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ELBIT SYSTEMS REPORTS SECOND QUARTER 2024 RESULTS

Published

2 years ago

on

Order backlog at $21.1 billion; Revenues of $1.6 billion ; Non-GAAP net income of $93 million; GAAP net income of $78 million ; Non-GAAP net EPS of $2.08; GAAP net EPS of $1.76

HAIFA, Israel, Aug. 14, 2024 /PRNewswire/ — Elbit Systems Ltd. (“Elbit Systems” or the “Company”) (NASDAQ: ESLT) (TASE: ESLT), the international high technology defense company, reported today its consolidated results for the second quarter ended June 30, 2024.

In this release, the Company is providing US-GAAP results as well as non-GAAP financial data, which are intended to provide investors a more comprehensive view of the Company’s business results and trends. For a description of the Company’s non-GAAP definitions see page 4 below, “Non-GAAP financial data”. Unless otherwise stated, all financial data presented is US-GAAP financial data.

Management Comment:

Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, commented:

“Elbit Systems demonstrated a 12% year-over-year increase in revenues in the second quarter. The continuous high demand for our products and solutions reinforces our position as industry leaders. Our long-term investments in technologies, research and development in collaboration with our key customers, and the expansion of our manufacturing capabilities, enable us to meet our commitments to our customers and to drive the continued growth and focus on profitability of the Company, in alignment with our strategic goals. This growth reflects the dedication and commitment of Elbit Systems’ employees in Israel and around the world, who contribute every day to the Company’s success.”

Second quarter 2024 results:

Revenues in the second quarter of 2024 were $1,626.2 million, as compared to $1,453.9 million in the second quarter of 2023.

Aerospace revenues were similar to the revenues in the second quarter of 2023. C4I and Cyber revenues increased by 11% in the second quarter of 2024, as compared to the second quarter of 2023 mainly due to radio systems sales. ISTAR and EW revenues increased by 9% mainly due to Electronic Warfare and Electro-Optic systems sales in Israel and Asia-Pacific. Land revenues increased by 37% due to the increase in ammunition and munition sales in Israel. Elbit Systems of America revenues increased by 11% due to the increase in Maritime and Warfighter systems.

For distribution of revenues by segments and geographic regions see the tables on page 12.

Non-GAAP(*) gross profit amounted to $396.2 million (24.4% of revenues) in the second quarter of 2024, as compared to $379.3 million (26.1% of revenues) in the second quarter of 2023. GAAP gross profit in the second quarter of 2024 was $389.7 million (24.0% of revenues), as compared to $372.2 million (25.6% of revenues) in the second quarter of 2023.

Research and development expenses, net were $116.8 million (7.2% of revenues) in the second quarter of 2024, as compared to $93.4 million (6.4% of revenues) in the second quarter of 2023.

Marketing and selling expenses, net were $87.7 million (5.4% of revenues) in the second quarter of 2024, as compared to $101.7 million (7.0% of revenues) in the second quarter of 2023.

General and administrative expenses, net were $68.7 million (4.2% of revenues) in the second quarter of 2024, as compared to $75.4 million (5.2% of revenues) in the second quarter of 2023.

Non-GAAP(*) operating income was $130.5 million (8.0% of revenues) in the second quarter of 2024, as compared to $115.5 million (7.9% of revenues) in the second quarter of 2023. GAAP operating income in the second quarter of 2024 was $116.5 million (7.2% of revenues), as compared to $101.6 million (7.0% of revenues) in the second quarter of 2023.

Financial expenses, net were $29.1 million in the second quarter of 2024, as compared to $32.1 million in the second quarter of 2023.

Taxes on income were $11.3 million in the second quarter of 2024, as compared to $9.2 million in the second quarter of 2023.

Non-GAAP(*) net income attributable to the Company’s shareholders in the second quarter of 2024 was $92.7 million (5.7% of revenues), as compared to $73.5 million (5.1% of revenues) in the second quarter of 2023. GAAP net income attributable to the Company’s shareholders in the second quarter of 2024 was $78.4 million (4.8% of revenues), as compared to $62.4 million (4.3% of revenues) in the second quarter of 2023.

Non-GAAP(*) diluted net earnings per share attributable to the Company’s shareholders were $2.08 for the second quarter of 2024, as compared to $1.65 for the second quarter of 2023. GAAP diluted earnings per share attributable to the Company’s shareholders in the second quarter of 2024 were $1.76, as compared to $1.40 in the second quarter of 2023.

The Company’s order backlog as of June 30, 2024 totaled $21.1 billion. Approximately 69% of the current backlog is attributable to orders from outside Israel. Approximately 43% of the backlog is scheduled to be performed during the remainder of 2024 and 2025. 

Cash flow provided by operating activities in the six months ended June 30, 2024 was $26.0 million, as compared to cash flow used in operating activities of $210.7 million in the six months ended June 30, 2023. The cash flow in the six months ended June 30, 2024 was affected mainly by the increase in inventories and trade receivables, which was offset by the increase in contract liabilities.

* see page 4

Impact of the “Swords of Iron” War on the Company:

On October 7, 2023, Hamas terrorists infiltrated Israel’s southern border from the Gaza Strip and conducted a series of brutal attacks on civilian and military targets. Hamas also launched extensive rocket attacks on the Israeli population and industrial centers located along Israel’s border with the Gaza Strip and in many other parts of Israel. Israel has also been attacked by other terrorist organizations on different fronts, including from Lebanon, which have prompted military responses from Israel. Following the attacks, the State of Israel declared a state of war, which is ongoing.

Since the commencement of hostilities, Elbit Systems has experienced a material increased demand for our products and solutions from the Israel Ministry of Defense (IMOD) compared to the demand levels prior to the war. We have also increased our support to the IMOD, mainly through deliveries of our systems and the dedicated efforts of our employees. At the same time, the Company continues its activities in the international market including through its local subsidiaries. Subject to further developments, which are difficult to predict, the IMOD’s increased demand for the Company’s products and solutions may continue and could generate material additional orders to the Company.

While the vast majority of our facilities in Israel continue to operate uninterrupted, some of our operations have experienced disruptions due to supply chain and operational constraints, the relocation of certain production lines, evacuation of employees and mobilization of our employees for reserve duty. The number of employees mobilized was approximately 6% as of June 30, 2024, and could fluctuate depending on future developments.

Elbit Systems has taken a number of steps to protect the safety and security of our employees, support our increased production, mitigate potential supply chain disruptions and maintain business continuity, among them relocation of production lines from facilities in areas of the country that have been evacuated to other facilities; recruitment of additional employees; increased monitoring of our global supply chain to identify delays, shortages and bottlenecks; reschedule of deliveries to certain of our customers as necessary; and increase of inventories.

The extent of the effects of the war on the Company’s performance will depend on future developments of the war that are difficult to predict at this time, including its duration and scope. We continue to monitor the situation closely.

* Non-GAAP financial data:

The following non-GAAP financial data, including Adjusted gross profit, Adjusted operating income, Adjusted net income, and Adjusted diluted earnings per share, is presented to enable investors to have additional information on our business performance as well as a further basis for periodical comparisons and trends relating to our financial results. We believe such data provides useful information to investors and analysts by facilitating more meaningful comparisons of our financial results over time. The non-GAAP adjustments exclude amortization expenses of intangible assets related to acquisitions that occurred mainly in prior periods, capital gains related primarily to the sale of investments, restructuring activities, uncompensated costs related to “Swords of Iron” war, non-cash stock based compensation expenses, revaluations of investments in affiliated companies, non-operating foreign exchange gains or losses, one-time tax expenses, and the effect of tax on each of these items. We present these non-GAAP financial measures because management believes they supplement and/or enhance management’s, analysts’ and investors’ overall understanding of the Company’s underlying financial performance and trends and facilitate comparisons among current, past, and future periods.

Specifically, management uses Adjusted gross profit, Adjusted operating income, and Adjusted net income attributable to the Company’s shareholders to measure the ongoing gross profit, operating profit and net income performance of the Company because the measure adjusts for more significant non-recurring items, amortization expenses of intangible assets relating to prior acquisitions, and non-cash expense which can fluctuate year to year.

We believe Adjusted gross profit, Adjusted operating income, and Adjusted net income attributable to the Company’s shareholders are useful to existing shareholders, potential shareholders and other users of our financial information because they provide measures of the Company’s ongoing performance that enable these users to perform trend analysis using comparable data.

Management uses Adjusted diluted earnings per share to evaluate further adjusted net income attributable to the Company’s shareholders while considering changes in the number of diluted shares over comparable periods.

We believe adjusted diluted earnings per share is useful to existing shareholders, potential shareholders and other users of our financial information because it also enables these users to evaluate adjusted net income attributable to Company’s shareholders on a per-share basis.

The non-GAAP measures used by the Company are not based on any comprehensive set of accounting rules or principles. We believe that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations, as determined in accordance with GAAP, and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures.

Investors are cautioned that, unlike financial measures prepared in accordance with GAAP, non-GAAP measures may not be comparable with the calculation of similar measures for other companies. They should consider non-GAAP financial measures in addition to, and not as replacements for or superior to, measures of financial performance prepared in accordance with GAAP.

 

Reconciliation of GAAP to Non-GAAP Supplemental Financial Data:

(US Dollars in millions, except for per share amounts)

 
 

Six
months
ended
June 30,
2024

 

Six
months
ended
June 30,
2023

 

Three
months
ended
June 30,
2024

 

Three
months
ended
June 30,
2023

 

Year
ended
December 31,
2023

GAAP gross profit

$     763.8

 

$     733.7

 

$     389.7

 

$     372.2

 

$ 1,483.0

Adjustments:

 
 
 
 
 
 
 
 
 

Amortization of purchased intangible assets(*)

10.6

 

13.6

 

4.2

 

6.6

 

27.3

Restructuring of a subsidiary’s activities

—

 

—

 

—

 

—

 

17.5

Stock based compensation

0.9

 

1.0

 

0.5

 

0.5

 

1.8

Uncompensated labor costs related to “Swords of Iron” war

4.3

 

—

 

1.8

 

—

 

4.3

Non-GAAP gross profit

$     779.6

 

$     748.3

 

$     396.2

 

$     379.3

 

$ 1,533.9

Percent of revenues

24.5 %

 

26.3 %

 

24.4 %

 

26.1 %

 

25.7 %

 
 
 
 
 
 
 
 
 
 

GAAP operating income

$     221.8

 

$     195.5

 

$     116.5

 

$     101.6

 

$     369.1

Adjustments:

 
 
 
 
 
 
 
 
 

Amortization of purchased intangible assets(*)

18.4

 

21.8

 

8.1

 

10.6

 

43.9

Restructuring of a subsidiary’s activities

—

 

—

 

—

 

—

 

17.5

Stock based compensation

5.7

 

6.8

 

3.3

 

3.3

 

12.1

Uncompensated labor costs related to “Swords of Iron” war

6.2

 

—

 

2.6

 

—

 

6.1

Non-GAAP operating income

$     252.1

 

$     224.1

 

$     130.5

 

$     115.5

 

$     448.7

Percent of revenues

7.9 %

 

7.9 %

 

8.0 %

 

7.9 %

 

7.5 %

 
 
 
 
 
 
 
 
 
 

GAAP net income attributable to Elbit Systems’ shareholders

$     152.0

 

$     124.4

 

$       78.4

 

$       62.4

 

$     215.1

Adjustments:

 
 
 
 
 
 
 
 
 

Amortization of purchased intangible assets(*)

18.4

 

21.8

 

8.1

 

10.6

 

43.9

Restructuring of a subsidiary’s activities

—

 

—

 

—

 

—

 

17.5

Stock based compensation

5.7

 

6.8

 

3.3

 

3.3

 

12.1

Uncompensated labor costs related to “Swords of Iron” war

6.2

 

—

 

2.6

 

—

 

6.1

Revaluation of investment measured under fair value option

7.4

 

—

 

7.4

 

—

 

3.0

Non-operating foreign exchange (gains) losses

(12.3)

 

2.4

 

(4.9)

 

(1.4)

 

12.0

Tax effect and other tax items, net

(4.0)

 

(2.8)

 

(2.2)

 

(1.4)

 

(10.9)

Non-GAAP net income attributable to Elbit Systems’ shareholders

$     173.4

 

$     152.6

 

$       92.7

 

$       73.5

 

$     298.8

Percent of revenues

5.5 %

 

5.4 %

 

5.7 %

 

5.1 %

 

5.0 %

 
 
 
 
 
 
 
 
 
 

GAAP diluted net EPS

$       3.41

 

$       2.79

 

$       1.76

 

$       1.40

 

$       4.82

Adjustments, net

0.48

 

0.63

 

0.32

 

0.25

 

1.88

Non-GAAP diluted net EPS

$       3.89

 

$       3.42

 

$       2.08

 

$       1.65

 

$       6.70

(*) While amortization of acquired intangible assets is excluded from the measures, the revenue of the acquired companies is reflected in the measures and the acquired assets contribute to revenue generation. 

Recent Events:

On June 10, 2024, the Company announced that S&P Global Ratings Maalot Ltd., an Israeli rating agency (“Maalot”), issued its rating report regarding Elbit Systems (the “Rating Report”). In its Rating Report, Maalot reaffirmed its long term rating of “ilAA” (on local scaling) with a stable outlook regarding the Company’s Series B, C and D Notes, and its short term rating of “ilA-1+” (on local scaling) regarding the Company’s Commercial Paper.  

On July 29, 2024, the Company announced that it was awarded a contract worth approximately $190 million to supply its Iron Sting laser and GPS-guided mortar munition to the Israeli Ministry of Defense. The contract will be performed over a period of two years.

On August 1, 2024, the Company announced that it was awarded a contract in an amount of approximately $340 million for the supply of ammunition to the Israeli Ministry of Defense (IMOD). The contract will be performed over a period of ten years. Elbit Systems will establish a manufacturing facility to produce the ammunition.

On August 6, 2024, the Company announced that it was awarded a contract worth approximately $270 million to supply rocket artillery to an international customer. The contract will be performed over a period of four years.

On August 8, 2024, the Company announced that it was awarded a contract worth approximately $130 million to supply Iron Fist Active Protection Systems to BAE Systems Hägglunds. The systems will be installed on the CV90 Infantry Fighting Vehicle as part of a project of a European country. The contract will be performed over a period of five and a half years.

Dividend:

The Board of Directors declared a dividend of $0.50 per share. The dividend’s record date is October 15, 2024. The dividend will be paid on October 28, 2024, after deduction of withholding tax, at the rate of 16.8%. 

Conference Call:

The Company will be hosting a conference call today, Wednesday, August 14, 2024, at 9:00 a.m. Eastern Time. On the call, management will review and discuss the results and will be available to answer questions.

To participate, please call one of the teleconferencing numbers that follow. If you are unable to connect using the toll-free numbers, please try the international dial-in number.

US Dial-in Number: 1-866-744-5399
Canada Dial-in Number: 1-866-485-2399
Israel Dial-in Number: 03-918-0644
International Dial-in Number: 972-3-918-0644

at 9:00am Eastern Time; 6:00am Pacific Time; 4:00pm Israel Time

The conference call will also be broadcast live on Elbit Systems’ website at https://www.elbitsystems.com. An online replay will be available from 24 hours after the call ends.

Alternatively, for two days following the call, investors will be able to dial a replay number to listen to the call. The dial-in numbers are: 1-888-782-4291 (US and Canada) or +972-3-925-5900 (Israel and International).

About Elbit Systems

Elbit Systems is a leading global defense technology company, delivering advanced solutions for a secure and safer world. Elbit Systems develops, manufactures, integrates and sustains a range of next-generation solutions across multiple domains.

Driven by its agile, collaborative culture, and leveraging Israel’s technology ecosystem, Elbit Systems enables customers to address rapidly evolving battlefield challenges and overcome threats.

Elbit Systems employs over 20,000 people in dozens of countries across five continents. The Company reported as of June 30, 2024 approximately $1.6 billion in revenues and an order backlog of approximately $21.1 billion.

For additional information, visit: https://elbitsystems.com/, follow us on Twitter or visit our official Facebook, Youtube and LinkedIn channels.

Attachments:

Consolidated balance sheets
Consolidated statements of income
Consolidated statements of cash flows
Consolidated revenue distribution by geographical regions and by segments

Company Contact:

Dr. Yaacov (Kobi) Kagan, EVP & Chief Financial Officer

Tel:  +972-77-2946663

kobi.kagan@elbitsystems.com 

 

Dr. David Ravia, Investor Relations

Tel: +972-77-2947169

david.ravia@elbitsystems.com 

 

Dalia Bodinger, VP, Communications & Brand

Tel: +972-77-2947602

dalia.bodinger@elbitsystems.com 

 

This press release may contain forward–looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended and the Israeli Securities Law, 1968) regarding Elbit Systems Ltd. and/or its subsidiaries (collectively the Company), to the extent such statements do not relate to historical or current facts. Forward-looking statements are based on management’s current expectations, estimates, projections and assumptions about future events. Forward–looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions about the Company, which are difficult to predict, including projections of the Company’s future financial results, its anticipated growth strategies and anticipated trends in its business. Therefore, actual future results, performance and trends may differ materially from these forward–looking statements due to a variety of factors, including, without limitation: scope and length of customer contracts; governmental regulations and approvals; changes in governmental budgeting priorities; general market, political and economic conditions in the countries in which the Company operates or sells, including Israel and the United States among others; including the duration and scope of the current war in Israel, and the potential impact on our operations; changes in global health and macro-economic conditions; differences in anticipated and actual program performance, including the ability to perform under long-term fixed-price contracts; changes in the competitive environment; and the outcome of legal and/or regulatory proceedings. The factors listed above are not all-inclusive, and further information is contained in Elbit Systems Ltd.’s latest annual report on Form 20-F, which is on file with the U.S. Securities and Exchange Commission. All forward–looking statements speak only as of the date of this release.

Although the Company believes the expectations reflected in the forward-looking statements contained herein are reasonable, it cannot guarantee future results, level of activity, performance or achievements. Moreover, neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The Company does not undertake to update its forward-looking statements.

Elbit Systems Ltd., its logo, brand, product, service and process names appearing in this Press Release are the trademarks or service marks of Elbit Systems Ltd. or its affiliated companies.  All other brand, product, service and process names appearing are the trademarks of their respective holders.  Reference to or use of a product, service or process other than those of Elbit Systems Ltd. does not imply recommendation, approval, affiliation or sponsorship of that product, service or process by Elbit Systems Ltd. Nothing contained herein shall be construed as conferring by implication, estoppel or otherwise any license or right under any patent, copyright, trademark or other intellectual property right of Elbit Systems Ltd. or any third party, except as expressly granted herein.

(FINANCIAL TABLES TO FOLLOW)

ELBIT SYSTEMS LTD.

CONSOLIDATED BALANCE SHEETS

(In thousands of US Dollars)

 
 

As of

June 30, 2024

 

As of

December 31, 2023

Assets

 
 
 

Cash and cash equivalents

$                  120,662

 

$                    197,429

Short-term bank deposits

18,160

 

10,518

Trade and unbilled receivables and contract assets, net

2,941,362

 

2,716,762

Other receivables and prepaid expenses

317,340

 

285,352

Inventories, net

2,698,651

 

2,298,019

Total current assets

6,096,175

 

5,508,080

 
 
 
 

Investments in affiliated companies and other companies

145,727

 

145,350

Long-term trade and unbilled receivables and contract assets

415,603

 

364,719

Long-term bank deposits and other receivables

80,777

 

87,648

Deferred income taxes, net

23,602

 

23,423

Severance pay fund

195,129

 

206,943

Total

860,838

 

828,083

 
 
 
 

Operating lease right of use assets

526,099

 

425,884

Property, plant and equipment, net

1,173,176

 

1,087,950

Goodwill and other intangible assets, net

1,863,299

 

1,889,585

Total assets

$             10,519,587

 

$                9,739,582

 
 
 
 

Liabilities and Equity

 
 
 

Short-term bank credit and loans

$                  704,285

 

$                    576,594

Current maturities of long-term loans and Series B, C and D Notes

73,364

 

75,286

Operating lease liabilities

72,488

 

67,390

Trade payables

1,276,826

 

1,254,126

Other payables and accrued expenses

1,222,019

 

1,194,347

Contract liabilities

2,058,219

 

1,656,103

Total current liabilities

5,407,201

 

4,823,846

 
 
 
 

Long-term loans, net of current maturities

28,330

 

41,227

Series B, C and D Notes, net of current maturities

272,157

 

342,847

Employee benefit liabilities

485,364

 

510,416

Deferred income taxes and tax liabilities, net

56,967

 

55,240

Contract liabilities

510,379

 

354,319

Operating lease liabilities

449,815

 

363,100

Other long-term liabilities

285,092

 

298,296

Total long-term liabilities

2,088,104

 

1,965,445

 
 
 
 

Elbit Systems Ltd.’s equity

3,021,235

 

2,947,503

Non-controlling interests

3,047

 

2,788

Total equity

3,024,282

 

2,950,291

Total liabilities and equity

$             10,519,587

 

$                9,739,582

 

ELBIT SYSTEMS LTD.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands of US Dollars, except for share and per share amounts)

 
 

Six months
ended June 30, 
2024

 

Six months
ended June 30,
2023

 

Three months
ended June 30, 
2024

 

Three months
ended June 30,
2023

 

Year ended
December 31,
2023

Revenues

$     3,180,108

 

$     2,847,383

 

$     1,626,157

 

$     1,453,895

 

$     5,974,744

Cost of revenues

2,416,274

 

2,113,711

 

1,236,472

 

1,081,739

 

4,491,790

Gross profit

763,834

 

733,672

 

389,685

 

372,156

 

1,482,954

 
 
 
 
 
 
 
 
 
 

Operating expenses:

 
 
 
 
 
 
 
 
 

Research and development, net

215,320

 

203,750

 

116,799

 

93,432

 

424,420

Marketing and selling, net

176,795

 

181,878

 

87,713

 

101,718

 

359,141

General and administrative, net

149,872

 

152,564

 

68,690

 

75,424

 

330,285

Total operating expenses

541,987

 

538,192

 

273,202

 

270,574

 

1,113,846

Operating income

221,847

 

195,480

 

116,483

 

101,582

 

369,108

 
 
 
 
 
 
 
 
 
 

Financial expenses, net

(60,266)

 

(56,269)

 

(29,081)

 

(32,057)

 

(137,827)

Other income (expenses), net

3,267

 

(3,524)

 

(2,029)

 

(1,678)

 

(4,787)

Income before income taxes

164,848

 

135,687

 

85,373

 

67,847

 

226,494

Taxes on income

(22,859)

 

(17,943)

 

(11,261)

 

(9,248)

 

(22,913)

Income after taxes on income

141,989

 

117,744

 

74,112

 

58,599

 

203,581

 
 
 
 
 
 
 
 
 
 

Equity in net earnings of affiliated companies

10,341

 

6,852

 

4,492

 

3,824

 

12,275

 
 
 
 
 
 
 
 
 
 

Net income

$        152,330

 

$        124,596

 

$          78,604

 

$          62,423

 

$        215,856

 
 
 
 
 
 
 
 
 
 

Less: net income attributable to non-controlling interests

(292)

 

(176)

 

(239)

 

(72)

 

(725)

Net income attributable to Elbit Systems Ltd.’s shareholders

$        152,038

 

$        124,420

 

$          78,365

 

$          62,351

 

$        215,131

 
 
 
 
 
 
 
 
 
 

Earnings per share attributable to Elbit Systems Ltd.’s shareholders:

 
 
 
 
 
 
 
 
 

Basic net earnings per share

$               3.42

 

$               2.81

 

$               1.76

 

$               1.41

 

$               4.85

Diluted net earnings per share

$               3.41

 

$               2.79

 

$               1.76

 

$               1.40

 

$               4.82

 
 
 
 
 
 
 
 
 
 

Weighted average number of shares used in computation of:

 
 
 
 
 
 
 
 
 

Basic earnings per share (in thousands)

44,469

 

44,346

 

44,476

 

44,348

 

44,375

Diluted earnings per share (in thousands)

44,641

 

44,548

 

44,623

 

44,637

 

44,592

 

 

ELBIT SYSTEMS LTD.

CONSOLIDATED STATEMENTS OF CASH FLOW

(In thousands of US Dollars)

 
 

Six months
ended June 30,
2024

 

Six months
ended June 30,
2023

 

Year ended
December 31,
2023

CASH FLOWS FROM OPERATING ACTIVITIES

 
 
 
 
 

Net income

$         152,330

 

$         124,596

 

$         215,856

Adjustments to reconcile net income to net cash provided by operating activities:

 
 
 
 
 

Depreciation and amortization

78,122

 

80,735

 

164,799

Stock-based compensation

5,705

 

6,761

 

12,141

Amortization of series B, C and D related issuance costs, net

248

 

311

 

579

Deferred income taxes and reserve, net

6,045

 

(448)

 

(13,165)

Gain on sale of property, plant and equipment

(317)

 

(232)

 

(651)

Loss on sale of investment, remeasurement of investments held under fair value method

7,834

 

—

 

4,990

Equity in net (earnings) losses of affiliated companies, net of dividend received (*)

(4,999)

 

(1,808)

 

10,046

Changes in operating assets and liabilities, net of amounts acquired:

 
 
 
 
 

Increase in trade and unbilled receivables and prepaid expenses

(300,943)

 

(109,320)

 

(96,594)

Increase in inventories, net

(405,263)

 

(269,281)

 

(351,594)

Increase (decrease) in trade payables and other payables and accrued expenses

(47,845)

 

(43,738)

 

175,446

Severance, pension and termination indemnities, net

(23,272)

 

(13,337)

 

(24,331)

Increase in contract liabilities

558,352

 

15,032

 

16,187

Net cash (used in) provided by operating activities

25,997

 

(210,729)

 

113,709

CASH FLOWS FROM INVESTING ACTIVITIES

 
 
 
 
 

Purchase of property, plant and equipment and other assets

(115,528)

 

(97,237)

 

(187,037)

Acquisition of subsidiaries, net of cash assumed

—

 

(10,380)

 

(10,380)

Investments in affiliated companies and other companies, net

(1,098)

 

(1,035)

 

(5,416)

Proceeds from sale of property, plant and equipment

4,362

 

590

 

1,466

Proceeds from sale of a subsidiary and an investment

7,376

 

—

 

151

Investment in short-term deposits, net

(7,591)

 

(25,584)

 

(9,467)

Investment in long-term deposits, net

(441)

 

83

 

83

Net cash used in investing activities

(112,920)

 

(133,563)

 

(210,600)

CASH FLOWS FROM FINANCING ACTIVITIES

 
 
 
 
 

Issuance of shares

6

 

1

 

30

Issuance of commercial paper

36,380

 

—

 

313,620

Repayment of long-term loans

(11,203)

 

(226,118)

 

(246,231)

Proceeds from long-term bank loans

—

 

—

 

20,000

Repayment of Series B, C and D Notes

(61,862)

 

(62,434)

 

(62,434)

Dividends paid (**)

(44,473)

 

(44,857)

 

(89,248)

Change in short-term bank credit and loans, net

91,308

 

578,272

 

147,475

Net cash provided by financing activities

10,156

 

244,864

 

83,212

Net decrease in cash and cash equivalents

(76,767)

 

(99,428)

 

(13,679)

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD

$         197,429

 

$         211,108

 

$         211,108

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD

$         120,662

 

$         111,680

 

$         197,429

(*) Dividend received from affiliated companies and partnerships

$             5,342

 

$             5,044

 

$           22,321

   (**) Dividends paid during 2023 included approximately $0.5 million dividends paid by subsidiaries to non-controlling interests.

 

ELBIT SYSTEMS LTD.

DISTRIBUTION OF REVENUES

(In millions of US Dollars)

Consolidated revenues by geographical regions:

 
 

Six
months
ended
June 30,
2024

 

%

 

Six
months
ended
June 30,
2023

 

%

 

Three
months
ended
June 30,
2024

 

%

 

Three
months
ended
June 30,
2023

 

%

 

Year
ended
December 31,
2023

 

%

Israel

$       896.0

 

28.2

 

$       499.9

 

17.6

 

$       444.0

 

27.3

 

$       244.5

 

16.8

 

$    1,167.2

 

19.5

North America

695.6

 

21.9

 

690.0

 

24.2

 

368.4

 

22.7

 

337.7

 

23.2

 

1,417.7

 

23.7

Europe

857.3

 

27.0

 

832.9

 

29.3

 

472.5

 

29.1

 

464.1

 

31.9

 

1,776.4

 

29.7

Asia-Pacific

542.8

 

17.1

 

653.9

 

23.0

 

235.7

 

14.5

 

315.3

 

21.7

 

1,263.8

 

21.2

Latin America

73.9

 

2.3

 

58.2

 

2.0

 

39.7

 

2.4

 

28.0

 

1.9

 

120.7

 

2.0

Other countries

114.5

 

3.5

 

112.5

 

3.9

 

65.9

 

4.0

 

64.3

 

4.5

 

228.9

 

3.9

Total revenue

$    3,180.1

 

100.0

 

$    2,847.4

 

100.0

 

$    1,626.2

 

100.0

 

$    1,453.9

 

100.0

 

$    5,974.7

 

100.0

 

 

Consolidated revenues by segments:  

 
 

Six months
ended June 30, 
2024

 

Six months
ended June 30,
2023

 

Three months
ended June 30,
2024

 

Three months
ended June 30,
2023

 

Year ended
December 31,
2023

Aerospace

 
 
 
 
 
 
 
 
 

External customers

$               782.2

 

$               784.1

 

$               414.7

 

$               421.9

 

$            1,613.2

Intersegment revenue

120.9

 

123.7

 

66.5

 

65.1

 

260.1

Total

903.1

 

907.8

 

481.2

 

487.0

 

1,873.3

C4I and Cyber

 
 
 
 
 
 
 
 
 

External customers

359.6

 

318.9

 

175.1

 

157.1

 

668.4

Intersegment revenue

25.1

 

25.5

 

12.6

 

11.6

 

52.7

Total

384.7

 

344.4

 

187.7

 

168.7

 

721.1

ISTAR and EW

 
 
 
 
 
 
 
 
 

External customers

561.6

 

492.7

 

264.4

 

243.4

 

996.9

Intersegment revenue

103.3

 

94.7

 

54.4

 

49.3

 

182.5

Total

664.9

 

587.4

 

318.8

 

292.7

 

1,179.4

Land

 
 
 
 
 
 
 
 
 

External customers

741.4

 

554.7

 

380.7

 

276.2

 

1,241.0

Intersegment revenue

41.4

 

40.8

 

22.0

 

17.9

 

65.2

Total

782.8

 

595.5

 

402.7

 

294.1

 

1,306.2

ESA

 
 
 
 
 
 
 
 
 

External customers

735.3

 

697.0

 

391.3

 

355.3

 

1,455.2

Intersegment revenue

1.7

 

3.7

 

1.6

 

—

 

9.7

Total

737.0

 

700.7

 

392.9

 

355.3

 

1,464.9

Revenues

 
 
 
 
 
 
 
 
 

Total revenues (external customers and intersegment) for reportable segments

3,472.5

 

3,135.8

 

1,783.3

 

1,597.8

 

6,544.9

Less – intersegment revenue

(292.4)

 

(288.4)

 

(157.1)

 

(143.9)

 

(570.2)

Total revenues

$            3,180.1

 

$            2,847.4

 

$            1,626.2

 

$            1,453.9

 

$            5,974.7

 

Logo: https://mma.prnewswire.com/media/2017806/Elbit_Systems_Logo.jpg

 

View original content:https://www.prnewswire.com/news-releases/elbit-systems-reports-second-quarter-2024-results-302222062.html

SOURCE Elbit Systems Ltd.

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Technology

TELUS transforms legacy telecommunications site into 195 new homes for Nanaimo

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49 minutes ago

on

July 24, 2026

By

Across Canada, demand for rental housing continues to outpace supply. TELUS Living is helping address this challenge by transforming existing TELUS properties into smart, sustainable homes in communities where new housing is needed most.

NANAIMO, BC, July 23, 2026 /CNW/ — TELUS Living today opened a new 195-home purpose-built rental community in downtown Nanaimo, transforming a former telecommunications property into smart, sustainable housing that helps address one of Canada’s most pressing challenges: increasing rental supply in growing communities. Located at 235 Wallace St, the multi-storey, mixed-use build features 195 purpose-built rental units, providing much-needed housing supply to downtown Nanaimo, while thoughtfully honouring the city’s unique coastal identity and heritage.

The Nanaimo development is part of TELUS’ long-term strategy to repurpose legacy telecommunications infrastructure into purpose-built rental housing as the company modernizes its network and completes the transition from copper to PureFibre technology. The Nanaimo community joins TELUS Living’s growing portfolio of developments that are transforming underutilized TELUS properties into housing across Canada.

“The Nanaimo development represents exactly what TELUS Living stands for by providing purpose-built rental housing tailored to the specific needs of the community it serves. We’ve designed 235 Wallace St with Nanaimo’s unique character in mind, offering a curated lifestyle that blends a climate-conscious, Zero Carbon Design approach with top-tier wellness and smart-tech amenities,” said Manasweeta Bhatia, Vice President of Corporate Real Estate at TELUS. “We shape every TELUS Living project by listening to the community, understanding its unique identity and design needs, and building accordingly. Its central downtown location and proximity to both Vancouver Island University and Nanaimo Regional General Hospital also position it as an ideal home for students, educators, and healthcare workers seeking modern, connected living.”

“More housing and good jobs are a win-win for downtown Nanaimo,” said Sheila Malcolmson, MLA for Nanaimo-Gabriola Island. “Adding to the approximately 1,500 affordable homes our B.C. government has completed and underway in Nanaimo, it’s great to see TELUS stepping up with 195 new units. It’s been great to see hundreds of construction and indirect jobs in town, and I can’t wait to see folks move into their new homes.”

“I’m thrilled to see a new rental option in downtown Nanaimo, and especially excited that this conversion was made with sustainability and active transportation in mind,” said George Anderson, MLA for Nanaimo-Lantzville. “Ensuring everyone can find homes they can afford in the communities they love requires creative approaches, and I hope to see more creativity like this in the future.”

“I’m delighted to celebrate the opening of TELUS Living Nanaimo, a landmark project that strengthens our downtown as a vibrant, inclusive place to live,” said Leonard Krog, Mayor of Nanaimo. “This partnership between the City of Nanaimo, our community, and TELUS demonstrates what’s possible when we work together toward shared goals. The addition of nearly 200 diverse housing options is exactly what our city needs, and we’re excited about the positive impact this will have on our community. TELUS’ commitment to our city and investment in our future will contribute to Nanaimo’s economic and social vitality.”

Situated within walking distance of downtown’s vibrant cafes, eclectic Old City Quarter, the iconic Harbourfront Walkway, and a short transit ride from Vancouver Island University and Nanaimo Regional General Hospital, the development is architecturally designed to blend classic and contemporary exterior elements. Curated for modern living, the community offers an expansive suite of indoor and outdoor social amenities alongside street-level retail and public art contributions.

Project Highlights:

Smart-Enabled Living: Powered by the TELUS PureFibre network, the custom TELUS Living App provides keyless entry, smart climate control, leak detection, parcel notifications, visitor management, and amenity bookings.Social & Wellness Amenities: Features a rooftop deck with an outdoor kitchen, BBQs, and panoramic views, alongside a state-of-the-art fitness centre and resident lounge.Pet & Active Lifestyle Ready: Equipped with a dedicated children’s outdoor play area, outdoor bark park and pet care station, secure underground parking, bike storage and maintenance facilities.Premium Functional Interiors: Studio to three-bedroom layouts include private balconies, individual A/C with Energy Recovery Ventilators (ERVs) for optimal air quality, Samsung SmartThings appliances, and in-suite laundry.Gold-Standard Sustainability: Sets a Vancouver Island benchmark aligned with Zero Carbon Design standards and Salmon-Safe development guidelines that actively protects local ecosystems.

This opening marks a significant milestone in TELUS Living’s mission to transform existing real estate holdings into purpose-built rentals that bridge the housing gap with smart, sustainable, and community-focused developments. As TELUS completes its transition from legacy copper to advanced fibre networks, the company is transforming its historic central offices–which once served as the backbone of B.C.’s phone system–into vibrant, smart, purpose-built rental communities. TELUS Living is breathing new life into these properties to help address Canada’s housing crisis. For more details on TELUS Living Nanaimo or to view available floor plans, please visit telusliving.com/nanaimo.

About TELUS

TELUS (TSX: T, NYSE: TU) is a world-leading communications technology company operating in more than 45 countries and generating over $20 billion in annual revenue with more than 17 million customer connections through our advanced suite of broadband services for consumers, businesses and the public sector. We are committed to leveraging our technology to enable remarkable human outcomes. TELUS is passionate about putting our customers and communities first, leading the way globally in client service excellence and social capitalism. TELUS Health is enhancing approximately 170 million lives across 200 countries and territories through innovative preventive medicine and well-being technologies. TELUS Agriculture & Consumer Goods utilizes digital technologies and data insights to optimize the connection between producers and consumers. TELUS Digital specializes in digital customer experiences and future-focused digital transformations that deliver value for their global clients. Guided by our enduring ‘give where we live’ philosophy, TELUS continues to invest in initiatives that support education, health and community well-being. In 2023, we launched the TELUS Student Bursary, which strives to ensure that every young person in Canada who wants a postsecondary education has the opportunity to pursue one. To date, the program has distributed over $6 million in bursaries to 2,000 students and counting. Since 2000, TELUS, our team members and retirees have contributed $1.85 billion in cash, in-kind contributions, time and programs, including 2.5 million days of service–earning TELUS the distinction of the world’s most giving company.

For more information, visit telus.com.

For more information, please contact:
Brandi Rees
TELUS Public Relations
brandi.rees@telus.com 

SOURCE TELUS Communications Inc.

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Award-Winning Author Euran Daniels to Deliver Opening Keynote at International Nevus Outreach Conference, Unveiling New $100,000 Global Initiative to Advance CMN Research and Awareness

Published

49 minutes ago

on

July 24, 2026

By

ORLANDO, Fla., July 24, 2026 /PRNewswire/ — Award-winning author, entrepreneur, and Congenital Melanocytic Nevus (CMN) advocate Euran S. Daniels will deliver the opening keynote address at the 2026 Nevus Outreach International Conference on Sunday, July 26, 2026, at 1:00 p.m. at the Renaissance Orlando at SeaWorld®.

Launching the conference under this year’s theme, “Amplify,” Daniels will share his personal journey of living with CMN for more than 50 years and challenge attendees to transform awareness into meaningful action through hope, advocacy, and research.

During his keynote, Daniels will unveil a new global initiative aimed at expanding awareness and inspiring greater support for CMN research. The initiative will encourage individuals, healthcare organizations, corporations, and philanthropists to join a collaborative effort to improve the lives of those affected by this rare skin condition.

“For more than fifty years, I’ve lived with a visible mark that became my purpose,” said Daniels. “My hope is that every person leaves this conference believing they can make a difference by amplifying hope, supporting research, and leaving a positive impact on the lives of others.”

CMN is a rare skin condition present at birth that, in its larger forms, affects approximately 1 in every 20,000 births. Individuals living with CMN may face complex medical challenges, including an increased risk of melanoma, multiple surgeries, and the emotional impact of living with a visible difference.

Daniels’ keynote will focus on three powerful messages: You’re Not Alone. Live Your Life. Leave Your Mark.Through his story of resilience and leadership, he hopes to inspire families, advocates, researchers, and community leaders to work together to create greater awareness and opportunity for those living with CMN.

Media are invited to attend the keynote address to learn more about this initiative. 

For more information, visit www.EuranDaniels.com or to support CMN research, visit www.nevus.org/joineuran.

Media Contact:
Media Relations – Fanisha Love (910) 262-3439
Email: info@danielscompany.com
Website: www.EuranDaniels.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/award-winning-author-euran-daniels-to-deliver-opening-keynote-at-international-nevus-outreach-conference-unveiling-new-100-000-global-initiative-to-advance-cmn-research-and-awareness-302834295.html

SOURCE Daniels Company

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Immigration Desk Shares Guidance for Entrepreneurs and Foreign Businesses Planning US Expansion in 2026

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49 minutes ago

on

July 24, 2026

By

NEWTON, Mass., July 24, 2026 /PRNewswire/ — Immigration Desk is highlighting key immigration considerations for entrepreneurs, investors, and foreign-owned companies looking to establish or expand a presence in the United States, as interest in cross-border growth continues alongside evolving visa procedures and compliance expectations. The firm noted that many business owners plan with a general goal of opening a US office,  only to be met by a system that favors careful planning and documentation. 

Immigration planning often intersects with business planning, with company structure, ownership percentage, funding sources, job roles, and operational timelines influencing the pathways available and evidence required. A viable business plan alone often isn’t enough, and applicants must also meet specific legal definitions tied to visa categories. Those definitions, however, can differ significantly depending on the route pursued.

“Business immigration is not a single form or a single standard,” said Anu Gupta, attorney at Immigration Desk. “Entrepreneurs and foreign businesses often come to the process thinking in terms of growth goals like opening a location, hiring, and launching a product. However, the immigration system asks for detailed proof of role, eligibility, and structure. Planning early helps align those two realities and avoids last-minute surprises.”

Immigration Desk notes that entrepreneurs and foreign businesses typically evaluate options based on the nature of the US activity and the individual’s role. For some, the relevant question is whether a company can transfer an executive, manager, or specialized employee to a US office under an intracompany framework, particularly when the business can document a qualifying relationship between entities.

For others, the analysis may focus on investment-based categories where the applicant is actively directing and developing a US enterprise. In still other cases, founders may explore categories that emphasize extraordinary ability, research-based work, or employer sponsorship, depending on the individual’s background and the company’s needs.

L-1 and E-2 Visas: Pathways for Multinational Companies and Investors

For companies evaluating intracompany transfers, the L-1 visa provides a structured pathway for multinational businesses to bring executives, managers, or employees with specialized knowledge to a U.S. office — including newly established entities. Immigration Desk notes that L-1 cases require careful documentation of the qualifying relationship between the foreign and U.S. companies, as well as a clear demonstration of the applicant’s role and seniority. For new U.S. offices in particular, USCIS applies additional scrutiny to whether the operation is sufficiently established to support the position being petitioned.

The E-2 treaty investor visa offers a separate route for entrepreneurs from qualifying treaty countries who are making a substantial investment in and actively directing a U.S. enterprise. While the E-2 does not require a minimum investment threshold, Immigration Desk emphasizes that the investment must be proportional to the nature of the business and at risk in a commercial sense — factors that require careful structuring and documentation from the outset. Unlike some other business visa categories, the E-2 does not provide a direct path to permanent residency, which means founders relying on it should also plan for long-term status options early in the process.

The firm also points to a recurring challenge for growth-stage companies: staffing. Employer-sponsored visas can involve strict timing, evolving agency practices, and in some categories, annual numerical limits. In recent years, many employers have sought clarity on how to plan around the H-1B cap and lottery cycle, particularly when hiring needs don’t align neatly with government filing windows.

While the H-1B category remains widely used for specialized professional roles, Immigration Desk emphasizes that businesses should treat it as one part of a broader hiring and compliance plan rather than a single solution, especially when role definitions, worksite compliance, and documentation requirements are central to adjudication.

“People often focus on the name of a visa category, but the practical work is in the documentation and the operational reality behind the petition,” Gupta added. “For businesses, that means understanding what the government expects in terms of job duties, business activity, and the evidence that supports eligibility. For entrepreneurs, it can mean clarifying ownership, funding, and what day-to-day leadership looks like in a way that is consistent and well documented.”

Immigration Desk also notes that immigration planning frequently involves risk management. Businesses may need to consider how quickly a US operation must become functional, what happens if timelines shift, and how to maintain continuity if a petition is delayed or requires additional review. For founders, the concerns often include whether a pathway supports both business operations and personal stability, including travel, family planning, and long-term status options.

The firm cautions that immigration outcomes depend on individualized facts and that what works for one company may not apply to another. However, the most consistent problems, like incomplete timelines, inconsistent documentation, unclear roles, and last-minute filings, are completely avoidable. In response to those issues, Immigration Desk encourages business owners to approach US immigration as a phased process that begins with strategy and thorough preparation, with an operational plan for compliance after arrival.

For more information, please refer to the company’s website.

Immigration Desk
704 Walnut Street Newton, MA 02459
1-800-688-7892
https://immigrationdesk.com/
clients@ImmigrationDesk.com 

At Immigration Desk, attorney Anu Gupta and her team have helped thousands of entrepreneurs, investors, and multinational companies navigate complex immigration matters. With more than 40 years of combined experience and over 10,000 immigration cases handled, the firm has developed a reputation for careful preparation and strategic case planning. Whether you are a startup founder, a multinational executive, or an investor seeking to establish a presence in the United States, Immigration Desk can help you determine the most effective immigration strategy for your situation.

View original content to download multimedia:https://www.prnewswire.com/news-releases/immigration-desk-shares-guidance-for-entrepreneurs-and-foreign-businesses-planning-us-expansion-in-2026-302834299.html

SOURCE Immigration Desk

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