Caesarstone Reports Third Quarter 2023 Financial Results

- Revenues of $142.4 Million -

- Generated Strong Cash Flow from Operations of $28.2 Million During the Quarter and $53.3 Million Year-to-Date -

- Produces Strong Sequential Gross Margin Improvement to 19.1% -

- Remains Focused on Global Strategic Restructuring Actions to Reignite Long-term Growth and Profitability -

- Reiterates Full Year Outlook and Expects Positive Cash Flow from Operations in the Fourth Quarter -

Caesarstone Ltd. (NASDAQ: CSTE), a leading developer and manufacturer of high-quality engineered surfaces, today reported financial results for its third quarter ended September 30, 2023.

Yos Shiran, Caesarstone’s Chief Executive Officer commented, “We are pleased with the strong cash flow generated from operations. We are making significant progress with the implementation of our global restructuring actions and are executing against our plan to improve our cost structure and optimize our production footprint. I am confident we are taking the right steps to improve our business performance and drive value to our shareholders, partners and customers. Moving into 2024 and beyond, we remain focused on optimizing our business to operate more efficiently, investing in our brand, and introducing innovative products as we create a new foundation to support long-term profitable growth.”

Mr. Shiran continued, “We are deeply disturbed by the horrible acts of vicious violence and terror that were inflicted by Hamas’ terrorists on October 7th. We are confident that Israel will not only prevail but will also exercise justice towards all who were involved in committing these heinous crimes. We at Caesarstone remain committed to supporting the people of Israel and the rehabilitation of our effected townships. We are operating our business as usual during these challenging times. While this situation has disrupted the market place in Israel, which accounts for approximately 5% of our revenues, we have taken the steps necessary to ensure business continuity and have not experienced any material impact to our strategy, global operations or Israeli production operations. We are monitoring the situation closely and see no major impediments to continue serving our customers globally.”

Nahum Trost, Caesarstone’s Chief Financial Officer added, “We have now generated more than $53 million in cash flow from operations year-to-date to support our business transformation even as we navigate complex market dynamics across our global footprint. As promised, we produced a higher sequential gross margin. In addition, we generated positive adjusted EBITDA during the quarter and currently expect to generate similar Adjusted EBITDA in the fourth quarter despite the near-term reduction in Israel revenues due to the war on terror.”

Third Quarter 2023 Results

Revenue in the third quarter of 2023 was $142.4 million, compared to $180.7 million in the prior year quarter. On a constant currency basis, third quarter revenue was down 20.3% year-over-year mainly due to lower volume. Volumes were primarily impacted by global economic headwinds, particularly in renovation and remodeling channels, across the Company’s main regions and the competitive landscape, resulting in lower demand.

Gross margin in the third quarter of 2023 was 19.1% compared to 23.0% in the prior year quarter. Adjusted gross margin in the third quarter was 19.8% compared to 23.1% in the prior year quarter. The decrease in gross margin resulted from lower revenues, increased manufacturing unit costs due to lower fixed cost absorption mainly related to lower capacity utilization. This was partially offset by lower shipping costs and the benefits of an improved production footprint.

Operating expenses in the third quarter of 2023 were $29.2 million, or 20.5% of revenue, compared to $38.5 million, or 21.3% of revenue in the prior year quarter. The higher percentage is primarily attributable to lower revenues. Excluding legal settlements and loss contingencies and restructuring expenses, operating expenses were 23.7% of revenue, compared to 20.9% in the prior year quarter.

Operating loss in the third quarter of 2023 was $2.0 million compared to operating income of $3.2 million in the prior year quarter. The decrease mainly reflects lower gross margin.

Adjusted EBITDA in the third quarter of 2023, which excludes expenses for non-cash share-based compensation, legal settlements and loss contingencies and for other items, was $1.9 million, compared to adjusted EBITDA of $13.4 million in the prior year quarter. The year-over-year decrease primarily reflects the operating loss.

Finance income in the third quarter of 2023 was $1.3 million compared to finance expenses of $4.3 million in the prior year quarter. The difference primarily reflects foreign currency exchange rate fluctuations on assets and liabilities denominated mainly in new Israeli Shekel that devaluated against the US Dollar, along with higher interest earned on our cash balances.

Net loss attributable to controlling interest for the third quarter of 2023 was $0.9 million compared to net loss of $0.5 million in the prior year quarter. Net loss per share for the third quarter was $0.03 compared to diluted net loss per share of $0.02 in the prior year quarter. Adjusted diluted net loss per share for the third quarter was $0.20 on 34.6 million shares, compared to adjusted diluted net income per share of $0.01 in the prior year quarter on a similar share count.

Balance Sheet & Liquidity

During the third quarter, the Company generated positive cash flow from operations of $28.2 million mainly driven by inventory reductions, compared to operating cash flow of $3.5 million in the third quarter of 2022. As of September 30, 2023, the Company’s balance sheet included cash, cash equivalents and short-term bank deposits and short-term marketable securities of $79.1 million and total debt to financial institutions of $6.9 million. The Company’s net cash position as of September 30, 2023, was $72.2 million compared to $28.2 million as of December 31, 2022.

Dividend

The Company’s dividend policy provides for a quarterly cash dividend of up to 50% of reported net income on a year-to-date basis, less any amount already paid as dividend for the respective period (the “calculated dividend”), subject in each case to approval by the Company’s board of directors. No dividend is paid if it would be less than $0.10 per share. Pursuant to the Company’s dividend policy, the Company will not pay a dividend for the third quarter of 2023, based on its reported net loss attributable to controlling interest for the period.

Outlook

Based on the actions and initiatives underway, the strong cash flow from operations produced year-to-date, and the expectation to generate additional cash flow from operations in the fourth quarter of 2023, the Company reiterates its full year outlook to generate positive cash flow from operations and to end the year with an improved net cash position. The outlook for the remaining quarter is based on working capital improvements and cost optimization efforts, along with an expectation for similar adjusted EBITDA in the fourth quarter compared to the third quarter of 2023 despite the near-term reduction in Israel revenues due to the war on terror.

Webcast and Conference Call Details

The Company will host a webcast and conference call today, November 8, 2023, at 8:30 a.m. ET to discuss the results, followed by a question and answer session for the investment community. The live webcast can be accessed through the Investor Relations section of the Company’s website at ir.caesarstone.com. For those unable to access the webcast, the conference call will be accessible domestically or internationally, by dialing 1-844-825-9789 and 1-412-317-5180, respectively. The toll-free Israeli number is 1 80 921 3284. Upon dialing in, please request to join the Caesarstone Third Quarter 2023 Earnings Conference Call.

To listen to a telephonic replay of the conference call, dial toll-free 1-844-512-2921 or [phone] (international) and enter pass code 10183220. The replay will be available beginning at 12:30 p.m. ET on Wednesday, November 8, 2023 and will last through 11:59 p.m. ET on Wednesday, November 15, 2023.

About Caesarstone

Caesarstone is a global leader of premium surfaces, specializing in countertops that create dynamic spaces of inspiration in the heart of the home. Established in 1987, its multi-material portfolio of over 100 colors combines the company’s innovative technology with its powerful design passion. Spearheading high-quality, sustainable surfaces, Caesarstone delivers functional resilience with timeless beauty, for a vast range of applications, including kitchen countertops, bathroom vanities, and more, for indoor and outdoor spaces.

Since it pioneered quartz countertops over thirty years ago, the brand has expanded into porcelain and natural stone and is on the ground in more than 50 countries worldwide while enhancing customer experience through the expansion of groundbreaking digital platforms & services. More information on Caesarstone: caesarstoneus.com, Facebook, Twitter, YouTube, Pinterest, and Instagram

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. Reconciliations of GAAP gross profit to adjusted gross profit, GAAP net income (loss) to adjusted net income (loss) and net income (loss) to adjusted EBITDA are provided in the schedules to this release. To calculate revenues growth rates that exclude the impact of changes in foreign currency exchange rates, the Company converts actual reported results from local currency to U.S. dollars using constant foreign currency exchange rates in the current and comparable period. 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" within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “goals," “intend,” “seek,” “anticipate,” “believe,” “could,” “continue,” “expect,” “estimate,” “may,” “plan,” “outlook,” “future” and “project” and other similar expressions that predict, project or indicate future events or trends or that are not statements of historical matters. Such forward looking statements include statements regarding the Company’s sustainability goals and plans, intentions, expectations, assumptions, goals and beliefs regarding the Company’s business and sustainability vision. These forward-looking statements also may relate to the Company's plans, objectives and expectations for future operations, including estimations relating to the restructuring plan, the closure of the Sdot Yam Facility, the estimated closure costs and the estimated potential savings relating to the facility closure, the ability to sublease all or part of the facility covered by the long-term non-cancellable lease agreement, the impact of the COVID-19 pandemic and mitigation measures in connection thereto, and expectations of the results of the Company’s business optimization initiatives. 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, both known or unknown. These factors include, but are not limited to: the implementation of the proposed restructuring plan, the closure of the Sdot Yam Facility, the estimated closure costs and ability to realize potential savings relating to the closure, the ability to sublease all or part of the facility covered by the long-term non-cancellable lease agreement, the impact of the COVID-19 pandemic on end-consumers, the effects of global economy and geo-politics on the Company’s business and operations; managing constraints in the global supply chain, raw material shortages, increased prices and effects of challenges in global shipping and transportation; Company’s ability to pass all or some of these increases to its customers; the strength of the home renovation and construction sectors; intense competitive pressures; disruptions to our information technology systems globally, including by deliberate cyber-attacks; the degree of the Company’s ability to develop, produce and deliver high quality and safe products; fluctuations in currency exchange rates against the U.S. Dollar; Company’s ability to raise funds to finance our current and future capital needs; Company’s ability to build-out and expand into certain markets and successfully integrate our acquisitions; the Company’s ability to effective manage its relationship with key suppliers; the outcome of silicosis and other bodily injury claims; regulatory requirements relating to hazards associated with our operations and products; efficiently manufacturing our products and managing changes in production and supply chain; economic conditions within any of our key existing markets; the success of our expansion efforts in the United States; the extent of the Company’s ability to meet its ESG goals and targets, management of GHG and other emissions; the impacts of conditions in Israel, such as negative economic, labor or geopolitical events; the unpredictability of seasonal fluctuations in revenues; disturbances to the Company’s operations or the operations of its suppliers, distributors, customers or other third parties and other factors, risks and uncertainties discussed under the sections "Risk Factors" and “Special Note Regarding Forward-Looking Statements and Risk Factor Summary” in our most recent annual report on Form 20-F filed with the Securities and Exchange Commission (the “SEC”) on March 15, 2023, and in other documents filed by Caesarstone with the SEC, which are available free of charge at www.sec.gov. 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.

Further, the estimates of the charges and expenditures that the Company expects to incur in connection with the restructuring plan and facility closure and the timing thereof, are subject to a number of assumptions, and actual amounts may differ materially from estimates. In addition, the Company may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur, including in connection with the implementation of the restructuring plan and facility closure.

Caesarstone Ltd. and its subsidiariesCondensed consolidated balance sheets

As of

U.S. dollars in thousands

September 30, 2023

December 31, 2022

(Unaudited)

(Audited)

ASSETS










 


CURRENT ASSETS:










 


Cash and cash equivalents and short-term bank deposits

$

78,086

 

$

52,081

 

Short-term available for sale marketable securities

 

1,009

 

 

7,077

 

Trade receivables, net

 

74,683

 

 

77,898

 

Other accounts receivable and prepaid expenses

 

25,238

 

 

32,570

 

Inventories

 

146,224

 

 

238,232

 

 


Total current assets

 

325,240

 

 

407,858

 

 


LONG-TERM ASSETS:










 


Severance pay fund

 

2,791

 

 

3,410

 

Deferred tax assets, net

 

12,093

 

 

16,251

 

Long-term deposits and prepaid expenses

 

4,823

 

 

3,255

 

Operating lease right-of-use assets

 

124,005

 

 

144,098

 

Property, plant and equipment, net

 

155,254

 

 

169,292

 

Intangible assets, net

 

6,790

 

 

8,817

 

 


Total long-term assets

 

305,756

 

 

345,123

 

 


Total assets

$

630,996

 

$

752,981

 

 


LIABILITIES AND EQUITY










 


CURRENT LIABILITIES:










 


Short-term bank credit

$

3,755

 

$

26,135

 

Trade payables

 

42,984

 

 

62,194

 

Related parties and other loans

 

211

 

 

283

 

Short term legal settlements and loss contingencies

 

16,034

 

 

17,595

 

Accrued expenses and other liabilities

 

58,500

 

 

58,777

 

 


Total current liabilities

 

121,484

 

 

164,984

 

 


LONG-TERM LIABILITIES:










 


Long-term bank and other loans and financing liability of land from a related party

 

3,144

 

 

4,823

 

Legal settlements and loss contingencies long-term and other liabilities

 

13,512

 

 

19,572

 

Deferred tax liabilities, net

 

3,050

 

 

4,288

 

Long-term lease liabilities

 

115,008

 

 

124,353

 

Accrued severance pay

 

3,837

 

 

4,750

 

Long-term warranty provision

 

1,220

 

 

1,262

 

 


Total long-term liabilities

 

139,771

 

 

159,048

 

 


REDEEMABLE NON-CONTROLLING INTEREST

 

8,066

 

 

7,903

 

 


EQUITY:










 


Ordinary shares

 

371

 

 

371

 

Treasury shares - at cost

 

(39,430

)

 

(39,430

)

Additional paid-in capital

 

163,987

 

 

163,431

 

Capital fund related to non-controlling interest

 

(5,587

)

 

(5,587

)

Accumulated other comprehensive income (loss), net

 

(11,958

)

 

(9,578

)

Retained earnings

 

254,292

 

 

311,839

 

 


Total equity

 

361,675

 

 

421,046

 

 


Total liabilities and equity

$

630,996

 

$

752,981

 

Caesarstone Ltd. and its subsidiaries Condensed consolidated statements of income (loss)

Three months endedSeptember 30,

Nine months endedSeptember 30,

U.S. dollars in thousands (except per share data)

2023

2022

2023

2022

(Unaudited)

(Unaudited)

 


Revenues

$

142,394

 

$

180,727

 

$

436,706

 

$

531,437

 

Cost of revenues

 

115,205

 

 

139,110

 

 

368,047

 

 

399,123

 

 


Gross profit

 

27,189

 

 

41,617

 

 

68,659

 

 

132,314

 

 


Operating expenses:











Research and development

 

1,242

 

 

853

 

 

3,837

 

 

2,947

 

Sales and Marketing

 

20,398

 

 

23,821

 

 

62,458

 

 

72,080

 

General and administrative

 

12,144

 

 

13,187

 

 

39,322

 

 

39,735

 

Restructuring and Impairment expenses (income) related to long lived assets (**)

 

(3,349

)

 

-

 

 

20,224

 

 

-

 

Legal settlements and loss contingencies, net

 

(1,259

)

 

601

 

 

(2,346

)

 

1,059

 

 


Total operating expenses

 

29,176

 

 

38,462

 

 

123,495

 

 

115,821

 

 


Operating income (loss)

 

(1,987

)

 

3,155

 

 

(54,836

)

 

16,493

 

Finance expenses (income), net

 

(1,292

)

 

4,307

 

 

(4,816

)

 

(3,486

)

 


Income (loss) before taxes

 

(695

)

 

(1,152

)

 

(50,020

)

 

19,979

 

Tax expenses (income), net

 

83

 

 

(788

)

 

7,332

 

 

2,457

 

 


Net income (loss)

$

(778

)

$

(364

)

$

(57,352

)

$

17,522

 

 


Net loss (income) attributable to non-controlling interest

 

(109

)

 

(99

)

 

217

 

 

(610

)

 


Net income (loss) attributable to controlling interest

$

(887

)

$

(463

)

$

(57,135

)

$

16,912

 

Basic net income (loss) per ordinary share (*)

$

(0.03

)

$

(0.02

)

$

(1.67

)

$

0.49

 

Diluted net income (loss) per ordinary share (*)

$

(0.03

)

$

(0.02

)

$

(1.67

)

$

0.48

 

Weighted average number of ordinary shares used in computing basic income (loss) per ordinary share

 

34,522,015

 

 

34,493,599

 

 

34,515,291

 

 

34,485,587

 

Weighted average number of ordinary shares used in computing diluted income (loss) per ordinary share

 

34,522,015

 

 

34,493,599

 

 

34,515,291

 

 

34,543,319

 

(*) The numerator for the calculation of net income (loss) per share for the three and nine months ended September 30, 2023 and 2022, has been decreased by approximately $0.1 and $0.4 million, and $0.1 and $0.2 million, respectively, to reflect the adjustment to redemption value associated with the redeemable non-controlling interest.

(**) Restructuring expenses in accordance with ASC420, and Right Of Use (ROU) asset impairment related to Sdot Yam plant closure.

Q3'23 net credit includes ROU and Fixed assets alignments to proper impairment calculations.

Caesarstone Ltd. and its subsidiariesSelected Condensed consolidated statements of cash flows

Nine months endedSeptember 30,

U.S. dollars in thousands

2023

2022

(Unaudited)

(Unaudited)

Cash flows from operating activities:

 


Net income (loss)

$

(57,352

)

$

17,522

 

Adjustments required to reconcile net income (loss) to net cash provided by (used in) operating activities:






Depreciation and amortization

 

22,711

 

 

27,223

 

Share-based compensation expense

 

556

 

 

1,243

 

Accrued severance pay, net

 

(290

)

 

(84

)

Changes in deferred tax, net

 

2,878

 

 

(4,001

)

Capital (gain) loss

 

83

 

 

65

 

Legal settlements and loss contingencies, net

 

(2,346

)

 

1,060

 

Decrease (increase) in trade receivables

 

2,725

 

 

(10,810

)

Decrease in other accounts receivable and prepaid expenses

 

8,359

 

 

1,377

 

Decrease (increase) in inventories

 

91,329

 

 

(50,098

)

Increase (decrease) in trade payables

 

(25,775

)

 

3,305

 

Decrease in warranty provision

 

(72

)

 

(128

)

Changes in right of use assets

 

(1,206

)

 

10,533

 

Changes in lease liabilities

 

(8,134

)

 

(19,663

)

Contingent consideration related to acquisitions

 

240

 

 

57

 

Amortization of premium and accretion of discount on marketable securities, net

 

63

 

 

193

 

Changes in Accrued interest related to Marketable Securities

 

25

 

 

44

 

Decrease in accrued expenses and other liabilities including related parties

 

(682

)

 

(2,130

)

Restructuring expenses and Impairment related to long lived assets

 

20,224

 

 

-

 

Net cash provided by (used in) operating activities

 

53,336

 

 

(24,292

)

Cash flows from investing activities:

 


Net cash paid for acquisitions

 

(511

)

 

(2,245

)

Purchase of property, plant and equipment

 

(8,718

)

 

(12,771

)

Proceeds from sale of property, plant and equipment

 

16

 

 

9

 

Maturity of marketable securities

 

6,103

 

 

11,901

 

Decrease (increase) in long term deposits

 

(108

)

 

341

 

 


Net used in investing activities

 

(3,218

)

 

(2,765

)

Cash flows from financing activities:

 


Dividend paid

 

-

 

 

(8,625

)

Changes in short-term bank credits and long-term loans, including related parties

 

(24,063

)

 

21,947

 

Repayment of a financing leaseback related to Bar-Lev transaction

 

-

 

 

(859

)

 


Net cash provided by (used in) financing activities

 

(24,063

)

 

12,463

 

 






 


Effect of exchange rate differences on cash and cash equivalents

 

(50

)

 

(1,161

)

 


Increase (decrease) in cash and cash equivalents and short-term bank deposits

 

26,005

 

 

(15,755

)

Cash and cash equivalents and short-term bank deposits at beginning of the period

 

52,081

 

 

74,315

 

 


Cash and cash equivalents and short-term bank deposits at end of the period

$

78,086

 

$

58,560

 

Non - cash investing:

Changes in trade payables balances related to purchase of fixed assets

 

(104

)

 

(441

)

Caesarstone Ltd. and its subsidiaries

Three months endedSeptember 30,

Nine months endedSeptember 30,

U.S. dollars in thousands

2023

2022

2023

2022

(Unaudited)

(Unaudited)

Reconciliation of Gross profit to Adjusted Gross profit:

Gross profit

$

27,189

 

$

41,617

$

68,659

 

$

132,314

Share-based compensation expense (a)

 

16

 

 

79

 

153

 

 

228

Amortization of assets related to acquisitions

 

71

 

 

80

 

215

 

 

234

Residual operating expenses related to Sdot-Yam after closing

 

1,011

 

 

-

 

2,795

 

 

-

Other non recurring items

 

(152

)

 

-

 

(152

)

 

-

Adjusted Gross profit (Non-GAAP)

$

28,135

 

$

41,775

$

71,670

 

$

132,776

(a)

Share-based compensation includes expenses related to stock options and restricted stock units granted to employees and directors of the Company.

Caesarstone Ltd. and its subsidiaries

Three months endedSeptember 30,

Nine months endedSeptember 30,

U.S. dollars in thousands

2023

2022

2023

2022

(Unaudited)

(Unaudited)

Reconciliation of Net Income (loss) to Adjusted EBITDA:

Net income (loss)

$

(778

)

$

(364

)

$

(57,352

)

$

17,522

 

Finance expenses (income), net

 

(1,292

)

 

4,307

 

 

(4,816

)

 

(3,486

)

Taxes on income

 

83

 

 

(788

)

 

7,332

 

 

2,457

 

Depreciation and amortization

 

7,472

 

 

9,200

 

 

22,711

 

 

27,223

 

Legal settlements and loss contingencies, net (a)

 

(1,259

)

 

602

 

 

(2,346

)

 

1,060

 

Contingent consideration adjustment related to acquisition

 

75

 

 

57

 

 

240

 

 

57.00

 

Acquisition and integration related expenses

 

-

 

 

-

 

 

-

 

 

80

 

Share-based compensation expense (b)

 

61

 

 

375

 

 

556

 

 

1,243

 

Restructuring expenses and Impairment related to long lived assets (c)

 

(3,349

)

 

-

 

 

20,224

 

 

-

 

Residual operating expenses related to Sdot-Yam after closing (c)

 

1,011

 

 

-

 

 

2,795

 

 

-

 

Other non recurring items

 

(152

)

 

(152

)

 

-

 

Adjusted EBITDA (Non-GAAP)

$

1,872

 

$

13,389

 

$

(10,808

)

$

46,156

 

(a)

Consists primarily of legal settlements expenses and loss contingencies, net, related to product liability claims.

(b)

Share-based compensation includes expenses related to stock options and restricted stock units granted to employees and directors of the Company.

(c)

Expenses related to restructuring. Q3'23 net credit includes ROU and Fixed assets alignments to proper impairment calculations.

Caesarstone Ltd. and its subsidiaries

Three months endedSeptember 30,

Nine months endedSeptember 30,

U.S. dollars in thousands (except per share data)

2023

2022

2023

2022

(Unaudited)

(Unaudited)

Reconciliation of net income (loss) attributable to controlling interest to adjusted net income (loss) attributable to controlling interest:

Net income (loss) attributable to controlling interest

$

(887

)

$

(463

)

$

(57,135

)

$

16,912

 

Legal settlements and loss contingencies, net (a)

 

(1,259

)

 

602

 

 

(2,346

)

 

1,060

 

Contingent consideration adjustment related to acquisition

 

75

 

 

57

 

 

240

 

 

57

 

Amortization of assets related to acquisitions, net of tax

 

582

 

 

548

 

 

1,608

 

 

1,548

 

Share-based compensation expense (b)

 

61

 

 

375

 

 

556

 

 

1,243

 

Acquisition and integration related expenses

 

-

 

 

-

 

 

-

 

 

80

 

Non cash revaluation of lease liabilities (c)

 

(2,092

)

 

(796

)

 

(5,094

)

 

(10,203

)

Restructuring expenses and Impairment related to long lived assets (d)

 

(3,349

)

 

-

 

 

20,224

 

 

-

 

Residual operating expenses related to Sdot-Yam after closing (d)

 

1,011

 

 

-

 

 

2,795

 

 

-

 

Other non recurring items

 

(152

)

 

-

 

 

(152

)

 

-

 

Total adjustments

 

(5,123

)

 

786

 

 

17,831

 

 

(6,215

)

Less tax on non-tax adjustments (e)

 

760

 

 

311

 

 

(2,614

)

 

(764

)

Total adjustments after tax

 

(5,883

)

 

476

 

 

20,445

 

 

(5,451

)

 



Adjusted net income (loss) attributable to controlling interest (Non-GAAP)

$

(6,770

)

$

13

 

$

(36,690

)

$

11,461

 

Adjusted earning (loss) per share (f)

$

(0.20

)

$

0.01

 

$

(1.06

)

$

0.33

 

(a)

Consists primarily of legal settlements expenses and loss contingencies, net, related to product liability claims.

(b)

Share-based compensation includes expenses related to stock options and restricted stock units granted to employees and directors of the Company.

(c)

Exchange rate differences deriving from revaluation of lease contracts in accordance with FASB ASC 842.

(d)

Expenses related to restructuring. Q3'23 net credit includes ROU and Fixed assets alignments to proper impairment calculations.

(e)

Tax adjustments for the three and nine months ended September 30, 2023 and 2022, based on the effective tax rates.

(f)

In calculating adjusted (Non-GAAP) earning (loss) per share, 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 endedSeptember 30,

Nine months endedSeptember 30,

Three months endedSeptember 30,

Nine months endedSeptember 30,

U.S. dollars in thousands

2023

2022

2023

2022

(Unaudited)

(Unaudited)

(Audited)

YoY % change

YoY % change CCB

YoY % change

YoY % change CCB

 


USA

$

65,883

$

87,623

$

211,364

$

265,899

-24.8

%

-24.8

%

-20.5

%

-20.5

%

Canada

 

18,956

 

23,607

 

57,712

 

72,704

-19.7

%

-17.5

%

-20.6

%

-16.8

%

Latin America

 

1,650

 

1,470

 

2,468

 

3,517

12.2

%

12.2

%

-29.8

%

-29.8

%

America's

 

86,489

 

112,700

 

271,544

 

342,120

-23.3

%

-22.8

%

-20.6

%

-19.8

%

 


Australia

 

27,326

 

31,204

 

79,539

 

86,938

-12.4

%

-8.4

%

-8.5

%

-3.4

%

Asia

 

6,747

 

8,834

 

20,069

 

26,716

-23.6

%

-23.5

%

-24.9

%

-25.8

%

APAC

 

34,073

 

40,038

 

99,608

 

113,654

-14.9

%

-11.7

%

-12.4

%

-8.6

%

EMEA

 

15,185

 

17,004

 

45,395

 

48,054

-10.7

%

-16.5

%

-5.5

%

-6.4

%

Israel

 

6,650

 

10,985

 

20,162

 

27,609

-39.5

%

-32.3

%

-27.0

%

-19.2

%

 


Total Revenues

$

142,397

$

180,727

$

436,709

$

531,437

-21.2

%

-20.3

%

-17.8

%

-16.2

%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231108415565/en/

Investor Relations:

ICR, Inc. - Rodny Nacier [e-mail] [phone]