Caesarstone Reports Fourth Quarter and Full Year 2023 Financial Results
- Positive financial results for the full year with revenue of $565.2 million and cash flow from operations of $66.5 million.
- Initiation of significant restructuring actions in 2023 to drive long-term growth and profitability.
- Expected cost savings of approximately $20.0 million in 2024 and $30.0 million thereafter compared to 2023.
- Focus on strategic investments in brand, sales, marketing, R&D, and product expansion to drive profitable growth.
- Decline in fourth quarter revenue to $128.5 million compared to $159.4 million in the prior year.
- Lower gross margin in the fourth quarter due to lower revenues, unfavorable product mix, and higher production costs.
- Operating loss in the fourth quarter of $33.2 million compared to $75.2 million in the prior year.
- Adjusted EBITDA decrease in the fourth quarter to $1.4 million from $5.7 million in the prior year.
- Net loss per share for the fourth quarter increased to $1.47 from $2.15 in the prior year.
Insights
The reported financial results of Caesarstone Ltd. indicate a significant year-over-year decline in revenue and gross margin, with full year revenue dropping from $690.8 million to $565.2 million and gross margin decreasing from 23.6% to 16.3%. This contraction is a critical indicator of the company's performance and the challenging economic conditions it faces. The drop in gross margin, particularly, can be attributed to the lower fixed cost absorption due to reduced capacity utilization and an unfavorable product mix, which is a concern as it suggests a decrease in operational efficiency and potential market competitiveness issues.
Furthermore, the restructuring actions and facility closures, while aimed at cost savings, have resulted in substantial non-cash impairment charges totaling $47.9 million for the year. However, the expected future annual savings of $20.0 million in 2024 and $30.0 million thereafter are significant. These figures imply that the company anticipates a material impact on profitability and cash flow, which could be a positive sign for long-term investors if these savings are realized and effectively contribute to a leaner, more efficient operation.
It is also noteworthy that despite the net losses, the company managed to end 2023 with a solid net cash position of $83.5 million, an improvement from $28.2 million in the previous year. This suggests prudent cash management and could provide a buffer against ongoing macro-economic challenges.
The external factors impacting Caesarstone's performance, such as macro-economic headwinds and competitive pressures, particularly in the renovation and remodeling channels, are important to consider when evaluating the company's future prospects. The decline in volumes suggests that demand for Caesarstone's products is sensitive to economic cycles, which could mean future revenue growth is contingent on broader economic recovery, especially in the construction and home improvement sectors.
Additionally, the Australian market presents both a challenge and an opportunity for Caesarstone. The ban on engineered stone containing crystalline silica, which includes Caesarstone's quartz-based products, could disrupt sales. However, the company's proactive steps to supply alternative materials could mitigate the impact and maintain its market position. This responsiveness to regulatory changes is crucial for sustaining operations in affected markets.
The regulatory developments in Australia, with the impending ban on certain engineered stone products, represent a significant legal and operational challenge for Caesarstone. The transition to alternative materials must be managed effectively to comply with new regulations while minimizing disruption to the business. The company's ability to navigate these legal complexities will be critical in maintaining its market share in the region.
Moreover, the financial implications of the ban, such as potential inventory write-offs or the costs associated with the development and marketing of new products, must be closely monitored. The legal landscape in Australia serves as a reminder of the importance of regulatory compliance and adaptability in the engineered surfaces industry.
- Fourth Quarter Revenue of
- Full Year Cash Flow from Operations of
- Initiated Restructuring Actions During 2023 to Reignite Long-term Growth and Profitability -
- Expects to Realize Restructuring-Related Cost Savings of Approximately
MP MENASHE,
Yos Shiran, Caesarstone’s Chief Executive Officer commented, “In 2023, we implemented a new strategic plan and initiated significant restructuring actions which allowed us to achieve our primary financial objective for 2023, to generate positive cash flow from operations and end the year with a solid net cash position. We achieved that despite challenging macro-economic, regional geo-political and regulatory dynamics in key markets. We continue to position Caesarstone’s production footprint advantageously around the world and our teams have executed well to generate meaningful cost savings from our global restructuring actions. We are investing a portion of those savings into our brand, improving sales and marketing and R&D activities, as well as expanding our premium porcelain products to reignite profitable growth across our business to drive value to our customers and shareholders.”
Fourth Quarter 2023 Results
Revenue in the fourth quarter of 2023 was
Gross margin in the fourth quarter of 2023 was
Operating expenses in the fourth quarter of 2023 were
Operating loss in the fourth quarter of 2023 was
Adjusted EBITDA in the fourth quarter of 2023, which excludes expenses for non-cash share-based compensation, legal settlements and loss contingencies, restructuring and impairment expenses and for other non-recurring items, was
Finance expenses in the fourth quarter of 2023 were
Net loss attributable to controlling interest for the fourth quarter of 2023 was
Full Year 2023 Results
Revenue in the full year 2023 was
Gross margin in 2023 was
Operating expenses in 2023 were
Operating loss in 2023 was
Adjusted EBITDA, which excludes non-cash impairment charges, expenses for share-based compensation, legal settlements and loss contingencies, restructuring and impairment expenses and for other non-recurring items, was a loss of
Finance income in 2023 was
Net loss attributable to controlling interest in 2023 was
Balance Sheet & Liquidity
During the fourth quarter, the Company generated positive cash flow from operations of
Restructuring and Cost Optimization Update
During 2023, the Company initiated several actions under its strategic restructuring plan across the Company’s operations. These included the closure of its manufacturing facility in Sdot-Yam,
In connection with the facility closures, the Company incurred restructuring expenses and a one-time non-cash impairment charge totaling
The facility closures are intended to help improve the Company’s profitability and expected to collectively contribute savings of approximately
Following these restructuring actions, the Company continues to maintain its high level of service to customers through its remaining capacity and its third-party strategic manufacturing partners.
Australia Market Update
On December 13, 2023, Australian federal, state and territory governments announced a joint decision to ban the use, supply and manufacture of engineered stone slabs containing crystalline silica (including our quartz-based products) in
Following the decision and although there are still uncertainties as it relates to the transition period, the Company is taking the necessary steps to ensure supply of alternative materials to its Australian customers in line with its high standards in the first half of 2024 to maintain its leading position.
Outlook
“As we enter 2024, we believe our business is seeing signs of stabilization. The
Webcast and Conference Call Details
The Company will host a webcast and conference call today, February 21, 2024, 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 Fourth Quarter 2023 Earnings Conference Call.
To listen to a telephonic replay of the conference call, dial toll-free 1-844-512-2921 or +1-412-317-6671 (international) and enter pass code 10185872. The replay will be available beginning at 12:30 p.m. ET on Wednesday, February 21, 2024 and will last through 11:59 p.m. ET on Wednesday, February 28, 2024.
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
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 and Richmond Hill Facilities, the estimated closure costs and the estimated potential savings relating to said closures, the ability to sell or sublease all or part of the facilities 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 effects of global and regional economy and geo-politics on the Company’s business and operations; the outcome of silicosis and other bodily injury claims; regulatory requirements relating to hazards associated with fabricating our products; ; our R&D and product introduction efforts, managing constraints in the global supply chain and effectively procuring raw materials and goods, inflation and effects of challenges in global shipping and transportation; Company’s ability to pass such increases to its customers; the strength of the home renovation and construction sectors; competitive pressures; disruptions to our information technology systems globally, including by deliberate cyber-attacks;; fluctuations in currency exchange rates against the
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 subsidiaries | ||||||||
| Condensed consolidated balance sheets | ||||||||
As of |
||||||||
December 31, 2023 |
|
December 31, 2022 |
||||||
(Unaudited) |
|
(Audited) |
||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents and short-term bank deposits | $ |
91,123 |
|
$ |
52,081 |
|
||
| Short-term available for sale marketable securities |
|
- |
|
|
7,077 |
|
||
| Trade receivables, net |
|
66,888 |
|
|
77,898 |
|
||
| Other accounts receivable and prepaid expenses |
|
25,489 |
|
|
32,570 |
|
||
| Inventories |
|
136,446 |
|
|
238,232 |
|
||
| Total current assets |
|
319,946 |
|
|
407,858 |
|
||
| LONG-TERM ASSETS: | ||||||||
| Severance pay fund |
|
1,994 |
|
|
3,410 |
|
||
| Deferred tax assets, net |
|
3,061 |
|
|
16,251 |
|
||
| Long-term deposits and prepaid expenses |
|
4,961 |
|
|
3,255 |
|
||
| Operating lease right-of-use assets |
|
120,156 |
|
|
144,098 |
|
||
| Property, plant and equipment, net |
|
123,480 |
|
|
169,292 |
|
||
| Intangible assets, net |
|
6,257 |
|
|
8,817 |
|
||
| Total long-term assets |
|
259,909 |
|
|
345,123 |
|
||
| Total assets | $ |
579,855 |
|
$ |
752,981 |
|
||
| LIABILITIES AND EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Short-term bank credit | $ |
5,118 |
|
$ |
26,135 |
|
||
| Trade payables |
|
42,848 |
|
|
62,194 |
|
||
| Related parties |
|
257 |
|
|
283 |
|
||
| Short term legal settlements and loss contingencies |
|
16,106 |
|
|
17,595 |
|
||
| Accrued expenses and other liabilities |
|
56,894 |
|
|
58,777 |
|
||
| Total current liabilities |
|
121,223 |
|
|
164,984 |
|
||
| LONG-TERM LIABILITIES: | ||||||||
| Long-term bank and other loans |
|
2,549 |
|
|
4,823 |
|
||
| Legal settlements and loss contingencies long-term and other liabilities |
|
11,814 |
|
|
19,572 |
|
||
| Deferred tax liabilities, net |
|
3,006 |
|
|
4,288 |
|
||
| Long-term lease liabilities |
|
114,146 |
|
|
124,353 |
|
||
| Accrued severance pay |
|
3,065 |
|
|
4,750 |
|
||
| Long-term warranty provision |
|
1,204 |
|
|
1,262 |
|
||
| Total long-term liabilities |
|
135,784 |
|
|
159,048 |
|
||
| REDEEMABLE NON-CONTROLLING INTEREST |
|
7,789 |
|
|
7,903 |
|
||
| EQUITY: | ||||||||
| Ordinary shares |
|
371 |
|
|
371 |
|
||
| Treasury shares - at cost |
|
(39,430 |
) |
|
(39,430 |
) |
||
| Additional paid-in capital |
|
164,456 |
|
|
163,431 |
|
||
| Capital fund related to non-controlling interest |
|
(5,587 |
) |
|
(5,587 |
) |
||
| Accumulated other comprehensive income (loss), net |
|
(8,402 |
) |
|
(9,578 |
) |
||
| Retained earnings |
|
203,651 |
|
|
311,839 |
|
||
| Total equity |
|
315,059 |
|
|
421,046 |
|
||
| Total liabilities and equity | $ |
579,855 |
|
$ |
752,981 |
|
||
| Caesarstone Ltd. and its subsidiaries Condensed consolidated statements of income (loss) |
||||||||||||||||
Three months ended December 31, |
|
Twelve months ended December 31, |
||||||||||||||
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Revenues | $ |
128,525 |
|
$ |
159,369 |
|
$ |
565,231 |
|
$ |
690,806 |
|
||||
| Cost of revenues |
|
105,245 |
|
|
128,438 |
|
|
473,292 |
|
|
527,561 |
|
||||
| Gross profit |
|
23,280 |
|
|
30,931 |
|
|
91,939 |
|
|
163,245 |
|
||||
| Operating expenses: | ||||||||||||||||
| Research and development |
|
1,249 |
|
|
1,151 |
|
|
5,086 |
|
|
4,098 |
|
||||
| Sales and Marketing |
|
19,764 |
|
|
22,332 |
|
|
82,222 |
|
|
94,412 |
|
||||
| General and administrative |
|
10,168 |
|
|
11,861 |
|
|
49,490 |
|
|
51,596 |
|
||||
| Restructuring and Impairment expenses (income) related to long lived assets (**) |
|
27,715 |
|
|
71,258 |
|
|
47,939 |
|
|
71,258 |
|
||||
| Legal settlements and loss contingencies, net |
|
(2,424 |
) |
|
(491 |
) |
|
(4,770 |
) |
|
568 |
|
||||
| Total operating expenses |
|
56,472 |
|
|
106,111 |
|
|
179,967 |
|
|
221,932 |
|
||||
| Operating loss |
|
(33,192 |
) |
|
(75,180 |
) |
|
(88,028 |
) |
|
(58,687 |
) |
||||
| Finance expenses (income), net |
|
3,747 |
|
|
407 |
|
|
(1,069 |
) |
|
(3,079 |
) |
||||
| Loss before taxes |
|
(36,939 |
) |
|
(75,587 |
) |
|
(86,959 |
) |
|
(55,608 |
) |
||||
| Tax expenses (income), net |
|
13,949 |
|
|
(1,699 |
) |
|
21,281 |
|
|
758 |
|
||||
| Net loss | $ |
(50,888 |
) |
$ |
(73,888 |
) |
$ |
(108,240 |
) |
$ |
(56,366 |
) |
||||
| Net loss (income) attributable to non-controlling interest |
|
367 |
|
|
(78 |
) |
|
584 |
|
|
(688 |
) |
||||
| Net loss attributable to controlling interest | $ |
(50,521 |
) |
$ |
(73,966 |
) |
$ |
(107,656 |
) |
$ |
(57,054 |
) |
||||
| Basic net loss per ordinary share (*) | $ |
(1.47 |
) |
$ |
(2.15 |
) |
$ |
(3.13 |
) |
$ |
(1.66 |
) |
||||
| Diluted net loss per ordinary share (*) | $ |
(1.47 |
) |
$ |
(2.15 |
) |
$ |
(3.13 |
) |
$ |
(1.66 |
) |
||||
| Weighted average number of ordinary shares used in computing basic loss per ordinary share |
|
34,527,235 |
|
|
34,504,904 |
|
|
34,519,126 |
|
|
34,488,275 |
|
||||
| Weighted average number of ordinary shares used in computing diluted loss per ordinary share |
|
34,527,235 |
|
|
34,504,904 |
|
|
34,519,126 |
|
|
34,488,275 |
|
||||
| (*) The numerator for the calculation of net loss per share for the three and twelve months ended December 31, 2023 and 2022, has been decreased by approximately |
||||||||||||||||
(**) Q4'23 results including long-lived assets impairment and restructuring expenses in the amount of |
||||||||||||||||
YTD results including also impairment and restructuring expenses related to Sdot Yam plant closure. |
||||||||||||||||
| Caesarstone Ltd. and its subsidiaries | ||||||||
| Selected Condensed consolidated statements of cash flows | ||||||||
Twelve months ended December 31, |
||||||||
2023 |
|
2022 |
||||||
| (Unaudited) | (Unaudited) | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ |
(108,240 |
) |
$ |
(56,366 |
) |
||
| Adjustments required to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization |
|
30,007 |
|
|
36,344 |
|
||
| Share-based compensation expense |
|
1,025 |
|
|
1,502 |
|
||
| Accrued severance pay, net |
|
(268 |
) |
|
(58 |
) |
||
| Changes in deferred tax, net |
|
11,965 |
|
|
(5,693 |
) |
||
| Capital loss |
|
18 |
|
|
67 |
|
||
| Legal settlements and loss contingencies, net |
|
(4,770 |
) |
|
568 |
|
||
| Decrease in trade receivables |
|
11,760 |
|
|
2,612 |
|
||
| Decrease in other accounts receivable and prepaid expenses |
|
8,145 |
|
|
3,645 |
|
||
| Decrease (increase) in inventories |
|
102,586 |
|
|
(40,884 |
) |
||
| Decrease in trade payables |
|
(30,483 |
) |
|
(21,032 |
) |
||
| Decrease in warranty provision |
|
(165 |
) |
|
(119 |
) |
||
| Changes in right of use assets |
|
7,865 |
|
|
28,056 |
|
||
| Changes in lease liabilities |
|
(9,516 |
) |
|
(36,478 |
) |
||
| Contingent consideration related to acquisitions |
|
264 |
|
|
120 |
|
||
| Amortization of premium and accretion of discount on marketable securities, net |
|
63 |
|
|
238 |
|
||
| Changes in Accrued interest related to Marketable Securities |
|
39 |
|
|
74 |
|
||
| Decrease in accrued expenses and other liabilities including related parties |
|
(1,705 |
) |
|
(7,165 |
) |
||
| Restructuring expenses and Impairment related to long lived assets |
|
47,939 |
|
|
71,258 |
|
||
| Net cash provided by (used in) operating activities |
|
66,529 |
|
|
(23,311 |
) |
||
| Cash flows from investing activities: | ||||||||
| Net cash paid for acquisitions |
|
(511 |
) |
|
(2,245 |
) |
||
| Purchase of property, plant and equipment |
|
(11,168 |
) |
|
(17,801 |
) |
||
| Proceeds from sale of property, plant and equipment |
|
177 |
|
|
12 |
|
||
| Maturity of marketable securities |
|
7,100 |
|
|
12,401 |
|
||
| Decrease (increase) in long term deposits |
|
(135 |
) |
|
348 |
|
||
| Net used in investing activities |
|
(4,537 |
) |
|
(7,285 |
) |
||
| Cash flows from financing activities: | ||||||||
| Dividend paid |
|
- |
|
|
(8,625 |
) |
||
| Changes in short-term bank credits and long-term loans, including related parties |
|
(23,268 |
) |
|
18,640 |
|
||
| Repayment of a financing leaseback related to Bar-Lev transaction |
|
- |
|
|
(859 |
) |
||
| Net cash provided by (used in) financing activities |
|
(23,268 |
) |
|
9,156 |
|
||
| Effect of exchange rate differences on cash and cash equivalents |
|
318 |
|
|
(794 |
) |
||
| Increase (decrease) in cash and cash equivalents and short-term bank deposits |
|
39,042 |
|
|
(22,234 |
) |
||
| 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 | $ |
91,123 |
|
$ |
52,081 |
|
||
| Non - cash investing: | ||||||||
| Changes in trade payables balances related to purchase of fixed assets |
|
188 |
|
|
(925 |
) |
||
| Caesarstone Ltd. and its subsidiaries | ||||||||||||||
|
|
|
|
|
|
|
||||||||
Three months ended December 31, |
|
Twelve months ended December 31, |
||||||||||||
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
| (Unaudited) | (Unaudited) | |||||||||||||
| Reconciliation of Gross profit to Adjusted Gross profit: | ||||||||||||||
| Gross profit | $ |
23,280 |
|
$ |
30,931 |
$ |
91,939 |
|
$ |
163,245 |
||||
| Share-based compensation expense (a) |
|
(59 |
) |
|
86 |
|
94 |
|
|
315 |
||||
| Amortization of assets related to acquisitions |
|
71 |
|
|
72 |
|
286 |
|
|
306 |
||||
| Residual operating expenses related to Sdot-Yam after closing |
|
1,129 |
|
|
237 |
|
3,924 |
|
|
237 |
||||
| Other non recuring items |
|
(152 |
) |
|
- |
|
(304 |
) |
|
- |
||||
| Adjusted Gross profit (Non-GAAP) | $ |
24,269 |
|
$ |
31,326 |
$ |
95,939 |
|
$ |
164,103 |
||||
| (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 December 31, |
|
Twelve months ended December 31, |
||||||||||||||
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Reconciliation of Net Loss to Adjusted EBITDA: | ||||||||||||||||
| Net loss | $ |
(50,888 |
) |
$ |
(73,888 |
) |
$ |
(108,240 |
) |
$ |
(56,366 |
) |
||||
| Finance expenses (income), net |
|
3,747 |
|
|
407 |
|
|
(1,069 |
) |
|
(3,079 |
) |
||||
| Taxes on income |
|
13,949 |
|
|
(1,699 |
) |
|
21,281 |
|
|
758 |
|
||||
| Depreciation and amortization |
|
7,296 |
|
|
9,121 |
|
|
30,007 |
|
|
36,344 |
|
||||
| Legal settlements and loss contingencies, net (a) |
|
(2,424 |
) |
|
(492 |
) |
|
(4,770 |
) |
|
568 |
|
||||
| Contingent consideration adjustment related to acquisition |
|
24 |
|
|
63 |
|
|
264 |
|
|
120.00 |
|
||||
| Acquisition and integration related expenses |
|
- |
|
|
- |
|
|
- |
|
|
80 |
|
||||
| Share-based compensation expense (b) |
|
469 |
|
|
259 |
|
|
1,025 |
|
|
1,502 |
|
||||
| Restructuring expenses and Impairment related to long lived assets (c) |
|
27,715 |
|
|
71,258 |
|
|
47,939 |
|
|
71,258 |
|
||||
| Residual operating expenses related to closed plants after closing |
|
1,643 |
|
|
684 |
|
|
4,438 |
|
|
684 |
|
||||
| Other non recuring items |
|
(152 |
) |
|
- |
|
|
(304 |
) |
|
- |
|
||||
| Adjusted EBITDA (Non-GAAP) | $ |
1,379 |
|
$ |
5,713 |
|
$ |
(9,429 |
) |
$ |
51,869 |
|
||||
| (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) Q4'23 results including long-lived assets impairment and restructuring expenses related to closure of Richmond plant. | ||||||||||||||||
| YTD results including also impairment and restructuring expenses related to Sdot Yam plant closure. | ||||||||||||||||
| Caesarstone Ltd. and its subsidiaries | ||||||||||||||||
Three months ended December 31, |
|
Twelve months ended December 31, |
||||||||||||||
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Reconciliation of net income attributable to controlling interest to adjusted net income (loss) attributable to controlling interest: | ||||||||||||||||
| Net loss attributable to controlling interest | $ |
(50,521 |
) |
$ |
(73,966 |
) |
$ |
(107,656 |
) |
$ |
(57,054 |
) |
||||
| Legal settlements and loss contingencies, net (a) |
|
(2,424 |
) |
|
(492 |
) |
|
(4,770 |
) |
|
568 |
|
||||
| Contingent consideration adjustment related to acquisition |
|
24 |
|
|
63 |
|
|
264 |
|
|
120 |
|
||||
| Amortization of assets related to acquisitions, net of tax |
|
534 |
|
|
536 |
|
|
2,142 |
|
|
2,084 |
|
||||
| Share-based compensation expense (b) |
|
469 |
|
|
259 |
|
|
1,025 |
|
|
1,502 |
|
||||
| Acquisition and integration related expenses |
|
- |
|
|
- |
|
|
- |
|
|
80 |
|
||||
| Non cash revaluation of lease liabilities (c) |
|
3,538 |
|
|
676 |
|
|
(1,556 |
) |
|
(9,527 |
) |
||||
| Restructuring expenses and Impairment related to long lived assets (d) |
|
27,715 |
|
|
71,258 |
|
|
47,939 |
|
|
71,258.00 |
|
||||
| Residual operating expenses related to closed plants after closing |
|
1,643 |
|
|
684 |
|
|
4,438 |
|
|
684.00 |
|
||||
| Other non recuring items |
|
(152 |
) |
|
- |
|
|
(304 |
) |
|
- |
|
||||
| Total adjustments |
|
31,347 |
|
|
72,984 |
|
|
49,178 |
|
|
66,769 |
|
||||
| Less tax on non-tax adjustments (e) |
|
(9,421 |
) |
|
(144 |
) |
|
(12,035 |
) |
|
(910 |
) |
||||
| Total adjustments after tax |
|
40,768 |
|
|
73,130 |
|
|
61,213 |
|
|
67,679 |
|
||||
| Adjusted net income (loss) attributable to controlling interest (Non-GAAP) | $ |
(9,753 |
) |
$ |
(836 |
) |
$ |
(46,443 |
) |
$ |
10,625 |
|
||||
| Adjusted earning (loss) per share (f) | $ |
(0.28 |
) |
$ |
(0.02 |
) |
$ |
(1.34 |
) |
$ |
0.31 |
|
||||
| (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. | ||||||||||||||||
| (e) Tax adjustments for the three and twelve months ended December 31, 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 ended December 31, |
|
Twelve months ended December 31, |
|
Three months ended December 31, |
|
Twelve months ended December 31, |
||||||||||||||||||
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
||||||||||
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
YoY % change |
|
YoY % change CCB |
|
YoY % change |
|
YoY % change CCB |
||||||||||||
$ |
60,283 |
$ |
76,394 |
$ |
271,647 |
$ |
342,293 |
-21.1 |
% |
-21.1 |
% |
-20.6 |
% |
-20.6 |
% |
|||||||||
|
17,750 |
|
20,673 |
|
75,462 |
|
93,377 |
-14.1 |
% |
-13.8 |
% |
-19.2 |
% |
-16.1 |
% |
|||||||||
|
817 |
|
964 |
|
3,285 |
|
4,481 |
-15.2 |
% |
-15.2 |
% |
-26.7 |
% |
-26.7 |
% |
|||||||||
| America's |
|
78,850 |
|
98,031 |
|
350,394 |
|
440,151 |
-19.6 |
% |
-19.5 |
% |
-20.4 |
% |
-19.7 |
% |
||||||||
|
26,684 |
|
29,346 |
|
106,223 |
|
116,284 |
-9.1 |
% |
-8.1 |
% |
-8.7 |
% |
-4.7 |
% |
|||||||||
|
5,890 |
|
7,891 |
|
25,959 |
|
34,607 |
-25.4 |
% |
-26.1 |
% |
-25.0 |
% |
-26.0 |
% |
|||||||||
| APAC |
|
32,574 |
|
37,237 |
|
132,182 |
|
150,891 |
-12.5 |
% |
-11.9 |
% |
-12.4 |
% |
-9.6 |
% |
||||||||
| EMEA |
|
14,513 |
|
15,266 |
|
59,908 |
|
63,320 |
-4.9 |
% |
-10.7 |
% |
-5.4 |
% |
-7.6 |
% |
||||||||
|
2,588 |
|
8,835 |
|
22,747 |
|
36,444 |
-70.7 |
% |
-68.0 |
% |
-37.6 |
% |
-31.4 |
% |
|||||||||
| Total Revenues | $ |
128,525 |
$ |
159,369 |
$ |
565,231 |
$ |
690,806 |
-19.4 |
% |
-19.6 |
% |
-18.2 |
% |
-17.0 |
% |
||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240221191174/en/
Investor Relations:
ICR, Inc. - Rodny Nacier
CSTE@icrinc.com
+1 (646) 200-8870
Source: Caesarstone Ltd.
FAQ
What was Caesarstone's Fourth Quarter revenue in 2023?
What was Caesarstone's Full Year revenue in 2023?
What was Caesarstone's Full Year Cash Flow from Operations in 2023?
What restructuring actions did Caesarstone initiate in 2023?
What cost savings is Caesarstone expecting in 2024?
