Elbit Systems Ltd. Foresees $52 Million in Non-Cash Expenses for Q4 2023

HAIFA, Israel, March 5, 2024 /PRNewswire/ -- Elbit Systems Ltd. (NASDAQ: ESLT) (TASE: ESLT), a leading player in the defense and homeland security market, made a public announcement today concerning its financial forecast for the fourth quarter of the prior year. The company is set to record substantial non-cash charges that will likely amount to around $52 million. This forecasted fiscal impact stems from the need to write off inventory and contract assets linked to a subsidiary that has underperformed and is no longer aligned with Elbit Systems' broader strategic objectives.

The lion's share of these charges, approximately $34 million, is attributed to uncollectible balances from contract assets connected to a project that has since been abandoned. Such financial adjustments will be reflected under the 'general and administrative' segment in the company's consolidated income statement. The burden of these unanticipated charges underscores the challenges faced in the closure of projects that fail to meet the expected profitability thresholds or strategic fit within the broader company vision.

Additionally, a further $18 million is anticipated to impact the accounts due to the restructuring process and cessation of the subordinate company's activities. These restructuring expenses will appear in the 'cost of revenues' category of the income statement. However, it is crucial to note that these particular expenses shall be dismissed from the non-GAAP results, as they are classified as non-recurring and thus not reflective of the company's standard operational expenses.

The comprehensive repercussion of these outlays on Elbit Systems' financial outcome for the fourth quarter, as well as the financial year as a whole, will be encapsulated in the earnings release anticipated to be published in March 2024. Shareholders, investors, and market analysts eagerly await this document to understand the financial health and trajectory of the company fully.

An Overview of Elbit Systems Ltd.

Elbit Systems Ltd. is internationally renowned for its high-tech solutions in defense, homeland security, and the commercial sector. The corporation, inclusive of Elbit Systems and its subsidiaries, has carved out a significant presence across land, aerospace, and naval domains. The company is well-recognized for its innovative contributions in command, control, communications, computers, intelligence surveillance and reconnaissance (C4ISR), as well as its pioneering unmanned aircraft systems, advanced electro-optics, electronic warfare suites, signal intelligence systems, and the deployment of advanced communications and data links.

This multinational powerhouse also dedicates resources to enhancing current military platforms and dedicates considerable effort to developing new technologies targeting defense and security sectors, alongside a variety of commercial applications. Elbit Systems does not stop at product creation; it also offers a plethora of support services, which include generating state-of-the-art training and simulation systems for different fields of operation.

Those who desire to delve further into the company's extensive offerings and achievements can navigate to the official Elbit Systems website, or connect with their social media presence on platforms like Twitter, Facebook, YouTube, and LinkedIn, which provide a window into Elbit Systems' corporate ethos and the latest news updates.

Visit Elbit Systems' website Follow Elbit Systems on Twitter Visit Elbit Systems' Facebook page Watch Elbit Systems on YouTube Connect with Elbit Systems on LinkedIn

Key Contact Information

For more thorough insights into the company's finances and other corporate inquiries, potential investors and journalists can reach out to the following executives:

Dr. Yaacov (Kobi) Kagan, Executive Vice President and Chief Financial Officer, can be contacted via phone at +972-77-2946663 or by email: Email Yaacov (Kobi) Kagan
Rami Myerson, Vice President of Investor Relations, is reachable by phone at +972-77-2948984 or via email: Email Rami Myerson
Dalia Bodinger, Vice President of Communication & Brand, can be contacted at the phone number 972-77-2947602 or by email: Email Dalia Bodinger

Forward-Looking Statements Disclaimer

It's pertinent to disclose that Elbit Systems Ltd.’s announcement includes forward-looking statements within the context of laws such as the Securities Act of 1933, the Securities Exchange Act of 1934, and the Israeli Securities Law of 1968. These statements are not encapsulations of historical data; rather, they are predictions based on the current expectations, projections, and assumptions held by company management regarding future events. These forward-looking statements qualify under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

The nature of forward-looking statements inherently involves risks, uncertainties, and assumptions that could cause actual results to diverge materially from those projected. Among the array of factors influencing such discrepancies are the duration and scope of consumer contracts, the influence of government regulations and budgetary priorities, and the ever-changing economic and political landscapes of significant market regions like Israel, the United States, and beyond.

Further complexities include the influence of global health challenges and macroeconomic shifts, the potential upending of the status quo due to geopolitical events in Israel, and fluctuations in the competitive arena. Legal and regulatory proceedings also play a part in the myriad of considerations that could reshape Elbit Systems Ltd.'s projected outlook.

Amid such uncertainties, Elbit Systems exercises caution in offering projections, knowing fully well that future profitability and achievements are not certified guarantees. The latest comprehensive details on these matters lay within Elbit Systems Ltd.'s most recent annual report on Form 20-F, filed with the U.S. Securities and Exchange Commission.

As stewards of transparent communications, Elbit Systems Ltd. holds fast to updating forward-looking statements as new information becomes available but simultaneously holds no obligation for the perpetuation or revision of any foresights after the date of their initial publication. Enshrined in the spirit of the aforementioned safe harbor provisions, neither the company's management nor any affiliated entity assumes the onus for the complete accuracy and finality of any forward-looking statements made herein.

Trademark and Copyright Notice

Within this communication lies various mentions of Elbit Systems Ltd.'s proprietary assets. The company's name, logo, brands, products, services, and process names are all reaffirmed as trademarks or service marks of Elbit Systems Ltd. or its affiliated companies. Conversely, brand, product, service, and process names belonging to other entities that appear within this release are the respected trademarks of their respective holders.

Elbit Systems Ltd. clarifies that any reference or use of a product, service, or process other than those offered by Elbit Systems Ltd. does not in any capacity imply endorsement, approval, affiliation, or sponsorship of that product, service, or process. Moreover, this release is not to be interpreted as conferring tacitly or otherwise, any license or right under any patent, copyright, trademark, or other intellectual property right of Elbit Systems Ltd. or any third party, save for those expressly provided within this communication.

The distinction between the proprietary interests of Elbit Systems Ltd. and others is made to prevent assumptions that might be drawn from generic references within this text. This nuanced clarification serves as a cornerstone to uphold the integrity and ownership of the company's intellectual and commercial resources.

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SOURCE: Elbit Systems Ltd.