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Elbit Systems Reports Fourth Quarter and Full Year 2012 Results



       Elbit Systems Reports Fourth Quarter and Full Year 2012 Results

PR Newswire

HAIFA, Israel, March 13, 2013

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
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
CCG Investor Relations
Tel: 1-646-201-9246
elbitsystems@ccgisrael.com

SOURCE Elbit Systems Ltd
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