Elbit in 2017: Backlog of Orders at $7.6B, Revenues of $3.38B
Elbit Systems reported its fourth quarter and full year 2017 results. The leading contributors to the increase in revenues were the airborne systems and C4ISR systems areas of operation
IsraelDefense
| 20/03/2018
Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems (Photo: Meir Azulay)
Elbit Systems reported today its consolidated results for the fourth quarter and full year ended December 31, 2017.
"From both a financial and a strategic perspective, 2017 was another good year for Elbit Systems," said Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems. "Moreover, we ended the year on a high note, surpassing one billion dollars of revenue in a quarter for the first time in our history. The business environment in which we operate is robust. We are seeing a number of defense budgets globally on the rise, with the areas in which we focus receiving increased priority. Our business is geographically diverse, divided fairly evenly among North America, Europe, Israel and Asia-Pacific, providing an additional element of stability to our business.
"We are particularly pleased with the continued increase in our backlog, whose year-end level is up 11% versus last year, and which contains a higher portion of longer-term projects than in recent years. The continued backlog growth we have witnessed over the past few quarters translated into fourth quarter revenue growth of 6% year-over-year. All this has enhanced Elbit Systems’ position as a leading global provider of technologically advanced defense and homeland security solutions," Machlis added.
Results for Full Year 2017
Revenues for the year ended December 31, 2017, were $3,377.8 million, as compared to $3,260.2 million in the year ended December 31, 2016.
The leading contributors to the Company's revenues were the airborne systems and C4ISR systems areas of operation. The decrease in revenues in the C4ISR area of operation was primarily due to a decline in sales of command and control systems and unmanned aircraft systems (UAS) in Latin America. Revenues from land systems increased primarily due to an increase in sales of land electronic warfare systems and armored vehicle systems in Europe. Revenues in electro-optic systems increased mainly due to an increase in sales of reconnaissance systems and night vision systems in Asia-Pacific and directional infrared countermeasure (DIRCM) systems in the other geographic regions.
On a geographic basis, the increase in Europe was mainly a result of higher sales of armored vehicle systems and radio systems. The decrease in Asia-Pacific was mainly a result of lower sales of tank fire control systems and UAS. The decrease in Latin America was mainly a result of decreased sales of command and control systems. The increase in the “Other” geographical region was mainly due to an increase in sales of UAS and DIRCM systems.
Cost of revenues for the year ended December 31, 2017, was $2,379.9 million (70.5% of revenues), as compared to $2,300.6 million (70.6% of revenues) in the year ended December 31, 2016.
Non-GAAP gross profit for the year ended December 31, 2017, was $1,020.1 million (30.2% of revenues), as compared to $990.8 million (30.4% of revenues) in the year ended December 31, 2016. GAAP gross profit in 2017 was $997.9 million (29.5% of revenues), as compared to $959.6 million (29.4% of revenues) in 2016.
Research and development expenses, net, for the year ended December 31, 2017, were $265.1 million (7.8% of revenues), as compared to $255.8 million (7.8% of revenues) in the year ended December 31, 2016.
Marketing and selling expenses, net, for the year ended December 31, 2017, were $280.2 million (8.3% of revenues), as compared to $271.0 million (8.3% of revenues) in the year ended December 31, 2016.
General and administrative expenses, net, for the year ended December 31, 2017, were $133.3 million (3.9% of revenues), as compared to $151.4 million (4.6% of revenues) in the year ended December 31, 2016. The significant decrease in general and administrative expenses in 2017 was mainly a result of the revaluation of liabilities related to assets and activities acquired in prior years, net of an increase in wages and benefits as a result of the changes in the NIS-U.S. dollar exchange rate.
Other operating income, net, for the year ended December 31, 2016, amounted to $17.6 million. This was the result of net gains related to valuation of shares in two of our Israeli subsidiaries in the energy and automotive areas, due to third-party investments.
Non-GAAP operating income for the year ended December 31, 2017, was $347.9 million (10.3% of revenues), as compared to $322.6 million (9.9% of revenues) in the year ended December 31, 2016. GAAP operating income in 2017 was $319.3 million (9.5% of revenues), as compared to $299.0 million (9.2% of revenues) in 2016.
The main reasons for the improvement in the operating income in 2017 were the increase in the gross profit as compared to 2016 and the decrease in 2017 in general and administrative expenses as a result of the revaluation of liabilities related to assets and activities acquired in prior years.
Other income, net, for the year ended December 31, 2016, amounted to $4.0 million. This was due to a capital gain related to the sale of real estate acquired in prior years.
Financial expenses, net, for the year ended December 31, 2017, were $34.5 million, as compared to $23.7 million in the year ended December 31, 2016. Financial expenses in 2017 were relatively high, mainly due to losses from exchange rate differences. The 2016 financial expenses were lower due to gains from various currencies exchange rates.
Taxes on income for the year ended December 31, 2017, were $55.6 million (effective tax rate of 19.5%), as compared to $45.6 million (effective tax rate of 16.3%) in the year ended December 31, 2016. The effective tax rate was affected by the mix of the tax rates in the various jurisdictions in which the Company's entities generate taxable income. Taxes on income in 2017 included a $10.9 million adjustment to deferred tax assets as a result of the tax reform in the U.S.
Equity in net earnings of affiliated companies and partnerships for the year ended December 31, 2017, was $11.4 million (0.3% of revenues), as compared to $5.2 million (0.2% of revenues) in the year ended December 31, 2016. The increase in 2017 was a result of higher revenues and better profitability in some of our affiliated companies.
Net income attributable to non-controlling interests for the year ended December 31, 2017, was $1.5 million, as compared to $1.9 million in the year ended December 31, 2016.
Non-GAAP net income attributable to the Company's shareholders for the year ended December 31, 2017, was $273.9 million (8.1% of revenues), as compared to $254.2 million (7.8% of revenues) in the year ended December 31, 2016. GAAP net income attributable to the Company's shareholders in the year ended December 31, 2017, was $239.1 million (7.1% of revenues), as compared to $236.9 million (7.3% of revenues) in the year ended December 31, 2016.
Non-GAAP diluted net earnings per share attributable to the Company's shareholders for the year ended December 31, 2017, were $6.41, as compared to $5.95 for the year ended December 31, 2016. GAAP diluted net earnings per share attributable to the Company's shareholders in the year ended December 31, 2017, were $5.59, as compared to $5.54 in the year ended December 31, 2016.
Backlog of orders for the year ended December 31, 2017, totaled $7,647 million, as compared to $6,909 million as of December 31, 2016. Approximately 73% of the current backlog is attributable to orders from outside Israel. Approximately 65% of the current backlog is scheduled to be performed during 2018 and 2019.
Operating cash flow for the year ended December 31, 2017, was $100.9 million, as compared to $208.0 million in the year ended December 31, 2016. The lower level of operating cash flow in 2017 was mainly a result of lower collection of receipts from customers.
Results for Q4 2017
Revenues in the fourth quarter of 2017 were $1,009.6 million, as compared to $953.7 million in the fourth quarter of 2016.
Non-GAAP gross profit amounted to $288.7 million (28.6% of revenues) in the fourth quarter of 2017, as compared to $288.5 million (30.3% of revenues) in the fourth quarter of 2016. GAAP gross profit in the fourth quarter of 2017 was $283.5 million (28.1% of revenues), as compared to $280.8 million (29.4% of revenues) in the fourth quarter of 2016. The decline in the gross profit rate was mainly as a result of the mix of programs sold in the quarter.
Research and development expenses, net, were $72.5 million (7.2% of revenues) in the fourth quarter of 2017, as compared to $67.0 million (7.0% of revenues) in the fourth quarter of 2016.
Marketing and selling expenses, net, were $81.2 million (8.0% of revenues) in the fourth quarter of 2017, as compared to $88.8 million (9.3% of revenues) in the fourth quarter of 2016.
General and administrative expenses, net, were $26.2 million (2.6% of revenues) in the fourth quarter of 2017, as compared to $37.6 million (3.9% of revenues) in the fourth quarter of 2016. The significant decrease in general and administrative expenses in the fourth quarter of 2017 resulted mainly from a revaluation of liabilities related to assets and activities acquired in prior years.
Non-GAAP operating income was $110.5 million (10.9% of revenues) in the fourth quarter of 2017, as compared to $97.3 million (10.2% of revenues) in the fourth quarter of 2016. GAAP operating income in the fourth quarter of 2017 was $103.6 million (10.3% of revenues), as compared to $87.5 million (9.2% of revenues) in the fourth quarter of 2016.
Financial expenses, net, were $9.7 million in the fourth quarter of 2017, as compared to $9.2 million in the fourth quarter of 2016.
Taxes on income were $25.4 million in the fourth quarter of 2017, as compared to $9.8 million in the fourth quarter of 2016. Taxes in the fourth quarter of 2017 included a $10.9 million adjustment to deferred tax assets as a result of the tax reform in the U.S. Taxes in the fourth quarter of 2016 were somewhat lower than typical, mainly due to settlements of tax audits for prior years.
Equity in net earnings of affiliated companies and partnerships was $1.4 million in the fourth quarter of 2017, as compared to a net loss of $0.6 million in the fourth quarter of 2016.
Net income attributable to non-controlling interests was $0.5 million in the fourth quarter of 2017, as compared to $0.7 million in the fourth quarter of 2016.
Non-GAAP net income attributable to the Company's shareholders in the fourth quarter of 2017 was $86.1 million (8.5% of revenues), as compared to $77.7 million (8.2% of revenues) in the fourth quarter of 2016. GAAP net income attributable to the Company's shareholders in the fourth quarter of 2017 was $69.4 million (6.9% of revenues), as compared to $67.1 million (7.0% of revenues) in the fourth quarter of 2016.
Non-GAAP diluted net earnings per share attributable to the Company's shareholders were $2.01 for the fourth quarter of 2017, as compared to $1.82 for the fourth quarter of 2016. GAAP diluted earnings per share attributable to the Company's shareholders in the fourth quarter of 2017 were $1.62, as compared to $1.57 in the fourth quarter of 2016.
IMI Transaction
During 2017 and the beginning of 2018, the Company participated as a potential purchaser in the tender process administered by the Israeli government for the sale of IMI Systems (formerly Israel Military Industries Ltd.). On March 11, 2018, the Israel Treasury Ministry announced the approval of its Committee for the Sale of State Shares to sell IMI Systems to the Company. Further to the Company’s response to press reports on February 14, 2018, the Company is continuing the discussions with the Israeli Government regarding the conditions to complete the transaction.
Recent Events
On March 14, 2018, the Company announced that it was awarded a $65 million contract by an Asian-Pacific country to provide a comprehensive Search and Rescue solution. The project will be performed over a three-year period.
On February 14, 2018, the Company announced that further to reports in the press, the discussions with the Israeli Government in regard to the acquisition of IMI Systems are ongoing. If and when the conditions are fulfilled for completing the transaction, the Company will make an announcement as required by law.
On January 25, 2018, the Company announced that its subsidiary, Elbit Systems of Australia Pty Ltd., was awarded a $150 million contract by the Australian Department of Defense's Capability Acquisition and Sustainment Group to provide Through Life Support services to the Australian Defense Force for the Battle Management System Command and Control. The contract is for a five-year base period. Optional extensions of up to seven years may be exercised in the future.
On January 18, 2018, the Company announced that it was awarded an approximately $85 million contract from a European country to supply a range of advanced ground-based electronic warfare and signal intelligence systems. The contract will be performed over a four-year period.
On January 4, 2018, 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 December 20, 2017, the Company announced that its subsidiary, Elbit Systems of America LLC, through its wholly-owned subsidiary M7 Aerospace LP, was awarded a contract from DynCorp International Inc. to provide Life Cycle Contractor Support for the U.S. Army’s C-26 and UC-35 aircraft fleet. The award is for a one-year base period of up to $25 million and additional five single year option periods. If all options are exercised, the total contract value will be up to $176 million.
On December 19, 2017, the Company announced that it was awarded a follow-on $46 million contract to supply additional J-Music™ DIRCM self-protection systems to NATO, for its Airbus A330 Multinational Multi-Role Tanker Transport Fleet Program. The contract will be performed over a four-year period.
On December 6, 2017, the Company announced that it was selected by the Israeli Ministry of Defense to provide and operate flight simulators for the upgraded C-130H and C-130J transport aircraft of the Israeli Air Force. The contract value is in an amount of $74 million for a thirteen-year period, which includes a setup phase of approximately three years and a ten-year operating period.
Elbit Systems reported its fourth quarter and full year 2017 results. The leading contributors to the increase in revenues were the airborne systems and C4ISR systems areas of operation
Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems (Photo: Meir Azulay)
Elbit Systems reported today its consolidated results for the fourth quarter and full year ended December 31, 2017.
"From both a financial and a strategic perspective, 2017 was another good year for Elbit Systems," said Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems. "Moreover, we ended the year on a high note, surpassing one billion dollars of revenue in a quarter for the first time in our history. The business environment in which we operate is robust. We are seeing a number of defense budgets globally on the rise, with the areas in which we focus receiving increased priority. Our business is geographically diverse, divided fairly evenly among North America, Europe, Israel and Asia-Pacific, providing an additional element of stability to our business.
"We are particularly pleased with the continued increase in our backlog, whose year-end level is up 11% versus last year, and which contains a higher portion of longer-term projects than in recent years. The continued backlog growth we have witnessed over the past few quarters translated into fourth quarter revenue growth of 6% year-over-year. All this has enhanced Elbit Systems’ position as a leading global provider of technologically advanced defense and homeland security solutions," Machlis added.
Results for Full Year 2017
Revenues for the year ended December 31, 2017, were $3,377.8 million, as compared to $3,260.2 million in the year ended December 31, 2016.
The leading contributors to the Company's revenues were the airborne systems and C4ISR systems areas of operation. The decrease in revenues in the C4ISR area of operation was primarily due to a decline in sales of command and control systems and unmanned aircraft systems (UAS) in Latin America. Revenues from land systems increased primarily due to an increase in sales of land electronic warfare systems and armored vehicle systems in Europe. Revenues in electro-optic systems increased mainly due to an increase in sales of reconnaissance systems and night vision systems in Asia-Pacific and directional infrared countermeasure (DIRCM) systems in the other geographic regions.
On a geographic basis, the increase in Europe was mainly a result of higher sales of armored vehicle systems and radio systems. The decrease in Asia-Pacific was mainly a result of lower sales of tank fire control systems and UAS. The decrease in Latin America was mainly a result of decreased sales of command and control systems. The increase in the “Other” geographical region was mainly due to an increase in sales of UAS and DIRCM systems.
Cost of revenues for the year ended December 31, 2017, was $2,379.9 million (70.5% of revenues), as compared to $2,300.6 million (70.6% of revenues) in the year ended December 31, 2016.
Non-GAAP gross profit for the year ended December 31, 2017, was $1,020.1 million (30.2% of revenues), as compared to $990.8 million (30.4% of revenues) in the year ended December 31, 2016. GAAP gross profit in 2017 was $997.9 million (29.5% of revenues), as compared to $959.6 million (29.4% of revenues) in 2016.
Research and development expenses, net, for the year ended December 31, 2017, were $265.1 million (7.8% of revenues), as compared to $255.8 million (7.8% of revenues) in the year ended December 31, 2016.
Marketing and selling expenses, net, for the year ended December 31, 2017, were $280.2 million (8.3% of revenues), as compared to $271.0 million (8.3% of revenues) in the year ended December 31, 2016.
General and administrative expenses, net, for the year ended December 31, 2017, were $133.3 million (3.9% of revenues), as compared to $151.4 million (4.6% of revenues) in the year ended December 31, 2016. The significant decrease in general and administrative expenses in 2017 was mainly a result of the revaluation of liabilities related to assets and activities acquired in prior years, net of an increase in wages and benefits as a result of the changes in the NIS-U.S. dollar exchange rate.
Other operating income, net, for the year ended December 31, 2016, amounted to $17.6 million. This was the result of net gains related to valuation of shares in two of our Israeli subsidiaries in the energy and automotive areas, due to third-party investments.
Non-GAAP operating income for the year ended December 31, 2017, was $347.9 million (10.3% of revenues), as compared to $322.6 million (9.9% of revenues) in the year ended December 31, 2016. GAAP operating income in 2017 was $319.3 million (9.5% of revenues), as compared to $299.0 million (9.2% of revenues) in 2016.
The main reasons for the improvement in the operating income in 2017 were the increase in the gross profit as compared to 2016 and the decrease in 2017 in general and administrative expenses as a result of the revaluation of liabilities related to assets and activities acquired in prior years.
Other income, net, for the year ended December 31, 2016, amounted to $4.0 million. This was due to a capital gain related to the sale of real estate acquired in prior years.
Financial expenses, net, for the year ended December 31, 2017, were $34.5 million, as compared to $23.7 million in the year ended December 31, 2016. Financial expenses in 2017 were relatively high, mainly due to losses from exchange rate differences. The 2016 financial expenses were lower due to gains from various currencies exchange rates.
Taxes on income for the year ended December 31, 2017, were $55.6 million (effective tax rate of 19.5%), as compared to $45.6 million (effective tax rate of 16.3%) in the year ended December 31, 2016. The effective tax rate was affected by the mix of the tax rates in the various jurisdictions in which the Company's entities generate taxable income. Taxes on income in 2017 included a $10.9 million adjustment to deferred tax assets as a result of the tax reform in the U.S.
Equity in net earnings of affiliated companies and partnerships for the year ended December 31, 2017, was $11.4 million (0.3% of revenues), as compared to $5.2 million (0.2% of revenues) in the year ended December 31, 2016. The increase in 2017 was a result of higher revenues and better profitability in some of our affiliated companies.
Net income attributable to non-controlling interests for the year ended December 31, 2017, was $1.5 million, as compared to $1.9 million in the year ended December 31, 2016.
Non-GAAP net income attributable to the Company's shareholders for the year ended December 31, 2017, was $273.9 million (8.1% of revenues), as compared to $254.2 million (7.8% of revenues) in the year ended December 31, 2016. GAAP net income attributable to the Company's shareholders in the year ended December 31, 2017, was $239.1 million (7.1% of revenues), as compared to $236.9 million (7.3% of revenues) in the year ended December 31, 2016.
Non-GAAP diluted net earnings per share attributable to the Company's shareholders for the year ended December 31, 2017, were $6.41, as compared to $5.95 for the year ended December 31, 2016. GAAP diluted net earnings per share attributable to the Company's shareholders in the year ended December 31, 2017, were $5.59, as compared to $5.54 in the year ended December 31, 2016.
Backlog of orders for the year ended December 31, 2017, totaled $7,647 million, as compared to $6,909 million as of December 31, 2016. Approximately 73% of the current backlog is attributable to orders from outside Israel. Approximately 65% of the current backlog is scheduled to be performed during 2018 and 2019.
Operating cash flow for the year ended December 31, 2017, was $100.9 million, as compared to $208.0 million in the year ended December 31, 2016. The lower level of operating cash flow in 2017 was mainly a result of lower collection of receipts from customers.
Results for Q4 2017
Revenues in the fourth quarter of 2017 were $1,009.6 million, as compared to $953.7 million in the fourth quarter of 2016.
Non-GAAP gross profit amounted to $288.7 million (28.6% of revenues) in the fourth quarter of 2017, as compared to $288.5 million (30.3% of revenues) in the fourth quarter of 2016. GAAP gross profit in the fourth quarter of 2017 was $283.5 million (28.1% of revenues), as compared to $280.8 million (29.4% of revenues) in the fourth quarter of 2016. The decline in the gross profit rate was mainly as a result of the mix of programs sold in the quarter.
Research and development expenses, net, were $72.5 million (7.2% of revenues) in the fourth quarter of 2017, as compared to $67.0 million (7.0% of revenues) in the fourth quarter of 2016.
Marketing and selling expenses, net, were $81.2 million (8.0% of revenues) in the fourth quarter of 2017, as compared to $88.8 million (9.3% of revenues) in the fourth quarter of 2016.
General and administrative expenses, net, were $26.2 million (2.6% of revenues) in the fourth quarter of 2017, as compared to $37.6 million (3.9% of revenues) in the fourth quarter of 2016. The significant decrease in general and administrative expenses in the fourth quarter of 2017 resulted mainly from a revaluation of liabilities related to assets and activities acquired in prior years.
Non-GAAP operating income was $110.5 million (10.9% of revenues) in the fourth quarter of 2017, as compared to $97.3 million (10.2% of revenues) in the fourth quarter of 2016. GAAP operating income in the fourth quarter of 2017 was $103.6 million (10.3% of revenues), as compared to $87.5 million (9.2% of revenues) in the fourth quarter of 2016.
Financial expenses, net, were $9.7 million in the fourth quarter of 2017, as compared to $9.2 million in the fourth quarter of 2016.
Taxes on income were $25.4 million in the fourth quarter of 2017, as compared to $9.8 million in the fourth quarter of 2016. Taxes in the fourth quarter of 2017 included a $10.9 million adjustment to deferred tax assets as a result of the tax reform in the U.S. Taxes in the fourth quarter of 2016 were somewhat lower than typical, mainly due to settlements of tax audits for prior years.
Equity in net earnings of affiliated companies and partnerships was $1.4 million in the fourth quarter of 2017, as compared to a net loss of $0.6 million in the fourth quarter of 2016.
Net income attributable to non-controlling interests was $0.5 million in the fourth quarter of 2017, as compared to $0.7 million in the fourth quarter of 2016.
Non-GAAP net income attributable to the Company's shareholders in the fourth quarter of 2017 was $86.1 million (8.5% of revenues), as compared to $77.7 million (8.2% of revenues) in the fourth quarter of 2016. GAAP net income attributable to the Company's shareholders in the fourth quarter of 2017 was $69.4 million (6.9% of revenues), as compared to $67.1 million (7.0% of revenues) in the fourth quarter of 2016.
Non-GAAP diluted net earnings per share attributable to the Company's shareholders were $2.01 for the fourth quarter of 2017, as compared to $1.82 for the fourth quarter of 2016. GAAP diluted earnings per share attributable to the Company's shareholders in the fourth quarter of 2017 were $1.62, as compared to $1.57 in the fourth quarter of 2016.
IMI Transaction
During 2017 and the beginning of 2018, the Company participated as a potential purchaser in the tender process administered by the Israeli government for the sale of IMI Systems (formerly Israel Military Industries Ltd.). On March 11, 2018, the Israel Treasury Ministry announced the approval of its Committee for the Sale of State Shares to sell IMI Systems to the Company. Further to the Company’s response to press reports on February 14, 2018, the Company is continuing the discussions with the Israeli Government regarding the conditions to complete the transaction.
Recent Events
On March 14, 2018, the Company announced that it was awarded a $65 million contract by an Asian-Pacific country to provide a comprehensive Search and Rescue solution. The project will be performed over a three-year period.
On February 14, 2018, the Company announced that further to reports in the press, the discussions with the Israeli Government in regard to the acquisition of IMI Systems are ongoing. If and when the conditions are fulfilled for completing the transaction, the Company will make an announcement as required by law.
On January 25, 2018, the Company announced that its subsidiary, Elbit Systems of Australia Pty Ltd., was awarded a $150 million contract by the Australian Department of Defense's Capability Acquisition and Sustainment Group to provide Through Life Support services to the Australian Defense Force for the Battle Management System Command and Control. The contract is for a five-year base period. Optional extensions of up to seven years may be exercised in the future.
On January 18, 2018, the Company announced that it was awarded an approximately $85 million contract from a European country to supply a range of advanced ground-based electronic warfare and signal intelligence systems. The contract will be performed over a four-year period.
On January 4, 2018, 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 December 20, 2017, the Company announced that its subsidiary, Elbit Systems of America LLC, through its wholly-owned subsidiary M7 Aerospace LP, was awarded a contract from DynCorp International Inc. to provide Life Cycle Contractor Support for the U.S. Army’s C-26 and UC-35 aircraft fleet. The award is for a one-year base period of up to $25 million and additional five single year option periods. If all options are exercised, the total contract value will be up to $176 million.
On December 19, 2017, the Company announced that it was awarded a follow-on $46 million contract to supply additional J-Music™ DIRCM self-protection systems to NATO, for its Airbus A330 Multinational Multi-Role Tanker Transport Fleet Program. The contract will be performed over a four-year period.
On December 6, 2017, the Company announced that it was selected by the Israeli Ministry of Defense to provide and operate flight simulators for the upgraded C-130H and C-130J transport aircraft of the Israeli Air Force. The contract value is in an amount of $74 million for a thirteen-year period, which includes a setup phase of approximately three years and a ten-year operating period.
