PETAH TIKVA, Israel, Feb. 12, 2019 /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 fourth quarter and
full year ended December 31,
2018.
Fourth Quarter and Full Year 2018 Key Financial
Highlights:
- Quarterly revenues were $69.7
million, compared with $82.7
million in Q4 2017. Full year 2018 revenues were
$266.4 million versus $282.8 million in 2017.
- Continued strong profitability:
-
- Quarterly GAAP operating income increased to $7.5 million, up 33.1% from Q4 2017. Full
year GAAP operating income increased 96.0% to $21.3 million.
- Quarterly Non-GAAP operating income rose to $7.9 million, an increase of 12.2% from Q4 2017.
Full year Non-GAAP operating income was up 36.0% to
$25.1 million from 2017.
- Quarterly GAAP net income was $5.3
million, or $0.09 per diluted
share compared with $3.4 million, or
$0.06 per diluted share, in Q4 2017.
Full year GAAP net income was $18.4
million, or $0.33 per diluted
share, compared with $6.8 million, or
$0.12 per diluted share, in 2017.
Full year 2018 net income includes a deferred tax benefit of
$4.1 million recognized in the third
quarter of 2018.
- Quarterly Non-GAAP net income was $5.7
million, or $0.10 per diluted
share, compared to $4.7 million, or
$0.09 per diluted share, in Q4 2017.
Full year Non-GAAP net income was $18.2
million, or $0.32 per diluted
share, compared with $14.6 million,
or $0.27 per diluted share, in
2017.
- Adjusted EBITDA for Q4 2018 increased 17.6% from Q4 2017 to
$10.5 million. Full year 2018
Adjusted EBITDA rose 34.6% from 2017 to $35.2 million.
- Management objectives for 2019: revenue range between
$275 million to $295 million, GAAP operating income of between
$23 million and $27 million, and Adjusted EBITDA between
$38 million and $42 million.
- The Gilat Board of Directors expects to declare a cash dividend
estimated at $25 million (or
approximately $0.45 per share),
subject to final approval of our audited financial statements to be
issued in March 2019. Under the
Israeli Companies Law such a dividend will be based on the Company
meeting the criteria set out in the Israeli Companies Law.
Yona Ovadia, CEO of Gilat,
commented:
"I am pleased to report that our strong fourth quarter concludes
a year of important progress for Gilat as we advanced our business
strategy and achieved substantial profitability growth.
"We were successful in achieving our objectives through our
continued focus on our growth engines of Broadband, Mobile Cellular
Backhaul and Mobility IFC, along with continued efforts to drive
costs out of the business.
"We secured significant Broadband business around the globe over
the past year including: NBN in Australia, Gazprom in Russia, ChinaSatcom in China, LASCOM in Japan, Hispasat in Latin America and ISRO in India. In the Mobile market, we continued as
the front-runner in the LTE/4G satellite backhaul market with
expansion of projects with existing customers and additional
contract wins such as Telstra in Australia. In the Mobility market, we reached
an important milestone with our dual-band aero terminal by passing
the standard for the environmental testing of avionics hardware and
receiving the DO-160 certification. Lastly, we continued investing
in product leadership, as demonstrated by the successful trials for
aero and maritime connectivity solutions over Telesat's phase 1 LEO
satellite, as well as the announcement of the 5G-ready powerful
solution that provides new levels of speeds and capabilities, in
support of the growing demand of data consumption.
"Further, we executed our plan to improve profitability, with
the result that GAAP operating income for full-year 2018 increased
96.0% from 2017, while Adjusted EBITDA rose 34.6% and GAAP net
income reached $18.4 million or
$0.33 per diluted share."
Mr. Ovadia concluded:
"Looking at 2019, we will continue our focus on improving
profitability, by further developing and expanding our existing
growth engines, as we see continued reception to our services and
solutions. As the market constantly evolves and requires higher
throughputs and greater efficiency, we will also continue to invest
substantially in R&D and in our product roadmap, to maintain
product leadership especially in the era of NGSO and 5G.
"I am pleased to say that we have a substantial pipeline going
into 2019, which is reflected in our management objectives that
include further revenue and profitability growth for the year, even
with a significant investment in R&D.
"I am also pleased to say that with this continued and
significant progress and the strength of the Gilat balance sheet,
the Board is planning to award a cash dividend to shareholders
while maintaining our ample liquidity to fund future growth."
Key Recent Announcements:
- Gilat Demonstrates Exceptional Maritime Connectivity over
Telesat's Phase 1 LEO Satellite
- Gilat Awarded Multi-Year Contract for Broadband Solution Over
ISRO's GSAT-11 Satellite Covering India
- Gilat Launches 5G-Ready Satellite Backhaul Solution
- Dish Mexico Selects Gilat and Hispasat for Delivery of
High-Quality Broadband Services to the People of Mexico
- LASCOM Awards Gilat Multi-Million Dollar Project for
Japan's Next Generation Disaster
Response Platform
- Gilat's Dual-Band Aero Terminal Receives DO-160
Certification
Conference Call and Webcast Details:
Gilat management will host a conference call today, Tuesday, February 12, to discuss fourth
quarter and full year 2018 results. The details are as
follows:
Date:
Tuesday,
February 12, 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/gilatq4-2018.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: February
12, 2019 at 12:00 PM EST /
19:00 IST
End: February
17, 2019 at 12:00 PM EST /
19:00 IST
Dial-in: US:
+1-888-326-9310
International:
(972) 3-925-5901
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. Non-GAAP
financial measures mainly exclude the effect of stock based
compensation, amortization of purchased intangibles, litigation
expenses, income related to trade secrets claims and 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 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.
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
GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except share and per share
data)
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Twelve months
ended December
31,
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Three months ended
December 31,
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2018
|
|
2017
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|
2018
|
|
2017
|
|
|
|
|
|
|
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|
|
Unaudited
|
|
Audited
|
|
Unaudited
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
266,391
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|
$
282,756
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|
$
69,729
|
|
$
82,652
|
|
|
|
|
|
Cost of
revenues
|
|
|
172,354
|
|
200,261
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|
43,715
|
|
57,416
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
94,037
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|
82,495
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|
26,014
|
|
25,236
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|
|
|
|
|
|
|
|
|
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|
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|
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|
|
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|
Research and
development expenses
|
|
34,449
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|
29,433
|
|
9,169
|
|
8,785
|
|
|
|
|
|
Less -
grants
|
|
|
1,426
|
|
1,419
|
|
222
|
|
599
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|
|
|
|
|
Research and
development expenses, net
|
|
33,023
|
|
28,014
|
|
8,947
|
|
8,186
|
|
|
|
|
|
Selling and marketing
expenses
|
|
22,706
|
|
23,759
|
|
5,497
|
|
6,572
|
|
|
|
|
|
General and
administrative expenses
|
|
17,024
|
|
19,861
|
|
4,061
|
|
4,835
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|
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|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
72,753
|
|
71,634
|
|
18,505
|
|
19,593
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|
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|
|
|
|
|
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|
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|
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|
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Operating
income
|
|
|
21,284
|
|
10,861
|
|
7,509
|
|
5,643
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|
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Financial expenses,
net
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|
|
(4,298)
|
|
(4,307)
|
|
(1,132)
|
|
(1,138)
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|
|
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|
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|
|
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|
|
Income before
taxes on income
|
|
16,986
|
|
6,554
|
|
6,377
|
|
4,505
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
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|
|
Taxes on income (tax
benefit)
|
|
(1,423)
|
|
(247)
|
|
1,082
|
|
1,102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Net
income
|
|
|
$
18,409
|
|
$
6,801
|
|
$
5,295
|
|
$
3,403
|
|
|
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|
|
Basic earnings per
share
|
|
|
$
0.34
|
|
$
0.12
|
|
$
0.10
|
|
$
0.06
|
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|
Diluted earnings
per share
|
|
$
0.33
|
|
$
0.12
|
|
$
0.09
|
|
$
0.06
|
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Weighted average
number of shares used in computing earnings per
share
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|
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|
Basic
|
|
|
54,927,272
|
|
54,680,822
|
|
55,134,977
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|
54,719,903
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|
|
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Diluted
|
|
|
55,752,642
|
|
54,851,967
|
|
55,962,447
|
|
55,237,923
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GILAT SATELLITE
NETWORKS LTD.
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RECONCILIATION
BETWEEN GAAP AND NON-GAAP STATEMENTS OF OPERATIONS
|
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|
FOR COMPARATIVE
PURPOSES
|
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U.S. dollars in
thousands (except share and per share data)
|
|
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Three months
ended
|
|
Three months
ended
|
|
|
|
|
|
|
|
December 31,
2018
|
|
December 31,
2017
|
|
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|
|
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|
|
GAAP
|
|
Adjustments
(1)
|
|
Non-GAAP
|
|
GAAP
|
|
Adjustments
(1)
|
|
Non-GAAP
|
|
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|
|
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|
|
Unaudited
|
|
Unaudited
|
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|
|
Gross
profit
|
|
|
|
|
|
$
26,014
|
|
269
|
|
$
26,283
|
|
$
25,236
|
|
1,212
|
|
$
26,448
|
Operating
expenses
|
|
|
|
|
18,505
|
|
(91)
|
|
18,414
|
|
19,593
|
|
(160)
|
|
19,433
|
Operating
income
|
|
|
|
|
7,509
|
|
360
|
|
7,869
|
|
5,643
|
|
1,372
|
|
7,015
|
Income before taxes
on income
|
|
|
|
6,377
|
|
360
|
|
6,737
|
|
4,505
|
|
1,318
|
|
5,823
|
Net income
|
|
|
|
|
|
$
5,295
|
|
360
|
|
$
5,655
|
|
$
3,403
|
|
1,318
|
|
$
4,721
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
|
|
|
$
0.10
|
|
$
-
|
|
$
0.10
|
|
$
0.06
|
|
$
0.03
|
|
$
0.09
|
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|
Diluted earnings per
share
|
|
|
|
$
0.09
|
|
$
0.01
|
|
$
0.10
|
|
$
0.06
|
|
$
0.03
|
|
$
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computing earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
55,134,977
|
|
|
|
55,134,977
|
|
54,719,903
|
|
|
|
54,719,903
|
|
Diluted
|
|
|
|
|
55,962,447
|
|
|
|
56,160,425
|
|
55,237,923
|
|
|
|
55,507,634
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 income and tax benefit under
amnesty program.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
|
|
|
|
|
|
December 31,
2018
|
|
December 31,
2017
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
|
|
|
|
|
|
|
$
5,295
|
|
|
|
|
|
$
3,403
|
|
|
Gross
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based
compensation expenses
|
|
|
|
|
37
|
|
|
|
|
|
17
|
|
|
Amortization of
intangible assets related to acquisition transactions
|
|
232
|
|
|
|
|
|
1,195
|
|
|
|
|
|
|
|
|
|
|
|
269
|
|
|
|
|
|
1,212
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based
compensation expenses
|
|
|
|
|
239
|
|
|
|
|
|
213
|
|
|
Amortization of
intangible assets related to acquisition transactions
|
|
52
|
|
|
|
|
|
125
|
|
|
Trade secrets
litigation income
|
|
|
|
|
|
|
(200)
|
|
|
|
|
|
-
|
|
|
Tax benefit under
amnesty program
|
|
|
|
|
|
-
|
|
|
|
|
|
(178)
|
|
|
|
|
|
|
|
|
|
|
|
91
|
|
|
|
|
|
160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance and taxes on
income under amnesty program
|
|
|
|
-
|
|
|
|
|
|
(54)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income
|
|
|
|
|
|
|
$
5,655
|
|
|
|
|
|
$
4,721
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
months ended
|
|
Twelve
months ended
|
|
|
|
|
|
|
|
December 31,
2018
|
|
December 31,
2017
|
|
|
|
|
|
|
|
GAAP
|
|
Adjustments
(1)
|
|
Non-GAAP
|
|
GAAP
|
|
Adjustments
(1)
|
|
Non-GAAP
|
|
|
|
|
|
|
|
Unaudited
|
|
Audited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
|
$
94,037
|
|
2,967
|
|
$
97,004
|
|
$
82,495
|
|
4,832
|
|
$
87,327
|
Operating
expenses
|
|
|
|
|
72,753
|
|
(896)
|
|
71,857
|
|
71,634
|
|
(2,802)
|
|
68,832
|
Operating
income
|
|
|
|
|
21,284
|
|
3,863
|
|
25,147
|
|
10,861
|
|
7,634
|
|
18,495
|
Income before taxes
on income
|
|
|
|
16,986
|
|
3,863
|
|
20,849
|
|
6,554
|
|
7,817
|
|
14,371
|
Net income
|
|
|
|
|
|
$
18,409
|
|
(248)
|
|
$
18,161
|
|
$
6,801
|
|
7,817
|
|
$
14,618
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
|
|
|
$
0.34
|
|
$ (0.01)
|
|
$
0.33
|
|
$
0.12
|
|
$
0.15
|
|
$
0.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
|
|
$
0.33
|
|
$ (0.01)
|
|
$
0.32
|
|
$
0.12
|
|
$
0.15
|
|
$
0.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
|
|
|
|
|
|
|
|
|
|
|
|
|
computing earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
54,927,272
|
|
|
|
54,927,272
|
|
54,680,822
|
|
|
|
54,680,822
|
|
Diluted
|
|
|
|
|
55,752,642
|
|
|
|
55,962,811
|
|
54,851,967
|
|
|
|
55,014,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, tax expenses under amnesty program and and
initial recognition of deferred tax asset with respect to carry
forward losses.
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended
|
Twelve months
ended
|
|
|
|
|
|
|
|
|
|
December 31,
2018
|
|
December 31,
2017
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
|
|
|
|
|
|
$
18,409
|
|
$
6,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based
compensation expenses
|
|
|
|
114
|
|
56
|
|
|
Amortization of
intangible assets related to acquisition transactions
|
|
2,853
|
|
4,776
|
|
|
|
|
|
|
|
|
|
|
|
2,967
|
|
4,832
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based
compensation expenses
|
|
|
|
892
|
|
800
|
|
|
Amortization of
intangible assets related to acquisition transactions
|
|
204
|
|
679
|
|
|
Trade secrets
litigation expenses (income)
|
|
|
|
|
(200)
|
|
873
|
|
|
Tax expenses under
amnesty program
|
|
|
|
|
-
|
|
450
|
|
|
|
|
|
|
|
|
|
|
|
896
|
|
2,802
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance and taxes on
income under amnesty program
|
|
|
-
|
|
183
|
|
|
Tax benefit
adjustment
|
|
|
|
|
|
|
(4,111)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income
|
|
|
|
|
|
|
$
18,161
|
|
$
14,618
|
|
|
GILAT SATELLITE
NETWORKS LTD.
|
|
|
|
|
|
SUPPLEMENTAL
INFORMATION
|
|
|
|
|
|
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months
ended
|
|
Three months
ended
|
|
|
|
|
|
December
31,
|
|
|
|
December
31,
|
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
|
$
21,284
|
|
$
10,861
|
|
$
7,509
|
|
$
5,643
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based
compensation expenses
|
1,006
|
|
856
|
|
276
|
|
230
|
Trade secrets
litigation expenses (income)
|
(200)
|
|
873
|
|
(200)
|
|
-
|
Tax expenses
(benefit) under amnesty program
|
-
|
|
450
|
|
-
|
|
(178)
|
Depreciation and
amortization
|
13,149
|
|
13,140
|
|
2,944
|
|
3,256
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$35,239
|
|
$
26,180
|
|
$
10,529
|
|
$
8,951
|
|
|
|
|
|
|
|
|
|
SEGMENT
REVENUE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months
ended
|
|
|
Three months
ended
|
|
|
|
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
Fixed
Networks
|
|
|
$
144,208
|
|
$
116,105
|
|
$
35,421
|
|
$
34,698
|
Mobility
Solutions
|
|
97,180
|
|
88,397
|
|
29,555
|
|
32,600
|
Terrestrial
Infrastructure Projects
|
25,003
|
|
78,254
|
|
4,753
|
|
15,354
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
$
266,391
|
|
$
282,756
|
|
$
69,729
|
|
$
82,652
|
GILAT SATELLITE
NETWORKS LTD.
|
|
|
|
|
CONSOLIDATED
BALANCE SHEET
|
|
|
|
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2018
|
|
2017
|
|
|
|
Unaudited
|
|
Audited
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
$
67,381
|
|
$
52,957
|
|
Restricted
cash
|
32,305
|
|
29,288
|
|
Restricted cash held
by trustees
|
4,372
|
|
4,325
|
|
Trade receivables,
net
|
94,924
|
|
108,842
|
|
Inventories
|
21,109
|
|
28,853
|
|
Other current
assets
|
26,022
|
|
19,415
|
|
|
|
|
|
|
|
Total
current assets
|
246,113
|
|
243,680
|
|
|
|
|
|
|
|
LONG-TERM
INVESTMENTS AND RECEIVABLES:
|
|
|
|
|
Long-term restricted
cash
|
146
|
|
187
|
|
Severance pay
funds
|
6,780
|
|
8,188
|
|
Long term deferred
tax asset
|
4,127
|
|
861
|
|
Other long term
receivables
|
7,276
|
|
7,217
|
|
|
|
|
|
|
|
Total long-term
investments and receivables
|
18,329
|
|
16,453
|
|
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
84,403
|
|
82,246
|
|
|
|
|
|
|
|
INTANGIBLE ASSETS,
NET
|
2,434
|
|
5,709
|
|
|
|
|
|
|
|
GOODWILL
|
43,468
|
|
43,468
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
$
394,747
|
|
$
391,556
|
|
|
|
|
|
|
|
GILAT SATELLITE
NETWORKS LTD.
|
|
|
|
|
CONSOLIDATED
BALANCE SHEET (Cont.)
|
|
|
|
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2018
|
|
2017
|
|
|
|
Unaudited
|
|
Audited
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Current maturities of
long-term loans
|
$
4,458
|
|
$
4,479
|
|
Trade
payables
|
24,636
|
|
33,715
|
|
Accrued
expenses
|
67,533
|
|
75,270
|
|
Advances from
customers and deferred revenues
|
29,133
|
|
16,721
|
|
Advances from
customers, held by trustees
|
-
|
|
1,416
|
|
Other current
liabilities
|
14,588
|
|
20,044
|
|
|
|
|
|
|
|
Total
current liabilities
|
140,348
|
|
151,645
|
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
Accrued severance
pay
|
6,649
|
|
7,999
|
|
Long-term loans, net
of current maturities
|
8,098
|
|
12,582
|
|
Other long-term
liabilities
|
580
|
|
1,008
|
|
|
|
|
|
|
|
Total
long-term liabilities
|
15,327
|
|
21,589
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
Share capital -
ordinary shares of NIS 0.2 par value
|
2,625
|
|
2,601
|
|
Additional paid-in
capital
|
924,856
|
|
921,726
|
|
Accumulated other
comprehensive loss
|
(5,380)
|
|
(3,046)
|
|
Accumulated
deficit
|
(683,029)
|
|
(702,959)
|
|
|
|
|
|
|
|
Total
shareholders' equity
|
239,072
|
|
218,322
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
$
394,747
|
|
$
391,556
|
|
|
|
|
|
|
|
(*) Certain
comparative figures have been reclassified to conform to the
current year presentation.
|
|
The reclassification
had no effect on previously reported net income or shareholders'
equity.
|
|
|
GILAT SATELLITE
NETWORKS LTD.
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS (*)
|
|
|
|
|
|
|
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months
ended
|
|
|
|
Three months
ended
|
|
|
|
|
|
December
31,
|
|
|
|
December
31,
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
Unaudited
|
|
Audited
|
|
Unaudited
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net
income
|
|
$
18,409
|
|
$
6,801
|
|
$
5,295
|
|
$
3,403
|
Adjustments
required to reconcile net income
|
|
|
|
|
|
|
|
to net cash
provided by (used in) operating activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
13,149
|
|
13,140
|
|
2,944
|
|
3,256
|
Capital loss from
disposal of property and equipment
|
761
|
|
245
|
|
665
|
|
110
|
Stock-based
compensation of options and RSU's
|
1,006
|
|
856
|
|
276
|
|
230
|
Accrued severance
pay, net
|
57
|
|
118
|
|
12
|
|
(11)
|
Accrued interest and
exchange rate differences on
|
|
|
|
|
|
|
|
short
and long-term restricted cash, net
|
|
|
|
|
|
|
|
Exchange rate
differences on long-term loans
|
(34)
|
|
186
|
|
(10)
|
|
35
|
Deferred income
taxes, net
|
(3,671)
|
|
189
|
|
744
|
|
489
|
Decrease (increase)
in trade receivables, net
|
13,090
|
|
(19,588)
|
|
(9,119)
|
|
(22,421)
|
Decrease (increase)
in other assets (including short-term, long-term
|
|
|
|
|
|
|
|
and
deferred charges)
|
(4,917)
|
|
(9,147)
|
|
1,007
|
|
(5,307)
|
Decrease (increase)
in inventories
|
5,257
|
|
(10,763)
|
|
4,423
|
|
(1,534)
|
Decrease in
restricted cash directly related to operating activities,
net
|
|
|
|
|
|
|
|
Increase (decrease)
in trade payables
|
(8,926)
|
|
4,087
|
|
3,323
|
|
5,169
|
Increase (decrease)
in accrued expenses
|
(7,206)
|
|
19,633
|
|
(2,283)
|
|
4,978
|
Increase (decrease)
in advance from customers
|
9,899
|
|
(18,959)
|
|
(1,230)
|
|
(7,245)
|
Decrease) in advances
from customers, held
|
|
|
|
|
|
|
|
by
trustees
|
|
(1,478)
|
|
(6,185)
|
|
-
|
|
(3,845)
|
Increase (decrease)
in other current liabilities and other long term
liabilities
|
(3,379)
|
|
2,164
|
|
(2,057)
|
|
1,806
|
Net cash provided
by (used in) operating activities
|
32,017
|
|
(17,223)
|
|
3,990
|
|
(20,887)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
(10,759)
|
|
(3,692)
|
|
(2,854)
|
|
(284)
|
Investment in
restricted cash held by trustees
|
|
|
|
|
|
|
|
Proceeds from
restricted cash held by trustees
|
|
|
|
|
|
|
|
Investment in
restricted cash (including long-term)
|
|
|
|
|
|
|
|
Proceeds from
restricted cash (including long-term)
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
(10,759)
|
|
(3,692)
|
|
(2,854)
|
|
(284)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Capital lease
payments
|
|
|
|
|
-
|
|
-
|
Issuance of shares in
a rights offering
|
-
|
|
-
|
|
-
|
|
-
|
Issuance of
restricted stock units and exercise of stock options
|
2,149
|
|
661
|
|
511
|
|
92
|
Short term bank
credit, net
|
-
|
|
-
|
|
-
|
|
-
|
Repayment of
long-term loans
|
(4,470)
|
|
(4,673)
|
|
(114)
|
|
(145)
|
Net cash provided
by (used in) financing activities
|
(2,321)
|
|
(4,012)
|
|
397
|
|
(53)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
(1,490)
|
|
51
|
|
(652)
|
|
(204)
|
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash, cash equivalents and restricted
cash
|
17,447
|
|
(24,876)
|
|
881
|
|
(21,428)
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at the beginning of the
period
|
86,757
|
|
111,633
|
|
103,323
|
|
108,185
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at the end of the
period
|
$
104,204
|
|
$
86,757
|
|
$104,204
|
|
$86,757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) 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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
Unaudited
|
|
Audited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
67,381
|
|
$
52,957
|
|
|
|
|
Restricted
cash
|
|
32,305
|
|
29,288
|
|
|
|
|
Restricted cash held
by trustees
|
4,372
|
|
4,325
|
|
|
|
|
Long term restricted
cash
|
146
|
|
187
|
|
|
|
|
Cash, cash
equivalents and restricted cash shown in the consolidated statement
of cash flows
|
$
104,204
|
|
$
86,757
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/gilat-reports-strong-growth-in-profitability-in-q4-2018-and-fiscal-year-2018-targets-continued-strong-growth-in-2019-300794022.html
SOURCE Gilat Satellite Networks