PETAH TIKVA, Israel, Nov. 12,
2018 /PRNewswire/ -- Gilat Satellite Networks Ltd. (NASDAQ:
GILT) (TASE: GILT), a worldwide leader in satellite networking
technology, solutions and services, today reported its results for
the third quarter ended September 30,
2018.
Key Financial Highlights:
- Revenues for Q3 2018 were $62.8
million, compared with $69.9
million in Q3 2017.
- Continued strong profitability:
-
- Q3 2018 GAAP operating income increased to $6.0 million, up 79.6% from Q3 2017.
- Q3 2018 Non-GAAP operating income rose to $6.5 million, up 32.7% year over year.
- Q3 2018 GAAP net income was $8.7
million, or $0.16 per diluted
share (including a one-time tax benefit of $4.1 million related to the Company's US
subsidiary), compared with $2.1
million, or $0.04 per diluted
share, in Q3 2017.
- Q3 2018 non-GAAP net income was $5.1
million, or $0.09 per diluted
share, versus $3.6 million, or
$0.07 per diluted share, in Q3
2017.
- Q3 2018 Adjusted EBITDA increased 27.8% from Q3 2017 to
$9.1 million, or 14.5 % of
revenues.
- Updated management objectives for 2018: GAAP operating income
increased to between $22 to
$24 million (from $17 to 21 million), and Adjusted EBITDA increased
to between $35 to $37 million (from $30 to $34
million). Revenue range revised to between $265 to $275
million (from $285 to 305
million) due to continued delays in the Company's projects for
FITEL in Peru, as well as exerting
caution as it relates to the Company's two additional recently
awarded regional telecommunications infrastructure projects in
Peru. Recently, the losing party
appealed the award and obtained a preliminary injunction against
the award. Gilat has been informed by FITEL that it believes the
injunction was improperly obtained and FITEL is opposing it. Gilat
is not a party in either action and based on advice of counsel,
firmly believes that the chances of success of the losing party's
appeal are remote, yet decided to exert caution and reduce its
revenue targets for 2018.
Yona Ovadia, CEO of Gilat,
commented:
"I am pleased to report that the third quarter of 2018 was
another strong quarter for Gilat. We continued to increase
profitability, with noteworthy year-over-year growth in GAAP
operating income and Adjusted EBITDA. We also continued to
benefit from our investment in our growth engines of cellular
backhaul and In-Flight Connectivity (IFC) and in our focus on
improving profitability.
"From a business perspective, Gilat was awarded
multi-million-dollar projects around the globe. New projects were
secured in Russia, China and Japan, for broadband and high throughput
satellites in which Gilat will provide its multi-service ground
segment.
"From a technological perspective, we reached a major milestone
with our partners Global Eagle and Telesat for demonstrating the
first-ever live in-flight connectivity with a LEO satellite as well
as switchover between Telesat's GEO and LEO satellites.
"We also remain optimistic and committed to our opportunities in
Peru, although we decided to
exercise caution and reduce our revenue target for the full year
due to the events in Peru
mentioned above. We strongly expect, however, that we will overcome
these challenges in the coming few months."
Mr. Ovadia concluded: "We are confident in our strategy and
remain focused on our growth engines of cellular backhaul, IFC, and
HTS/VHTS, as well as on balancing our investments in R&D to
maintain product leadership while continuously improving
profitability, as evidenced by the increase in our profit targets
for the year."
Key Recent Announcements:
- JSAT Awards Gilat Multi-Million US Dollar Project for Mobility
and Fixed Broadband Services in Japan
- Gilat to Provide the Ground Network for China Satcom's
ChinaSat-18
- Global Eagle and Gilat Use Telesat's Phase 1 LEO Satellite to
Demonstrate First Ever, Live In-flight Broadband Connectivity via
LEO
- Hispamar and Gilat Launch a Satellite-Based Broadband Service
in Brazil to Promote High-Quality
Internet Access
- Gazprom Space Systems and Gilat Sign $18M Contract to Provide Broadband Connectivity
Across Russia over New Yamal 601 Ka Satellite
Conference Call and Webcast Details:
Gilat management
will host a conference call today, Monday, November 12, to discuss the
third quarter results. The details are as follows:
Conference Call and Webcast
Following the release, Yona Ovadia,
Chief Executive Officer, and Adi Sfadia, Chief Financial Officer,
will discuss Gilat's third quarter 2018 results and participate in
a question and answer session:
Date: Monday, November 12,
2018
Start: 09:30 AM EST / 16:30 IST
Dial-in: US: 1-888-668-9141
International: (972) 3-918-0609
A simultaneous Webcast of the conference call will be available
on the Gilat website at www.gilat.com and through this link:
www.veidan-stream.com/gilatq3-2018.html
The webcast will also be archived for a period of 30 days on the
Company's website and through the link above.
Conference Call Replay
Start: November 12, 2018 at 12:00
PM EST / 19:00 IST
End: November 17, 2018 at
12:00 PM EST / 19:00 IST
Dial-in: US: 1-888-782-4291
International: (972) 3-925-5904
Non-GAAP Measures
The attached summary unaudited financial statements were prepared
in accordance with U.S. Generally Accepted Accounting Principles
(GAAP). To supplement the consolidated financial statements
presented in accordance with GAAP, the Company presents Non-GAAP
presentations of net income, operating income, Adjusted EBITDA and
earnings per share. The adjustments to the Company's GAAP results
are made with the intent of providing both management and investors
a more complete understanding of the Company's underlying
operational results, trends and performance.
Adjusted EBITDA (operating income before depreciation,
amortization, non-cash stock option expenses, costs related to
acquisition transactions, restructuring cost, goodwill impairment,
impairment of long lived assets, trade secrets litigation expenses
and expenses under amnesty program) is presented to compare the
Company's performance to that of prior periods and evaluate the
Company's financial and operating results on a consistent basis
from period to period. The Company also believes this measure, when
viewed in combination with the Company's financial results prepared
in accordance with GAAP, provides useful information to investors
to evaluate ongoing operating results and trends. Adjusted EBITDA,
however, should not be considered as an alternative to operating
income or net income for the period and may not be indicative of
the historic operating results of the Company; nor is it meant to
be predictive of potential future results. Adjusted EBITDA is not a
measure of financial performance under GAAP and may not be
comparable to other similarly titled measures for other companies.
Reconciliation between the Company's Operating income and Adjusted
EBITDA is presented in the attached summary financial
statements.
This news release also contains a forward-looking estimate of
Adjusted EBITDA projected to be generated by Gilat in 2018. A
forward-looking estimate of net income and reconciliations of the
forward-looking estimates of Adjusted EBITDA to net income are not
provided because the items necessary to estimate net income are not
estimable at this time. Non-GAAP presentations of net income,
operating income, Adjusted EBITDA and earnings per share should not
be considered in isolation or as a substitute for any of the
consolidated statements of operations prepared in accordance with
GAAP, or as an indication of Gilat's operating performance or
liquidity.
About Gilat
Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) is a
leading global provider of satellite-based broadband
communications. With 30 years of experience, we design and
manufacture cutting-edge ground segment equipment, and provide
comprehensive solutions and end-to-end services, powered by our
innovative technology. Delivering high value competitive solutions,
our portfolio comprises of a cloud based VSAT network platform,
high-speed modems, high performance on-the-move antennas and high
efficiency, high power Solid State Amplifiers (SSPA) and Block
Upconverters (BUC).
Gilat's comprehensive solutions support multiple applications
with a full portfolio of products to address key applications
including broadband access, cellular backhaul, enterprise,
in-flight connectivity, maritime, trains, defense and public
safety, all while meeting the most stringent service level
requirements. Gilat controlling shareholders are the FIMI
Private Equity Funds. For more information, please visit:
www.gilat.com
Certain statements made herein that are not historical are
forward-looking within the meaning of the Private Securities
Litigation Reform Act of 1995. The words "estimate", "project",
"intend", "expect", "believe" and similar expressions are intended
to identify forward-looking statements. These forward-looking
statements involve known and unknown risks and uncertainties. Many
factors could cause the actual results, performance or achievements
of Gilat to be materially different from any future results,
performance or achievements that may be expressed or implied by
such forward-looking statements, including, among others, changes
in general economic and business conditions, inability to maintain
market acceptance to Gilat's products, inability to timely develop
and introduce new technologies, products and applications, rapid
changes in the market for Gilat's products, loss of market share
and pressure on prices resulting from competition, introduction of
competing products by other companies, inability to manage growth
and expansion, loss of key OEM partners, inability to attract and
retain qualified personnel, inability to protect the Company's
proprietary technology and risks associated with Gilat's
international operations and its location in Israel. We undertake no obligation to update
or revise any forward-looking statements for any reason. For
additional information regarding these and other risks and
uncertainties associated with Gilat's business, reference is made
to Gilat's reports filed from time to time with the Securities and
Exchange Commission.
GILAT SATELLITE
NETWORKS LTD.
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
U.S. dollars in
thousands (except share and per share data)
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
Three months
ended
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
196,662
|
|
$
200,104
|
|
$
62,780
|
|
$
69,936
|
Cost of
revenues
|
|
|
128,639
|
|
142,845
|
|
38,586
|
|
49,587
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
68,023
|
|
57,259
|
|
24,194
|
|
20,349
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development expenses
|
|
25,280
|
|
20,648
|
|
8,550
|
|
7,181
|
Less -
grants
|
|
|
1,204
|
|
820
|
|
394
|
|
297
|
Research and
development expenses, net
|
|
24,076
|
|
19,828
|
|
8,156
|
|
6,884
|
Selling and marketing
expenses
|
|
17,209
|
|
17,187
|
|
5,493
|
|
5,837
|
General and
administrative expenses
|
|
12,963
|
|
14,153
|
|
4,574
|
|
4,303
|
Litigation
expenses
|
|
|
-
|
|
873
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
54,248
|
|
52,041
|
|
18,223
|
|
17,024
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
13,775
|
|
5,218
|
|
5,971
|
|
3,325
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
|
|
(3,166)
|
|
(3,169)
|
|
(978)
|
|
(1,123)
|
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes on income
|
|
10,609
|
|
2,049
|
|
4,993
|
|
2,202
|
|
|
|
|
|
|
|
|
|
|
|
Taxes on income (tax
benefit)
|
|
(2,505)
|
|
(1,349)
|
|
(3,659)
|
|
152
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
$
13,114
|
|
$
3,398
|
|
$
8,652
|
|
$
2,050
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
(basic and diluted)
|
|
$
0.24
|
|
$
0.06
|
|
$
0.16
|
|
$
0.04
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
|
|
|
|
|
|
|
|
|
|
computing earnings
per share
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
54,858,038
|
|
54,667,795
|
|
54,950,327
|
|
54,703,658
|
|
Diluted
|
|
|
55,682,707
|
|
54,723,315
|
|
55,818,557
|
|
54,788,086
|
GILAT SATELLITE
NETWORKS LTD.
|
|
|
|
|
|
RECONCILIATION
BETWEEN GAAP AND NON-GAAP STATEMENTS OF OPERATIONS
|
|
FOR COMPARATIVE
PURPOSES
|
|
|
U.S. dollars in
thousands (except share and per share data)
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
|
September 30,
2018
|
|
September 30,
2017
|
|
|
GAAP
|
|
Adjustments
(1)
|
|
Non-GAAP
|
|
GAAP
|
|
Adjustments
(1)
|
|
Non-GAAP
|
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
$
24,194
|
|
268
|
|
$
24,462
|
|
$
20,349
|
|
1,210
|
|
$
21,559
|
Operating
expenses
|
18,223
|
|
(254)
|
|
17,969
|
|
17,024
|
|
(357)
|
|
16,667
|
Operating
income
|
5,971
|
|
522
|
|
6,493
|
|
3,325
|
|
1,567
|
|
4,892
|
Income before taxes
on income
|
4,993
|
|
522
|
|
5,515
|
|
2,202
|
|
1,567
|
|
3,769
|
Net income
|
$
8,652
|
|
(3,589)
|
|
$
5,063
|
|
$
2,050
|
|
1,567
|
|
$
3,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
(basic and diluted)
|
$
0.16
|
|
$
(0.07)
|
|
$
0.09
|
|
$
0.04
|
|
$
0.03
|
|
$
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
|
|
|
|
|
|
computing earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
54,950,327
|
|
|
|
54,950,327
|
|
54,703,658
|
|
|
|
54,703,658
|
|
Diluted
|
55,818,557
|
|
|
|
56,020,550
|
|
54,788,086
|
|
|
|
54,979,360
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjustments
reflect the effect of non-cash stock-based compensation as per ASC
718, amortization of intangible assets related to
shares acquisition transactions,
trade secrets litigation expenses, tax expenses under amnesty
program and first time recognition of deferred tax
benefit.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
|
September 30,
2018
|
|
|
|
|
|
September 30,
2017
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
|
$
8,652
|
|
|
|
|
|
$
2,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based
compensation expenses
|
|
35
|
|
|
|
|
|
15
|
|
|
Amortization of
intangible assets related to acquisition transactions
|
|
233
|
|
|
|
|
|
1,195
|
|
|
|
|
|
|
268
|
|
|
|
|
|
1,210
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
203
|
|
|
|
|
|
193
|
|
|
Non-cash stock-based
compensation expenses
|
|
51
|
|
|
|
|
|
164
|
|
|
Amortization of
intangible assets related to acquisition transactions
|
|
254
|
|
|
|
|
|
357
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax on
income
|
|
|
|
(4,111)
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income
|
|
|
|
$
5,063
|
|
|
|
|
|
$
3,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GILAT SATELLITE
NETWORKS LTD.
|
RECONCILIATION
BETWEEN GAAP AND NON-GAAP STATEMENTS OF OPERATIONS
|
|
FOR COMPARATIVE
PURPOSES
|
|
|
U.S. dollars in
thousands (except share and per share data)
|
|
|
|
|
|
|
|
Nine months
ended
|
|
Nine months
ended
|
|
|
September 30,
2018
|
|
September 30,
2017
|
|
|
GAAP
|
|
Adjustments
(1)
|
|
Non-GAAP
|
|
GAAP
|
|
Adjustments
(1)
|
|
Non-GAAP
|
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
$
68,023
|
|
2,698
|
|
$
70,721
|
|
$
57,259
|
|
3,620
|
|
$
60,879
|
Operating
expenses
|
54,248
|
|
(805)
|
|
53,443
|
|
52,041
|
|
(2,642)
|
|
49,399
|
Operating
income
|
13,775
|
|
3,503
|
|
17,278
|
|
5,218
|
|
6,262
|
|
11,480
|
Income before taxes
on income
|
10,609
|
|
3,503
|
|
14,112
|
|
2,049
|
|
6,499
|
|
8,548
|
Net income
|
$
13,114
|
|
(608)
|
|
$
12,506
|
|
$
3,398
|
|
6,499
|
|
$
9,897
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per
share
|
$
0.24
|
|
$
(0.01)
|
|
$
0.23
|
|
$
0.06
|
|
$
0.12
|
|
$
0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per
share
|
$
0.24
|
|
$
(0.02)
|
|
$
0.22
|
|
$
0.06
|
|
$
0.12
|
|
$
0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
|
|
|
|
|
|
|
|
|
|
|
|
computing earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
54,858,038
|
|
|
|
54,858,038
|
|
54,667,795
|
|
|
|
54,667,795
|
|
Diluted
|
55,682,707
|
|
|
|
55,896,940
|
|
54,723,315
|
|
|
|
54,850,309
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjustments
reflect the effect of non-cash stock-based compensation as per ASC
718, amortization of intangible assets related to
shares acquisition transactions,
trade secrets litigation expenses, tax expenses under amnesty
program and first time recognition of deferred tax
benefit.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
|
|
|
|
Nine months
ended
|
|
|
|
|
|
|
September 30,
2018
|
|
|
|
|
|
September 30,
2017
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
|
|
|
$
13,114
|
|
|
|
|
|
$
3,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based
compensation expenses
|
77
|
|
|
|
|
|
38
|
|
|
Amortization of
intangible assets related to acquisition transactions
|
2,621
|
|
|
|
|
|
3,582
|
|
|
|
|
|
|
2,628
|
|
|
|
|
|
3,620
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based
compensation expenses
|
653
|
|
|
|
|
|
588
|
|
|
Amortization of
intangible assets related to acquisition transactions
|
152
|
|
|
|
|
|
553
|
|
|
Trade secrets
litigation expenses
|
-
|
|
|
|
|
|
873
|
|
|
Tax expenses under
amnesty program
|
-
|
|
|
|
|
|
628
|
|
|
|
|
|
|
805
|
|
|
|
|
|
2,642
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance and taxes on
income under amnesty program
|
-
|
|
|
|
|
|
237
|
|
|
Tax on
income
|
(4,111)
|
|
|
|
|
|
-
|
|
|
Non-GAAP net
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
12,506
|
|
|
|
|
|
$
9,897
|
|
|
GILAT SATELLITE
NETWORKS LTD.
|
SUPPLEMENTAL
INFORMATION
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
Three months
ended
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
|
$
13,775
|
|
$
5,218
|
|
$
5,971
|
|
$
3,325
|
Add:
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based
compensation expenses
|
730
|
|
626
|
|
238
|
|
208
|
Trade secrets
litigation expenses
|
|
-
|
|
873
|
|
-
|
|
-
|
Tax expenses under
amnesty program
|
-
|
|
628
|
|
-
|
|
-
|
Depreciation and
amortization
|
|
10,205
|
|
9,884
|
|
2,883
|
|
3,580
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
24,710
|
|
$
17,229
|
|
$
9,092
|
|
$
7,113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
REVENUE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
Three months
ended
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
Fixed
Networks
|
|
|
$
108,786
|
|
$
81,408
|
|
$
34,943
|
|
$
29,607
|
Mobility
Solutions
|
|
|
67,626
|
|
55,797
|
|
21,848
|
|
18,888
|
Terrestrial
Infrastructure Projects
|
|
20,250
|
|
62,899
|
|
5,989
|
|
21,441
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
$
196,662
|
|
$
200,104
|
|
$
62,780
|
|
$
69,936
|
GILAT SATELLITE
NETWORKS LTD.
|
CONSOLIDATED
BALANCE SHEET
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2018
|
|
2017
|
|
|
Unaudited
|
|
Audited
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
59,827
|
|
$
52,957
|
Restricted
cash
|
|
38,566
|
|
29,288
|
Restricted cash held
by trustees
|
|
4,790
|
|
4,325
|
Trade receivables,
net
|
|
86,107
|
|
108,842
|
Inventories
|
|
26,619
|
|
28,853
|
Other current
assets
|
|
33,342
|
|
21,686
|
|
|
|
|
|
Total
current assets
|
|
249,251
|
|
245,951
|
|
|
|
|
|
LONG-TERM
INVESTMENTS:
|
|
|
|
|
Long-term restricted
cash
|
|
140
|
|
187
|
Severance pay
funds
|
|
7,173
|
|
8,188
|
Other long term
receivables
|
|
5,537
|
|
1,071
|
|
|
|
|
|
Total long-term
investments
|
|
12,850
|
|
9,446
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT,
NET
|
|
82,999
|
|
82,246
|
|
|
|
|
|
INTANGIBLE ASSETS,
NET
|
|
2,772
|
|
5,709
|
|
|
|
|
|
GOODWILL
|
|
43,468
|
|
43,468
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
391,340
|
|
$
386,820
|
GILAT SATELLITE
NETWORKS LTD.
|
CONSOLIDATED
BALANCE SHEET
|
U.S. dollars in
thousands
|
|
|
September
30,
|
|
December
31,
|
|
|
2018
|
|
2017
|
|
|
Unaudited
|
|
Audited
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Current maturities of
long-term loans
|
|
$
4,465
|
|
$
4,479
|
Trade
payables
|
|
21,343
|
|
33,715
|
Accrued
expenses
|
|
64,418
|
|
70,534
|
Advances from
customers and deferred revenues
|
|
31,720
|
|
16,721
|
Advances from
customers, held by trustees
|
|
-
|
|
1,416
|
Other current
liabilities
|
|
19,947
|
|
20,044
|
|
|
|
|
|
Total
current liabilities
|
|
141,893
|
|
146,909
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
Accrued severance
pay
|
|
7,029
|
|
7,999
|
Long-term loans, net
of current maturities
|
|
8,216
|
|
12,582
|
Other long-term
liabilities
|
|
653
|
|
1,008
|
|
|
|
|
|
Total
long-term liabilities
|
|
15,898
|
|
21,589
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
Share capital -
ordinary shares of NIS 0.2 par value
|
2,619
|
|
2,601
|
Additional paid-in
capital
|
|
924,072
|
|
921,726
|
Accumulated other
comprehensive loss
|
|
(4,818)
|
|
(3,046)
|
Accumulated
deficit
|
|
(688,324)
|
|
(702,959)
|
|
|
|
|
|
Total
equity
|
|
233,549
|
|
218,322
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
$
391,340
|
|
$
386,820
|
GILAT SATELLITE
NETWORKS LTD.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS (*)
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
Three months
ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
Unaudited
|
|
Unaudited
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
13,114
|
|
$
3,398
|
|
$
8,652
|
|
$
2,050
|
Adjustments
required to reconcile net income
|
|
|
|
|
|
|
|
|
to net cash
provided by (used in) operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
10,205
|
|
9,884
|
|
2,883
|
|
3,580
|
Capital loss from
disposal of property and equipment
|
|
96
|
|
135
|
|
96
|
|
90
|
Stock-based
compensation of options and RSU's
|
|
730
|
|
626
|
|
238
|
|
208
|
Accrued severance
pay, net
|
|
45
|
|
129
|
|
(2)
|
|
23
|
Exchange rate
differences on long-term loans
|
|
(24)
|
|
151
|
|
(11)
|
|
38
|
Deferred income
taxes, net
|
|
(4,415)
|
|
(300)
|
|
(4,386)
|
|
(141)
|
Decrease (increase)
in trade receivables, net
|
|
22,209
|
|
2,833
|
|
(7,260)
|
|
(2,215)
|
Increase (decrease)
in other assets (including short-term, long-term
|
|
|
|
|
|
|
|
|
and
deferred charges)
|
|
(10,659)
|
|
(3,840)
|
|
(1,508)
|
|
2,795
|
Decrease (increase)
in inventories
|
|
834
|
|
(9,229)
|
|
502
|
|
(5,671)
|
Decrease in trade
payables
|
|
(12,249)
|
|
(1,082)
|
|
(615)
|
|
(1,619)
|
Increase (decrease)
in accrued expenses
|
|
(5,108)
|
|
14,655
|
|
(3,128)
|
|
3,237
|
Increase (decrease)
in advance from customers
|
|
11,129
|
|
(11,714)
|
|
16,109
|
|
(6,004)
|
Increase (decrease)
in advances from customers, held
|
|
|
|
|
|
|
|
|
by
trustees
|
|
(1,478)
|
|
(2,340)
|
|
-
|
|
1,002
|
Increase (decrease)
in other current liabilities and other long term
liabilities
|
|
3,597
|
|
358
|
|
(1,978)
|
|
2,263
|
Net cash provided
by (used in) operating activities
|
|
28,026
|
|
3,664
|
|
9,592
|
|
(364)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
(7,905)
|
|
(3,408)
|
|
(2,891)
|
|
(1,236)
|
Net cash used in
investing activities
|
|
(7,905)
|
|
(3,408)
|
|
(2,891)
|
|
(1,236)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Issuance of
restricted stock units and exercise of stock options
|
|
1,638
|
|
569
|
|
1,065
|
|
76
|
Repayment of
long-term loans
|
|
(4,356)
|
|
(4,528)
|
|
(107)
|
|
(145)
|
Net cash provided
by (used in) financing activities
|
|
(2,718)
|
|
(3,959)
|
|
958
|
|
(69)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
|
(837)
|
|
255
|
|
(128)
|
|
364
|
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash, cash equivalents and restricted
cash
|
|
16,566
|
|
(3,448)
|
|
7,531
|
|
(1,305)
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at the beginning of the
period
|
|
86,757
|
|
111,633
|
|
95,792
|
|
109,490
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at the end of the
period
|
|
$
103,323
|
|
$
108,185
|
|
$
103,323
|
|
$
108,185
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) In November 2016,
the Financial Accounting Standards Board (the "FASB") issued ASU
2016-18, "Statement of Cash Flows (Topic 230): Restricted
Cash",
|
which requires
companies to include amounts generally described as restricted cash
and restricted cash equivalents in cash and cash equivalents
when
|
reconciling
beginning-of-period and end-of-period total amounts shown on the
statement of cash flows. ASU 2016-18 is effective for annual and
interim periods
|
beginning after
December 15, 2017. The Company adopted this standard during the
first quarter of 2018 using the retrospective transition
method,
|
as required by the
new standard.
|
|
|
|
|
|
|
|
|
|
|
The following table
provides a reconciliation of cash and cash equivalents, restricted
cash, restricted cash held by trustees and long term restricted
cash reported within
|
the consolidated
balance sheets that sum to the total of such amounts in the
consolidated statements of cash flows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
|
|
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
59,827
|
|
$
77,234
|
|
|
|
|
Restricted
cash
|
|
38,566
|
|
24,275
|
|
|
|
|
Restricted cash held
by trustees
|
|
4,790
|
|
6,503
|
|
|
|
|
Long term restricted
cash included in other assets
|
|
140
|
|
173
|
|
|
|
|
Cash, cash
equivalents and restricted cash shown in the consolidated statement
of cash flows
|
$
103,323
|
|
$
108,185
|
|
|
|
|
Contact:
Gilat Satellite Networks
Doreet Oren, Director Corporate
Communications
DoreetO@gilat.com
Comm-Partners LLC
June Filingeri, President
+1-203-972-0186
junefil@optonline.net
View original
content:http://www.prnewswire.com/news-releases/gilat-reports-strong-profitability-in-q3-2018-raises-objectives-for-2018-operating-profit-and-ebitda-300748192.html
SOURCE Gilat Satellite Networks