Caesarstone Ltd. (NASDAQ:CSTE) Q3 2024 Earnings Conference Call November 13, 2024 8:30 AM ET Company Participants Brad Cray - Investor Relations Yos Shiran - Chief Executive Officer Nahum Trost - Chief Financial Officer Conference Call Participants John McGlade - Benchmark Operator Greetings, and welcome to the Caesarstone Third Quarter 2024 Earnings Conference Call. At this time all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator In ...

INVESTOR PRESENTATION August 2024 DISCLAIMER Information provided in this presentation 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," "expe ...

Financial Data and Key Metrics - Global revenue for Q2 2024 was $119.4 million, down 16.9% YoY (16.3% on a constant currency basis) [9] - Gross margin improved significantly to 22.9% in Q2 2024, compared to 8.3% in the prior year quarter [11] - Adjusted gross margin was 23.8% in Q2 2024, compared to 9.6% in the prior year quarter [11] - Operating expenses were $36.6 million (30.6% of revenue) in Q2 2024, down from $58.8 million (40.9% of revenue) in the prior year quarter [12] - Operating loss in Q2 2024 was $9.3 million, compared to $46.9 million in the prior year quarter [13] - Adjusted EBITDA in Q2 2024 was a loss of $0.1 million, compared to a loss of $13.4 million in the prior year quarter [13] - Cash, cash equivalents, and short-term bank deposits totaled $103.6 million as of June 30, 2024, with a net cash position of $97.7 million [14] Business Line Performance - US sales declined by 13.8% to $59.8 million, driven by softer residential end markets and less favorable product mix [9] - Canada sales were down 15.9% on a constant currency basis, experiencing similar market dynamics as the US [10] - Australia sales declined by 20.8% on a constant currency basis, reflecting slower market conditions and regulatory changes [10] - EMEA region saw a decline of 14.9% on a constant currency basis, due to slow market conditions in the UK, Sweden, and indirect EMEA business [10] - Israel sales were down 38.9% on a constant currency basis, mainly due to reduced regional activity caused by geopolitical tensions [10] Market Performance - The company faced global economic headwinds, particularly in residential renovation and remodeling channels, leading to lower demand and competitive pressures [9] - The transition to alternative materials in Australia, due to new regulations banning quartz products, impacted sales [10] - Geopolitical developments, such as trade restrictions from Turkey, increased production costs in Israel [16] Strategic Direction and Industry Competition - The company is driving cost efficiencies, with the closure of Sdot-Yam and Richmond-Hill facilities expected to deliver annual cost savings of $20 million in 2024 and $30 million annually thereafter [5] - Over 60% of production is now sourced from global manufacturing partners, improving margins and aligning production to demand [5] - The company is focusing on differentiated products to improve sales mix and mitigate pricing pressures [6] - Investments in the porcelain business, including increasing the stake in Lioli Ceramica from 60% to 81%, are seen as key growth drivers [6] - The company is developing zero crystalline silica product lines to adapt to regulatory changes in Australia [6] - Efforts to monetize non-operational assets, such as selling undeveloped land at Richmond Hill, are ongoing [7] Management Commentary on Operating Environment and Future Outlook - The company is navigating persistent macroeconomic challenges and specific hurdles in the residential remodeling and renovation sectors [8] - Management expects to deliver positive operating cash flow for the full year of 2024, with the majority weighted towards the first half [18] - Full-year 2024 adjusted EBITDA is expected to be a loss in the mid-single-digit million-dollar range, due to increased shipping and material costs [18] - The company is focusing on cost efficiencies, optimizing production footprint, and strategic investments in sales, marketing, and R&D to drive profitability as market conditions stabilize [19] Other Important Information - The company is facing 43 silicosis-related lawsuits in the US, with the first case currently in trial [17] - Increased sea freight fees are expected to add $3 million to $4 million per quarter to costs, impacting Q4 2024 more significantly [15] - The company is finalizing the subletting of available areas within the Sdot Yam manufacturing facility, expected to generate additional cash flows in 2025 [7] Q&A Session Summary Question: Impact of shipping costs and potential pricing actions - Shipping costs are expected to increase by $3 million to $4 million per quarter in H2 2024, with additional negative impacts from raw material sourcing [20] - The company expects shipping costs to decrease in the future but cannot predict the exact timing or extent [21] Question: Revenue assumptions for H2 2024 - The company assumes similar market dynamics in H2 2024 as seen in H1 2024 [22] Question: Potential for further cost reductions - The company has become more agile with lower fixed costs, allowing for better cost control and capacity adjustments as needed [23] Question: Decremental margins and sensitivity analysis - The company does not provide specific sensitivity analysis but highlights the significant gross margin improvement from 15% in Q2 2023 to 23% in Q2 2024, driven by restructuring efforts [25] Question: Monetization of Richmond Hill and Israel facilities - The company expects to receive several tens of millions of dollars for the developed portion of the Richmond Hill property [27] - Subletting of the Sdot Yam facility is expected to generate several million dollars in cash flow starting in 2025 [28] Question: Increased stake in Lioli Ceramica - The company views porcelain as a key growth driver and increased its stake in Lioli Ceramica to 81% to strengthen its position in the market [30] - The impact on margins is not expected to be material in the short term [32]

CaesarStone (CSTE) came out with a quarterly loss of $0.14 per share versus the Zacks Consensus Estimate of a loss of $0.12. This compares to loss of $0.69 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -16.67%. A quarter ago, it was expected that this maker of quartz surface slabs would post a loss of $0.16 per share when it actually produced a loss of $0.13, delivering a surprise of 18.75%. Over the last four quarters, the ...

Reuben Garner - The Benchmark Company Thank you, Brad. Good day, everyone, and thank you for joining us to discuss our first quarter 2024 results. In the U.S., sales were down 19.8% mainly tied to soft residential end markets and less favorable product mix resulted in lower ASP related to the impact of the higher interest rates on housing market and renovation projects, partially offset by our commercial and big box channel revenues. Operator Sorry about that. Yeah. Can -- how much did revenue benefit from ...

CaesarStone (CSTE) came out with a quarterly loss of $0.13 per share versus the Zacks Consensus Estimate of a loss of $0.16. This compares to loss of $0.17 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 18.75%. A quarter ago, it was expected that this maker of quartz surface slabs would post a loss of $0.14 per share when it actually produced a loss of $0.28, delivering a surprise of -100%.Over the last four quarters, the com ...

Exhibit 99.1 C caesarstor Caesarstone Reports First Quarter 2024 Financial Results - Revenue of $118.3 Million - - Gross Margin of 24.5% Improved Significantly Compared to 19.7% in the Prior Year Quarter - - Strong Balance Sheet with Net Cash Position of $89.4 Million - - Reaffirms Outlook to Deliver Positive Adjusted EBITDA and Operating Cash Flow in 2024 - MP MENASHE, Israel – May 8, 2024 - Caesarstone Ltd. (NASDAQ: CSTE), a leading developer and manufacturer of high-quality engineered surfaces, today rep ...

For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Has CaesarStone (CSTE) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question.CaesarStone is one of 98 individual stocks in the Construction sector. Collectively, these companies sit at #1 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 di ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION ...

The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. CaesarStone (CSTE) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.CaesarStone is one of 98 individual stocks in the Construction sector ...