Elbit Systems reports second quarter 2007 results
Innovative defense contractor acquires Tadira Communication, shows 36 percent revenue growth over second quarter 2006
Readers would know that we keep an eye on Haifa, Israel-based international defense company Elbit Systems. Two days ago reported its consolidated results for the second quarter ending 30 June 2007. Among the highlights:
* On 26 April 2007 the company completed the acquisition of the outstanding shares of Tadiran Communications. On 12 July 2007 Elbit reported that it anticipated the acquisition related expenses in the second quarter to be within a range of $25-30 million.
* Backlog of orders as of 30 June 2007 reached a record $4,196 million, compared with $3,786 million as of 31 December 2006. 73 percent of the backlog is for sales outside Israel, and approximately 61 percent of the backlog is scheduled to be performed by the end of 2008. The majority of the balance is scheduled to be performed in 2009 and 2010.
* Consolidated revenues for the second quarter of 2007 increased by 36 percent to $468.2 million, from $344.8 million in the second quarter of 2006.
* Reported gross profit for the second quarter of 2007 increased by 30 percent to $116.5 million (24.9 percent of revenues), as compared with gross profit of $89.6 million (26.0 percent of revenues) in the second quarter of 2006. Gross profit for the quarter included the $10.5 million restructuring charge relating to the completed acquisition of Tadiran. Excluding this charge, gross profit in the second quarter of 2007 increased by 42 percent to $127.0 million (27.1 percent of revenues).
* Reported consolidated net loss for the second quarter of 2007, including the $27.1 million ($24.4 million net) in expenses recorded in relation with the completed acquisition of Tadiran, was $0.7 million, compared with a net income of $15.1 million (4.4 percent of revenues) in the second quarter of 2006. Loss per diluted share for the second quarter of 2007 was $0.02, as compared with earnings per diluted share of $0.36 for the second quarter of 2006. Consolidated net income for the second quarter of 2007, excluding the IPR&D write-off and restructuring expenses was $23.7 million, or $0.56 per diluted share.
* Operating Cash flow generated during the first six months of the year reached a record $129.7 million.
The president and CEO of Elbit Systems, Joseph Ackerman, commented: “We are pleased to report another quarter of growth that is highlighted by record backlog and cash flow. I would like to underline our organic growth that amounted to more than 20% and made a substantial contribution to our overall growth of 36% following the acquisition of Tadiran. We have found that Tadiran has highly professional and talented employees, advanced technologies and a strong presence in the worldwide market. We believe the combined company will quickly evolve into a world leader in the areas of ground systems, communications and C4I. Together with our integration of Tadiran, and based upon the Group’s highly qualified and dedicated personnel, strong global presence, growing backlog, continued investment in R&D and solid cash flow, we are confident of our continued success for the future”.
