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, Feb. 12, 2025 (GLOBE NEWSWIRE) -- 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 Revenue of $78.1 million, up 3% compared with $75.6 million in Q4 2023;GAAP operating income of $12.8 million, compared with $2.9 million in Q4 2023;Non-GAAP operating income of $9.7 million, compared with $6.1 million in Q4 2023;GAAP net income of $11.8 million, or $0.21 per diluted share, compared with $3.4 million, or $0.06 per diluted share, in Q4 2023;Non-GAAP net income of $8.5 million, or $0.15 per diluted share, compared with $6.5 million, or $0.11 per diluted share, in Q4 2023;Adjusted EBITDA of $12.1 million, up 30% compared with $9.4 million in Q4 2023. Full year 2024 Financial Highlights Revenue of $305.4 million, up 15% compared with $266.1 million in 2023;GAAP operating income of $27.7 million, compared with $28.1 million in 2023;Non-GAAP operating income of $31.9 million, up 35% compared with $23.5 million in 2023;GAAP net income of $24.8 million, or $0.44 per diluted share, compared with $23.5 million, or $0.41 per diluted share in 2023;Non-GAAP net income of $28.2 million, or $0.49 per diluted share, compared with $19.9 million, or $0.35 per diluted share 2023;Adjusted EBITDA was $42.2 million, up 16% compared with adjusted EBITDA of $36.4 million in 2023. 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.” Mr. Sfadia concluded, “Looking ahead into 2025, given the significant potential we see in the defense market and our view of this as a strategic growth engine, we plan to increase our investment in R&D, Sales and Marketing of the Defense Segment. We believe that this targeted increase will allow us to take advantage of the opportunities we see quicker and more decisively to ensure a long term growth in this market. Coupled with our recent acquisitions and positioning in the Satcom market, Gilat has the resource base to scale the IFC and Defense businesses and our track record of profitable, cash generating growth, provides a strong foundation for Gilat’s continued success." 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 Defense Division: provides secure, rapid-deployment solutions for military organizations, government agencies, and defense integrators, with a strong focus on the U.S. Department of Defense resulting from our strategic acquisition of DataPath Inc. By integrating technologies from Gilat, Gilat DataPath, and Gilat Wavestream, the division delivers resilient battlefield connectivity with multiple layers of communication redundancy for high availability.Gilat Commercial Division: provides advanced broadband satellite communication networks for IFC, Enterprise and Cellular Backhaul, supporting HTS, VHTS, and NGSO constellations with turnkey solutions for service providers, satellite operators, and enterprises. Our acquisition of Stellar Blu serves as the cornerstone of this division, strengthening our position in the IFC market and enabling us to provide cutting-edge connectivity solutions that meet the demands of passengers, airlines, and service providers worldwide. Gilat Peru Division: specializes in end-to-end telco solutions, including the operation and implementation of large-scale network projects. With expertise in terrestrial fiber optic, wireless, and satellite networks, Gilat Peru provides technology integration, managed networks and services, connectivity solutions, and reliable internet and voice access across the region. 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 Gilat Secures Over $18 Million Orders Addressing Demand for In-Flight Connectivity SolutionsGilat Receives $9 Million in Orders for Multi-Orbit SkyEdge PlatformsGilat Completes Acquisition of Stellar Blu Solutions LLCGilat and Hispasat Provided Immediate Satellite Communication to Support Disaster Recovery Efforts After Hurricane HeleneGilat Receives Over $3 Million in Orders to Support LEO ConstellationsGilat Awarded Over $5 Million in orders to Support Critical Connectivity for Defense ForcesGilat Receives $4M in Orders for Advanced Portable Terminals from Global Defense Customers 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, 2025Start:09:30 AM EST / 16:30 ISTDial-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 Officerhagayk@gilat.com Alliance Advisors: GilatIR@allianceadvisors.com Phone: +1 212 838 3777 _________________1 We do not provide forward-looking guidance on a GAAP basis because we are unable to reasonably provide forward-looking guidance for certain financial data, such as amortization of purchased intangibles and earnout-based expenses related to recent acquisitions. As a result, we are not able to provide a reconciliation of GAAP to non-GAAP financial measures for forward-looking data without unreasonable effort. GILAT SATELLITE NETWORKS LTD.CONSOLIDATED STATEMENTS OF INCOME U.S. dollars in thousands (except share and per share data) Twelve months ended Three months ended December 31, December 31, 2024 2023 2024 2023 Unaudited Audited Unaudited Revenues $305,448 $266,090 $78,128 $75,612 Cost of revenues 192,117 161,145 47,107 46,692 Gross profit 113,331 104,945 31,021 28,920 Research and development expenses, net 38,136 41,173 10,108 11,624 Selling and marketing expenses 27,381 25,243 6,657 7,119 General and administrative expenses 26,868 19,215 6,192 6,312 Other operating expenses (income), net (6,751) (8,771) (4,706) 986 Total operating expenses 85,634 76,860 18,251 26,041 Operating income 27,697 28,085 12,770 2,879 Financial income, net 1,504 109 63 1,196 Income before taxes on income 29,201 28,194 12,833 4,075 Taxes on income (4,352) (4,690) (1,069) (628) Net income $24,849 $23,504 $11,764 $3,447 Earnings per share (basic and diluted) $0.44 $0.41 $0.21 $0.06 Weighted average number of shares used in computing earnings per share Basic 57,016,920 56,668,999 57,017,032 56,820,774 Diluted 57,016,920 56,672,537 57,017,032 56,820,774 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 $29,537Operating expenses 18,251 3,680 21,931 26,041 (2,615) 23,426Operating income 12,770 (3,105) 9,665 2,879 3,232 6,111Income before taxes on income 12,833 (3,105) 9,728 4,075 3,232 7,307Net 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 56,820,774Diluted 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 $105,840Operating expenses 85,634 (500) 85,134 76,860 5,434 82,294Operating income 27,697 4,173 31,870 28,085 (4,539) 23,546Income before taxes on income 29,201 4,173 33,374 28,194 (4,539) 23,655Net 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 56,668,999Diluted 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 INFORMATIONU.S. dollars in thousands ADJUSTED EBITDA: Twelve months ended Three months ended December 31, 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: Twelve months ended Three months ended December 31, December 31, 2024 2023 2024 2023 Unaudited Audited Unaudited Satellite Networks $198,174 $168,527 $49,064 $53,517 Integrated Solutions 54,925 46,133 17,257 9,503 Network Infrastructure and Services 52,349 51,430 11,807 12,592 Total revenues $305,448 $266,090 $78,128 $75,612 GILAT SATELLITE NETWORKS LTD.CONSOLIDATED BALANCE SHEETSU.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 FLOWSU.S. dollars in thousands Twelve months ended Three months ended December 31, December 31, 2024 2023 2024 2023 Unaudited Audited UnauditedCash 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.

Gilat Reports Fourth Quarter and Full Year 2024 Results

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