EX-99 2 esltq320146k.htm EXHIBIT ESLT Q3.2014 6K
Earning Release    

 
ELBIT SYSTEMS REPORTS
THIRD QUARTER 2014 RESULTS

Backlog of orders at $6.23 billion; Revenues at $723 million;
Net income of $35 million; EPS of $0.82

Haifa, Israel, November 13, 2014 – Elbit Systems Ltd. (the "Company") (NASDAQ and TASE: ESLT), the international defense electronics company, reported today its consolidated results for the quarter ended September 30, 2014.

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:

Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, commented: “As we previously disclosed, our third quarter profit was affected by increased financial expenses. However, as reflected by our operating income, the ongoing business performance continued to show stability in the quarter. We are encouraged by the continued growth in the backlog and by the increase in revenue in Latin America and Asia-Pacific in the quarter.”


Third quarter of 2014 results:

Revenues in the third quarter of 2014 were $722.7 million, as compared to $730.6 million in the third quarter of 2013.

Gross profit amounted to $203.0 million (28.1% of revenues) in the third quarter of 2014, as compared to $207.4 million (28.4% of revenues) in the third quarter of 2013. The non-GAAP gross profit in the third quarter of 2014 was $208.4 million (28.8% of revenues), as compared to $212.9 million (29.1% of revenues) in the third quarter of 2013. The decrease in the gross profit rate was mainly due to the mix of programs sold in the quarter.

Research and development expenses, net, were $55.8 million (7.7% of revenues) in the third quarter of 2014, as compared to $54.0 million (7.4% of revenues) in the third quarter of 2013.

Marketing and selling expenses were $51.8 million (7.2% of revenues) in the third quarter of 2014, as compared to $61.9 million (8.5% of revenues) in the third quarter of 2013. The decrease was mainly a result of lower expenses related to the mix of marketing activities in the quarter.

General and administrative expenses were $35.3 million (4.9% of revenues) in the third quarter of 2014, as compared to $30.5 million (4.2% of revenues) in the third quarter of 2013.


1

Earning Release    

Operating income was $60.1 million (8.3% of revenues) in the third quarter of 2014, as compared to operating income of $61.1 million (8.4% of revenues) in the third quarter of 2013. The non-GAAP operating income in the third quarter of 2014 was $70.8 million (9.8% of revenues), as compared to $72.3 million (9.9% of revenues) in the third quarter of 2013.

Financial expenses, net, were $23.4 million in the third quarter of 2014, as compared to $6.6 million in the third quarter of 2013. As mentioned in the Company's announcement on October 20, 2014,the increase in the financial expenses in the third quarter of 2014 resulted primarily from the accelerated depreciation of the New Israeli Shekel related to the Company's U.S. Dollar derivative activities as well as the impact of exchange rate differences on balance sheet items.

Taxes on income were $0.1 million (effective tax rate of 0.3%) in the third quarter of 2014, as compared to $7.5 million (effective tax rate of 13.6%) in the third quarter of 2013. The decrease in the effective tax rate was mainly as a result of settlements of tax audits, including adjustments for prior years, in some of the Company's subsidiaries in Israel and the mix of the tax rates in the various jurisdictions in which the Company's entities generate taxable income.

Equity in net earnings of affiliated companies and partnerships was $1.0 million (0.1% of revenues) in the third quarter of 2014, as compared to $3.4 million (0.5% of revenues) in the third quarter of 2013.

Net income attributable to non-controlling interests was $2.9 million in the third quarter of 2014, as compared to $1.6 million in the third quarter of 2013.

Net income attributable to the Company's shareholders in the third quarter of 2014 was $35.0 million (4.8% of revenues), as compared to $49.6 million (6.8% of revenues) in the third quarter of 2013. The non-GAAP net income in the third quarter of 2014 was $43.9 million (6.1% of revenues), as compared to $55.8 million (7.6% of revenues) in the third quarter of 2013. The decrease in net income was due mainly to the increased financial expenses described above.

Diluted net earnings per share attributable to the Company's shareholders were $0.82 for the third quarter of 2014, as compared with diluted net earnings per share of $1.17 for the third quarter of 2013. The non-GAAP diluted earnings per share in the third quarter of 2014 were $1.03, as compared with diluted net earnings per share of $1.32 for the third quarter of 2013.

The Company’s backlog of orders as of September 30, 2014 totaled $6,229 million, as compared to $5,697 million as of September 30, 2013. Approximately 72% of the current backlog is attributable to orders from outside Israel. Approximately 49% of the current backlog is scheduled to be performed during the fourth quarter of 2014 and 2015.

Operating cash flow used in the first nine months of 2014 was $0.2 million, as compared to cash flow provided by operating activities of $24.1 million in the first nine months of 2013. The Company's cash flow was negatively affected mainly by the delay in payments from the Israeli Ministry of Defense. The Company does not foresee a risk in the collection of these payments.










2

Earning Release    

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 certain adjustments, as indicated in the table below.

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.



3

Earning Release    


Reconciliation of GAAP to Non-GAAP (Unaudited) Supplemental Financial Data
(US Dollars in millions)

 
Nine Months Ended September 30,
 
Three Months Ended 
 September 30,
 
Year Ended
December 31,
 
2014
 
2013
 
2014
 
2013
 
2013
 
 
 
 
 
 
 
 
 
 
GAAP gross profit
595.6

 
603.3

 
203.0

 
207.4

 
824.8

Adjustments:
 
 
 
 
 
 
 
 
 
Amortization of intangible assets
16.2

 
16.4

 
5.4

 
5.5

 
22.2

Impairment of long-lived assets
—

 
—

 
—

 
—

 
0.9

Non-GAAP gross profit
611.8

 
619.7

 
208.4

 
212.9

 
847.9

Percent of revenues
29.0
%
 
29.3
%
 
28.8
%
 
29.1
%
 
29.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP operating income
182.6

 
181.5

 
60.1

 
61.1

 
239.4

Adjustments:
 
 
 
 
 
 
 
 
 
Amortization of intangible assets
32.3

 
34.2

 
10.7

 
11.2

 
45.9

Impairment of long-lived assets
—

 
—

 
—

 
—

 
0.9

Legal settlement, net
—

 
(7.6
)
 
—

 
—

 
(7.6
)
Gain from changes in holdings
(6.0
)
 
—

 
—

 
—

 
—

Non-GAAP operating income
208.9

 
208.1

 
70.8

 
72.3

 
278.6

Percent of revenues
9.9
%
 
9.8
%
 
9.8
%
 
9.9
%
 
9.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP net income attributable to Elbit Systems’ shareholders
127.0

 
140.6

 
35.0

 
49.6

 
183.4

Adjustments:
 
 
 
 
 
 
 
 
 
Amortization of intangible assets
32.3

 
34.2

 
10.7

 
11.2

 
45.9

Impairment of long-lived assets
—

 
—

 
—

 
—

 
0.9

Legal settlement, net
—

 
(7.6
)
 
—

 
—

 
(7.6
)
Gain from changes in holdings
(6.0
)
 
(0.9
)
 
—

 
(0.9
)
 
(0.9
)
Adjustment of gain from discontinued operations, net
—

 
(0.8
)
 
—

 
—

 
(0.8
)
Related tax benefits
(5.1
)
 
(8.1
)
 
(1.8
)
 
(4.1
)
 
(10.1
)
Non-GAAP net income attributable to Elbit Systems' shareholders
148.2

 
157.4

 
43.9

 
55.8

 
210.8

Percent of revenues
7.0
%
 
7.4
%
 
6.1
%
 
7.6
%
 
7.2
%
 
 
 
 
 
 
 
 
 
 
Non-GAAP diluted net EPS
3.47

 
3.73

 
1.03

 
1.32

 
4.99




4

Earning Release    

Recent Events:

On August 13, 2014 the Company announced that it was awarded an $80 million contract to supply a Latin American country with Command, Control, Computer & Communications (C4I) systems.

On October 12, 2014 the Company announced that its wholly-owned U.S. subsidiary, Elbit Systems of America, LLC, ("Elbit Systems of America"), was awarded an approximately $12.7 million contract to provide Apache Aviator Integrated Helmets (AAIH) to the United States Army. Work will be performed over a two-year period at Elbit Systems of America's facility in Fort Worth, Texas.

On October 20, 2014 the Company announced that, based upon an initial review of the elements comprising the Company's third quarter 2014 results, the Company anticipates an extraordinary level of finance expenses for the quarter. This increase in financial expenses resulted primarily from the accelerated depreciation of the New Israeli Shekel related to the Company's U.S. dollar derivative activities, as well as the impact of exchange rate differences on balance sheet items. The Company estimates that the impact of the above on the financial expenses for the quarter will be in the range of $15 to $20 million, and accordingly will have a corresponding adverse impact on the quarter's net profit.

On October 22, 2014 the Company announced that it was awarded contracts from an Asian country in a total amount of approximately $85 million. Most of the amount is for an F-5 aircraft avionics upgrade program, and the balance is for the supply of electro-optic and communications systems. The contracts will be performed over a three-year period.

On October 29, 2014 the Company announced that Midroog Ltd., an Israeli rating agency ("Midroog"), reaffirmed Midroog's "Aa1" rating (on a local scale), with a stable outlook, of the Series "A" Notes issued by the Company in 2010 and in 2012.

On October 29, 2014 the Company announced that it was awarded a contract by Rheinmetall Canada Inc. to provide ELSAT 2100 Satellite-on-the-Move (SOTM) systems for use by the Canadian Armed Forces. The contract value, which is in an amount that is not material to Elbit Systems, will be performed over an 18-month period.

On November 11, 2014 the Company announced that its wholly-owned U.S. subsidiary, Elbit Systems of America, was awarded a five-year, firm-fixed price contract valued at approximately $29 million by the United States Air Force (USAF) for logistics support of the USAF’s F-16 head-up display (HUD) electric module assemblies.



















5

Earning Release    

Dividend:

The Board of Directors declared a dividend of $0.32 per share for the third quarter of 2014. The dividend’s record date is November 25, 2014. The dividend will be paid from income generated as Preferred Income (as defined under Israeli tax laws), on December 8, 2014, net of taxes and levies, at the rate of 20%.


Conference Call:

The Company will be hosting a conference call today, Wednesday, November 13, 2014 at 9:00 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: 1 888 668 9141
UK Dial-in Number: 0 800 917 5108
ISRAEL Dial-in Number: 03 918 0609
INTERNATIONAL Dial-in Number: +972 3 918 0609

at: 9:00 am Eastern Time; 6:00 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:

1 888 326 9310 (US) or +972 3 925 5918 (Israel and International).

6

Earning Release    

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, signal intelligence ("SIGINT") systems, data links and 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, including training and simulation systems.
For additional information, visit: www.elbitsystems.com or follow us on Twitter.

Attachments:
Consolidated balance sheets
Consolidated statements of income
Consolidated statements of cash flow
Consolidated revenue distribution by areas of operation and by geographical regions

Company Contact:

Joseph Gaspar, Executive VP & CFO
Tel: +972-4-8316663
j.gaspar@elbitsystems.com
Dalia Rosen, VP, Head of Corporate Communications
Tel: +972-4-8316784
dalia.rosen@elbitsystems.com
Elbit Systems Ltd.
IR Contact: 

Ehud Helft
Kenny Green
GK Investor Relations
Tel: 1-646-201-9246
elbitsystems@gkir.com


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 1943, 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.
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, estoppal 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)

7

Earning Release    

ELBIT SYSTEMS LTD.
CONSOLIDATED BALANCE SHEETS
(In thousands of US Dollars)
 
September 30,
 
December 31,
 
2014
 
2013
 
Unaudited
 
Audited
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
177,406

 
$
193,737

Short-term bank deposits and marketable securities
96,561

 
71,625

Trade and unbilled receivables, net
951,959

 
823,245

Other receivables and prepaid expenses
178,751

 
151,367

Inventories, net of customers advances
866,417

 
756,032

Total current assets
2,271,094

 
1,996,006

 
 
 
 
Investments in affiliated companies and partnerships
122,505

 
131,362

Long-term trade and unbilled receivables
237,099

 
242,576

Long-term bank deposits and other receivables
40,202

 
52,983

Deferred income taxes, net
36,963

 
35,695

Severance pay fund
301,691

 
323,388

 
738,460

 
786,004

 
 
 
 
Property, plant and equipment, net
442,735

 
481,408

Goodwill and other intangible assets, net
649,931

 
669,750

Total assets
$
4,102,220

 
$
3,933,168

 
 
 
 
 
 
 
 
Liabilities and Equity
 
 
 
Short-term bank credit and loans
$
40,550

 
$
—

Current maturities of long-term loans and Series A Notes
87,397

 
63,111

Trade payables
337,934

 
301,480

Other payables and accrued expenses
725,271

 
720,544

Customer advances in excess of costs incurred on contracts in progress
416,595

 
349,998

 
1,607,747

 
1,435,133

 
 
 
 
Long-term loans, net of current maturities
288,705

 
224,209

Series A Notes, net of current maturities
312,308

 
377,812

Employee benefit liabilities
375,435

 
407,855

Deferred income taxes and tax liabilities, net
70,466

 
73,502

Customer advances in excess of costs incurred on contracts in progress
114,290

 
164,854

Other long-term liabilities
58,555

 
55,634

 
1,219,759

 
1,303,866

 
 
 
 
Elbit Systems Ltd.'s equity
1,257,052

 
1,177,012

Non-controlling interests
17,662

 
17,157

Total equity
1,274,714

 
1,194,169

Total liabilities and equity
$
4,102,220

 
$
3,933,168


8

Earning Release    

ELBIT SYSTEMS LTD.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands of US Dollars, except for share and per share amount)
   
Nine Months Ended September 30,
 
Three Months Ended 
 September 30,
 
Year Ended
December 31,
 
2014
 
2013
 
2014
 
2013
 
2013
 
Unaudited
 
Unaudited
 
Audited
Revenues
$
2,107,964

 
$
2,113,694

 
$
722,704

 
$
730,631

 
$
2,925,151

Cost of revenues
1,512,407

 
1,510,393

 
519,701

 
523,187

 
2,100,304

Gross profit
595,557

 
603,301

 
203,003

 
207,444

 
824,847

 
 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
Research and development, net
156,988

 
156,555

 
55,827

 
54,012

 
220,482

Marketing and selling
157,036

 
174,755

 
51,775

 
61,906

 
235,466

General and administrative, net
104,840

 
90,449

 
35,257

 
30,468

 
129,507

Other income, net
(5,951
)
 
—

 
—

 
—

 
—

 
412,913

 
421,759

 
142,859

 
146,386

 
585,455

Operating income
182,644

 
181,542

 
60,144

 
61,058

 
239,392

 
 
 
 
 
 
 
 
 
 
Financial expenses, net
(36,283
)
 
(27,274
)
 
(23,350
)
 
(6,634
)
 
(37,310
)
Other income, net
254

 
925

 
132

 
881

 
937

Income before income taxes
146,615

 
155,193

 
36,926

 
55,305

 
203,019

Taxes on income
(16,150
)
 
(17,199
)
 
(105
)
 
(7,532
)
 
(25,313
)
 
130,465

 
137,994

 
36,821

 
47,773

 
177,706

Equity in net earnings of affiliated companies and partnerships
3,763

 
7,567

 
1,012

 
3,393

 
13,032

Income from continuing operations
134,228

 
145,561

 
37,833

 
51,166

 
190,738

Income from discontinued operations, net
—

 
681

 
—

 
—

 
681

   Net income
134,228

 
146,242

 
37,833

 
51,166

 
191,419

Less: net income attributable to non-controlling interests
(7,227
)
 
(5,690
)
 
(2,867
)
 
(1,577
)
 
(8,002)

Net income attributable to Elbit Systems Ltd.'s shareholders
$
127,001

 
$
140,552

 
$
34,966

 
$
49,589

 
$
183,417

 
 
 
 
 
 
 
 
 
 
Earnings per share attributable to Elbit Systems Ltd.'s shareholders:
 
 
 
 
Basic net earnings per share
 
 
 
 
 
 
 
 
 
Continuing operations
$
2.98

 
$
3.32

 
$
0.82

 
$
1.18

 
$
4.34

Discontinued operations
—

 
0.02
 
—

 
—

 
0.01

Total
$
2.98

 
$
3.34

 
$
0.82

 
$
1.18

 
$
4.35

Diluted net earnings per share
 
 
 
 
 
 
 
 
 
Continuing operations
$
2.98

 
$
3.31

 
$
0.82

 
$
1.17

 
$
4.33

Discontinued operations
—

 
0.02
 
—

 
—

 
0.01

Total
$
2.98

 
$
3.33

 
$
0.82

 
$
1.17

 
$
4.34

 
 
 
 
 
 
 
 
 
 
Weighted average number of shares (in thousands)
 used in computation of
 
 
 
 
 
 
 
 
 
 Basic earnings per share
42,646

 
42,044

 
42,665

 
42,178

 
42,139

Diluted earnings per share
42,669

 
42,213

 
42,686

 
42,348

 
42,295

Amounts attributable to Elbit Systems Ltd.'s shareholders
 
 
 
 
 
 
 
 
Income from continuing operations, net of income tax
$
127,001

 
$
139,733

 
$
34,966

 
$
49,589

 
$
182,598

Discontinued operations, net of income tax
—

 
819

 
—

 
—

 
819

Net income attributable to Elbit Systems Ltd.'s shareholders
$
127,001

 
$
140,552

 
$
34,966

 
$
49,589

 
$
183,417


9

Earning Release    

ELBIT SYSTEMS LTD.
CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands of US Dollars)
 
Nine Months Ended September 30,
 
Year Ended
December 31,
 
2014
 
2013
 
2013
 
Unaudited
 
Audited
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
 
Net income
$
134,228

 
$
146,242

 
$
191,419

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
Depreciation and amortization
92,852

 
96,571

 
129,348

Write-off impairment and discontinued operations, net
—

 
(681
)
 
254

Stock-based compensation
250

 
1,096

 
440

Amortization of Series A Notes premium and related issuance costs, net
(69
)
 
(69
)
 
(92
)
Deferred income taxes and reserve, net
(10,553
)
 
1,545

 
221

Gain on sale of property, plant and equipment
(2,803
)
 
(133
)
 
(147
)
Loss (gain) on sale of investment
(5,864
)
 
(425
)
 
873

Equity in net loss (earnings) of affiliated companies and partnerships, net of dividend received (*)
9,235

 
(2,067
)
 
468

Changes in operating assets and liabilities, net of amounts acquired:
 
 
 
 
 
Increase in short and long-term trade receivables and prepaid expenses
(147,259
)
 
(195,656
)
 
(108,337
)
Increase in inventories, net
(110,366
)
 
(30,791
)
 
(4,785
)
Increase in trade payables, other payables and accrued expenses
37,280

 
32,407

 
55,935

Severance, pension and termination indemnities, net
(10,459
)
 
3,184

 
(3,595
)
Increase (decrease) in advances received from customers
13,332

 
(27,118
)
 
(95,027
)
Net cash provided by (used in) operating activities
(196
)
 
24,105

 
166,975

CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
 
Purchase of property, plant and equipment and other assets
(42,608
)
 
(54,987
)
 
(63,019
)
Acquisition of a subsidiary
787

 
—

 
—

Investments in affiliated companies and other companies
(3,536
)
 
(5,046
)
 
(6,222
)
Proceeds from sale of property, plant and equipment
19,129

 
4,264

 
3,755

Proceeds from sale of investments
110

 
2,000

 
3,550

Investment in long-term deposits
(440
)
 
(1,171
)
 
(2,076
)
Proceeds from sale of long-term deposits
426

 
246

 
795

Investment in short-term deposits and marketable securities
(77,485
)
 
(33,050
)
 
(50,975
)
Proceeds from sale of short-term deposits and marketable securities
54,540

 
30,543

 
42,899

Net cash used in investing activities
(49,077
)
 
(57,201
)
 
(71,293
)
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
 
Proceeds from exercise of options
3,393

 
11,159

 
18,364

Repayment of long-term loans
(107,566
)
 
(143,547
)
 
(230,532
)
Proceeds from long-term loans
200,500

 
217,100

 
242,247

Repayment of Series A Notes
(55,532
)
 
(55,535
)
 
(55,535
)
Dividends paid (**)
(48,403
)
 
(46,928
)
 
(75,549
)
Change in short-term bank credit and loans, net
40,550

 
(61
)
 
(181
)
Net cash provided by (used in) financing activities
32,942

 
(17,812
)
 
(101,186
)
NET DECREASE IN CASH AND CASH EQUIVALENTS
(16,331
)
 
(50,908
)
 
(5,504
)
Cash and cash equivalents at the beginning of the year
193,737

 
199,241

 
199,241

Cash and cash equivalents at the end of the period
$
177,406

 
$
148,333

 
$
193,737

* Dividend received from affiliated companies and partnerships
$
12,998

 
$
5,500

 
$
13,500

 
 
 
 
 
 
** Dividends paid to the Company's shareholders and minority shareholders of a subsidiary.
 
 

10

Earning Release    

ELBIT SYSTEMS LTD.
DISTRIBUTION OF REVENUES
(In millions of US Dollars)



Consolidated Revenues by Areas of Operation:

 
Nine Months Ended
 
Three Months Ended
 
September 30,
 
September 30,
 
2014
 
2013
 
2014
 
2013
 
$ millions
 
%
 
$ millions
 
%
 
$ millions
 
%
 
$ millions
 
%
Airborne systems
883.6

 
41.9
 
849.3
 
40.2
 
304.5

 
42.1
 
287.2

 
39.3
Land systems
161.5

 
7.7
 
195.4
 
9.2
 
38.1

 
5.3
 
75.6

 
10.3
C4ISR systems
808.9

 
38.4
 
771.8
 
36.5
 
297.8

 
41.2
 
273.4

 
37.4
Electro-optic systems
182.5

 
8.7
 
227.4
 
10.8
 
57.2

 
7.9
 
67.9

 
9.3
Other (mainly non-defense engineering and production services)
71.5

 
3.3
 
69.8
 
3.3
 
25.1

 
3.5
 
26.5

 
3.7
Total
2,108.0

 
100.0
 
2,113.7

 
100.0
 
722.7

 
100.0
 
730.6

 
100.0
                                                                             


Consolidated Revenues by Geographic Regions:

 
Nine Months Ended
 
Three Months Ended
 
September 30,
 
September 30,
 
2014
 
2013
 
2014
 
2013
 
$ millions
 
%
 
$ millions
 
%
 
$ millions
 
%
 
$ millions
 
%
Israel
492.9
 
23.4
 
470.6
 
22.3
 
161.4

 
22.3
 
181.7

 
24.9
North America
610.5
 
29.0
 
630.9
 
29.8
 
200.0

 
27.7
 
217.0

 
29.7
Europe
308.9
 
14.7
 
397.9
 
18.8
 
104.4

 
14.5
 
127.3

 
17.4
Asia-Pacific
346.3

 
16.4
 
357.5

 
16.9
 
110.9

 
15.3
 
97.0

 
13.3
Latin America
311.5

 
14.8
 
210.9

 
10.0
 
140.5

 
19.4
 
78.3

 
10.7
Other countries
37.9

 
1.7
 
45.9

 
2.2
 
5.5

 
0.8
 
29.3

 
4.0
Total
2,108.0

 
100.0
 
2,113.7

 
100.0
 
722.7

 
100.0
 
730.6

 
100.0

                                                                                                                            


11