Gilat Satellite Networks Ltd. (NASDAQ:GILT) (TASE:GILT), a
worldwide leader in satellite networking technology, solutions and
services, today reported its results for the second quarter ended
June 30, 2017.
Key Financial Highlights:
• Revenues for Q2 2017 were $66.2 million compared with $63.9
million in Q1 2017 and $67.9 million in Q2 2016.
• Profitability showed significant improvement, both
quarter-over-quarter and year-over-year:
- GAAP operating profit improved substantially to $1.9 million in
Q2 2017 from $18 thousand in Q1 2017, and compared with an
operating loss of $2.5 million in Q2 2016.
- Non-GAAP operating income grew to $4.1 million from $2.5
million in Q1 2017 and $0.5 million in Q2 2016.
- The Company achieved GAAP net income of $2.1 million, or $0.04
per diluted share in Q2 2017, compared with a loss of $0.8 million,
or $0.01 per diluted share, in Q1 2017, and a loss of $3.7 million,
or $0.07 per diluted share, in Q2 2016.
- Non-GAAP net income reached $4.6 million, or $0.08 per diluted
share, compared with $1.7 million, or $0.03 per diluted share in Q1
2017, and a non-GAAP loss of $0.6 million, or $0.01 per diluted
share, in Q2 2016.
- Adjusted EBITDA increased to $5.9 million, or 8.9% of revenues,
compared with $4.2 million, or 6.6% of revenues, in Q1 2017, and
$2.4 million, or 3.5% of revenues, in Q2 2016.
• Updated management objectives for 2017: revenue range
narrowed to between $280 to $290 million, GAAP operating income
raised to between $7 and $11 million, and Adjusted EBITDA raised to
between $22 and $26 million.
Yona Ovadia, CEO of Gilat, commented: “I am very pleased to
report another quarter of strong progress for Gilat. The Gilat
management team has maintained an ongoing focus on improving
profitability and optimizing our growth engines. That has resulted
in significant improvement in our profitability in the second
quarter with a substantial step-up in our operating income as well
as the achievement of GAAP net income, along with a major increase
in our Adjusted EBITDA, which increased 39% from the first quarter
of 2017 and 149% from the second quarter last year.
“With our increased profitability and the growing traction of
our new strategy, I am pleased to say that we have raised our
profitability objectives for 2017, including moving up the range
for Adjusted EBITDA to $22 to $26 million from the previous range
of $20 to $24 million.”
“The principal drivers of this profitability improvement in the
second quarter were a substantial increase in revenues from our
mobility growth engine, mainly our solutions for In-Flight
Connectivity (IFC). This demonstrates the earnings power and
potential of our strategic growth engines, which also include our
cellular backhaul over satellite solutions for the mobile
market.
“In the second quarter, we continued to see progress with our
growth engines. In Mobility, we are pleased that Gogo is now
installing our modems in an accelerated fashion on commercial
flights with a plan to reach over 1,800 aircrafts across more than
13 airlines. In addition, we continue to mature other opportunities
in this market.
“We are also pleased to see a growing market for consumer
broadband in Russia/CIS that is enabled by our innovative
technology, the Scorpio VSAT, which was selected by the leading
Russian DTH providers, now NTV-Plus in addition to
Tricolor.
“Furthermore, in the Mobile growth engine, we continue to
develop our telco strategy of providing leading LTE over satellite
cellular backhaul solutions to the industry. We are optimistic that
opportunities in our pipeline will soon mature.
“Lastly, the win of a significant deal with Telebras in Brazil
points to the start of a potential turnaround in our business in
LATAM, and we are focused on accelerating this trend.
Mr. Ovadia concluded: “We are pleased to report the continued
strong progress of Gilat in the second quarter as we continue to
focus on improving profitability while developing our Mobile and
Mobility growth engines. As our management objectives for full year
2017 indicate, we are optimistic about the rest of the year.”
Key Recent Announcements:
- Gilat Propels the Russian DTH Market into Broadband
Services
- Telebras, Brazil Awards Gilat Contract of Over USD 11
Million
- Intelsat and Gilat Unveil Mobile Reach Solar 3G Solution for
Mobile Network Operators that Need to Expand in Remote Areas
Conference Call and Webcast Details:
Gilat management will host a conference call today,
Tuesday, August 8, to discuss the second quarter
results. The details are as follows:
Conference Call and Webcast
Date: |
Tuesday, August 8,
2017 |
Start: |
09:30 AM EDT / 16:30
IDT |
Dial-in: |
US: 1-888-407-2553 |
|
International: (972)
3-918-0610 |
A simultaneous Webcast of the conference call will be available
on the Gilat website at www.gilat.com and through this link:
http://veidan-stream.com/gilatq2-2017.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: |
August 8, 2017 at 12:00
PM EDT / 19:00 IDT |
End: |
August 11, 2017 at
12:00 PM EDT / 19:00 IDT |
Dial-in: |
US: 1-888-782-4291 |
|
International: (972)
3-925-5918 |
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 tax 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 2017. 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.
GILAT SATELLITE NETWORKS LTD. |
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
U.S. dollars in thousands (except share and per share
data) |
|
|
|
|
|
Six months ended |
|
Three months ended |
|
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
Unaudited |
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
$ |
130,168 |
|
|
$ |
120,563 |
|
|
$ |
66,237 |
|
|
$ |
67,898 |
|
|
Cost of
revenues |
|
|
|
93,258 |
|
|
|
92,984 |
|
|
|
46,668 |
|
|
|
52,717 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
|
36,910 |
|
|
|
27,579 |
|
|
|
19,569 |
|
|
|
15,181 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
and development expenses |
|
|
13,467 |
|
|
|
12,593 |
|
|
|
6,712 |
|
|
|
6,705 |
|
|
Less -
grants |
|
|
|
523 |
|
|
|
638 |
|
|
|
476 |
|
|
|
552 |
|
|
Research
and development, net |
|
|
|
12,944 |
|
|
|
11,955 |
|
|
|
6,236 |
|
|
|
6,153 |
|
|
Selling and
marketing expenses |
|
|
|
11,350 |
|
|
|
10,976 |
|
|
|
5,555 |
|
|
|
5,853 |
|
|
General and
administrative expenses |
|
|
10,723 |
|
|
|
10,152 |
|
|
|
5,903 |
|
|
|
5,714 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
|
35,017 |
|
|
|
33,083 |
|
|
|
17,694 |
|
|
|
17,720 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
|
1,893 |
|
|
|
(5,504 |
) |
|
|
1,875 |
|
|
|
(2,539 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
expenses, net |
|
|
|
(2,046 |
) |
|
|
(1,603 |
) |
|
|
(1,242 |
) |
|
|
(860 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before taxes on income |
|
|
(153 |
) |
|
|
(7,107 |
) |
|
|
633 |
|
|
|
(3,399 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes on
income (tax benefit) |
|
|
|
(1,501 |
) |
|
|
569 |
|
|
|
(1,499 |
) |
|
|
251 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) |
|
|
$ |
1,348 |
|
|
$ |
(7,676 |
) |
|
$ |
2,132 |
|
|
$ |
(3,650 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share (basic and diluted) |
|
$ |
0.02 |
|
|
$ |
(0.16 |
) |
|
$ |
0.04 |
|
|
$ |
(0.07 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used
in |
|
|
|
|
|
|
|
|
|
|
computing earnings (loss) per share |
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
54,649,863 |
|
|
|
49,383,450 |
|
|
|
54,676,042 |
|
|
|
54,384,521 |
|
|
|
Diluted |
|
|
|
54,690,930 |
|
|
|
49,383,450 |
|
|
|
54,701,316 |
|
|
|
54,384,521 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
June 30, 2017 |
|
June 30, 2016 |
|
|
|
|
|
|
|
|
GAAP |
|
Adjustments (1) |
|
Non-GAAP |
|
GAAP |
|
Adjustments (1) |
|
Non-GAAP |
|
|
|
|
|
|
|
|
Unaudited |
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
|
|
|
$ |
19,569 |
|
|
1,205 |
|
|
$ |
20,774 |
|
$ |
15,181 |
|
|
|
1,225 |
|
|
$ |
16,406 |
|
|
Operating
expenses |
|
|
|
|
|
17,694 |
|
|
(1,049 |
) |
|
|
16,645 |
|
|
17,720 |
|
|
|
(1,839 |
) |
|
|
15,881 |
|
|
Operating
income (loss) |
|
|
|
|
|
1,875 |
|
|
2,254 |
|
|
|
4,129 |
|
|
(2,539 |
) |
|
|
3,064 |
|
|
|
525 |
|
|
Income
(loss) before taxes on income |
|
|
|
|
633 |
|
|
2,491 |
|
|
|
3,124 |
|
|
(3,399 |
) |
|
|
3,064 |
|
|
|
(335 |
) |
|
Net income
(loss) |
|
|
|
|
|
$ |
2,132 |
|
|
2,491 |
|
|
$ |
4,623 |
|
$ |
(3,650 |
) |
|
|
3,064 |
|
|
$ |
(586 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) per share (basic and diluted) |
|
|
|
$ |
0.04 |
|
|
0.04 |
|
|
$ |
0.08 |
|
$ |
(0.07 |
) |
|
|
0.06 |
|
|
$ |
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares used in |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
computing income (loss) per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
54,676,042 |
|
|
|
|
54,676,042 |
|
|
54,384,521 |
|
|
|
|
|
54,384,521 |
|
|
|
Diluted |
|
|
|
|
|
|
54,701,316 |
|
|
|
|
54,735,130 |
|
|
54,384,521 |
|
|
|
|
|
54,384,521 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 tax expenses under amnesty program. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
|
|
|
|
Three months
ended |
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2017 |
|
|
|
|
|
June 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income (loss) |
|
|
|
|
|
|
$ |
2,132 |
|
|
|
|
|
|
$ |
(3,650 |
) |
|
|
|
Gross
profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash
stock-based compensation expenses |
|
|
|
|
|
|
11 |
|
|
|
|
|
|
|
32 |
|
|
|
|
Amortization of intangible assets related to acquisition
transactions |
|
|
|
|
1,194 |
|
|
|
|
|
|
|
1,193 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,205 |
|
|
|
|
|
|
|
1,225 |
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash
stock-based compensation expenses |
|
|
|
|
|
|
203 |
|
|
|
|
|
|
|
270 |
|
|
|
|
Amortization of intangible assets related to acquisition
transactions |
|
|
|
|
193 |
|
|
|
|
|
|
|
195 |
|
|
|
|
Trade
secrets litigation expenses |
|
|
|
|
|
|
|
25 |
|
|
|
|
|
|
|
1,374 |
|
|
|
|
Tax
expenses under amnesty program |
|
|
|
|
|
|
628 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,049 |
|
|
|
|
|
|
|
1,839 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance and
taxes on income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax
expenses under amnesty program |
|
|
|
|
|
|
237 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non GAAP
income (loss) |
|
|
|
|
|
|
$ |
4,623 |
|
|
|
|
|
|
$ |
(586 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
|
|
|
|
|
|
|
Six months
ended |
|
Six months
ended |
|
|
|
|
|
|
|
|
30 June
2017 |
|
30 June
2016 |
|
|
|
|
|
|
|
|
GAAP |
|
Adjustments (1) |
|
Non-GAAP |
|
GAAP |
|
Adjustments (1) |
|
Non-GAAP |
|
|
|
|
|
|
|
|
Unaudited |
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
|
|
|
$ |
36,910 |
|
|
|
2,410 |
|
|
$ |
39,320 |
|
$ |
27,579 |
|
|
|
2,409 |
|
|
$ |
29,988 |
|
|
Operating
expenses |
|
|
|
|
|
35,017 |
|
|
|
(2,285 |
) |
|
|
32,732 |
|
|
33,083 |
|
|
|
(2,470 |
) |
|
|
30,613 |
|
|
Operating
income (loss) |
|
|
1,893 |
|
|
|
4,695 |
|
|
|
6,588 |
|
|
(5,504 |
) |
|
|
4,879 |
|
|
|
(625 |
) |
|
Income
(loss) before taxes on income |
|
|
(153 |
) |
|
|
4,932 |
|
|
|
4,779 |
|
|
(7,107 |
) |
|
|
4,879 |
|
|
|
(2,228 |
) |
|
Net income
(loss) |
|
$ |
1,348 |
|
|
|
4,932 |
|
|
$ |
6,280 |
|
$ |
(7,676 |
) |
|
|
4,879 |
|
|
$ |
(2,797 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) per share (basic and diluted) |
|
$ |
0.02 |
|
|
|
0.09 |
|
|
$ |
0.11 |
|
$ |
(0.16 |
) |
|
|
0.10 |
|
|
$ |
(0.06 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares used in |
|
|
|
|
|
|
|
|
|
|
|
|
|
computing net income (loss) per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
54,649,863 |
|
|
|
|
|
54,649,863 |
|
|
49,383,450 |
|
|
|
|
|
49,383,450 |
|
|
|
Diluted |
|
|
54,690,930 |
|
|
|
|
|
54,785,783 |
|
|
49,383,450 |
|
|
|
|
|
49,383,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 tax expenses under amnesty program. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended |
|
|
|
|
|
Six months
ended |
|
|
|
|
|
|
|
|
|
|
|
|
30 June 2017 |
|
|
|
|
|
30 June 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income (loss) |
|
|
|
|
|
|
$ |
1,348 |
|
|
|
|
|
|
$ |
(7,676 |
) |
|
|
|
Gross
profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash
stock-based compensation expenses |
|
|
|
|
|
|
22 |
|
|
|
|
|
|
|
21 |
|
|
|
|
Amortization of intangible assets related to acquisition
transactions |
|
|
|
|
2,388 |
|
|
|
|
|
|
|
2,388 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,410 |
|
|
|
|
|
|
|
2,409 |
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash
stock-based compensation expenses |
|
|
|
|
|
|
396 |
|
|
|
|
|
|
|
482 |
|
|
|
|
Amortization of intangible assets related to acquisition
transactions: |
|
|
|
|
388 |
|
|
|
|
|
|
|
388 |
|
|
|
|
Trade
secrets litigation expenses |
|
|
|
|
|
|
873 |
|
|
|
|
|
|
|
1,600 |
|
|
|
|
Tax
expenses under amnesty program |
|
|
|
|
|
|
628 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,285 |
|
|
|
|
|
|
|
2,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance and
taxes on income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax
expenses under amnesty program |
|
|
|
|
|
|
237 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non GAAP
income (loss) |
|
|
|
|
|
|
$ |
6,280 |
|
|
|
|
|
|
$ |
(2,797 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GILAT SATELLITE NETWORKS LTD. |
|
CONDENSED ADJUSTED EBITDA |
|
U.S. dollars in thousands |
|
|
|
|
|
Six months ended |
|
Three months ended |
|
|
|
|
|
June
30, |
|
June 30, |
|
|
|
|
|
|
2017 |
|
|
2016 |
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
Unaudited |
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
operating income (loss) |
|
$ |
1,893 |
|
$ |
(5,504 |
) |
|
$ |
1,875 |
|
$ |
(2,539 |
) |
|
Add: |
|
|
|
|
|
|
|
|
|
|
Non-cash
stock-based compensation expenses |
|
418 |
|
|
503 |
|
|
|
214 |
|
|
302 |
|
|
Trade
secrets litigation expenses |
|
873 |
|
|
1,600 |
|
|
|
25 |
|
|
1,374 |
|
|
Tax
expenses under amnesty program |
|
628 |
|
|
- |
|
|
|
628 |
|
|
- |
|
|
Depreciation and amortization |
|
|
6,304 |
|
|
6,525 |
|
|
|
3,139 |
|
|
3,224 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
$ |
10,116 |
|
$ |
3,124 |
|
|
$ |
5,881 |
|
$ |
2,361 |
|
|
|
GILAT SATELLITE NETWORKS LTD. |
|
|
CONDENSED CONSOLIDATED BALANCE SHEET |
|
|
U.S. dollars in thousands |
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
Unaudited |
|
Audited |
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
78,831 |
|
|
$ |
40,133 |
|
|
|
Restricted cash |
|
|
24,379 |
|
|
|
62,229 |
|
|
|
Restricted cash held by trustees |
|
|
6,110 |
|
|
|
9,058 |
|
|
|
Trade
receivables, net |
|
|
84,219 |
|
|
|
89,377 |
|
|
|
Inventories |
|
|
24,471 |
|
|
|
21,469 |
|
|
|
Other
current assets |
|
|
24,371 |
|
|
|
17,017 |
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
242,381 |
|
|
|
239,283 |
|
|
|
|
|
|
|
|
|
|
LONG-TERM
INVESTMENTS: |
|
|
|
|
|
|
Severance
pay funds |
|
|
8,346 |
|
|
|
7,791 |
|
|
|
Other
long term receivables |
|
|
394 |
|
|
|
436 |
|
|
|
|
|
|
|
|
|
|
Total long-term investments and receivables |
|
|
8,740 |
|
|
|
8,227 |
|
|
|
|
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET |
|
|
80,048 |
|
|
|
80,837 |
|
|
|
|
|
|
|
|
|
|
INTANGIBLE
ASSETS, NET |
|
|
8,497 |
|
|
|
11,383 |
|
|
|
|
|
|
|
|
|
|
GOODWILL |
|
|
43,468 |
|
|
|
43,468 |
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS |
|
$ |
383,134 |
|
|
$ |
383,198 |
|
|
|
|
|
|
|
|
|
|
|
|
|
GILAT SATELLITE NETWORKS LTD. |
|
|
CONDENSED CONSOLIDATED BALANCE SHEET |
|
|
U.S. dollars in thousands |
|
|
|
|
June 30, |
|
December 31, |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
Unaudited |
|
Audited |
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
Current
maturities of long-term loans |
|
|
4,496 |
|
|
|
4,617 |
|
|
|
Trade
payables |
|
|
30,197 |
|
|
|
29,625 |
|
|
|
Accrued
expenses |
|
|
64,648 |
|
|
|
53,429 |
|
|
|
Advances
from customers and deferred revenues |
|
|
29,294 |
|
|
|
37,659 |
|
|
|
Advances
from customers, held by trustees |
|
|
4,188 |
|
|
|
7,498 |
|
|
|
Other
current liabilities |
|
|
16,228 |
|
|
|
13,846 |
|
|
|
|
|
|
|
|
|
|
Total current
liabilities |
|
|
149,051 |
|
|
|
146,674 |
|
|
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES: |
|
|
|
|
|
|
Accrued
severance pay |
|
|
8,146 |
|
|
|
7,485 |
|
|
|
Long-term
loans, net of current maturities |
|
|
12,782 |
|
|
|
16,932 |
|
|
|
Other
long-term liabilities |
|
|
494 |
|
|
|
2,281 |
|
|
|
|
|
|
|
|
|
|
Total long-term
liabilities |
|
|
21,422 |
|
|
|
26,698 |
|
|
|
|
|
|
|
|
|
|
EQUITY: |
|
|
|
|
|
|
Share
capital - ordinary shares of NIS 0.2 par value |
|
|
2,598 |
|
|
|
2,593 |
|
|
|
Additional paid-in capital |
|
|
921,123 |
|
|
|
920,162 |
|
|
|
Accumulated other comprehensive loss |
|
|
(2,648 |
) |
|
|
(3,224 |
) |
|
|
Accumulated deficit |
|
|
(708,412 |
) |
|
|
(709,705 |
) |
|
|
|
|
|
|
|
|
|
Total equity |
|
|
212,661 |
|
|
|
209,826 |
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
383,134 |
|
|
$ |
383,198 |
|
|
|
|
|
|
|
|
|
GILAT SATELLITE NETWORKS LTD. |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
U.S. dollars in thousands |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended |
|
Three months ended |
|
|
|
|
June
30, |
|
June
30, |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
Unaudited |
|
Unaudited |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
1,348 |
|
|
$ |
(7,676 |
) |
|
$ |
2,132 |
|
|
$ |
(3,650 |
) |
|
Adjustments required to reconcile net income
(loss) |
|
|
|
|
|
|
|
|
|
to net cash provided by (used
in) operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
6,304 |
|
|
|
6,525 |
|
|
|
3,139 |
|
|
|
3,224 |
|
|
Stock-based
compensation of options and RSU's |
|
|
418 |
|
|
|
503 |
|
|
|
214 |
|
|
|
302 |
|
|
Accrued
severance pay, net |
|
|
106 |
|
|
|
(97 |
) |
|
|
167 |
|
|
|
26 |
|
|
Accrued
interest and exchange rate differences on short and long-term
restricted cash, net |
|
|
10 |
|
|
|
(1,560 |
) |
|
|
151 |
|
|
|
(1,151 |
) |
|
Exchange
rate differences on long-term loans |
|
|
113 |
|
|
|
48 |
|
|
|
88 |
|
|
|
(42 |
) |
|
Deferred
income taxes, net |
|
|
(159 |
) |
|
|
- |
|
|
|
(143 |
) |
|
|
- |
|
|
Decrease in
trade receivables, net |
|
|
5,048 |
|
|
|
3,994 |
|
|
|
12,003 |
|
|
|
5,388 |
|
|
Decrease
(increase) in other assets (including short-term, long-term and
deferred charges) |
|
|
(6,519 |
) |
|
|
(1,072 |
) |
|
|
(3,265 |
) |
|
|
1,082 |
|
|
Decrease
(increase) in inventories |
|
|
(3,558 |
) |
|
|
(2,459 |
) |
|
|
(246 |
) |
|
|
226 |
|
|
Decrease in
restricted cash directly related to operating activities, net |
|
|
37,979 |
|
|
|
21,574 |
|
|
|
100 |
|
|
|
15,270 |
|
|
Increase
(decrease) in trade payables |
|
|
537 |
|
|
|
3,192 |
|
|
|
929 |
|
|
|
(897 |
) |
|
Increase in
accrued expenses |
|
|
11,418 |
|
|
|
14,483 |
|
|
|
3,925 |
|
|
|
7,075 |
|
|
Decrease in
advances from customers |
|
|
(5,710 |
) |
|
|
(36,285 |
) |
|
|
(2,612 |
) |
|
|
(24,462 |
) |
|
Increase
(decrease) in advances from customers, held by trustees |
|
|
(3,342 |
) |
|
|
(2,012 |
) |
|
|
1,070 |
|
|
|
2,051 |
|
|
Increase
(decrease) in other current liabilities and other long term
liabilities |
|
|
(1,904 |
) |
|
|
697 |
|
|
|
434 |
|
|
|
(524 |
) |
|
Net
cash provided by (used in) operating activities |
|
|
42,089 |
|
|
|
(145 |
) |
|
|
18,086 |
|
|
|
3,918 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
Purchase of
property and equipment |
|
|
(2,173 |
) |
|
|
(2,032 |
) |
|
|
(961 |
) |
|
|
(928 |
) |
|
Investment
in restricted cash held by trustees |
|
|
(5,309 |
) |
|
|
(5,428 |
) |
|
|
(5,309 |
) |
|
|
(5,428 |
) |
|
Proceeds
from restricted cash held by trustees |
|
|
8,000 |
|
|
|
8,158 |
|
|
|
2,644 |
|
|
|
4,483 |
|
|
Investment
in restricted cash (including long-term) |
|
|
(646 |
) |
|
|
(186 |
) |
|
|
(621 |
) |
|
|
(7 |
) |
|
Proceeds
from restricted cash (including long-term) |
|
|
667 |
|
|
|
7,426 |
|
|
|
- |
|
|
|
79 |
|
|
Net
cash provided by (used in) investing activities |
|
|
539 |
|
|
|
7,938 |
|
|
|
(4,247 |
) |
|
|
(1,801 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
Capital
lease payments |
|
|
- |
|
|
|
(307 |
) |
|
|
- |
|
|
|
(256 |
) |
|
Issuance of
shares in a rights offering |
|
|
- |
|
|
|
35,095 |
|
|
|
- |
|
|
|
19,852 |
|
|
Issuance of
restricted stock units and exercise of stock options |
|
|
493 |
|
|
|
346 |
|
|
|
227 |
|
|
|
10 |
|
|
Short term
bank credit, net |
|
|
- |
|
|
|
(7,000 |
) |
|
|
- |
|
|
|
(4,250 |
) |
|
Repayment
of long-term loans |
|
|
(4,383 |
) |
|
|
(4,277 |
) |
|
|
(142 |
) |
|
|
(138 |
) |
|
Net
cash provided by (used in) financing activities |
|
|
(3,890 |
) |
|
|
23,857 |
|
|
|
85 |
|
|
|
15,218 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash
equivalents |
|
|
(40 |
) |
|
|
675 |
|
|
|
(169 |
) |
|
|
265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in cash and cash equivalents |
|
|
38,698 |
|
|
|
32,325 |
|
|
|
13,755 |
|
|
|
17,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the beginning of the
period |
|
|
40,133 |
|
|
|
18,435 |
|
|
|
65,076 |
|
|
|
33,160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the end of the
period |
|
$ |
78,831 |
|
|
$ |
50,760 |
|
|
$ |
78,831 |
|
|
$ |
50,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact:
Gilat Satellite Networks
Doreet Oren
DoreetO@gilat.com
Comm-Partners LLC
June Filingeri, President
203-972-0186
junefil@optonline.net
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