EX-1 2 v094556_ex1.htm
 
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ELBIT SYSTEMS REPORTS
THIRD QUARTER 2007 RESULTS

Third quarter revenues reached $519m, up 38% year-over-year (YoY);
Net profit in the third quarter was $26m, a 41% YoY increase
$214m in operating cash flow for the first nine months of 2007, a 43% YoY increase

Haifa, Israel, November 14, 2007 - Elbit Systems Ltd. (the “Company”) (NASDAQ: ESLT), the international defense company, today reported its consolidated results for the third quarter ended September 30, 2007.

Backlog of orders as of September 30, 2007 reached a record $4,548 million, compared with $3,786 million as of December 31, 2006. 71% of the backlog is for sales outside Israel, and approximately 50% of the backlog is scheduled to be performed by the end of 2008. The majority of the balance is scheduled to be performed in 2009 and 2010.

Consolidated revenues for the third quarter of 2007 increased by 38% to $518.9 million, from $376.7 million in the third quarter of 2006.

Gross profit for the third quarter of 2007 increased by 46% to $140.2 million (27.0% of revenues), as compared with gross profit of $96.1 million (25.5% of revenues) in the third quarter of 2006.

Net profit for the third quarter of 2007 was $26.4 million (5.1% of revenues) compared with a net profit of $18.7 million (5.0% of revenues) in the third quarter of 2006. Earnings per diluted share for the third quarter of 2007, was $0.62 as compared with earnings per diluted share of $0.45 for the third quarter of 2006.

Operating Cash flow generated during the first nine months of 2007 reached a record $214.2 million.
 
The President and CEO of Elbit Systems, Joseph Ackerman, commented: “We are pleased to report another strong quarter of growth, which was based on organic revenue growth of 19% and contribution from acquisitions, bringing our overall revenue growth to 38% over last year. Again, our backlog grew strongly and we generated strong cash flow in the first nine months of the year. Our two recent acquisitions, Tadiran and Ferranti Technologies (Group) Limited, both of which are important steps in our strategy for accelerated growth, have already borne fruit and we have already reaped some of the benefit from the synergies between our businesses. The ongoing merger process, relating to our new subsidiary - Elbit Systems Land and C4I - Tadiran Ltd., which was announced last week, will further expand our business opportunities and will be instrumental to the Group's continued and long-term success". 
 
 
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The Board of Directors declared a dividend of $0.17 per share for the third quarter of 2007. The dividend’s record date is November 27, 2007, and the dividend will be paid on December 10, 2007, net of taxes and levies, at the rate of 16.29%.

Conference Call
The Company will also be hosting a conference call today, November 14, 2007 at 9:00 am EDT. On the call, management will review and discuss its second 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: 0 800 032 3367
ISRAEL Dial-in Number: 03 918 0685
INTERNATIONAL Dial-in Number: +972 3 918 0685
at:
9:00 am Eastern Time, 6:00am Pacific Time, 2:00 pm UK Time, 4:00 pm Israel Time

This call will be broadcast live from a link on Elbit Systems’ web-site at http://www.elbitsystems.com. An online replay will be available from 2 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 are either:
1 888 254 7270 (US) ; 0 800 028 6837 (UK); or +972 3 925 5921 (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), 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 Group also focuses on the upgrading of existing military platforms and developing new technologies for defense, homeland security and commercial aviation applications.

Company Contact:       IR Contact:
 
Joseph Gaspar, Corporate VP & CFO
Dalia Rosen, Director of Corporate Communications
Ehud Helft / Kenny Green 
Elbit Systems Ltd.
G.K. Investor Relations
Tel: +972-4-8316663
Tel: 1-646-201-0246
Fax: +972-4-8316944
Fax: + 972-3-6074711
E-mail: gspr@elbit.co.il
daliarosen@elbit.co.il
E-mail: info@gkir.com

 
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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 companies in the Elbit Systems Group, 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 Elbit Systems Group 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. Elbit Systems does not undertake to update its forward-looking statements.
 
(FINANCIAL TABLES TO FOLLOW)
 
 
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ELBIT SYSTEMS LTD.
CONSOLIDATED BALANCE SHEETS 
(In thousand of US Dollars)

   
September 30
  
December 31
  
   
2007
  
2006
  
   
Unaudited
  
Audited
  
Assets
          
Current Assets:
          
Cash and short term deposits
    
321,387
    
85,400
  
Available for sale marketable securities
    
95,297
    
2,106
  
Trade receivable and others
    
523,928
    
463,323
  
Inventories, net of advances
    
435,548
    
371,962
  
Total current assets
    
1,376,160
    
922,791
  
               
Affiliated Companies & other Investments
    
64,245
    
235,723
  
Long-term receivables & others
    
268,338
    
190,963
  
Fixed Assets, net
    
336,283
    
294,628
  
Other assets, net
    
640,945
    
128,995
  
     
2,685,971
    
1,773,100
  
Liabilities and Shareholder’s Equity
              
               
Current liabilities
    
1,199,697
    
810,885
  
Long-term liabilities
    
960,752
    
461,760
  
Minority Interest
    
11,912
    
6,871
  
Shareholder’s equity
    
513,610
    
493,584
  
     
2,685,971
    
1,773,100
  

 
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ELBIT SYSTEMS LTD.
CONSOLIDATED STATEMENTS OF INCOME
(In thousand of US Dollars, except for per share amounts)

   
Nine Months Ended
Setpember 30
  
Three Months Ended
September 30
  
Year Ended
December 31
  
   
2007
  
2006
  
2007
  
2006
  
2006
  
   
Unaudited
  
Unaudited
  
(Audited)
  
Revenues
    
1,390,705
    
1,055,855
    
518,947
    
376,670
    
1,523,243
  
Cost of revenues
    
1,020,022
    
782,605
    
378,755
    
280,538
    
1,149,768
  
Restructurirng expenses
    
10,482
    
-
    
-
    
-
    
-
  
Gross Profit
    
360,201
    
273,250
    
140,192
    
96,132
    
373,475
  
                                 
Research and development, net
    
87,594
    
64,363
    
34,520
    
24,574
    
92,232
  
Marketing and selling
    
113,134
    
81,027
    
41,558
    
27,397
    
111,880
  
General and administrative
    
73,182
    
57,454
    
28,764
    
19,727
    
77,505
  
IPR&D write-off
    
16,560
    
-
    
-
    
-
    
-
  
Total operating expenses
    
290,470
    
202,844
    
104,842
    
71,698
    
281,617
  
                                 
Operating income
   
69,731
    
70,406
    
35,350
    
24,434
    
91,858
  
                                 
Financial expenses, net
    
(8,698
)
  
(15,363
)
  
(736
)
  
(4,445
)
  
(21,456
)
Other income (expenses), net
    
82
    
391
    
(13
)
  
231
    
1,814
  
Income before income taxes
    
61,115
    
55,434
    
34,601
    
20,220
    
72,216
  
Taxes on income
    
21,311
    
16,645
    
9,189
    
7,279
    
20,694
  
     
39,804
    
38,789
    
25,412
    
12,941
    
51,522
  
Equity in net earnings of affiliated companies and partnership
   
10,021
    
8,189
    
4,248
    
4,575
    
14,743
  
Minority rights
    
(5,042
)
  
1,304
    
(3,285
)
  
1,227
    
5,977
  
Net income (loss)
    
44,783
    
48,282
    
26,375
    
18,743
    
72,242
  
                                 
Earnings per share
                                
Basic net earnings (loss) per share
  
$
1.07
  
$
1.17
  
$
0.63
  
$
0.45
  
$
1.75
  
                                 
Diluted net earnings (loss) per share
  
$
1.06
  
$
1.15
  
$
0.62
  
$
0.45
  
$
1.72