Gilat Satellite Networks Ltd. (NASDAQ, TASE: GILT), a worldwide
leader in satellite networking technology, solutions and services,
today reported its results for the third quarter ended September
30, 2019.
Key Financial Highlights:
- Revenues for Q3 2019 increased to $63.4 million compared with
$59.7 million for Q2 2019 and $62.8 million in Q3 2018.
- Continued strong profitability:° Q3 2019 GAAP operating
income increased 17.1% to $7.0 million from $6.0 million in Q3 2018
and was up 43.1% from $4.9 million in Q2 2019. Non-GAAP operating
income in Q3 2019 rose to $7.5 million, or by 15.4% from Q3 2018
and rose 19.4% sequentially.° Q3 2019 GAAP net income totaled
$6.3 million, or $0.11 per diluted share a decrease of 27.3%
compared with $8.7 million, or $0.16 per diluted share, in Q3 2018,
which included a one-time tax benefit of $4.1 million. Q3 2019 net
income increased 84.7% from $3.4 million, or $0.06 per diluted
share, in Q2 2019. On a non-GAAP basis, Q3 2019 net income
increased 34.1% to $6.8 million, or $0.12 per diluted share,
compared with $5.1 million, or $0.09 per diluted share, in Q3 2018
and was up 41.6% from $4.8 million, or $0.09 per diluted share, in
Q2 2019. ° Q3 2019 Adjusted EBITDA totaled $10.1
million, an increase of 10.6% year over year and 13.0% quarter over
quarter. Q3 2019 Adjusted EBITDA represented 15.9% of
revenues versus 14.5% of revenues in Q3 2018 and 14.9% in Q2
2019.° Updated management objectives for 2019: Reiterating
GAAP operating income of between $23 million and $27 million, and
Adjusted EBITDA of between $38 million and $42 million, while
reducing the revenue range to between $260 million to $270 million.
The adjustment in the revenue objectives is due to delay of several
key orders, coupled with delivery constraints that have since been
mostly resolved.
Yona Ovadia, CEO of Gilat, commented: "We
achieved significant milestones in the Third Quarter, both on the
financial and the business sides, as we continued to execute our
strategy to build high quality, profitable revenues through our
growth engines of Broadband, Mobile Cellular Backhaul and Mobility
IFC.
"On the financial side we attained substantial progress as we
continued to improve profitability. We have attained a record
achievement of double-digit millions of dollars of Adjusted EBITDA,
$10.1 million to be exact. This has been achieved only once before
since we made growth in profitability one of the pillars of our
strategy, and we have every intention to repeat it going
forward.
"On the business side, I am excited to report that Gilat reached
a landmark achievement with the selection of Gilat's platform by
SES for the O3b mPOWER Medium Earth Orbit (MEO) Communications
System. Gilat was selected due to our innovative ground segment,
that significantly reduces cost per bit, best-in-class spectral
efficiency, and a step function in modem performance. This win
positions Gilat at the forefront of ground networks for Non-Geo
Stationary Orbit (NGSO) constellations and as well as a prominent
player for the new generation of HTS and VHTS GEO satellites.
"In Peru, our goal has always been the profitable recurring
revenues from operations and sales of services, and indeed, further
to last quarter’s achievement of moving to Operations in three
awarded regions, I am pleased to share that this quarter we won a
$10 million five-year project for 3G/4G backhaul services over the
network that we built and just started to operate. We are pleased
to see our vision materializing, and expect that this contract will
significantly expand over time to additional multiple millions of
dollars, as well as to selling additional services over our
networks.
"In Australia we have reached an important milestone this
quarter with NBN Co. with the launch of NBN’s business satellite
services. The commercial launch of this flagship project initiates
our managed service to NBN, delivering revenue of tens of millions
of US dollars over a ten-year period.
"In addition, we have seen continued progress in our mobile and
mobility growth areas. Particularly in cellular backhaul Gilat
continues to be recognized as the global leader with the selection
of the leading Japanese MNO, NTT DoCoMo. In Aero Mobility, we are
encouraged by the clear direction of airlines to offer free wifi,
as we already saw it starting to generate significant demand for
Gilat equipment in this quarter. Both mobile and mobility continue
to be major growth engines for Gilat.
"Lastly, in Q3, we also continued to strengthen our partnership
with China Satcom with an agreement to upgrade to the most
up-to-date, efficient, and high-performance communication network
for aero and maritime mobility applications as well as fixed
applications."
Mr. Ovadia concluded:
"In closing, we are pleased with our momentum in the
market-place and in parallel with our continued improvement in our
bottom line. We are engaged these days in planning our work plan
for 2020. We will base it on the same guidelines as the existing
growth engines, with continued if not increased investment in
maintaining our product leadership, and in improvement of both the
top line and bottom line."
Key Recent Announcements:
- Gilat Signs Significant Contract with SES to Develop and Deploy
O3b mPOWER MEO Communications System
- Global Eagle Places $5m Order with Gilat's Wavestream for
In-Flight Connectivity Transceivers
- Gilat and China Satcom Lay Foundation for Future Chinese
Satellite Communication for Aero, Maritime, Land Mobility and Fixed
Applications
- NTT DOCOMO Awards Gilat an LTE Satellite Backhaul Project to
Expand its LTE Footprint
Conference Call and Webcast Details:
Following the release, Yona Ovadia, Chief Executive Officer, and
Adi Sfadia, Chief Financial Officer, will discuss Gilat’s third
quarter 2019 results and participate in a question and answer
session:
Date: |
Tuesday,
November 19, 2019 |
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/gilatq3-2019.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 19,
2019 at 12:00 PM EST / 19:00 IST |
End: |
November 22, 2019 at 12:00 PM EST / 19:00 IST |
Dial-in: |
US: 1-888-326-9310 |
|
International: (972) 3-925-5904 |
Non-GAAP MeasuresThe 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. Non-GAAP financial measures mainly exclude
the effect of stock based compensation, amortization of purchased
intangibles, lease incentive amortization, litigation expenses,
income related to trade secrets claims, re-organization costs,
expenses for tax contingencies to be paid under an amnesty program
and initial recognition of deferred tax asset with respect to
carry-forward losses.
Adjusted EBITDA 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 2019. 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 GilatGilat 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.
Contact:Gilat Satellite NetworksDoreet Oren,
Director Corporate CommunicationsDoreetO@gilat.com
Comm-Partners LLCJune Filingeri,
President+1-203-972-0186junefil@optonline.net
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, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
Unaudited |
|
Unaudited |
|
|
|
|
|
|
|
|
Revenues |
$ |
185,178 |
|
$ |
196,662 |
|
|
$ |
63,384 |
|
$ |
62,780 |
|
Cost of
revenues |
|
116,369 |
|
|
128,639 |
|
|
|
40,130 |
|
|
38,586 |
|
|
|
|
|
|
|
|
|
Gross profit |
|
68,809 |
|
|
68,023 |
|
|
|
23,254 |
|
|
24,194 |
|
|
|
|
|
|
|
|
|
Research and
development expenses |
|
24,088 |
|
|
25,280 |
|
|
|
7,596 |
|
|
8,550 |
|
Less -
grants |
|
1,610 |
|
|
1,204 |
|
|
|
516 |
|
|
394 |
|
Research and
development expenses, net |
|
22,478 |
|
|
24,076 |
|
|
|
7,080 |
|
|
8,156 |
|
Selling and
marketing expenses |
|
16,332 |
|
|
17,209 |
|
|
|
5,044 |
|
|
5,493 |
|
General and
administrative expenses |
|
13,666 |
|
|
12,963 |
|
|
|
4,139 |
|
|
4,574 |
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
52,476 |
|
|
54,248 |
|
|
|
16,263 |
|
|
18,223 |
|
|
|
|
|
|
|
|
|
Operating income |
|
16,333 |
|
|
13,775 |
|
|
|
6,991 |
|
|
5,971 |
|
|
|
|
|
|
|
|
|
Financial
expenses, net |
|
1,940 |
|
|
3,166 |
|
|
|
540 |
|
|
978 |
|
|
|
|
|
|
|
|
|
Income before taxes on income |
|
14,393 |
|
|
10,609 |
|
|
|
6,451 |
|
|
4,993 |
|
|
|
|
|
|
|
|
|
Taxes on
income (tax benefit) |
|
1,876 |
|
|
(2,505 |
) |
|
|
163 |
|
|
(3,659 |
) |
|
|
|
|
|
|
|
|
Net
income |
$ |
12,517 |
|
$ |
13,114 |
|
|
$ |
6,288 |
|
$ |
8,652 |
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
0.23 |
|
$ |
0.24 |
|
|
$ |
0.11 |
|
$ |
0.16 |
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
$ |
0.22 |
|
$ |
0.24 |
|
|
$ |
0.11 |
|
$ |
0.16 |
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in computing
earnings per share |
|
|
|
|
|
|
|
Basic |
|
55,329,617 |
|
|
54,858,038 |
|
|
|
55,463,945 |
|
|
54,950,327 |
|
Diluted |
|
56,029,698 |
|
|
55,682,707 |
|
|
|
56,059,239 |
|
|
55,818,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2019 |
|
September 30, 2018 |
|
GAAP |
|
Adjustments (1) |
|
Non-GAAP |
|
GAAP |
|
Adjustments (1) |
|
Non-GAAP |
|
|
|
|
|
Unaudited |
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
$ |
23,254 |
|
|
68 |
|
|
$ |
23,322 |
|
$ |
24,194 |
|
|
268 |
|
|
$ |
24,462 |
Operating
expenses |
|
16,263 |
|
|
(433 |
) |
|
|
15,830 |
|
|
18,223 |
|
|
(254 |
) |
|
|
17,969 |
Operating
income |
|
6,991 |
|
|
501 |
|
|
|
7,492 |
|
|
5,971 |
- |
|
522 |
|
- |
|
6,493 |
Income
before taxes on income |
|
6,451 |
|
|
501 |
|
|
|
6,952 |
|
|
4,993 |
|
|
522 |
|
|
|
5,515 |
Net
income |
|
6,288 |
|
|
501 |
|
|
|
6,789 |
|
|
8,652 |
|
|
(3,589 |
) |
|
|
5,063 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share (basic and diluted) |
$ |
0.11 |
|
$ |
0.01 |
|
|
$ |
0.12 |
|
$ |
0.16 |
|
$ |
(0.07 |
) |
|
$ |
0.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares used in computing earnings per share |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
55,463,945 |
|
|
|
|
55,463,945 |
|
|
54,950,327 |
|
|
|
|
54,950,327 |
Diluted |
|
56,059,239 |
|
|
|
|
56,179,331 |
|
|
55,818,557 |
|
|
|
|
56,020,550 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 and re-organiztion costs. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Three months
ended |
|
September
30, 2019 |
|
September
30, 2018 |
|
|
|
Unaudited |
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income |
|
|
$ |
6,288 |
|
|
|
|
|
|
$ |
8,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
|
|
|
|
|
|
|
|
|
Non-cash
stock-based compensation expenses |
|
|
|
55 |
|
|
|
|
|
|
|
35 |
|
|
|
Amortization
of intangible assets related to acquisition transactions |
|
|
|
13 |
|
|
|
|
|
|
|
233 |
|
|
|
|
|
|
|
68 |
|
|
|
|
|
|
|
268 |
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
Non-cash
stock-based compensation expenses |
|
|
|
382 |
|
|
|
|
|
|
|
203 |
|
|
|
Amortization
of intangible assets related to acquisition transactions |
|
|
|
51 |
|
|
|
|
|
|
|
51 |
|
|
|
|
|
|
|
433 |
|
|
|
|
|
|
|
254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax benefit
adjustment |
|
|
|
- |
|
|
|
|
|
|
|
(4,111 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income |
|
|
$ |
6,789 |
|
|
|
|
|
|
$ |
5,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2019 |
|
September 30, 2018 |
|
GAAP |
|
Adjustments (1) |
|
Non-GAAP |
|
GAAP |
|
Adjustments (1) |
|
Non-GAAP |
|
|
|
|
|
Unaudited |
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
$ |
68,809 |
|
|
706 |
|
|
$ |
69,515 |
|
$ |
68,023 |
|
|
2,698 |
|
|
$ |
70,721 |
Operating
expenses |
|
52,476 |
|
|
(2,339 |
) |
|
|
50,137 |
|
|
54,248 |
|
|
(805 |
) |
|
|
53,443 |
Operating
income |
|
16,333 |
|
|
3,045 |
|
|
|
19,378 |
|
|
13,775 |
|
|
3,503 |
|
|
|
17,278 |
Income
before taxes on income |
|
14,393 |
|
|
3,045 |
|
|
|
17,438 |
|
|
10,609 |
|
|
3,503 |
|
|
|
14,112 |
Net
income |
|
12,517 |
|
|
3,045 |
|
|
|
15,562 |
|
|
13,114 |
|
|
(608 |
) |
|
|
12,506 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
$ |
0.23 |
|
$ |
0.05 |
|
|
$ |
0.28 |
|
$ |
0.24 |
|
$ |
(0.01 |
) |
|
$ |
0.23 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share |
$ |
0.22 |
|
$ |
0.06 |
|
|
$ |
0.28 |
|
$ |
0.24 |
|
$ |
(0.02 |
) |
|
$ |
0.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares used in computing earnings per share |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
55,329,617 |
|
|
|
|
55,329,617 |
|
|
54,858,038 |
|
|
|
|
54,858,038 |
Diluted |
|
56,029,698 |
|
|
|
|
56,180,242 |
|
|
55,682,707 |
|
|
|
|
55,896,940 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 or
income and re-organization costs. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended |
|
|
|
|
|
Nine months
ended |
|
|
|
|
|
September 30, 2019 |
|
|
|
|
|
September 30, 2018 |
|
|
|
|
|
Unaudited |
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income |
|
|
$ |
12,517 |
|
|
|
|
|
|
$ |
13,114 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
|
|
|
|
|
|
|
|
|
Non-cash
stock-based compensation expenses |
|
|
|
198 |
|
|
|
|
|
|
|
77 |
|
|
|
Amortization
of intangible assets related to acquisition transactions |
|
|
|
479 |
|
|
|
|
|
|
|
2,621 |
|
|
|
Re-organization costs |
|
|
|
29 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
706 |
|
|
|
|
|
|
|
2,698 |
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
Non-cash
stock-based compensation expenses |
|
|
|
1,532 |
|
|
|
|
|
|
|
653 |
|
|
|
Amortization
of intangible assets related to acquisition transactions |
|
|
|
152 |
|
|
|
|
|
|
|
152 |
|
|
|
Trade
secrets litigation expenses |
|
|
|
100 |
|
|
|
|
|
|
|
- |
|
|
|
Re-organization costs |
|
|
|
555 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
2,339 |
|
|
|
|
|
|
|
805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax benefit
adjustment |
|
|
|
- |
|
|
|
|
|
|
|
(4,111 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income |
|
|
$ |
15,562 |
|
|
|
|
|
|
$ |
12,506 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GILAT SATELLITE NETWORKS LTD. |
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION |
|
|
|
|
|
|
|
U.S.
dollars in thousands |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended |
Three months
ended |
|
September 30, |
|
September 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
Unaudited |
|
Unaudited |
|
|
|
|
|
|
|
|
GAAP operating income |
$ |
16,333 |
|
$ |
13,775 |
|
$ |
6,991 |
|
$ |
5,971 |
Add: |
|
|
|
|
|
|
|
Non-cash
stock-based compensation expenses |
|
1,730 |
|
|
730 |
|
|
437 |
|
|
238 |
Re-organization costs |
|
585 |
|
|
- |
|
|
- |
|
|
- |
Trade
secrets litigation expenses |
|
100 |
|
|
- |
|
|
- |
|
|
- |
Depreciation
and amortization (*) |
|
8,413 |
|
|
10,205 |
|
|
2,627 |
|
|
2,883 |
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
27,161 |
|
$ |
24,710 |
|
$ |
10,055 |
|
$ |
9,092 |
|
|
|
|
|
|
|
|
(*) includng
amortization of lease incentive |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT REVENUE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended |
|
Three months
ended |
|
September 30, |
|
September 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
Unaudited |
|
Unaudited |
|
|
|
|
|
|
|
|
Fixed
Networks |
$ |
94,104 |
|
$ |
108,786 |
|
$ |
27,268 |
|
$ |
34,943 |
Mobility
Solutions |
|
70,615 |
|
|
67,626 |
|
|
27,116 |
|
|
21,848 |
Terrestrial
Infrastructure Projects |
|
20,459 |
|
|
20,250 |
|
|
9,000 |
|
|
5,989 |
|
|
|
|
|
|
|
|
Total revenue |
$ |
185,178 |
|
$ |
196,662 |
|
$ |
63,384 |
|
$ |
62,780 |
|
|
|
|
|
|
|
|
|
|
|
|
GILAT SATELLITE NETWORKS LTD. |
|
|
|
CONSOLIDATED BALANCE SHEET |
|
|
|
U.S.
dollars in thousands |
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
2019 |
|
2018 |
|
Unaudited |
|
Audited |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
Cash and cash equivalents |
$ |
53,089 |
|
|
$ |
67,381 |
|
Restricted cash |
|
30,916 |
|
|
|
32,305 |
|
Restricted cash held by trustees |
|
75 |
|
|
|
4,372 |
|
Trade receivables, net |
|
44,184 |
|
|
|
47,164 |
|
Contract assets |
|
21,392 |
|
|
|
47,760 |
|
Inventories |
|
27,512 |
|
|
|
21,109 |
|
Other current assets |
|
25,901 |
|
|
|
26,022 |
|
|
|
|
|
Total current assets |
|
203,069 |
|
|
|
246,113 |
|
|
|
|
|
LONG-TERM INVESTMENTS AND RECEIVABLES: |
|
|
|
Long-term restricted cash |
|
145 |
|
|
|
146 |
|
Severance pay funds |
|
6,871 |
|
|
|
6,780 |
|
Long term deferred tax assets |
|
2,491 |
|
|
|
4,127 |
|
Operating lease right-of-use assets |
|
4,595 |
|
|
|
- |
|
Other long term receivables |
|
13,519 |
|
|
|
7,276 |
|
|
|
|
|
Total long-term investments and receivables |
|
27,621 |
|
|
|
18,329 |
|
|
|
|
|
PROPERTY AND EQUIPMENT, NET |
|
82,976 |
|
|
|
84,403 |
|
|
|
|
|
INTANGIBLE ASSETS, NET |
|
1,640 |
|
|
|
2,434 |
|
|
|
|
|
GOODWILL |
|
43,468 |
|
|
|
43,468 |
|
|
|
|
|
TOTAL ASSETS |
$ |
358,774 |
|
|
$ |
394,747 |
|
|
|
|
|
GILAT SATELLITE NETWORKS LTD. |
|
|
|
CONSOLIDATED BALANCE SHEET |
|
|
|
U.S.
dollars in thousands |
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
2019 |
|
2018 |
|
Unaudited |
|
Audited |
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
Current maturities of long-term loans |
$ |
4,203 |
|
|
$ |
4,458 |
|
Trade payables |
|
20,070 |
|
|
|
24,636 |
|
Accrued expenses |
|
57,906 |
|
|
|
67,533 |
|
Advances from customers and deferred revenues |
|
20,056 |
|
|
|
29,133 |
|
Operating lease liabilities |
|
1,628 |
|
|
|
- |
|
Other current liabilities |
|
12,104 |
|
|
|
14,588 |
|
|
|
|
|
Total current liabilities |
|
115,967 |
|
|
|
140,348 |
|
|
|
|
|
LONG-TERM LIABILITIES: |
|
|
|
Accrued severance pay |
|
7,085 |
|
|
|
6,649 |
|
Long-term loans, net of current maturities |
|
4,000 |
|
|
|
8,098 |
|
Operating lease liabilities |
|
2,975 |
|
|
|
- |
|
Other long-term liabilities |
|
109 |
|
|
|
580 |
|
|
|
|
|
Total long-term liabilities |
|
14,169 |
|
|
|
15,327 |
|
|
|
|
|
SHAREHOLDERS' EQUITY: |
|
|
|
Share capital - ordinary shares of NIS 0.2 par value |
|
2,642 |
|
|
|
2,625 |
|
Additional paid-in capital |
|
926,944 |
|
|
|
924,856 |
|
Accumulated other comprehensive loss |
|
(5,572 |
) |
|
|
(5,380 |
) |
Accumulated deficit |
|
(695,376 |
) |
|
|
(683,029 |
) |
|
|
|
|
Total shareholders' equity |
|
228,638 |
|
|
|
239,072 |
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
358,774 |
|
|
$ |
394,747 |
|
|
|
|
|
|
|
|
|
|
|
|
|
GILAT SATELLITE NETWORKS LTD. |
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
|
|
|
|
|
|
U.S.
dollars in thousands |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended |
Three months
ended |
|
September 30, |
|
September 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
Unaudited |
|
Unaudited |
Cash
flows from operating activities: |
|
|
|
|
|
|
|
Net income |
$ |
12,517 |
|
|
$ |
13,114 |
|
|
$ |
6,288 |
|
|
$ |
8,652 |
|
Adjustments required to reconcile net income to net cash
provided by operating activities: |
|
|
|
|
|
|
|
Depreciation
and amortization |
|
8,247 |
|
|
|
10,205 |
|
|
|
2,565 |
|
|
|
2,883 |
|
Capital loss
from disposal of property and equipment |
|
- |
|
|
|
96 |
|
|
|
- |
|
|
|
96 |
|
Stock-based
compensation of options |
|
1,730 |
|
|
|
730 |
|
|
|
437 |
|
|
|
238 |
|
Accrued
severance pay, net |
|
345 |
|
|
|
45 |
|
|
|
(37 |
) |
|
|
(2 |
) |
Exchange
rate differences on long-term loans |
|
- |
|
|
|
(24 |
) |
|
|
- |
|
|
|
(11 |
) |
Deferred
income taxes, net |
|
1,081 |
|
|
|
(4,415 |
) |
|
|
(304 |
) |
|
|
(4,386 |
) |
Decrease
(increase) in trade receivables, net |
|
141 |
|
|
|
11,416 |
|
|
|
(2,365 |
) |
|
|
(3,673 |
) |
Decrease
(increase) in contract assets |
|
25,408 |
|
|
|
10,793 |
|
|
|
25,640 |
|
|
|
(3,587 |
) |
Increase in
other assets (including short-term, long-term and deferred
charges) |
|
(1,419 |
) |
|
|
(10,659 |
) |
|
|
(1,390 |
) |
|
|
(1,508 |
) |
Decrease
(increase) in inventories |
|
(7,685 |
) |
|
|
834 |
|
|
|
(1,548 |
) |
|
|
502 |
|
Decrease in
trade payables |
|
(4,515 |
) |
|
|
(12,249 |
) |
|
|
(8,448 |
) |
|
|
(615 |
) |
Decrease in
accrued expenses |
|
(8,904 |
) |
|
|
(5,108 |
) |
|
|
(1,828 |
) |
|
|
(3,128 |
) |
Increase
(decrease) in advance from customers |
|
(9,540 |
) |
|
|
11,129 |
|
|
|
(1,135 |
) |
|
|
16,109 |
|
Decrease in
advances from customers, held by trustees |
|
- |
|
|
|
(1,478 |
) |
|
|
- |
|
|
|
- |
|
Increase
(decrease) in other current liabilities and other long term
liabilities |
|
(2,659 |
) |
|
|
3,597 |
|
|
|
(708 |
) |
|
|
(1,978 |
) |
Net
cash provided by operating activities |
|
14,747 |
|
|
|
28,026 |
|
|
|
17,167 |
|
|
|
9,592 |
|
|
|
|
|
|
|
|
|
Cash
flows from investing activities: |
|
|
|
|
|
|
|
Purchase of
property and equipment |
|
(5,649 |
) |
|
|
(7,905 |
) |
|
|
(2,062 |
) |
|
|
(2,891 |
) |
Net
cash used in investing activities |
|
(5,649 |
) |
|
|
(7,905 |
) |
|
|
(2,062 |
) |
|
|
(2,891 |
) |
|
|
|
|
|
|
|
|
Cash
flows from financing activities: |
|
|
|
|
|
|
|
Exercise of
stock options |
|
375 |
|
|
|
1,638 |
|
|
|
- |
|
|
|
1,065 |
|
Repayment of
long-term loans |
|
(4,353 |
) |
|
|
(4,356 |
) |
|
|
(122 |
) |
|
|
(107 |
) |
Dividend
payment |
|
(24,864 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net
cash provided by (used in) financing activities |
|
(28,842 |
) |
|
|
(2,718 |
) |
|
|
(122 |
) |
|
|
958 |
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash, cash equivalents
and restricted cash |
|
(235 |
) |
|
|
(837 |
) |
|
|
(256 |
) |
|
|
(128 |
) |
|
|
|
|
|
|
|
|
Increase (decrease) in cash, cash equivalents and
restricted cash |
|
(19,979 |
) |
|
|
16,566 |
|
|
|
14,727 |
|
|
|
7,531 |
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and restricted cash at the beginning
of the period |
|
104,204 |
|
|
|
86,757 |
|
|
|
69,498 |
|
|
|
95,792 |
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and restricted cash at the end of
the period |
$ |
84,225 |
|
|
$ |
103,323 |
|
|
$ |
84,225 |
|
|
$ |
103,323 |
|
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