Gilat Satellite Networks Ltd.
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(Registrant)
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Dated February 19, 2020
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By: /s/ Yael Shofar
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Yael Shofar
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General Counsel
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•
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Revenues for Q4 2019 were $78.3 million compared to $69.7 million for Q4 2018. Full year 2019 revenues totaled $263.5 million versus $266.4 million in 2018.
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•
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Continued strong profitability:
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o
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Q4 2019 GAAP operating income increased to $9.2 million from $7.5 million in Q4 2018. Non-GAAP operating income in Q4 2019 totaled $9.9 million, compared to $7.9 million in Q4 2018. Full
year 2019 GAAP operating income totaled $25.6 million versus $21.3 million for 2018. Non-GAAP operating income for full year 2019 of increased to $29.2 million from $25.1 million in 2018.
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o
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Q4 2019 GAAP net income totaled $24.0 million, or $0.43 per diluted share, including a tax benefit of $15.5 million due to the first-time recording of deferred tax assets on NOLs mainly in
Israel. GAAP net income was $5.3 million, or $0.09 per diluted share, in Q4 2018. Non-GAAP Q4 2019 net income increased to $9.1 million, from $5.7 million in Q4 2018.
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o
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Full year 2019 GAAP net income totaled $36.5 million, or $0.65 per diluted share, including the Q4 tax benefit. Non-GAAP net income for full year 2019 increased to $24.7 million, or $0.44
per diluted share, compared with $18.2 million, or $0.32 per diluted share in 2018.
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o
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Q4 2019 Adjusted EBITDA was $13.1 million, compared to $10.5 million in Q4 2018. Full Year 2019 Adjusted EBITDA was $40.2 million versus $35.2 million for full year 2018.
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o
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Gilat's tail-mount Ku-band antenna project, previously announced on August 5th, 2019, was discontinued. Gilat will refocus on other opportunities that the significant growth in
the IFC terminal market offers.
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GILAT SATELLITE NETWORKS LTD.
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CONSOLIDATED STATEMENTS OF OPERATIONS
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U.S. dollars in thousands (except share and per share data)
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||||||||||||||||
Twelve months ended
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Three months ended
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|||||||||||||||
December 31,
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December 31,
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|||||||||||||||
2019
|
2018
|
2019
|
2018
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|||||||||||||
Unaudited
|
Audited
|
Unaudited
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||||||||||||||
Revenues
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$
|
263,492
|
$
|
266,391
|
$
|
78,314
|
$
|
69,729
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||||||||
Cost of revenues
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167,615
|
172,354
|
51,246
|
43,715
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||||||||||||
Gross profit
|
95,877
|
94,037
|
27,068
|
26,014
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||||||||||||
Research and development expenses
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32,208
|
34,449
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8,120
|
9,169
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||||||||||||
Less - grants
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2,024
|
1,426
|
414
|
222
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||||||||||||
Research and development expenses, net
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30,184
|
33,023
|
7,706
|
8,947
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||||||||||||
Selling and marketing expenses
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21,488
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22,706
|
5,156
|
5,497
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||||||||||||
General and administrative expenses
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18,633
|
17,024
|
4,967
|
4,061
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||||||||||||
Total operating expenses
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70,305
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72,753
|
17,829
|
18,505
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||||||||||||
Operating income
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25,572
|
21,284
|
9,239
|
7,509
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||||||||||||
Financial expenses, net
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2,617
|
4,298
|
677
|
1,132
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||||||||||||
Income before taxes on income
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22,955
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16,986
|
8,562
|
6,377
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||||||||||||
Taxes on income (tax benefit)
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(13,583
|
)
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(1,423
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)
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(15,459
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)
|
1,082
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Net income
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$
|
36,538
|
$
|
18,409
|
$
|
24,021
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$
|
5,295
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||||||||
Basic earnings per share
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$
|
0.66
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$
|
0.34
|
$
|
0.43
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$
|
0.10
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||||||||
Diluted earnings per share
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$
|
0.65
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$
|
0.33
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$
|
0.43
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$
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0.09
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Weighted average number of shares used in computing earnings per share
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||||||||||||||||
Basic
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55,368,703
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54,927,272
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55,485,961
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55,134,977
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||||||||||||
Diluted
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56,030,976
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55,752,642
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56,034,744
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55,962,447
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Twelve months ended
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Three months ended
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|||||||||||||||
December 31,
|
December 31,
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|||||||||||||||
2019
|
2018
|
2019
|
2018
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|||||||||||||
Unaudited
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Unaudited
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|||||||||||||||
Fixed Networks
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$
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127,265
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$
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144,208
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$
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33,161
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$
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35,421
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Mobility Solutions
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104,665
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97,180
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34,050
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29,555
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Terrestrial Infrastructure Projects
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31,562
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25,003
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11,103
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4,753
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||||||||||||
Total revenue
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$
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263,492
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$
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266,391
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$
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78,314
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$
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69,729
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GILAT SATELLITE NETWORKS LTD.
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CONSOLIDATED STATEMENTS OF CASH FLOWS
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U.S. dollars in thousands
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||||||||||||||||
Twelve months ended
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Three months ended
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|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Unaudited
|
Audited
|
Unaudited
|
||||||||||||||
Cash flows from operating activities:
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||||||||||||||||
Net income
|
$
|
36,538
|
$
|
18,409
|
$
|
24,021
|
$
|
5,295
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||||||||
Adjustments required to reconcile net income to net cash provided by (used in) operating activities:
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||||||||||||||||
Depreciation and amortization
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10,978
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13,149
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2,730
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2,944
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||||||||||||
Capital loss from disposal of property and equipment
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461
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761
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461
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665
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||||||||||||
Stock-based compensation of options
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2,135
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1,006
|
405
|
276
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||||||||||||
Accrued severance pay, net
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361
|
57
|
16
|
12
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||||||||||||
Exchange rate differences on long-term loans
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(12
|
)
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(34
|
)
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(12
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)
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(10
|
)
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Deferred income taxes, net
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(12,555
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)
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(3,672
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)
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(13,636
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)
|
744
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Decrease (increase) in trade receivables, net
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(1,323
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)
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2,061
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(1,464
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)
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(9,355
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)
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Decrease (increase) in contract assets
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24,062
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11,029
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(1,346
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)
|
236
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|||||||||||
Decrease (increase) in other assets (including short-term, long-term and deferred charges)
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(817
|
)
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(4,917
|
)
|
603
|
1,007
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||||||||||
Decrease (increase) in inventories
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(8,076
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)
|
5,257
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(391
|
)
|
4,423
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Increase (decrease) in trade payables
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(3,884
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)
|
(8,926
|
)
|
631
|
3,323
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||||||||||
Decrease in accrued expenses
|
(11,671
|
)
|
(7,206
|
)
|
(2,767
|
)
|
(2,283
|
)
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||||||||
Increase (decrease) in advance from customers
|
1,112
|
12,433
|
|
10,019
|
(2,703
|
)
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||||||||||
Decrease in advances from customers, held by trustees
|
-
|
(1,478
|
)
|
-
|
-
|
|||||||||||
Decrease (increase) in other current and non current liabilities
|
(2,527
|
)
|
(5,912
|
)
|
765
|
|
(584
|
)
|
||||||||
Net cash provided by operating activities
|
34,782
|
32,017
|
20,035
|
3,990
|
||||||||||||
Cash flows from investing activities:
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||||||||||||||||
Purchase of property and equipment
|
(7,982
|
)
|
(10,759
|
)
|
(2,333
|
)
|
(2,854
|
)
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||||||||
Net cash used in investing activities
|
(7,982
|
)
|
(10,759
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)
|
(2,333
|
)
|
(2,854
|
)
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||||||||
Cash flows from financing activities:
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||||||||||||||||
Exercise of stock options
|
375
|
2,149
|
-
|
511
|
||||||||||||
Repayment of long-term loans
|
(4,447
|
)
|
(4,470
|
)
|
(94
|
)
|
(114
|
)
|
||||||||
Dividend payment
|
(24,864
|
)
|
-
|
-
|
-
|
|||||||||||
Net cash provided by (used in) financing activities
|
(28,936
|
)
|
(2,321
|
)
|
(94
|
)
|
397
|
|||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(99
|
)
|
(1,490
|
)
|
136
|
(652
|
)
|
|||||||||
Increase (decrease) in cash, cash equivalents and restricted cash
|
(2,235
|
)
|
17,447
|
17,744
|
881
|
|||||||||||
Cash, cash equivalents and restricted cash at the beginning of the period
|
104,204
|
86,757
|
84,225
|
103,323
|
||||||||||||
Cash, cash equivalents and restricted cash at the end of the period
|
$
|
101,969
|
$
|
104,204
|
$
|
101,969
|
$
|
104,204
|