ELBIT SYSTEMS REPORTS THIRD QUARTER 2022 RESULTS

Backlog of orders at $14.7 billion; Revenues of $1.3 billion;

Non-GAAP web earnings of $63 million;

GAAP web earnings of $56 million;

Non-GAAP web EPS of $1.40; GAAP web EPS of $1.26

HAIFA, Israel, Nov. 29, 2022 /PRNewswire/ — Elbit Methods Ltd. (“Elbit Methods” or the “Firm”) (NASDAQ: ESLT) (TASE: ESLT), the worldwide excessive expertise firm, reported right this moment its consolidated outcomes for the quarter ended September 30, 2022.

On this launch, the Firm is offering US-GAAP outcomes in addition to extra non-GAAP monetary information, that are meant to supply traders a extra complete view of the Firm’s enterprise outcomes and tendencies. For an outline of the Firm’s non-GAAP definitions see beneath, “Non-GAAP monetary information”. Except in any other case acknowledged, all monetary information offered is US-GAAP monetary information.

Administration Remark:

Bezhalel (Butzi) Machlis, President and CEO of Elbit Methods, commented: “The present setting presents alternatives and challenges for Elbit Methods. Elevated geopolitical tensions and rising protection budgets have created a number of alternatives and we’re growing funding in enterprise improvement to comprehend the potential from these tendencies.

Our individuals are our most essential asset and their contribution is crucial to our long run success. This 12 months and as a part of our efforts to retain excessive performing workers, now we have awarded inventory value linked compensation plans and have incurred associated prices. We’ve got additionally elevated inventories in current quarters as a part of our efforts to mitigate the influence of worldwide provide chain disruptions and keep well timed deliveries to our prospects. Our working assumption is that offer chain and labor inflation pressures will regularly subside from the second half of 2023.

We proceed to put money into Elbit Methods’ portfolio of superior technological capabilities together with unmanned programs, C4I, EW, maritime options and precision munitions. The numerous orders acquired in 2022 have highlighted the relevance of our portfolio to our prospects and help future development prospects”.

Third quarter 2022 outcomes:

Revenues within the third quarter of 2022 have been $1,348.9 million, as in comparison with $1,363.6 million within the third quarter of 2021.

Non-GAAP^(*) gross revenue amounted to $337.9 million (25.0% of revenues) within the third quarter of 2022, as in comparison with $370.7 million (27.2% of revenues) within the third quarter of 2021. GAAP gross revenue within the third quarter of 2022 was $326.0 million (24.2% of revenues), as in comparison with $363.2 million (26.6% of revenues) within the third quarter of 2021. The GAAP and Non-GAAP gross revenue within the third quarter of 2022 consists of bills of roughly $13 million associated to the impact of the numerous enhance within the Firm’s share value on workers’ inventory value linked compensation plans.

*see Non-GAAP monetary information

Analysis and improvement bills, web have been 113.2 million (8.4% of revenues) within the third quarter of 2022, as in comparison with 101.5 million (7.4% of revenues) within the third quarter of 2021.

Advertising and marketing and promoting bills, web have been $68.5 million (5.1% of revenues) within the third quarter of 2022, as in comparison with $84.1 million (6.2% of revenues) within the third quarter of 2021.

Common and administrative bills, web have been $80.2 million (5.9% of revenues) within the third quarter of 2022, as in comparison with $67.3 million (4.9% of revenues) within the third quarter of 2021.

Different working earnings, web have been $9.4 million within the third quarter of 2022. Different working earnings, web within the third quarter of 2022 was a results of a capital achieve from sale of a constructing in Israel. 

Non-GAAP^(*) working earnings was $84.3 million (6.3% of revenues) within the third quarter of 2022, as in comparison with $123.0 million (9.0% of revenues) within the third quarter of 2021. GAAP working earnings within the third quarter of 2022 was $73.4 million (5.4% of revenues), as in comparison with $110.3 million (8.1% of revenues) within the third quarter of 2021. GAAP and Non-GAAP^(*) working earnings within the third quarter of 2022 was diminished by bills of roughly $22 million associated to the Firm’s inventory value linked compensation plans.

Monetary bills, web have been $16.4 million within the third quarter of 2022, as in comparison with $13.5 million within the third quarter of 2021.

Different earnings, web have been $4.8 million within the third quarter of 2022, as in comparison with $0.3 million within the third quarter of 2021. Different earnings, web within the third quarter of 2022 resulted primarily from revaluation of holdings in an affiliated firm.

Taxes on earnings have been $7.9 million within the third quarter of 2022, as in comparison with $8.3 million within the third quarter of 2021.

Fairness in web earnings of affiliated firms and partnerships have been $2.3 million within the third quarter of 2022, as in comparison with $3.0 million within the third quarter of 2021.

Non-GAAP^(*) web earnings attributable to the Firm’s shareholders within the third quarter of 2022 was $62.6 million (4.6% of revenues), as in comparison with $103.1 million (7.6% of revenues) within the third quarter of 2021. GAAP web earnings attributable to the Firm’s shareholders within the third quarter of 2022 was $56.2 million (4.2% of revenues), as in comparison with $91.9 million (6.7% of revenues) within the third quarter of 2021. Web earnings within the third quarter of 2022 was diminished by web bills of roughly $20 million associated to the Firm’s inventory value linked compensation plans.

Non-GAAP^(*) diluted web earnings per share attributable to the Firm’s shareholders have been $1.40 for the third quarter of 2022, as in comparison with $2.33 for the third quarter of 2021. GAAP diluted earnings per share attributable to the Firm’s shareholders within the third quarter of 2022 have been $1.26, as in comparison with $2.08 within the third quarter of 2021. Diluted web earnings per share within the third quarter of 2022, have been diminished by $0.45 because of the bills associated to the Firm’s inventory value linked compensation plans.

*see Non-GAAP monetary information

The Firm’s backlog of orders as of September 30, 2022 totaled $14.7 billion. Roughly 75% of the present backlog is attributable to orders from outdoors Israel. Roughly 40% of the backlog is scheduled to be carried out in the course of the the rest of 2022 and 2023. 

Money flows offered by working actions within the 9 months ended September 30, 2022 have been $44.6 million, as in comparison with $157.0 million within the 9 months ended September 30, 2021. Money flows in 2022 included an quantity of roughly $76 million of a one-time tax fee associated to the Firm’s implementation of the modification to the legislation of Encouragement of Capital Investments permitting fee of diminished company tax for the discharge of exempt earnings from “Permitted Enterprises” and “Privileged Enterprises” in Israel, as reported in our 2021 annual report.

Influence of the Covid-19 Pandemic on the Firm:

The Coronavirus illness 2019 (COVID-19) was declared a pandemic by the World Well being Group in March 2020. COVID-19 has had vital adverse impacts on the worldwide economic system, leading to disruptions to produce chains and monetary markets, vital journey restrictions, facility closures and shelter-in place orders in varied places. Such disruptions additionally led to world shortages of electronics and different elements, elevated prices and prolonged lead instances. Elbit Methods is intently monitoring the evolution of the COVID-19 pandemic and its impacts on the Firm’s workers, prospects and suppliers, in addition to on the worldwide economic system.

As we final reported on August 16, 2022, now we have been taking quite a few actions to guard the protection of our workers in addition to keep enterprise continuity and safe our provide chain. All of those actions stay ongoing.

We’ve got applied a collection of value management measures to assist restrict the monetary influence of the pandemic on the Firm, in parallel to the measures we’re taking to keep up enterprise continuity and deliveries to our prospects. We are also engaged on effectivity initiatives with quite a few our suppliers. We proceed to guage our operations on an ongoing foundation so as to adapt to the evolving enterprise setting.

Throughout 2021 and the primary 9 months of 2022 our protection actions, which account for many of our enterprise, weren’t materially impacted by the pandemic, though a few of our companies skilled sure disruptions because of authorities directed security measures, journey restrictions and provide chain delays. 

We consider that as of September 30, 2022, Elbit Methods had a wholesome stability sheet, sufficient ranges of money and entry to credit score amenities that present liquidity when vital. We’ve got given excessive precedence to money administration and sufficient money reserves to run the enterprise.

The extent of the influence of COVID-19 on the Firm’s efficiency is dependent upon future developments together with the length and unfold of the pandemic, the measures adopted by governments to restrict the unfold of the pandemic, together with implementation of vaccinations, and ensuing actions that could be taken by our prospects and our provide chain, all of which include uncertainties. As famous in our annual report on Type 20-F for the 12 months ended December 31, 2021, the preparation of monetary experiences requires us to make judgments, assumptions and estimates that have an effect on the quantities reported. For our monetary outcomes for the quarter ended September 30, 2022, we thought of the financial influence of the COVID-19 pandemic on our crucial and vital accounting estimates. The anticipated influence of the COVID-19 pandemic didn’t have a fabric impact on our judgments, assumptions and estimates mirrored within the outcomes. Nevertheless, our future outcomes could differ materially from our estimates. As occasions proceed to evolve in reference to the COVID-19 pandemic, the estimates we use in future intervals could change materially.

* Non-GAAP monetary information:

The next non-GAAP monetary information is offered to allow traders to have extra info on the Firm’s enterprise efficiency in addition to an additional foundation for periodical comparisons and tendencies referring to the Firm’s monetary outcomes. The Firm believes such information offers helpful info to traders by facilitating extra significant comparisons of the Firm’s monetary outcomes over time. Such non-GAAP info is utilized by the Firm’s administration to make strategic selections, forecast future outcomes and consider the Firm’s present efficiency. Nevertheless, traders are cautioned that, not like monetary measures ready in accordance with GAAP, non-GAAP measures is probably not comparable with the calculation of comparable measures for different firms.   

The non-GAAP monetary information consists of reconciliation changes relating to non-GAAP gross revenue, working earnings, web earnings and diluted EPS. In arriving at non-GAAP displays, firms typically issue out gadgets equivalent to those who have a non-recurring influence on the earnings statements, varied non-cash gadgets together with vital change price variations, vital results of retroactive tax laws, modifications in accounting steerage, monetary transactions and different gadgets not thought of to be a part of common ongoing enterprise, which, in administration’s judgment, are gadgets which are thought of to be outdoors of the assessment of core working outcomes.

Within the Firm’s non-GAAP presentation, the Firm made sure changes, as indicated within the desk beneath.

These non-GAAP measures should not primarily based on any complete set of accounting guidelines or ideas. The Firm believes that non-GAAP measures have limitations in that they don’t replicate the entire quantities related to the Firm’s outcomes of operations, as decided in accordance with GAAP, and that these measures ought to solely be used to guage the Firm’s outcomes of operations along side the corresponding GAAP measures. Buyers ought to think about non-GAAP monetary measures along with, and never as replacements for or superior to, measures of monetary efficiency ready in accordance with GAAP.

Latest Occasions:

On August 17, 2022, the Firm introduced that it was awarded two contracts, in an mixture quantity valued at $240 million, to improve Foremost Battle Tanks for a world buyer. A $60 million contract will probably be delivered over a interval of two years and a $180 million contract will probably be delivered over a interval of 4 years. 

On September 12, 2022, the Firm introduced that its U.S. subsidiary, Elbit Methods of America LLC, (“Elbit Methods of America”), was awarded an Indefinite Supply/Indefinite Amount (ID/IQ) contract with a most potential worth of as much as roughly $49 million, to supply 120mm mortar programs for the U.S. Military. The contract will probably be executed in Fort Price, Texas over a interval of 5 years. An preliminary supply order of roughly $10 million has been issued underneath this ID/IQ contract, to be executed over a two-year interval.

On September 12, 2022, the Firm introduced that Elbit Methods of America was awarded a $10 million contract by SOSSEC, Inc. to start part II of the event of an Superior Low Gentle Degree Sensor that’s meant for use to help the U.S. Military’s Built-in Visible Augmentation System 2.0 for troopers. The contract will probably be executed by 2025 and the work will probably be carried out in Roanoke, Virginia. 

On September 13, 2022, the Firm introduced that it was awarded a contract valued at roughly $76 million to produce an Digital Warfare coaching functionality to the Air Drive of a rustic in Asia-Pacific. The contract will probably be carried out over a interval of two years.

On September 22, 2022, the Firm introduced that it was awarded a contract valued at $80 million to produce unmanned turrets for Armoured Combating Autos of an Asian-Pacific nation. The contract will probably be carried out over a three-year interval.

On September 28, 2022, the Firm introduced that the Israel Securities Authority prolonged the time period of the Firm’s shelf prospectus filed in September 2020, by 12 months, till September 29, 2023.

On September 28, 2022, the Firm introduced that it was awarded a contract valued at $120 million to produce Hermes™ 900 Maritime Unmanned Plane Methods and coaching capabilities to the Royal Thai Navy. The contract will probably be carried out over a three-year interval.

On October 12, 2022, the Firm introduced that Elbit Methods of America, was awarded an order valued at roughly $107 million for the availability of Enhanced Evening Imaginative and prescient Goggle – Binocular programs, spare elements, logistics help, and take a look at gear, for the U.S. Military. The order will probably be executed in Roanoke, Virginia and will probably be equipped in the course of the years 2023 and 2024.

On October 26, 2022, the Firm introduced that it was awarded a contract valued at roughly $65 million to produce a modernization resolution to a Latin American Military. The contract will probably be executed over a interval of two and a half years.

On October 27, 2022, the Firm introduced that Sparton De Leon Springs LLC, a subsidiary of Elbit Methods of America LLC, along with two different firms, have been awarded an estimated mixture joint ceiling of $5.1 billion for firm-fixed-price modifications to a beforehand awarded ID/IQ contract to produce sonobuoy capabilities to the U.S. Navy. In accordance with the usDepartment of Protection, no funds have been obligated on the time of award. The businesses have a chance to compete for particular person orders and funds will probably be obligated on particular person orders as they’re issued.

On October 27, 2022, the Firm introduced that it was awarded a contract valued at roughly $215 million to supply an aerial intelligence resolution to an Asia-Pacific nation. The contract will probably be delivered over a interval of two years.

On October 31, 2022, the Firm introduced that it was awarded a contract valued at roughly $25 million from the End Ministry of Defence to produce radio communications programs to the End Military. The contract will probably be executed over a two-year interval.

On November 10, 2022, the Firm introduced that its subsidiary Elbit Methods UK Ltd. (“Elbit Methods UK”) was awarded a follow-on contract valued at roughly $19 million (roughly £17 million) to produce Evening Imaginative and prescient Goggles and through-life help to the British Military. The contract will probably be executed over a 18-month interval.

On November 14, 2022, the Firm introduced that it was awarded a contract valued at $72 million to produce Hermes 900 Unmanned Plane Methods and coaching capabilities to a world buyer. The contract will probably be carried out over a two-year interval.

On November 17, 2022, the Firm introduced that at its Annual Common Assembly of Shareholders held on November 16, 2022 on the Firm’s places of work in Haifa, the proposed resolutions described within the Proxy Assertion to the Shareholders dated October 6, 2022 and detailed hereunder, have been accredited by the respective required majority: 

1. “to re-elect to the Board the next seven members who should not “Exterior Administrators” as outlined within the Israeli Corporations Regulation 5759-1999, to serve till the shut of the following Annual Common Assembly of Shareholders: Mr. Michael Federmann, Mrs. Rina Baum, Mr. Yoram Ben-Zeev, Mr. David Federmann, Mr. Dov Ninveh, Prof. Ehood (Udi) Nisan, and Prof. Yuli Tamir;
2. to re-elect Mrs. Bilha (Billy) Shapira to an extra three-year time period as an Exterior Director; and
3. to re-appoint Kost, Forer, Gabbay & Kasierer, a member of Ernst & Younger World, because the Firm’s unbiased auditor for the fiscal 12 months ending December 31, 2022, and till the shut of the following Annual Common Assembly of Shareholders.”

On November 17, 2022, the Firm introduced that it was awarded a contract valued at roughly $200 million to produce Digital Warfare and airborne laser applied sciences to guard army helicopters of a rustic in Asia-Pacific. The contract will probably be executed over a four-year interval. 

Dividend:

The Board of Administrators declared a dividend of $ 0.5 per share for the third quarter of 2022. The dividend’s file date is December 27, 2022. The dividend will probably be paid on January 9, 2023, after deduction of taxes on the supply, on the price of 16.8%. 

Convention Name:

The Firm will probably be internet hosting a convention name right this moment, Tuesday, November 29, 2022, at 9:00 a.m. Japanese Time. On the decision, administration will assessment and focus on the outcomes and will probably be accessible to reply questions.

To take part, please name one of many teleconferencing numbers that observe. If you’re unable to attach utilizing the toll-free numbers, please strive the worldwide dial-in quantity.

US Dial-in Quantity: 1-866-744-5399 
Canada Dial-in Quantity: 1-866-485-2399 
Israel Dial-in Quantity: 03-918-0644
INTERNATIONAL Dial-in Quantity: 972-3-918-0644

at 9:00am Japanese Time; 6:00am Pacific Time; 4:00pm Israel Time

The convention name may also be broadcast dwell on Elbit Methods’ web site at https://www.elbitsystems.com. A web-based replay will probably be accessible from 24 hours after the decision ends.

Alternatively, for 2 days following the decision, traders will have the ability to dial a replay quantity to take heed to the decision. The dial-in numbers are: 1-888-782-4291 (US and Canada) or +972-3-925-5900 (Israel and Worldwide).

About Elbit Methods

Elbit Methods Ltd. is a world excessive expertise firm engaged in a variety of protection, homeland safety and business packages all through the world. The Firm, which incorporates Elbit Methods and its subsidiaries, operates within the areas of aerospace, land and naval programs, command, management, communications, computer systems, intelligence surveillance and reconnaissance (“C4ISR”), unmanned plane programs, superior electro-optics, electro-optic area programs, EW suites, sign intelligence programs, information hyperlinks and communications programs, radios, cyber-based programs and munitions. The Firm additionally focuses on the upgrading of present platforms, growing new applied sciences for protection, homeland safety and business purposes and offering a spread of help providers, together with coaching and simulation programs.

For added info, go to: https://elbitsystems.com, observe us on Twitter or go to our official Facebook, YouTube and LinkedIn Channels. .

Attachments:

Consolidated stability sheets 
Consolidated statements of earnings
Consolidated statements of money flows
Consolidated income distribution by areas of operation and by geographical areas

This press launch could include ahead–trying statements (throughout the that means of Part 27A of the Securities Act of 1933, as amended, Part 21E of the Securities Change Act of 1934, as amended and the Israeli Securities Regulation, 1968) relating to Elbit Methods Ltd. and/or its subsidiaries (collectively the Firm), to the extent such statements don’t relate to historic or present information. Ahead-looking statements are primarily based on administration’s present expectations, estimates, projections and assumptions about future occasions. Ahead–trying statements are made pursuant to the secure harbor provisions of the Personal Securities Litigation Reform Act of 1995, as amended. These statements should not ensures of future efficiency and contain sure dangers, uncertainties and assumptions in regards to the Firm, that are tough to foretell, together with projections of the Firm’s future monetary outcomes, its anticipated development methods and anticipated tendencies in its enterprise. Due to this fact, precise future outcomes, efficiency and tendencies could differ materially from these ahead–trying statements because of quite a lot of components, together with, with out limitation: scope and size of buyer contracts; governmental laws and approvals; modifications in governmental budgeting priorities; basic market, political and financial situations within the international locations during which the Firm operates or sells, together with Israel and the US amongst others; modifications in world well being and macro-economic situations; variations in anticipated and precise program efficiency, together with the power to carry out underneath long-term fixed-price contracts; modifications within the aggressive setting; and the end result of authorized and/or regulatory proceedings. The components listed above should not all-inclusive, and additional info is contained in Elbit Methods Ltd.’s newest annual report on Type 20-F, which is on file with the U.S. Securities and Change Fee. All ahead–trying statements communicate solely as of the date of this launch.

Though the Firm believes the expectations mirrored within the forward-looking statements contained herein are affordable, it can’t assure future outcomes, degree of exercise, efficiency or achievements. Furthermore, neither the Firm nor every other individual assumes accountability for the accuracy and completeness of any of those forward-looking statements. The Firm doesn’t undertake to replace its forward-looking statements.

Elbit Methods Ltd., its emblem, model, product, service and course of names showing on this Press Launch are the logos or service marks of Elbit Methods Ltd. or its affiliated firms. All different model, product, service and course of names showing are the logos of their respective holders. Reference to or use of a product, service or course of apart from these of Elbit Methods Ltd. doesn’t suggest suggestion, approval, affiliation or sponsorship of that product, service or course of by Elbit Methods Ltd. Nothing contained herein shall be construed as conferring by implication, estoppel or in any other case any license or proper underneath any patent, copyright, trademark or different mental property proper of Elbit Methods Ltd. or any third social gathering, besides as expressly granted herein.

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SOURCE Elbit Methods Ltd.