Elbit Systems Ltd (NASDAQ: ESLT), Israeli defense electronics company, stock fell over 2.33% on 25th March, 2020 (Source: Google finance). For the fourth quarter, the non-GAAP gross margin decreased to 26.2% compared to the fourth quarter of last year of 28.5%.
The company in the fourth quarter of FY 19 has reported a record backlog of orders of worth $10 billion. 61% of the backlog is for orders from outside Israel and 65% of the backlog is to be performed during 2020 and 2021 and the remainder is scheduled for 2022 and beyond. The company has delivered fourth quarter 2019 revenues of $1.321 billion, which were up 23% year-over-year. Compared with the fourth quarter of last year, the company saw strong growth in Asia Pacific and a healthy combination of organic and acquisitive revenue growth in Israel and North America. The company has posted the fourth quarter non-GAAP operating income of $135.4 million or 9.5% of revenues compared to $112.5 million or 10.4% of revenues last year. Non-GAAP operating income in 2019 was $379.7 million or 8.4% of revenues, compared to $340.7 million or 9.2% of revenues last year.
Additionally, during the second quarter of 2019, Elbit Systems had raised $185 million through the sale of treasury shares to situational investors in Israel. This had increased the share count by about 3% to 44.2 million shares, having a slight corresponding impact on the earnings per share compared to last year. The company had generated the operating cash flow for the quarter of $87 million inflow compared with $212.1 million in the same quarter last year. Operating cash flow has been negatively affected due to the Israeli election cycle this year, which caused delays in payments of the Israeli Ministry of Defense. The company anticipates to receive the delayed payments in the very near term.
In addition, at the end of February, Midroog, the Israeli rating agency, affiliated with Moody’s, has reaffirmed the AA+ rating on the Series A notes following a review of the financials. The company has declared a dividend of $0.44 per share for the first quarter of 2019. In total in 2019, $1.76 per share of dividends were issued to shareholders. During the second quarter of 2019, Elbit Systems had raised $185 million through the sale of treasury shares to situational investors in Israel.