Elbit Systems in 2016: Backlog of Orders at $6.9 Billion
Annual revenues for the year 2016 amounted to $3.26 billion, as compared to $3.1 billion in 2015. The leading contributors to the revenues were Elbit's airborne systems and C4ISR systems areas of operations
IsraelDefense
| 22/03/2017
Elbit's C-130 Upgrade Suite
Elbit Systems reported today (Wednesday) its consolidated results for the fourth quarter and full year ended December 31, 2016.
Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, commented: “Our fourth quarter results culminate a good year for Elbit Systems. In addition to the increase in revenues, our backlog continued its positive trend in 2016. Thanks to our growth and operating efficiency measures, we were able to increase our investments in R&D and marketing in order to capitalize on many of the opportunities in our markets and still produce a nice improvement in net income, year over year.
"In today’s geopolitical environment, we see increasing demand for our solutions in many markets, and we are pursuing increased opportunities around the world. Based on these opportunities and a growing backlog, we believe that we have the potential for further improvement and growth.”
Full Year 2016 Results:
Revenues for the year ended December 31, 2016, were $3,260.2 million, as compared to $3,107.6 million in the year ended December 31, 2015. The leading contributors to the revenues were the airborne systems and C4ISR systems areas of operations. The increase in the C4ISR systems area of operations was primarily due to an increase in sales of command and control systems and radio systems in Europe, Asia-Pacific and in Israel. Revenues from land systems decreased due to a decline in sales of tank fire control systems to Asia-Pacific.
On a geographic basis, the decrease in Latin America was mainly a result of lower sales of command and control systems for homeland security applications.
The cost of revenues for the year ended December 31, 2016, was $2,300.6 million (70.6% of revenues), as compared to $2,210.5 million (71.1% of revenues) in the year ended December 31, 2015.
Non-GAAP gross profit for the year ended December 31, 2016, was $990.8 million (30.4% of revenues), as compared to $927.0 million (29.8% of revenues) in the year ended December 31, 2015. GAAP gross profit in 2016 was $959.6 million (29.4% of revenues), as compared to $897.1 million (28.9% of revenues) in 2015.
Research and development expenses, net, for the year ended December 31, 2016, were $255.8 million (7.8% of revenues), as compared to $243.4 million (7.8% of revenues) in the year ended December 31, 2015.
Backlog of orders for the year ended December 31, 2016, totaled $6,909 million, as compared to $6,564 million as of December 31, 2015. Approximately 68% of the current backlog is attributable to orders from outside Israel. Approximately 69% of the current backlog is scheduled to be performed during 2017 and 2018.
Operating cash flow for the year ended December 31, 2016, was $208.0 million, as compared to $434.8 million in the year ended December 31, 2015. The higher level of operating cash flow in 2015 was mainly a result of a higher collection of receipts and advances received from customers.
Recent Events:
On November 22, 2016, the Company announced that Item 3 (Approval of Amended Compensation Policy for the Company’s Executive Officers and Directors) (“Item 3”) on the agenda of the Company’s Annual General Meeting scheduled to be held on Wednesday, November 23, 2016 (the “Meeting”), as specified in the Company’s Proxy Statement of October 19, 2016 (the “Proxy Statement”) – was withdrawn in order to allow the Company additional time to consider certain comments received from shareholders or on their behalf with respect to said Item 3 on the Meeting agenda.
On November 23, 2016, the Company announced that its U.S. subsidiary, Elbit Systems of America, LLC was awarded an Indefinite Delivery/Indefinite Quantity (“ID/IQ”) contract for the production of mortar weapon systems. The contract, with a maximum value of up to approximately $103 million, will be performed over a five-year period. An initial purchase order, in an amount that is not material to the Company, was awarded.
On January 3, 2017, the Company announced that it was awarded two contracts from Rafael Advanced Defense Systems Ltd. for the supply of airborne laser designators, in a total value of approximately $35 million. The contracts will be performed over a three-year period, and systems will be supplied by Rafael to two countries in the Asia-Pacific region.
On January 8, 2017, the Company announced that a Brazilian subsidiary, Ares Aeroespacial e Defesa S.A. ("Ares"), was awarded a framework contract, in a total value of approximately $100 million, to supply 12.7/7.62 mm Remote Controlled Weapon Stations (“RCWS”) to the Brazilian Army. The contract includes associated equipment and services. The RCWS, named REMAX, will be supplied over a five-year period. An initial production order, valued at approximately $7.5 million, was received.
On January 12, 2017, 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 2012.
On January 17, 2017, the Company announced that it was awarded a contract to supply multi spectral BrightNite systems to an air force in a NATO country. The contract, in an amount of approximately $17 million, will be performed over a thirty-month period.
On February 6, 2017, the Company announced that its subsidiary Cyberbit Ltd. (“Cyberbit”), was awarded a contract from Ni Cybersecurity Inc., the Japanese cybersecurity service provider, to launch a unique cybersecurity training and simulation center in Tokyo powered by the Cyberbit Range platform.
On February 8, 2017, the Company announced that it was awarded an approximately $110 million contract from an Asia-Pacific country for the upgrade and maintenance of dozens of Mi-17 helicopters. The project will be performed over a five-year period.
On February 9, 2017, the Company announced that its subsidiary, Cyberbit, was awarded a contract from the enterprise software provider Infor (US), Inc. for the supply of Cyberbit’s Endpoint Detection and Response security platform to be used to support Infor’s internal cyber protection. The contract is in an amount that is not material to Elbit Systems.
On February 16, 2017, the Company announced that its subsidiary, Elbit Systems of America LLC. was awarded an ID/IQ contract to provide and field mortar fire control systems for the U.S. Army. The contract was awarded by the U.S. Army Contracting Command, Picatinny Arsenal, New Jersey. If fully ordered, the maximum value of the contract is $102 million to be performed over a five-year period.
Annual revenues for the year 2016 amounted to $3.26 billion, as compared to $3.1 billion in 2015. The leading contributors to the revenues were Elbit's airborne systems and C4ISR systems areas of operations
Elbit Systems reported today (Wednesday) its consolidated results for the fourth quarter and full year ended December 31, 2016.
Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, commented: “Our fourth quarter results culminate a good year for Elbit Systems. In addition to the increase in revenues, our backlog continued its positive trend in 2016. Thanks to our growth and operating efficiency measures, we were able to increase our investments in R&D and marketing in order to capitalize on many of the opportunities in our markets and still produce a nice improvement in net income, year over year.
"In today’s geopolitical environment, we see increasing demand for our solutions in many markets, and we are pursuing increased opportunities around the world. Based on these opportunities and a growing backlog, we believe that we have the potential for further improvement and growth.”
Full Year 2016 Results:
Revenues for the year ended December 31, 2016, were $3,260.2 million, as compared to $3,107.6 million in the year ended December 31, 2015. The leading contributors to the revenues were the airborne systems and C4ISR systems areas of operations. The increase in the C4ISR systems area of operations was primarily due to an increase in sales of command and control systems and radio systems in Europe, Asia-Pacific and in Israel. Revenues from land systems decreased due to a decline in sales of tank fire control systems to Asia-Pacific.
On a geographic basis, the decrease in Latin America was mainly a result of lower sales of command and control systems for homeland security applications.
The cost of revenues for the year ended December 31, 2016, was $2,300.6 million (70.6% of revenues), as compared to $2,210.5 million (71.1% of revenues) in the year ended December 31, 2015.
Non-GAAP gross profit for the year ended December 31, 2016, was $990.8 million (30.4% of revenues), as compared to $927.0 million (29.8% of revenues) in the year ended December 31, 2015. GAAP gross profit in 2016 was $959.6 million (29.4% of revenues), as compared to $897.1 million (28.9% of revenues) in 2015.
Research and development expenses, net, for the year ended December 31, 2016, were $255.8 million (7.8% of revenues), as compared to $243.4 million (7.8% of revenues) in the year ended December 31, 2015.
Backlog of orders for the year ended December 31, 2016, totaled $6,909 million, as compared to $6,564 million as of December 31, 2015. Approximately 68% of the current backlog is attributable to orders from outside Israel. Approximately 69% of the current backlog is scheduled to be performed during 2017 and 2018.
Operating cash flow for the year ended December 31, 2016, was $208.0 million, as compared to $434.8 million in the year ended December 31, 2015. The higher level of operating cash flow in 2015 was mainly a result of a higher collection of receipts and advances received from customers.
Recent Events:
On November 22, 2016, the Company announced that Item 3 (Approval of Amended Compensation Policy for the Company’s Executive Officers and Directors) (“Item 3”) on the agenda of the Company’s Annual General Meeting scheduled to be held on Wednesday, November 23, 2016 (the “Meeting”), as specified in the Company’s Proxy Statement of October 19, 2016 (the “Proxy Statement”) – was withdrawn in order to allow the Company additional time to consider certain comments received from shareholders or on their behalf with respect to said Item 3 on the Meeting agenda.
On November 23, 2016, the Company announced that its U.S. subsidiary, Elbit Systems of America, LLC was awarded an Indefinite Delivery/Indefinite Quantity (“ID/IQ”) contract for the production of mortar weapon systems. The contract, with a maximum value of up to approximately $103 million, will be performed over a five-year period. An initial purchase order, in an amount that is not material to the Company, was awarded.
On January 3, 2017, the Company announced that it was awarded two contracts from Rafael Advanced Defense Systems Ltd. for the supply of airborne laser designators, in a total value of approximately $35 million. The contracts will be performed over a three-year period, and systems will be supplied by Rafael to two countries in the Asia-Pacific region.
On January 8, 2017, the Company announced that a Brazilian subsidiary, Ares Aeroespacial e Defesa S.A. ("Ares"), was awarded a framework contract, in a total value of approximately $100 million, to supply 12.7/7.62 mm Remote Controlled Weapon Stations (“RCWS”) to the Brazilian Army. The contract includes associated equipment and services. The RCWS, named REMAX, will be supplied over a five-year period. An initial production order, valued at approximately $7.5 million, was received.
On January 12, 2017, 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 2012.
On January 17, 2017, the Company announced that it was awarded a contract to supply multi spectral BrightNite systems to an air force in a NATO country. The contract, in an amount of approximately $17 million, will be performed over a thirty-month period.
On February 6, 2017, the Company announced that its subsidiary Cyberbit Ltd. (“Cyberbit”), was awarded a contract from Ni Cybersecurity Inc., the Japanese cybersecurity service provider, to launch a unique cybersecurity training and simulation center in Tokyo powered by the Cyberbit Range platform.
On February 8, 2017, the Company announced that it was awarded an approximately $110 million contract from an Asia-Pacific country for the upgrade and maintenance of dozens of Mi-17 helicopters. The project will be performed over a five-year period.
On February 9, 2017, the Company announced that its subsidiary, Cyberbit, was awarded a contract from the enterprise software provider Infor (US), Inc. for the supply of Cyberbit’s Endpoint Detection and Response security platform to be used to support Infor’s internal cyber protection. The contract is in an amount that is not material to Elbit Systems.
On February 16, 2017, the Company announced that its subsidiary, Elbit Systems of America LLC. was awarded an ID/IQ contract to provide and field mortar fire control systems for the U.S. Army. The contract was awarded by the U.S. Army Contracting Command, Picatinny Arsenal, New Jersey. If fully ordered, the maximum value of the contract is $102 million to be performed over a five-year period.
