Elbit Systems Reports First Quarter 2019 Results

HAIFA, Israel, May 28, 2019 /PRNewswire/ -- Elbit Systems Ltd. (NASDAQ: ESLT) (TASE: ESLT), (the "Company") the international high technology company, reported today its consolidated results for the quarter ended March 31, 2019.

In this release, the Company is providing US-GAAP results as well as additional non-GAAP financial data, which are intended to provide investors a more comprehensive understanding of the Company's business results and trends. Unless otherwise stated, all financial data presented is GAAP financial data.

Management Comment:

Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, commented: "The results of the first quarter of 2019 mark the first full quarter that includes the results of IMI. I am pleased with our results, especially the 25% growth in revenue with a well-diversified global presence in which our major geographic regions grew on an absolute basis. Our economies of scale enabled us to maintain a similar level of operating margins despite lower gross margins following the IMI acquisition. The significant increase in our backlog and the progress in the integration of IMI into the Company, support our long-term growth potential."

First quarter 2019 results:

Revenues in the first quarter of 2019 were $1,021.7 million, as compared to $818.5 million in the first quarter of 2018. The strong growth was mainly driven by the consolidation of IMI and Universal performance in the first quarter of 2019.

Non-GAAP ((*)) gross profit amounted to $283.4 million (27.7% of revenues) in the first quarter of 2019, as compared to $239.8 million (29.3% of revenues) in the first quarter of 2018. GAAP gross profit in the first quarter of 2019 was $277.6 million (27.2% of revenues), as compared to $235.4 million (28.8% of revenues) in the first quarter of 2018.

Research and development expenses, net were $77.4 million (7.6% of revenues) in the first quarter of 2019, as compared to $68.2 million (8.3% of revenues) in the first quarter of 2018.

_____________
* see page 3

Marketing and selling expenses, net were $71.8 million (7% of revenues) in the first quarter of 2019, as compared to $68.2 million (8.3% of revenues) in the first quarter of 2018.

General and administrative expenses, net were $53.6 million (5.2% of revenues) in the first quarter of 2019, as compared to $35.7 million (4.4% of revenues) in the first quarter of 2018.

Other operating income, net was $1.2 million in the first quarter of 2019, due to a gain resulting from an investment and remeasurement of the Company in a subsidiary.

Non-GAAP((*)) operating income was $84.0 million (8.2% of revenues) in the first quarter of 2019, as compared to $69.4 million (8.5% of revenues) in the first quarter of 2018. GAAP operating income in the first quarter of 2019 was $76.0 million (7.4% of revenues), as compared to $63.3 million (7.7% of revenues) in the first quarter of 2018.

Financial expenses, net were $13.9 million in the first quarter of 2019, as compared to $10.2 million in the first quarter of 2018. Financial expenses, net in the first quarter of 2019, include exchange rate differences of approximately $9.3 million related to the recognition of lease liabilities denominated in foreign currencies (mainly in New Israeli Shekels) as a result of the adoption of ASC 842, Leases, effective January 1, 2019.

Other (expenses) income, net were $3.4 million in the first quarter of 2019, mainly due to the non-service cost components of pension plans, in accordance with ASU 2017-07.

Taxes on income were $10.1 million (effective tax rate of 17.2%) in the first quarter of 2019, as compared to $6.4 million (effective tax rate of 12.0%) in the first quarter of 2018.

Equity in net earnings of affiliated companies and partnerships was $2.2 million (0.2% of revenues) in the first quarter of 2019, as compared to $3.1 million (0.4% of revenues) in the first quarter of 2018.

Net income attributable to non-controlling interests was $0.4 million in the first quarter of 2019, as compared to $0.2 million in the first quarter of 2018.

Non-GAAP((*)) net income attributable to the Company's shareholders in the first quarter of 2019 was $65.8 million (6.4% of revenues), as compared to $55.1 million (6.7% of revenues) in the first quarter of 2018. GAAP net income attributable to the Company's shareholders in the first quarter of 2019 was $50.5 million (4.9% of revenues), as compared to $49.6 million (6.1% of revenues) in the first quarter of 2018.

Non-GAAP((*)) diluted net earnings per share attributable to the Company's shareholders were $1.54 for the first quarter of 2019, as compared to $1.29 for the first quarter of 2018. GAAP diluted earnings per share in the first quarter of 2019 were $1.18, as compared to $1.16 for the first quarter of 2018.

The Company's backlog of orders as of March 31, 2019 totaled $9,658 million as compared to $8,046 million as of March 31, 2018. Approximately 59% of the current backlog is attributable to orders from outside Israel. Approximately 61% of the current backlog is scheduled to be performed during 2019 and 2020.

Operating cash flow generated in the three months ended March 31, 2019 was $46.5 million, as compared to $147.9 million used in the three months ended March 31, 2018.

_____________
* see page 3

Adoption of New Accounting Standard:

The Company adopted Accounting Standards Update (ASU) 2016-02, Leases (ASC 842), effective January 1, 2019, using a modified retrospective transition method. Consequently, periods prior to January 1, 2019 are not restated for the adoption of ASU 2016-02.

Leases (ASC 842), as amended, requires lessees to recognize a Right of Use ("ROU") asset and lease liability on the balance sheet for most lease arrangements and expands disclosures about leasing arrangements for both lessees and lessors, among other items. We adopted ASU 2016-02 using the optional transition method whereby we applied the new lease requirements under ASU 2016-02 through a cumulative-effect adjustment.

We recognized approximately $370 million of ROU operating lease assets and lease liabilities as a result of adopting this standard. As part of our adoption, we elected all of the available practical expedients with the exception of the practical expedient permitting the use of hindsight when determining the lease term and assessing impairment of ROU assets. The adoption of the standard increased our financial expenses in the first quarter of 2019, in the amount of $9.3 million as a result of exchange rate differences on lease liabilities denominated in foreign currencies (mainly NIS). The comparative periods have not been restated for the adoption of ASU 2016-02.

* Non-GAAP financial data:

The following non-GAAP financial data is presented to enable investors to have additional information on the Company's business performance as well as a further basis for periodical comparisons and trends relating to the Company's financial results. The Company believes such data provides useful information to investors by facilitating more meaningful comparisons of the Company's financial results over time. Such non-GAAP information is used by the Company's management to make strategic decisions, forecast future results and evaluate the Company's current performance. However, 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.

The non-GAAP financial data includes reconciliation adjustments regarding non-GAAP gross profit, operating income, net income and diluted EPS. In arriving at non-GAAP presentations, the Company factors out items such as those that have a non-recurring impact on the income statements, various non-cash items, including significant exchange rate differences, significant effects of retroactive tax legislation and changes in accounting guidance and other items, which in management's judgment, are items that are considered to be outside of the review of core operating results.

In the Company's non-GAAP presentation, the Company made certain adjustments, as indicated in the table below.

These non-GAAP measures are not based on any comprehensive set of accounting rules or principles. The Company believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company's results of operations, as determined in accordance with GAAP, and that these measures should only be used to evaluate the Company's results of operations in conjunction with the corresponding GAAP measures. Investors 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 (Unaudited) Supplemental Financial Data:
                                                                                            
                (US Dollars in millions)

                                                                                                             ---



                                                                     Three Months Ended                                        Year Ended
                                                                March 31,                                           December 31,



                                                 2019                                        2018                                          2018

                                                                                                                                          ---



                   GAAP gross profit                    $
            
              277.6                                                               $
            
              235.4                   $
        
        976.2



       
              Adjustments:

    ---

        Amortization of
         purchased
         intangible assets                        5.8                                                     4.4                                                                          19.1


        Expenses related to
         IMI acquisition                            -                                                                                                                                66.6



                   Non-GAAP  gross
                    profit                              $
            
              283.4                                                               $
            
              239.8                 $
        
        1,061.9



                   Percent of revenues           27.7                                                    29.3
                                             
          %                                               
          %                                                                 28.8
          %






                   GAAP operating
                    income                               $
            
              76.0                                                                $
            
              63.3                   $
        
        292.8



       
              Adjustments:

    ---

        Amortization of
         purchased
         intangible assets                        9.2                                                     6.1                                                                          26.5


        Expenses related to
         IMI acquisition                            -                                                                                                                                66.8




        Gain from changes in
         holdings                               (1.2)                                                                                                                              (45.4)



                   Non-GAAP operating
                    income                               $
            
              84.0                                                                $
            
              69.4                   $
        
        340.7



                   Percent of revenues            8.2                                                     8.5
                                             
          %                                               
          %                                                                  9.2
          %






                   GAAP net income
                    attributable to
                    Elbit Systems'
                    shareholders                         $
            
              50.5                                                                $
            
              49.6                   $
        
        206.7



       
              Adjustments:

    ---

        Amortization of
         purchased
         intangible assets                        9.2                                                     6.1                                                                          26.5


        Expenses related to
         IMI acquisition                            -                                                                                                                                66.8




        Impairment of
         investment                                 -                                                                                                                                17.6


        Exchange rate
         differences (*)                          8.5                                                     0.2                                                                           3.4






        Gain from changes in
         holdings                               (1.2)                                                                                                                              (45.4)


        Related tax benefits                    (1.2)                                                  (0.8)                                                                        (8.1)



                   Non-GAAP  net
                    income attributable
                    to Elbit Systems'
                    shareholders                         $
            
              65.8                                                                $
            
              55.1                   $
        
        267.5



                   Percent of revenues            6.4                                                     6.7
                                             
          %                                               
          %                                                                  7.3
          %






                   GAAP diluted net EPS                  $
            
              1.18                                                                $
            
              1.16                    $
        
        4.84


        Adjustments, net                         0.36                                                    0.13                                                                          1.42



                   Non-GAAP diluted
                    net EPS                              $
            
              1.54                                                                $
            
              1.29                    $
        
        6.26





                   (*) Exchange rate differences in the first quarter of  2019 included exchange rate differences of $ 9.3 million on lease contracts as a result of the implementation
                    of ASC 842, effective as of January 1, 2019, as well as other assets and liabilities denominated in non U.S. dollars.

Recent Events:

On March 27, 2019, the Company announced that it was awarded an approximately $125 million (approximately NIS 460 million) contract from the Israeli Ministry of Defense to supply fully automatic self-propelled howitzer gun systems to the Israeli Defense Forces. The contract, which also includes the supply of training simulators, will be performed over a 12-year period.

On April 5, 2019, the Company announced that its U.S. subsidiary, Elbit Systems of America, LLC, signed a definitive agreement with Harris Corporation ("Harris") for the acquisition of Harris' Night Vision business for a purchase price of $350 million. The transaction is conditioned on completion of Harris' proposed merger with L3 Technologies, Inc, as well as customary closing conditions, including receipt of regulatory approvals.

On April 9, 2019, the Company announced that it obtained the commitment of several institutional investors in Israel to purchase 1,408,921 ordinary shares of the Company, par value 1.0 New Israeli Shekel ("NIS") per share (the "Offered Shares"), at a purchase price per Offered Share of approximately NIS 472 (approximately $132 million), for gross proceeds of approximately NIS 665 million (approximately $186 million). The Offered Shares were held by the Company as treasury shares.

On April 11, 2019, the Company announced that it was awarded an approximately $30 million contract to supply STYLET, a precise Guided Mortar Munition to a country in Asia-Pacific. The contract will be performed over a two-year period.

On May 26, 2019, the Company announced that it was awarded a $127 million contract to supply vehicular tactical radio systems to the Army of a country in South Asia. The contract will be performed over a three-year period.

Dividend:

The Board of Directors declared a dividend of $0.44 per share for the first quarter of 2019. The dividend's record date is June 7, 2019. The dividend will be paid from income generated as Preferred Income (as defined under Israel tax laws), on June 24, 2019, net of taxes and levies, at the rate of 20%.

Conference Call:

The Company will be hosting a conference call on Tuesday, May 28, 2019 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 Numbers: 1-888-407-2553

Canada Dial-in Numbers: 1-888-604-5839

UK Dial-in Number: 0-800-917-5108

ISRAEL Dial-in Number: 03-918-0610

INTERNATIONAL Dial-in Number: +972-3-918-0610

at: 9:00 am Eastern Time; 6:00 am Pacific Time; 2:00 pm UK Time; 4:00 pm Israel Time

This call will also be broadcast live on Elbit Systems' web-site at http://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 +972-3-925-5925 (Israel and International).

About Elbit Systems

Elbit Systems Ltd. is an international high technology company engaged in a wide range of defense, homeland security and commercial programs throughout the world. The Company, which includes Elbit Systems and its subsidiaries, operates in the areas of airborne, land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance ("C4ISR"), unmanned aircraft systems, advanced electro-optics, electro-optic space systems, EW suites, signal intelligence systems, data links and communications systems, radios and munitions. The Company also focuses on the upgrading of existing platforms, developing new technologies for defense, homeland security and commercial aviation applications and providing a range of support services, including training and simulation systems.

For additional information, visit: www.elbitsystems.com or follow us on Twitter.

Attachments:

Consolidated balance sheets
Consolidated statements of income
Consolidated statements of cash flow
Consolidated revenue distribution by areas of operation and by geographical regions

                                                                                                         IR Contact
               
     :

                                    Company Contact
                
            :


       
                Joseph Gaspar, Executive VP & CFO                     
     
                Ehud Helft


       Tel:  +972-772946663                                               
     
                Kenny Green

                                    j.gaspar@elbitsystems.com              
     
                GK Investor Relations

                     David Vaaknin, VP, Head of Corporate Communications   
     Tel: +1-646-201-9246


       Tel: +972-772946691                                                                              elbitsystems@gkir.com

                                    david.vaaknin@elbitsystems.com


       
                Elbit Systems Ltd.

    ---

This press release contains forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1943, as amended) regarding Elbit Systems Ltd. and/or its subsidiaries (collectively the Company), to the extent such statements do not relate to historical or current fact. Forward-looking statements are based on management's expectations, estimates, projections and assumptions. 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 and uncertainties, which are difficult to predict. 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; differences in anticipated and actual program performance, including the ability to perform under long-term fixed-price contracts; 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. 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)

                                                                               ---



                                                            March 31, 2019                                                December 31, 2018

                                                                                                                   ---

                                                               Unaudited                                                  Audited

                                                                                                                   ---

                                    Assets

    ---


       Current assets:


        Cash and cash
         equivalents                                                                        $
              184,659                               $
       208,479


        Short-term bank
         deposits and
         restricted
         deposits                                                   12,003                                         16,447


        Premises
         evacuation                                                334,125


        Trade and
         unbilled
         receivables and
         contract assets,
         net                                                     1,686,862                                      1,712,915


        Other receivables
         and prepaid
         expenses                                                  194,039                                        199,148


        Inventories, net                                         1,214,498                                      1,141,996



        Total current
         assets                                                  3,626,186                                      3,278,985





        Investments in
         affiliated
         companies and
         partnerships and
         other companies                                           196,481                                        196,180


        Long-term trade
         and unbilled
         receivables and
         contract assets                                           255,284                                        297,145


        Premises
         evacuation                                                 39,231                                        365,436


        Long-term bank
         deposits and
         other
         receivables                                                44,324                                         42,962


        Deferred income
         taxes, net                                                 43,220                                         42,804


        Severance pay
         fund                                                      295,347                                        278,732



                                                                   873,887                                      1,223,259





        Operating lease
         right of use
         assets                                                    359,652


        Property, plant
         and equipment,
         net                                                       695,514                                        686,620


        Goodwill and
         other intangible
         assets, net                                             1,285,659                                      1,261,921



                     Total assets                                            $
              
                6,840,898                      $
         
        6,450,785







                                    Liabilities and Equity

    ---

        Short-term bank
         credit and loans                                                                   $
              167,841                               $
       208,821


        Current
         maturities of
         long-term loans
         and Series A
         Notes                                                     405,059                                         62,546


        Operating lease
         liabilities                                                55,758




        Trade payables                                             708,791                                        776,100


        Other payables
         and accrued
         expenses                                                1,103,404                                      1,081,992


        Contract
         liabilities                                               850,592                                        780,994



                                                                 3,291,445                                      2,910,453





        Long-term loans,
         net of current
         maturities                                                127,346                                        467,649


        Series A Notes,
         net of current
         maturities                                                 58,498                                         56,303


        Employee benefit
         liabilities                                               762,006                                        736,798


        Deferred income
         taxes and tax
         liabilities, net                                           83,738                                         78,677


        Operating lease
         liabilities                                               310,234




        Contract
         liabilities                                               118,561                                        175,890


        Other long-term
         liabilities                                               182,759                                        170,607



                                                                 1,643,142                                      1,685,924





        Elbit Systems
         Ltd.'s equity                                           1,883,856                                      1,832,453


        Non-controlling
         interests                                                  22,455                                         21,955


        Total equity                                             1,906,311                                      1,854,408



                     Total liabilities
                      and equity                                             $
              
                6,840,898                      $
         
        6,450,785


                                                                                    
              
                ELBIT SYSTEMS LTD.
                                                                                        CONSOLIDATED STATEMENTS OF INCOME
                                                                       (In thousands of US Dollars, except for share and per share amount)


                                                                                                       ---



                                                                                 Three Months Ended                                                     Year Ended
                                                                          March 31,                                                        December 31,

                                                                                                                                                ---

                                                    2019                                           2018                      2018

                                                                                                                            ---

                                                             
              
                Unaudited                                                           Audited




       Revenues                                                     $
              1,021,723                                                     $
              818,528                               $
          3,683,684


        Cost of revenues                         744,101                                                    583,104                                                   2,707,505



        Gross profit                             277,622                                                    235,424                                                     976,179




                     Operating expenses:

    ---

        Research and
         development, net                         77,354                                                     68,185                                                     287,352


        Marketing and
         selling, net                             71,832                                                     68,168                                                     281,014


        General and
         administrative, net                      53,640                                                     35,740                                                     160,348


        Other operating
         income, net                             (1,234)                                                                                                             (45,367)



        Total operating
         expenses                                201,592                                                    172,093                                                     683,347


        Operating income                          76,030                                                     63,331                                                     292,832





        Financial expenses,
         net(*)                                 (13,925)                                                  (10,248)                                                   (44,061)


        Other (expenses)
         income, net                             (3,430)                                                        22                                                    (11,449)


        Income before income
         taxes                                    58,675                                                     53,105                                                     237,322





        Taxes on income                         (10,099)                                                   (6,362)                                                   (26,445)


                                                  48,576                                                     46,743                                                     210,877





        Equity in net
         earnings (losses) of
         affiliated companies
         and partnerships                          2,247                                                      3,134                                                     (2,222)




       Net income                                                      $
              50,823                                                      $
              49,877                                 $
          208,655



        Less: net income
         attributable to non-
         controlling
         interests                                 (366)                                                     (243)                                                    (1,917)



                     Net income
                      attributable to
                      Elbit Systems Ltd.'s
                      shareholders                         $
              
                50,457                                         $
              
                49,634                            $
      
            206,738







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

    ---

        Basic net earnings
         per share                                                        $
              1.18                                                        $
              1.16                                    $
          4.84



        Diluted net earnings
         per share                                                        $
              1.18                                                        $
              1.16                                    $
          4.84







                     Weighted average number of shares (in
                      thousands)

    ---

        Shares used in
         computation of basic
         earnings per share                       42,753                                                     42,751                                                      42,753



        Shares used in
         computation of
         diluted earnings per
         share                                    42,756                                                     42,753                                                      42,753





                     (*) Financial expenses in the first quarter of  2019 included exchange rate differences of $9.3 million on lease contracts as a result of the implementation of ASC 842.

                                                                             
              
                ELBIT SYSTEMS LTD.
                                                                                CONSOLIDATED STATEMENTS OF CASH FLOW
                                                                                    (In thousands of US dollars)

                                                                                                ---



                                                                          Three Months Ended                                               Year Ended
                                                                   March 31,                                                  December 31,



                                                      2019                                   2018                      2018

                                                                                                                      ---

                                                             
       
                Unaudited                                                      Audited



                   CASH FLOWS FROM OPERATING ACTIVITIES


                   Net income                               $
       
                50,823                                         $
              
                49,877             $
      
      208,655


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


      Depreciation and
       amortization                                 33,206                                             27,766                                                    118,205


      Adjustment to fair value
       investment                                        -                                                                                                      13,334


      Stock-based compensation                       1,090                                                                                                        1,387


      Amortization of Series A
       Notes premium and
       related issuance costs,
       net                                            (23)                                              (23)                                                      (92)


      Deferred income taxes and
       reserve, net                                  4,072                                              2,612                                                     13,724


      Loss (gain) on sale of
       property, plant and
       equipment                                     (459)                                              (37)                                                     2,080


      Loss (gain) on sale and
       revaluation of
       investments                                     116                                                620                                                   (41,822)


      Equity in net earnings of
       affiliated companies and
       partnerships, net of
       dividend received (*)                         (897)                                           (1,845)                                                    17,929


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


      Decrease (increase) in
       short and long-term
       trade and unbilled
       receivables and contract
       assets and prepaid
       expenses                                     62,262                                             22,659                                                   (89,099)


      Increase in inventories,
       net                                        (72,062)                                          (85,896)                                                 (117,221)


      Decrease in trade
       payables, other payables
       and accrued expenses                       (48,830)                                         (149,991)                                                   (89,956)


      Severance, pension and
       termination indemnities,
       net                                           5,126                                              1,336                                                   (31,363)


      Increase (decrease) in
       contract liabilities                         12,093                                           (14,952)                                                   185,898



      Net cash provided by
       (used in) operating
       activities                                   46,517                                          (147,874)                                                    191,659





                   CASH FLOWS FROM INVESTING ACTIVITIES


      Purchase of property,
       plant and equipment and
       other assets                               (27,140)                                          (25,267)                                                 (102,301)


      Acquisition of
       subsidiaries and
       business operations                         (5,601)                                           (4,000)                                                 (504,447)


      Investments in affiliated
       companies and other
       companies                                   (1,350)                                             (350)                                                   (7,538)


      Deconsolidation of
       subsidiary                                        -                                                                                                     (2,873)


      Proceeds from sale of
       property, plant and
       equipment                                       983                                                233                                                      4,388


      Investment in long-term
       deposits                                          -                                             (141)                                                     (183)


      Proceeds from sale of
       long-term deposits                                -                                                                                                          82


      Investment in short-term
       deposits and marketable
       securities                                 (15,649)                                           (2,835)                                                  (10,361)


      Proceeds from sale of
       short-term deposits and
       marketable securities                        20,584                                             13,484                                                     30,363



      Net cash used in
       investing activities                       (28,173)                                          (18,876)                                                 (592,870)





                   CASH FLOWS FROM FINANCING ACTIVITIES


      Proceeds from exercise of
       options                                           -                                                48                                                         48


      Repayment of long-term
       loans                                         (893)                                              (14)                                                     (775)


      Proceeds from long-term
       loans                                             -                                           340,000                                                    342,528


      Repayment of Series A
       Notes                                             -                                                                                                    (55,532)



     Dividends paid                                     -                                                                                                    (75,305)


      Change in short-term
       bank credit and loans,
       net                                        (41,271)                                         (114,863)                                                    242,652


      Net cash (used in)
       provided by financing
       activities                                 (42,164)                                           225,171                                                    453,616





                   Net increase (decrease)
                    in cash and cash
                    equivalents                   (23,820)                                            58,421                                                     52,405


                   Cash and cash equivalents
                    at the beginning of the
                    year                           208,479                                            156,074                                                    156,074



                   Cash and cash equivalents
                    at the end of the period               $
       
                184,659                                        $
              
                214,495             $
      
      208,479





                   * Dividend received from
                    affiliated companies and
                    partnerships                             $
       
                1,350                                          $
              
                1,289              $
      
      15,707


                                                                                                       
         
                ELBIT SYSTEMS LTD.
                                                                                                           DISTRIBUTION OF REVENUES

                                                                                                                      ---




       
                
           Consolidated Revenues by Areas of Operation:

    ---



                                                          
              
        Three Months Ended March 31,                                                    Year Ended December 31,


                                                                                 2019                                                        2018                                            2018



                           
           
                $ millions                             %             
       
             $ millions                       %   
          
                $ millions              %

                                                                                                                                                                                                  ---

        Airborne
         systems                                     368.3                                     36.1                                               311.0                                 38.0          1,470.1  39.9


        C4ISR systems                                243.6                                     23.8                                               275.2                                 33.6          1,130.1  30.7


        Land systems                                 303.4                                     29.7                                               114.4                                 14.0            649.1  17.6


        Electro-optic
         systems                                      77.9                                      7.6                                                88.0                                 10.8            333.9   9.1


        Other (mainly
         non-defense
         engineering
         and production
         services)                                    28.5                                      2.8                                                29.9                                  3.6            100.5   2.7



                     Total                         1,021.7                                    100.0                                               818.5                                100.0          3,683.7 100.0



       
              
           Consolidated Revenues by Geographical Regions:

    ---



                                                       
              
           Three Months Ended March 31,                           Year Ended December 31,



                                                                                 2019                               2018                                            2018



                         
          
                $ millions                                %             
     
     $ millions        %   
          
                $ millions            %



        Israel                                    261.9                                        25.6                      185.6                                 22.7          740.2  20.1


        North
         America                                  275.6                                        27.0                      208.7                                 25.5          979.2  26.6


        Europe                                    196.5                                        19.2                      152.7                                 18.7          737.1  20.0


        Asia-
         Pacific                                  216.6                                        21.2                      173.6                                 21.2          791.8  21.5


        Latin
         America                                   31.8                                         3.1                       40.2                                  4.9          192.4   5.2


        Other
         countries                                 39.3                                         3.9                       57.7                                  7.0          243.0   6.6



                   Total                        1,021.7                                       100.0                      818.5                                100.0        3,683.7 100.0


View original content:http://www.prnewswire.com/news-releases/elbit-systems-reports-first-quarter-2019-results-300857186.html

SOURCE Elbit Systems Ltd