Israeli defense company Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) reported its third quarter results this morning.
Revenue in the third quarter of 2016 totaled $780.8 million, which compares with $764.8 million in the third quarter of 2015.
On non-GAAP basis, the company posted a gross profit of $238.1 million (30.5% of revenue) in the third quarter of 2016, which compares with $233.5 million (again 30.5% of revenue) in the third quarter of 2015. On a GAAP basis, gross profit in the third quarter of 2016 was $230.4 million (29.5% of revenue), which compares with $223.3 million (29.2% of revenue) in the third quarter of 2015.
Non-GAAP net profit attributable to the company's shareholders in the third quarter of 2016 was $62.5 million (8.0% of revenue), which compares with $62.3 million (8.1% of revenue) in the third quarter of 2015. On a GAAP basis, net profit in the third quarter of 2016 was $63.4 million (8.1% of revenue), which compares with $49.7 million (6.5% of revenue) in the third quarter of 2015.
Non-GAAP diluted net earnings per share attributable to the company's shareholders were $1.46 for the third quarter of 2016, which compares with $1.46 for the third quarter of 2015.
GAAP diluted earnings per share in the third quarter of 2016 were $1.48, which compares with $1.16 for the third quarter of 2015.
Net research and development expenditure was $65.6 million (8.4% of revenue) in the third quarter of 2016, which compares with $61.0 million (8.0% of revenue) in the third quarter of 2015.
Non-GAAP operating income was $77.9 million (10.0% of revenue) in the third quarter of 2016, which compares with $80.3 million (10.5% of revenue) in the third quarter of 2015. GAAP operating income in the third quarter of 2016 was $78.3 million (10.0% of revenues), which compares with $65.3 million (8.5% of revenue) in the third quarter of 2015. Financial expenses, net were $7.3 million in the third quarter of 2016, which compares with $6.1 million in the third quarter of 2015.
The company’s backlog of orders at the end of the third quarter totaled $6.84 billion, which compares with $6.42 at the end of the corresponding quarter. Approximately 69% of the current backlog is attributable to orders from outside Israel. Approximately 48% of the current backlog is scheduled to be performed during 2016 and 2017.
Operating cash flow used in the first nine months of 2016 was $32.4 million, which compares with $255.7 million provided in the corresponding period of 2015. Elbit said that the deficit in operating cash flow in 2016 was mainly a result of delay in receipts of cash payments from customers, adding that it did not see risk in receiving these payments.
Elbit has declared a dividend of $0.40 per share on its third quarter earnings.
Elbit Systems president and CEO Bezhalel (Butzi) Machlis said, "We are pleased with our financial results for the quarter, demonstrating growth and an improvement in profit. Our year-over-year increase in backlog of over six percent supports our ongoing revenue growth, as we have demonstrated in the first three quarters of this year.
"Additionally, we recorded a gain, for the second time this year, from a commercial spin-off business. This is a result of our efforts to adapt some of our technologies for civilian applications, around which we build viable companies. We look forward to reaping the fruits of these initiatives over the coming years."
Published by Globes [online], Israel business news - www.globes-online.com - on November 17, 2016
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