Tuesday May 5, 4:27 pm Eastern Time
Company Press Release
Elbit Systems Reports First Quarter Results - Revenues Increase 12%
Net Income Up 29% -
HAIFA, Israel--(BUSINESS WIRE)--May 5, 1998--Elbit Systems Ltd. (NASDAQ/NM symbol: ESLTF - news) today announced results for the first quarter ended March 31, 1998.
Revenues for the quarter ended March 31, 1998 were $103.1 million, an increase of 12% compared with $91.8 million for 1997. Gross profit for the quarter was $28.6 million compared with $24.4 million for the same period last year. Net income for the quarter was $6.1 million, or $0.23 per share (diluted), compared with $4.7 million, or $0.20 per share (diluted), for the first quarter 1997.
Per share results for the quarter were affected by an increase in the weighted average number of shares outstanding due to the Company's public offering of 3,223,750 ordinary shares completed in the fourth quarter of 1997.
The Company's backlog of orders as of March 31, 1998 was $655 million compared with $670 million as of December 31, 1997. Orders from outside Israel constituted approximately 79% of the backlog at the end of the quarter with 83% of the backlog scheduled to be performed in 1998 and 1999.
Commenting on the results, Mr. Joseph Ackerman, President and Chief Executive Officer said: ''This is the fifth consecutive quarter of growth in revenue, gross profit and net income over the corresponding previous periods, while increasing investments in research and development as well as in marketing activities. It is our intention to continue to enhance our technological personnel and further expand our market presence in order to maintain our leading position and continue the growth of the Company.''
The Board of Directors declared a dividend for the first quarter of 1998 of $0.05 per share. The record date for the dividend is July 6, 1998 and will be paid on July 20, 1998 net of taxes and levies to be withheld at the rate currently estimated to be 25%.
Elbit Systems Ltd. is engaged in a wide range of defense- related airborne, ground and command, control and communications (''C3'') programs throughout the world. The Company focuses on upgrading of existing military platforms and developing new technologies for defense applications.
Forward looking statements with respect to the Company's business, financial condition and results of operations, in this release are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward looking statements, including, but not limited to, product demand, pricing, market acceptance, changing economic conditions, risks in product and technology development, the effect of the Company's accounting policies as well as certain other risk factors which are detailed from time to time in the Company's SEC filings.
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ELBIT SYSTEMS LTD.
Condensed Statements of Operations
(U.S. Dollars in thousands, except per share data)
Three Months Ended Year Ended
03/31/98 03/31/97 12/31/97
(Unaudited) (Unaudited) (Audited)
Revenues $103,061 $91,807 $372,342
Cost of revenues 74,436 67,430 271,795
Gross Profit 28,625 24,377 100,547
Research & development costs, net 9,641 8,355 27,884
Marketing and selling expenses 7,808 6,493 28,264
General and administrative expenses 3,078 3,168 13,232
20,527 18,016 69,380
Operating income 8,098 6,361 31,167
Finance income (expenses), net 48 101 (316)
Other income (expenses), net 44 30 83
Income before income taxes 8,190 6,492 30,934
Provision for income taxes 2,081 1,388 8,316
6,109 5,104 22,618
Company's share of partnership loss (55) (425) (463)
Net income $6,054 $4,679 $22,155
Earnings per share
Basic net income per share $0.25 $0.22 $1.00
Weighted average number of shares
used in computation (in thousands) 24,613 21,386 22,187
Diluted net income per share $0.23 $0.20 $0.92
Weighted average number of shares
used in computation (in thousands) 26,672 23,330 24,202
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ELBIT SYSTEMS LTD.
Condensed Balance Sheet
(U.S. Dollars in thousands)
03/31/98 12/31/97
Assets (Unaudited) (Audited)
Current Assets
Cash and short term deposits $56,880 $58,190
Trade receivables and others 72,868 70,969
Inventories, net of advances 79,091 87,001
Total Current Assets 208,839 216,160
Deposits and long-term loans 64,702 49,075
Long term receivables and others 24,319 24,697
Fixed assets, net 31,570 29,797
Other assets, net 763 958
$330,193 $320,687
Liabilities and Shareholders'
Equity
Current liabilities 155,466 154,692
Long-term liabilities 34,544 30,675
Shareholders' equity 140,183 135,320
$330,193 $320,687
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Contact:
Arie Tal, Corporate Secretary
Ilan Pacholder, Finance Director
Elbit Systems
Tel: 972-4 831-6632
Fax: 972-4 831-6659
or
Jody Burfening
Lippert/Heilshorn & Associates Ltd.
Tel: 212-838-3777 (ext. 304)
jody@lhai.com |
