Web Page sponsored by Odyssey Corporate Finance
Contact: Tom McCarthy, Director, Odyssey Corporate Finance
M: 07867 459 600
D: 0121 503 2375
E:
www.odysseycf.com
———————————————————————
23 Mar 16. Elbit Systems Ltd. (the “Company”) (NASDAQ and TASE: ESLT), the international high technology company, reported its consolidated results for the fourth quarter and full year ended December 31, 2015.
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.
Management Comment: Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, commented: “We are pleased with our solid 2015 results. We saw growth in revenues, strong cash generation as well as an increase in net profit, driven by improved margins across the business. Furthermore, we ended the year with a record backlog standing at $6.6bn. The solid increase in our backlog over the past few years has led to the current growth trend in revenues, while the efforts we have taken to ensure efficient operations and enhance synergies among our business units have enabled us to steadily improve our profitability. All this indicates a strong and healthy business going forward.”
Mr. Machlis continued, “In 2015, we witnessed a strong renewal of interest in our technologies and defense solutions in Europe, recently winning a number of important contracts in the region, which creates the potential for additional growth in this important market. Our results also reflect strong performance in Asia-Pacific, a region with emerging defense requirements that has been a strategic focus for us in recent years.”
Fourth quarter 2015 results:
Revenues in the fourth quarter of 2015 were $886.6m, as compared to $850.3m in the fourth quarter of 2014.
Non-GAAP(*) gross profit amounted to $262.4m (29.6% of revenues) in the fourth quarter of 2015, as compared to $235.0m (27.6% of revenues) in the fourth quarter of 2014. GAAP gross profit in the fourth quarter of 2015 was $253.3m (28.6% of revenues), as compared to $229.5m (27.0% of revenues) in the fourth quarter of 2014.
Research and development expenses, net, were $69.3m (7.8% of revenues) in the fourth quarter of 2015, as compared to $71.0m (8.4% of revenues) in the fourth quarter of 2014.
Marketing and selling expenses, net, were $66.9m (7.5% of revenues) in the fourth quarter of 2015, as compared to $59.5m (7.0% of revenues) in the fourth quarter of 2014.
General and administrative expenses, net, were $39.2m (4.4% of revenues) in the fourth quarter of 2015, as compared to $34.8m (4.1% of revenues) in the fourth quarter of 2014.
Non-GAAP(*) operating income was $91.5m (10.3% of revenues) in the fourth quarter of 2015, as compared to $74.8m (8.8% of revenues) in the fourth quarter of 2014. GAAP operating income in the fourth quarter of 2015 was $78.0m (8.8% of revenues), as compared to $64.2m (7.6% of revenues) in the fourth quarter of 2014.
Financial expenses, net, were $2.3m in the fourth quarter of 2015, as compared to $11.2m in the fourth quarter of 2014.
Taxes on income were $15.4m in the fourth quarter of 2015, as compared to $9.5m in the fourth quarter of 2014.
Equity in net earnings of affiliated companies and partnerships was $3.3m (0.4% of revenues) in the fourth quarter of 2015, as compared to $1.8m (0.2% of revenues) in the fourth quarter of 2014.
Net income attributable to non-controlling interests was $0.8m in the fourth quarter of 2015, as compared to $1.2m in the fourth quarter of 2014.
Non-GAAP(*) net income attributable to the Company’s shareholders in the fourth quarter of 2015 was $74.2m (8.4% of revenues), as compared to $52.8m (6.2% of revenues) in the fourth quarter of 2014. GAAP net income attributable to the Company’s shareholders in the fourth quarter of 2015 was $63