Elbit Systems in Q1 2018: Order Backlog at $8B; Revenues at $819M
Revenues in the first quarter of 2018 were $818.5 million, as compared to $749.2 million in the first quarter of 2017. The growth in revenues was driven by sales from the increased backlog and by the adoption of the ASC 606 revenue recognition standard
IsraelDefense
| 29/05/2018
Photo: Eyal Bugoslavsky
Elbit Systems reported today (Tuesday) its consolidated results for the quarter ended March 31, 2018.
“We are pleased with our start to 2018, especially with the solid increase in our backlog, which grew 14% year over year,” said Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems. “Defense budgets in many of our target markets remain strong. We also continue to see good revenue diversification, based both on our geographic spread as well as by areas of operation. These factors support the potential for top-line growth in both the short and the long term. Our continued organic growth, combined with our strategy of acquiring synergistic related businesses, support our position as an increasingly competitive global provider of technologically advanced defense and homeland security solutions.”
First Quarter 2018 Results
Revenues in the first quarter of 2018 were $818.5 million, as compared to $749.2 million in the first quarter of 2017. The growth in revenues in the first quarter of 2018 was driven by sales from the increased backlog and by the adoption of the ASC 606 revenue recognition standard.
Non-GAAP gross profit amounted to $239.8 million (29.3% of revenues) in the first quarter of 2018, as compared to $226.8 million (30.3% of revenues) in the first quarter of 2017. GAAP gross profit in the first quarter of 2018 was $235.4 million (28.8% of revenues), as compared to $221.2 million (29.5% of revenues) in the first quarter of 2017.
Research and development expenses, net were $68.2 million (8.3% of revenues) in the first quarter of 2018, as compared to $58.4 million (7.8% of revenues) in the first quarter of 2017.
Marketing and selling expenses, net were $68.2 million (8.3% of revenues) in the first quarter of 2018, as compared to $65.8 million (8.8% of revenues) in the first quarter of 2017.
General and administrative expenses, net were $35.7 million (4.4% of revenues) in the first quarter of 2018, as compared to $38.7 million (5.2% of revenues) in the first quarter of 2017.
Non-GAAP operating income was $69.4 million (8.5% of revenues) in the first quarter of 2018, as compared to $65.5 million (8.7% of revenues) in the first quarter of 2017. GAAP operating income in the first quarter of 2018 was $63.3 million (7.7% of revenues), as compared to $58.2 million (7.8% of revenues) in the first quarter of 2017.
Financial expenses, net were $10.2 million in the first quarter of 2018, as compared to $8.6 million in the first quarter of 2017.
Taxes on income were $6.4 million (effective tax rate of 12.0%) in the first quarter of 2018, as compared to $5.3 million (effective tax rate of 10.6%) in the first quarter of 2017. The effective tax rate is affected by the mix of the tax rates in the various jurisdictions in which the Company's entities generate taxable income.
Equity in net earnings of affiliated companies and partnerships was $3.1 million (0.4% of revenues) in the first quarter of 2018, as compared to $1.6 million (0.2% of revenues) in the first quarter of 2017.
Net income attributable to non-controlling interests was $0.2 million in the first quarter of 2018, as compared to $0.3 million in the first quarter of 2017.
Non-GAAP net income attributable to the Company's shareholders in the first quarter of 2018 was $54.9 million (6.7% of revenues), as compared to $51.7 million (6.9% of revenues) in the first quarter of 2017. GAAP net income in the first quarter of 2018 was $49.6 million (6.1% of revenues), as compared to $45.6 million (6.1% of revenues) in the first quarter of 2017.
Non-GAAP diluted net earnings per share attributable to the Company's shareholders were $1.28 for the first quarter of 2018, as compared to $1.21 for the first quarter of 2017. GAAP diluted earnings per share in the first quarter of 2018 were $1.16, as compared to $1.07 for the first quarter of 2017.
The Company’s backlog of orders for the quarter ended March 31, 2018, totaled $8,046 million, as compared to $7,067 million as of March 31, 2017. Approximately 74% of the current backlog is attributable to orders from outside Israel. Approximately 60% of the current backlog is scheduled to be performed during 2018 and 2019.
Operating cash flow used in the quarter ended March 31, 2018, was $147.9 million, as compared to $51.3 million in the quarter ended March 31, 2017.
Recent Events
On April 11, 2018, the company announced that it completed the acquisition of the assets and operations of the privately-owned US Company Universal Avionics Systems Corporation for a purchase price of approximately $120 million.
Revenues in the first quarter of 2018 were $818.5 million, as compared to $749.2 million in the first quarter of 2017. The growth in revenues was driven by sales from the increased backlog and by the adoption of the ASC 606 revenue recognition standard
Photo: Eyal Bugoslavsky
Elbit Systems reported today (Tuesday) its consolidated results for the quarter ended March 31, 2018.
“We are pleased with our start to 2018, especially with the solid increase in our backlog, which grew 14% year over year,” said Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems. “Defense budgets in many of our target markets remain strong. We also continue to see good revenue diversification, based both on our geographic spread as well as by areas of operation. These factors support the potential for top-line growth in both the short and the long term. Our continued organic growth, combined with our strategy of acquiring synergistic related businesses, support our position as an increasingly competitive global provider of technologically advanced defense and homeland security solutions.”
First Quarter 2018 Results
Revenues in the first quarter of 2018 were $818.5 million, as compared to $749.2 million in the first quarter of 2017. The growth in revenues in the first quarter of 2018 was driven by sales from the increased backlog and by the adoption of the ASC 606 revenue recognition standard.
Non-GAAP gross profit amounted to $239.8 million (29.3% of revenues) in the first quarter of 2018, as compared to $226.8 million (30.3% of revenues) in the first quarter of 2017. GAAP gross profit in the first quarter of 2018 was $235.4 million (28.8% of revenues), as compared to $221.2 million (29.5% of revenues) in the first quarter of 2017.
Research and development expenses, net were $68.2 million (8.3% of revenues) in the first quarter of 2018, as compared to $58.4 million (7.8% of revenues) in the first quarter of 2017.
Marketing and selling expenses, net were $68.2 million (8.3% of revenues) in the first quarter of 2018, as compared to $65.8 million (8.8% of revenues) in the first quarter of 2017.
General and administrative expenses, net were $35.7 million (4.4% of revenues) in the first quarter of 2018, as compared to $38.7 million (5.2% of revenues) in the first quarter of 2017.
Non-GAAP operating income was $69.4 million (8.5% of revenues) in the first quarter of 2018, as compared to $65.5 million (8.7% of revenues) in the first quarter of 2017. GAAP operating income in the first quarter of 2018 was $63.3 million (7.7% of revenues), as compared to $58.2 million (7.8% of revenues) in the first quarter of 2017.
Financial expenses, net were $10.2 million in the first quarter of 2018, as compared to $8.6 million in the first quarter of 2017.
Taxes on income were $6.4 million (effective tax rate of 12.0%) in the first quarter of 2018, as compared to $5.3 million (effective tax rate of 10.6%) in the first quarter of 2017. The effective tax rate is affected by the mix of the tax rates in the various jurisdictions in which the Company's entities generate taxable income.
Equity in net earnings of affiliated companies and partnerships was $3.1 million (0.4% of revenues) in the first quarter of 2018, as compared to $1.6 million (0.2% of revenues) in the first quarter of 2017.
Net income attributable to non-controlling interests was $0.2 million in the first quarter of 2018, as compared to $0.3 million in the first quarter of 2017.
Non-GAAP net income attributable to the Company's shareholders in the first quarter of 2018 was $54.9 million (6.7% of revenues), as compared to $51.7 million (6.9% of revenues) in the first quarter of 2017. GAAP net income in the first quarter of 2018 was $49.6 million (6.1% of revenues), as compared to $45.6 million (6.1% of revenues) in the first quarter of 2017.
Non-GAAP diluted net earnings per share attributable to the Company's shareholders were $1.28 for the first quarter of 2018, as compared to $1.21 for the first quarter of 2017. GAAP diluted earnings per share in the first quarter of 2018 were $1.16, as compared to $1.07 for the first quarter of 2017.
The Company’s backlog of orders for the quarter ended March 31, 2018, totaled $8,046 million, as compared to $7,067 million as of March 31, 2017. Approximately 74% of the current backlog is attributable to orders from outside Israel. Approximately 60% of the current backlog is scheduled to be performed during 2018 and 2019.
Operating cash flow used in the quarter ended March 31, 2018, was $147.9 million, as compared to $51.3 million in the quarter ended March 31, 2017.
Recent Events
On April 11, 2018, the company announced that it completed the acquisition of the assets and operations of the privately-owned US Company Universal Avionics Systems Corporation for a purchase price of approximately $120 million.
