Israeli Defense company Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) reported its fourth quarter and full year 2015 results this morning. Annual revenue rose to $3.108 billion from $2.958 billion in 2014. Elbit said that the leading contributors to revenue were the airborne systems and C4ISR systems areas of operations. The increase in the land systems area of operation was primarily due to increased revenues from tank fire control systems and electro-optic night vision systems sold to Asia-Pacific. Revenue from C4ISR systems decreased slightly due to decline in sales of command and control systems, mainly for homeland security applications in Latin America.
On a geographic basis, there was a rise in revenue in Asia-Pacific, mainly due to increased sales of tank fire control systems and electro-optic night vision systems to this region. A decrease in Latin America was a result of lower sales of command and control systems, mainly for homeland security applications.
Elbit reported a non-GAAP gross profit of $927.0 million (29.8% of revenue) for 2015, which compares with $846.7 million (28.6% of revenue) in 2014. GAAP gross profit in 2015 was $897.1 million (28.9% of revenues), compared with $825.1 million (27.9% of revenues) in 2014.
Non-GAAP net profit attributable to the company's shareholders for 2015 was $242.4 million (7.8% of revenue), which compares with $201.2 million (6.8% of revenue) in 2014.
On a GAAP basis, net profit attributable to the company's shareholders in 2015 was $202.5 million (6.5% of revenue), which compares with $171.0 million (5.8% of revenue) in 2014.
Non-GAAP diluted net earnings per share attributable to the company's shareholders in 2015 were $5.67, which compares with $4.71 for 2014. GAAP diluted net earnings per share attributable to the company's shareholders in 2015 were $4.74, which compares with $4.01 in 2014.
At the end of 2015, Elbit had a backlog of orders totaling $6.564 billion, compared with $6.265 billion at the end of 2014. Approximately 68% of the current backlog is attributable to orders from outside Israel. Approximately 68% of the current backlog is scheduled to be performed during 2016 and 2017.
Operating cash flow in 2015 was $434.8 million, compared with $177.8 million in 2014. The company said that the increase in operating cash flow was mainly a result of increased collection and advances received from customers.
In the fourth quarter, revenue totaled $886.6 million, which compares with $850.3 million in the fourth quarter of 2014. Non-GAAP net profit attributable to the company's shareholders in the fourth quarter of 2015 was $74.2 million (8.4% of revenue), compared with $52.8 million (6.2% of revenue) in the fourth quarter of 2014. GAAP net profit attributable to the company's shareholders in the fourth quarter of 2015 was $63.0 million (7.1% of revenue), which compares with $44.0 million (5.2% of revenue) in the fourth quarter of 2014.
Non GAAP diluted net earnings per share attributable to the company's shareholders were $1.74 for the fourth quarter of 2015, which compares with $1.24 for the fourth quarter of 2014. GAAP diluted earnings per share attributable to the company's shareholders in the fourth quarter of 2015 were $1.47, compared with $1.03 in the fourth quarter of 2014.
Elbit Systems president and CEO Bezhalel (Butzi) Machlis said, “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 $6.6 billion. 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.
“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.”
Published by Globes [online], Israel business news - www.globes-online.com - on March 22, 2016
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