-
Third Quarter Revenue Up 30.7% to a New Record of $123.3 million
-
Diluted EPS of $0.75; Adjusted diluted EPS of $0.76, up 63.1%
-
Raises Full Year Guidance for Revenue and Adjusted EBITDA
-
Declares a Special Dividend of $0.57 per Share, Record date of
November 26, 2014
MP MENASHE, Israel--(BUSINESS WIRE)--
Caesarstone Sdot-Yam Ltd. (NASDAQ:CSTE), a manufacturer of high quality
engineered quartz surfaces, today reported financial results for its
third quarter ended September 30, 2014.
Revenue in the third quarter of 2014 increased by 30.7% to $123.3
million compared to $94.3 million in the same quarter of the prior year.
On a constant currency basis, third quarter revenue growth was 31.1%
compared to the same period last year. Growth in revenue was broad-based
with strong continued increases in the United States, Australia and
Canada, up 47.8%, 36.3% and 27.2%, respectively, compared to the same
period in the prior year.
Yosef Shiran, Chief Executive Officer, commented, "We are pleased with
our results for the third quarter in the United States, which continues
to be our largest and fastest growing market, as well as in Australia
and Canada. We were happy to see success this quarter from our new
product, Calacatta Nuvo, which we recently launched in our key markets.
Strong demand for our product offering, along with improved
manufacturing throughput, contributed to our significant increase in
revenue, profitability and cash flow."
Gross margin in the third quarter was 43.7% compared to 44.5% in the
same period in the prior year. Significant favorable product mix and
scale were offset by strong growth from IKEA, which includes
lower-margin fabrication and installation revenue, as well as some
impact from foreign exchange fluctuations and, to a lesser extent, raw
material price increases.
Operating expenses in the third quarter were $22.7 million, or 18.4% of
revenue. Benefits of scale drove this improved performance in comparison
to the prior year's third quarter level of $21.1 million, or 22.4% of
revenue.
Operating income in the third quarter grew by 49.3% to $31.2 million, a
margin of 25.3%, compared to $20.9 million, a margin of 22.2%, in the
third quarter of 2013.
Adjusted EBITDA, which excludes share-based compensation expense, the
excess cost of acquired inventory and other non-recurring costs,
increased by 42.4% to $35.9 million in the third quarter, a margin of
29.1%. This compares to adjusted EBITDA of $25.2 million, a margin of
26.8% in the third quarter of the prior year.
Finance income in the third quarter was $1.0 million compared to finance
expense of $1.1 million during the same period in the prior year. The
change was predominantly related to the impact of foreign exchange rate
fluctuations.
The Company reported net income attributable to controlling interest for
the third quarter of 2014 of $26.5 million compared to $16.1 million in
the same quarter in the prior year. Diluted earnings per share for the
third quarter were $0.75 on 35.3 million shares. This compares to $0.46
per diluted ordinary share on 35.3 million shares in the prior year's
third quarter. On an adjusted basis, diluted earnings per share in the
third quarter were $0.76 compared to $0.47 in the prior year.
The Company's balance sheet as of September 30, 2014 remained solid with
cash and short term bank deposits of $77.7 million.
The Company also noted today that it remains on schedule with respect to
its capacity expansion project in Richmond Hill, Georgia for its sixth
and seventh lines to begin production in the second quarter and fourth
quarter of 2015, respectively. The Company also continues to prepare for
further manufacturing capacity at its Richmond Hill facility to serve
additional expected demand.
Dividend
The Company announced today it will pay a special dividend of $0.57 per
ordinary share to shareholders of record on November 26, 2014, payable
on December 23, 2014. The Company believes that, due to its strong cash
balance, recent operating cash flow and outlook for the business, this
dividend will not affect its ability to fund its growth strategy,
anticipated capital expenditures and working capital needs for the
foreseeable future. The dividend payment is subject to withholding tax
as discussed in the taxation section of the Company's annual report on
Form 20-F for the year ended December 31, 2013.
Guidance Increase
Following the strong third quarter, the Company today increased its
revenue guidance for the full year of 2014 to a new range of $445 to
$450 million as compared to its prior range of $435 million to $445
million.
Additionally, the Company raised its expected range of adjusted EBITDA
for the full year to $115 million to $118 million, compared to its prior
expected range of $112 million to $117 million.
Conference Call Details
Yosef Shiran, the Company's Chief Executive Officer, and Yair Averbuch,
the Company's Chief Financial Officer, will host a conference call
today, November 5, 2014, at 8:30 a.m. ET to discuss the results of the
third quarter ended September 30, 2014, followed by a question and
answer session for the investment community. A live webcast of the call
can be accessed at ir.caesarstone.com.
To access the call, dial toll-free 1-888-539-3696 or +1-719-457-2083
(international). Israeli participants can dial in at 1-80-924-5906. The
pass code is 7387896.
To listen to a telephonic replay of the conference call, dial toll-free
1-877-870-5176 or +1-858-384-5517 (international) and enter pass code
7387896. The replay will be available beginning at 11:30 a.m. ET on
November 5, 2014 and will last through 11:59 PM ETNovember 19, 2014.
About Caesarstone
Caesarstone manufactures high quality engineered quartz surfaces, which
are used in both residential and commercial buildings as countertops,
vanities, wall cladding, floors and other interior surfaces. The wide
variety of colors, styles, designs and textures of Caesarstone®
products, along with Caesarstone's inherent characteristics such as
hardness, non-porous, scratch and stain resistance and durability,
provide consumers with excellent surfaces for their internal spaces
which are highly competitive to granite, manufactured solid surfaces and
laminate, as well as to other engineered quartz surfaces. Caesarstone's
four collections of products — Classico, Supremo, Motivo and Concetto —
are available in over 50 countries around the world. For more
information about the Company, please visit our website www.caesarstone.com.
(CSTE-E)
Non-GAAP Financial Measures
The non-GAAP measures presented by the Company should be considered in
addition to, and not as a substitute for, comparable GAAP measures. A
reconciliation of GAAP net income attributable to controlling interest
to adjusted net income attributable to controlling interest and net
income to Adjusted EBITDA are provided in the schedules within this
release. The Company provides these non-GAAP financial measures because
it believes that they present a better measure of the Company's core
business and management uses the non-GAAP measures internally to
evaluate the Company's ongoing performance. Accordingly, the Company
believes that they are useful to investors in enhancing an understanding
of the Company's operating performance.
Forward-Looking Statements
Information provided in this press release may contain statements
relating to current expectations, estimates, forecasts and projections
about future events that are "forward-looking statements" as defined in
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements generally relate to the Company's plans,
objectives and expectations for future operations, including its
projected results of operations and the expected timing of expanding its
manufacturing facilities. These forward-looking statements are based
upon management's current estimates and projections of future results or
trends. Actual results may differ materially from those projected as a
result of certain risks and uncertainties. These factors include, but
are not limited to: the strength of the home renovation and construction
sectors; economic conditions within any of our key existing markets;
actions by our competitors; changes in raw material prices;
unpredictability of seasonal fluctuations in revenue; the outcome of
silicosis claims and the claim by our former quartz processor;
fluctuations in currency exchange rates; delays in manufacturing if our
suppliers are unable to supply raw materials; and other factors
discussed under the heading "Risk Factors" in the final prospectus for
our initial public offering and other documents filed with the
Securities and Exchange Commission. These forward-looking statements are
made only as of the date hereof, and the Company undertakes no
obligation to update or revise the forward-looking statements, whether
as a result of new information, future events or otherwise.
|
Caesarstone Sdot-Yam Ltd. and its subsidiaries
|
Consolidated balance sheets
|
|
|
|
|
|
|
|
|
|
As of
|
U.S. dollars in thousands
|
|
|
September 30,
2014
|
|
December 31,
2013
|
|
|
|
(Unaudited)
|
|
(Audited)
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
Cash and cash equivalents and Short term bank deposits
|
|
|
$
|
77,747
|
|
$
|
92,248
|
Trade receivables, Net
|
|
|
|
67,401
|
|
|
52,304
|
Other accounts receivable and prepaid expenses
|
|
|
|
28,477
|
|
|
22,853
|
Inventories
|
|
|
|
75,706
|
|
|
57,867
|
|
|
|
|
|
|
Total current assets
|
|
|
|
249,331
|
|
|
225,272
|
|
|
|
|
|
|
LONG-TERM ASSETS:
|
|
|
|
|
|
Severance pay fund
|
|
|
|
3,979
|
|
|
3,973
|
Long-term deposits and prepayments
|
|
|
|
815
|
|
|
1,603
|
|
|
|
|
|
|
Total long-term assets
|
|
|
|
4,794
|
|
|
5,576
|
|
|
|
|
|
|
PROPERTY, PLANT AND EQUIPMENT, NET
|
|
|
|
131,065
|
|
|
93,634
|
|
|
|
|
|
|
OTHER ASSETS
|
|
|
|
10,889
|
|
|
13,372
|
|
|
|
|
|
|
GOODWILL
|
|
|
|
39,134
|
|
|
39,702
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
435,213
|
|
$
|
377,556
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
|
Short-term bank credit
|
|
|
$
|
1,386
|
|
$
|
5,454
|
Short-term loans from related parties
|
|
|
|
2,883
|
|
|
1,194
|
Trade payables
|
|
|
|
53,713
|
|
|
50,624
|
Account payables to related parties
|
|
|
|
1,519
|
|
|
1,408
|
Accrued expenses and other liabilities
|
|
|
|
23,779
|
|
|
20,890
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
83,280
|
|
|
79,570
|
|
|
|
|
|
|
LONG-TERM LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
|
Long-term loan and financing leaseback from a related party
|
|
|
|
9,529
|
|
|
12,342
|
Accrued severance pay
|
|
|
|
4,545
|
|
|
4,472
|
Other long-term liabilities
|
|
|
|
1,065
|
|
|
1,704
|
Deferred tax liabilities, net
|
|
|
|
4,465
|
|
|
6,245
|
Share based payment
|
|
|
|
974
|
|
|
-
|
|
|
|
|
|
|
Total long-term liabilities
|
|
|
|
20,578
|
|
|
24,763
|
|
|
|
|
|
|
REDEEMABLE NON-CONTROLLING INTEREST
|
|
|
|
8,854
|
|
|
7,624
|
|
|
|
|
|
|
COMMITMENTS AND CONTINGENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
|
Ordinary shares
|
|
|
|
366
|
|
|
364
|
Additional paid-in capital
|
|
|
|
139,802
|
|
|
138,757
|
Accumulated other comprehensive income
|
|
|
|
1,512
|
|
|
3,680
|
Retained earnings
|
|
|
|
180,821
|
|
|
122,798
|
|
|
|
|
|
|
Total equity
|
|
|
|
322,501
|
|
|
265,599
|
|
|
|
|
|
|
Total liabilities and equity
|
|
|
$
|
435,213
|
|
$
|
377,556
|
|
|
|
|
|
|
|
|
|
Caesarstone Sdot-Yam Ltd. and its subsidiaries
|
Consolidated statements of income (Unaudited)
|
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
U.S. dollars in thousands (except per share data)
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
|
123,284
|
|
|
$
|
94,320
|
|
|
$
|
333,762
|
|
|
$
|
259,741
|
|
Cost of revenues
|
|
|
|
69,358
|
|
|
|
52,322
|
|
|
|
193,027
|
|
|
|
139,206
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
53,926
|
|
|
|
41,998
|
|
|
|
140,735
|
|
|
|
120,535
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
|
616
|
|
|
|
422
|
|
|
|
1,929
|
|
|
|
1,448
|
|
Marketing and selling
|
|
|
|
13,540
|
|
|
|
12,863
|
|
|
|
41,107
|
|
|
|
38,333
|
|
General and administrative
|
|
|
|
8,542
|
|
|
|
7,796
|
|
|
|
25,647
|
|
|
|
24,524
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
|
22,698
|
|
|
|
21,081
|
|
|
|
68,683
|
|
|
|
64,305
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
31,228
|
|
|
|
20,917
|
|
|
|
72,052
|
|
|
|
56,230
|
|
Finance expenses (income), net
|
|
|
|
(1,029
|
)
|
|
|
1,113
|
|
|
|
1,956
|
|
|
|
898
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes on income
|
|
|
|
32,257
|
|
|
|
19,804
|
|
|
|
70,096
|
|
|
|
55,332
|
|
Taxes on income
|
|
|
|
4,838
|
|
|
|
3,343
|
|
|
|
10,428
|
|
|
|
7,996
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
27,419
|
|
|
$
|
16,461
|
|
|
$
|
59,668
|
|
|
$
|
47,336
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to non-controlling interest
|
|
|
|
(874
|
)
|
|
|
(358
|
)
|
|
|
(1,647
|
)
|
|
|
(997
|
)
|
Net income attributable to controlling interest
|
|
|
$
|
26,545
|
|
|
$
|
16,103
|
|
|
$
|
58,021
|
|
|
$
|
46,339
|
|
Basic net income per ordinary share
|
|
|
$
|
0.76
|
|
|
$
|
0.46
|
|
|
$
|
1.66
|
|
|
$
|
1.34
|
|
Diluted net income per ordinary share
|
|
|
$
|
0.75
|
|
|
$
|
0.46
|
|
|
$
|
1.64
|
|
|
$
|
1.32
|
|
Weighted average number of ordinary shares used in computing basic
income per ordinary share
|
|
|
|
34,999,925
|
|
|
|
34,732,961
|
|
|
|
34,875,423
|
|
|
|
34,642,246
|
|
Weighted average number of ordinary shares used in computing diluted
income per ordinary share
|
|
|
|
35,333,542
|
|
|
|
35,322,419
|
|
|
|
35,379,125
|
|
|
|
35,148,613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Caesarstone Sdot-Yam Ltd. and its subsidiaries
|
Condensed Consolidated statements of cash flows on a Non GAAP
Basis (Unaudited)
|
|
|
|
|
|
|
|
Nine months ended
September 30,
|
U.S. dollars in thousands
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
59,668
|
|
|
$
|
47,336
|
|
Adjustments required to reconcile net income to net cash provided by
operating activities:
|
|
|
Depreciation and amortization
|
|
|
12,740
|
|
|
|
11,100
|
|
Share-based compensation expense
|
|
|
1,942
|
|
|
|
1,980
|
|
Accrued severance pay, net
|
|
|
67
|
|
|
|
95
|
|
Changes in deferred tax, net
|
|
|
(2,400
|
)
|
|
|
1,396
|
|
Capital gains
|
|
|
-
|
|
|
|
(22
|
)
|
Foreign currency translation gains
|
|
|
-
|
|
|
|
(132
|
)
|
Increase in trade receivables
|
|
|
(15,097
|
)
|
|
|
(10,361
|
)
|
Increase in other accounts receivable and prepaid expenses
|
|
|
(5,004
|
)
|
|
|
(8,203
|
)
|
Increase in inventories
|
|
|
(17,839
|
)
|
|
|
(3,157
|
)
|
Increase (decrease) in trade payables
|
|
|
(2,163
|
)
|
|
|
8,572
|
|
Increase (decrease) in warranty provision
|
|
|
(503
|
)
|
|
|
359
|
|
Increase in accrued expenses and other liabilities including related
parties
|
|
|
1,638
|
|
|
|
6,509
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
33,049
|
|
|
|
55,472
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Settlement of contingent liability in connection with Prema Asia
acquisition
|
|
|
(150
|
)
|
|
|
-
|
|
Purchase of property, plant and equipment
|
|
|
(42,429
|
)
|
|
|
(17,424
|
)
|
Decrease (increase) in long term deposits and prepaid expenses
|
|
|
788
|
|
|
|
(396
|
)
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
(41,791
|
)
|
|
|
(17,820
|
)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
Repayment of long-term loans
|
|
|
-
|
|
|
|
(5,372
|
)
|
Short-term bank credit and loans, net
|
|
|
(4,068
|
)
|
|
|
1,932
|
|
Repayment of a financing leaseback related to Bar-Lev transaction
|
|
|
(899
|
)
|
|
|
(854
|
)
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
(4,967
|
)
|
|
|
(4,294
|
)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate differences on cash and cash equivalents
|
|
|
(792
|
)
|
|
|
(1,145
|
)
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents and Short term bank
deposits
|
|
|
(14,501
|
)
|
|
|
32,213
|
|
Cash and cash equivalents Short term bank deposits at beginning of
the period
|
|
|
92,248
|
|
|
|
72,733
|
|
|
|
|
|
|
Cash and cash equivalents and Short term bank deposits at end of the
period
|
|
$
|
77,747
|
|
|
$
|
104,946
|
|
|
|
|
|
|
|
|
|
|
|
Non - cash investing:
|
|
|
|
|
Purchase of fixed assets with credit from suppliers
|
|
|
5,252
|
|
|
|
6,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Caesarstone Sdot-Yam Ltd. and its subsidiaries (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
Nine months ended
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
U.S. dollars in thousands
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
27,419
|
|
|
$
|
16,461
|
|
|
$
|
59,668
|
|
|
$
|
47,336
|
|
|
Finance expenses (income), net
|
|
|
|
(1,029
|
)
|
|
|
1,113
|
|
|
|
1,956
|
|
|
|
898
|
|
|
Taxes on income
|
|
|
|
4,838
|
|
|
|
3,343
|
|
|
|
10,428
|
|
|
|
7,996
|
|
|
Depreciation and amortization
|
|
|
|
4,196
|
|
|
|
3,803
|
|
|
|
12,740
|
|
|
|
11,100
|
|
|
Excess cost of acquired inventory (a)
|
|
|
|
123
|
|
|
|
31
|
|
|
|
231
|
|
|
|
173
|
|
|
Share-based compensation expense (b)
|
|
|
|
524
|
|
|
|
480
|
|
|
|
1,942
|
|
|
|
1,980
|
|
|
Inventory - change of estimate (c)
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
|
(3,458
|
)
|
|
Follow-on offering expenses (d)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
657
|
|
|
|
1,470
|
|
|
Provision for employees fringe benefits (e)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
939
|
|
|
|
-
|
|
|
Settlement with the tax authorities (f)
|
|
|
|
(134
|
)
|
|
|
-
|
|
|
|
(134
|
)
|
|
|
-
|
|
|
Adjusted EBITDA (Non-GAAP)
|
|
|
$
|
35,937
|
|
|
$
|
25,231
|
|
|
$
|
88,427
|
|
|
$
|
67,495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Consists of charges to cost of goods sold for the difference
between the higher carrying cost of the inventory of two of the
Company's subsidiaries- Caesarstone USA's inventory at the time of
its acquisition and inventory that was purchased from its
distributor and Caesarstone Australia Pty Limited's inventory that
was purchased from its distributor, and the standard cost of the
Company's inventory- which adversely impacts the Company's gross
margins until such inventory is sold. The majority of the
inventory acquired from Caesarstone USA was sold in 2011, and the
majority of the inventory acquired from the Australian distributor
was sold in 2012.
|
|
|
|
|
(b)
|
In 2013, share-based compensation consists of expenses related to
the stock options granted to employees of the Company. In 2014,
share-based compensation consists primarily of expenses related to
the stock options granted to employees of the Company, as well as
expenses related to share-based rights granted during the period.
|
|
|
(c)
|
Relates to a change in estimate for the value of inventory following
the implementation of the Company's new ERP system in April 2013.
|
(d)
|
In 2013, consists of direct expenses related to a follow-on
offering that closed in April 2013, including a bonus paid by the
Company's former shareholder, Tene, to certain of its employees
that under US GAAP the Company is required to expense against
paid-in capital. In 2014, consists of direct expenses related to a
follow-on offering that closed in June 2014.
|
|
|
(e)
|
Relates to an adjustment of provision for taxable employee fringe
benefits as a result of a settlement with the Israel Tax Authority
and with the National Insurance Institute of Israel.
|
|
(f)
|
Relates to a refund of Israeli value added tax (VAT) associated with
a bad debt from 2007
|
|
|
|
|
|
Caesarstone Sdot-Yam Ltd. and its subsidiaries (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
Nine months ended
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
U.S. dollars in thousands
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net income attributable to controlling interest
to adjusted net income attributable to controlling interest:
|
|
|
|
|
Net income attributable to controlling interest
|
|
|
$
|
26,545
|
|
|
$
|
16,103
|
|
|
$
|
58,021
|
|
|
$
|
46,339
|
|
|
Excess cost of acquired inventory (a)
|
|
|
|
123
|
|
|
|
31
|
|
|
|
231
|
|
|
|
173
|
|
|
Share-based compensation expense (b)
|
|
|
|
524
|
|
|
|
480
|
|
|
|
1,942
|
|
|
|
1,980
|
|
|
Inventory - change of estimate (c)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,458
|
)
|
|
Follow-on offering expenses (d)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
657
|
|
|
|
1,470
|
|
|
Provision for employees fringe benefits (e)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
939
|
|
|
|
-
|
|
|
Settlement with the tax authorities (f)
|
|
|
|
(134
|
)
|
|
|
-
|
|
|
|
(134
|
)
|
|
|
-
|
|
|
Tax adjustment (g)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
342
|
|
|
|
-
|
|
|
Total adjustments
|
|
|
|
513
|
|
|
|
511
|
|
|
|
3,977
|
|
|
|
165
|
|
|
Less tax on non-tax adjustments (h)
|
|
|
|
90
|
|
|
|
69
|
|
|
|
523
|
|
|
|
24
|
|
|
Total adjustments after tax
|
|
|
|
423
|
|
|
|
442
|
|
|
|
3,454
|
|
|
|
141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income attributable to controlling interest (Non-GAAP)
|
|
|
$
|
26,968
|
|
|
$
|
16,545
|
|
|
$
|
61,475
|
|
|
$
|
46,480
|
|
|
Adjusted diluted EPS (i)
|
|
|
$
|
0.76
|
|
|
$
|
0.47
|
|
|
$
|
1.74
|
|
|
$
|
1.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Consists of charges to cost of goods sold for the difference between
the higher carrying cost of the inventory of two of the Company's
subsidiaries- Caesarstone USA's inventory at the time of its
acquisition and inventory that was purchased from its distributor
and Caesarstone Australia Pty Limited's inventory that was purchased
from its distributor, and the standard cost of the Company's
inventory- which adversely impacts the Company's gross margins until
such inventory is sold. The majority of the inventory acquired from
Caesarstone USA was sold in 2011, and the majority of the inventory
acquired from the Australian distributor was sold in 2012.
|
|
|
|
|
(b)
|
In 2013, share-based compensation consists of expenses related to
the stock options granted to employees of the Company. In 2014,
share-based compensation consists primarily of expenses related to
the stock options granted to employees of the Company, as well as
expenses related to share-based rights granted during the period.
|
|
|
(c)
|
Relates to a change in estimate for the value of inventory following
the implementation of the Company's new ERP system in April 2013.
|
(d)
|
In 2013, consists of direct expenses related to a follow
on-offering that closed in April 2013, including a bonus paid by
the Company's former shareholder, Tene, to certain of its
employees that under US GAAP the Company is required to expense
against paid-in capital. In 2014, consists of direct expenses
related to a follow on offering that closed in June 2014.
|
|
|
(e)
|
Relates to an adjustment of provision for taxable employee fringe
benefits as a result of a settlement with the Israel Tax Authority
and with the National Insurance Institute of Israel.
|
|
(f)
|
Relates to a refund of Israeli value added tax (VAT) associated with
a bad debt from 2007
|
(g)
|
Tax adjustment as a result of tax settlement with the Israeli tax
authorities.
|
(h)
|
The tax adjustments for the three and nine months ended September
30, 2014 and 2013 were based on the effective tax rate (excluding
adjustments to the tax line item) for these periods, respectively.
|
|
(i)
|
In calculating adjusted diluted (non-GAAP) EPS, the diluted weighted
average number of shares outstanding excludes the effects of
stock-based compensation expenses in accordance with FASB ASC 718.
|
|
|
|
|
Caesarstone Sdot-Yam Ltd. and its subsidiaries
|
Geographic breakdown of revenues by region (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
Nine months ended
|
|
|
|
September 30,
|
|
|
September 30,
|
U.S. dollars in thousands
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USA |
|
|
|
50,463
|
|
|
34,144
|
|
|
|
135,984
|
|
|
88,740
|
Australia |
|
|
|
30,791
|
|
|
22,584
|
|
|
|
79,554
|
|
|
65,579
|
Canada |
|
|
|
16,937
|
|
|
13,312
|
|
|
|
44,056
|
|
|
37,156
|
Israel |
|
|
|
11,228
|
|
|
10,947
|
|
|
|
32,411
|
|
|
31,478
|
Europe |
|
|
|
6,151
|
|
|
5,962
|
|
|
|
18,129
|
|
|
16,351
|
Rest of World
|
|
|
|
7,714
|
|
|
7,371
|
|
|
|
23,628
|
|
|
20,437
|
|
|
|
$
|
123,284
|
|
$
|
94,320
|
|
|
$
|
333,762
|
|
$
|
259,741
|
Investor Relations:
ICR, Inc.
James Palczynski,
Partner, +1-203-682-8229
Source: Caesarstone Sdot-Yam Ltd.
News Provided by Acquire Media