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Elbit Systems — Earnings Release 2004
Mar 15, 2005
6762_rns_2005-03-15_0b787221-8837-4e0a-9729-7225106a5a00.pdf
Earnings Release
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אפיפ
2005 במרס 15
לכבוד הבורסה לניירות ערך www.tase.co.il
לכבוד רשות ניירות ערך www.isa.gov.il
א.ג.נ.,
הנדון: אלביט מערכות בע"מ ("החברה") – הודעה לעתונות
מצ"ב הודעה לעתונות (Press Release) בדבר תוצאות פעילות החברה ברבעון הרביעי ובשנה שהסתיימו ב-31 בדצמבר 2004, שבכוונתנו לפרסם היום בארה"ב ולהגישה כדו"ח 6K לרשות ניירות ערך האמריקאית.
בכבוד רב,
אילן פכולדר מזכיר החברה
Elbit Systems Ltd.
Earnings Release
ELBIT SYSTEMS REPORTS FOURTH QUARTER AND YEAR-END RESULTS FOR 2004
Record Revenues, Net Earnings and Order Backlog
- 22.9% increase in Backlog of Orders to $2.15 billion
- 4.7% Increase in Annual Consolidated Revenues to $940 million
- 15.3% Increase in Annual Consolidated Net Earnings to $53 million
EPS $1.36 excluding non-cash effect of option plan
Haifa, Israel, March 15, 2005 – Elbit Systems Ltd. (the “Company”) (NASDAQ: ESLT), the international defense electronics company, today reported its consolidated results for the fourth quarter and year-ended December 31, 2004.
The Company’s backlog of orders as of December 31, 2004 reached $2.15 billion, as compared with $1.75 billion at the end of 2003. 66% of the backlog relates to orders outside of Israel. Approximately 74% of the Company’s backlog as of December 31, 2004 is scheduled to be performed during 2005 and 2006.
Consolidated revenues for the year ended December 31, 2004 increased by 4.7% to $940 million from $898 million in 2003.
Consolidated revenues for the fourth quarter of 2004 increased by 3.1% to $270.8 million from $262.8 million in the corresponding quarter in 2003.
Consolidated net earnings for the year ended December 31, 2004 increased by 15.3% to $53 million, as compared to $45.9 million in 2003. Diluted earnings per share in (“EPS”) 2004 were $1.29, as compared with $1.14 in 2003. Excluding the non-cash effect of the Company’s option plan, EPS in 2004 was $1.36, as compared to $1.24 in 2003.
Consolidated net earnings for the fourth quarter of 2004 were $14.1 million, compared to $12.5 million in the same period in 2003. Diluted EPS for the fourth quarter of 2004 were $0.34, as compared with $0.31 for the fourth quarter of 2003. Excluding the non-cash effect of the Company’s option plan, EPS in the fourth quarter of 2004 was $0.35 as compared to $0.34 in the fourth quarter of 2003.
During the fourth quarter of 2004, the Company adopted the fair value recognition provision of SFAS No. 123, effective January 1, 2004. The Company uses the Black-Scholes-Merton formula to estimate the fair value of stock options granted to employees. Compensation cost is recorded over the vesting period on a straight-line basis. Following the adoption of SFAS 123 the financial result will no longer be effected by the impact of changes in the Company's share price on employees stock based compensation.
Gross profit for the fourth quarter of 2004 was $72.6 million, as compared with gross profit of $54.1 million in the fourth quarter of 2003, and the gross profit margin in the fourth quarter of 2004 was 26.8%, as compared with 20.6% in the fourth quarter of 2003.
The Company produced an operating cash flow of $81.5 million in 2004.
The President and CEO of Elbit Systems, Joseph Ackerman, commented: "We are pleased to report our ninth consecutive year of increased revenues, net profit and backlog of orders. 2004 was a very important year for Elbit Systems in terms of key programs, with the win of the Digital Army Program in Israel and the selection for the Watchkeeper Program in the UK together with Thales. On the acquisitions side, we signed an agreement to acquire the controlling shareholdings of Tadiran Communications and Elisra. We believe that the investments made in the development of new technologies, and the strategic steps taken in 2004, lay a solid foundation for the continued development of Elbit Systems in accordance with our long-term business plan."
The Board of Directors has declared a dividend of $0.13 per share for the fourth quarter of 2004. The dividend will be paid on April 18, 2005, net of taxes and levies, at the rate of 20.58%. The record date of the dividend is April 5, 2005. The total dividend to be paid for 2004 is $2.17 per share.
Conference Call
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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, in the areas of aerospace, ground and naval systems, command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) and advanced electro-optic technologies. The Company focuses on the upgrading of existing military platforms and developing new technologies for defense applications. For further information, please visit the Company web site at www.elbitsystems.com
Company Contact:
Ilan Pacholder V.P. Finance & Capital Markets Corporate Secretary Elbit Systems Ltd Tel: +972-4 831-6632 Fax: +972-4 831-6659 E-mail: [email protected]
IR Contact:
Ehud Helft / Kenny Green Gelbart Kahana Tel: 1-866-704-6710 Fax: +972-3-607-4711 E-mail: [email protected] E-mail: [email protected]
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)
| | December 31 2004 Audited | December 31 2003 Audited | | --- | --- | --- | | Assets | | | | Current Assets: | | | | Cash and short term deposits | 34,847 | 76,846 | | Trade receivable and others | 267,151 | 251,644 | | Inventories, net of advances | 249,041 | 249,225 | | Total current assets | 551,039 | 577,715 | | Affiliated Companies & other Investments | 62,886 | 38,223 | | Long-term receivables & others | 85,100 | 78,565 | | Fixed Assets, net | 244,288 | 229,221 | | Other assets, net | 95,987 | 100,012 | | | 1,039,300 | 1,023,736 | | Liabilities and Shareholder’s Equity | | | | Current liabilities | 378,450 | 378,731 | | Long-term liabilities | 221,810 | 188,811 | | Minority Interest | 4,340 | 4,115 | | Shareholder’s equity | 434,700 | 452,079 | | | 1,039,300 | 1,023,736 |
ELBIT SYSTEMS LTD.
CONSOLIDATED STATEMENTS OF INCOME
(In thousand of US Dollars, except for per share amounts)
| For the Year Ended December 31 | Three Months Ended December 31 | |||
|---|---|---|---|---|
| 2004 | 2003 | 2004 | 2003 | |
| Audited | Unaudited | |||
| Revenues | 939,925 | 897,980 | 270,775 | 262,757 |
| Cost of revenues | 689,626 | 672,711 | 198,198 | 208,649 |
| Gross Profit | 250,299 | 225,269 | 72,577 | 54,108 |
| Research and development, net | 66,846 | 54,919 | 23,277 | 11,913 |
| Marketing and selling | 69,912 | 69,943 | 19,190 | 19,247 |
| General and administrative | 47,832 | 46,077 | 12,876 | 12,153 |
| Total operating expenses | 184,590 | 170,939 | 55,343 | 43,313 |
| Operating income | 65,709 | 54,330 | 17,234 | 10,795 |
| Financial expenses, net | (5,852) | (4,870) | (2,974) | (1,403) |
| Other income (expenses), net | 770 | 53 | 831 | 542 |
| Income before income taxes | 60,627 | 49,513 | 15,091 | 9,934 |
| Provisions for income taxes | 15,219 | 11,334 | 3,507 | 832 |
| 45,408 | 38,179 | 11,584 | 9,102 | |
| Company's share of partnerships and affiliated Companies income, net | 7,765 | 7,209 | 3,180 | 3,271 |
| Minority rights | (180) | 557 | (639) | 101 |
| Net income | 52,993 | 45,945 | 14,125 | 12,474 |
| Earnings per share | ||||
| Basic net earnings per share | 1.33 | 1.18 | 0.35 | 0.32 |
| Diluted net earnings per share | 1.29 | 1.14 | 0.34 | 0.31 |