Order backlog at $22.1
billion; Revenues of $1.7
billion;
Non-GAAP net income of $99 million;
GAAP net income of $79 million;
Non-GAAP net EPS of $2.21; GAAP net
EPS of $1.77
HAIFA,
Israel, Nov. 19, 2024 /PRNewswire/ -- Elbit
Systems Ltd. ("Elbit Systems" or the "Company") (NASDAQ: ESLT)
(TASE: ESLT), the international high technology defense
company, reported today its consolidated results for the third
quarter ended September 30, 2024.
In this release, the Company is providing US-GAAP results as
well as 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:
"Elbit Systems reports a strong quarter, with substantial growth
across key performance measures exceeding our internal goals, while
meeting our customers' needs in Israel and worldwide. The Company's order
backlog, which hit a record high of over $22
billion, provides stability and resilience for the Company
for years to come, as our investments in R&D create strong
foundations for long-term growth and development. Our highly
regarded solutions and products are experiencing high demand. This
consistent growth reflects the quality and excellence driven by our
dedicated and outstanding employees in Israel and in our subsidiaries around the
world."
Third quarter 2024 results:
Revenues in the third quarter of 2024 were
$1,717.5 million, as compared to
$1,501.6 million in the third quarter
of 2023.
Aerospace revenues increased by 7% in the third quarter of 2024,
as compared to the third quarter of 2023 mainly due to increased
UAS sales in Israel. C4I and Cyber
revenues increased by 13% in the third quarter of 2024 mainly due
to radio systems and command and control systems sales. ISTAR and
EW revenues increased by 13% mainly due to Electronic Warfare and
Electro-Optic systems sales. Land revenues increased by 24% due to
the increase in ammunition and munition sales in Israel. Elbit Systems of America revenues
increased by 17% due to the increase in night-vision systems and
medical instrumentation sales.
For distribution of revenues by segments and geographic regions
see the tables on page 12.
Non-GAAP(*) gross profit amounted to
$419.4 million (24.4% of revenues) in
the third quarter of 2024, as compared to $374.2 million (24.9% of revenues) in the third
quarter of 2023. GAAP gross profit in the third quarter of
2024 was $412.8 million (24.0% of
revenues), as compared to $367.2
million (24.5% of revenues) in the third quarter of
2023.
Research and development expenses, net were
$119.9 million (7.0% of revenues) in
the third quarter of 2024, as compared to $103.3 million (6.9% of revenues) in the third
quarter of 2023.
Marketing and selling expenses, net were $91.3 million (5.3% of revenues) in the third
quarter of 2024, as compared to $86.0
million (5.7% of revenues) in the third quarter of 2023.
General and administrative expenses, net were
$75.7 million (4.4% of revenues) in
the third quarter of 2024, as compared to $71.8 million (4.8% of revenues) in the third
quarter of 2023.
Non-GAAP(*) operating income was $140.7 million (8.2% of revenues) in the third
quarter of 2024, as compared to $120.0
million (8.0% of revenues) in the third quarter of 2023.
GAAP operating income in the third quarter of 2024 was
$125.8 million (7.3% of revenues), as
compared to $106.1 million (7.1% of
revenues) in the third quarter of 2023.
Financial expenses, net were $45.0 million in the third quarter of 2024,
as compared to $35.7 million in
the third quarter of 2023.
Taxes on income were $12.8 million in the third quarter of 2024,
as compared to $10.0 million in
the third quarter of 2023.
Non-GAAP(*) net income attributable to the
Company's shareholders in the third quarter of 2024 was
$98.8 million (5.8% of
revenues), as compared to $76.5 million (5.1% of revenues) in the
third quarter of 2023. GAAP net income attributable to
the Company's shareholders in the third quarter of 2024 was
$79.1 million (4.6% of
revenues), as compared to $60.7 million (4.0% of revenues) in the
third quarter of 2023.
Non-GAAP(*) diluted net earnings per share
attributable to the Company's shareholders were
$2.21 for the third quarter of 2024,
as compared to $1.71 for the third
quarter of 2023. GAAP diluted earnings per share attributable to
the Company's shareholders in the third quarter of 2024 were
$1.77, as compared to $1.36 in the third quarter of 2023.
The Company's order backlog as of September 30,
2024 totaled $22.1 billion.
Approximately 66% of the current backlog is attributable to orders
from outside Israel. Approximately 37% of the backlog is scheduled
to be performed during the remainder of 2024 and 2025.
Cash flow provided by operating activities in the
nine months ended September 30, 2024 was $82.5 million, as compared to cash flow used in
operating activities of $200.0 million in the nine months ended
September 30, 2023. The cash flow in the nine months ended
September 30, 2024 was affected
mainly by the increase in contract liabilities, which was offset by
the increase in inventories and trade receivables.
__________
* see page 4
Impact of the "Swords of Iron" War on the Company:
On October 7, 2023, Hamas
terrorists infiltrated Israel's southern border from the
Gaza Strip and conducted a series
of brutal attacks on civilian and military targets. Hamas also
launched extensive rocket attacks on the Israeli population and
industrial centers located along Israel's border with the
Gaza Strip and on many other parts
of the country. Israel has also been attacked by other terrorist
organizations on different fronts, including from Lebanon, which have prompted military
responses from Israel on these fronts. Following the attacks, the
State of Israel declared a state
of war, which is ongoing.
Since the commencement of hostilities, Elbit Systems has
experienced a material increased demand for its products and
solutions from the Israel Ministry of Defense (IMOD) compared to
the demand levels prior to the war. The Company has also increased
its support to the IMOD, mainly through deliveries of its systems
and the dedicated efforts of our employees. At the same time, the
Company continues its activities in the international markets with
the support of its local subsidiaries. Subject to further
developments, which are difficult to predict, the IMOD's increased
demand for the Company's products and solutions may continue and
could generate material additional orders for the Company.
While the vast majority of the facilities in Israel continue to operate uninterrupted, some
operations have experienced disruptions due to supply chain and
operational constraints, including among others due to limitations
on exports to Israel, increase of transportation costs and delays,
material and component shortages, attacks by anti-Israeli
organizations, the relocation of certain production lines,
evacuation of employees and employee recruitment for reserve duty.
The number of employees recruited was approximately 8% as of
September 30, 2024, and could
fluctuate depending on future developments.
Elbit Systems has taken a number of steps to protect the safety
and the security of its employees in Israel and abroad, to support its increased
production, to mitigate existing and potential supply chain
disruptions and to maintain business continuity, including the
relocation of production lines from facilities in evacuated areas
to alternative facilities; recruitment of additional employees;
increased monitoring of global supply chains to identify delays,
shortages and bottlenecks; rescheduling of deliveries to certain
customers as necessary; and an increase of inventories.
The extent of the effects of the war on the Company's
performance will depend on future developments of the war that are
difficult to predict at this time, including its duration and
scope. We continue to monitor the situation closely.
* Non-GAAP financial data:
The following non-GAAP financial data, including Adjusted gross
profit, Adjusted operating income, Adjusted net income, and
Adjusted diluted earnings per share, is presented to enable
investors to have additional information on our business
performance as well as a further basis for periodical comparisons
and trends relating to our financial results. We believe such data
provides useful information to investors and analysts by
facilitating more meaningful comparisons of our financial results
over time. The non-GAAP adjustments exclude amortization expenses
of intangible assets related to acquisitions that occurred mainly
in prior periods, capital gains related primarily to the sale of
investments, restructuring activities, uncompensated costs related
to "Swords of Iron" war, non-cash stock based compensation
expenses, revaluations of investments in affiliated companies,
non-operating foreign exchange gains or losses, one-time tax
expenses, and the effect of tax on each of these items. We present
these non-GAAP financial measures because management believes they
supplement and/or enhance management's, analysts' and investors'
overall understanding of the Company's underlying financial
performance and trends and facilitate comparisons among current,
past, and future periods.
Specifically, management uses Adjusted gross profit, Adjusted
operating income, and Adjusted net income attributable to the
Company's shareholders to measure the ongoing gross profit,
operating profit and net income performance of the Company because
the measure adjusts for more significant non-recurring items,
amortization expenses of intangible assets relating to prior
acquisitions, and non-cash expense which can fluctuate year to
year.
We believe Adjusted gross profit, Adjusted operating income, and
Adjusted net income attributable to the Company's shareholders are
useful to existing shareholders, potential shareholders and other
users of our financial information because they provide measures of
the Company's ongoing performance that enable these users to
perform trend analysis using comparable data.
Management uses Adjusted diluted earnings per share to evaluate
further adjusted net income attributable to the Company's
shareholders while considering changes in the number of diluted
shares over comparable periods.
We believe adjusted diluted earnings per share is useful to
existing shareholders, potential shareholders and other users of
our financial information because it also enables these users to
evaluate adjusted net income attributable to Company's shareholders
on a per-share basis.
The non-GAAP measures used by the Company are not based on any
comprehensive set of accounting rules or principles. We believe
that non-GAAP measures have limitations in that they do not reflect
all of the amounts associated with our results of operations, as
determined in accordance with GAAP, and that these measures should
only be used to evaluate our results of operations in conjunction
with the corresponding GAAP measures.
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. They
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 Supplemental Financial
Data:
(US Dollars in millions, except for per share amounts)
|
Nine
months
ended
September
30, 2024
|
|
Nine
months
ended
September
30, 2023
|
|
Three
months
ended
September
30, 2024
|
|
Three
months
ended
September
30, 2023
|
|
Year
ended
December
31, 2023
|
|
GAAP gross
profit
|
$
1,176.6
|
|
$
1,100.8
|
|
$ 412.8
|
|
$ 367.2
|
|
$
1,483.0
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets(*)
|
14.8
|
|
20.2
|
|
4.2
|
|
6.6
|
|
27.3
|
|
Restructuring of a
subsidiary's activities
|
—
|
|
—
|
|
—
|
|
—
|
|
17.5
|
|
Stock based
compensation
|
1.5
|
|
1.5
|
|
0.7
|
|
0.4
|
|
1.8
|
|
Uncompensated labor
costs related to "Swords of Iron" war
|
6.0
|
|
—
|
|
1.7
|
|
—
|
|
4.3
|
|
Non-GAAP gross
profit
|
$
1,198.9
|
|
$
1,122.5
|
|
$ 419.4
|
|
$ 374.2
|
|
$
1,533.9
|
|
Percent of
revenues
|
24.5 %
|
|
25.8 %
|
|
24.4 %
|
|
24.9 %
|
|
25.7 %
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$ 347.7
|
|
$ 301.5
|
|
$ 125.8
|
|
$ 106.1
|
|
$ 369.1
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets(*)
|
26.5
|
|
32.7
|
|
8.1
|
|
10.9
|
|
43.9
|
|
Restructuring of a
subsidiary's activities
|
—
|
|
—
|
|
—
|
|
—
|
|
17.5
|
|
Stock based
compensation
|
10.1
|
|
9.7
|
|
4.4
|
|
3.0
|
|
12.1
|
|
Uncompensated labor
costs related to "Swords of Iron" war
|
8.6
|
|
—
|
|
2.4
|
|
—
|
|
6.1
|
|
Non-GAAP operating
income
|
$ 392.9
|
|
$ 343.9
|
|
$ 140.7
|
|
$ 120.0
|
|
$ 448.7
|
|
Percent of
revenues
|
8.0 %
|
|
7.9 %
|
|
8.2 %
|
|
8.0 %
|
|
7.5 %
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to Elbit Systems' shareholders
|
$ 231.1
|
|
$ 185.1
|
|
$
79.1
|
|
$
60.7
|
|
$ 215.1
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets(*)
|
26.5
|
|
32.7
|
|
8.1
|
|
10.9
|
|
43.9
|
|
Restructuring of a
subsidiary's activities
|
—
|
|
—
|
|
—
|
|
—
|
|
17.5
|
|
Stock based
compensation
|
10.1
|
|
9.7
|
|
4.4
|
|
3.0
|
|
12.1
|
|
Uncompensated labor
costs related to "Swords of Iron" war
|
8.6
|
|
—
|
|
2.4
|
|
—
|
|
6.1
|
|
Capital gain
|
(2.0)
|
|
—
|
|
(2.0)
|
|
—
|
|
—
|
|
Revaluation of
investment measured under fair value option
|
7.4
|
|
—
|
|
—
|
|
—
|
|
3.0
|
|
Non-operating foreign
exchange (gains) losses
|
(4.2)
|
|
5.7
|
|
8.1
|
|
3.3
|
|
12.0
|
|
Tax effect and other
tax items, net
|
(5.3)
|
|
(4.2)
|
|
(1.3)
|
|
(1.4)
|
|
(10.9)
|
|
Non-GAAP net income
attributable to Elbit Systems' shareholders
|
$ 272.2
|
|
$ 229.0
|
|
$
98.8
|
|
$
76.5
|
|
$ 298.8
|
|
Percent of
revenues
|
5.6 %
|
|
5.3 %
|
|
5.8 %
|
|
5.1 %
|
|
5.0 %
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
EPS
|
$
5.18
|
|
$
4.15
|
|
$
1.77
|
|
$
1.36
|
|
$
4.82
|
|
Adjustments,
net
|
0.92
|
|
0.99
|
|
0.44
|
|
0.35
|
|
1.88
|
|
Non-GAAP diluted net
EPS
|
$
6.10
|
|
$
5.14
|
|
$
2.21
|
|
$
1.71
|
|
$
6.70
|
|
|
(*) While
amortization of acquired intangible assets is excluded from the
measures, the revenue of the acquired companies is reflected in the
measures
and the acquired assets contribute to revenue
generation.
|
Recent Events:
On September 20, 2024, the
Company announced that at its Annual General Meeting of
Shareholders held on September 19,
2024 at the Company's offices in Haifa, each of the proposals described in the
Proxy Statement to the shareholders dated August 15, 2024, was approved by the required
majority.
On October 28, 2024, the
Company announced that it was awarded an approximately $200 million contract by the Israeli Ministry of
Defense to supply high-power laser systems for the "Iron Beam" air
defense system.
On November 5, 2024, the
Company announced that it was awarded a follow-on contract of
approximately $127 million to supply
Iron Fist Active Protection Systems to General Dynamics Ordnance
and Tactical Systems for upgrades to the U.S. Army's Bradley M2A4E1
Infantry Fighting Vehicles. The contract will be performed over a
period of 34 months.
On November 18, 2024, the
Company announced that it was awarded contracts worth a total
amount of approximately $335 million,
to supply defense systems to a European country. The contracts
include the supply of PULS™ (Precise and Universal Launching
Systems) rocket launchers and rockets, as well as Hermes™ 900
Unmanned Aircraft Systems equipped with advanced payloads. The
contracts will be performed over a period of three years and six
months.
Dividend:
The Board of Directors declared a dividend of $0.50 per share. The dividend's record date is
December 23, 2024. The dividend will
be paid on January 6, 2025, after
deduction of withholding tax, at the rate of 16.8%.
Conference Call:
The Company will be hosting a conference call today, Wednesday,
November 19, 2024, at 10:00 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 10:00am Eastern Time;
7:00am Pacific Time; 5:00pm 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 is a leading global defense technology company,
delivering advanced solutions for a secure and safer world. Elbit
Systems develops, manufactures, integrates and sustains a range of
next-generation solutions across multiple domains.
Driven by its agile, collaborative culture, and leveraging
Israel's technology ecosystem, Elbit Systems enables customers to
address rapidly evolving battlefield challenges and overcome
threats.
Elbit Systems employs over 20,000 people in dozens of countries
across five continents. The Company reported as of September 30, 2024 approximately $1.7 billion in revenues and an order backlog of
approximately $22.1 billion.
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 geographical regions and by
segments
Company Contact:
Dr. Yaacov (Kobi) Kagan,
EVP & Chief Financial Officer
Tel: +972-77-2946663
kobi.kagan@elbitsystems.com
Daniella Finn, VP,
Investor Relations
Tel: +972-77-2948984
daniella.finn@elbitsystems.com
Dalia Bodinger, VP,
Communications & Brand
Tel: +972-77-2947602
dalia.bodinger@elbitsystems.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; including the
duration and scope of the current war in Israel, and the potential impact on our
operations; 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
Dollars)
|
|
|
As of
September 30,
2024
|
|
As of
December 31,
2023
|
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
$
119,199
|
|
$
197,429
|
|
Short-term bank
deposits
|
4,169
|
|
10,518
|
|
Trade and unbilled
receivables and contract assets, net
|
3,055,619
|
|
2,716,762
|
|
Other receivables and
prepaid expenses
|
363,002
|
|
285,352
|
|
Inventories,
net
|
2,822,733
|
|
2,298,019
|
|
Total current
assets
|
6,364,722
|
|
5,508,080
|
|
|
|
|
|
Investments in
affiliated companies and other companies
|
133,784
|
|
145,350
|
|
Long-term trade and
unbilled receivables and contract assets
|
458,898
|
|
364,719
|
|
Long-term bank deposits
and other receivables
|
41,435
|
|
87,648
|
|
Deferred income taxes,
net
|
23,765
|
|
23,423
|
|
Severance pay
fund
|
204,724
|
|
206,943
|
|
Total
|
862,606
|
|
828,083
|
|
|
|
|
|
Operating lease right
of use assets
|
527,943
|
|
425,884
|
|
Property, plant and
equipment, net
|
1,232,948
|
|
1,087,950
|
|
Goodwill and other
intangible assets, net
|
1,858,870
|
|
1,889,585
|
|
Total assets
|
$
10,847,089
|
|
$
9,739,582
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Short-term bank credit
and loans
|
$
689,292
|
|
$
576,594
|
|
Current maturities of
long-term loans and Series B, C and D Notes
|
74,547
|
|
75,286
|
|
Operating lease
liabilities
|
78,586
|
|
67,390
|
|
Trade
payables
|
1,310,636
|
|
1,254,126
|
|
Other payables and
accrued expenses
|
1,264,973
|
|
1,194,347
|
|
Contract
liabilities
|
2,129,874
|
|
1,656,103
|
|
Total current
liabilities
|
5,547,908
|
|
4,823,846
|
|
|
|
|
|
Long-term loans, net of
current maturities
|
29,574
|
|
41,227
|
|
Series B, C and D
Notes, net of current maturities
|
274,902
|
|
342,847
|
|
Employee benefit
liabilities
|
499,656
|
|
510,416
|
|
Deferred income taxes
and tax liabilities, net
|
62,464
|
|
55,240
|
|
Contract
liabilities
|
618,546
|
|
354,319
|
|
Operating lease
liabilities
|
451,930
|
|
363,100
|
|
Other long-term
liabilities
|
288,863
|
|
298,296
|
|
Total long-term
liabilities
|
2,225,935
|
|
1,965,445
|
|
|
|
|
|
Elbit Systems Ltd.'s
equity
|
3,069,810
|
|
2,947,503
|
|
Non-controlling
interests
|
3,436
|
|
2,788
|
|
Total equity
|
3,073,246
|
|
2,950,291
|
|
Total liabilities and
equity
|
$
10,847,089
|
|
$
9,739,582
|
|
ELBIT SYSTEMS
LTD.
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
(In thousands of US
Dollars, except for share and per share amounts)
|
|
|
Nine months
ended
September 30,
2024
|
|
Nine months
ended
September 30,
2023
|
|
Three months
ended
September 30,
2024
|
|
Three months
ended
September 30,
2023
|
|
Year ended
December 31,
2023
|
|
Revenues
|
$ 4,897,655
|
|
$ 4,348,950
|
|
$ 1,717,547
|
|
$ 1,501,567
|
|
$ 5,974,744
|
|
Cost of
revenues
|
3,721,036
|
|
3,248,104
|
|
1,304,763
|
|
1,134,393
|
|
4,491,790
|
|
Gross profit
|
1,176,619
|
|
1,100,846
|
|
412,784
|
|
367,174
|
|
1,482,954
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Research and
development, net
|
335,210
|
|
307,065
|
|
119,890
|
|
103,315
|
|
424,420
|
|
Marketing and selling,
net
|
268,144
|
|
267,845
|
|
91,349
|
|
85,967
|
|
359,141
|
|
General and
administrative, net
|
225,608
|
|
224,406
|
|
75,736
|
|
71,842
|
|
330,285
|
|
Total operating
expenses
|
828,962
|
|
799,316
|
|
286,975
|
|
261,124
|
|
1,113,846
|
|
Operating
income
|
347,657
|
|
301,530
|
|
125,809
|
|
106,050
|
|
369,108
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
(105,219)
|
|
(91,991)
|
|
(44,953)
|
|
(35,722)
|
|
(137,827)
|
|
Other income
(expenses), net
|
10,269
|
|
(5,375)
|
|
7,002
|
|
(1,851)
|
|
(4,787)
|
|
Income before income
taxes
|
252,707
|
|
204,164
|
|
87,858
|
|
68,477
|
|
226,494
|
|
Taxes on
income
|
(35,689)
|
|
(27,957)
|
|
(12,830)
|
|
(10,014)
|
|
(22,913)
|
|
Income after taxes on
income
|
217,018
|
|
176,207
|
|
75,028
|
|
58,463
|
|
203,581
|
|
|
|
|
|
|
|
|
|
|
|
Equity in net earnings
of affiliated companies
|
14,625
|
|
9,247
|
|
4,284
|
|
2,395
|
|
12,275
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
231,643
|
|
$
185,454
|
|
$
79,312
|
|
$
60,858
|
|
$
215,856
|
|
|
|
|
|
|
|
|
|
|
|
Less: net income
attributable to non-controlling interests
|
(498)
|
|
(331)
|
|
(206)
|
|
(155)
|
|
(725)
|
|
Net income
attributable to Elbit Systems Ltd.'s shareholders
|
$
231,145
|
|
$
185,123
|
|
$
79,106
|
|
$
60,703
|
|
$
215,131
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Elbit Systems Ltd.'s shareholders:
|
|
|
|
|
|
|
|
|
|
|
Basic net earnings per
share
|
$
5.20
|
|
$
4.17
|
|
$
1.78
|
|
$
1.37
|
|
$
4.85
|
|
Diluted net earnings
per share
|
$
5.18
|
|
$
4.15
|
|
$
1.77
|
|
$
1.36
|
|
$
4.82
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares used in computation of:
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share (in thousands)
|
44,472
|
|
44,351
|
|
44,478
|
|
44,360
|
|
44,375
|
|
Diluted earnings per
share (in thousands)
|
44,633
|
|
44,579
|
|
44,618
|
|
44,642
|
|
44,592
|
|
ELBIT SYSTEMS
LTD.
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOW
|
|
(In thousands of US
Dollars)
|
|
|
Nine months
ended
September 30,
2024
|
|
Nine months
ended
September 30,
2023
|
|
Year ended
December 31,
2023
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net income
|
$
231,643
|
|
$
185,454
|
|
$
215,856
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
117,145
|
|
123,477
|
|
164,799
|
|
Stock-based
compensation
|
10,060
|
|
9,732
|
|
12,141
|
|
Amortization of series
B, C and D related issuance costs, net
|
358
|
|
445
|
|
579
|
|
Deferred income taxes
and reserve, net
|
12,124
|
|
4,025
|
|
(13,165)
|
|
Gain on sale of
property, plant and equipment
|
(419)
|
|
(241)
|
|
(651)
|
|
Loss on sale of
investment, remeasurement of investments held under fair value
method
|
6,079
|
|
6
|
|
4,990
|
|
Equity in net
(earnings) losses of affiliated companies, net of dividend received
(*)
|
(6,085)
|
|
5,060
|
|
10,046
|
|
Changes in operating
assets and liabilities, net of amounts acquired:
|
|
|
|
|
|
|
Increase in trade and
unbilled receivables and prepaid expenses
|
(466,738)
|
|
(65,444)
|
|
(96,594)
|
|
Increase in
inventories, net
|
(529,345)
|
|
(345,201)
|
|
(351,594)
|
|
Increase (decrease) in
trade payables and other payables and accrued expenses
|
(1,726)
|
|
30,999
|
|
175,446
|
|
Severance, pension and
termination indemnities, net
|
(28,734)
|
|
(20,892)
|
|
(24,331)
|
|
Increase (decrease) in
contract liabilities
|
738,177
|
|
(127,451)
|
|
16,187
|
|
Net cash (used in)
provided by operating activities
|
82,539
|
|
(200,031)
|
|
113,709
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
Purchase of property,
plant and equipment and other assets(***)
|
(167,002)
|
|
(157,787)
|
|
(187,037)
|
|
Acquisition of
subsidiaries, net of cash assumed
|
—
|
|
(10,380)
|
|
(10,380)
|
|
Investments in
affiliated companies and other companies, net
|
(3,151)
|
|
(2,939)
|
|
(5,416)
|
|
Proceeds from sale of
property, plant and equipment
|
5,013
|
|
600
|
|
1,466
|
|
Proceeds from sale of a
subsidiary and an investments
|
24,776
|
|
—
|
|
151
|
|
Investment in
short-term deposits, net
|
7,068
|
|
(25,576)
|
|
(9,467)
|
|
Investment in long-term
deposits, net
|
(335)
|
|
83
|
|
83
|
|
Net cash used in
investing activities
|
(133,631)
|
|
(195,999)
|
|
(210,600)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
Issuance of
shares
|
7
|
|
15
|
|
30
|
|
Issuance of commercial
paper
|
36,380
|
|
313,620
|
|
313,620
|
|
Repayment of long-term
loans
|
(11,262)
|
|
(246,173)
|
|
(246,231)
|
|
Proceeds from long-term
bank loans
|
—
|
|
20,000
|
|
20,000
|
|
Repayment of Series B,
C and D Notes
|
(61,862)
|
|
(62,434)
|
|
(62,434)
|
|
Dividends paid
(**)
|
(66,717)
|
|
(67,033)
|
|
(89,248)
|
|
Change in short-term
bank credit and loans, net
|
76,316
|
|
347,215
|
|
147,475
|
|
Net cash provided by
(used in) financing activities
|
(27,138)
|
|
305,210
|
|
83,212
|
|
Net decrease in cash
and cash equivalents
|
(78,230)
|
|
(90,820)
|
|
(13,679)
|
|
CASH AND CASH
EQUIVALENTS AT THE BEGINNING OF THE PERIOD
|
$
197,429
|
|
$
211,108
|
|
$
211,108
|
|
CASH AND CASH
EQUIVALENTS AT THE END OF THE PERIOD
|
$
119,199
|
|
$
120,288
|
|
$
197,429
|
|
(*) Dividend received
from affiliated companies and partnerships
|
$
8,540
|
|
$
14,307
|
|
$
22,321
|
|
(**) Dividends paid during 2023
included approximately $0.5 million dividends paid by a subsidiary
to non-controlling interests.
|
|
(***) Purchase of property, plant and
equipment included investments in new manufacturing facilities
of approximately $87 million
for the nine months ended September 30, 2024, approximately $50
million for the nine months ended September 30, 2023, and
approximately $83 million for the year ended December 31,
2023.
|
|
ELBIT SYSTEMS
LTD.:
|
|
DISTRIBUTION OF
REVENUES
|
|
(In millions of US
Dollars)
|
|
Consolidated
revenues by geographical regions:
|
|
|
Nine
months
ended
September
30, 2024
|
|
%
|
|
Nine
months
ended
September
30, 2023
|
|
%
|
|
Three
months
ended September
30, 2024
|
|
%
|
|
Three
months
ended September 30,
2023
|
|
%
|
|
Year
ended
December 31,
2023
|
|
%
|
|
Israel
|
$ 1,395.1
|
|
28.5
|
|
$
730.0
|
|
16.8
|
|
$
499.0
|
|
29.1
|
|
$
230.2
|
|
15.3
|
|
$ 1,167.2
|
|
19.5
|
|
North
America
|
1,082.4
|
|
22.1
|
|
1,049.6
|
|
24.1
|
|
386.8
|
|
22.5
|
|
359.7
|
|
24.0
|
|
1,417.7
|
|
23.7
|
|
Europe
|
1,287.2
|
|
26.3
|
|
1,329.7
|
|
30.6
|
|
429.9
|
|
25.0
|
|
496.9
|
|
33.1
|
|
1,776.4
|
|
29.7
|
|
Asia-Pacific
|
858.4
|
|
17.5
|
|
968.1
|
|
22.3
|
|
315.6
|
|
18.4
|
|
314.2
|
|
20.9
|
|
1,263.8
|
|
21.2
|
|
Latin
America
|
111.8
|
|
2.3
|
|
85.1
|
|
2.0
|
|
37.9
|
|
2.2
|
|
26.9
|
|
1.8
|
|
120.7
|
|
2.0
|
|
Other countries
|
162.8
|
|
3.3
|
|
186.5
|
|
4.2
|
|
48.3
|
|
2.8
|
|
73.7
|
|
4.9
|
|
228.9
|
|
3.9
|
|
Total
revenue
|
$ 4,897.7
|
|
100.0
|
|
$ 4,349.0
|
|
100.0
|
|
$ 1,717.5
|
|
100.0
|
|
$ 1,501.6
|
|
100.0
|
|
$ 5,974.7
|
|
100.0
|
Consolidated revenues by
segments:
|
Nine months
ended
September 30,
2024
|
|
Nine months
ended
September 30,
2023
|
|
Three months
ended
September 30,
2024
|
|
Three months
ended
September 30,
2023
|
|
Year ended
December 31,
2023
|
|
Aerospace
|
|
|
|
|
|
|
|
|
|
|
External
customers
|
$
1,216.2
|
|
$
1,188.1
|
|
$
434.0
|
|
$
404.1
|
|
$
1,613.2
|
|
Intersegment
revenue
|
179.1
|
|
181.8
|
|
58.2
|
|
58.0
|
|
260.1
|
|
Total
|
1,395.3
|
|
1,369.9
|
|
492.2
|
|
462.1
|
|
1,873.3
|
|
C4I and
Cyber
|
|
|
|
|
|
|
|
|
|
|
External
customers
|
558.4
|
|
490.7
|
|
198.7
|
|
171.7
|
|
668.4
|
|
Intersegment
revenue
|
39.7
|
|
41.8
|
|
14.7
|
|
16.4
|
|
52.7
|
|
Total
|
598.1
|
|
532.5
|
|
213.4
|
|
188.1
|
|
721.1
|
|
ISTAR and EW
|
|
|
|
|
|
|
|
|
|
|
External
customers
|
832.8
|
|
735.6
|
|
271.2
|
|
242.9
|
|
996.9
|
|
Intersegment
revenue
|
156.0
|
|
138.9
|
|
52.7
|
|
44.2
|
|
182.5
|
|
Total
|
988.8
|
|
874.5
|
|
323.9
|
|
287.1
|
|
1,179.4
|
|
Land
|
|
|
|
|
|
|
|
|
|
|
External
customers
|
1,144.0
|
|
884.7
|
|
402.6
|
|
330.0
|
|
1,241.0
|
|
Intersegment
revenue
|
60.6
|
|
52.1
|
|
19.2
|
|
11.3
|
|
65.2
|
|
Total
|
1,204.6
|
|
936.8
|
|
421.8
|
|
341.3
|
|
1,306.2
|
|
ESA
|
|
|
|
|
|
|
|
|
|
|
External
customers
|
1,146.3
|
|
1,049.9
|
|
411.0
|
|
352.9
|
|
1,455.2
|
|
Intersegment
revenue
|
7.3
|
|
5.6
|
|
5.6
|
|
1.9
|
|
9.7
|
|
Total
|
1,153.6
|
|
1,055.5
|
|
416.6
|
|
354.8
|
|
1,464.9
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
Total revenues
(external customers and intersegment) for reportable
segments
|
5,340.4
|
|
4,769.2
|
|
1,867.9
|
|
1,633.4
|
|
6,544.9
|
|
Less - intersegment
revenue
|
(442.7)
|
|
(420.2)
|
|
(150.4)
|
|
(131.8)
|
|
(570.2)
|
|
Total
revenues
|
$
4,897.7
|
|
$
4,349.0
|
|
$
1,717.5
|
|
$
1,501.6
|
|
$
5,974.7
|
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SOURCE Elbit Systems Ltd.