- Revenues of $147.7 million; Down 1.9% on a Constant Currency Basis
- Net Income of $10.6 Million and Diluted EPS of $0.31
- Adjusted EBITDA of $21.6 Million
- Revises Full Year 2018 Outlook on Softer than Anticipated Second
Half Revenues
- Declares a Third Quarter Dividend of $0.15 Per Share
MP MENASHE, Israel--(BUSINESS WIRE)--Nov. 7, 2018--
Caesarstone Ltd. (NASDAQ:CSTE), a leading global developer and
manufacturer of high quality engineered quartz surfaces, today reported
financial results for its third quarter ended September 30, 2018.
Yuval Dagim, Chief Executive Officer, commented, “Our third quarter and
year-to-date results do not reflect the significant potential of
Caesarstone’s global market leading position and innovative product
offering. We are taking steps to create a more seamless global operating
model and bring the right talent to our organization at all levels. We
are working to enhance our go-to-market approach by streamlining
processes, time to market and decision-making processes. These factors,
along with our deeper emphasis on health, safety and discipline, are
critical to the ongoing evolution of our Company’s culture. Moving into
2019, we expect to better capitalize on market opportunities as we
implement a steady stream of best practices and refine our strategy.”
Ophir Yakovian, Chief Financial Officer, added, “We delivered better
than expected third quarter gross margin and Adjusted EBITDA despite
lower than expected revenue. Third quarter revenues were mainly impacted
by currency headwinds and challenging market conditions, which we expect
to continue into the fourth quarter. While we are encouraged by the
long-term benefit of recent preliminary tariffs on U.S. imports of
quartz countertops from China, we are cautious on the near-term impact
of the tariff given a surge in 2018 pre-buy activity that may keep U.S.
inventory levels temporarily elevated, along with the undetermined
effect on supply outside the U.S. Therefore, we are moderating our
expectations for the full year 2018 and focusing on a range of
improvements to better position our Company for success in 2019.”
Revenue in the third quarter of 2018 was $147.7 million, down 4.5%
compared to $154.7 million in the same period in the prior year. On a
constant currency basis, third quarter revenue decreased by 1.9%
year-over-year with stable performance in the U.S. and sales improvement
in Canada and Europe more than offset by softer performance in Israel,
Australia and Rest of the World.
Gross margin in the third quarter was 29.6% compared to 32.1% in the
same period in the prior year. The decrease in margin was expected and
primarily reflects foreign exchange headwinds, increased product
complexity and other manufacturing challenges in Israel, along with
inventory and logistics inefficiencies and higher raw material costs.
These factors were partly offset by a significant improvement in
manufacturing performance at the Company’s U.S. manufacturing facility.
Operating expenses in the third quarter were $29.7 million, or 20.1% of
revenue, compared to $38.7 million, or 25.0% of revenue, in the same
quarter last year. Excluding legal settlements and loss contingencies,
operating expenses decreased to 20.3% of revenue, compared to 21.3% in
the prior year third quarter mainly due to lower marketing and sales
expenses.
Operating income in the third quarter was $14.0 million, a margin of
9.5%, compared to $11.0 million, a margin of 7.1%, in the same quarter
last year.
Adjusted EBITDA, which excludes expenses for share-based compensation,
legal settlements and loss contingencies and for non-recurring items,
was $21.6 million in the third quarter of 2018, representing a margin of
14.6%. This compares to adjusted EBITDA of $25.6 million in the prior
year’s third quarter, representing a margin of 16.5%. This
year-over-year margin comparison primarily reflects the lower gross
margin partly offset by lower operating expenses, as described above.
Finance expenses in the third quarter were $1.6 million, essentially
flat compared to the same period in the prior year.
The Company reported net income attributable to controlling interest for
the third quarter of 2018 of $10.5 million compared to income of $6.9
million in the same quarter in the prior year. Diluted net income per
share for the third quarter was $0.31 compared to $0.19 in the prior
year's third quarter. Adjusted diluted net income per share for the
third quarter was $0.31 on 34.5 million shares compared to $0.37 on 34.5
million shares in prior year third quarter.
The Company's balance sheet as of September 30, 2018 remained strong,
including cash, cash equivalents and short-term bank deposits of $85.3
million.
Dividend
The Company declared a dividend of $0.15 per share for the third quarter
of 2018 to be paid on December 12, 2018 to shareholders of record as of
November 21, 2018. The dividend payment is subject to withholding tax of
20%.
Outlook
The Company now expects 2018 revenue to be in the range of $572 million
to $578 million, primarily attributable to adverse currency exchange
impacts, softer than anticipated market conditions and a more
competitive environment in the second half of 2018. Based on the revised
revenue outlook, the Company now expects adjusted EBITDA in 2018 to be
at the low end of its previously provided range of $74 million to $82
million, with moderated revenue expectations partly offset by
cost-saving actions.
Conference Call Details
The Company will host a conference call today at 8:30 a.m. ET to discuss
the results, 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 1-800-263-0877 or
+1-646-828-8143 (international). The toll-free Israeli number is 1 80
921 2883. Upon dialing in, please request to join the Caesarstone Third
Quarter Earnings Call.
To listen to a telephonic replay of the conference call, dial toll-free
1-844-512-2921 or +1-412-317-6671 (international) and enter pass code
3980796. The replay will be available beginning at 11:30 a.m. ET on
Wednesday, November 7, 2018 and will last through 11:59 p.m. ET on
Wednesday, November 14, 2018.
About Caesarstone
Caesarstone designs, develops and 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,
Supernatural, Metropolitan 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, particularly
polymer resins and pigments; fluctuations in currency exchange rates;
the success of our expansion efforts in the United States; the outcome
of silicosis claims and other claims; unpredictability of seasonal
fluctuations in revenues; delays in manufacturing and other factors
discussed under the heading "Risk Factors" in our most recent annual
report on Form 20-F 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 Ltd. and its subsidiaries
Condensed consolidated balance sheets
|
|
|
|
|
|
|
|
As of |
|
|
September 30, |
|
December 31, |
U.S. dollars in thousands |
|
2018 |
|
2017 |
|
|
(Unaudited) |
|
(Audited) |
ASSETS
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents and short-term bank deposits
|
|
$
|
85,291
|
|
|
$
|
138,707
|
|
Trade receivables, net
|
|
|
78,980
|
|
|
|
73,267
|
|
Other accounts receivable and prepaid expenses
|
|
|
44,462
|
|
|
|
33,053
|
|
Inventories
|
|
|
158,786
|
|
|
|
132,940
|
|
|
|
|
|
|
Total current assets
|
|
|
367,519
|
|
|
|
377,967
|
|
|
|
|
|
|
LONG-TERM ASSETS:
|
|
|
|
|
|
|
|
|
|
Severance pay fund
|
|
|
3,815
|
|
|
|
3,887
|
|
Other long-term receivables
|
|
|
5,622
|
|
|
|
8,502
|
|
Deferred tax assets, net
|
|
|
6,275
|
|
|
|
3,965
|
|
Long-term deposits and prepaid expenses
|
|
|
2,851
|
|
|
|
2,743
|
|
Property, plant and equipment, net
|
|
|
210,179
|
|
|
|
216,653
|
|
Other intangibles assets
|
|
|
517
|
|
|
|
2,241
|
|
Goodwill
|
|
|
35,670
|
|
|
|
37,029
|
|
|
|
|
|
|
Total long-term assets
|
|
|
264,929
|
|
|
|
275,020
|
|
|
|
|
|
|
Total assets
|
|
$
|
632,448
|
|
|
$
|
652,987
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
|
Short-term bank credit
|
|
$
|
2,556
|
|
|
$
|
4,191
|
|
Trade payables
|
|
|
51,698
|
|
|
|
64,021
|
|
Related party and other loan
|
|
|
3,204
|
|
|
|
3,463
|
|
Short term legal settlements and loss contingencies
|
|
|
13,769
|
|
|
|
25,782
|
|
Accrued expenses and other liabilities
|
|
|
30,801
|
|
|
|
30,000
|
|
|
|
|
|
|
Total current liabilities
|
|
|
102,028
|
|
|
|
127,457
|
|
|
|
|
|
|
LONG-TERM LIABILITIES:
|
|
|
|
|
|
|
|
|
|
Long-term loan and financing leaseback from a related party
|
|
|
7,491
|
|
|
|
8,336
|
|
Legal settlements and loss contingencies long-term
|
|
|
25,004
|
|
|
|
23,454
|
|
Accrued severance pay
|
|
|
4,991
|
|
|
|
5,556
|
|
Long-term warranty provision
|
|
|
1,240
|
|
|
|
1,151
|
|
Deferred tax liabilities, net
|
|
|
-
|
|
|
|
657
|
|
|
|
|
|
|
Total long-term liabilities
|
|
|
38,726
|
|
|
|
39,154
|
|
|
|
|
|
|
REDEEMABLE NON-CONTROLLING INTEREST
|
|
|
15,275
|
|
|
|
16,481
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
|
|
|
|
|
Ordinary shares
|
|
|
371
|
|
|
|
371
|
|
Treasury shares - at cost
|
|
|
(39,430
|
)
|
|
|
(39,430
|
)
|
Additional paid-in capital
|
|
|
152,834
|
|
|
|
151,880
|
|
Accumulated other comprehensive (loss) income
|
|
|
(1,773
|
)
|
|
|
683
|
|
Retained earnings
|
|
|
364,417
|
|
|
|
356,391
|
|
|
|
|
|
|
Total equity
|
|
|
476,419
|
|
|
|
469,895
|
|
|
|
|
|
|
Total liabilities and equity
|
|
$
|
632,448
|
|
|
$
|
652,987
|
|
|
|
|
|
|
|
|
|
|
Caesarstone Ltd. and its subsidiaries
Condensed consolidated statements of income
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|
|
|
September 30, |
|
September 30, |
U.S. dollars in thousands (except per share data) |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
|
147,689
|
|
|
$
|
154,682
|
|
|
$
|
432,990
|
|
|
$
|
440,007
|
|
Cost of revenues
|
|
|
|
103,918
|
|
|
|
104,964
|
|
|
|
306,646
|
|
|
|
289,127
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
43,771
|
|
|
|
49,718
|
|
|
|
126,344
|
|
|
|
150,880
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
|
863
|
|
|
|
1,099
|
|
|
|
2,504
|
|
|
|
2,913
|
|
Marketing and selling
|
|
|
|
18,584
|
|
|
|
20,600
|
|
|
|
57,193
|
|
|
|
61,374
|
|
General and administrative
|
|
|
|
10,466
|
|
|
|
11,288
|
|
|
|
32,914
|
|
|
|
33,320
|
|
Legal settlements and loss contingencies, net
|
|
|
|
(172
|
)
|
|
|
5,727
|
|
|
|
5,001
|
|
|
|
7,818
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
|
29,741
|
|
|
|
38,714
|
|
|
|
97,612
|
|
|
|
105,425
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
14,030
|
|
|
|
11,004
|
|
|
|
28,732
|
|
|
|
45,455
|
|
Finance expenses, net
|
|
|
|
1,551
|
|
|
|
1,594
|
|
|
|
1,542
|
|
|
|
4,509
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes on income
|
|
|
|
12,479
|
|
|
|
9,410
|
|
|
|
27,190
|
|
|
|
40,946
|
|
Taxes on income
|
|
|
|
1,892
|
|
|
|
1,968
|
|
|
|
4,106
|
|
|
|
7,367
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
10,587
|
|
|
$
|
7,442
|
|
|
$
|
23,084
|
|
|
$
|
33,579
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to non-controlling interest
|
|
|
|
(51
|
)
|
|
|
(499
|
)
|
|
|
(45
|
)
|
|
|
(992
|
)
|
Net income attributable to controlling interest
|
|
|
$
|
10,536
|
|
|
$
|
6,943
|
|
|
$
|
23,039
|
|
|
$
|
32,587
|
|
Basic net income per ordinary share (*)
|
|
|
$
|
0.31
|
|
|
$
|
0.19
|
|
|
$
|
0.67
|
|
|
$
|
0.92
|
|
Diluted net income per ordinary share (*)
|
|
|
$
|
0.31
|
|
|
$
|
0.19
|
|
|
$
|
0.67
|
|
|
$
|
0.92
|
|
Weighted average number of ordinary shares used in computing basic
income per ordinary share
|
|
|
|
34,362,673
|
|
|
|
34,338,953
|
|
|
|
34,355,838
|
|
|
|
34,332,715
|
|
Weighted average number of ordinary shares used in computing diluted
income per ordinary share
|
|
|
|
34,394,808
|
|
|
|
34,397,880
|
|
|
|
34,397,572
|
|
|
|
34,398,587
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) The numerator for the calculation of net income per share for
the three and nine months ended September 30, 2018 and 2017 has
been increased by approximately $0.1 million and $0.1 million and
reduced by approximately $0.5 million and $1 million,
respectively, to reflect the adjustment to redemption value
associated with the redeemable non-controlling interest.
|
|
Caesarstone Ltd. and its subsidiaries Selected Condensed consolidated statements of cash flows
|
|
|
|
|
|
|
|
Nine months ended |
|
|
September 30, |
U.S. dollars in thousands |
|
2018 |
|
2017 |
|
|
(Unaudited) |
|
(Unaudited) |
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
23,084
|
|
|
$
|
33,579
|
|
Adjustments required to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
Depreciation and amortization
|
|
|
21,538
|
|
|
|
22,417
|
|
Share-based compensation expense
|
|
|
933
|
|
|
|
3,889
|
|
Accrued severance pay, net
|
|
|
(475
|
)
|
|
|
600
|
|
Changes in deferred tax, net
|
|
|
(3,061
|
)
|
|
|
(3,535
|
)
|
Capital loss (income)
|
|
|
73
|
|
|
|
(7
|
)
|
Legal settlements and loss contingencies, net
|
|
|
5,001
|
|
|
|
7,818
|
|
Increase in trade receivables
|
|
|
(7,855
|
)
|
|
|
(8,938
|
)
|
Increase in other accounts receivable and prepaid expenses
|
|
|
(8,930
|
)
|
|
|
(3,433
|
)
|
Increase in inventories
|
|
|
(29,227
|
)
|
|
|
(16,483
|
)
|
Increase (decrease) in trade payables
|
|
|
(16,234
|
)
|
|
|
6,594
|
|
Increase in warranty provision
|
|
|
212
|
|
|
|
197
|
|
Increase (decrease) in accrued expenses and other liabilities
including related party
|
|
|
(6,571
|
)
|
|
|
6,085
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities
|
|
|
(21,512
|
)
|
|
|
48,783
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment
|
|
|
(13,702
|
)
|
|
|
(15,775
|
)
|
Proceeds from sale of property, plant and equipment
|
|
|
6
|
|
|
|
10
|
|
Increase in long term deposits
|
|
|
(224
|
)
|
|
|
(99
|
)
|
|
|
|
|
|
Net cash used in investing activities (*)
|
|
|
(13,920
|
)
|
|
|
(15,864
|
)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
Dividend paid
|
|
|
(15,114
|
)
|
|
|
-
|
|
Dividend paid by subsidiary to non-controlling interest
|
|
|
(559
|
)
|
|
|
-
|
|
Changes in short-term bank credit and loans, net
|
|
|
(1,219
|
)
|
|
|
(2,325
|
)
|
Repayment of a financing leaseback related to Bar-Lev transaction
|
|
|
(877
|
)
|
|
|
(873
|
)
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
(17,769
|
)
|
|
|
(3,198
|
)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate differences on cash and cash equivalents
|
|
|
(215
|
)
|
|
|
479
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents and short-term bank
deposits
|
|
|
(53,416
|
)
|
|
|
30,200
|
|
Cash and cash equivalents and short-term bank deposits at beginning
of the period
|
|
|
138,707
|
|
|
|
106,270
|
|
|
|
|
|
|
Cash and cash equivalents and short-term bank deposits at end of the
period
|
|
$
|
85,291
|
|
|
$
|
136,470
|
|
|
|
|
|
|
Non - cash investing:
|
|
|
|
|
Changes in trade payables balances related to purchase of fixed
assets
|
|
|
(31
|
)
|
|
|
(395
|
)
|
|
|
|
|
|
|
|
|
|
(*) Cash used in investing activities does not include changes in
bank deposits as such balance is included in the “cash and cash
equivalents and short term bank deposits” line at the beginning and
end of the period.
|
|
Caesarstone Ltd. and its subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|
|
|
September 30, |
|
September 30, |
U.S. dollars in thousands |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
Reconciliation of Net Income to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
10,587
|
|
|
$
|
7,442
|
|
$
|
23,084
|
|
$
|
33,579
|
|
|
Finance expenses, net
|
|
|
1,551
|
|
|
|
1,594
|
|
|
1,542
|
|
|
4,509
|
|
|
Taxes on income
|
|
|
1,892
|
|
|
|
1,968
|
|
|
4,106
|
|
|
7,367
|
|
|
Depreciation and amortization
|
|
|
7,156
|
|
|
|
7,476
|
|
|
21,538
|
|
|
22,417
|
|
|
Legal settlements and loss contingencies, net (a)
|
|
|
(172
|
)
|
|
|
5,727
|
|
|
5,001
|
|
|
7,818
|
|
|
Share-based compensation expense (b)
|
|
|
541
|
|
|
|
1,368
|
|
|
933
|
|
|
3,889
|
|
|
Provision for employees fringe benefits (c)
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
(114
|
)
|
|
Non-recurring items (d)
|
|
|
-
|
|
|
|
-
|
|
|
1,157
|
|
|
-
|
|
|
Adjusted EBITDA (Non-GAAP)
|
|
$
|
21,555
|
|
|
$
|
25,575
|
|
$
|
57,361
|
|
$
|
79,465
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Consists of legal settlements expenses and loss contingencies,
net, related to product liability claims and other adjustments to
on-going legal claims.
|
(b)
|
|
Share-based compensation includes expenses related to stock
options and restricted stock units granted to employees and
directors of the Company. In addition, includes expenses for
phantom awards granted and related payroll expenses as a result of
exercises.
|
(c)
|
|
Relates to an adjustment of provision for taxable employee fringe
benefits as a result of a settlement with the Israeli Tax
Authority and with the National Insurance Institute of Israel.
|
(d)
|
|
Relates mainly to a relocation expenses of Caesarstone USA
headquarters (Company's subsidiary).
|
|
|
|
Caesarstone Ltd. and its subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|
|
September 30, |
|
September 30, |
U.S. dollars in thousands (except per share data) |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
(Unaudited)
|
Reconciliation of net income attributable to controlling interest
to adjusted net income attributable to controlling interest: |
|
|
|
|
Net income attributable to controlling interest
|
|
$
|
10,536
|
|
|
$
|
6,943
|
|
$
|
23,039
|
|
$
|
32,587
|
|
Legal settlements and loss contingencies, net (a)
|
|
|
(172
|
)
|
|
|
5,727
|
|
|
5,001
|
|
|
7,818
|
|
Share-based compensation expense (b)
|
|
|
541
|
|
|
|
1,368
|
|
|
933
|
|
|
3,889
|
|
Provision for employees fringe benefits (c)
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
(114
|
)
|
Non-recurring items (d)
|
|
|
-
|
|
|
|
-
|
|
|
1,157
|
|
|
-
|
|
Total adjustments
|
|
|
369
|
|
|
|
7,095
|
|
|
7,091
|
|
|
11,593
|
|
Less tax on non-tax adjustments (e)
|
|
|
59
|
|
|
|
1,316
|
|
|
1,071
|
|
|
2,086
|
|
Total adjustments after tax
|
|
|
310
|
|
|
|
5,779
|
|
|
6,020
|
|
|
9,507
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income attributable to controlling interest (Non-GAAP)
|
|
$
|
10,846
|
|
|
$
|
12,722
|
|
$
|
29,059
|
|
$
|
42,094
|
|
Adjusted diluted EPS (f)
|
|
$
|
0.31
|
|
|
$
|
0.37
|
|
$
|
0.84
|
|
$
|
1.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Consists of legal settlements expenses and loss contingencies,
net, related to product liability claims and other adjustments to
on-going legal claims.
|
(b)
|
|
Share-based compensation includes expenses related to stock
options and restricted stock units granted to employees and
directors of the Company. In addition, includes expenses for
phantom awards granted and the related payroll expenses as a
result of exercises.
|
(c)
|
|
Relates to an adjustment of provision for taxable employee fringe
benefits as a result of a settlement with the Israeli Tax
Authority and with the National Insurance Institute of Israel.
|
(d)
|
|
Relates mainly to a relocation expenses of Caesarstone USA
headquarters (Company's subsidiary).
|
(e)
|
|
Tax adjustments for the three and nine months ended September 30,
2018 and 2017 were based on the effective tax rates for these
periods, respectively.
|
(f)
|
|
In calculating adjusted diluted (Non-GAAP) EPS, the diluted
weighted average number of shares outstanding excludes the effects
of share-based compensation expense in accordance with FASB ASC
718.
|
|
|
|
Caesarstone Ltd. and its subsidiaries |
Geographic breakdown of revenues by region |
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|
|
September 30, |
|
September 30, |
U.S. dollars in thousands |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
USA
|
|
$
|
61,933
|
|
$
|
61,877
|
|
$
|
179,041
|
|
$
|
184,729
|
Australia (incl. New Zealand)
|
|
|
33,968
|
|
|
37,109
|
|
|
97,603
|
|
|
100,896
|
Canada
|
|
|
25,140
|
|
|
25,566
|
|
|
75,844
|
|
|
73,160
|
Israel
|
|
|
9,709
|
|
|
12,012
|
|
|
30,625
|
|
|
34,556
|
Europe
|
|
|
9,170
|
|
|
8,955
|
|
|
25,735
|
|
|
22,298
|
Rest of World
|
|
|
7,769
|
|
|
9,163
|
|
|
24,142
|
|
|
24,368
|
|
|
$
|
147,689
|
|
$
|
154,682
|
|
$
|
432,990
|
|
$
|
440,007
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20181107005388/en/
Source: Caesarstone Ltd.
Investor Relations
ICR, Inc.
Rodny Nacier, +1 (646)
277-1237
Managing Director
rodny.nacier@icrinc.com