Elbit Systems Ltd., the international high technology company, reported today its consolidated results for the quarter ended September 30, 2020.
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: “I am pleased with the third quarter results, particularly with the improved operating performance in this challenging COVID-19 environment and despite the pandemic's impact on our Commercial Aviation business, which resulted in a $60 million non-cash impairment of assets in the quarter. We are encouraged by our backlog of orders and the volume of opportunities we are facing around the world, which provides us with confidence in the Company’s future prospects.”
Third Quarter 2020 Results:
Revenues in the third quarter of 2020 were $1,134.2 million, as compared to $1,101.2 million in the third quarter of 2019.
Non-GAAP gross profit amounted to $302.3 million (26.7% of revenues) in the third quarter of 2020, as compared to $290.0 million (26.3% of revenues) in the third quarter of 2019. GAAP gross profit in the third quarter of 2020 was $237.4 million (20.9% of revenues), as compared to $286.2 million (26.0% of revenues) in the third quarter of 2019. The decrease in GAAP gross profit in the third quarter of 2020 was a result of non-cash expenses related to impairment of assets and inventory write-offs due to the impact of COVID-19, in the amount of approximately $60 million. These expenses were eliminated in the non-GAAP results.
Research and development expenses, net were $91.3 million (8.0% of revenues) in the third quarter of 2020, as compared to $79.5 million (7.2% of revenues) in the third quarter of 2019.