Caesarstone Ltd 6-K, filed Aug 3, 2022
Caesarstone Ltd. (CSTE)
6-K
2022-08-03
For: 2022-08-02
View Original
Added on
April 12, 2026
About this 6-K
Caesarstone Ltd filed this 6-K on August 3, 2022.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of August 2022
Commission File Number: 001-35464
Caesarstone Ltd.
(Translation of registrant’s name into English)
Kibbutz Sdot Yam
MP Menashe
Israel 3780400
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): __
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): __
EXPLANATORY NOTE
On August 3, 2022, Caesarstone Ltd. (the “Registrant”) issued a press release titled “Caesarstone Reports Second Quarter 2022 Financial Results”, a copy of which is furnished as Exhibit 99.1
herewith. The GAAP financial information included in consolidated balance sheets, consolidated statements of income and condensed consolidated statements of cash flows contained in the press release attached as Exhibit 99.1 to this Report on Form
6-K is hereby incorporated by reference into the Registrant’s Registration Statements on Form S-8 (Files Nos. 333-180313, 333-210444 and 333-251642). A copy of the Registrant’s updated investor presentation can be accessed at ir.caesarstone.com.
The information in the investor presentation is not incorporated by reference into the Registrant’s Registration Statements.
EXHIBIT INDEX
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Exhibit
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Description
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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CAESARSTONE LTD.
|
|
|
|
|
|
|
|
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Date: August 3, 2022
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By:
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/s/ Ron Mosberg
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Name: Ron Mosberg
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|
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Title: General Counsel & Corporate Secretary
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Exhibit 99.1
Caesarstone Reports Second Quarter 2022 Financial Results
– Record Second Quarter Revenue up 10.3% to $180.3 Million; up 13.7% on a Constant Currency Basis –
– Net Income attributable to Controlling Interest of $11.1 Million, or $0.32 Per Share –
– Adjusted EPS of $0.20 –
– Adjusted EBITDA of $17.1 Million –
– In July 2022, Acquired a Leading Distributor in Sweden, Establishing First Direct Go-To-Market Presence in E.U. –
– Declares Dividend of $0.25 per share –
– Reiterates Full Year 2022 Outlook –
MP MENASHE, Israel – August 3, 2022 - Caesarstone Ltd. (NASDAQ: CSTE), a leading developer and manufacturer of high-quality engineered surfaces, today reported financial results for its second
quarter ended June 30, 2022.
Yuval Dagim, Caesarstone’s Chief Executive Officer commented, “We were happy to produce second quarter results that were in-line with our expectations as we demonstrated further progress against our
multi-pronged growth strategy. We achieved our 6th consecutive quarter of double-digit year-over-year revenue growth, including nearly 20% growth in the U.S. while also implementing successful pricing actions that helped us continue to
mitigate increasing costs of raw materials and shipping and improve our margins on a sequential basis. Our best-in-class product offerings, successful integration of our acquired businesses, and targeted efforts to enhance customer experience through
the expansion of our digital platforms are all driving fundamental improvements across our business. Moving into the second half of 2022, we are introducing new product families across our regions and will evaluate additional pricing actions as
needed. In line with our strategic plan, we are also enhancing our go-to-market strategy in Europe through the acquisition of a leading distributor in Sweden with annual revenues of ~$4 million, which we acquired in July 2022. With an estimated 60%
to 70% of our business in our key markets tied to the historically resilient repair and remodel end market, I am confident that we have the right plan in place to deliver on our strategic objectives while navigating through a complex global
environment. In doing so, we will continue to leverage our world-class brand, innovative go-to-market initiatives, and multi-material product offerings to drive additional value for our shareholders.”
Second Quarter 2022 Results
Revenue in the second quarter of 2022 grew 10.3% to a second quarter record of $180.3 million compared to $163.5 million in the prior year quarter. On a
constant currency basis, second quarter revenue was higher by 13.7% year-over-year. Revenue growth was primarily driven by higher pricing across the majority of our global footprint particularly in North America.
Gross margin in the second quarter of 2022 was 26.4% compared to 28.0% in the prior year quarter. Adjusted gross margin in the second quarter was 26.4%
compared to 28.1% in the prior year quarter. The year-over-year reduction in gross margin mainly reflects higher shipping and raw material price increases and unfavorable foreign exchange rate fluctuations, which were partially offset by favorable
product mix and selling price increases.
Operating expenses in the second quarter of 2022 were $41.2 million, or 22.8% of revenue, compared to $40.6 million, or 24.8% of revenue in the prior year
quarter mainly due to lower expense for legal settlements. Excluding legal settlements and loss contingencies, adjusted operating expenses were 22.1% of revenue, compared to 22.3% in the prior year quarter, mainly due to higher revenues.
Operating income in the second quarter of 2022 was $6.4 million compared to $5.2 million in the prior year quarter. The year-over-year increase mainly reflects
higher gross profit and lower legal settlements and loss contingencies.
Adjusted EBITDA in the second quarter of 2022, which excludes expenses for non-cash share-based compensation, legal settlements and loss contingencies and for
non-recurring items, was $17.1 million, representing a margin of 9.5%. This compared to adjusted EBITDA of $18.8 million, representing a margin of 11.5%, in the prior year quarter. The year-over-year decrease primarily reflects the lower gross
margin.
Finance income in the second quarter of 2022 was $6.4 million compared to finance expense of $3.1 million in the prior year quarter. The difference was
primarily a result of favorable foreign currency exchange rate fluctuations.
Net income attributable to controlling interest for the second quarter of 2022 was $11.1 million compared to $1.7 million in the prior year quarter. Net income
per share for the second quarter was $0.32 compared to net income per share of $0.05 in the prior year quarter. Adjusted diluted net income per share for the second quarter was $0.20 on 34.6 million shares, compared to adjusted diluted net income per
share of $0.21 in the prior year quarter on 34.5 million shares.
Balance Sheet & Liquidity
As of June 30, 2022, the Company’s balance sheet remained strong, including cash, cash equivalents and short-term bank deposits and short and long-term marketable securities of $62.2 million and
total debt to financial institutions of $18.0 million.
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. In accordance with the Company’s dividend policy, the board of directors declared a cash
dividend of $0.25 per share for the three months ended June 30, 2022. The dividend will be paid on September 7, 2022 to shareholders of record as of August 17, 2022. The dividend payment is subject to withholding tax of ~20.5%.
Outlook
The Company reiterates its expectation for 2022 revenue to be in the range of $710 million to $725 million, implying approximately 11% growth over 2021 at the midpoint, driven by volume and price
improvements in its markets. Additionally, the Company reaffirms its expectation for Adjusted EBITDA as a percentage of sales to be similar compared to 2021, primarily attributable to higher sales and selling prices that are anticipated to offset
increased costs in connection with raw material inputs, particularly polyester, and shipping.
Webcast and Conference Call Details
The Company will host a live webcast and conference call today at 8:30 a.m. ET to discuss the results, followed by a question and answer session for the investment community. The live webcast of the
call can be accessed at ir.caesarstone.com. For those unable to access the webcast, the conference call will be accessible by dialing 1-877-451-6152 (domestic) or 1-201-389-0879, (international). The toll-free Israeli number is 1 80 940 6247.
Upon dialing in, please request to join the Caesarstone Second Quarter Earnings Call.
To listen to a telephonic replay of the conference call, dial toll-free 1-844-512-2921 (domestic) or +1-412-317-6671 (international) and enter pass code 13730170. The replay will be available
beginning at 11:30 a.m. ET on Wednesday, August 3, 2022 and will last through 11:59 p.m. ET on Wednesday, August 10, 2022.
About Caesarstone
Caesarstone is a concept and lifestyle-driven company with a customer-centered approach to designing, developing, and producing high-end engineered stone countertops, used in residential and
commercial buildings. Our products offer superior aesthetic appeal and perfected functionality through a distinct variety of colors, styles, textures, and finishes used in diverse countertop applications, marked by inherent longevity. Strong
commitment to service has fostered growing customer loyalty in over 50 countries where the Caesarstone product collections are available: Classico, Supernatural, Metropolitan and Outdoor. For more information please visit our website: www.caesarstone.com.
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 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 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, 2022, 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.
Contacts:
Investor Relations:
ICR, Inc. - Rodny Nacier
CSTE@icrinc.com
+1 (646) 200-8870
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Caesarstone Ltd. and its subsidiaries
Condensed consolidated balance sheets
|
|
As of
|
||||||||
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U.S. dollars in thousands
|
June 30,
2022
|
December 31,
2021
|
||||||
|
(Unaudited)
|
(Audited)
|
|||||||
|
ASSETS
|
||||||||
|
CURRENT ASSETS:
|
||||||||
|
Cash and cash equivalents and short-term bank deposits
|
$
|
53,483
|
$
|
74,315
|
||||
|
Short-term available for sale marketable securities
|
6,405
|
11,228
|
||||||
|
Trade receivables, net
|
94,788
|
82,815
|
||||||
|
Other accounts receivable and prepaid expenses
|
38,187
|
35,443
|
||||||
|
Inventories
|
252,112
|
204,725
|
||||||
|
Total current assets
|
444,975
|
408,526
|
||||||
|
LONG-TERM ASSETS:
|
||||||||
|
Severance pay fund
|
3,415
|
4,090
|
||||||
|
Other long-term receivables
|
3,500
|
3,832
|
||||||
|
Deferred tax assets, net
|
11,649
|
10,880
|
||||||
|
Long-term deposits and prepaid expenses
|
399
|
449
|
||||||
|
Operating lease right-of-use assets
|
143,287
|
154,652
|
||||||
|
Long-term available for sale marketable securities
|
2,327
|
8,647
|
||||||
|
Property, plant and equipment, net
|
210,344
|
221,150
|
||||||
|
Goodwill and intangible assets, net
|
52,907
|
55,427
|
||||||
|
Total long-term assets
|
427,828
|
459,127
|
||||||
|
Total assets
|
$
|
872,803
|
$
|
867,653
|
||||
|
LIABILITIES AND EQUITY
|
||||||||
|
CURRENT LIABILITIES:
|
||||||||
|
Short-term bank credit
|
$
|
12,291
|
$
|
12,523
|
||||
|
Trade payables
|
96,304
|
81,369
|
||||||
|
Related parties and other loans
|
1,608
|
2,276
|
||||||
|
Short term legal settlements and loss contingencies
|
16,690
|
22,592
|
||||||
|
Accrued expenses and other liabilities
|
63,753
|
64,534
|
||||||
|
Total current liabilities
|
190,646
|
183,294
|
||||||
|
LONG-TERM LIABILITIES:
|
||||||||
|
Long-term bank and other loans and financing liability of land from a related party
|
10,409
|
6,240
|
||||||
|
Legal settlements and loss contingencies long-term
|
21,819
|
20,859
|
||||||
|
Deferred tax liabilities, net
|
4,417
|
4,992
|
||||||
|
Long-term lease liabilities
|
124,282
|
143,324
|
||||||
|
Accrued severance pay
|
4,744
|
5,500
|
||||||
|
Long-term warranty provision
|
1,285
|
1,280
|
||||||
|
Total long-term liabilities
|
166,956
|
182,195
|
||||||
|
REDEEMABLE NON-CONTROLLING INTEREST
|
7,983
|
7,869
|
||||||
|
EQUITY:
|
||||||||
|
Ordinary shares
|
371
|
371
|
||||||
|
Treasury shares - at cost
|
(39,430
|
)
|
(39,430
|
)
|
||||
|
Additional paid-in capital
|
162,797
|
161,929
|
||||||
|
Capital fund related to non-controlling interest
|
(5,587
|
)
|
(5,587
|
)
|
||||
|
Accumulated other comprehensive income (loss), net
|
(5,903
|
)
|
(704
|
)
|
||||
|
Retained earnings
|
394,970
|
377,716
|
||||||
|
Total equity
|
507,218
|
494,295
|
||||||
|
Total liabilities and equity
|
$
|
872,803
|
$
|
867,653
|
||||
|
Caesarstone Ltd. and its subsidiaries
Condensed consolidated statements of income
|
|
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
|
U.S. dollars in thousands (except per share data)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
|
Revenues
|
$
|
180,272
|
$
|
163,462
|
$
|
350,710
|
$
|
309,494
|
||||||||
|
Cost of revenues
|
132,747
|
117,678
|
260,013
|
220,408
|
||||||||||||
|
Gross profit
|
47,525
|
45,784
|
90,697
|
89,086
|
||||||||||||
|
Operating expenses:
|
||||||||||||||||
|
Research and development
|
1,190
|
1,114
|
2,094
|
2,219
|
||||||||||||
|
Sales and Marketing
|
24,884
|
23,594
|
48,259
|
41,870
|
||||||||||||
|
General and administrative
|
13,761
|
11,794
|
26,548
|
24,937
|
||||||||||||
|
Legal settlements and loss contingencies, net
|
1,334
|
4,109
|
458
|
4,849
|
||||||||||||
|
Total operating expenses
|
41,169
|
40,611
|
77,359
|
73,875
|
||||||||||||
|
Operating income
|
6,356
|
5,173
|
13,338
|
15,211
|
||||||||||||
|
Finance income, net
|
(6,445
|
)
|
3,095
|
(7,793
|
)
|
(2,238
|
)
|
|||||||||
|
Income before taxes
|
12,801
|
2,078
|
21,131
|
17,449
|
||||||||||||
|
Taxes on income
|
1,571
|
598
|
3,245
|
2,127
|
||||||||||||
|
Net income
|
$
|
11,230
|
$
|
1,480
|
$
|
17,886
|
$
|
15,322
|
||||||||
|
Net loss (income) attributable to non-controlling interest
|
(83
|
)
|
225
|
(511
|
)
|
573
|
||||||||||
|
Net income attributable to controlling interest
|
$
|
11,147
|
$
|
1,705
|
$
|
17,375
|
$
|
15,895
|
||||||||
|
Basic net income per ordinary share (*)
|
$
|
0.32
|
$
|
0.05
|
$
|
0.50
|
$
|
0.45
|
||||||||
|
Diluted net income per ordinary share (*)
|
$
|
0.32
|
$
|
0.05
|
$
|
0.50
|
$
|
0.45
|
||||||||
|
Weighted average number of ordinary shares used in computing basic income per ordinary share
|
34,479,635
|
34,451,071
|
34,479,978
|
34,449,483
|
||||||||||||
|
Weighted average number of ordinary shares used in computing diluted income per ordinary share
|
34,524,257
|
34,539,958
|
34,527,107
|
34,525,127
|
||||||||||||
|
(*) The numerator for the calculation of net income per share for the three and six months ended June 30, 2022 and 2021, has been decreased by approximately $0.1 and $0.1 million, and $0.1 and $0.2 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
|
|
Six months ended June 30,
|
||||||||
|
U.S. dollars in thousands
|
2022
|
2021
|
||||||
|
(Unaudited)
|
||||||||
|
Cash flows from operating activities:
|
||||||||
|
Net income
|
$
|
17,886
|
$
|
15,322
|
||||
|
Adjustments required to reconcile net income to net cash provided by operating activities:
|
||||||||
|
Depreciation and amortization
|
18,023
|
17,689
|
||||||
|
Share-based compensation expense
|
868
|
996
|
||||||
|
Accrued severance pay, net
|
(72
|
)
|
72
|
|||||
|
Changes in deferred tax, net
|
(1,219
|
)
|
(1,856
|
)
|
||||
|
Capital (gain) loss
|
(2
|
)
|
(4
|
)
|
||||
|
Legal settlemnets and loss contingencies, net
|
458
|
4,849
|
||||||
|
Increase in trade receivables
|
(13,923
|
)
|
(2,307
|
)
|
||||
|
Increase in other accounts receivable and prepaid expenses
|
(2,363
|
)
|
(8,985
|
)
|
||||
|
Increase in inventories
|
(50,543
|
)
|
(15,383
|
)
|
||||
|
Increase in trade payables
|
13,987
|
19,049
|
||||||
|
Increase (decrease) in warranty provision
|
(35
|
)
|
16
|
|||||
|
Changes in right of use assets
|
10,088
|
3,987
|
||||||
|
Changes in lease liabilities
|
(18,807
|
)
|
(4,277
|
)
|
||||
|
Amortization of premium and accretion of discount on marketable securities, net
|
146
|
204
|
||||||
|
Changes in Accrued interest related to Marketable Securities
|
64
|
27
|
||||||
|
Decrease in accrued expenses and other liabilities including related parties
|
(2,307
|
)
|
(6,311
|
)
|
||||
|
Net cash provided by (used in) operating activities
|
(27,751
|
)
|
23,088
|
|||||
|
Cash flows from investing activities:
|
||||||||
|
Repayment of assumed shareholders loan related to acquisition
|
-
|
(1,966
|
)
|
|||||
|
Repayment of contingent consideration related to acquisition
|
-
|
(1,780
|
)
|
|||||
|
Purchase of property, plant and equipment
|
(8,611
|
)
|
(12,472
|
)
|
||||
|
Proceeds from sale of property, plant and equipment
|
7
|
5
|
||||||
|
Maturity of (investment in) marketable securities
|
10,801
|
(1,042
|
)
|
|||||
|
Decreae in long term deposits
|
134
|
40
|
||||||
|
Net cash provided by (used in) investing activities
|
2,331
|
(17,215
|
)
|
|||||
|
Cash flows from financing activities:
|
||||||||
|
Dividend paid
|
-
|
(7,234
|
)
|
|||||
|
Changes in short-term bank credits and long-term loans, including related parties
|
5,752
|
(10,983
|
)
|
|||||
|
Repayment of a financing leaseback related to Bar-Lev transaction
|
(648
|
)
|
(650
|
)
|
||||
|
Net cash provided by (used in) financing activities
|
5,104
|
(18,867
|
)
|
|||||
|
Effect of exchange rate differences on cash and cash equivalents
|
(516
|
)
|
34
|
|||||
|
Decrease in cash and cash equivalents and short-term bank deposits
|
(20,832
|
)
|
(12,960
|
)
|
||||
|
Cash and cash equivalents and short-term bank deposits at beginning of the period
|
74,315
|
114,248
|
||||||
|
Cash and cash equivalents and short-term bank deposits at end of the period
|
$
|
53,483
|
101,288
|
|||||
|
Non - cash investing:
|
||||||||
|
Changes in trade payables balances related to purchase of fixed assets
|
(867
|
)
|
(316
|
)
|
||||
|
Caesarstone Ltd. and its subsidiaries
|
|
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
|
U.S. dollars in thousands
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
|
Reconciliation of Gross profit to Adjusted Gross profit:
|
||||||||||||||||
|
Gross profit
|
$
|
47,525
|
$
|
45,784
|
$
|
90,697
|
$
|
89,086
|
||||||||
|
Share-based compensation expense (a)
|
59
|
37
|
149
|
142
|
||||||||||||
|
Amortization of assets related to acquisitions
|
76
|
160
|
154
|
694
|
||||||||||||
|
Adjusted Gross profit (Non-GAAP)
|
$
|
47,660
|
$
|
45,981
|
$
|
91,001
|
$
|
89,922
|
||||||||
|
(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 ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
|
U.S. dollars in thousands
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
|
Reconciliation of Net Income to Adjusted EBITDA:
|
||||||||||||||||
|
Net income
|
$
|
11,230
|
$
|
1,480
|
$
|
17,886
|
$
|
15,322
|
||||||||
|
Finance income, net
|
(6,445
|
)
|
3,095
|
(7,793
|
)
|
(2,238
|
)
|
|||||||||
|
Taxes on income
|
1,571
|
598
|
3,245
|
2,127
|
||||||||||||
|
Depreciation and amortization
|
8,823
|
8,781
|
18,023
|
17,689
|
||||||||||||
|
Legal settlements and loss contingencies, net (a)
|
1,334
|
4,109
|
458
|
4,849
|
||||||||||||
|
Contingent consideration adjustment related to acquisition
|
-
|
284
|
-
|
284
|
||||||||||||
|
Acquisition and integration related expenses
|
80
|
-
|
80
|
-
|
||||||||||||
|
Share-based compensation expense (b)
|
480
|
429
|
868
|
996
|
||||||||||||
|
Adjusted EBITDA (Non-GAAP)
|
$
|
17,073
|
$
|
18,776
|
$
|
32,767
|
$
|
39,029
|
||||||||
|
(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.
|
|
Caesarstone Ltd. and its subsidiaries
|
|
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
|
U.S. dollars in thousands (except per share data)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
|
|
||||||||||||||||
|
Reconciliation of net income attributable to controlling interest to adjusted net income attributable to controlling interest:
|
||||||||||||||||
|
Net income attributable to controlling interest
|
$
|
11,147
|
$
|
1,705
|
$
|
17,375
|
$
|
15,895
|
||||||||
|
Legal settlements and loss contingencies, net (a)
|
1,334
|
4,109
|
458
|
4,849
|
||||||||||||
|
Contingent consideration adjustment related to acquisition
|
-
|
284
|
-
|
284
|
||||||||||||
|
Amortization of assets related to acquisitions, net of tax
|
498
|
561
|
1,000
|
1,387
|
||||||||||||
|
Share-based compensation expense (b)
|
480
|
429
|
868
|
996
|
||||||||||||
|
Acquisition and integration related expenses
|
80
|
-
|
80
|
-
|
||||||||||||
|
Non cash revaluation of lease liabilities (c)
|
(7,478
|
)
|
889
|
(9,407
|
)
|
(973
|
)
|
|||||||||
|
Total adjustments
|
(5,086
|
)
|
6,272
|
(7,001
|
)
|
6,543
|
||||||||||
|
Less tax on non-tax adjustments (d)
|
(690
|
)
|
770
|
(1,075
|
)
|
797
|
||||||||||
|
Total adjustments after tax
|
(4,396
|
)
|
5,502
|
(5,926
|
)
|
5,746
|
||||||||||
|
Adjusted net income attributable to controlling interest (Non-GAAP)
|
$
|
6,751
|
$
|
7,207
|
$
|
11,449
|
$
|
21,641
|
||||||||
|
Adjusted diluted EPS (e)
|
$
|
0.20
|
$
|
0.21
|
$
|
0.33
|
$
|
0.63
|
||||||||
|
(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 diffrences deriving from revaluation of lease contracts in accoradance with FASB ASC 842.
|
|||
|
(d)
|
Tax adjustments for the three and six months ended June 30, 2022 and 2021, based on the effective tax rates.
|
|||
|
(e)
|
In calculating adjusted diluted (Non-GAAP) EPS for the three and six months ended June 30, 2022 and 2021, 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 June 30,
|
Six months ended June 30,
|
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||||||||||||||||
|
U.S. dollars in thousands
|
2022
|
2021
|
2022
|
2021
|
||||||||||||||||||||||||||||
|
(Unaudited)
|
(Unaudited)
|
YoY % change
|
YoY % change CCB
|
YoY % change
|
YoY % change CCB
|
|||||||||||||||||||||||||||
|
USA
|
$
|
93,039
|
$
|
77,844
|
$
|
178,276
|
$
|
148,675
|
19.5
|
%
|
19.5
|
%
|
19.9
|
%
|
19.9
|
%
|
||||||||||||||||
|
Canada
|
25,363
|
21,946
|
49,097
|
39,725
|
15.6
|
%
|
20.0
|
%
|
23.6
|
%
|
26.1
|
%
|
||||||||||||||||||||
|
Latin America
|
1,272
|
741
|
2,047
|
1,599
|
71.7
|
%
|
71.8
|
%
|
28.0
|
%
|
28.0
|
%
|
||||||||||||||||||||
|
America's
|
119,674
|
100,531
|
229,420
|
189,999
|
19.0
|
%
|
20.0
|
%
|
20.7
|
%
|
21.3
|
%
|
||||||||||||||||||||
|
Australia
|
30,195
|
31,597
|
55,734
|
58,769
|
-4.4
|
%
|
3.1
|
%
|
-5.2
|
%
|
1.7
|
%
|
||||||||||||||||||||
|
Asia
|
8,157
|
7,370
|
17,882
|
15,147
|
10.7
|
%
|
15.0
|
%
|
18.1
|
%
|
19.6
|
%
|
||||||||||||||||||||
|
APAC
|
38,352
|
38,967
|
73,616
|
73,916
|
-1.6
|
%
|
5.4
|
%
|
-0.4
|
%
|
5.4
|
%
|
||||||||||||||||||||
|
EMEA
|
15,827
|
15,852
|
31,050
|
28,570
|
-0.2
|
%
|
11.7
|
%
|
8.7
|
%
|
18.1
|
%
|
||||||||||||||||||||
|
Israel
|
6,419
|
8,112
|
16,624
|
17,009
|
-20.9
|
%
|
-19.6
|
%
|
-2.3
|
%
|
1.1
|
%
|
||||||||||||||||||||
|
Total Revenues
|
$
|
180,272
|
$
|
163,462
|
$
|
350,710
|
$
|
309,494
|
10.3
|
%
|
13.7
|
%
|
13.3
|
%
|
16.1
|
%
|
||||||||||||||||