Elbit Systems Reports Fourth Quarter and Full Year 2012 Results
HAIFA, Israel, March 13, 2013 /PRNewswire/ --
Improvement in key business parameters:
Revenues at $2.9 billion; Backlog of orders at $5.7 billion;
Net income of $168 million; EPS of $3.97
Elbit Systems Ltd. (the "Company") (NASDAQ and TASE: ESLT), the international defense electronics company, reported today its consolidated results for the fourth quarter and full year ended December 31, 2012.
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 understanding of the Company's business results and trends. Unless otherwise stated, all financial data presented is GAAP financial data.
Management Comment:
Joseph Ackerman, President and CEO of Elbit Systems, commented: "I am pleased by our 2012 results, in which we reached a record in full year revenues and backlog, and I am encouraged by our improvement in margins compared with last year. We are leveraging our global intercompany synergies, which enable us to reduce operating expenses, to be more efficient and to continue to improve profitability. We witnessed growth in the Latin-America and Asia-Pacific regions, two markets characterized with growing defense budgets, and this trend, as well as the global markets' recognition of our innovative solutions, have enabled us to resume our growth in 2012."
Ackermancontinued: "2012 was my last full year with Elbit Systems, and I believe the Company is very well positioned strategically, operationally and financially to face the challenges ahead. At the end of March, after almost two decades at the helm, I will be passing the baton to Bezhalel (Butzi) Machlis, who will succeed me as President and CEO. Butzi is a highly regarded executive, and I believe the Company has a solid foundation with a very capable management team, which will enable it to move ahead in 2013 and continue on the path that Elbit Systems has forged in recent years."
Michael Federmann, Chairman of Elbit Systems' Board of Directors,added: "On behalf of the Board of Directors and the entire Company, I would like to express our deep appreciation for Yossi Ackerman's remarkable contribution over his 31 years in the Company. In his upcoming role as Vice Chairman of the Board, we look forward to continuing to benefit from his experience and wisdom in the years to come. We welcome as his successor Butzi Machlis, a talented manager with a well founded international reputation, and I am confident that he will continue Yossi Ackerman's legacy and lead the Company to new achievements."
Fourth quarter 2012 results:
Revenues in the fourth quarter of 2012 were $843.9 million, compared to $841.9 million in the fourth quarter of 2011.
Gross profit amounted to $239.0 million (28.3% of revenues) in the fourth quarter of 2012, as compared to $141.7 million (16.8% of revenues) in the fourth quarter of 2011. The gross profit in the fourth quarter of 2011 included an expense of $72.8 million, as a result of the cessation of a program with a foreign customer. The non-GAAP gross profit in the fourth quarter of 2012 was $247.6 million (29.3% of revenues), compared to $222.3 million (26.4% of revenues) in the fourth quarter of 2011.
Research and development expenses, net were $68.3 million (8.1% of revenues) in the fourth quarter of 2012, as compared to $76.0 million (9.0% of revenues) in the fourth quarter of 2011.
Marketing and selling expenses were $61.6 million (7.3% of revenues) in the fourth quarter of 2012, as compared to $65.1 million (7.7% of revenues) in the fourth quarter of 2011.
General and administrative expenses were $38.9 million (4.6% of revenues) in the fourth quarter of 2012, as compared to $34.8 million (4.1% of revenues) in the fourth quarter of 2011.
Operating income was $70.2 million (8.3% of revenues) in the fourth quarter of 2012, as compared to an operating loss of $34.1 million in the fourth quarter of 2011. The operating loss in the fourth quarter of 2011 included the $72.8 million expense mentioned above. The non-GAAP operating income in the fourth quarter of 2012 was $83.3 million (9.9% of revenues), as compared to $53.2 million (6.3% of revenues) in the fourth quarter of 2011.
Financial expenses, net were $10.6 million in the fourth quarter of 2012, as compared to financial income, net, of $9.6 million in the fourth quarter of 2011. Financial income, net, in the fourth quarter of 2011 was high due to income from currency hedging activities and interest on the settlement of the ImageSat debt transaction.
Taxes on income were $2.9 million in the fourth quarter of 2012, as compared to a tax benefit of $6.9 million in the fourth quarter of 2011. Taxes on income in the fourth quarter of 2011 were impacted by a net loss before tax of $24.0 in the fourth quarter of 2011.
Equity in net earnings of affiliated companies and partnerships was $2.3 million (0.3% of revenues) in the fourth quarter of 2012, as compared to $4.8 million (0.6 % of revenues) in the fourth quarter of 2011.
Net income attributable to non-controlling interests was $1.8 million in the fourth quarter of 2012, as compared to $0.4 million in the fourth quarter of 2011.
Loss from discontinued operations, net was $0.1 million. The amount reflects a net loss related to a held-for-sale business acquired during 2010, as part of the acquisition of the Mikal group of companies.
Net income attributable to the Company's shareholders in the fourth quarter of 2012 was $57.2 million (6.8% of revenues), as compared with a net loss of $13.0 million (1.5% of revenues) in the fourth quarter of 2011. The non-GAAP net income in the fourth quarter of 2012 was $67.9 million (8.0% of revenues), as compared to $60.6 million (7.2% of revenues) in the fourth quarter of 2011.
Diluted net earnings per share attributable to the Company'sshareholders were $1.36 for the fourth quarter of 2012, as compared with a diluted net loss per share of $0.31 for the fourth quarter of 2011. The non-GAAP diluted earnings per share in the fourth quarter of 2012 were $1.62, as compared to $1.42 in the fourth quarter of 2011.
Full year 2012 results:
Revenues for the year ended December 31, 2012 were $2,888.6 million, as compared to $2,817.5 million in the year ended December 31, 2011. The leading contributors to the Company's revenues were the airborne systems and C4ISR systems areas of operations. The major increase was in the airborne systems area of operations, primarily due to the increased revenues from North American customers of avionic system, aerostructures and maintenance services. The decrease in the land systems area of operations was mainly due to a decline in revenues of fire control and life support systems in Israel and North America.
In our reporting of distributions of revenues by geographic regions we have updated the definition of our geographic regions as shown in the attached table of Distribution of Revenues. This update was made to enhance the visibility of distribution of revenues by geographic regions in light of the growing importance of our business in the Latin American and Asia-Pacific regions.
Cost of revenues for the year ended December 31, 2012 was $2,072.7 million, as compared to $2,085.5 million in the year ended December 31, 2011. Cost of revenues in 2011 included an expense of $72.8 million related to the cessation of a program with a foreign customer as mentioned above.
Gross profit for the year ended December 31, 2012 was $815.9 million (28.2% of revenues), as compared with gross profit of $732.0 million (26.0% of revenues) in the year ended December 31, 2011. The gross profit margin in 2012 increased mainly as a result of the mix of programs sold in the year. The gross profit in 2011 was reduced by the expense of $72.8 million related to the cessation of the program mentioned above. The non-GAAP gross profit in 2012 was $840.1 million (29.1% of revenues), as compared to $835.7 million (29.7% of revenues) in 2011.
Research and development expenses, net for the year ended December 31, 2012 were $233.4 million (8.1% of revenues), as compared to $241.1 million (8.6% of revenues) in the year ended December 31, 2011.
Marketing and selling expenses for the year ended December 31, 2012 were $241.9 million (8.4% of revenues), as compared to $235.9 million (8.4% of revenues) in the year ended December 31, 2011.
General and administrative expenses for the year ended December 31, 2012 were $137.5 million (4.8% of revenues), as compared to $139.3 million (4.9% of revenues) in the year ended December 31, 2011.
Operating income for the year ended December 31, 2012 was $203.1 million (7.0% of revenues), as compared with operating income of $115.7 million (4.1% of revenues), in the year ended December 31, 2011. In 2011, excluding the above mentioned expenses of $72.8 million, operating income was $188.5 million (6.7% of revenues). The non-GAAP operating income in 2012 was $252.3 million (8.7% of revenues) compared with $245.8 million (8.7% of revenues) in 2011.
Financial expenses, net for the year ended December 31, 2012 were $26.1 million, as compared to $13.6 million in the year ended December 31, 2011. The financial expenses in 2011 were lower primarily as a result of income from currency hedging activities, a gain from exchange rate differences and the settlement of the ImageSat debt transaction.
Taxes on income for the year ended December 31, 2012 were $17.1 million (effective tax rate of 9.7%), as compared to taxes on income of $13.6 million (effective tax rate of 13.1%) in the year ended December 31, 2011. The effective tax rate is affected by the mix of the tax rates in the various jurisdictions in which the Company's entities generate taxable income, and the settlement of tax audits including adjustments for prior years.
Equity in net earnings of affiliated companies and partnerships for the year ended December 31, 2012 was $11.2 million (0.4% of revenues), as compared to $15.4 million (0.5% of revenues) in the year ended December 31, 2011.
Loss from discontinued operations, net for the year ended December 31, 2012 amounted to $0.6 million as compared to a loss of $16.0 million in 2011. The amount in 2011 reflects a net loss related to an impairment of a held-for-sale investment acquired during 2010, as part of the acquisition of the Mikal group of companies. The net loss from discontinued operations in 2011 (after deducting the minority interest and tax) amounted to $9.5 million.
Net income attributable to non-controlling interests for the year ended December 31, 2012 was $2.6 million, as compared to a net loss of $0.5 million in the year ended December 31, 2011. Excluding the loss related to impairment of an asset held-for-sale, the net income attributable to non-controlling interests in the year ended December 31, 2011 was $6.0 million (0.2% of revenues).
Net income attributable to the Company's shareholders for the year ended December 31, 2012 was $167.9 million (5.8% of revenues), as compared with $90.3 million (3.2% of revenues) in the year ended December 31, 2011. The net income in 2011 included the net effect of the cessation of a project with a foreign customer mentioned above, which amounted to $62 million. The non-GAAP net income in the year ended December 31, 2012 was $206.3 million (7.1% of revenues), as compared to $206.6 million (7.3% of revenues) in the year ended December 31, 2011.
Diluted net earnings per shareattributable to the Company'sshareholders for the year ended December 31, 2012 were $3.97, as compared with $2.09 for the year ended December 31, 2011. The non-GAAP diluted net earnings per share in the year ended December 31, 2012 were $4.88, as compared to $4.79 in the year ended December 31, 2011.
The Company's backlog of orders for the year ended December 31, 2012 totaled $5,683 million, as compared with $5,528 million as of December 31, 2011. Approximately 67% of the current backlog is attributable to orders from outside Israel. Approximately 68% of the current backlog is scheduled to be performed during 2013 and 2014.
Operating cash flow for the year ended December 31, 2012 was $198.4 million, as compared to $190.9 million in the year ended December 31, 2011.
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, significant effects of retroactive tax legislation and changes in accounting guidance and other items 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 the following adjustments: (1) added back amortization of purchased intangible assets, (2) added back significant reorganization, restructuring and other related expenses, (3) added back impairment of investments, including impairment of auction rate securities, (4) subtracted gain from changes in holdings, including revaluation of the previously held shares at the acquisition date when a business combination is achieved in stages (step-up), (5) added back impairment loss from discontinued operations, (6) excluded the impact of the cessation of a program with a foreign customer and (7) excluded the income tax effects of the foregoing.
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)
Three Months
ended Year ended
December 31 December 31
2012 2011 2012 2011 2010
GAAP gross profit 239.0 141.7 815.9 732.0 797.9
Adjustments:
Amortization of purchased
intangible assets 8.6 7.8 24.2 30.9 25.0
Cessation of program(1) - 72.8 - 72.8 -
Reorganization,
restructuring and other
related expenses(2) - - - - 12.8
Non-GAAP gross profit 247.6 222.3 840.1 835.7 835.7
Percent of revenues 29.3% 26.4% 29.1% 29.7% 31.3%
GAAP operating income (loss) 70.2 (34.1) 203.1 115.7 207.4
Adjustments:
Amortization of purchased
intangible assets 13.1 14.5 49.2 57.3 47.7
Cessation of program(1) - 72.8 - 72.8 -
Reorganization,
restructuring and other
related expenses(2) - - - - 16.4
Impairment of investments(3) - - - - 1.3
Gain from changes in
holdings(4) - - - - (4.8)
Non-GAAP operating income 83.3 53.2 252.3 245.8 268.0
Percent of revenues 9.9% 6.3% 8.7% 8.7% 10.0%
GAAP net income (loss)
attributable to Elbit
Systems' shareholders 57.2 (13.0) 167.9 90.3 183.5
Adjustments:
Amortization of purchased
intangible assets 13.1 14.5 49.2 57.3 47.7
Cessation of program(1) - 72.8 - 72.8 -
Reorganization,
restructuring and other
related expenses (2) - - - - 16.4
Impairment of investments(3) - - - 0.5 1.3
Gain from changes in
holdings(4) - - (2.3) - (17.6)
Adjustment of loss (gain)
from discontinued
operations, net (5) 0.1 0.1 0.4 9.5 (0.5)
Related tax benefits (2.5) (13.8) (8.9) (23.8) (8.9)
Non-GAAP net income
attributable to Elbit
Systems' shareholders 67.9 60.6 206.3 206.6 221.9
Percent of revenues 8.0% 7.2% 7.1% 7.3% 8.3%
Non-GAAP diluted net EPS 1.62 1.42 4.88 4.79 5.13
(1) Adjustment of expenses related to cessation of program, which resulted in write-off of inventories and other related costs.
(2) Adjustment of reorganization, restructuring and other related expenses in 2010 are mainly due to write-off of inventories in the amount of approximately $13 million related to the acquisition of Soltam and ITL.
(3) Adjustment of impairment of available-for-sale marketable securities and an impairment of intangible assets.
(4) Adjustment of gain from changes in holdings includes the income from the sale of investments in affiliated companies of $2.3 million in 2012, a sale of Mediguide shares of $12.8 million in 2010, and an adjustment of net gain in the amount of $4.8 million, related to revaluation of a previously held investment, due to accounting treatment as a business combination achieved in stages during 2010.
(5) Adjustment of loss from discontinued operations, net of tax and minority interests, related to impairment of a held-for-sale investment acquired during 2010, as part of the acquisition of the Mikal group of companies.
Recent Events:
On December 5, 2012 the Company announced that Elbit Systems Electro-Optics Elop Ltd. A wholly-owned subsidiary, was awarded a contract from Israel Aerospace Industries Ltd. to provide a space camera for the Italian OPTSAT 3000 observation satellite. The total project, comprising the Jupiter advanced camera and additional services, is valued at approximately $40 million and will be completed within three and a half years.
On December 31, 2012 the Company announced that it was awarded various contracts by the Israel Ministry of Defense, in a number of fields of activity for a total value of approximately $315 million.
On January 27, 2013, the Company announced that it received an approximately $35 million contract from the Israel Ministry of Defense for the development of advanced features for Unmanned Aircraft Systems ("UAS") to be supplied within three years.
On February 6, 2013, the Company announced that its subsidiary in Brazil , AEL Sistemas S.A. ("AEL"), and Embraer Defesa e Segurança S.A. ("Embraer Defesa") signed an agreement for the entrance of Avibras Divisão Aérea e Naval S.A. ("Avibras") as a shareholder of Harpia Sistemas S.A. ("Harpia"), envisaging joint collaboration on UAS in Brazil. According to the agreement, Avibras will hold a 9% stake of the shareholdings in Harpia, resulting in AEL owning 40% of Harpia's shares, with Embraer Defesa remaining as the major shareholder, with 51% of the shares.
On March 5, 2013, the Company announced that M7 Aerospace LLC ("M7"), a wholly-owned subsidiary of Elbit Systems of America, LLC, will be working with BAE Systems to provide logistics support for the T-34, T-44 and T-6 aircraft under a contract awarded to BAE Systems by the Naval Air Systems Command ("NAVAIR"). Under its NAVAIR contract, BAE Systems awarded M7 a subcontract of approximately $50 million to be performed over a five-year period.
Dividend:
The Board of Directors declared a dividend of $0.30 per share for the fourth quarter of 2012. The dividend's record date is April 9, 2013 and the dividend will be paid on April 22, 2013, net of taxes and levies, at the rate of 25%.
Conference Call:
The Company will be hosting a conference call today, Wednesday, March 13, 2013 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 Numbers: 1 888 407 2553
UK Dial-in Number: 0 800 917 9141
ISRAEL Dial-in Number: 03 918 0610
INTERNATIONAL Dial-in Number: +972 3 918 0610
at: 10:00 am Eastern Time; 7:00 am Pacific Time; 2:00 pm UK Time; 4:00 pm Israel Time
This call will also 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 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) or +972 3 925 5918 (Israel and International).
About Elbit Systems
Elbit Systems Ltd. is an international defense electronics company engaged in a wide range of 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 ("UAS"), 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, developing new technologies for defense, homeland security and commercial aviation applications and providing a range of support services. For additional information, visit: http://www.elbitsystems.com.
Attachments:
Consolidated balance sheet
Consolidated statements of income
Consolidated statements of cash flow
Consolidated revenue distribution by areas of operation and by geographical regions
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 thousands of US Dollars)
December 31, December 31,
2012 2011
Audited Audited
Assets
Current assets:
Cash and cash equivalents 199,241 202,577
Short-term bank deposits and marketable
securities 65,555 21,693
Trade and unbilled receivables, net 688,129 669,524
Other receivables and prepaid expenses 180,103 180,024
Inventories, net of customers advances 751,247 761,269
Total current assets 1,884,275 1,835,087
Investments in affiliated companies,
partnerships and other companies 126,482 110,159
Long-term trade and unbilled receivables 229,687 162,762
Long-term bank deposits and other receivables 19,269 12,215
Deferred income taxes, net 31,465 36,130
Severance pay fund 302,680 283,477
709,583 604,743
Property, plant and equipment, net 501,286 517,608
Goodwill and other intangible assets, net 715,561 763,072
Total assets 3,810,705 3,720,510
Liabilities and Equity
Short-term bank credit and loans 181 2,998
Current maturities of long-term loans and Series
A Notes 90,056 127,627
Trade payables 260,975 303,601
Other payables and accrued expenses 704,450 756,529
Customer advances in excess of costs incurred on
contracts in progress 453,382 407,222
1,509,044 1,597,977
Long-term loans, net of current maturities 173,745 302,255
Series A Notes, net of current maturities 408,610 235,319
Employee benefit liabilities 407,661 394,115
Deferred income taxes and tax liabilities, net 48,787 48,467
Customer advances in excess of costs incurred on
contracts in progress 156,497 154,696
Other long-term liabilities 55,735 59,961
1,251,035 1,194,813
Elbit Systems Ltd.'s equity 1,017,115 898,337
Non-controlling interests 33,511 29,383
Total equity 1,050,626 927,720
Total liabilities and equity 3,810,705 3,720,510
ELBIT SYSTEMS LTD.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands of US Dollars, except for share and per share amounts)
Three Months
Year Ended Ended
December 31, December 31,
2012 2011 2012 2011
Audited Unaudited
Revenues 2,888,607 2,817,465 843,917 841,863
Cost of revenues 2,072,742 2,085,451 604,879 700,164
Gross profit 815,865 732,014 239,038 141,699
233,387 241,092 68,273 75,956
Operating expenses: 241,911 235,909 61,586 65,080
Reserch and development, net 137,517 139,349 38,937 34,762
Marketing and selling
General and administrative 612,815 616,350 168,797 175,798
Operating income (loss) 203,050 115,664 70,241 (34,099)
Financial income (expenses), net (26,086) (13,569) (10,562) 9,551
Other income, net 78 1,909 2 554
Income (loss) before income taxes 177,042 104,004 59,681 (23,994)
Taxes on income (17,099) (13,624) (2,895) 6,941
159,943 90,380 56,786 (17,053)
Equity in net earnings of
affiliated companies and
partnerships 11,160 15,377 2,293 4,751
Income (loss) from continuing
operations 171,103 105,757 59,079 (12,302)
Loss from discontinued operations,
net (616) (15,977) (97) (347)
Net income (loss) 170,487 89,780 58,982 (12,649)
Less: net loss (income)
attributable to non-controlling
interests (2,608) 508 (1,773) (393)
Net income (loss) attributable to
Elbit Systems Ltd.'s shareholders 167,879 90,288 57,209 (13,042)
Earnings per share attributable to
Elbit Systems Ltd.'s shareholders:
Basic net earnings (losses) per
share
Continuing operations 3.99 2.33 1.37 (0.30)
Discontinued operations (0.01) (0.22) (0.00) (0.01)
Total 3.98 2.11 1.37 (0.31)
Diluted net earnings (losses) per
share
Continuing operations 3.98 2.31 1.36 (0.30)
Discontinued operations (0.01) (0.22) (0.00) (0.01)
Total 3.97 2.09 1.36 (0.31)
Weighted average number of shares
used in computation of basic
earnings per share (in thousands) 42,190 42,764 41,874 42,736
Weighted average number of shares
used in computation of diluted
earnings per share (in thousands) 42,277 43,131 41,985 42,736
Amounts attributable to Elbit
Systems Ltd.'s shareholders
Income from continuing operations,
net of income tax 168,245 99,778 57,267 (12,836)
Discontinued operations, net of
income tax (366) (9,490) (58) (206)
Net income (loss) attributable to
Elbit Systems Ltd.'s shareholders 167,879 90,288 57,209 (13,042)
ELBIT SYSTEMS LTD.
CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands of US Dollars)
Year Ended December
31,
2012 2011
Audited
CASH FLOWS FROM OPERATING ACTIVITIES
Net income 170,487 89,780
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 138,796 150,618
Write-off of impairment and discontinued
operations, net 616 15,977
Stock-based compensation 3,326 1,996
Amortization of Series A Notes discount and
related issuance costs, net 153 422
Deferred income taxes and reserve, net 6,579 (8,777)
Loss (gain) on sale of property, plant and
equipment 1,197 (1,645)
Loss (gain) on sale of investment (829) 2,189
Equity in net earnings of affiliated companies and
partnerships, net of dividend received (*) (1,602) (270)
Changes in operating assets and liabilities, net
of amounts acquired:
Increase in short and long-term trade receivables,
and prepaid expenses (91,988) (65,062)
Decrease (increase) in inventories, net 10,022 (95,363)
Increase (decrease) in trade payables, other
payables and accrued expenses (75,724) 17,225
Severance, pension and termination indemnities,
net (10,612) 1,879
Increase in advances received from customers 47,961 81,946
Net cash provided by operating activities 198,382 190,915
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (81,637) (121,977)
Acquisition of subsidiaries and business
operations - (12,173)
Investments in affiliated companies and other
companies (4,241) (13,555)
Proceeds from sale of property, plant and
equipment 7,335 15,059
Proceeds from sale of investments 705 329
Investment in long-term deposits (779) (609)
Proceeds from sale of long-term deposits 2,849 40,396
Investment in short-term deposits and
available-for-sale marketable securities (340,899) (88,842)
Proceeds from sale of short-term deposits and
available-for-sale marketable securities 299,029 126,306
Net cash used in investing activities (117,638) (55,066)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of options 1,352 3,833
Purchase of non-controlling interests - (71,000)
Repayment of long-term loans (319,601) (73,666)
Proceeds from long-term loans 122,038 172,303
Proceeds from issuance of Series A Notes 246,973 -
Series A Notes issuance costs (2,035) -
Purchase of treasury shares (26,006) (10,101)
Repayment of Series A Notes and convertible
debentures (53,530) (29,998)
Purchase of convertible debentures of a subsidiary - (2,121)
Dividends paid (50,616) (61,633)
Tax benefit in respect of options exercised 161 169
Change in short-term bank credit and loans, net (2,817) (12,117)
Net cash used in financing activities (84,081) (84,331)
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (3,336) 51,518
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE
YEAR 202,577 151,059
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 199,241 202,577
* Dividend received from affiliated companies and
partnerships 9,558 15,107
ELBIT SYSTEMS LTD.
DISTRIBUTION OF REVENUES
Consolidated Revenues by Areas of Operation:
Year Ended Three Months Ended
December 31, December 31,
2012 2011 2012 2011
$ $ $ $
millions % millions % millions % millions %
Airborne
systems 1,054.5 36.5 969.4 34.4 261.0 30.9 274.2 32.6
Land systems 374.5 13.0 405.3 14.3 110.2 13.1 121.2 14.4
C4ISR systems 1,017.6 35.2 996.4 35.4 340.9 40.4 291.7 34.7
Electro-optic
systems 324.1 11.2 300.2 10.7 112.6 13.3 102.3 12.1
Other (mainly
non-defense
engineering
and production
services) 117.9 4.1 146.2 5.2 19.2 2.3 52.5 6.2
Total 2,888.6 100.0 2,817.5 100.0 843.9 100.0 841.9 100.0
Consolidated Revenues by Geographical Regions(*):
Year Ended Three Months Ended
December 31, December 31,
2012 2011 2012 2011
$ $ $ $
millions % millions % millions % millions %
Israel 519.9 18.0 697.2 24.8 163.9 19.4 187.7 22.3
North America 909.4 31.5 890.7 31.6 245.9 29.1 238.6 28.3
Europe 561.1 19.4 552.4 19.6 193.1 22.9 191.4 22.7
Latin America 258.8 9.0 165.5 5.9 82.8 9.8 72.3 8.6
Asia Pacific 568.4 19.7 460.0 16.3 145.0 17.2 127.6 15.2
Other
countries 71.0 2.4 51.7 1.8 13.2 1.6 24.3 2.9
Total 2,888.6 100.0 2,817.5 100.0 843.9 100.0 841.9 100.0
(*) The distribution of revenues by geographical regions has been modified in certain respects from our reports in prior years. The regions of "Israel" and "Europe" remain unchanged. The "U.S." region has been changed to "North America", which includes the U.S. and Canada. We now also include two new regions: "Latin America" and "Asia-Pacific" (east of the Caspian Sea). The remaining markets are included in "Other countries".
Company Contact:
Joseph Gaspar, Executive VP & CFO
Tel: +972-4-8316663
[email protected]
Dalia Rosen, VP, Head of Corporate Communications
Tel: +972-4-8316784
[email protected]
Elbit Systems Ltd.
IR Contact:
Ehud Helft
Kenny Green
CCG Investor Relations
Tel: 1-646-201-9246
[email protected]
SOURCE Elbit Systems Ltd
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