\n\u2013 Record Third Quarter Revenue up 10.6% to $180.7 Million and up 14.9% on a Constant Currency Basis \u2013\n<\/p>\n
\n\u2013 Net Loss Attributable to Controlling Interest of $0.5 Million, or ($0.02) Per Share \u2013\n<\/p>\n
\n\u2013 Adjusted EBITDA of $13.4 Million \u2013\n<\/p>\n
\n\u2013 Revises Full Year 2022 Outlook \u2013\n<\/p>\n
MP MENASHE, Israel–(BUSINESS WIRE)–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, 2022.\n<\/p>\n
\nYuval Dagim, Caesarstone\u2019s Chief Executive Officer commented, \u201cOur third quarter results represent further progress against our multi-faceted growth strategy to transform Caesarstone into a leading premium, multi-material countertop company. We produced our 7th consecutive quarter of double-digit revenue growth on a constant currency basis, leading to another quarter of record revenue. We are implementing successful pricing actions that are helping to mitigate increasing costs of raw materials and shipping, and we plan to enact additional actions in the months ahead. We also continue to benefit from the successful integration of our acquired businesses in addition to the expansion of our innovative digital platforms across our global footprint.\n<\/p>\n
\nWhile the execution of our strategy remains effective, foreign exchange rates as a result of appreciation of the U.S Dollar against all other currencies have become an increasing headwind to our top and bottom line, as reflected in third quarter results. Price is more than offsetting softening volume attributable to the challenging macroeconomic environment, particularly in the U.S., which has weighed on renovation and new construction activity. As a result of these macroeconomic conditions, we have already taken measures to align our production and inventory levels to new conditions in the market and plan to continue to take actions to reduce costs. We have revised our full year 2022 outlook predominately to reflect unfavorable foreign exchange rate impacts that are expected to continue through year end, as well as higher shipping and other related costs. I am proud of our entire team\u2019s efforts to execute the initiatives under our global growth acceleration plan during these complex times. I am confident that we have the right plan in place to create additional value in our business by leveraging our world-renowned brand, multi-material product offerings, and innovative go-to-market initiatives.\u201d\n<\/p>\n
\nThird Quarter 2022 Results\n<\/p>\n
\nRevenue in the third quarter of 2022 grew 10.6% to a third quarter record of $180.7 million compared to $163.3 million in the prior year quarter. On a constant currency basis, third quarter revenue was higher by 14.9% year-over-year. Revenue growth was primarily driven by higher pricing across the majority of our global footprint particularly in North America.\n<\/p>\n
\nGross margin in the third quarter of 2022 was 23.0% compared to 26.2% in the prior year quarter. Adjusted gross margin in the third quarter was 23.1% compared to 26.3% in the prior year quarter. The majority of the year-over-year reduction in gross margin reflected unfavorable foreign currency exchange rate fluctuations as a result of appreciation of the U.S dollar against all other currencies, with the remainder attributable to higher logistics, shipping and raw material costs, which were partially offset by pricing actions.\n<\/p>\n
\nOperating expenses in the third quarter of 2022 were $38.5 million, or 21.3% of revenue, compared to $33.9 million, or 20.7% of revenue in the prior year quarter mainly due to higher marketing and selling expenses. Excluding legal settlements and loss contingencies, adjusted operating expenses were 20.9% of revenue, compared to 21.0% in the prior year quarter.\n<\/p>\n
\nOperating income in the third quarter of 2022 was $3.2 million compared to $8.9 million in the prior year quarter. The year-over-year decrease mainly reflects higher operating expenses.\n<\/p>\n
\nAdjusted EBITDA in the third quarter of 2022, which excludes expenses for non-cash share-based compensation, legal settlements and loss contingencies and for non-recurring items, was $13.4 million, representing a margin of 7.4%. This compared to adjusted EBITDA of $17.7 million, representing a margin of 10.8% in the prior year quarter. The year-over-year decrease primarily reflects the lower gross margin.\n<\/p>\n
\nFinance expenses in the third quarter of 2022 was $4.3 million compared to finance expense of $2.4 million in the prior year quarter. The difference primarily reflects changes in value of financial assets and liabilities denominated in currencies other than U.S. dollars, a result of foreign currency exchange rate fluctuations.\n<\/p>\n
\nNet loss attributable to controlling interest for the third quarter of 2022 was $0.5 million compared to net income of $5.9 million in the prior year quarter. Net loss per share for the third quarter was $0.02 compared to net income per share of $0.17 in the prior year quarter. Adjusted diluted net income per share for the third quarter was $0.01 on 34.6 million shares, compared to adjusted diluted net income per share of $0.20 in the prior year quarter on a similar share count.\n<\/p>\n
\nBalance Sheet & Liquidity\n<\/p>\n
\nAs of September 30, 2022, the Company\u2019s balance sheet included cash, cash equivalents and short-term bank deposits and short and long-term marketable securities of $66.2 million and total debt to financial institutions of $34.5 million.\n<\/p>\n
\nDividend\n<\/p>\n
\nThe Company\u2019s 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 \u201ccalculated dividend\u201d), subject in each case to approval by the Company\u2019s board of directors. No dividend is paid if it would be less than $0.10 per share. Pursuant to the Company\u2019s dividend policy, the Company does not intend to pay a dividend for the third quarter of 2022, based on its reported net loss attributable to controlling interest for the period.\n<\/p>\n
\nOutlook\n<\/p>\n
\nThe Company revises its expectation for 2022 revenue to be in the range of $690 million to $700 million, compared to a prior range of $710 million to $725 million, with the decrease predominantly attributable to the impact of foreign currency exchange rates. Additionally, the Company has moderated its volume expectations for the year due to softening economic conditions as higher interest rates and inflation have continued to pressure renovation and new construction activity, particularly in the U.S. Additionally, the Company revises its expectation for Adjusted EBITDA as a percentage of revenues to be approximately 8.0% to 8.5% for the full year 2022 compared to 10.6% in 2021 due predominantly to unfavorable foreign currency exchange rates and to a lesser extent due to higher shipping and logistics related costs.\n<\/p>\n
\nWebcast and Conference Call Details\n<\/p>\n
\nThe Company will host a 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 can be accessed through the Investor Relations section of the Company\u2019s website at ir.caesarstone.com. For those unable to access the webcast, the conference call will be accessible domestically or internationally, by dialing 1-855-327-6837 and 1-631-891-4304, respectively. The toll-free Israeli number is 1 80 945 8327. Upon dialing in, please request to join the Caesarstone Third Quarter 2022 Earnings Conference Call.\n<\/p>\n
\nTo 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 10020291. The replay will be available beginning at 11:30 a.m. ET on Wednesday, November 9, 2022 and will last through 11:59 p.m. ET on Wednesday, November 16, 2022.\n<\/p>\n
\nAbout Caesarstone\n<\/p>\n
\nCaesarstone 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\u2019s 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.\n<\/p>\n
\nSince 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,<\/a> Facebook<\/a>, Twitter,<\/a> YouTube<\/a>, Pinterest<\/a>, and Instagram<\/a>\n<\/p>\n \nNon-GAAP Financial Measures\n<\/p>\n \nThe 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.\n<\/p>\n \nForward-Looking Statements\n<\/p>\n \nInformation 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 \u201csafe harbor\u201d 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 \u201cgoals,” \u201cintend,\u201d \u201cseek,\u201d \u201canticipate,\u201d \u201cbelieve,\u201d \u201ccould,\u201d \u201ccontinue,\u201d \u201cexpect,\u201d \u201cestimate,\u201d \u201cmay,\u201d \u201cplan,\u201d \u201coutlook,\u201d \u201cfuture\u201d and \u201cproject\u201d 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\u2019s sustainability goals and plans, intentions, expectations, assumptions, goals and beliefs regarding the Company\u2019s 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\u2019s 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\u2019s 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\u2019s 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\u2019s ability to develop, produce and deliver high quality and safe products; fluctuations in currency exchange rates against the U.S. Dollar; Company\u2019s ability to raise funds to finance our current and future capital needs; Company\u2019s ability to build-out and expand into certain markets and successfully integrate our acquisitions; the Company\u2019s 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\u2019s 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\u2019s 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 \u201cSpecial Note Regarding Forward-Looking Statements and Risk Factor Summary\u201d in our most recent annual report on Form 20-F filed with the Securities and Exchange Commission (the \u201cSEC\u201d) on March 15, 2022, and in other documents filed by Caesarstone with the SEC, which are available free of charge at www.sec.gov<\/a>. 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.\n<\/p>\n \nCaesarstone Ltd. and its subsidiaries\n<\/p>\n \nCondensed consolidated balance sheets\n<\/p>\n As of \nSeptember 30,\n<\/p>\n \n2022\n<\/p>\n \n\u00a0\n<\/p>\n \nDecember 31,\n<\/p>\n \n2021\n<\/p>\n \n(Unaudited)\n<\/p>\n \n\u00a0\n<\/p>\n \n(Audited)\n<\/p>\n ASSETS<\/p>\n \u00a0 \u00a0 \n$\n<\/p>\n \n58,560\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n74,315\n<\/p>\n \n\u00a0\n<\/p>\n Short-term available for sale marketable securities<\/p>\n \n\u00a0\n<\/p>\n \n6,590\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n11,228\n<\/p>\n \n\u00a0\n<\/p>\n Trade receivables, net<\/p>\n \n\u00a0\n<\/p>\n \n90,183\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n82,815\n<\/p>\n \n\u00a0\n<\/p>\n Other accounts receivable and prepaid expenses<\/p>\n \n\u00a0\n<\/p>\n \n32,553\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n35,443\n<\/p>\n \n\u00a0\n<\/p>\n Inventories<\/p>\n \n\u00a0\n<\/p>\n \n247,141\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n204,725\n<\/p>\n \n\u00a0\n<\/p>\n \u00a0 \n\u00a0\n<\/p>\n \n435,027\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n408,526\n<\/p>\n \n\u00a0\n<\/p>\n \u00a0 \u00a0 \n\u00a0\n<\/p>\n \n3,360\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n4,090\n<\/p>\n \n\u00a0\n<\/p>\n Other long-term receivables<\/p>\n \n\u00a0\n<\/p>\n \n3,147\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n3,832\n<\/p>\n \n\u00a0\n<\/p>\n Deferred tax assets, net<\/p>\n \n\u00a0\n<\/p>\n \n14,669\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n10,880\n<\/p>\n \n\u00a0\n<\/p>\n Long-term deposits and prepaid expenses<\/p>\n \n\u00a0\n<\/p>\n \n394\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n449\n<\/p>\n \n\u00a0\n<\/p>\n Operating lease right-of-use assets<\/p>\n \n\u00a0\n<\/p>\n \n142,253\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n154,652\n<\/p>\n \n\u00a0\n<\/p>\n Long-term available for sale marketable securities<\/p>\n \n\u00a0\n<\/p>\n \n1,002\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n8,647\n<\/p>\n \n\u00a0\n<\/p>\n Property, plant and equipment, net<\/p>\n \n\u00a0\n<\/p>\n \n199,786\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n221,150\n<\/p>\n \n\u00a0\n<\/p>\n Goodwill and intangible assets, net<\/p>\n \n\u00a0\n<\/p>\n \n53,741\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n55,427\n<\/p>\n \n\u00a0\n<\/p>\n \u00a0 \n\u00a0\n<\/p>\n \n418,352\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n459,127\n<\/p>\n \n\u00a0\n<\/p>\n \u00a0 \n$\n<\/p>\n \n853,379\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n867,653\n<\/p>\n \n\u00a0\n<\/p>\n \u00a0 \u00a0 \u00a0 \n$\n<\/p>\n \n28,968\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n12,523\n<\/p>\n \n\u00a0\n<\/p>\n Trade payables<\/p>\n \n\u00a0\n<\/p>\n \n84,505\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n81,369\n<\/p>\n \n\u00a0\n<\/p>\n Related parties and other loans<\/p>\n \n\u00a0\n<\/p>\n \n291\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n2,276\n<\/p>\n \n\u00a0\n<\/p>\n Short term legal settlements and loss contingencies<\/p>\n \n\u00a0\n<\/p>\n \n14,067\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n22,592\n<\/p>\n \n\u00a0\n<\/p>\n Accrued expenses and other liabilities<\/p>\n \n\u00a0\n<\/p>\n \n64,012\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n64,534\n<\/p>\n \n\u00a0\n<\/p>\n \u00a0 \n\u00a0\n<\/p>\n \n191,843\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n183,294\n<\/p>\n \n\u00a0\n<\/p>\n \u00a0 \u00a0 \n\u00a0\n<\/p>\n \n5,514\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n6,240\n<\/p>\n \n\u00a0\n<\/p>\n Legal settlements and loss contingencies long-term<\/p>\n \n\u00a0\n<\/p>\n \n22,303\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n20,859\n<\/p>\n \n\u00a0\n<\/p>\n Deferred tax liabilities, net<\/p>\n \n\u00a0\n<\/p>\n \n4,519\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n4,992\n<\/p>\n \n\u00a0\n<\/p>\n Long-term lease liabilities<\/p>\n \n\u00a0\n<\/p>\n \n122,374\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n143,324\n<\/p>\n \n\u00a0\n<\/p>\n Accrued severance pay<\/p>\n \n\u00a0\n<\/p>\n \n4,672\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n5,500\n<\/p>\n \n\u00a0\n<\/p>\n Long-term warranty provision<\/p>\n \n\u00a0\n<\/p>\n \n1,251\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n1,280\n<\/p>\n \n\u00a0\n<\/p>\n \u00a0 \n\u00a0\n<\/p>\n \n160,633\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n182,195\n<\/p>\n \n\u00a0\n<\/p>\n \u00a0 \n\u00a0\n<\/p>\n \n7,978\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n7,869\n<\/p>\n \n\u00a0\n<\/p>\n \u00a0 \u00a0 \n\u00a0\n<\/p>\n \n371\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n371\n<\/p>\n \n\u00a0\n<\/p>\n Treasury shares – at cost<\/p>\n \n\u00a0\n<\/p>\n \n(39,430\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n(39,430\n<\/p>\n \n)\n<\/p>\n Additional paid-in capital<\/p>\n \n\u00a0\n<\/p>\n \n163,171\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n161,929\n<\/p>\n \n\u00a0\n<\/p>\n Capital fund related to non-controlling interest<\/p>\n \n\u00a0\n<\/p>\n \n(5,587\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n(5,587\n<\/p>\n \n)\n<\/p>\n Accumulated other comprehensive income (loss), net<\/p>\n \n\u00a0\n<\/p>\n \n(11,418\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n(704\n<\/p>\n \n)\n<\/p>\n Retained earnings<\/p>\n \n\u00a0\n<\/p>\n \n385,818\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n377,716\n<\/p>\n \n\u00a0\n<\/p>\n \u00a0 \n\u00a0\n<\/p>\n \n492,925\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n494,295\n<\/p>\n \n\u00a0\n<\/p>\n \u00a0 \n$\n<\/p>\n \n853,379\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n867,653\n<\/p>\n \n\u00a0\n<\/p>\n \nCaesarstone Ltd. and its subsidiaries\n<\/p>\n \nCondensed consolidated statements of income\n<\/p>\n \nThree months ended\n<\/p>\n \nSeptember 30,\n<\/p>\n \nNine months ended\n<\/p>\n \nSeptember 30,\n<\/p>\n U.S. dollars in thousands (except per share data)<\/p>\n \n\u00a0\n<\/p>\n \n2022\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n2021\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n2022\n<\/p>\n \n\u00a0\n<\/p>\n \n2021\n<\/p>\n (Unaudited)<\/p>\n (Unaudited)<\/p>\n \u00a0 \n$\n<\/p>\n \n180,727\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n163,341\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n531,437\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n472,835\n<\/p>\n Cost of revenues<\/p>\n \n\u00a0\n<\/p>\n \n139,110\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n120,607\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n399,123\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n341,015\n<\/p>\n \u00a0 \n\u00a0\n<\/p>\n \n41,617\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n42,734\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n132,314\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n131,820\n<\/p>\n \u00a0 Research and development<\/p>\n \n\u00a0\n<\/p>\n \n853\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n820\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n2,947\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n3,039\n<\/p>\n Sales and Marketing<\/p>\n \n\u00a0\n<\/p>\n \n23,821\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n21,261\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n72,080\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n63,131\n<\/p>\n General and administrative<\/p>\n \n\u00a0\n<\/p>\n \n13,187\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n12,162\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n39,735\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n37,099\n<\/p>\n Legal settlements and loss contingencies, net<\/p>\n \n\u00a0\n<\/p>\n \n601\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(385\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n1,059\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n4,464\n<\/p>\n \u00a0 \n\u00a0\n<\/p>\n \n38,462\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n33,858\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n115,821\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n107,733\n<\/p>\n \u00a0 \n\u00a0\n<\/p>\n \n3,155\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n8,876\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n16,493\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n24,087\n<\/p>\n Finance expenses (income), net<\/p>\n \n\u00a0\n<\/p>\n \n4,307\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n2,403\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(3,486\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n165\n<\/p>\n \u00a0 \n\u00a0\n<\/p>\n \n(1,152\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n6,473\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n19,979\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n23,922\n<\/p>\n Taxes on income<\/p>\n \n\u00a0\n<\/p>\n \n(788\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n603\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n2,457\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n2,730\n<\/p>\n \u00a0 \n$\n<\/p>\n \n(364\n<\/p>\n \n)\n<\/p>\n \n$\n<\/p>\n \n5,870\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n17,522\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n21,192\n<\/p>\n \u00a0 \n\u00a0\n<\/p>\n \n(99\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n78\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(610\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n651\n<\/p>\n \u00a0 \n$\n<\/p>\n \n(463\n<\/p>\n \n)\n<\/p>\n \n$\n<\/p>\n \n5,948\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n16,912\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n21,843\n<\/p>\n Basic net income (loss) per ordinary share (*)<\/p>\n \n$\n<\/p>\n \n(0.02\n<\/p>\n \n)\n<\/p>\n \n$\n<\/p>\n \n0.17\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n0.49\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n0.62\n<\/p>\n Diluted net income (loss) per ordinary share (*)<\/p>\n \n$\n<\/p>\n \n(0.02\n<\/p>\n \n)\n<\/p>\n \n$\n<\/p>\n \n0.17\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n0.48\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n0.62\n<\/p>\n Weighted average number of ordinary shares used in computing basic income per ordinary share<\/p>\n \n\u00a0\n<\/p>\n \n34,493,599\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n34,463,460\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n34,485,587\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n34,472,016\n<\/p>\n Weighted average number of ordinary shares used in computing diluted income per ordinary share<\/p>\n \n\u00a0\n<\/p>\n \n34,493,599\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n34,529,130\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n34,543,319\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n34,558,509\n<\/p>\n \u00a0 \nCaesarstone Ltd. and its subsidiaries\n<\/p>\n \nSelected Condensed consolidated statements of cash flows\n<\/p>\n \nNine months ended\n<\/p>\n \nSeptember 30,\n<\/p>\n U.S. dollars in thousands<\/p>\n \n\u00a0\n<\/p>\n \n2022\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n2021\n<\/p>\n \n\u00a0\n<\/p>\n \n(Unaudited)\n<\/p>\n Cash flows from operating activities:<\/span><\/p>\n \u00a0 \n$\n<\/p>\n \n17,522\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n21,192\n<\/p>\n \n\u00a0\n<\/p>\n Adjustments required to reconcile net income to net cash provided by operating activities:<\/p>\n Depreciation and amortization<\/p>\n \n\u00a0\n<\/p>\n \n27,223\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n26,491\n<\/p>\n \n\u00a0\n<\/p>\n Share-based compensation expense<\/p>\n \n\u00a0\n<\/p>\n \n1,243\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n1,387\n<\/p>\n \n\u00a0\n<\/p>\n Accrued severance pay, net<\/p>\n \n\u00a0\n<\/p>\n \n(84\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n70\n<\/p>\n \n\u00a0\n<\/p>\n Changes in deferred tax, net<\/p>\n \n\u00a0\n<\/p>\n \n(4,001\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n(1,587\n<\/p>\n \n)\n<\/p>\n Capital (gain) loss<\/p>\n \n\u00a0\n<\/p>\n \n65\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(3\n<\/p>\n \n)\n<\/p>\n Legal settlements and loss contingencies, net<\/p>\n \n\u00a0\n<\/p>\n \n1,060\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n4,464\n<\/p>\n \n\u00a0\n<\/p>\n Increase in trade receivables<\/p>\n \n\u00a0\n<\/p>\n \n(10,810\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n(1,139\n<\/p>\n \n)\n<\/p>\n Decrease (increase) in other accounts receivable and prepaid expenses<\/p>\n \n\u00a0\n<\/p>\n \n1,377\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(12,349\n<\/p>\n \n)\n<\/p>\n Increase in inventories<\/p>\n \n\u00a0\n<\/p>\n \n(50,098\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n(24,880\n<\/p>\n \n)\n<\/p>\n Increase in trade payables<\/p>\n \n\u00a0\n<\/p>\n \n3,305\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n13,843\n<\/p>\n \n\u00a0\n<\/p>\n Increase (decrease) in warranty provision<\/p>\n \n\u00a0\n<\/p>\n \n(128\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n8\n<\/p>\n \n\u00a0\n<\/p>\n Changes in right of use assets<\/p>\n \n\u00a0\n<\/p>\n \n10,533\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(18,863\n<\/p>\n \n)\n<\/p>\n Changes in lease liabilities<\/p>\n \n\u00a0\n<\/p>\n \n(19,663\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n19,128\n<\/p>\n \n\u00a0\n<\/p>\n Amortization of premium and accretion of discount on marketable securities, net<\/p>\n \n\u00a0\n<\/p>\n \n193\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n304\n<\/p>\n \n\u00a0\n<\/p>\n Changes in Accrued interest related to Marketable Securities<\/p>\n \n\u00a0\n<\/p>\n \n44\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n25\n<\/p>\n \n\u00a0\n<\/p>\n Decrease in accrued expenses and other liabilities including related parties<\/p>\n \n\u00a0\n<\/p>\n \n(2,073\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n(6,646\n<\/p>\n \n)\n<\/p>\n \u00a0 \n\u00a0\n<\/p>\n \n(24,292\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n21,445\n<\/p>\n \n\u00a0\n<\/p>\n \u00a0<\/p>\n \u00a0 \u00a0 \n\u00a0\n<\/p>\n \n(2,245\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n–\n<\/p>\n \n\u00a0\n<\/p>\n Repayment of assumed shareholders loan related to acquisition<\/p>\n \n\u00a0\n<\/p>\n \n–\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(1,966\n<\/p>\n \n)\n<\/p>\n Repayment of contingent consideration related to acquisition<\/p>\n \n\u00a0\n<\/p>\n \n–\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(1,780\n<\/p>\n \n)\n<\/p>\n Purchase of property, plant and equipment<\/p>\n \n\u00a0\n<\/p>\n \n(12,771\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n(26,024\n<\/p>\n \n)\n<\/p>\n Proceeds from sale of property, plant and equipment<\/p>\n \n\u00a0\n<\/p>\n \n9\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n7\n<\/p>\n \n\u00a0\n<\/p>\n Maturity of (investment in) marketable securities<\/p>\n \n\u00a0\n<\/p>\n \n11,901\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(927\n<\/p>\n \n)\n<\/p>\n Decrease (increase) in long term deposits<\/p>\n \n\u00a0\n<\/p>\n \n341\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(150\n<\/p>\n \n)\n<\/p>\n \u00a0 \n\u00a0\n<\/p>\n \n(2,765\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n(30,840\n<\/p>\n \n)\n<\/p>\n \u00a0<\/p>\n \u00a0 \u00a0 \n\u00a0\n<\/p>\n \n(8,625\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n(7,234\n<\/p>\n \n)\n<\/p>\n Changes in short-term bank credits and long-term loans, including related parties<\/p>\n \n\u00a0\n<\/p>\n \n21,947\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(11,096\n<\/p>\n \n)\n<\/p>\n Repayment of a financing leaseback related to Bar-Lev transaction<\/p>\n \n\u00a0\n<\/p>\n \n(859\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n(981\n<\/p>\n \n)\n<\/p>\n \u00a0 \n\u00a0\n<\/p>\n \n12,463\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(19,311\n<\/p>\n \n)\n<\/p>\n \u00a0<\/p>\n \u00a0 \n\u00a0\n<\/p>\n \n(1,161\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n(492\n<\/p>\n \n)\n<\/p>\n \u00a0 \n\u00a0\n<\/p>\n \n(15,755\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n(29,198\n<\/p>\n \n)\n<\/p>\n Cash and cash equivalents and short-term bank deposits at beginning of the period<\/p>\n \n\u00a0\n<\/p>\n \n74,315\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n114,248\n<\/p>\n \n\u00a0\n<\/p>\n \u00a0 \n$\n<\/p>\n \n58,560\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n85,050\n<\/p>\n \n\u00a0\n<\/p>\n \u00a0 Changes in trade payables balances related to purchase of fixed assets<\/p>\n \n\u00a0\n<\/p>\n \n(441\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n(737\n<\/p>\n \n)\n<\/p>\n Caesarstone Ltd. and its subsidiaries<\/p>\n \u00a0<\/p>\n \nThree months ended\n<\/p>\n \nSeptember 30,\n<\/p>\n \n\u00a0\n<\/p>\n \nNine months ended\n<\/p>\n \nSeptember 30,\n<\/p>\n U.S. dollars in thousands<\/p>\n \n2022\n<\/p>\n \n\u00a0\n<\/p>\n \n2021\n<\/p>\n \n\u00a0\n<\/p>\n \n2022\n<\/p>\n \n\u00a0\n<\/p>\n \n2021\n<\/p>\n \n(Unaudited)\n<\/p>\n \n\u00a0\n<\/p>\n \n(Unaudited)\n<\/p>\n Reconciliation of Gross profit to Adjusted Gross profit:<\/p>\n Gross profit<\/p>\n \n$\n<\/p>\n \n41,617\n<\/p>\n \n$\n<\/p>\n \n42,734\n<\/p>\n \n$\n<\/p>\n \n132,314\n<\/p>\n \n$\n<\/p>\n \n131,820\n<\/p>\n Share-based compensation expense (a)<\/p>\n \n\u00a0\n<\/p>\n \n79\n<\/p>\n \n\u00a0\n<\/p>\n \n72\n<\/p>\n \n\u00a0\n<\/p>\n \n228\n<\/p>\n \n\u00a0\n<\/p>\n \n214\n<\/p>\n Amortization of assets related to acquisitions<\/p>\n \n\u00a0\n<\/p>\n \n80\n<\/p>\n \n\u00a0\n<\/p>\n \n79\n<\/p>\n \n\u00a0\n<\/p>\n \n234\n<\/p>\n \n\u00a0\n<\/p>\n \n773\n<\/p>\n Adjusted Gross profit (Non-GAAP)<\/p>\n \n$\n<\/p>\n \n41,776\n<\/p>\n \n$\n<\/p>\n \n42,885\n<\/p>\n \n$\n<\/p>\n \n132,777\n<\/p>\n \n$\n<\/p>\n \n132,807\n<\/p>\n (a)<\/p>\n Share-based compensation includes expenses related to stock options and restricted stock units granted to employees and directors of the Company. \nThree months ended\n<\/p>\n \nSeptember 30,\n<\/p>\n \n\u00a0\n<\/p>\n \nNine months ended\n<\/p>\n \nSeptember 30,\n<\/p>\n U.S. dollars in thousands<\/p>\n \n\u00a0\n<\/p>\n \n2022\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n2021\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n2022\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n2021\n<\/p>\n (Unaudited)<\/p>\n (Unaudited) Net income (loss)<\/p>\n \n$\n<\/p>\n \n(364\n<\/p>\n \n)\n<\/p>\n \n$\n<\/p>\n \n5,870\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n17,522\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n21,192\n<\/p>\n Finance expenses (income), net<\/p>\n \n\u00a0\n<\/p>\n \n4,307\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n2,403\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(3,486\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n165\n<\/p>\n Taxes on income<\/p>\n \n\u00a0\n<\/p>\n \n(788\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n603\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n2,457\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n2,730\n<\/p>\n Depreciation and amortization<\/p>\n \n\u00a0\n<\/p>\n \n9,200\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n8,802\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n27,223\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n26,491\n<\/p>\n Legal settlements and loss contingencies, net (a)<\/p>\n \n\u00a0\n<\/p>\n \n602\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(385\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n1,060\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n4,464\n<\/p>\n Contingent consideration adjustment related to acquisition<\/p>\n \n\u00a0\n<\/p>\n \n57\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n–\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n57\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n284\n<\/p>\n Acquisition and integration related expenses<\/p>\n \n\u00a0\n<\/p>\n \n–\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n–\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n80\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n–\n<\/p>\n Share-based compensation expense (b)<\/p>\n \n\u00a0\n<\/p>\n \n375\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n391\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n1,243\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n1,387\n<\/p>\n \u00a0 \n$\n<\/p>\n \n13,389\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n17,684\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n46,156\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n56,713\n<\/p>\n (a)<\/p>\n Consists primarily of legal settlements expenses and loss contingencies, net, related to product liability claims. Share-based compensation includes expenses related to stock options and restricted stock units granted to employees and directors of the Company. \u00a0<\/p>\n \nThree months ended\n<\/p>\n \nSeptember 30,\n<\/p>\n \n\u00a0\n<\/p>\n \nNine months ended\n<\/p>\n \nSeptember 30,\n<\/p>\n U.S. dollars in thousands (except per share data)<\/p>\n \n\u00a0\n<\/p>\n \n2022\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n2021\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n2022\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n2021\n<\/p>\n \n\u00a0\n<\/p>\n \n(Unaudited)\n<\/p>\n \n\u00a0\n<\/p>\n \n(Unaudited)\n<\/p>\n Reconciliation of net income attributable to controlling interest to adjusted net income (loss) attributable to controlling interest:<\/p>\n Net income (loss) attributable to controlling interest<\/p>\n \n$\n<\/p>\n \n(463\n<\/p>\n \n)\n<\/p>\n \n$\n<\/p>\n \n5,948\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n16,912\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n21,843\n<\/p>\n \n\u00a0\n<\/p>\n Legal settlements and loss contingencies, net (a)<\/p>\n \n\u00a0\n<\/p>\n \n602\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(385\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n1,060\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n4,464\n<\/p>\n \n\u00a0\n<\/p>\n Contingent consideration adjustment related to acquisition<\/p>\n \n\u00a0\n<\/p>\n \n57\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n–\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n57\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n284\n<\/p>\n \n\u00a0\n<\/p>\n Amortization of assets related to acquisitions, net of tax<\/p>\n \n\u00a0\n<\/p>\n \n548\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n502\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n1,548\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n1,889\n<\/p>\n \n\u00a0\n<\/p>\n Share-based compensation expense (b)<\/p>\n \n\u00a0\n<\/p>\n \n375\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n391\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n1,243\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n1,387\n<\/p>\n \n\u00a0\n<\/p>\n Acquisition and integration related expenses<\/p>\n \n\u00a0\n<\/p>\n \n–\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n–\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n80\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n–\n<\/p>\n \n\u00a0\n<\/p>\n Non cash revaluation of lease liabilities (c)<\/p>\n \n\u00a0\n<\/p>\n \n(796\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n430\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(10,203\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n(543\n<\/p>\n \n)\n<\/p>\n Total adjustments<\/p>\n \n\u00a0\n<\/p>\n \n786\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n938\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(6,215\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n7,481\n<\/p>\n \n\u00a0\n<\/p>\n Less tax on non-tax adjustments (d)<\/p>\n \n\u00a0\n<\/p>\n \n311\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n56\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(764\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n854\n<\/p>\n \n\u00a0\n<\/p>\n Total adjustments after tax<\/p>\n \n\u00a0\n<\/p>\n \n476\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n882\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(5,451\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n6,628\n<\/p>\n \n\u00a0\n<\/p>\n \u00a0 \n$\n<\/p>\n \n13\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n6,830\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n11,461\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n28,471\n<\/p>\n \n\u00a0\n<\/p>\n Adjusted diluted EPS (e)<\/p>\n \n$\n<\/p>\n \n0.01\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n0.20\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n0.33\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n0.82\n<\/p>\n \n\u00a0\n<\/p>\n Contacts <\/p>\n \nInvestor Relations: \n\u00a0\n<\/p>\n
\nU.S. dollars in thousands<\/p>\n
\nCURRENT ASSETS:<\/p>\n
\nCash and cash equivalents and short-term bank deposits<\/p>\n
\nTotal current assets<\/p>\n
\nLONG-TERM ASSETS:<\/p>\n
\nSeverance pay fund<\/p>\n
\nTotal long-term assets<\/p>\n
\nTotal assets<\/p>\n
\nLIABILITIES AND EQUITY<\/p>\n
\nCURRENT LIABILITIES:<\/p>\n
\nShort-term bank credit<\/p>\n
\nTotal current liabilities<\/p>\n
\nLONG-TERM LIABILITIES:<\/p>\n
\nLong-term bank and other loans and financing liability of land from a related party<\/p>\n
\nTotal long-term liabilities<\/p>\n
\nREDEEMABLE NON-CONTROLLING INTEREST<\/p>\n
\nEQUITY:<\/p>\n
\nOrdinary shares<\/p>\n
\nTotal equity<\/p>\n
\nTotal liabilities and equity<\/p>\n
\nRevenues<\/p>\n
\nGross profit<\/p>\n
\nOperating expenses:<\/p>\n
\nTotal operating expenses<\/p>\n
\nOperating income<\/p>\n
\nIncome before taxes<\/p>\n
\nNet income (loss)<\/p>\n
\nNet loss (income) attributable to non-controlling interest<\/p>\n
\nNet income (loss) attributable to controlling interest<\/p>\n
\n(*) The numerator for the calculation of net income per share for the three and nine months ended September 30, 2022 and 2021, has been decreased by approximately $0.1 and $0.1 million, and $0.2 and $0.3 million respectively, to reflect the adjustment to redemption value associated with the redeemable non-controlling interest.<\/p>\n
\nNet income<\/p>\n
\nNet cash provided by (used in) operating activities<\/p>\n
\nCash flows from investing activities:<\/span><\/p>\n
\nNet cash paid for acquisitions<\/p>\n
\nNet cash used in investing activities<\/p>\n
\nCash flows from financing activities:<\/span><\/p>\n
\nDividend paid<\/p>\n
\nNet cash provided by (used in) financing activities<\/p>\n
\nEffect of exchange rate differences on cash and cash equivalents<\/p>\n
\nDecrease in cash and cash equivalents and short-term bank deposits<\/p>\n
\nCash and cash equivalents and short-term bank deposits at end of the period<\/p>\n
\nNon – cash investing:<\/span><\/p>\n
\nCaesarstone Ltd. and its subsidiaries<\/p>\n
\nReconciliation of Net Income (loss) to Adjusted EBITDA:<\/p>\n
\nAdjusted EBITDA (Non-GAAP)<\/p>\n
\n(b)<\/p>\n
\nCaesarstone Ltd. and its subsidiaries<\/p>\n
\nAdjusted net income attributable to controlling interest (Non-GAAP)<\/p>\n
ICR, Inc. – Rodny Nacier
\n
CSTE@icrinc.com<\/a>
+1 (646) 200-8870\n<\/p>\n