Gilat Satellite Networks Ltd. · NASDAQ:GILT
Gilat Satellite Networks — Q4 FY2020 Earnings Presentation
32 slides from Gilat Satellite Networks's earnings presentation, Sep 29, 2020
Slide 1: Investor Presentation Q4 Fiscal Year 2020
Investor Presentation Q1 Fiscal Year 20 20 This presentation reflects information as of December 4, 2019 Fix Building Graphic Investor Presentation Q 4 Fiscal Year 20 20 This presentation reflects information as of September 29, 2020
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
2 Cautionary Statement Regarding Forward - Looking Statements 2 Certain information in this presentation contains forward - looking statements, including, but not limited to, information relating to Comtech’s and Gilat’s future performance and financial condition, pending litigation, potential trans
Slide 3: Use of Non-GAAP Financial Measures
Use of Non - GAAP Financial Measures 3 In order to provide investors with additional information regarding the Company’s financial results, this presentation contains "Non - GAAP financial measures" under the rules of the SEC . The Company’s Adjusted EBITDA is a Non - GAAP measure that represents ea
Slide 4: Legacy of Complex Problem Solving
4 Legacy of Complex Problem Solving Innovative Solutions for Commercial and Government Customers Thought Leader in Secure Wireless Communications Comtech - Connections that Matter® Notes See Appendix II of this presentation for the reconciliation from US GAAP to Adjusted EBITDA, which is a Non - GAA
Slide 5: Comtech – Impact of COVID-19 on Fiscal 2020
5 Comtech – Impact of COVID - 19 on Fiscal 2020 Our third quarter of fiscal 2020 corresponded precisely with the period in which worldwide restrictions on business activities were in force due to the COVID - 19 pandemic. In response to lower sales and delayed orders, in Q3 of fiscal 2020, we impleme
Slide 6: Overview of Q4 FY20 Performance
30.2% 44.6% 25.2% Domestic International U.S. Government Sales by Customer Type Overview of Q4 FY20 Performance Q4 FY 2020 Revenue was $149.7 million GAAP Operating Income of $2.8 million includes: - amortization of $5.6 million - depreciation of $2.5 million - stock - based compensation of $6.2 mil
Slide 7: Comtech Has Transformed Itself into a Wireless Leader
7 Fiscal 2020 $616.7M revenue $ 77.8 M Adjusted EBITDA ~$1B of visibility with backlog and contracts 400+ engineering professionals Global market leader for satellite ground station equipment 50% market share of wireless 911 calls Leader in statewide deployments of NG - 911 systems Leader in mission
Slide 8: Historical Revenue and Adjusted EBITDA Trends
8 $ 48.1M $ 70.7M $ 78.4M $ 93.5M $77.8M FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 $ 411.0M $ 550.4M $ 570.6M $ 671.8M $616.7M FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Historical Revenue and Adjusted EBITDA Trends Revenue (2) Adjusted EBITDA (2) (3) ~12% ~13% ~14% ~14% ~13% Adjusted EBITDA as a % of Re
Slide 9: Comtech Participates in Growing Markets
9 Comtech Participates in Growing Markets Increased threats of electronic warfare and demand for high - bandwidth battlefield communications Ultimate transition to 5G will increase data usage, requiring greater satellite backhaul Satellite Cellular Backhaul for 3G/4G and 5G Military Communications M
Slide 10: Comtech's Two Segments Have Common Capabilities
10 Comtech’s Two Segments Have Common Capabilities We leverage several key competencies, including R&D and engineering, across both segments to deliver superior capabilities to customers Secure Wireless Technology Communications Commercial Solutions Revenue $353.7M 57.4 % of Total Adjusted EBITDA $
Slide 11: Recent Successful Transactions
11 x Entry into the 911 public safety and location markets and significantly strengthened our U.S. Government business, created scale and diversified earnings x Further expanded presence in growing 911 public safety market and increased recurring revenues x Helped secure a five - year $100.0M contra
Slide 12: UHP Networks Acquisition Update
12 x In June 2020, we agreed to amend the terms of our purchase agreement, which we originally announced in November 2019. The aggregate purchase price was reduced by 24% from $50.0 million to $38.0 million. Cash consideration will be $5.0 million, with the remainder in shares of common stock, cash,
Slide 13: Commercial Solutions Segment – Growth Drivers
13 Satellite Ground Station Technologies Public Safety and Location Technologies Notes (1) Northern Sky Research, Wireless Backhaul & 5G via Satellite, 13 th Ed., April 2019. Market size for 2018. (2) Frost & Sullivan, Next - Generation 911 – The Future of Public Safety, Forecast to 2025, April 2020
Slide 14: Government Solutions Segment – Growth Drivers
14 Mission - Critical Technologies High - Performance Transmission Technologies Amplifiers for Identification, Friend or Foe and Electronic Warfare Applications Satellite Ground Station Products and Space Components Notes (1) Research and Markets, The Global C4ISR Market 2018 - 2026 - Market Size an
Slide 15: We Have Visibility into ~$1.0 Billion of Future Revenue
15 We Have Visibility into ~$1.0 Billion of Future Revenue Commercial Solutions Government Solutions $443.2M $593.2M $177.7M $485.7M $150.0M $308.0M Backlog Contracts in Place, Not in Backlog Revenue Visibility $620.9M $1.1B $458.0M As of July 31, 2020 As of July 31, 2020 (1) Notes (1) Examples of c
Slide 16: Comments and Financial Targets for Fiscal 2021
16 Comments and Financial Targets For Fiscal 2021 Text Revenue $610.0M - $630.0M Adjusted EBITDA (1) $74.0M - $78.0M GAAP EPS $x.xx - $x.xx Non GAAP EPS $x.xx - $x.xx FY 2021 Targets Notes (1) Adjusted EBITDA represents earnings (loss) before income taxes, interest (income) and other, write - off of
Slide 17: We Believe the Future is Bright for Many Years to Come
17 Strong Visibility with Growing Markets History of Long - Term Capital Return to Stockholders Commitment to Innovation and Engineering Experienced Management Team Market Leadership Positions We Believe the Future is Bright for Many Years to Come
Slide 18: Appendix I: Historical Data and Trends
18 Appendix I Historical Data and Trends
Slide 19: Recent Quarterly Operating Results
19 Recent Quarterly Operating Results Q4 Q1 Q2 Q3 Q4 2019 2020 2020 2020 2020 Revenue Commercial Solutions 102,985$ 94,314$ 96,122$ 78,311$ 84,983$ Government Solutions 73,387 75,953 65,532 56,810 64,690 Total Revenue 176,372$ 170,267$ 161,654$ 135,121$ 149,673$ Net Income (Loss) 6,135$ 6,388$ 3,495
Slide 20: Recent Annual Operating Results
20 Recent Annual Operating Results 2016 2017 2018 2019 2020 Revenue Commercial Solutions 248,955$ 330,867$ 345,076$ 357,293$ 353,730$ Government Solutions 162,049 219,501 225,513 314,504 262,985 Total Revenue 411,004$ 550,368$ 570,589$ 671,797$ 616,715$ Net Income (Loss) (7,738)$ 15,827$ 29,769$ 25,
Slide 21: Historical Revenue Results
21 2016 2017 2018 2019 2020 $162,049 $219,501 $225,513 $314,504 $262,985 Government Solutions Historical Revenue Results Note (1) Comtech’s fiscal year end is July 31 . 2016 2017 2018 2019 2020 $248,955 $330,867 $345,076 $357,293 $353,730 Commercial Solutions $ in 000s $ in 000s 2016 2017 2018 2019
Slide 22: Our Customer Base
22 Our Customer Base Notes (1) Comtech’s fiscal year end is July 31. (2) Totals may not foot due to rounding . 2016 2017 2018 2019 2020 41% 33% 36% 40% 36% 29% 39% 39% 35% 40% 30% 28% 26% 25% 24% U.S. Government Domestic International
Slide 23: Historical Bookings & Backlog
23 Historical Bookings & Backlog Note (1) Comtech’s fiscal year end is July 31 . $ in 000s $ in 000s Bookings Total Backlog 2016 2017 2018 2019 2020 $451,278 $512,593 $755,054 $724,056 $584,448 2016 2017 2018 2019 2020 $484,005 $446,230 $630,695 $682,954 $620,912
Slide 24: Total Research and Development Expense
24 Total Research and Development Expense $ in 000s Notes (1) Research and development expense includes company - funded and customer - funded. (2) Comtech’s fiscal year end is July 31. 2016 2017 2018 2019 2020 $59,622 $81,310 $70,793 $71,086 $64,103 $ in 000s Research and Development Expense
Slide 25: Recent Balance Sheet Trends
25 Recent Balance Sheet Trends Balance Sheet Notes (1) As defined in our Credit Facility, as amended. Excludes insignificant amounts of finance lease obligations. (2) Comtech’s fiscal year end is July 31. $ in 000s Jul. 31, Oct. 31, Jan. 31, Apr. 30, Jul. 31, 2019 2019 2020 2020 2020 Cash and Cash E
Slide 26: Market Data
26 Market Data General Market Information Nasdaq Symbol: CMTL Institutional Holders (2) : 228 52 - Week Range (1) : $11.70 - $37.79 Analyst Coverage: 6 Source: Nasdaq Analysts Notes (1) 52 - week range indicates the high and low closing prices during the period of August 1, 2019 through July 31, 202
Slide 27: Appendix II: Reconciliation of GAAP to Non-GAAP Financial Measures
27 Appendix II Reconciliation of GAAP to Non - GAAP Financial Measures
Slide 28: Reconciliation of CMTL GAAP to Non-GAAP Financial Measures
28 Reconciliation of CMTL GAAP to Non - GAAP Financial Measures Adjusted EBITDA Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Reported net income (loss) 6,135$ 6,388$ 3,495$ (3,989)$ 1,126$ Income tax expense (benefit) 2,078 1,145 1,117 (759) 787 Net interest expense & other 2,192 1,727 1,622 1,612 903 St
Slide 29: Reconciliation of CMTL GAAP to Non-GAAP Financial Measures (cont'd)
29 Reconciliation of CMTL GAAP to Non - GAAP Financial Measures (cont’d) Adjusted EBITDA 2016 2017 2018 2019 2020 Reported net (loss) income (7,738)$ 15,827$ 29,769$ 25,041$ 7,020$ Income tax (benefit) expense (454) 9,654 (5,143) 3,869 2,290 Write-off of deferred financing costs - - - 3,217 - Net in
Slide 30: Reconciliation of CMTL GAAP to Non-GAAP Financial Measures (cont'd)
30 Reconciliation of CMTL GAAP to Non - GAAP Financial Measures (cont’d) Earnings (Loss) per Diluted Share Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY2020 GAAP earnings (loss) per diluted share 0.14$ 0.32$ 0.31$ 0.25$ 1.03$ 0.26$ 0.14$ (0.16)$ 0.04$ 0.28$ Acquisition p
Slide 31: Additional Information and Where to Find It
Additional Information and Where to Find It This presentation contains information in respect of a proposed business combination involving Comtech and Gilat . This document does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities or a solicitation o
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