Gilat Satellite Networks Ltd. · NASDAQ:GILT
Gilat Satellite Networks — Midwest IDEAS Investor Conference 2020
30 slides from Gilat Satellite Networks's conference presentation, Aug 26, 2020
Slide 1: Investor Presentation Q1 Fiscal Year 2020
Investor Presentation Q1 Fiscal Year 20 20 This presentation reflects information as of December 4, 2019 Fix Building Graphic Midwest IDEAS Investor Conference August 26, 2020 This presentation includes information from Comtech’s Quarterly Report on Form 10 - Q filed June 3, 2020 and subsequently fi
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward - Looking Statements Text 3 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, plans and objectives of Comtech’
Slide 3: Use of Non-GAAP Financial Measures
Use of Non - GAAP Financial Measures Text 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 represen
Slide 4: Legacy of Complex Problem Solving
Text 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 -
Slide 5: Comtech Has Transformed Itself into a Wireless Leader
5 Fiscal 2019 $671.8M revenue $93.5M 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 mission - critical and high - performance transmission techno
Slide 6: Historical Revenue and Adjusted EBITDA Trends
6 $ 48.1M $ 70.7M $ 78.4M $ 93.5M 2016 2017 2018 2019 $ 411.0M $ 550.4M $ 570.6M $ 671.8M 2016 2017 2018 2019 Historical Revenue and Adjusted EBITDA Trends Heights TM products, Next Generation 911 systems and important contract awards create strong revenue streams into the future Recent complete
Slide 7: Comtech – Impact of COVID-19
Text Comtech – Impact of COVID - 19 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, we implemented a variety of cost saving
Slide 8: Comtech Participates in Growing Markets
8 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 9: Comtech's Two Segments Have Common Capabilities
9 Comtech’s Two Segments Have Common Capabilities Text 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 $357.3M 53.2% of Total Adjusted EBITDA
Slide 10: Commercial Solutions Segment – Growth Drivers
10 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 (NG911) Market Insight, 2017. Market size forecast by year 20
Slide 11: Government Solutions Segment – Growth Drivers
11 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 12: We Have Visibility into ~$1.0 Billion of Future Revenue
12 We Have Visibility into ~ $1.0 Billion of Future Revenue Commercial Solutions Government Solutions $456.5M $604.5M $184.2M $521.2M $148.0M $337.0M Backlog Contracts in Place, Not in Backlog Revenue Visibility $640.7M $1,125.7M $485.0M As of April 30, 2020 As of April 30, 2020 (1) Notes (1) Exampl
Slide 13: Comtech Has a Proven Track Record of Acquisitions
13 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 14: UHP Acquisition Update
14 x In May 2020, we agreed to amend the terms of the agreement, which we originally announced in November 2019. x The aggregate purchase price was reduced by 24% from $50 million to $38 million. x Cash consideration will be $5 million, with the remainder of the consideration to be paid in shares of
Slide 15: We Believe the Future is Bright for Many Years to Come
15 Strong Visibility with Growing Markets History of Long - Term Capital Return to Stockholders Commitment to Innovation and Engineering Experienced Management Team Market Leadership Positions We Believe the Future is Bright for Many Years to Come
Slide 16: Appendix I Historical Data and Trends
16 Appendix I Historical Data and Trends
Slide 17: Recent Quarterly Operating Results
Recent Quarterly Operating Results Text Q3 Q4 Q1 Q2 Q3 2019 2019 2020 2020 2020 Revenue Commercial Solutions 89,600$ 102,985$ 94,314$ 96,122$ 78,311$ Government Solutions 80,848 73,387 75,953 65,532 56,810 Total Revenue 170,448$ 176,372$ 170,267$ 161,654$ 135,121$ Net Income (Loss) 7,612$ 6,135$ 6,3
Slide 18: Recent Annual Operating Results
Recent Annual Operating Results Text 2016 2017 2018 2019 Revenue Commercial Solutions 248,955$ 330,867$ 345,076$ 357,293$ Government Solutions 162,049 219,501 225,513 314,504 Total Revenue 411,004$ 550,368$ 570,589$ 671,797$ Net Income (Loss) (7,738)$ 15,827$ 29,769$ 25,041$ Adjusted EBITDA 48,062$
Slide 19: Historical Revenue Results
2016 2017 2018 2019 YTD Q3 2020 $162,049 $219,501 $225,513 $314,504 $198,295 Government Solutions Historical Revenue Results Text Note (1) Comtech’s fiscal year end is July 31 . 2016 2017 2018 2019 YTD Q3 2020 $248,955 $330,867 $345,076 $357,293 $268,747 Commercial Solutions $ in 000s $ in 000s 19 2
Slide 20: Our Customer Base
Our Customer Base Text Notes (1) Comtech’s fiscal year end is July 31. (2) Totals may not foot due to rounding . 2016 2017 2018 2019 YTD Q3 2020 41% 33% 36% 40% 38% 29% 39% 39% 35% 39% 30% 28% 26% 25% 23% U.S. Government Domestic International 20
Slide 21: Historical Bookings & Backlog
Historical Bookings & Backlog Text Note (1) Comtech’s fiscal year end is July 31 . $ in 000s $ in 000s Bookings Total Backlog 21 2016 2017 2018 2019 YTD Q3 2020 $451,278 $512,593 $755,054 $724,056 $424,789 2016 2017 2018 2019 YTD Q3 2020 $484,005 $446,230 $630,695 $682,954 $640,702
Slide 22: Total Research and Development Expense
Total Research and Development Expense Text $ 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 YTD Q3 2020 $59,622 $81,310 $70,793 $71,086 $49,160 $ in 000s Research and Development Expen
Slide 23: Recent Balance Sheet Trends
Recent Balance Sheet Trends Text Balance Sheet Notes (1) As defined in our Credit Facility, as amended. (2) Comtech’s fiscal year end is July 31. $ in 000s Apr. 30, Jul. 31, Oct. 31, Jan. 31, Apr. 30, 2019 2019 2019 2020 2020 Cash and Cash Equivalents 45,152$ 45,576$ 46,873$ 46,471$ 50,634$ Working
Slide 24: Market Data
Market Data Text General Market Information Nasdaq Symbol: CMTL Institutional Holders (2) : 227 52 - Week Range (1) : $11.70 - $37.79 Analyst Coverage: 6 Source: Nasdaq Analysts Notes (1) 52 - week range indicates the high and low closing prices during the period of May 1, 2019 through April 30, 202
Slide 25: Appendix II Reconciliation of GAAP to Non-GAAP Financial Measures
25 Appendix II Reconciliation of GAAP to Non - GAAP Financial Measures
Slide 26: Reconciliation of CMTL GAAP to Non-GAAP Financial Measures
Reconciliation of CMTL GAAP to Non - GAAP Financial Measures Text Adjusted EBITDA Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Reported net income (loss) 7,612$ 6,135$ 6,388$ 3,495$ (3,989)$ Income tax expense (benefit) 1,547 2,078 1,145 1,117 (759) Net interest expense & other 2,137 2,192 1,727 1,622 1,
Slide 27: Reconciliation of CMTL GAAP to Non-GAAP Financial Measures (cont'd)
Reconciliation of CMTL GAAP to Non - GAAP Financial Measures (cont’d) Text Adjusted EBITDA 2016 2017 2018 2019 YTD 2020 Reported net (loss) income (7,738)$ 15,827$ 29,769$ 25,041$ 5,894$ Income tax (benefit) expense (454) 9,654 (5,143) 3,869 1,503 Write-off of deferred financing costs - - - 3,217 -
Slide 28: Reconciliation of CMTL GAAP to Non-GAAP Financial Measures (cont'd)
Reconciliation of CMTL GAAP to Non - GAAP Financial Measures (cont’d) Text Earnings (Loss) per Diluted Share Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY19 Q1 2020 Q2 2020 Q3 2020 YTD Q3 2020 GAAP earnings (loss) per diluted share 0.14$ 0.32$ 0.31$ 0.25$ 1.03$ 0.26$ 0.14$ (0.16)$ 0.24$ Acquisition plan expens
Slide 29: Additional Information and Where to Find It
Additional Information and Where to Find It Text 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 solicitat
Slide 30: Ba ssite
= Mn Ba ssite
Gilat Satellite Networks — Midwest IDEAS Investor Conference 2020 on 6ix