Q2 2020 Elbit Systems Ltd Earnings Call
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Ladies and gentlemen, thank you for standing by welcome to Elbit Systems' second quarter 2020 results Conference call. All participants are present in listen only mode. Following managements formal presentation instructions will be given for the question answer session. As a reminder, this.
The conference is being recorded.
All received by now the company's press release that is available in the news section of the company's website Www Dot Elbit systems Dotcom I would now like to handover the call to Rami Myerson Elbit systems Investor Relations Director Rami. Please go ahead.
Thank you Tony Good day, everyone and welcome to our second quarter Twentytwenty earnings call.
On the call me today.
Democracy, our president and CEO and Yossi Gaspar, our Chief Financial Officer.
Before we begin I would like to born talks that the safe Harbor statement in the company's press release issued earlier today well surface to the contents of this conference call.
Yes, we will begin by providing a discussion of the financial results followed by putting we'll talk about some significant events during the quarter and beyond.
We will then turn the corner over to a question answer session with that I would like entre tenneco over to Yossi Yossi. Please.
Thank you Rami.
Hello, everyone and thank you for joining us today.
The results will fall a second quarter reflects that is easier to shop Elbit systems and the actions. We are taking full address and mitigate the backfill the Colby 19 and dynamic on all activities.
As we discussed in our earnings call well first quarter results.
Got one direct that safety measures supply chain deletion traverse fictions continual cost some of the stopped choose to all business, including the ability to attend in person except us inspections.
Oh subsidiaries around award has helped support DC inspections, where possible.
We continue to monitor the situation closely and other adhering to the structures of the governments of the various countries in which we operate.
The extent of the impact of the Colby 19 on the company's performance will depend on future developments, including the duration and the spread of the pandemic. The measures adopted by governments to limit the spread of the pandemic endo, resulting actions that may be taken by our customers and our supply chain.
Turning now to our results.
Yes, we do every quarter, we will provide you always Bowles hall regular GAAP financial data as well as certain supplemental non-GAAP information.
We believe that this non-GAAP information provides additional detail to help understand the performance of the ongoing business you can find older detailed GAAP financial data as well as the non-GAAP information and then any conciliation in today's press release.
Overall, we are satisfied with our performance in a challenging environment revenues, some backlog increased year over year.
And slightly in comparison to the previous quarter, the improvements in profitability and cash flow, reflecting increased focus on operations, including the cost control measures that we implemented to mitigate the financial impact of the Colby 19 pandemic.
Our backlog of 10 billion, an 800 million provides good visibility entity flex the long term nature of our business.
It generally takes time to finalize contracts in our industry, but once we booked a often provide many years old revenues.
I would like to note three events that impacted our results into quarter.
On May 19, we announced a 70 million investment by Charlesbank capital partners in cyber beats, our commercial cyber subsidiary.
And with received 48 million for a portion of our shifting cyber beat and the balance of 22 million was invested in cyber be.
Following the investment and the sale of our holdings Elbit systems is now a minority shareholder.
This transaction generated the healthy profit that we reported in other income.
I know that we have retained all our military cyber activities within Elbit systems.
And the revenue Saudi Boughten under the Seaport subsystems line.
In May we completed the sale and leaseback of towards Elbit systems. So for Americas facilities. The profit from this transaction. This was reported in other operating income line.
During the quarter, we restructured and Israeli joint venture that we had four was a foreign company ended the quarter. The 4.4 million noncash write off reported earnings also creates company some partnership.
The remaining assets and employees have been incorporated into LSB and going forward will be reported as part of Elbit systems ongoing activities.
The impact all all three these transactions was excluded from our non-GAAP results due to be a nonrecurring nature.
I should also note the acquisition of Elbit night vision from as three Harry's closed on September 15, 2019, and was therefore consolidated into our income statement commencing the date of the acquisition.
I will now highlight and discuss some of the key figures and trend so five financial results.
Our second quarter Twentytwenty revenues were 1 billion in $79 million in terms of revenue breakdown across our Airseal cooperation land systems sales accounted for 27% of the total sales and increased year over year, mainly from the same offer through systems and precision munis.
Just for you as customers.
Electro optics accounted for 12% of total sales and increased year over year, mainly due to the acquisition of Elbit night vision.
Airborne systems at 36% of sales declined year over year, primarily due to lower commercial avionics is going to us.
Our diverse geographic revenue base is important to the long term sustainability of our business in the quarter North America at 34% of total revenues was the largest geographic area followed by Israel at 25% Asia Pacific at 21% in Europe at 15%.
Gross in North America was primarily due to land systems saves as mentioned in the acquisition and the acquisition of night vision in the U.S.
For the second quarter, the non-GAAP gross margin was 26.5% down from 27.7% in the second quarter last year.
The client reflects the business mix as well as additional pandemic related costs, we incurred during the quarter to facilitate the safety or employees they maintain business continuity.
GAAP gross margin was 26% compared with 27.1 person for the second quarter over last year.
Second quarter non-GAAP operating income was linked 92.7 million or 8.6% of revenues compared with 89.6 million or 8.4% of revenues in the second quarter last year.
As cost control measures helped to offset the impact of the cobbett 19 on the gross profits.
GAAP operating income for the quarter was 117.1 million versus 80.3 million into quarter last year and includes a profit from the sale and leaseback of Elbit systems of America facilities as mentioned previously.
The operating expense breakdown in the quarter was as follows net R&D expenses at 7.2% of revenue.
Similar to the second quarter last year.
Our investment in R&D enables us to maintain and build out technological leadership and underpins our long term prospects and therefore, we increased our investment in R&D in absolute terms during the quarter.
Marketing is selling expenses declined to 6.2% of revenues versus 6.9% last year due to reduced travel and participation in trade exhibitions.
DNA expenses were 4.8% of revenues versus 5.4% last year.
The lower Gionee expenses reflects some of the cost control measures, we implemented to mitigate the impact of the quality 19.
Financial expenses for the second quarter of Twentytwenty was 16.5 million compared with 20.3 million last year.
Other income of 30 million includes the profit generated by the state of Elbit shares in cyber breed and equity in net earnings of affiliated companies and partnerships was a loss of <unk> point Fourmillion. Following the write off of a 4.4 million investment in an affiliated companies.
As mentioned previously.
The effective tax rate in the second quarter of Twentytwenty was 20.8% higher than the 17.6% tax rate during the second quarter 2019, due to the higher tax rate on capital gains we booked in the quarter.
During the second quarter of 2019 Elbit system. The raised 185 million through the sale of Treasury shares to institutional investors in Israel. This increased our share count by about 3% to 44.2 million shares having the small corresponding impact on our.
Earnings per share relative to the second quarter of 2019.
Our non-GAAP diluted earnings per share was $1.56 cents in the second quarter Clampitt was $1.46 cents in the second quarter last year, GAAP EPS was $2.02 versus $1.22 cents last year.
Our backlog of orders as of June 30, Twentytwenty was 10.8 billion 1 billion higher than the backlog at the end of the second quarter, 2019, and 14 million higher than that debt. The end of the first quarter of Twentytwenty.
Proximately, 55% of the current backlog is scheduled to be performed during the remainder of Twentytwenty end Twentytwenty, one and the domain two scheduled for Twentytwenty and beyond these ratio is broadly similar to that of the second quarter last year.
Operating cash flow for the quarter was a positive or 179 million compared with the negative or 158 million in the same quarter of last year.
Our cash flow into quarter reflects the increased focus on working capital management, including improved collection from our Israeli and the international customers as well as more disciplined inventory management lower capital expenditure also supported total cash flow into quarter.
On June 30, we paid the finally interest and principal payments for the serious 80 notes.
Elbit system continues to imagine manage it balance sheet conservatively. Besides our cash we have access to multiple credit lines that can provide us with additional liquidity.
The board of directors declared a dividend of 44 cents per share for the second quarter of Twentytwenty.
I will now turn the call over to Mr. Machlis Butzi. Please.
Thank you will see I would like to talk by thinking a bit systems employees long goal for the continued hold war judging from.
We continue to moving towards the valuation Colgate and then in London.
Our royalties were men to public safety for Louise mean fin business continuity in both repligen and leverage our ability to assist in both Dick.
The action will initiated two armed with what we've done.
And mitigating.
The impact ongoing.
Moving to the business and the quarterly results. The second quarter included in number of digital marketing and important developments across different.
Our operations.
Space is relatively more.
Clearly important Paul will fall business results potential.
Based related R&D also contribute to the development for additional couple abilities in application, including Airborne digital system advanced that it will optics.
In communications.
In July is were launched into or optics extreme electro optic largely coming from sarcoma.
The gone from on the front line from the fact that we've developed and most affected by Elbit systems.
And with the award do in developing high performing with from.
I'll smaller and lighter than our competitors.
We have fold over the long based from a growth to government and commercial customers on Google.
At the end of 2018.
First normal thought the like none.
Fourth successfully launch into all with the commercial communication failed than Arnaud satellite brutal.
In developing manufacturing and deploying based ILEC book to Bill in satellite communication.
Mary Darren is an additional area.
Hi, good growth portfolio capabilities in July we received $15 million corn for form in the southeast Asia to equip the issue with an integrated intelligence capabilities that enable them to perform complex requirements of mission generating enough.
Operationally picture for the move.
And on the will to domain.
Under this program Elbit systems, Rueful, polite and our route system, including.
Good morning intelligence systems neighbors tactical communication intelligence system, and Jimmy capabilities electro optical payloads Harlan mounted in pout active passive form of underwater communication system Chromebook management system.
This quarter.
Hey, good indication of the breadth.
Folio Mary thank capabilities that are based on decades operational experience with the Israeli Navy.
Include.
In operational unmanned with.
Recently participated in broad conducted for the UK and would deem to examine that also produced on the unmet that fits with our four onto from what we will fill activity is will it advanced form of an underwater, which do communication system for our Canadian subsidiary give.
Victims of mortgages.
The contract also highlight the growing demand for our neighborhood and other defense capabilities from customers in Asia Pacific due to elevated go vertical tension in the area.
The you with is our largest markets ended 2019, we reported more than 1.2 billion.
In the way.
In recent months, we have seen sustain momentum across the portfolio.
We supply advanced viewing and helmet mounted base for the youth blocking including 35 50.
15 and 15.2.
C 17 and fuel.
Transport aircraft as well as let Coke funeral Apache helicopter.
The large coupled of announced by the you. If you will be in recent months for a number of.
Sure Boulevard.
You revenue.
But our not currently included.
We continue to upgrade our systems on this platform with new technology.
Next generation of J him to helmet mounted display system for the F 16 feet. In 16 Bloke 17 72 is currently undergoing flight that following selection by a number of international customers.
We continue to provide original advanced border protection solution for the U.S. Department from fuel.
Our total solution.
Include especially if you look relocate double in mobile for both system and granted the consistent.
These systems that are pretty good a longer to solve than you have Bordeaux include come under control for the and I often both income growth radars and communication systems and provides autonomous Fisher intelligence in machine noon.
In our youth medical equipment subsidiary games.
Develop them in a picture of advanced medical installment in collaboration with many of the leading medical device in life science companies.
KMT partners with each customer to develop imminent schedule innovative medical devices.
Leveraging multi discipline engineering team.
Broad experience.
Steve in areas, including hardware and software design will boutique optic fluidic instrument seamless integration onto contract manufacturing and developing they'd be agreement.
The covenant in pandemic has increased demand for Ken Steve.
Total method that moves the product and engineering capabilities.
Medical equipment companies mobilized mobilized to fight the funding.
We supply a broad range of renting equipment and services to customers around the world.
It is a leading provider of twinning simulative for.
Nivo and grown platform.
Israel different office in June we received 38 million go long contract from the Israeli munis build dispose of returns to provide operation maintenance and logistic services for the Israeli.
For.
Pardon me fixed on domestic revenue.
This concludes follows decade during which Elbit systems provided services to the Israeli.
Elbit systems provide a range of training in logistics services for the Israeli airport.
Flight that product.
These include.
Interconnected move to corporate mission training center for credit lines, the entry for fixed revenue.
Provides a realistic simulated button, but to food training as well as emergency training on the ground.
The cut through in with that it'd be embedded mutual of unit or a rock.
Enable.
Advanced mission operation training on three aircraft by generating accumulations food.
Provides good sort of Unix weapons in central and synthetic environment to increase blending effectiveness and also significantly reduce cost.
Good systems provide comprehensive training solutions, Houston, and logistic services to customers onto.
Our affinity joint venture with KBR in the UK provide procurement operation and maintenance services for three aircraft fleet.
Okay. The UK oil go forth right. The card to me, it's part of the military flight training system affinity support 20 pipeline that is more effective and efficient and new community group that outfit food fulfill duties.
Elbit selection by point to provide the view warnings and printing capabilities for the US for the segment revenue was an important validation of our training and simulation capabilities.
We believe that admitted to either on the will all key to expand the simulators and training capabilities to provide more realistic trending.
Thats good to remove the short due for a wide range of scenario of at the locals.
In summary, Elbit systems has continued to work hard in recent months to maintain deliveries to our customers and protect our employees.
Our backlog continues to provide us with significant visibility than we've continued to see significant potential loans award for our leading high technology solution.
As we walk to generate value for all of our decor.
Employees, our customers of topline growth and to fourth for you our shareholders and we said we'd be happy to take your questions.
Thank you.
Ladies and gentlemen at this time, we will begin the question and answer session. If you have a question. Please press star one if you wish to cancel your request. Please press star too. If you are using speaker equipment kindly lift the handset before pressing the numbers questions will be pulled in the order. They are received please standby.
While we Paul for your question.
Sure.
The first question is from Shayla tie you, though of Jefferies. Please go ahead.
Good morning is actually going on.
Thank you for the question.
Basis dividend back to 44 cents in the quarter.
So how do you think about free cash flow in the second half how comfortable are you.
With that and.
How much of.
About one specialty generated in the quarter, which.
Really government.
Verses cooperation.
Hi.
Well actually ask you have seen we have quite a lot of where experience quite a lot of fluctuations in our cash flow doing the past quarters.
Some of that correlate that with the payment.
From the Ministry of Defense here in Israel, Fortunately, we were successful to get the payments.
In the second quarter, and we're looking forward to.
To generate.
Cash flow in the second half of the year.
As well.
Having said all of that.
We all outerwear at about the pandemic around the world and.
About the fact that here in Israel.
The budget for Twentytwenty is not yet finalized, but we're optimistic that we'll be able to handle that.
Okay. Thanks Thats helpful.
The next question is from Pete Skibitski Atlantic Global Please go ahead.
Yes, Hello, but you'll see in Rami.
You guys are well.
Thank you one question I had.
Question on the revenue by regions I just noticed.
Asia Pacific revenue down kind of sharply this quarter.
Which I thought was a little surprising because you want a lot of you know fairly sizable contracts in Asia Pacific region. So.
I was just wondering is this maybe a timing case, where the new contracts haven't ramped up yet.
The old ones that ramp down or is there some impact of coal bid.
In particular in Asia Pacific region.
I guess I'm, just wondering maybe clarify that.
Yeah, I would I would say the following the first of all year, we did suffer suffer to some extent not materially.
Some disruptions.
In this area.
No.
Acceptance testing by customer of our equipment and so on but this was not the material impact.
Regarding the major contract that we've got into first quarter.
It does take some ramp up to prepare for production and lower start delivering that plotting the towards the end of this year and during the next year in the following year. So this is something that takes time until we see the transformation from new business to two revenues.
The further comment is that one.
31, or two or programs that we had last year, we quite of them. We finished delivery during the first quarter. So we did not have dating back during the second quarter of this year I should in general the recommend to look at our multi quarter.
Performance and one quarter.
Shouldn't be very characteristic about how we operate.
Okay. That's very helpful. I appreciate that you all see at that.
Separately revenue wise on commercial avionics.
Obviously.
We've seen Boeing and Airbus take rates down.
Going forward and co which has impacted.
To a lesser degree, but sold business in general aviation as well I'm just wondered if you could quantify for US you know the decline you saw in the quarter from commercial avionics versus business in general avionics.
I would say the following that means the defense the oneq.
Did perform well.
And in line with the general trend of the business of the company the commercial part.
It is not a huge.
Part of our business yet.
We did during this quarter.
Some of the revenues that.
We performed compared with the previous quarter.
Lower.
In the commercial.
The onyx deliveries.
We did see in the beginning of the third quarter, some upside coming back but again this is very fluid and I would not.
There are two to do some expectations on the spot we are our commercial avionics is mainly focused on the businesses business jet.
So and not that much on the wide body.
Airplanes. So we are affected but not at the level that the general industries affected.
Okay very helpful. Thanks, I'll ask one more and then I'll get back in queue I'm not sure theres, others in Q, but Tom.
I guess I'm wanted to think about the timing of margins.
In the back half a year, if we look at the second half 2019, you had a decline in March 3rd quarter, and then a sharp ramp up in the fourth quarter I'm, just wondering if you're expecting that similar kind of dynamic in the back half of 2020.
Well as you know, we do not give guidance however.
Things that.
We do expect to have some recovery on the gross profit level for the second half I.
I think that the performance on the operating profit. This this quarter the in general for the first half was quite good and we do not expect any significant change on that thought.
Okay, great. Thanks, so much guys.
Thanks.
The next question is from Dina course shown out of leader capital markets. Please go ahead.
Hi, guys.
Good.
My question is.
Feeling generally.
In the defense market is the right.
The last couple of months.
And then.
Right now it depends it depends.
Tony as well as you probably know there's no different budget no budget. So.
You is off from delays in new orders however.
In the us that will live in the UK.
And with Euro as what is in Australia, we see growing.
Growing demand and we'll see more corn crops and this is mainly to support the local economy to create a module.
Just to remind all of cost we have.
Doesn't have fulfilled through the all over the globe and helps US right now to communicate with all customer, but also helped their local government too.
Okay.
Creates multiple and.
And before the local economies.
And in some areas.
We see some.
We see some cuts because of the budget Bluetooth.
The it to.
Relatively north in many cases.
And we go slow growing tension.
Security tension and several other places around the globe, which generate more demand.
For products.
Altogether will we have a wide portfolio and.
Many technologies and many solutions and will spread in many countries.
And with dozens of through the roof.
Or together with great stability.
Right and we have also a strong betler or more $111 billion, which help help us.
We'll take the right measure and to adapt to changing going into the turned it into markets.
Okay. Thank you Greg.
Thanks cleaner.
The next question is from Lf freed up Bank Leumi. Please go ahead.
Hey, good afternoon. Thank you for taking my question and the question is actually about day next okay.
Next the backlog and came back to excite me.
Nick aim I think we know from my experience that Hey, plus.
Right, Okay that makes a same.
More dreaming, they or sometimes often driven by upgrades and okay.
A.
Budget shrink and day.
Airborne systems they are.
Upgrade today and.
Maybe some then they.
Okay great.
Well actually.
Terry.
I think it's going to happen and say if you do what kind of.
Okay.
You need to be taking because that's what let's say.
In recent years.
Hi, Sheila.
As you well as you know.
Our portfolio can support the new platforms as well is the upgrading the existing platforms. We are all.
We continue to provide the new op unit.
Oh boy for Newport, the U.S. as well as in other countries and we continue to upgrade the existing platform global who will.
The same is true also for lend the Portland application.
Continue to provide the new electronics.
In the new systems.
Two new grown platforms and we also all we are also.
The balloon.
Upgrading existing platform in the market. So we already outperforms the portfolio.
And we are ready for any decision and that our customers who will take.
I also want to 'em mentioned.
Our portfolio can help customers to food cost.
And we'll give you two examples first the common control application and autonomous system.
Although doing more of bringing more operational value.
With less people.
And as I was doing it much more efficient.
That's one example, and another example is similar to one training system.
Two instead of producing.
Room flights and do the 10 callers in the food.
Our providing similar to the building right cool.
Two we played a active all of the in view of on the ground and once again hotel custom move to profit per themselves with.
Yes.
With that core for folks for sure.
So we are so we have a wide portfolio, we can for pool.
Most of the demand.
In the market will following the demand.
Well equipped to fall customer.
Customers globally.
And.
We are adopting also to the changing requirements in the markets.
I am not.
Good day simulators.
And I think there will be even.
I mean given factor.
As time goes on and the question actually if if we will see Tom may and shrinkage of the budget shortfall for why did you say almost inevitable a list and some of the country.
Hey, guys out there, saying okay.
Okay.
It targets that you and Mark.
I see growth.
You have to be and maybe we can see there I didn't catch to be itself into a big part hey, let's.
Say it would be to staying.
The same point key 20, and Twentytwenty Q, beginning when confronted bringing that that's what the general way.
Position.
On the current oriola, and we see growing demand.
So our land portfolio.
Just to remind all of our food combined capabilities for my mind.
We agreed to with Elbit capabilities and by combining this capability with the we're able to provide guided munition.
To our customers.
Different fourth of waterfall and fourth and full navies along the globe.
Growing demand for that.
And we have really struggled solution.
And.
This and I feel to potential zone and.
And that's one area and the booking of all to upgrading.
Upgrading existing platform, that's an area, where I have my portfolio is very relevant active protection system as well as all more an additional stuff our very relevant for the four upgrade programs as well.
We see a growing demand for our I'm Mike.
For the I'm on activity.
Two.
Joe is you.
I don't remember, but to when we acquired I am I live in two years ago.
I am I view, it or not we stick in about 15% in international markets something new that two days are doing more than 40% or would you abroad.
And the.
And we are working one phone efficiency.
So, we're bringing more remote business, where mine, we combined capabilities between the between.
They'll be it and Mike.
And we do more export and we are improving good profitability.
Right and we're very happy with this acquisition.
Okay, that's great to hear and one more question.
Both active and talking about active system just at the protection system just to remind them of course, we won.
The protection.
Competition you in Israel.
So the aided by a.
All more vertical over the idea if there's a ton we will we will provide you have people to consistent fortys thoughtful we.
We will chosen.
But by the US all me to provide the ft protection system for the Bradley.
Limits.
Earlier and also in the Netherlands.
And with and the use a lot of synergy.
When elbit control capabilities, but the management capabilities site couple abilities, and I am I acted protection capabilities as well.
Supports new platforms as well as up with up to the too.
And well that's great to hear another question I think it refers to both yeah.
I see you're right quite catch and just say core churn and say if it just being a prudent conservative say is facing a covidiens, okay, and just times or do you have to say.
Some kind of acquisition targets or just.
We'll be prepared something curious because say that there might be hey, you maybe find something more interesting I am sorry Corporation in the into next year capital shares.
Cash is.
A very important target for us.
Reducing working capital, increasing cash balance and improving our cash position.
This is a very important.
During all times, specifically during the times that we are living in the corporate 19 environment. They want to make sure that we have enough cash enough liquidity to run our business and that is what we do we had several quarters.
In the past that were quite low in our cash performance I think we did catch up very nicely. This quarter and we continue to emphasize put a lot of the emphasis on the cash performance of the organization in General I would also answer the second part as you.
Probably know our strategy for many years.
It does include.
Acquisitions, we did quite a lot of them.
And of course, most will essentially all of them. We did was cash so say if we have some specific targets on the next months I would say no, but we definitely that is part of our all time strategy.
To acquire and grow the business through M&A.
So you are being prudent but also ready for anything interesting comes across.
[music].
Right.
Okay. Thank you and good luck.
Thank you.
The next question is a follow up question from Pete Skibitski Atlantic Global. Please go ahead.
Yes. Thank you just one sort of two part follow up on cash flow.
[noise] advance it looked like they were advances that were really strong this quarter and for the whole first half that was great to see I don't know if there is limited to a couple of programs. In particular, you don't get me or maybe you know the Asia Pacific that we talked about earlier, but I was wondering if you could give us any color on on the strong advances and then the second.
Or is just.
It looks like receivables continue to build.
Any expectation for the second half of the year on receivables are declining thanks.
Okay regarding the cash I think during previous calls we did the explain that.
We moved from a situation that Oh, we saw increased increased working capital in the company and we did the change some of our policies to improve the cash generation.
This this change in policy.
Has resulted in.
Working with our customers.
For improved payment terms improved for us payment terms, which includes advances.
Down payments.
For the various contract said that we are awarded.
I think that we do see now the actual.
Result of this strategy.
And.
We did that come through two significant growth in the advances of the new contracts that we have received.
So ends up going forward, we continue to put emphasis on this element on the cash element.
And hopefully that will continue for the future as well it of course depends on the business environment and the capabilities of the customers and their budgets to provide us with dish advances I think this quarter was a very good one from that over that aspect.
The receivables in receivables are.
Had have grown and that is related with the progress in the various programs. The various contracts that we have liked to remind you that some of these receivables are what we call.
Bill to receivables because according to the new accounting rules.
We recognize revenues.
On the input method on the cost input method and therefore.
As we progress on the program, we recognize the revenue.
And then will they will be transformed of course in cash in due time. According to the payment milestones have diminished contact with our customers.
Okay. Thanks, so much from color.
Thanks Pete.
If there are any additional questions. Please press star one if you wish to cancel your request. Please press star to please standby, while we pull for more question.
There are no further questions at this time before I ask Mr. Machlis to go ahead with its conclusion, concluding statement I would like to remind participants that a replay of this call will be available two hours after the conference and.
In the U.S.. Please call 188878 to four to nine one in Israel. Please call 039 to five five 900 and internationally. Please call nine seven to three nine to five five 900, a replay of this call will also.
I will be available at the company's website www Dot Elbit systems Dotcom Mr. Machlis would you like to make her concluding statement.
Thank you I'd like to 10 Colo Blue is again for the continued hard work, particularly in this challenging time.
So everyone on the call during Q4, joining us today and for your continued support and interest in our company.
As a good day and goodbye.
Thank you. This concludes the Elbit systems Ltd second quarter 2020 results conference call. Thank you for your participation you May go ahead and disconnect.
Okay.
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