SEC Form 6-K filed by Gilat Satellite Networks Ltd.

 

Gilat Reports Fourth Quarter and Full Year 2024 Results

 

Q4 Revenue of $78.1 million, GAAP Operating Income of $12.8

million and Adjusted EBITDA of $12.1 million

 

2024 Revenue of $305.4 million, GAAP Operating Income of $27.7

million and a 25-year Record Adjusted EBITDA of $42.2 million

 

Expects 2025 Revenues to increase by 36%-50%

 

Announces New Reporting Segments

 

Petah Tikva, Israel, February 12, 2025 — Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT), a worldwide leader in satellite networking technology, solutions and services, today reported its unaudited results for the fourth quarter and full year ended December 31, 2024.

 

Fourth Quarter 2024 Financial Highlights

 

 

 

 

 

 

•	Adjusted EBITDA of $12.1 million, up 30% compared with $9.4 million in Q4 2023.

Full year 2024 Financial Highlights

 

 

 

 

 

 

 

2025 Guidance

 

Management’s financial guidance for 2025 is for revenues of between $415 to $455 million, and Adjusted EBITDA is expected to be between $47 to $53 million¹.

 

Adi Sfadia, Gilat’s CEO, commented, "Gilat delivered strong results with profitability of Adjusted EBITDA of $12.1 million for the fourth quarter and $42.2 million for the entire year. These results alongside our strong generation of cash flow underscore the strength and resilience of our core business model, demonstrating both operating leverage and the positive impact of our current product revenue mix.”

 

“During the fourth quarter our Defense and In-Flight Connectivity business continued to experience strong momentum with increased orders and awards. The Defense segment, with a focus on the US DoD, represents a significant growth opportunity for Gilat. We are pleased with our progress in expanding opportunities to serve the specialized needs of government and military customers with our innovative satellite solutions.” Mr. Sfadia continued. “With the closing of the Stellar Blu acquisition, our Commercial business is poised for significant growth as we establish our leadership in the expanding Electronically Steerable Antenna (ESA) market. Our portfolio of IFC GEO, LEO and multi-orbit solutions will be instrumental in capitalizing on increasing demand for inflight connectivity by airlines and passengers.”

 

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Commencing January 1, 2025, the company has implemented a new organizational structure and reportable segments. The new organizational structure and segment reporting are designed to better target the diverse and attractive end markets the company serves and to provide investors with greater insight into Gilat’s business lines and strategic growth opportunities. The company will report financial results based on the following three divisions: Gilat Defense, Gilat Commercial and Gilat Peru.

 

 

 

 

Gilat has prepared unaudited illustrations of the company’s financial reports for Fiscal Years 2023 and 2024 to reflect the company’s results based on the new segment reporting, which can be found in the IR section on Gilat’s website. For additional information about Gilat’s new divisional structure, please click here: Link

 

Key Recent Announcements

 

 

 

 

 

 

 

 

Conference Call Details

 

Gilat’s Management will discuss its fourth quarter and full year 2024 results and business achievements and participate in a question-and-answer session:

 

Date:	Wednesday, February 12, 2025
Start:	09:30 AM EST / 16:30 IST
Dial-in:	US: 1-888-407-2553
	International: +972-3-918-0609

A simultaneous webcast of the conference call will be available on the Gilat website at gilat.com and through this link: https://veidan.activetrail.biz/gilatq4-2024

 

The webcast will also be archived for a period of 30 days on the Company’s website and through the link above.

 

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 gross profit, operating expenses, operating income, income before taxes on income, net 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 with a more complete understanding of the Company’s underlying operational results, trends, and performance. Non-GAAP financial measures mainly exclude, if and when applicable, the effect of stock-based compensation expenses, amortization of purchased intangibles, lease incentive amortization, other non-recurring expenses, other integration expenses, other operating expenses (income), net, and income tax effect on the relevant adjustments.

 

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 net income and adjusted EBITDA is presented in the attached summary financial statements.

 

Non-GAAP presentations of gross profit, operating expenses, operating income, income before taxes on income, net 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 over 35 years of experience, we develop and deliver deep technology solutions for satellite, ground, and new space connectivity, offering next-generation solutions and services for critical connectivity across commercial and defense applications.  We believe in the right of all people to be connected and are united in our resolution to provide communication solutions to all reaches of the world.

 

Together with our wholly-owned subsidiaries—Gilat Wavestream, Gilat DataPath, and Gilat Stellar Blu—we offer integrated, high-value solutions supporting multi-orbit constellations, Very High Throughput Satellites (VHTS), and Software-Defined Satellites (SDS) via our Commercial and Defense Divisions. Our comprehensive portfolio is comprised of a cloud-based platform and modems; high-performance satellite terminals; advanced Satellite On-the-Move (SOTM) antennas and ESAs; highly efficient, high-power Solid State Power Amplifiers (SSPA) and Block Upconverters (BUC) and includes integrated ground systems for commercial and defense markets, field services, network management software, and cybersecurity services.

 

Gilat’s products and tailored solutions support multiple applications including government and defense, IFC and mobility, broadband access, cellular backhaul, enterprise, aerospace, broadcast, and critical infrastructure clients all while meeting the most stringent service level requirements. For more information, please visit: http://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, including those related to the terrorist attacks by Hamas, and the hostilities between Israel and Hamas and Israel and Hezbollah. 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. We undertake no obligation to update or revise any forward-looking statements for any reason.

 

Contact:

Gilat Satellite Networks

Hagay Katz, Chief Product and Marketing Officer

 

Alliance Advisors:

[email protected]
Phone: +1 212 838 3777

 

 

GILAT SATELLITE NETWORKS LTD.

RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED STATEMENTS OF INCOME

FOR COMPARATIVE PURPOSES

U.S. dollars in thousands (except share and per share data)

		Three months ended												Three months ended
		December 31, 2024												December 31, 2023
		GAAP				Adjustments (*)				Non-GAAP				GAAP				Adjustments (*)				Non-GAAP
		Unaudited												Unaudited
Gross profit		$	31,021			$	575			$	31,596			$	28,920			$	617			$	29,537
Operating expenses			18,251				3,680				21,931				26,041				(2,615	)			23,426
Operating income			12,770				(3,105	)			9,665				2,879				3,232				6,111
Income before taxes on income			12,833				(3,105	)			9,728				4,075				3,232				7,307
Net income		$	11,764			$	(3,252	)		$	8,512			$	3,447			$	3,097			$	6,544
Basic earnings per share		$	0.21			$	(0.06	)		$	0.15			$	0.06			$	0.06			$	0.12
Diluted earnings per share		$	0.21			$	(0.06	)		$	0.15			$	0.06			$	0.05			$	0.11
Weighted average number of shares used in
computing earnings per share
Basic			57,017,032								57,017,032				56,820,774								56,820,774
Diluted			57,017,032								57,024,316				56,820,774								56,987,939

(*) Adjustments reflect the effect of stock-based compensation expenses as per ASC 718, amortization of purchased intangibles, other operating income (expenses), net, other integration expenses and income tax effect on such adjustments which is calculated using the relevant effective tax rate.

		Three months ended				Three months ended
		December 31, 2024				December 31, 2023
		Unaudited				Unaudited
GAAP net income		$	11,764			$	3,447
Gross profit
Stock-based compensation expenses			133				129
Amortization of purchased intangibles			389				448
Other integration expenses			53				40
			575				617
Operating expenses
Stock-based compensation expenses			653				796
Stock-based compensation expenses related to business combination			140				662
Amortization of purchased intangibles			216				162
Other operating income (expenses), net and other integration expenses			(4,689	)			995
			(3,680	)			2,615
Taxes on income			(147	)			(135	)
Non-GAAP net income		$	8,512			$	6,544

GILAT SATELLITE NETWORKS LTD.

RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED STATEMENTS OF INCOME

FOR COMPARATIVE PURPOSES

U.S. dollars in thousands (except share and per share data)

		Twelve months ended												Twelve months ended
		December 31, 2024												December 31, 2023
		GAAP				Adjustments (*)				Non-GAAP				GAAP				Adjustments (*)				Non-GAAP
		Unaudited												Audited				Unaudited
Gross profit		$	113,331			$	3,673			$	117,004			$	104,945			$	895			$	105,840
Operating expenses			85,634				(500	)			85,134				76,860				5,434				82,294
Operating income			27,697				4,173				31,870				28,085				(4,539	)			23,546
Income before taxes on income			29,201				4,173				33,374				28,194				(4,539	)			23,655
Net income		$	24,849			$	3,376			$	28,225			$	23,504			$	(3,597	)		$	19,907
Basic earnings per share		$	0.44			$	0.06			$	0.50			$	0.41			$	(0.06	)		$	0.35
Diluted earnings per share		$	0.44			$	0.05			$	0.49			$	0.41			$	(0.06	)		$	0.35
Weighted average number of shares used in
computing earnings per share
Basic			57,016,920								57,016,920				56,668,999								56,668,999
Diluted			57,016,920								57,041,778				56,672,537								56,784,601

(*) Adjustments reflect the effect of stock-based compensation expenses as per ASC 718, amortization of purchased intangibles, other operating income, net, other non-recurring expenses, other integration expenses and income tax effect on such adjustments which is calculated using the relevant effective tax rate.

		Twelve months ended				Twelve months ended
		December 31, 2024				December 31, 2023
		Unaudited				Unaudited
GAAP net income		$	24,849			$	23,504
Gross profit
Stock-based compensation expenses			518				407
Amortization of purchased intangibles			2,412				448
Other non-recurring expenses			466				-
Other integration expenses			277				40
			3,673				895
Operating expenses
Stock-based compensation expenses			2,771				2,354
Stock-based compensation expenses related to business combination			3,437				662
Amortization of purchased intangibles			988				312
Other operating income, net and other integration expenses			(6,696	)			(8,762	)
			500				(5,434	)
Taxes on income			(797	)			942
Non-GAAP net income		$	28,225			$	19,907

GILAT SATELLITE NETWORKS LTD.

SUPPLEMENTAL INFORMATION

U.S. dollars in thousands

ADJUSTED EBITDA:

		Twelve months ended December 31,								Three months ended December 31,
		2024				2023				2024				2023
		Unaudited								Unaudited
GAAP net income		$	24,849			$	23,504			$	11,764			$	3,447
Adjustments:
Financial income, net			(1,504	)			(109	)			(63	)			(1,196	)
Taxes on income			4,352				4,690				1,069				628
Stock-based compensation expenses			3,289				2,761				786				925
Stock-based compensation expenses related to business combination			3,437				662				140				662
Depreciation and amortization (*)			13,777				13,627				3,068				3,862
Other operating expenses (income), net			(6,751	)			(8,771	)			(4,706	)			986
Other non-recurring expenses			466				-				-				-
Other integration expenses			332				49				70				49
Adjusted EBITDA		$	42,247			$	36,413			$	12,128			$	9,363

(*) Including amortization of lease incentive

SEGMENT REVENUES:

GILAT SATELLITE NETWORKS LTD.

CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

		December 31,				December 31,
		2024				2023
		Unaudited				Audited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	119,384			$	103,961
Restricted cash			853				736
Trade receivables, net			53,554				44,725
Contract assets			20,987				28,327
Inventories			38,890				38,525
Other current assets			21,963				24,299
Total current assets			255,631				240,573
LONG-TERM ASSETS:
Restricted cash			12				54
Long-term contract assets			8,146				9,283
Severance pay funds			5,966				5,737
Deferred taxes			11,896				11,484
Operating lease right-of-use assets			6,556				5,105
Other long-term assets			5,288				9,544
Total long-term assets			37,864				41,207
PROPERTY AND EQUIPMENT, NET			70,834				74,315
INTANGIBLE ASSETS, NET			12,925				16,051
GOODWILL			52,494				54,740
TOTAL ASSETS		$	429,748			$	426,886

GILAT SATELLITE NETWORKS LTD.

CONSOLIDATED BALANCE SHEETS (Cont.)

U.S. dollars in thousands (except share data)

		December 31,				December 31,
		2024				2023
		Unaudited				Audited
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term debt		$	-			$	7,453
Trade payables			17,107				13,873
Accrued expenses			45,368				51,906
Advances from customers and deferred revenues			18,587				34,495
Operating lease liabilities			2,557				2,426
Other current liabilities			17,817				16,431
Total current liabilities			101,436				126,584
LONG-TERM LIABILITIES:
Long-term loan			2,000				2,000
Accrued severance pay			6,677				6,537
Long-term advances from customers and deferred revenues			580				1,139
Operating lease liabilities			4,014				3,022
Other long-term liabilities			10,606				12,916
Total long-term liabilities			23,877				25,614
SHAREHOLDERS' EQUITY:
Share capital - ordinary shares of NIS 0.2 par value			2,733				2,733
Additional paid-in capital			943,294				937,591
Accumulated other comprehensive loss			(6,120	)			(5,315	)
Accumulated deficit			(635,472	)			(660,321	)
Total shareholders' equity			304,435				274,688
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	429,748			$	426,886

GILAT SATELLITE NETWORKS LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

		Twelve months ended December 31,								Three months ended December 31,
		2024				2023				2024				2023
		Unaudited				Audited				Unaudited
Cash flows from operating activities:
Net income		$	24,849			$	23,504			$	11,764			$	3,447
Adjustments required to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			13,554				13,402				3,012				3,805
Capital gain from sale of property			-				(2,084	)			-				-
Stock-based compensation *)			6,726				3,423				926				1,587
Accrued severance pay, net			(89	)			167				(72	)			12
Deferred taxes, net			1,834				2,662				298				(1,203	)
Decrease (increase) in trade receivables, net			(9,347	)			13,448				(2,328	)			9,561
Decrease (increase) in contract assets			8,519				(1,694	)			11,506				(7,804	)
Decrease (increase) in other assets and other adjustments (including short-term, long-term and effect of exchange rate changes on cash and cash equivalents)			11,661				(351	)			8,590				(3,949	)
Decrease (increase) in inventories, net			(1,928	)			(2,387	)			544				3,798
Increase (decrease) in trade payables			3,196				(7,635	)			(1,884	)			(2,314	)
Increase (decrease) in accrued expenses			(5,906	)			735				(8,581	)			3,517
Increase (decrease) in advances from customers and deferred revenues			(16,390	)			803				(4,228	)			(1,843	)
Increase (decrease) in other liabilities			(5,010	)			(12,049	)			(3,265	)			1,343
Net cash provided by operating activities			31,669				31,944				16,282				9,957
Cash flows from investing activities:
Purchase of property and equipment			(6,610	)			(10,746	)			(2,515	)			(2,090	)
Acquisitions of subsidiary, net of cash acquired			-				(4,107	)			-				(4,107	)
Receipts from sale of property			-				2,168				-				-
Net cash used in investing activities			(6,610	)			(12,685	)			(2,515	)			(6,197	)
Cash flows from financing activities:
Repayment of credit facility, net			(7,453	)			(1,590	)			-				(1,590	)
Repayments of short-term debts			(7,836	)			-				(3,793	)			-
Proceeds from short-term debts			7,836				-				1,066				-
Costs associated with entering into a long-term debt			(654	)			-				(654	)			-
Net cash used in financing activities			(8,107	)			(1,590	)			(3,381	)			(1,590	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash			(1,454	)			(63	)			(896	)			2,288
Increase in cash, cash equivalents and restricted cash			15,498				17,606				9,490				4,458
Cash, cash equivalents and restricted cash at the beginning of the period			104,751				87,145				110,759				100,293
Cash, cash equivalents and restricted cash at the end of the period		$	120,249			$	104,751			$	120,249			$	104,751

*) Stock-based compensation including expenses related to business combination in the amounts of $3,437 and $662 for the twelve months ended December 31, 2024 and 2023, respectively.     Stock-based compensation including expenses related to business combination in the amounts of $140 and $662 for the three months ended December 31, 2024 and 2023, respectively.

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