zk1516311.htm


FORM 6 – K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report on Foreign Issuer

Pursuant to Rule 13a – 16 or 15d – 16
of the Securities Exchange Act of 1934
 
For the Month of February, 2015

Gilat Satellite Networks Ltd
(Translation of Registrant’s Name into English)
 
Gilat House, Yegia Kapayim Street
Daniv Park, Kiryat Arye, Petah Tikva, Israel
(Address of Principal Corporate Offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F  x   Form 40-F o

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
 
Yes o   No  x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):   N/A

 
 

 
 
Attached hereto is Registrant’s press release dated February 18, 2015, announcing Gilat’s Fourth Quarter and year end 2014 results.
 
We consent to the incorporation by reference of the GAAP financial information included herein, in the Registration Statements on Form F-3 (registration nos. 333-195680 and 333-174142) and registration statements on form S-8 (registration nos. 333-96630, 333-113932, 333-123410, 333-132649, 333-158476, 333-180552 and 333-187021).
 
Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
Gilat Satellite Networks Ltd.
 
 
(Registrant)
 
 
Dated February 18, 2015
By:
/s/ Yael Shofar  
   
Yael Shofar
 
   
Corporate Secretary
 
 
 
2

 
 
Gilat Reports Significant Improvement in Results for the Fourth
Quarter and Full Year 2014
 
Significant improvement on all major operational parameters
2014 EBITDA grows 43% to $23.4 million
Continued growth in revenue and profitability expected for 2015
 
Petah Tikva, Israel – February 18, 2015 – Gilat Satellite Networks Ltd. (NASDAQ, TASE: GILT), a worldwide leader in satellite networking technology, solutions and services, today reported its results for the fourth quarter and year ended December 31, 2014.
 
Key Financial Updates:
 
·
Revenue for 2014 was $235.1 million compared to $234.9 million in 2013
 
·
EBITDA increased by 43% in 2014 to $23.4 million from $16.3 million in 2013
 
·
Non-GAAP operating income increased by 200% to $13.1 million in 2014, from $4.4 million in 2013
 
·
GAAP operating income was $5.0 million as compared to a loss of $4.1 million in 2013
 
·
Management objectives for 2015: continued growth to revenues between $250 to $260 million and EBITDA between $26 to $28 million
 
Revenues for the fourth quarter of 2014 were $73.1 million, compared to $55.7 million for the same period in 2013. Revenues for the year ended December 31, 2014 were $235.1 million, compared to $234.9 million in the year ended December 31, 2013.
 
On a non-GAAP basis, operating income was $7.5 million in the fourth quarter of 2014 as compared to an operating loss of $0.1 million in the comparable quarter of 2013. Operating income for 2014 on a non-GAAP basis was $13.1 million compared to operating income of $4.4 million in 2013.

On a GAAP basis, operating income was $5.5 million in the fourth quarter of 2014 as compared to an operating loss of $2.7 million in the comparable quarter of 2013. Operating income for 2014 on a GAAP basis was $5 million compared to operating loss of $4.1 million in 2013.
 
On a non-GAAP basis, net income for the quarter was $4.4 million or $0.1 per diluted share compared to net loss of $1.0 million or $0.02 per diluted share in the same quarter of 2013. Net income for 2014 on a non-GAAP basis was $7.4 million or $0.17 per diluted share compared to net loss of $1.1 million or $0.03 per diluted share in 2013.
 
 
3

 
 
On a GAAP basis, net income for the quarter was $2.4 million or $0.06 per diluted share compared to net loss from continuing operations of $3.6 million or $0.09 per diluted share in the same quarter of 2013. Net loss from continuing operations for 2014 on a GAAP basis was $0.7 million or $0.02 per diluted share compared to net loss from continuing operations of $9.6 million or $0.23 per diluted share in 2013.
 
EBITDA for the fourth quarter of 2014 reached $10.4 million compared with $2.5 million in the comparable period in 2013. EBITDA for the twelve months of 2014 reached $23.4 million compared with $16.3 million in the comparable period in 2013.
 
“2014 was a good year for Gilat, with significant improvement in all major operational parameters, most of all: profitability,” said Erez Antebi, CEO of Gilat. “Looking forward, we begin 2015 with a growth focused strategy and a strong product portfolio that enables us to position ourselves successfully in the growing markets, such as HTS, Mobility and Cellular Backhaul. We expect continued improvements in 2015, and our management objectives are to reach revenues between $250 and $260 million and EBIDTA between $26 to $28 million for the year. As in 2014, we expect the second half of 2015 to be significantly stronger than the first half.”
 
Key Recent Announcements:
 
·
Delnet International Corp. taps Gilat to provide cellular backhaul solution for SMART
 
·
Gilat Announces Appointment of Yuval Ronen as Chief Financial Officer
 
·
O3b Certifies Gilat’s meoEdge TDMA/SCPC Terminal
 
·
LATAM Telco Selects Gilat's High-Throughput Satellite Platform
 
·
Delnet Philippines Selects Gilat to Provide Enterprise VSAT Network Solution for PLDT
 
·
Uruguay's OpenSky Orders Gilat VSATs for ANTEL
 
·
Azercosmos and Gilat Sign Partnership Agreement to Offer Managed Services on Azerspace-1
 
·
Gilat Reports SkyEdge II-c Orders for SES’s Astra Connect Service
 
Conference Call and Webcast Details:
Gilat management will host a conference call today at 14:30 GMT / 09:30 EST / 16:30 IST (Israel Standard Time) to discuss the results. International participants are invited to access the call at (972) 3-918-0609, and US-based participants are invited to access the call by dialing (888) 668-9141. A replay of the conference call will be available beginning at approximately 17:00 GMT/ 12:00 EST/ 19:00 IST today, until 17:00 GMT/ 12:00 EST/ 19:00 IST February 20, 2015.  International participants are invited to access the replay at (972) 3-925-5904, and US-based participants are invited to access the replay by dialing (888) 326-9310. A replay of the call may also be accessed as a webcast via Gilat’s website at www.gilat.com and will be archived for 30 days.
 
 
4

 
 
Notes:
 
(1) The attached summary financial statements were prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). The attached summary financial statements are unaudited. To supplement the consolidated financial statements presented in accordance with GAAP, the Company presents Gilat's EBITDA before the impact of non-cash share-based payment charges, depreciation and amortization, other income and other costs related to acquisition transactions. Non-GAAP presentations of net income, operating income, EBITDA and earnings per share are provided to enhance the understanding of the Company's historical financial performance and comparability between periods.
 
(2) Operating income before depreciation, amortization, non-cash stock option expenses as per ASC 718 (formerly SFAS 123(R)) and other costs related to acquisition transactions ('EBITDA') is presented because it is a measure commonly used and is presented solely in order to improve the understanding of the Company's operating results and to provide further perspective on these results. EBITDA, however, should not be considered as an alternative to operating income or net income for the period as an indicator of the operating performance of the Company.
 
Similarly, EBITDA should not be considered as an alternative to cash flows from operating activities as a measure of liquidity. EBITDA is not a measure of financial performance under generally accepted accounting principles and may not be comparable to other similarly titled measures for other companies. EBITDA may not be indicative of the historic operating results of the Company; nor is it meant to be predictive of potential future results. Reconciliation between the Company's Operating income and EBITDA is presented in the attached summary financial statements.
 
About Gilat
Gilat Satellite Networks Ltd (NASDAQ, TASE: GILT) is a leading provider of products and services for satellite-based broadband communications. Gilat develops and markets a wide range of high-performance satellite ground segment equipment and VSATs, with an increasing focus on the consumer and Ka-band market. In addition, Gilat enables mobile SOTM (Satellite-on-the-Move) solutions providing low-profile antennas, next generation solid-state power amplifiers and modems. Gilat also provides managed network and satellite-based services for rural telephony and Internet access via its subsidiaries in Peru and Colombia.
  
With over 25 years of experience, and over a million products shipped to more than 85 countries, Gilat has provided enterprises, service providers and operators with efficient and reliable satellite-based connectivity solutions, including cellular backhaul, banking, retail, e-government and rural communication networks. Gilat also enables leading defense, public security and news organizations to implement advanced, on-the-move tactical communications on board their land, air and sea fleets using Gilat's high-performance SOTM solutions. For more information, please visit us at www.gilat.com

 
5

 
 
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. 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
Joelle Inowlocki
JoelleI@gilat.com

KCSA Strategic Communications
Phil Carlson, Vice President
(212) 896-1233
pcarlson@kcsa.com

Thomas Mei, Account Executive
(212) 896-1208
tmei@kcsa.com
 
 
6

 

GILAT SATELLITE NETWORKS LTD.
       
CONDENSED CONSOLIDATED BALANCE SHEET
       
US dollars in thousands
       
 
   
December 31,
     
December 31,
 
   
2014
   
2013
 
   
Unaudited
       
ASSETS
           
             
CURRENT ASSETS:
           
   Cash and cash equivalents
    27,726       58,424  
   Restricted cash
    25,983       18,891  
   Restricted cash held by trustees
    15,441       3,221  
   Trade receivables, net
    57,728       56,466  
   Inventories
    25,112       27,141  
   Other current assets
    14,760       10,143  
   Total current assets
    166,750       174,286  
                 
LONG-TERM INVESTMENTS AND RECEIVABLES:
               
   Long-term restricted cash
    216       6,279  
   Severance pay funds
    8,085       9,856  
   Other long term receivables and deferred charges
    12,124       278  
   Total long-term investments and receivables
    20,425       16,413  
                 
PROPERTY AND EQUIPMENT, NET
    90,893       85,369  
                 
INTANGIBLE ASSETS, NET
    22,970       28,830  
                 
GOODWILL
    63,870       63,870  
                 
TOTAL ASSETS
    364,908       368,768  
 
 
7

 
 
GILAT SATELLITE NETWORKS LTD.
       
CONDENSED CONSOLIDATED BALANCE SHEET
       
US dollars in thousands
       
 
   
December 31,
    December 31,  
   
2014
    2013  
   
Unaudited
       
        LIABILITIES AND EQUITY
           
             
CURRENT LIABILITIES:
           
   Short-term bank credit and loans
    15,857       -  
   Current maturities of long-term loans
    4,595       4,665  
   Trade payables
    22,850       20,900  
   Accrued expenses
    22,475       16,748  
   Short-term advances from customers, held by trustees
    12,858       -  
   Other current liabilities
    21,527       54,666  
                 
   Total current liabilities
    100,162       96,979  
                 
LONG-TERM LIABILITIES:
               
   Accrued severance pay
    8,157       9,628  
   Long-term loans, net of current maturities
    26,271       31,251  
   Other long-term liabilities
    5,179       4,877  
                 
   Total long-term liabilities
    39,607       45,756  
                 
COMMITMENTS AND CONTINGENCIES
               
                 
EQUITY:
               
   Share capital - ordinary shares of NIS 0.2 par value
    1,966       1,932  
   Additional paid-in capital
    876,624       873,045  
   Accumulated other comprehensive income
    (1,420 )     1,591  
   Accumulated deficit
    (652,031 )     (650,535 )
                 
Total equity
    225,139       226,033  
                 
TOTAL LIABILITIES AND EQUITY
    364,908       368,768  
 
 
8

 
 
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  
        31 December 2014       31 December 2013  
     
GAAP
   
Adjustments (1)
   
Non-GAAP
   
GAAP
   
Adjustments (1)
   
Non-GAAP
 
     
Unaudited
   
Unaudited
   
Unaudited
   
Unaudited
   
Unaudited
   
Unaudited
 
                                       
Revenues
      73,097       -       73,097       55,728       -       55,728  
Cost of revenues
    47,325       (1,251 )     46,074       35,519       (1,256 )     34,263  
Gross profit
      25,772       1,251       27,023       20,209       1,256       21,465  
        35 %             37 %     36 %             39 %
Research and development expenses:
                                               
Expenses incurred
    6,804       (112 )     6,692       7,627       (129 )     7,498  
Less - grants
      675       -       675       142       -       142  
        6,129       (112 )     6,017       7,485       (129 )     7,356  
Selling and marketing expenses
    7,257       (346 )     6,911       8,535       (344 )     8,191  
General and administrative expenses
    6,892       (283 )     6,609       6,341       (312 )     6,029  
Restructuring Costs
    -       -       -       564       (564 )     -  
Operating income (loss)
    5,494       1,992       7,486       (2,716 )     2,605       (111 )
Financial income (expenses), net
    (1,939 )     -       (1,939 )     (1,602 )     -       (1,602 )
Income (loss) before taxes on income
    3,555       1,992       5,547       (4,318 )     2,605       (1,713 )
Taxes on income
    1,118       -       1,118       (708 )     -       (708 )
Net income (loss) from continuing operations
    2,437       1,992       4,429       (3,610 )     2,605       (1,005 )
Net income (loss) from discontinued operations
    -       -       -       (3,911 )     3,911       -  
Net income (loss)
    2,437       1,992       4,429       (7,521 )     6,516       (1,005 )
                                                   
Basic net earnings (loss) per share from continuing operations
    0.06                       (0.09 )                
Basic net earnings (loss) per share from discontinued operations
    -                       (0.09 )                
Basic net earnings (loss) per share
    0.06               0.10       (0.18 )             (0.02 )
                                                   
Diluted net earnings (loss) per share from continuing operations
    0.06                       (0.09 )                
Diluted net earnings (loss) per share from discontinued operations
    -                       (0.09 )                
Diluted net earnings (loss) per share
    0.06               0.10       (0.18 )             (0.02 )
                                                   
Weighted average number of shares used in
                                               
   computing net earnings (loss) per share
                                               
          Basic     42,664,812               42,664,812       42,098,075               42,098,075  
          Diluted     43,165,834               43,640,235       42,098,075               42,098,075  
                                                   
 
(1) Adjustments reflect the effect of non-cash stock based compensation as per ASC 718, amortization of intangible assets related to Shares acquisition transactions, and net income (loss) from discontinued operations.
 
             
Three months ended
                   
Three months ended
         
             
31 December 2014
                   
31 December 2013
         
             
Unaudited
                   
Unaudited
         
Non-cash stock-based compensation expenses:
                                               
Cost of revenues
            53                       58          
Research and development
            112                       129          
Selling and marketing
            134                       131          
General and administrative
            283                       312          
                582                       630          
                                                   
Amortization of intangible assets related to acquisition transactions:
                                               
Cost of revenues
            1,198                       1,198          
Selling and marketing
            212                       213          
                1,410                       1,411          
 
 
9

 
 
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)
 
                   
      Year ended     Year ended  
      31 December 2014     31 December 2013  
     
GAAP
   
Adjustments (1)
   
Non-GAAP
   
GAAP
   
Adjustments (1)
   
Non-GAAP
 
     
Unaudited
   
Unaudited
   
Unaudited
         
Unaudited
   
Unaudited
 
                                       
Revenues
      235,133       -       235,133       234,866       -       234,866  
Cost of revenues
    151,498       (5,024 )     146,474       155,210       (4,993 )     150,217  
Gross profit
      83,635       5,024       88,659       79,656       4,993       84,649  
        36 %             38 %     34 %             36 %
Research and development expenses:
                                               
Expenses incurred
    27,635       (474 )     27,161       29,491       (468 )     29,023  
Less - grants
      2,477       -       2,477       1,591       -       1,591  
        25,158       (474 )     24,684       27,900       (468 )     27,432  
Selling and marketing expenses
    32,537       (1,388 )     31,149       32,214       (1,297 )     30,917  
General and administrative expenses
    20,903       (1,181 )     19,722       23,071       (1,151 )     21,920  
Restructuring Costs
    -       -       -       564       (564 )     -  
Operating income (loss)
    5,037       8,067       13,104       (4,093 )     8,473       4,380  
Financial income (expenses), net
    (3,837 )     -       (3,837 )     (6,239 )     -       (6,239 )
Income (loss) before taxes on income
    1,200       8,067       9,267       (10,332 )     8,473       (1,859 )
Taxes on income
    1,901       -       1,901       (755 )     -       (755 )
Net income (loss) from continuing operations
    (701 )     8,067       7,366       (9,577 )     8,473       (1,104 )
Net income (loss) from discontinued operations
    (795 )     795       -       (8,320 )     8,320       -  
Net income (loss)
    (1,496 )     8,862       7,366       (17,897 )     16,793       (1,104 )
                                                   
Basic net earnings (loss) per share from continuing operations
    (0.02 )                     (0.23 )                
Basic net loss per share from discontinued operations
    (0.02 )                     (0.20 )                
Basic net earnings (loss) per share
    (0.04 )             0.17       (0.43 )             (0.03 )
                                                   
Diluted net earnings (loss) per share from continuing operations
    (0.02 )                     (0.23 )                
Diluted net loss per share from discontinued operations
    (0.02 )                     (0.20 )                
Diluted net earnings (loss) per share
    (0.04 )             0.17       (0.43 )             (0.03 )
                                                   
Weighted average number of shares used in
                                               
   computing net earnings (loss) per share
                                               
          Basic     42,444,482               42,444,482       41,960,925               41,960,925  
          Diluted     42,444,482               43,621,979       41,960,925               41,960,925  
                                                   
                                                   
 
(1) Adjustments reflect the effect of non-cash stock based compensation as per ASC 718, amortization of intangible assets related to Shares acquisition transactions, and net income (loss) from discontinued operations.
 
             
Year ended
                   
Year ended
         
             
31 December 2014
                   
31 December 2013
         
             
Unaudited
                   
Unaudited
         
Non-cash stock-based compensation expenses:
                                               
Cost of revenues
            232                       201          
Research and development
            474                       468          
Selling and marketing
            538                       448          
General and administrative
            1,181                       1,151          
                2,425                       2,268          
                                                   
Amortization of intangible assets related to acquisition transactions:
                                               
Cost of revenues
            4,792                       4,792          
Selling and marketing
            850                       849          
                5,642                       5,641          
 
 
10

 
 
GILAT SATELLITE NETWORKS LTD.
                       
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                       
U.S. dollars in thousands (except share and per share data)
                       
    Year ended     Three months ended  
    December 31,     December 31,  
   
2014
   
2013
   
2014
   
2013
 
   
Unaudited
         
Unaudited
   
Unaudited
 
                         
Revenues
    235,133       234,866       73,097       55,728  
Cost of revenues
    151,498       155,210       47,325       35,519  
Gross profit
    83,635       79,656       25,772       20,209  
                                 
Research and development expenses:
                               
Expenses incurred
    27,635       29,491       6,804       7,627  
Less - grants
    2,477       1,591       675       142  
      25,158       27,900       6,129       7,485  
Selling and marketing expenses
    32,537       32,214       7,257       8,535  
General and administrative expenses
    20,903       23,071       6,892       6,341  
Restructuring Costs
    -       564       -       564  
Operating income (loss)
    5,037       (4,093 )     5,494       (2,716 )
Financial expenses, net
    (3,837 )     (6,239 )     (1,939 )     (1,602 )
Income (loss) before taxes on income
    1,200       (10,332 )     3,555       (4,318 )
Taxes on income (tax benefit)
    1,901       (755 )     1,118       (708 )
Net income (loss) from continuing operations
    (701 )     (9,577 )     2,437       (3,610 )
Net loss from discontinued operations
    (795 )     (8,320 )     -       (3,911 )
Net income (loss)
    (1,496 )     (17,897 )     2,437       (7,521 )
                                 
Net income (loss) per share from continuing operations (basic and diluted)
    (0.02 )     (0.23 )     0.06       (0.09 )
Net loss per share from discontinued operations (basic and diluted)
    (0.02 )     (0.20 )     -       (0.09 )
Net income (loss) per share (basic and diluted)
    (0.04 )     (0.43 )     0.06       (0.18 )
                                 
Weighted average number of shares used in
                               
computing net earnings (loss) per share
                               
Basic
    42,444,482       41,960,925       42,664,812       42,098,075  
Diluted
    42,444,482       41,960,925       43,165,834       42,098,075  
 
 
11

 
 
GILAT SATELLITE NETWORKS LTD.
                       
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                       
US dollars in thousands
                       
                         
    Year ended     Three months ended  
    December 31,     December 31,  
   
2014
   
2013
   
2014
   
2013
 
   
Unaudited
         
Unaudited
   
Unaudited
 
Cash flows from continuing operations
                       
Cash flows from operating activities:
                       
Net income (loss)
    (1,496 )     (17,897 )     2,437       (7,521 )
Net loss from discontinued operations
    (795 )     (8,320 )     -       (3,911 )
Net income (loss) from continuing operations
    (701 )     (9,577 )     2,437       (3,610 )
Adjustments required to reconcile net income (loss)
                               
to net cash generated provided by (used in) operating activities:
                               
Depreciation and amortization
    15,951       17,559       4,325       4,049  
Stock-based compensation
    2,425       2,268       582       630  
Accrued severance pay, net
    301       (38 )     259       (37 )
Accrued interest and exchange rate differences on
                               
   short and long-term restricted cash, net
    858       307       394       (1,075 )
Exchange rate differences on long-term loans
    (416 )     157       (105 )     65  
Capital loss from disposal of property and equipment
    430       48       189       35  
Deferred income taxes
    7       (2,733 )     63       (3,024 )
Increase in trade receivables, net
    (2,457 )     (4,228 )     (3,995 )     (4,894 )
Decrease (increase) in other assets (including short-term, long-term
                               
   and deferred charges)
    (20,251 )     10,740       (8,520 )     9,596  
Decrease (increase) in inventories
    (445 )     (6,502 )     781       1,289  
Increase (decrease) in trade payables
    2,226       (1,225 )     6,930       (4,854 )
Increase (decrease) in accrued expenses
    5,401       (4,703 )     3,910       (464 )
Increase (decrease) in advances from customers, held
                               
   by trustees
    14,068       (4,448 )     14,133       -  
Increase (decrease) in other current liabilities and other long term liabilities
    (33,559 )     18,772       (13,958 )     24,360  
Net cash provided by (used in) operating activities
    (16,162 )     16,397       7,425       22,066  
 
 
12

 
 
GILAT SATELLITE NETWORKS LTD.
                       
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                       
US dollars in thousands
                       
                         
    Year ended     Three months ended  
    December 31,     December 31,  
   
2014
    2013    
2014
   
2013
 
   
Unaudited
         
Unaudited
   
Unaudited
 
Cash flows from investing activities:
                       
Purchase of property and equipment
    (12,630 )     (4,063 )     (435 )     (1,246 )
Investment in restricted cash held by trustees
    (24,869 )     (17,587 )     (18,955 )     (3,132 )
Proceeds from restricted cash held by trustees
    12,306       13,744       3,681       3,461  
Investment in restricted cash (including long-term)
    (12,788 )     (25,961 )     (2,207 )     (23,480 )
Proceeds from restricted cash (including long-term)
    11,228       2,975       10,996       418  
Purchase of intangible assets
    -       (16 )     -       -  
                                 
Net cash used in investing activities
    (26,753 )     (30,908 )     (6,920 )     (23,979 )
                                 
                                 
Cash flows from financing activities:
                               
Capital lease payments
    (234 )     -       (148 )     -  
Issuance of restricted stock units and exercise of stock options
    1,185       581       437       2  
Payment of obligation related to the purchase of intangible assets
    (500 )     (500 )     -       -  
Short term bank credit, net
    16,571       (3,518 )     2,394       (3,426 )
Repayment of long-term loans
    (4,633 )     (12,950 )     (149 )     (146 )
                                 
Net cash provided by (used in) financing activities
    12,389       (16,387 )     2,534       (3,570 )
                                 
Cash flows from discontinued operations
                               
   Net cash used in operating activities
    -       (5,996 )     -       (4,688 )
   Net cash provided by investing activities
    -       15,791       -       15,086  
   Net cash provided by (used in) financing activities
    -       12,884       -       (300 )
      -       22,679       -       10,098  
                                 
Effect of exchange rate changes on cash and cash equivalents
    (172 )     (325 )     49       (105 )
                                 
Decrease in cash and cash equivalents
    (30,698 )     (8,544 )     3,088       4,510  
                                 
Cash and cash equivalents at the beginning of the period
    58,424       66,968       24,638       53,914  
                                 
Cash and cash equivalents at the end of the period
    27,726       58,424       27,726       58,424  
 
 
13

 
 
GILAT SATELLITE NETWORKS LTD.
                       
CONDENSED EBITDA
                       
US dollars in thousands
                       
    Year ended     Three months ended  
    December 31,     December 31,  
   
2014
   
2013
   
2014
   
2013
 
   
Unaudited
   
Unaudited
   
Unaudited
   
Unaudited
 
                         
Operating income (loss)
    5,037       (4,093 )     5,494       (2,716 )
Add:
                               
Non-cash stock-based compensation expenses
    2,425       2,268       582       630  
Restructuring costs
    -       564       -       564  
Depreciation and amortization
    15,951       17,559       4,325       4,049  
EBITDA
    23,413       16,298       10,401       2,527  
 
14