Elbit Systems Ltd. (NASDAQ:ESLT) Q2 2020 Earnings Conference Call - Final Transcript

Aug 13, 2020 • 09:00 am ET

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Elbit Systems Ltd. (NASDAQ:ESLT) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by. Welcome to Elbit Systems Second Quarter 2020 Results Conference Call. All participants are at present in listen-only mode. Following management's formal presentation, instructions will be given for the question and answer session. As a reminder, this conference is being recorded.

You should have all received by now the company's press release that is available 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, Elbit Systems' Investor Relations Director. Rami, please go ahead.

Executive
Rami Myerson

Thank you Yoni. Good day everyone and welcome to our second quarter 2020 earnings call. On the call with me today are Butzi Machlis, our President and CEO, and Yossi Gaspar, our Chief Financial Officer.

Before we begin, I would like to point out that the Safe Harbor statement in the company's press release issued earlier today also refers to the contents of this conference call. Yossi will begin by providing a discussion of the financial results, followed by Butzi who will talk about some of the significant events during the quarter and beyond. We will then turn the call over to a question-and-answer session.

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

Executive
Joseph Gaspar

Thank you Rami. Hello, everyone, and thank you for joining us today. The results of our second quarter reflects the resilience of Elbit Systems and the actions we are taking to address and mitigate the impact of the COVID-19 pandemic on our activities as we discussed in our earnings call for our first quarter results. Government directed safety measures, supply chain delays, and travel restrictions, continue to cause some disruptions to our business including the ability to attend in person, except as inspections. Our subsidiaries around the world has helped support these inspections where possible. We continue to monitor the situation closely and are adhering to the instructions of the governments of the various countries in which we operate. The extent of the impact of the COVID-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, and the resulting actions that may be taken by our customers and our supply chain.

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 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 all the detailed GAAP financial data as well as the non-GAAP information and their reconciliation in today's press release.

Overall, we are satisfied with our performance in a challenging environment. Revenues and backlog increased year-over-year and slightly in comparison to the previous quarter. The improvements in profitability and cash flow reflect the increased focus on operations, including the cost control measures that we implemented to mitigate the