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 August 2018
 
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 ☒          Form 40-F ☐
 
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 ☐          No ☒
 
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 August 7, 2018, announcing Gilat’s Second Quarter 2018 results.
 
We consent to the incorporation by reference of the GAAP financial information included herein, in the Registration Statements on Form S-8 (Registration Nos. 333-180552, 333-187021, 333-204867, 333-210820, 333-221546 and 333-223839).
 
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 August 7, 2018
By: /s/ Yael Shofar
 
 
       Yael Shofar
 
 
       General Counsel

2

 
Gilat Reports Continued Strong Growth in Profitability in Q2 2018

Company achieves GAAP operating income of $4.1 million (up 121.0% year over year)
and Adjusted EBITDA of $8.1 million (up 37.6% year over year)

Petah Tikva, Israel – August 7, 2018 – Gilat Satellite Networks Ltd. (NASDAQ, TASE: GILT), a worldwide leader in satellite networking technology, solutions and services, today reported its results for the second quarter ended June 30, 2018.
 
Key Financial Highlights:
 
·
Revenues for Q2 2018 were $66.5 million, compared with $66.2 million in Q2 2017.
 
·
Continued strong profitability:
 
o
Q2 2018 GAAP operating income increased to $4.1 million, up 121.0% from Q2 2017.
 
o
Q2 2018 Non-GAAP operating income rose to $5.7 million, up 37.1% year over year.
 
o
Q2 2018 GAAP net income was $2.2 million, or $0.04 per diluted share, compared with $2.1 million, or $0.04 per diluted share, in Q2 2017.
 
o
Q2 2018 non-GAAP net income was $3.7 million, or $0.07 per diluted share, versus $4.6 million, or $0.08 per diluted share, in Q2 2017.
 
o
Q2 2018 Adjusted EBITDA increased 37.6% year over year to $8.1 million, or 12.2 % of revenues.
 
·
Reiterated management objectives for 2018: revenue range between $285 million to $305 million, GAAP operating income between $17 million and $21 million, and Adjusted EBITDA between $30 million and $34 million.
 
Yona Ovadia, CEO of Gilat, commented:
 
“I am pleased to report that the second quarter of 2018 was another strong quarter for Gilat. We continued the trend of improvement in profitability as well as continued growth momentum in our business, as evidenced with the following achievements:
 
In our strategic area of LTE cellular backhaul we have secured two additional wins, one with Telstra in Australia and the other with a major MNO in Latin America. In both these areas of the globe, Gilat was selected for its recognized global leadership in large, efficient and reliable LTE networks, which is what the businesses and residents in the remote locations of these countries expect and are willing to pay for.
 
“The win in LATAM is joined by the announcement on an expansion of our relationships with Hispasat for the delivery of affordable high quality broadband services to consumers and enterprises in the vast areas of Brazil that currently do not have this service, which marks our continued efforts and recovery of the business in this key part of the world.
 
“Finally, we also announced the win of two new regional telecommunications infrastructure projects for Fitel in Peru, bringing Gilat’s awarded regions to six out of the 13 regions. Gilat’s long term goal in Peru is for multi-year high margin recurring revenues from services, which is the motivation for these projects rather than the construction dollars.”
 
3

 
Mr. Ovadia concluded: “We remain committed to our target of improving the bottom line, and are confident that as capacity prices continue to decrease and demand grows, new opportunities will continue to be generated. This, together with our ongoing significant investment in R&D will drive further momentum in our strategic growth engines.”

Key Recent Announcements:
 
·
Hispasat and Gilat Partner to Commercialize High Throughput Satellite (HTS) Capacity of Amazonas 3 and 5 Satellites over Brazil
 
·
Tier-1 Mobile Network Operator in Latin America Selects Gilat for LTE Satellite Backhaul
 
·
Telstra Selects Gilat’s Satellite-based Cellular Backhaul Solution for 4G Mobile Service Expansion to Remote Locations Across Australia
 
·
Telesat and Gilat Join Forces to Develop Broadband Communication Modem Technology for Low Earth Orbit (LEO) Satellites
 
·
Gilat Awarded $153.6 Million by Fitel Peru for Regional Telecommunications Projects

Conference Call and Webcast Details:
 
Gilat management will host a conference call today, Tuesday, August 7, to discuss the second quarter results.  The details are as follows:
 
Conference Call and Webcast
 
Following the release, Yona Ovadia, Chief Executive Officer, and Adi Sfadia, Chief Financial Officer, will discuss Gilat’s second quarter 2018 results and participate in a question and answer session: 
 
Date:
Tuesday, August 7, 2018
Start:
09:30 AM EST / 16:30 IST
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: www.veidan-stream.com/gilatq2-2018.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 7, 2018 at 12:00 PM EST / 19:00 IST
End:
August 10, 2018 at 12:00 PM EST / 19:00 IST
Dial-in:
 
US: 1-888-295-2634
International: (972) 3-925-5904
 
4

 
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 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 2018. 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 Gilat
 
Gilat 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
 
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. 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.

Contact:
Gilat Satellite Networks
Doreet Oren, Director Corporate Communications
DoreetO@gilat.com

Comm-Partners LLC
June Filingeri, President
junefil@optonline.net

6

GILAT SATELLITE NETWORKS LTD.
 
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,
 
   
2018
   
2017
   
2018
   
2017
 
   
Unaudited
   
Unaudited
 
                         
Revenues
 
$
133,882
   
$
130,168
   
$
66,508
   
$
66,237
 
Cost of revenues
   
90,053
     
93,258
     
44,066
     
46,668
 
                                 
Gross profit
   
43,829
     
36,910
     
22,442
     
19,569
 
                                 
Research and development expenses
   
16,730
     
13,467
     
8,284
     
6,712
 
Less - grants
   
810
     
523
     
343
     
476
 
Research and development expenses, net
   
15,920
     
12,944
     
7,941
     
6,236
 
Selling and marketing expenses
   
11,716
     
11,350
     
6,303
     
5,555
 
General and administrative expenses
   
8,389
     
10,723
     
4,054
     
5,903
 
                                 
Total operating expenses
   
36,025
     
35,017
     
18,298
     
17,694
 
                                 
Operating income
   
7,804
     
1,893
     
4,144
     
1,875
 
                                 
Financial expenses, net
   
(2,188
)
   
(2,046
)
   
(1,605
)
   
(1,242
)
                                 
Income (loss) before taxes on income
   
5,616
     
(153
)
   
2,539
     
633
 
                                 
Taxes on income (tax benefit)
   
1,154
     
(1,501
)
   
388
     
(1,499
)
                                 
Net income
 
$
4,462
   
$
1,348
   
$
2,151
   
$
2,132
 
                                 
Earnings per share (basic and diluted)
 
$
0.08
   
$
0.02
   
$
0.04
   
$
0.04
 
                                 
Weighted average number of shares used in
                               
computing earnings per share
                               
Basic
   
54,811,893
     
54,649,863
     
54,858,330
     
54,676,042
 
Diluted
   
55,614,782
     
54,690,930
     
55,639,202
     
54,701,316
 

7

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, 2018
   
June 30, 2017
 
   
GAAP
   
Adjustments (1)
   
Non-GAAP
   
GAAP
   
Adjustments (1)
   
Non-GAAP
 
   
Unaudited
   
Unaudited
 
                                     
Gross profit
 
$
22,442
     
1,230
   
$
23,672
   
$
19,569
     
1,205
   
$
20,774
 
Operating expenses
   
18,298
     
(288
)
   
18,010
     
17,694
     
(1,049
)
   
16,645
 
Operating income
   
4,144
     
1,518
     
5,662
     
1,875
     
2,254
     
4,129
 
Income before taxes on income
   
2,539
     
1,518
     
4,057
     
633
     
2,491
     
3,124
 
Net income
 
$
2,151
     
1,518
   
$
3,669
   
$
2,132
     
2,491
   
$
4,623
 
                                                 
Earnings per share (basic and diluted)
 
$
0.04
   
$
0.03
   
$
0.07
   
$
0.04
   
$
0.04
   
$
0.08
 
                                                 
                                                 
Weighted average number of shares used in
                         
   computing earnings per share
                                               
    Basic
   
54,858,330
             
54,858,330
     
54,676,042
             
54,676,042
 
    Diluted
   
55,639,202
             
55,854,231
     
54,701,316
             
54,735,130
 
 
(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, 2018
   
June 30, 2017
 
   
Unaudited
   
Unaudited
 
             
GAAP net income
 
$
2,151
   
$
2,132
 
                 
Gross profit
               
Non-cash stock-based compensation expenses
   
36
     
11
 
Amortization of intangible assets related to acquisition transactions
   
1,194
     
1,194
 
     
1,230
     
1,205
 
Operating expenses
               
Non-cash stock-based compensation expenses
   
238
     
203
 
Amortization of intangible assets related to acquisition transactions
   
50
     
193
 
Trade secrets litigation expenses
   
-
     
25
 
Tax expenses under amnesty program
   
-
     
628
 
     
288
     
1,049
 
                 
Finance and taxes on income under amnesty program
   
-
     
237
 
                 
Non-GAAP net income
 
$
3,669
   
$
4,623
 


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)
       
 
   
Six months ended
   
Six months ended
 
   
June 30, 2018
   
June 30, 2017
 
   
GAAP
   
Adjustments (1)
   
Non-GAAP
   
GAAP
   
Adjustments (1)
   
Non-GAAP
 
   
Unaudited
   
Unaudited
 
                                     
Gross profit
 
$
43,829
     
2,430
   
$
46,259
   
$
36,910
     
2,410
   
$
39,320
 
Operating expenses
   
36,025
     
(551
)
   
35,474
     
35,017
     
(2,285
)
   
32,732
 
Operating income
   
7,804
     
2,981
     
10,785
     
1,893
     
4,695
     
6,588
 
Income (loss) before taxes on income
   
5,616
     
2,981
     
8,597
     
(153
)
   
4,932
     
4,779
 
Net income
 
$
4,462
     
2,981
   
$
7,443
   
$
1,348
     
4,932
   
$
6,280
 
                                                 
Basic income per share
 
$
0.08
   
$
0.06
   
$
0.14
   
$
0.02
   
$
0.09
   
$
0.11
 
                                                 
Diluted income per share
 
$
0.08
   
$
0.05
   
$
0.13
   
$
0.02
   
$
0.09
   
$
0.11
 
                                                 
Weighted average number of shares used in
                                               
   computing earnings per share
                                               
    Basic
   
54,811,893
             
54,811,893
     
54,649,863
             
54,649,863
 
    Diluted
   
55,614,782
             
55,835,134
     
54,690,930
             
54,785,783
 

(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
 
   
June 30, 2018
   
June 30, 2017
 
   
Unaudited
   
Unaudited
 
             
GAAP net income
 
$
4,462
   
$
1,348
 
                 
Gross profit
               
Non-cash stock-based compensation expenses
   
42
     
22
 
Amortization of intangible assets related to acquisition transactions
   
2,388
     
2,388
 
     
2,430
     
2,410
 
Operating expenses
               
Non-cash stock-based compensation expenses
   
450
     
396
 
Amortization of intangible assets related to acquisition transactions
   
101
     
388
 
Trade secrets litigation expenses
   
-
     
873
 
Tax expenses under amnesty program
   
-
     
628
 
     
551
     
2,285
 
                 
Finance and taxes on income under amnesty program
   
-
     
237
 
                 
Non-GAAP net income
 
$
7,443
   
$
6,280
 
9


GILAT SATELLITE NETWORKS LTD.
 
SUPPLEMENTAL INFORMATION
 
U.S. dollars in thousands
   

ADJUSTED EBITDA:
                       
                         
   
Six months ended
   
Three months ended
 
   
June 30,
   
June 30,
 
   
2018
   
2017
   
2018
   
2017
 
   
Unaudited
   
Unaudited
 
                         
GAAP operating income
 
$
7,804
   
$
1,893
   
$
4,144
   
$
1,875
 
Add:
                               
Non-cash stock-based compensation expenses
   
492
     
418
     
274
     
214
 
Trade secrets litigation expenses
   
-
     
873
     
-
     
25
 
Tax expenses under amnesty program
   
-
     
628
     
-
     
628
 
Depreciation and amortization
   
7,322
     
6,304
     
3,672
     
3,139
 
                                 
Adjusted EBITDA
 
$
15,618
   
$
10,116
   
$
8,090
   
$
5,881
 
 
SEGMENT REVENUE:
                       
                         
   
Six months ended
   
Three months ended
 
   
June 30,
   
June 30,
 
   
2018
   
2017
   
2018
   
2017
 
   
Unaudited
   
Unaudited
 
                         
Fixed Networks
 
$
73,843
   
$
51,801
   
$
36,228
   
$
24,928
 
Mobility Solutions
   
45,778
     
36,909
     
25,021
     
22,005
 
Terrestrial Infrastructure Projects
   
14,261
     
41,458
     
5,259
     
19,304
 
                                 
Total revenue
 
$
133,882
   
$
130,168
   
$
66,508
   
$
66,237
 
 
 
10

GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED BALANCE SHEET
U.S. dollars in thousands
 
   
June 30,
   
December 31,
 
   
2018
   
2017
 
   
Unaudited
   
Audited
 
             
ASSETS
           
             
CURRENT ASSETS:
           
Cash and cash equivalents
 
$
57,010
   
$
52,957
 
Restricted cash
   
32,295
     
29,288
 
Restricted cash held by trustees
   
6,334
     
4,325
 
Trade receivables, net
   
78,995
     
108,842
 
Inventories
   
27,380
     
28,853
 
Other current assets
   
31,856
     
21,686
 
                 
       Total current assets
   
233,870
     
245,951
 
                 
LONG-TERM INVESTMENTS:
               
Long-term restricted cash
   
153
     
187
 
Severance pay funds
   
7,264
     
8,188
 
Other long term receivables
   
1,447
     
1,071
 
                 
Total long-term investments
   
8,864
     
9,446
 
                 
PROPERTY AND EQUIPMENT, NET
   
82,498
     
82,246
 
                 
INTANGIBLE ASSETS, NET
   
3,110
     
5,709
 
                 
GOODWILL
   
43,468
     
43,468
 
                 
TOTAL ASSETS
 
$
371,810
   
$
386,820
 
 
11

GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED BALANCE SHEET
U.S. dollars in thousands
 
   
June 30,
   
December 31,
 
   
2018
   
2017
 
   
Unaudited
   
Audited
 
             
LIABILITIES AND EQUITY
           
             
CURRENT LIABILITIES:
           
Current maturities of long-term loans
 
$
4,466
   
$
4,479
 
Trade payables
   
22,013
     
33,715
 
Accrued expenses
   
67,606
     
70,534
 
Advances from customers and deferred revenues
   
15,210
     
16,721
 
Advances from customers, held by trustees
   
-
     
1,416
 
Other current liabilities
   
22,955
     
20,044
 
                 
       Total current liabilities
   
132,250
     
146,909
 
                 
LONG-TERM LIABILITIES:
               
Accrued severance pay
   
7,122
     
7,999
 
Long-term loans, net of current maturities
   
8,333
     
12,582
 
Other long-term liabilities
   
962
     
1,008
 
                 
       Total long-term liabilities
   
16,417
     
21,589
 
                 
EQUITY:
               
Share capital - ordinary shares of NIS 0.2 par value
   
2,610
     
2,601
 
Additional paid-in capital
   
922,778
     
921,726
 
Accumulated other comprehensive loss
   
(5,269
)
   
(3,046
)
Accumulated deficit
   
(696,976
)
   
(702,959
)
                 
Total equity
   
223,143
     
218,322
 
                 
TOTAL LIABILITIES AND EQUITY
 
$
371,810
   
$
386,820
 
 
12

GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS (*)
U.S. dollars in thousands
 
   
Six months ended
   
Three months ended
 
   
June 30,
   
June 30,
 
   
2018
   
2017
   
2018
   
2017
 
   
Unaudited
   
Unaudited
 
Cash flows from operating activities:
                       
Net income
 
$
4,462
   
$
1,348
   
$
2,151
   
$
2,132
 
Adjustments required to reconcile net income
                               
 to net cash provided by (used in) operating activities:
                               
Depreciation and amortization
   
7,322
     
6,304
     
3,672
     
3,139
 
Stock-based compensation of options and RSU's
   
492
     
418
     
274
     
214
 
Accrued severance pay, net
   
47
     
106
     
(41
)
   
167
 
Exchange rate differences on long-term loans
   
(13
)
   
113
     
(43
)
   
88
 
Deferred income taxes, net
   
(29
)
   
(159
)
   
(41
)
   
(143
)
Decrease (increase) in trade receivables, net
   
29,469
     
5,048
     
(6,040
)
   
12,003
 
Increase in other assets (including short-term, long-term
                               
   and deferred charges)
   
(9,151
)
   
(6,590
)
   
(9,865
)
   
(3,340
)
Decrease (increase) in inventories
   
332
     
(3,558
)
   
1,777
     
(246
)
Increase (decrease) in trade payables
   
(11,634
)
   
537
     
(3,362
)
   
929
 
Increase (decrease) in accrued expenses
   
(1,980
)
   
11,418
     
27
     
3,925
 
Decrease in advances from customers
   
(4,980
)
   
(5,710
)
   
(78
)
   
(2,612
)
Increase (decrease) in advances from customers, held
                               
   by trustees
   
(1,478
)
   
(3,342
)
   
-
     
1,070
 
Increase (decrease) in other current liabilities and other long term liabilities
   
5,575
     
(1,905
)
   
4,011
     
433
 
Net cash provided by (used in) operating activities
   
18,434
     
4,028
     
(7,558
)
   
17,759
 
                                 
Cash flows from investing activities:
                               
Purchase of property and equipment
   
(5,014
)
   
(2,172
)
   
(2,153
)
   
(960
)
Net cash used in investing activities
   
(5,014
)
   
(2,172
)
   
(2,153
)
   
(960
)
                                 
Cash flows from financing activities:
                               
Issuance of restricted stock units and exercise of stock options
   
573
     
493
     
267
     
227
 
Repayment of long-term loans
   
(4,249
)
   
(4,383
)
   
(249
)
   
(142
)
Net cash provided by (used in) financing activities
   
(3,676
)
   
(3,890
)
   
18
     
85
 
                                 
Effect of exchange rate changes on cash, cash equivalents and restricted cash
   
(709
)
   
(109
)
   
(1,005
)
   
(537
)
                                 
Increase (decrease) in cash, cash equivalents and restricted cash
   
9,035
     
(2,143
)
   
(10,698
)
   
16,347
 
                                 
Cash, cash equivalents and restricted cash at the beginning of the period
   
86,757
     
111,633
     
106,490
     
93,143
 
                                 
Cash, cash equivalents and restricted cash at the end of the period
 
$
95,792
   
$
109,490
   
$
95,792
   
$
109,490
 
 
(*) In November 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash”, which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for annual and interim periods beginning after December 15, 2017. The Company adopted this standard during the first quarter of 2018 using the retrospective transition method, as required by the new standard.
 
The following table provides a reconciliation of cash and cash equivalents, restricted cash, restricted cash held by trustees and long term restricted cash reported within the consolidated balance sheets that sum to the total of such amounts in the consolidated statements of cash flows:
 
   
June 30,
 
   
2018
   
2017
 
   
Unaudited
 
             
Cash and cash equivalents
 
$
57,010
   
$
78,831
 
Restricted cash
   
32,295
     
24,379
 
Restricted cash held by trustees
   
6,334
     
6,110
 
Long term restricted cash included in other assets
   
153
     
170
 
Cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows
 
$
95,792
   
$
109,490
 
 
 
13