Elbit Systems Ltd. (NASDAQ:ESLT) Q4 2019 Earnings Conference Call - Final Transcript

Mar 25, 2020 • 09:00 am ET


Elbit Systems Ltd. (NASDAQ:ESLT) Q4 2019 Earnings Conference Call - Final Transcript


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Welcome to the Elbit Systems Fourth Quarter and Full Year 2019 Results Conference Call. [Operator Instructions]. You should have all received by now the company's press release. If you have not received it, please contact Elbit's Investor Relations team at GK Investor and Public Relations at 1-646-688-3559 or view it in the News Section of the company's website, www.elbitsystems.com.

I would now like to hand over the call to Mr. Rami Myerson, Investor Relations Director at Elbit. Rami, please go ahead.

Rami Myerson

Thank you, Nona. Good day everyone, and welcome to our fourth quarter 2019 earnings call. On the call with me today are Butzi Machlis, our President and CEO; and Yosi Gaspar, our Chief Financial Officer. Before we begin, I would like to point out, that the Safe Harbor statements in the company's press release issued earlier today also refers to the content of this conference call. Yosi will begin, by providing a discussion of the financial results, followed by Butzi, who will talk about some of the significant events during the last year. We will then turn over the call to the question-and-answer session.

This morning, we uploaded a presentation to our Investor Relations' web site, with a summary of the fourth quarter and full year 2019 results, major contract wins, and overview of our U.S. business. We will not be following the presentation on this call, but are happy to answer questions on these main providers [Phonetic] during the question-and-answer session.

With that, I would now like to turn the call over to Yosi. Yosi, please?

Joseph Gaspar

Thank you, Rami. Hello everyone and thank you for joining us today. Rami joined us last year to increase our reengagement with the investor community. As a former Aerospace and Defense Analyst, Rami brings over 15 years of experience in capital markets, in Israel and [Indecipherable].

Before reviewing our financial results, I would like to address the global economic and COVID-19 situation. As of today, as we have not experienced material impact on its ongoing business, and we have not seen significant changes in customer behavior. We are monitoring the situation closely and are adhering to the instructions of the governments of the various countries in which we operate. We have initiated a series of preventive measures to protect our employees and maintain our commitments for customers. This includes, rolling out additional IT infrastructure to allow more employees to work from home or in smaller groups. We are closely monitoring carefully managing our supply chain, particularly as it relates to maintaining adequate inventory of critical components.

It is too early to quantify the cost of the measures we are taking, if the current travel restrictions continues to impact our business development activities for an extended period, there could be some impact on our new business. We will continue to update our shareholders, as we have more clarity.

Turning now to our results. As we do every quarter, we will provide you with both our regular GAAP financial data, as well as certain supplemental