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ELBIT SYSTEMS REPORTS SECOND QUARTER 2024 RESULTS

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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

Softbank and NewPhotonics Announce Collaboration on Advanced Photonics Technology for LPO, CPO and All-Optics Switch Fabric Targeting AI-RAN

Published

54 mins ago

on

September 24, 2024

By

Collaboration Agreement Targets Next Generation Data Centers vRAN to Fronthaul with All-Optical Transmission and Switching  

FRANKFURT, Germany, Sept. 24, 2024 /PRNewswire/ — SoftBank Corp. (‘SoftBank’) and NewPhotonics LTD (‘NewPhotonics’), a leader in advanced integrated photonics, today announced a joint research and development collaboration to advance photonics technologies for LPO (Linear-drive Pluggable Optics), CPO (Co-packaged Optics), and All-Optics Switch Fabric. This photonics-electronics convergence technology with high-speed optical communication and Optical Switching Technology enables low latency and low power consumption in AI data center and mobile fronthaul infrastructure. The technologies support SoftBank in AI data center and mobile fronthaul infrastructure with NewPhotonics patented technologies coupled with its photonics integrated chip (PIC) for reliable all-optics communication and optical fabric switching.

Targeting improved performance of GPU/CPU/switch fabric with PIC and low latency optical connectivity, the technology will also address power consumption and capacity bottlenecks in AI cluster workloads based on high-speed optical communication and optical switching technology. The patented NewPhotonics optical SerDes (serializer/deserializer) will enable higher density and low latency data transfer in mobile fronthaul and data center. 

Co-packaged advanced optical technologies deliver improved speed and energy efficiency crucial in data center re-designs underway for high performance compute and vector processing applications. In addition, the LPO technology realized by incorporating the NewPhotonics PIC into the optical transceiver enables long-distance transmission greater than existing LPO technology. Applying NewPhotonics LPO technology to mobile fronthaul is expected to reduce processing delays, reduce power consumption, and extend distances of data transport equipment.  

Ryuji Wakikawa, Head of SoftBank Research Institute of Advanced Technology, said:  

“We believe this partnership with NewPhotonics is necessary for next generation infrastructure. By collaborating, we envision a transformation in AI data center and mobile fronthaul infrastructure with optical-electronics convergence technologies that enhances speed, distance limit, capacity, and, most importantly, leads to sustainability gains giving SoftBank a significant advantage and market leadership.”  

Yaniv Ben Haim, CEO of NewPhotonics added, “Our new collaboration agreement with Softbank marks a significant milestone for our company and the industry to advance optical interconnect technology in CPO and pluggable that address the needs of modern compute and AI infrastructure. We remain committed to breaking the limits of optical communication with lowered latency and power at scalable distances. This partnership exemplifies our confidence in the impact of all-optical connectivity on the future of AI and 6G with our patented photonics innovations.” 

About Softbank 

Guided by the SoftBank Group’s corporate philosophy, “Information Revolution – Happiness for everyone,” SoftBank Corp. (TOKYO: 9434) operates telecommunications and IT businesses in Japan and globally. Building on its strong business foundation, SoftBank Corp. is expanding into non-telecom fields in line with its “Beyond Carrier” growth strategy while further growing its telecom business by harnessing the power of 5G/6G, IoT, Digital Twin and Non-Terrestrial Network (NTN) solutions, including High Altitude Platform Station (HAPS)-based stratospheric telecommunications. While constructing AI data centers and developing homegrown LLMs specialized for the Japanese language with one trillion parameters, SoftBank is applying AI to enhance radio access network performance (AI-RAN) with the aim of becoming a provider of next-generation social infrastructure. To learn more, please visit https://www.softbank.jp/en/ 

About NewPhotonics 

NewPhotonics is a fabless semiconductor company based in Tel Aviv Israel is designing, developing, and manufacturing photonic integrated circuits (PIC) that break the limits of optical connectivity and processing for a new all-optics paradigm in networking and compute data transmission. Founded in 2020, NewPhotonics is privately held and funded. For more information visit www.newphotonics.com. 

Press Contact:
Corporate Communications
press.relations@newphotonics.com
+972 3 614-3147

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Webull’s Group President visited Asia-Pacific, where its assets under management has grown by more than 100%

Published

54 mins ago

on

September 24, 2024

By

SINGAPORE, Sept. 24, 2024 /PRNewswire/ — The Group President of Webull Corporation, a leading digital investment platform, Anthony Denier, recently concluded a visit to the Asia-Pacific, or APAC, region. This trip underscores Webull’s growth in the APAC region and its ongoing commitment to expanding its footprint in the region. Building on Webull’s success in the U.S. market, Webull entered Hong Kong SAR in 2020, followed by expansions into Singapore and Australia in 2022. In 2023, Webull entered Japan and Indonesia and most recently in 2024, Malaysia and Thailand. As of 31st July 2024, Webull has achieved a remarkable year-over-year (YoY) growth rate of 100% in its assets under management (AUM) within the APAC region.

“We are incredibly proud of Webull’s rapid expansion in the APAC region. Since we entered APAC in 2020, we have seen a steady increase in our user base, with investors leveraging Webull’s trading tools to develop comprehensive and diversified investment portfolios across the U.S. and APAC markets. In the next two years, Webull aims to be a top broker-dealer in every region, and we remain committed to developing innovative solutions that will allow us to grow significantly while ensuring trading remains accessible and affordable for all retail investors,” said Mr. Denier.

Strong American genes, deeply rooted in the global market

Launched in the U.S. in 2018, Webull has since expanded its reach to the APAC region, Europe, Africa, and Latin America, achieving over 40 million downloads globally and surpassing 20 million registered users. In 2023, Webull saw a YoY increase of 38% in customer assets, reaching a value of US$8.2 billion. For the full year of 2023, the equity notional volumes of U.S. stock trades, reflecting platform user trading activity, reached US$371 billion, and the number of options contracts traded reached 430 million. In the fourth quarter of 2023, Webull achieved a user retention rate of 98%. These performances are a result of the positive trading experience for users and the trust they have in Webull.

Already one of the leading digital brokerages in the U.S., Webull continues to strengthen its presence across 13 global markets. Its strong foundation in the U.S. allows Webull to serve as a key gateway for local investors in APAC to access the U.S. market.  In addition, Webull is committed to providing both the tools and knowledge needed to empower investors to better navigate the investing world, making Webull a trusted brokerage amongst local investors.

Stable growth of Webull Singapore, catering to needs of local investors

Since the launch of Webull Singapore in 2022, the firm has experienced a surge in user signups, a testament to its growing popularity among investors. As the firm continues to establish its presence in Singapore, Webull has also rolled out various new features and services, such as the recent release of overnight U.S. stock trading for local investors, allowing investors to trade various US stocks and ETFs regardless of time zones.

Recognising that retail investors today are keen to build a more diversified portfolio due to greater market volatility and geopolitical tensions, in January of this year, Webull Singapore launched SGX-listed products and securities offerings on its trading platform, providing local investors with access to more than 1,000 SGX-listed stocks, REITs, DLCs, and ETFs. For investors that are more risk adverse, Webull Singapore also offers local investors access to 430 mutual funds from various fund houses, as well as wealth management tools like Moneybull, a cash management product, and Regular Savings Plan to help investors effectively manage and grow their wealth.

To remain at the forefront of the digital brokerage landscape in Singapore, Webull continues to offer investors low commission fees with no platform fees[1] for investors trading US stocks and ETFs, Hong Kong stocks and ETFs, and A-shares stocks and ETFs. For investors trading Singapore stocks and ETFs, Webull offers low commission and platform fees (0.025% x Total Trade Amount, Min SGD 0.80), with an ongoing campaign that offers 3-year commission-free[2] for Singapore stock trading. Aligned with Webull’s promise to educate investors and promote financial literacy amongst retail investors, investors using the Webull platform also gain access to a number of trading tools as well as level 2 advanced US market data to help them make informed decisions.

As Webull expands its presence in Singapore, Webull remains focused on fostering innovation and enhancing user experience as it strives to be the preferred brokerage for investors looking to invest in the U.S. as well as local markets.

“Since we entered the Singapore market in 2022, we have witnessed a strong uptrend in our user base within a short two-year span. Investors in Singapore continue to seek attractive yields for their investments and Webull Singapore will strive to develop better, more innovative products and tools that will cater to the evolving needs of Singapore investors,” added Jonathan Man, Chief Executive Officer of Webull Singapore.  

To learn more about Webull’s products and services, please visit the website: https://www.webull.com.sg/

[1]The rate of 0 is subject to change at Webull’s discretion and is valid until updated

[2]Terms and conditions apply. For details, please refer to Webull’s website at https://www.webull.com.sg/, the Webull App or the campaign’s terms and conditions.

About Webull

Webull is a leading digital investment platform built on next generation global infrastructure. The Webull Group is headquartered in St. Petersburg, Florida and backed by private equity investors located in the United States, Europe and Asia. With over 40 million downloads globally, the company is operational in 15 regions and provides retail investors with 24/7 access to global financial markets. Users can put investment strategies to work by trading global stocks, ETFs, options and fractional shares, through Webull’s trading platform. With low-cost trading on a wide range of assets, Webull is revolutionizing the way individuals approach investing. Learn more at https://www.webullcorp.com/.

All investments involve risks and are not suitable for every investor. This advertisement has not been reviewed by the Monetary Authority of Singapore.

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/webulls-group-president-visited-asia-pacific-where-its-assets-under-management-has-grown-by-more-than-100-302256599.html

SOURCE Webull Securities (Singapore) Pte. Ltd.

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REPT BATTERO WENDING 564Ah Energy Storage Cell and Powtrix energy storage system officially launched at RE+2024

Published

54 mins ago

on

September 24, 2024

By

IRVINE, Calif, Sept. 24, 2024 /PRNewswire/ — In an eventful week, REPT BATTERO officially opened its first North American subsidiary office on September 9 in Irvine, CA before showcasing new products and solutions at the nearby RE+ 2024 Exposition. At RE+, the company formally launched its WENDING 564Ah battery cell and the Powtrix energy storage system to deliver safer and more efficient solutions fo the global green energy transformation.

WENDING 564Ah: Over Four-Hour Duration and Upgraded Functions

The 564Ah battery cell adopts REPT BATTERO’s groundbreaking “WENDING” 2.0 technology, which delivers high energy efficiency, high consistency, zero attenuation, and an extended lifespan by applying Double-High Electrode technology.

The 564Ah battery cell applies WENDING structural design that improves JR tab bending and length. With this optimized structure, we have improved the internal space utilization rate by 5%, reduced the DCIR by 16%, therefore the cell energy efficiency can reach 96.4%. In addition, the WENDING 564Ah battery adopts double-high electrode technology, which improves the ion migration rate by 30%. Through the development of a new process, REPT breaks through the mass production problems of pre-lithiation technology which mitigates the attenuation significantly, reduces the loss of lithium ion at the very first charging and increase the efficiency and energy density of batteries.

The WENDING 564Ah batteries are also specially developed to meet the requirement for long-term energy storage of more than 4 hours, a 10,000+ cycle life and 25-30 years of durability. Moreover, WENDING 564Ah batteries have solved the problems of thermal runaway and over-charging that are generally prone to occur in large-capacity batteries, providing users with a safe, high-efficiency, and reliable product use experience.

Powtrix：Multiple Guarantees for BESS Security

The Powtrix energy storage system further enhances the 20-foot container battery system. Based on WENDING 564Ah batteries, the Powtrix system can meet the global growing demand for long-term energy storage  application requirements. Powtrix systems can have an installed capacity of more than 6MWh on the DC side, and the container level efficiency can be more than 95% , its service life can be more than 25 years and it has the ability of continuous safety monitoring.

The Powtrix battery system has delivers outstanding performance on durability. The system reaches IP55 + C5 anti-corrosion level, which is able to effectively resist dust, water spraw, hot and humid environments, as well as wind, sand, and salt spray. The internal components of the system are all tested according to 60°C long-term high-temperature aging, showing good durability and outstanding performance even under extreme weather conditions. At the same time, the system is equipped with active ballancing technology. Compared with passive balancing, active balancing capacity is increased by 20 times, energy saving is 150 times, and a single cluster can reduce operation and maintenance costs by 80%.

In terms of power safety, the REPT BATTERO’s Powtrix energy storage system supports thermoelectric separation, short-circuit arc protection, external short circuit detection and battery valve action detection. In terms of thermal safety, the Powtrix energy storage system has excellent passive safety performance in the comprehensive UL 9540A test evaluation, and applies both module and system firefighting strategies to suppress fire at the earliest stage, minimizing the thermal diffusion and fire risk of the battery system.

The REPT BATTERO Powtrix energy storage system offers a 20% increase in energy density, a 16.6% reduction in footprint, and a 15.7% savings in investment compared to a traditional 5MWh energy storage system. REPT BATTERO Powtrix energy storage system meets a number of U.S. regulations and standards for safety, including NEC, NPFA68/69/70, NFPA855, IEEE693, and performed well on large-scale fire assessment tests with the forced fire range able to be controlled in the expected range.

Excellence in system integration compatibility 

Powtrix combines the technical characteristics of mainstream PCS equipment and unique station layouts. The output interface design supports two optional forms of bottom outlet and endside outlet. At the same time, Powtrix products also support different wiring juction forms of single-channel bus output and multi-channel independent output, which can take into account the wiring methods of PCS of different brands and architectures, fully meeting the system matching requirements of global customers, and making them grid-friendly, system-friendly and battery-friendly.

In addition to the Powtrix product family, REPT will also launch its flagship version. Based on the current 300Ah+ series of cells supplied in mass production, REPT BATTERO have applied the same chemical system design with only minor dimensional adjustments. And REPT BATTERO were able to attain a full compartment capacity of 6.25MWh. The product hands down from the full set of approximate design schemes of 300Ah+ series from cell to assembly, which has many advantages including stable chemical systems, mature process routes, reliable system integration and quick mass production. It will be the pioneer and flagship version of 6MWh family products to serve clients.

View original content to download multimedia:https://www.prnewswire.com/news-releases/rept-battero-wending-564ah-energy-storage-cell-and-powtrix-energy-storage-system-officially-launched-at-re2024-302256618.html

SOURCE REPT BATTERO NA OFFICE

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