Gilat Satellite Networks Ltd.
(Registrant)
|
|||
Dated May 14, 2019
|
By: |
/s/ Yael Shofar
|
|
Yael Shofar
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|||
General Counsel
|
· |
Revenues for Q1 2019 totaled $62.1 million compared with $67.4 million for Q1 2018.
|
· |
Continued strong profitability:
|
o |
Q1 2019 GAAP operating income increased 21.7% to $4.5 million from $3.7 million in Q1 2018. Q1 2019 Non-GAAP operating income rose to $5.6 million, or by 9.5% from Q1 2018.
|
o |
Q1 2019 GAAP net income increased 22.2% to $2.8 million, or $0.05 per diluted share, compared with $2.3 million, or $0.04 per diluted share in Q1 2018. Q1 2019 non-GAAP net income increased 5.4% to $4.0 million, or $0.07 per diluted share, compared with $3.8 million, or $0.07 per diluted share, in Q1 2018.
|
o |
Q1 2019 Adjusted EBITDA increased 9.0% year over year to $8.2 million, or 13.2 % of revenues.
|
· |
Reiterated 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.
|
· |
Honeywell Selects Gilat’s Aero Modem for its JetWave Satellite Communication Solution
|
· |
Gilat Announces First Ever Successful Demonstration of 5G Connectivity over a LEO Satellite, Powered by Gilat using Telesat’s Phase 1 LEO
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· |
Gilat is World Leader in Shipments of Cellular Backhaul over Satellite According to NSR
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· |
TIM Brasil Selects Gilat’s Satellite Backhaul to Enable 4G Services for the Agriculture IoT Business
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· |
Gilat Declares a $25 Million Cash Dividend
|
Date:
|
Tuesday, May 14, 2019
|
Start:
|
09:30 AM EDT / 16:30 IDT
|
Dial-in:
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US: 1-888-407-2553
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International: (972) 3-918-0610
|
Start:
|
May 14, 2019 at 12:00 PM EDT / 19:00 IDT
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End:
|
May 17, 2019 at 12:00 PM EDT / 19:00 IDT
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Dial-in:
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US: 1-888-326-9310
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International: (972) 3-925-5900
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GILAT SATELLITE NETWORKS LTD.
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|||||||
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|||||||
U.S. dollars in thousands (except share and per share data)
|
Three months ended
March, 31
|
||||||||
2019
|
2018
|
|||||||
Unaudited
|
||||||||
Revenues
|
$
|
62,109
|
$
|
67,374
|
||||
Cost of revenues
|
38,539
|
45,987
|
||||||
Gross profit
|
23,570
|
21,387
|
||||||
Research and development expenses
|
8,857
|
8,446
|
||||||
Less - grants
|
555
|
467
|
||||||
Research and development expenses, net
|
8,302
|
7,979
|
||||||
Selling and marketing expenses
|
5,871
|
5,413
|
||||||
General and administrative expenses
|
4,942
|
4,335
|
||||||
Total operating expenses
|
19,115
|
17,727
|
||||||
Operating income
|
4,455
|
3,660
|
||||||
Financial expenses, net
|
(821
|
)
|
(583
|
)
|
||||
Income before taxes on income
|
3,634
|
3,077
|
||||||
Taxes on income
|
810
|
766
|
||||||
Net income
|
$
|
2,824
|
$
|
2,311
|
||||
Basic and Diluted earnings per share
|
$
|
0.05
|
$
|
0.04
|
||||
Weighted average number of shares used in
|
||||||||
computing earnings per share
|
||||||||
Basic
|
55,197,588
|
54,765,456
|
||||||
Diluted
|
55,959,504
|
55,590,362
|
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
|
|||||||||||||||||||||||
March 31, 2019
|
March 31, 2018
|
|||||||||||||||||||||||
GAAP
|
Adjustments (1)
|
Non-GAAP
|
GAAP
|
Adjustments (1)
|
Non-GAAP
|
|||||||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||||||||||
Gross profit
|
$
|
23,570
|
326
|
$
|
23,896
|
$
|
21,387
|
1,200
|
$
|
22,587
|
||||||||||||||
Operating expenses
|
19,115
|
(829
|
)
|
18,286
|
17,727
|
(263
|
)
|
17,464
|
||||||||||||||||
Operating income
|
4,455
|
1,155
|
5,610
|
3,660
|
1,463
|
5,123
|
||||||||||||||||||
Income before taxes on income
|
3,634
|
1,155
|
4,789
|
3,077
|
1,463
|
4,540
|
||||||||||||||||||
Net income
|
2,824
|
1,155
|
3,979
|
2,311
|
1,463
|
3,774
|
||||||||||||||||||
Earnings per share (basic and diluted)
|
$
|
0.05
|
$
|
0.02
|
$
|
0.07
|
$
|
0.04
|
$
|
0.03
|
$
|
0.07
|
||||||||||||
Weighted average number of shares used in
|
||||||||||||||||||||||||
computing earnings per share
|
||||||||||||||||||||||||
Basic
|
55,197,588
|
55,197,588
|
54,765,456
|
54,765,456
|
||||||||||||||||||||
Diluted
|
55,959,504
|
56,142,723
|
55,590,362
|
55,816,038
|
||||||||||||||||||||
(1) Adjustments reflect the effect of non-cash stock-based compensation as per ASC 718 and amortization of intangible assets related to shares acquisition transactions.
|
||||||||||||||||||||||||
Three months ended
|
Three months ended
|
|||||||||||||||||||||||
March 31, 2019
|
March 31, 2018
|
|||||||||||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||||||||||
GAAP net income
|
$
|
2,824
|
$
|
2,311
|
||||||||||||||||||||
Gross profit
|
||||||||||||||||||||||||
Non-cash stock-based compensation expenses
|
94
|
6
|
||||||||||||||||||||||
Amortization of intangible assets related to acquisition transactions | 232 |
1,194
|
||||||||||||||||||||||
326
|
1,200
|
|||||||||||||||||||||||
Operating expenses
|
||||||||||||||||||||||||
Non-cash stock-based compensation expenses
|
777
|
212
|
||||||||||||||||||||||
Amortization of intangible assets related to acquisition transactions
|
52
|
51
|
||||||||||||||||||||||
Non-GAAP net income
|
$
|
3,979
|
$
|
3,774
|
GILAT SATELLITE NETWORKS LTD.
|
|||||||
SUPPLEMENTAL INFORMATION
|
|||||||
U.S. dollars in thousands
|
Three months ended
March 31,
|
||||||||
2019
|
2018
|
|||||||
Unaudited
|
||||||||
GAAP operating income
|
$
|
4,455
|
$
|
3,660
|
||||
Add:
|
||||||||
Non-cash stock-based compensation expenses
|
871
|
218
|
||||||
Depreciation and amortization (*)
|
2,877
|
3,650
|
||||||
Adjusted EBITDA
|
$
|
8,203
|
$
|
7,528
|
(*) includng amortization of lease incentive
|
||||||||||
SEGMENT REVENUE:
|
Three months ended
March 31,
|
||||||||
2019
|
2018
|
|||||||
Unaudited
|
||||||||
Fixed Networks
|
$
|
36,428
|
$
|
37,614
|
||||
Mobility Solutions
|
20,912
|
20,758
|
||||||
Terrestrial Infrastructure Projects
|
4,769
|
9,002
|
||||||
Total revenue
|
$
|
62,109
|
$
|
67,374
|
GILAT SATELLITE NETWORKS LTD.
|
||||
CONSOLIDATED BALANCE SHEET
|
||||
U.S. dollars in thousands
|
March 31,
|
December 31,
|
|||||||
2019
|
2018
|
|||||||
Unaudited
|
Audited
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
69,109
|
$
|
67,381
|
||||
Restricted cash
|
32,428
|
32,305
|
||||||
Restricted cash held by trustees
|
2,649
|
4,372
|
||||||
Trade receivables, net
|
40,049
|
47,164
|
||||||
Contract assets
|
47,504
|
47,760
|
||||||
Inventories
|
24,379
|
21,109
|
||||||
Other current assets
|
26,912
|
26,022
|
||||||
Total current assets
|
243,030
|
246,113
|
||||||
LONG-TERM INVESTMENTS AND RECEIVABLES:
|
||||||||
Long-term restricted cash
|
149
|
146
|
||||||
Severance pay funds
|
6,607
|
6,780
|
||||||
Long term deferred tax assets
|
3,445
|
4,127
|
||||||
Operating lease right-of-use assets
|
4,983
|
-
|
||||||
Other long term receivables
|
8,264
|
7,276
|
||||||
Total long-term investments and receivables
|
23,448
|
18,329
|
||||||
PROPERTY AND EQUIPMENT, NET
|
83,210
|
84,403
|
||||||
INTANGIBLE ASSETS, NET
|
2,095
|
2,434
|
||||||
GOODWILL
|
43,468
|
43,468
|
||||||
TOTAL ASSETS
|
$
|
395,251
|
$
|
394,747
|
GILAT SATELLITE NETWORKS LTD.
|
||||||||
CONSOLIDATED BALANCE SHEET (Cont.)
|
||||||||
U.S. dollars in thousands
|
||||||||
March 31,
|
December 31,
|
|||||||
2019
|
2018
|
|||||||
Unaudited
|
Audited
|
|||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Current maturities of long-term loans
|
$
|
4,433
|
$
|
4,458
|
||||
Trade payables
|
23,726
|
24,636
|
||||||
Accrued expenses
|
64,369
|
67,533
|
||||||
Advances from customers and deferred revenues
|
26,335
|
29,133
|
||||||
Operating lease right-of-use liabilities
|
1,727
|
-
|
||||||
Dividend payable
|
24,862
|
-
|
||||||
Other current liabilities
|
15,606
|
14,588
|
||||||
Total current liabilities
|
161,058
|
140,348
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Accrued severance pay
|
6,761
|
6,649
|
||||||
Long-term loans, net of current maturities
|
4,000
|
8,098
|
||||||
Operating lease right-of-use liabilities
|
3,277
|
-
|
||||||
Other long-term liabilities
|
580
|
580
|
||||||
Total long-term liabilities
|
14,618
|
15,327
|
||||||
SHAREHOLDERS' EQUITY:
|
||||||||
Share capital - ordinary shares of NIS 0.2 par value
|
2,629
|
2,625
|
||||||
Additional paid-in capital
|
926,061
|
924,856
|
||||||
Accumulated other comprehensive loss
|
(4,047
|
)
|
(5,380
|
)
|
||||
Accumulated deficit
|
(705,068
|
)
|
(683,029
|
)
|
||||
Total shareholders' equity
|
219,575
|
239,072
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
395,251
|
$
|
394,747
|
GILAT SATELLITE NETWORKS LTD.
|
||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||
U.S. dollars in thousands
|
Three months ended
March 31,
|
||||||||
2019
|
2018
|
|||||||
Unaudited
|
||||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
2,824
|
$
|
2,311
|
||||
Adjustments required to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
2,822
|
3,650
|
||||||
Stock-based compensation of options
|
871
|
218
|
||||||
Accrued severance pay, net
|
285
|
88
|
||||||
Exchange rate differences on long-term loans
|
-
|
30
|
||||||
Deferred income taxes, net
|
683
|
12
|
||||||
Decrease in trade receivables, net
|
7,831
|
18,417
|
||||||
Decrease (increase) in contract assets
|
(430
|
)
|
17,092
|
|||||
Decrease (increase) in other assets (including short-term, long-term and deferred charges)
|
(79
|
)
|
714
|
|||||
Increase in inventories
|
(3,659
|
)
|
(1,445
|
)
|
||||
Decrease in trade payables
|
(922
|
)
|
(8,272
|
)
|
||||
Decrease in accrued expenses
|
(2,169
|
)
|
(2,007
|
)
|
||||
Decrease in advance from customers
|
(3,087
|
)
|
(4,902
|
)
|
||||
Decrease in advances from customers, held by trustees
|
-
|
(1,478
|
)
|
|||||
Increase in other current liabilities and other long term liabilities
|
863
|
1,564
|
||||||
Net cash provided by operating activities
|
5,833
|
25,992
|
||||||
Cash flows from investing activities:
|
||||||||
Purchase of property and equipment
|
(2,014
|
)
|
(2,861
|
)
|
||||
Net cash used in investing activities
|
(2,014
|
)
|
(2,861
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Exercise of stock options
|
338
|
306
|
||||||
Repayment of long-term loans
|
(4,123
|
)
|
(4,000
|
)
|
||||
Net cash used in financing activities
|
(3,785
|
)
|
(3,694
|
)
|
||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
97
|
296
|
||||||
Increase in cash, cash equivalents and restricted cash
|
131
|
19,733
|
||||||
Cash, cash equivalents and restricted cash at the beginning of the period
|
104,204
|
86,757
|
||||||
Cash, cash equivalents and restricted cash at the end of the period
|
$
|
104,335
|
$
|
106,490
|
||||
Supplementary disclosure of cash flows activities:
|
||||||||
Non-cash transactions:
|
||||||||
Declaration of cash dividend not yet distributed
|
$
|
24,862
|
$
|
-
|