concepts, Inc., a wireless communications
technology firm in the U.S.
Operating income for the fourth quarter of 2008 increased 62.7% to $62.2
million (8.9% of revenues), as compared with operating income of $38.2
million (6.5% of revenues) in the fourth quarter of 2007.
During the fourth quarter, Mediguide Inc., a non-core subsidiary in which
the Company owned a 41.3% interest on a fully diluted basis, was purchased by
St. Jude Medical. The Company recorded net income of $74.4 million from this
sale in the fourth quarter of 2008. In addition, there was a one-time
impairment charge of $10.5 million relating to Sandel Avionics, Inc., a U.S.
company in which the Company invested $12.4 million in 2007. Thus the
aggregate contribution to the quarter's results from these one-time effects
was an additional $63.9 million to the net profit.
Financial expenses for the fourth quarter of 2008 were $3.8 million,
which included a write-off of Auction Rate Securities amounting to $9.6
million. The total amount of Auction Rate Securities remaining on the balance
sheet is $3 million.
Consolidated net income for the fourth quarter was $105.3 million (15.1%
of revenues) compared with net income of $31.9 million (5.4% of revenues) in
the fourth quarter of 2007.
Diluted earnings per share for the fourth quarter were $2.48, compared
with $0.75 for the fourth quarter of 2007.
Excluding the above-mentioned one-time effects, namely the IPR&D expense,
the proceeds from the sale of Mediguide and the impairment charge in Sandel,
consolidated net income for the fourth quarter of 2008 increased by 32.6%
over the fourth quarter of 2007 to $42.3 million (6.1% of revenues). This
translates to fourth quarter diluted earnings per share of $1.00.
Full year 2008 results
Consolidated revenues for the year ended December 31, 2008 increased by
33.1% to $2,638 million, as compared to $1,982 million in 2007.
Gross profit for the year ended December 31, 2008 grew 48.6% to $767.4
million (29.1% of revenues), as compared to gross profit of $516.4 million
(26.1% of revenues) in 2007.
Operating income for the year ended December 31, 2008 grew 131% to $249
million (9.4% of revenues), from $108 million (5.4% or revenues) in 2007.
It is noted that the 2007 annual results were negatively affected by
one-time charges related to the completion of the Company's acquisition of
the remaining shares of Tadiran Communications Ltd. in April 2007. The
Company recorded $27.1 million in expenses in relation to the acquisition.
Financial expenses for the year were $36.8 million, which included a
write-off of Auction Rate Securities totaling to $18.7 million, compared to
financial expenses of $19.3 million in 2007, which included a $10 million
write-off.
Consolidated net income for 2008 were $204.2 million (7.7% of revenues),
compared with $76.7 million (3.9% of revenues) in 2007.
Diluted earnings per share, for 2008 was $4.78, compared with $1.81 in
2007.
Excluding the one-time effects, namely the IPR&D expense, the proceeds
from the sale of Mediguide and the impairment charge in Sandel, consolidated
net earnings for the year ended December 31, 2008, were $141.3 million
compared with net earnings of $101.2 million achieved in 2007, excluding the
one-time charges related to the acquisition of Tadiran Communications.
Diluted earnings per share, excluding the one-time effects, for the year
ended December 31, 2008 were $3.34, as compared with $2.39 for 2007. The
growth in earnings and EPS year over year was approximately 40%
Operating cash flow produced by the Company in 2008 was $209 million, as
compared to $263 million in 2007.
The Company's backlog of orders as of December 31, 2008 totaled $5,030
million, as compared with $4,872 million as of September 30, 2008 and $4,624
million as of December 31, 2007. Approximately 72% of the backlog relates to
orders outside of Israel. Approximately 75% of the Company's backlog as of
December 31, 2008 is scheduled to be performed during 2009 and 2010.
The President and CEO of Elbit Systems, Joseph Ackerman, commented, "Our
final quarter in 2008, represents another quarter of continued progress, with
stronger profitability as well as growth across all areas of operation and
geographies. 2008 was a year in which we successfully integrated our
acquisitions from prior years and began reaping the fruits of these
activities. We have proven that our analysis of the direction of the global
defense industry during the past few years was well founded, and we invested
in areas which have become very relevant for our customers. Consequently, we
now hold a substantial competitive and technological position in all these
areas. We end 2008 in a very strong position as a global company and a
well-known leader by our partners and customers. Looking ahead, we have
primed our business for continued growth, well into the future. The sale of
our holdings in Mediguide, strengthened our Balance Sheet and underscored
that defense technology can be used in commercial applications."
Mr. Ackerman continued, "While the global economic situation is
challenging for all, we continue to ensure our expense footprint is
minimized, as well as closely manage our risks. At the same time, we are
examining ways to exploit the current environment in order to upgrade our
platform for continued future technological growth and the nurture of our
excellent human resources. This is to ensure we are well prepared for all
eventualities and that we are able to maintain and build our profitability,
momentum and technological leadership, in the coming quarters and years
ahead."
The Board of Directors declared a dividend of $0.80 per share for the
fourth quarter of 2008. The dividend's record date is March 24, 2009, and the
dividend will be paid on April 6, 2009, net of taxes and levies, at the rate
of 16.82%.
Conference Call
The Company will also be hosting a conference call today, Wednesday,
March 11 at 11am ET. 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. 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: 1-888-723-3164
UK Dial-in Number: 0-808-101-2717
ISRAEL Dial-in Number: 03-918-0650
INTERNATIONAL Dial-in Number: +972-3-918-0650
At: 11:00am Eastern Day-light Time; 8:00am Pacific Day-light Time;
3:00pm UK Time; 5:00pm 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 numbers:
1-888-269-0005 (US) or +972-03-925-5951 (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
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
air vehicle (UAV) systems, advanced electro-optics, electro-optic space
systems, EW suites, airborne warning systems, ELINT systems, data links and
military communications systems and radios. The Company also focuses on the
upgrading of existing military platforms and developing new technologies for
defense, homeland security and commercial aviation applications.
This press release contains forward-looking statements (within the
meaning of Section 27A of the Securities Act of 1933, as amended and Section
21E of the Securities Exchange Act of 1934, as amended) regarding Elbit
Systems Ltd. and/or its subsidiaries (collectively the Company), to the
extent such statements do not relate to historical or current fact. Forward
Looking Statements are based on management's expectations, estimates,
projections and assumptions. 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 and uncertainties, which are difficult to predict.
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; differences in anticipated and actual program
performance, including the ability to perform under long-term fixed-price
contracts; 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. The Company does not
undertake to update its forward-looking statements.
(FINANCIAL TABLES TO FOLLOW)
ELBIT SYSTEMS LTD.
CONSOLIDATED BALANCE SHEETS
(In thousand of US Dollars)
December 31 December 31
2008 2007
Audited Audited
Assets
Current Assets:
Cash and short term deposits 278,043 375,700
Trade receivable and others 681,000 562,828
Inventories, net of advances 647,561 480,603
Total current assets 1,606,604 1,419,131
Affiliated Companies & other Investments 62,300 66,161
Long-term receivables & others 286,874 314,568
Fixed Assets, net 384,086 352,702
Other assets, net 594,283 636,255
2,934,147 2,788,817
Liabilities and Shareholder's Equity
Current liabilities 1,316,598 1,242,012
Long-term liabilities 817,241 990,458
Minority Interest 76,475 20,085
Shareholder's equity 723,833 536,262
2,934,147 2,788,817
ELBIT SYSTEMS LTD.
CONSOLIDATED STATEMENTS OF INCOME
(In thousand of US Dollars, except for per share amounts)
For the Year Ended Three Months Ended
December 31 December 31
2008 2007 2008 2007
Audited Unaudited
Revenues 2,638,271 1,981,761 697,854 591,056
Cost of revenues 1,870,830 1,454,913 494,496 434,891
Restructuirng expenses - 10,482 - -
Gross Profit 767,441 516,366 203,358 156,165
Research and development (R&D) 63,875 39,401
expenses, net 184,984 126,995
Marketing and selling epenses 198,274 157,411 45,520 44,277
General and administrative 30,783 34,265
expenses 134,182 107,447
Acquired In Process R&D write-off 1,000 16,560 1,000 -
518,440 408,413 141,178 117,943
Operating income 249,001 107,953 62,180 38,222
Financial expenses, net (36,815) (19,329) (3,759) (10,632)
Other income, net 94,294 368 90,064 286
Income before taxes on income 306,480 88,992 148,485 27,876
Taxes on income (54,367) (13,810) (26,278) 7,501
252,113 75,182 122,207 35,377
Equity in net earnings of
affiliated companies and
partnership 14,435 14,565 6,364 4,544
Minority interest in earnings of
subsidiaries (62,372) (13,038) (23,299) (7,995)
Net income 204,176 76,709 105,272 31,926
Earnings per share
Basic net earnings per share 4.85 1.82 2.50 0.75
Diluted net earnings per share 4.78 1.81 2.48 0.75
Company Contact:
Joseph Gaspar, Executive VP & CFO
Dalia Rosen, Head of Corporate Communications
Elbit Systems Ltd.
Tel: +972-4-831-6663
Fax: +972-4-831-6944
E-mail: j.gaspar@elbitsystems.com
dalia.rosen@elbitsystems.com
IR Contact:
Ehud Helft / Kenny Green
GK Investor Relations
Tel: +1-646-201-9246
E-mail: info@gkir.com
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