CaesarStone Sdot-Yam Ltd. (NASDAQ:CSTE) Q1 2020 Earnings Conference Call May 6, 2020 8:00 AM ET Company Participants Brad Cray - Investor Relations Yuval Dagim - Chief Executive Officer Ophir Yakovian - Chief Financial Officer Conference Call Participants John Baugh - Stifel Asaf Barel Chandali - Oppenheimer Operator Greetings. Welcome to the Caesarstone First Quarter 2020 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce y ...

PART I [Key Information](index=8&type=section&id=Item%203%3A%20Key%20Information) Caesarstone's financial data from 2015-2019 shows declining revenues and profitability, alongside significant business, industry, and operational risks [Selected Financial Data](index=8&type=section&id=A.%20Selected%20Financial%20Data) Financial data from 2015-2019 reveals declining revenue and profitability, with net income and Adjusted EBITDA showing significant decreases Consolidated Income Statement Data (2015-2019, USD thousands) | Indicator | 2019 | 2018 | 2017 | 2016 | 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $545,974 | $575,871 | $588,147 | $538,543 | $499,515 | | **Gross profit** | $148,639 | $163,414 | $197,223 | $212,486 | $200,225 | | **Operating income** | $24,683 | $32,767 | $40,543 | $92,804 | $96,386 | | **Net income attributable to controlling interest** | $12,862 | $24,405 | $26,202 | $74,596 | $77,766 | | **Diluted net income per ordinary share** | $0.37 | $0.72 | $0.73 | $2.08 | $2.19 | Consolidated Balance Sheet Data (As of Dec 31, 2015-2019, USD thousands) | Indicator | 2019 | 2018 | 2017 | 2016 | 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total assets** | $703,866 | $616,922 | $652,987 | $584,700 | $529,742 | | **Total liabilities** | $226,142 | $150,421 | $166,611 | $134,108 | $120,680 | | **Shareholders' equity** | $477,724 | $466,501 | $469,895 | $437,653 | $400,221 | Other Financial Data (Non-GAAP, 2015-2019, USD thousands) | Indicator | 2019 | 2018 | 2017 | 2016 | 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Adjusted EBITDA** | $69,046 | $75,206 | $100,429 | $130,260 | $125,667 | | **Adjusted net income attributable to controlling interest** | $26,724 | $36,085 | $49,819 | $81,184 | $83,682 | [Risk Factors](index=12&type=section&id=D.%20Risk%20Factors) The company faces significant business, operational, and market risks, including COVID-19 impacts, intense competition, silicosis litigation, and shareholder dependencies - The COVID-19 pandemic poses a significant risk, potentially lowering consumer demand, disrupting operations due to workforce reductions and government restrictions, and contributing to a global economic recession[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk) - The company faces substantial litigation risk from silicosis and other bodily injury claims. As of December 31, 2019, there were **152** pending claims globally. The total estimated exposure for pending lawsuits in Israel was approximately **$39.2 million**[62](index=62&type=chunk)[63](index=63&type=chunk) - Sales are geographically concentrated, with the U.S., Australia, Canada, and Israel accounting for **45.9%**, **19.8%**, **15.7%**, and **7.1%** of revenues in 2019, respectively. This makes the company vulnerable to downturns in these specific markets[84](index=84&type=chunk) - One customer, IKEA, accounted for approximately **9.2%** of total revenues in 2019. A loss or further decrease in business from this customer could materially harm revenues[85](index=85&type=chunk) - The company is dependent on its major shareholder, Kibbutz Sdot-Yam, for leasing its headquarters and a key manufacturing facility in Israel, as well as for certain services and a portion of its labor force, creating operational and conflict-of-interest risks[184](index=184&type=chunk)[190](index=190&type=chunk)[196](index=196&type=chunk) [Information on the Company](index=43&type=section&id=Item%204%3A%20Information%20on%20the%20Company) This section outlines Caesarstone's history, global operations, product lines, distribution, manufacturing, and organizational structure [History and Development of the Company](index=43&type=section&id=A.%20History%20and%20Development%20of%20the%20Company) Founded in Israel in 1987, Caesarstone expanded globally and listed on Nasdaq in 2012, with recent capital expenditures focused on manufacturing - The company was founded in 1987, incorporated in Israel in 1989, and listed its shares on the Nasdaq Global Select Market in **March 2012**[257](index=257&type=chunk)[258](index=258&type=chunk) Capital Expenditures (2017-2019, USD millions) | Year | Capital Expenditures (USD millions) | | :--- | :--- | | 2019 | $23.6 | | 2018 | $21.0 | | 2017 | $22.7 | [Business Overview](index=44&type=section&id=B.%20Business%20Overview) Caesarstone, a leading quartz surface manufacturer, experienced a 5.2% revenue decline in 2019, operating globally with direct sales and facing intense competition - The company's revenue declined at an annual rate of **5.2%** from 2018 to 2019, reaching **$546.0 million** in 2019[264](index=264&type=chunk) - The four largest markets are the United States, Australia, Canada, and Israel, which together accounted for **88.5%** of revenues in 2019[273](index=273&type=chunk) - The company operates a dual distribution model: direct sales channels in key markets like the U.S., Australia, and Canada, and third-party distributors in over 40 other countries. Direct sales accounted for **91.5%** of revenues in 2019[274](index=274&type=chunk)[279](index=279&type=chunk)[349](index=349&type=chunk) - Key raw materials are quartz, polyester, and pigments. In 2019, approximately **61%** of quartz was sourced from Turkey, with two suppliers, Mikroman and Polat, accounting for about **30%** and **19%** of the total quartz supply, respectively[295](index=295&type=chunk)[296](index=296&type=chunk) - The company faces growing competition from low-cost manufacturers, particularly from Asia (China) and Europe, in the highly fragmented engineered quartz surface market[307](index=307&type=chunk) [Organizational Structure](index=52&type=section&id=C.%20Organizational%20Structure) Caesarstone Ltd. operates with six wholly-owned subsidiaries and reorganized into a new regional structure in 2019 - The company has **six** wholly-owned subsidiaries located in Australia, Singapore, the UK, Canada, and the US[328](index=328&type=chunk) - In December 2018, Caesarstone exercised its call option to purchase the remaining **45%** of its Canadian joint venture from Ciot for **CAD $27.3 million**, gaining **100%** ownership[329](index=329&type=chunk) - In **2019**, the company reorganized into a new regional structure: North America, APAC, EMEA, and Israel[331](index=331&type=chunk) [Property, Plants and Equipment](index=53&type=section&id=D.%20Property%2C%20Plants%20and%20Equipment) The company operates three manufacturing facilities: two in Israel on leased land and one in the U.S. with a tax abatement Manufacturing Facilities | Location | Type | Size (Facility, sq. meters) | Size (Uncovered Yard, sq. meters) | | :--- | :--- | :--- | :--- | | Kibbutz Sdot-Yam, Israel | Headquarters, Mfg., R&D | 30,744 | 60,870 | | Bar-Lev Industrial Park, Israel | Manufacturing | 22,844 | 53,261 | | Richmond Hill, Georgia, USA | Manufacturing | 26,400 | 401,110 | - The Israeli facilities are on land leased from Kibbutz Sdot-Yam through land use agreements[333](index=333&type=chunk) - The U.S. facility in Richmond Hill, Georgia, is structured under a bond purchase loan agreement that provides a property tax abatement for **ten years at 100%** and an additional **five years at 50%**, subject to meeting certain conditions[335](index=335&type=chunk) [Operating and Financial Review and Prospects](index=54&type=section&id=Item%205%3A%20Operating%20and%20Financial%20Review%20and%20Prospects) This section analyzes Caesarstone's financial performance, highlighting a 5.2% revenue decline in 2019, margin contraction, and increased operating cash flow [Operating Results](index=54&type=section&id=A.%20Operating%20Results) In 2019, revenues decreased by 5.2% to $546.0 million, with gross profit margin declining to 27.2% due to lower utilization and selling prices - Revenue decreased by **5.2%** in 2019 to **$546.0 million**, driven by a **3.5%** decrease in sales volume and adverse currency impacts[385](index=385&type=chunk) - Gross profit margin decreased by **120 basis points** to **27.2%** in 2019 from **28.4%** in 2018, mainly due to lower fixed cost absorption from reduced capacity utilization and lower selling prices[344](index=344&type=chunk)[388](index=388&type=chunk) Revenue by Geographic Region (USD thousands) | Region | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | United States | $250,471 | $239,241 | $245,361 | | Australia | $108,150 | $131,086 | $137,559 | | Canada | $85,975 | $99,678 | $97,838 | | Israel | $38,693 | $39,894 | $44,489 | | Europe | $37,756 | $34,457 | $28,679 | | Rest of world | $24,929 | $31,515 | $34,221 | | **Total** | **$545,974** | **$575,871** | **$588,147** | - Marketing and selling expenses decreased by **10.7%** to **$66.8 million** in 2019, mainly due to cost reductions from the North America regional restructuring[390](index=390&type=chunk) [Liquidity and Capital Resources](index=70&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) Cash from operations significantly increased to $83.0 million in 2019, primarily due to inventory reduction, supporting capital needs and liquidity Summary of Cash Flows (USD thousands) | Activity | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $83,049 | $14,692 | $61,017 | | Net cash used in investing activities | $(23,587) | $(21,153) | $(22,766) | | Net cash used in financing activities | $(14,127) | $(38,363) | $(6,267) | - The significant increase in cash from operations in 2019 was mainly driven by a **$35.3 million** decrease in inventories, compared to a **$30.6 million** increase in 2018[443](index=443&type=chunk) - As of December 31, 2019, the company had short-term credit lines with a total availability of **$2.4 million**, none of which were utilized[449](index=449&type=chunk) [Research and Development, Patents and Licenses](index=72&type=section&id=C.%20Research%20and%20Development%2C%20Patents%20and%20Licenses) R&D expenses increased to 0.8% of revenues in 2019, with the company focusing on patenting innovative manufacturing technologies Research and Development Expenses (USD millions) | Year | R&D Expense (USD millions) | % of Revenue | | :--- | :--- | :--- | | 2019 | $4.1 | 0.8% | | 2018 | $3.6 | 0.6% | | 2017 | $4.2 | 0.7% | [Trend Information](index=72&type=section&id=D.%20Trend%20Information) While COVID-19 had no 2019 financial impact, its future trajectory remains highly uncertain and could materially affect the business - The company notes that while the COVID-19 pandemic did not affect **2019** results, its future trajectory is highly uncertain and could materially impact economic activity, construction markets, sales, and raw material availability[458](index=458&type=chunk) [Contractual Obligations](index=72&type=section&id=F.%20Contractual%20Obligations) As of December 31, 2019, total contractual obligations were $136.5 million, primarily comprising operating leases and purchase obligations Contractual Obligations as of December 31, 2019 (USD thousands) | Obligation Type | Total | Payments Due by Period | | :--- | :--- | :--- | | | | **2020** | **2021** | **2022** | **2023** | **2024** | **2025 & thereafter** | | Sale-leaseback | $3,288 | $1,233 | $1,233 | $822 | $0 | $0 | $0 | | Operating leases | $99,400 | $14,480 | $13,364 | $11,156 | $9,008 | $8,295 | $43,097 | | Purchase obligations | $28,024 | $28,024 | $0 | $0 | $0 | $0 | $0 | | Accrued severance pay, net | $858 | - | - | - | - | - | $858 | | Uncertain tax positions | $4,913 | - | - | - | - | - | $4,913 | | **Total** | **$136,483** | **$43,737** | **$14,597** | **$11,978** | **$9,008** | **$8,295** | **$43,955** | [Directors, Senior Management and Employees](index=74&type=section&id=Item%206%3A%20Directors%2C%20Senior%20Management%20and%20Employees) This section details the company's leadership, governance, executive compensation, board practices, global workforce, and share ownership [Directors and Senior Management](index=74&type=section&id=A.%20Directors%20and%20Senior%20Management) The company's leadership includes CEO Yuval Dagim and CFO Ophir Yakovian, with Dr. Ariel Halperin chairing the ten-member board - Yuval Dagim has served as Chief Executive Officer since **August 2018**[464](index=464&type=chunk) - Dr. Ariel Halperin has served as Chairman of the board of directors since **December 2016**[479](index=479&type=chunk) [Compensation](index=79&type=section&id=B.%20Compensation) Aggregate executive compensation in 2019 was $8.4 million, with CEO Yuval Dagim's total compensation reaching approximately $2.4 million - Aggregate compensation for current executive officers for the year ended December 31, 2019, was **$8.4 million**[491](index=491&type=chunk) Compensation of Five Most Highly Compensated Office Holders for 2019 (USD) | Name and Principal Position | Salary | Bonus | Equity-Based Compensation | All other compensation | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Yuval Dagim | 661,086 | 113,533 | 1,609,225 | 3,805 | 2,387,649 | | Ophir Yakovian | 394,791 | 53,733 | 173,767 | 29,037 | 651,328 | | Ken Williams | 415,839 | 67,779 | 121,613 | 2,303 | 607,534 | | Erez Margalit | 360,590 | 64,019 | 124,949 | 2,278 | 551,836 | | David Cullen | 330,132 | 47,996 | 118,591 | 6,686 | 503,405 | - As of March 18, 2020, **561,793** ordinary shares remained available for future grants under the **2011 Incentive Compensation Plan**[520](index=520&type=chunk) [Board Practices](index=83&type=section&id=C.%20Board%20Practices) The ten-member board includes independent and external directors, operating with four committees and adhering to Israeli law for governance and quorum - The Board of Directors consists of **ten** members, **six** of whom are independent under Nasdaq rules. The board includes **two** external directors as required by Israeli Companies Law[531](index=531&type=chunk)[542](index=542&type=chunk) - The company follows Israeli corporate governance practice for shareholder meeting quorum, requiring **25%** of voting power, which is an exemption from the Nasdaq requirement of **33.33%**[528](index=528&type=chunk) - The board has established **four** committees: Audit, Compensation, Nominating, and Strategy, each with specific responsibilities and composition requirements[563](index=563&type=chunk)[578](index=578&type=chunk)[577](index=577&type=chunk)[587](index=587&type=chunk) - The company has a Compensation Policy, approved by shareholders in **September 2019** for a **three-year** period, which governs the compensation of executive officers and directors[584](index=584&type=chunk) [Employees](index=97&type=section&id=D.%20Employees) As of December 31, 2019, Caesarstone had 1,501 global employees, primarily in manufacturing, with significant presence in Israel and the U.S Global Workforce by Department (as of Dec 31) | Department | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | Manufacturing and operations | 911 | 950 | 962 | | Research and development | 15 | 17 | 16 | | Sales, marketing, service and support | 424 | 410 | 407 | | Management and administration | 151 | 157 | 160 | | **Total** | **1,501** | **1,534** | **1,545** | - As of December 31, 2019, the company had **717** employees in Israel, **464** in the United States, **115** in Australia, **133** in Canada, **47** in the UK, and **25** in Asia[626](index=626&type=chunk) [Share Ownership](index=98&type=section&id=E.%20Share%20Ownership) As of March 18, 2020, directors and executive officers collectively owned 41.8% of shares, largely due to Dr. Ariel Halperin's 40.8% holding - As of **March 18, 2020**, all current directors and executive officers as a group (23 persons) beneficially owned 14,362,067 ordinary shares, representing **41.8%** of the class[630](index=630&type=chunk) - Dr. Ariel Halperin, Chairman of the Board, beneficially owned 14,051,494 shares (**40.8%**), primarily through his affiliation with Tene Investment Funds, which has a voting agreement with Kibbutz Sdot-Yam[632](index=632&type=chunk)[636](index=636&type=chunk) [Major Shareholders and Related Party Transactions](index=99&type=section&id=Item%207%3A%20Major%20Shareholders%20and%20Related%20Party%20Transactions) This section details major shareholders, including Kibbutz Sdot-Yam and Tene (each 40.8%), and extensive related-party transactions with the Kibbutz [Major Shareholders](index=99&type=section&id=A.%20Major%20Shareholders) As of March 18, 2020, Mifalei Sdot-Yam and Tene are major shareholders, each holding 40.8% through a voting agreement Beneficial Ownership of Major Shareholders (as of March 18, 2020) | Name of Beneficial Owner | Number of Shares Beneficially Owned | Percentage of Shares Beneficially Held | | :--- | :--- | :--- | | Mifalei Sdot-Yam Agricultural Cooperative Society Ltd. | 14,029,494 | 40.8% | | Tene Investment in Projects 2016, L.P. | 14,029,494 | 40.8% | | The Phoenix Holdings Ltd. | 1,893,810 | 5.5% | - Mifalei Sdot-Yam and Tene have a shareholders' agreement to vote their shares in the same manner, making them collectively controlling shareholders under Israeli law[648](index=648&type=chunk) [Related Party Transactions](index=101&type=section&id=B.%20Related%20Party%20Transactions) The company has extensive related-party transactions with Kibbutz Sdot-Yam, totaling $9.5 million in 2019 for land, manpower, and services - The company paid Kibbutz Sdot-Yam an aggregate of **$9.5 million** in 2019 for services and use of facilities, compared to **$9.3 million** in 2018 and **$9.5 million** in 2017[658](index=658&type=chunk) - A manpower agreement with Kibbutz Sdot-Yam governs the provision of labor services from Kibbutz members. Payments under this agreement were **$2.4 million** in 2019[677](index=677&type=chunk)[679](index=679&type=chunk) - The company leases its Sdot-Yam and Bar-Lev manufacturing facilities from the Kibbutz under long-term land use agreements. Payments for these leases totaled **$5.7 million** in 2019 (**$4.5 million** for Sdot-Yam and **$1.2 million** for Bar-Lev)[671](index=671&type=chunk)[675](index=675&type=chunk) - A services agreement covers various operational services provided by the Kibbutz, for which the company paid **$1.5 million** in 2019[681](index=681&type=chunk) [Financial Information](index=107&type=section&id=Item%208%3A%20Financial%20Information) This section covers audited financial statements, significant legal proceedings including silicosis claims, and the company's revised dividend policy [Consolidated Financial Statements and Other Financial Information](index=107&type=section&id=A.%20Consolidated%20Financial%20Statements%20and%20Other%20Financial%20Information) This sub-section details legal proceedings, including 152 pending silicosis claims with $39.2 million estimated exposure, and the revised dividend policy - The company is in arbitration with its former South African distributor, WOMAG. An arbitrator ruled in WOMAG's favor on the merits, and the second phase to determine the quantum of damages is anticipated to commence in 2020[699](index=699&type=chunk)[701](index=701&type=chunk) - As of December 31, 2019, the company faced **152** pending lawsuits related to silicosis and other bodily injuries from silica dust exposure. The estimated total exposure for pending lawsuits in Israel is approximately **$39.2 million**[703](index=703&type=chunk)[712](index=712&type=chunk) - A class action lawsuit in Israel has a proposed settlement agreement for approximately **NIS 9.0 million (approx. $2.6 million)**, which is pending court approval and is opposed by the Israeli State Attorney General[711](index=711&type=chunk) - In **February 2020**, the dividend policy was revised to a quarterly cash dividend of up to **50%** of year-to-date reported net income attributable to controlling interest, provided the calculated dividend is at least **$0.10** per share[717](index=717&type=chunk) [Additional Information](index=111&type=section&id=Item%2010%3A%20Additional%20Information) This section covers corporate governance, share capital, acquisition procedures under Israeli law, and detailed Israeli and U.S. federal income tax considerations [Memorandum of Association and Articles of Association](index=111&type=section&id=B.%20Memorandum%20of%20Association%20and%20Articles%20of%20Association) The company's authorized share capital is 200,000,000 ordinary shares, with Israeli law governing shareholder meetings and acquisition procedures - The company's authorized share capital consists of **200,000,000** ordinary shares, par value **NIS 0.04** per share[731](index=731&type=chunk) - The quorum for a shareholder meeting is at least two shareholders holding at least **25%** of the voting power[741](index=741&type=chunk) - Israeli law includes provisions for special tender offers when an acquisition results in a holding of at least **25%** or more than **45%** of voting rights, and for a full tender offer for acquisitions resulting in over **90%** holding[745](index=745&type=chunk)[749](index=749&type=chunk) [Taxation](index=117&type=section&id=E.%20Taxation) This sub-section details Israeli and U.S. tax considerations, including reduced Israeli corporate tax rates and U.S. tax treatment of dividends and capital gains - The standard corporate tax rate in Israel is **23%**. However, under the "Preferred Enterprise" program, the company's Sdot-Yam facility is taxed at **16%** and its Bar-Lev facility is taxed at **7.5%**[778](index=778&type=chunk)[795](index=795&type=chunk) - Dividends paid to non-Israeli residents are generally subject to a **25%** withholding tax (or **20%** if from a Preferred Enterprise), which may be reduced by an applicable tax treaty[815](index=815&type=chunk) - For U.S. Holders, distributions are generally treated as dividend income. Gains on the sale of shares are treated as capital gains, which will generally be U.S. source income for foreign tax credit purposes[828](index=828&type=chunk)[832](index=832&type=chunk) - The company does not believe it was a PFIC for the **2019** taxable year but notes that its status is an annual determination and a future classification as a PFIC would subject U.S. Holders to adverse tax rules[836](index=836&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=127&type=section&id=Item%2011%3A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces significant foreign currency risk, with a 10% AUD decrease impacting operating income by $8.5 million and NIS by $8.0 million - The company has significant exposure to fluctuations in the **Australian dollar**, **Canadian dollar**, **NIS**, and **Euro** against its U.S. dollar functional currency[853](index=853&type=chunk) Sensitivity Analysis of Operating Income to 10% Currency Fluctuation (2019, USD millions) | Currency Change | Impact on Operating Income (USD millions) | | :--- | :--- | | 10% decrease in AUD vs. USD | -$8.5 | | 10% decrease in CAD vs. USD | -$5.7 | | 10% decrease in NIS vs. USD | +$8.0 | | 10% increase in EUR vs. USD | -$2.5 | - As of December 31, 2019, the company held foreign currency forward contracts with a total notional value of **$36.6 million** to manage currency risk[861](index=861&type=chunk)[863](index=863&type=chunk) PART II [Controls and Procedures](index=130&type=section&id=Item%2015%3A%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2019 - Management concluded that as of **December 31, 2019**, the company's disclosure controls and procedures were effective[873](index=873&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of **December 31, 2019**[875](index=875&type=chunk) [Corporate Governance and Other Matters](index=131&type=section&id=Item%2016%3A%20Corporate%20Governance%20and%20Other%20Matters) This section covers audit committee financial experts, the Code of Ethics, principal accountant fees, and foreign private issuer governance practices - The Board of Directors has determined that both **Ofer Borovsky** and **Irit Ben-Dov** qualify as "audit committee financial experts"[878](index=878&type=chunk) Principal Accountant Fees (USD thousands) | Fee Type | 2019 | 2018 | | :--- | :--- | :--- | | Audit fees | $472 | $657 | | Audit-related fees | $48 | $27 | | Tax fees | $49 | $25 | | All other fees | $249 | $60 | | **Total** | **$818** | **$769** | - As a foreign private issuer, the company follows its home country practice for shareholder meeting quorum, which is **25%** of voting power, instead of the Nasdaq requirement of **33 1/3%** of issued share capital[890](index=890&type=chunk) PART III [Financial Statements](index=132&type=section&id=Item%2018%3A%20Financial%20Statements) This section presents the full audited consolidated financial statements for Caesarstone Ltd. for the fiscal year ended December 31, 2019 - The report includes the audited consolidated financial statements of Caesarstone Ltd. and its subsidiaries as of and for the three years in the period ended **December 31, 2019**[912](index=912&type=chunk) Consolidated Balance Sheet Summary (As of Dec 31, USD thousands) | | 2019 | 2018 | | :--- | :--- | :--- | | **Total Assets** | **$703,866** | **$616,922** | | Total Current Assets | $374,406 | $350,104 | | Total Long-term Assets | $329,460 | $266,818 | | **Total Liabilities and Equity** | **$703,866** | **$616,922** | | Total Current Liabilities | $126,366 | $111,281 | | Total Long-term Liabilities | $99,776 | $39,140 | | Total Equity | $477,724 | $466,501 | Consolidated Statement of Income Summary (Year ended Dec 31, USD thousands) | | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | **Revenues** | **$545,974** | **$575,871** | **$588,147** | | Gross profit | $148,639 | $163,414 | $197,223 | | Operating income | $24,683 | $32,767 | $40,543 | | **Net income attributable to controlling interest** | **$12,862** | **$24,405** | **$26,202** |

Caesarstone Ltd. (NASDAQ:CSTE) Q4 2019 Earnings Conference Call February 12, 2020 8:30 AM ET Company Participants Brad Cray - IR Yuval Dagim - Chief Executive Officer Ophir Yakovian - Chief Financial Officer Conference Call Participants John Baugh - Stifel Asaf Barel Chandali - Oppenheimer Operator Greetings, and welcome to the Caesarstone Fourth Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator ...

Caesarstone Ltd. (NASDAQ:CSTE) Q3 2019 Earnings Conference Call November 6, 2019 8:30 AM ET Company Participants Brad Cray - IR Yuval Dagim - CEO Ophir Yakovian - CFO Conference Call Participants Dillard Watt - Stifel Operator Greetings, welcome to the Caesarstone Third Quarter 2019 Earnings Conference Call. [Operator Instructions] A brief question-and-answer session will follow the formal presentation. [Operator Instructions] It is now my pleasure to introduce your host, Brad Cray of ICR. Thank you. You ma ...

Caesarstone Ltd (NASDAQ:CSTE) Q2 2019 Earnings Conference Call August 7, 2019 8:30 AM ET Company Participants Brad Cray - Investor Relations Yuval Dagim - Chief Executive Officer Ophir Yakovian - Chief Financial Officer Conference Call Participants Michael Rehaut - JP Morgan Dillard Watt - Stifel Operator Greetings, and welcome to the Caesarstone Limited Second Quarter 2019 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the confer ...

Caesarstone Ltd. (NASDAQ:CSTE) Q1 2019 Results Earnings Conference Call May 1, 2019 8:30 AM ET Company Participants Brad Cray - Investor Relations Yuval Dagim - Chief Executive Officer Ophir Yakovian - Chief Financial Officer Conference Call Participants John Baugh - Stifel Operator Greetings, and welcome to the Caesarstone First Quarter 2019 Earnings Conference Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instruc ...

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, 2018 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 ...

Caesarstone Ltd. (NASDAQ:CSTE) Q4 2018 Earnings Conference Call February 6, 2019 8:30 AM ET Company Participants Brad Cray - ICR Yuval Dagim - Chief Executive Officer Ophir Yakovian - Chief Financial Officer Conference Call Participants John Baugh - Stifel Operator Greetings, and welcome to the Caesarstone Fourth Quarter and Full Year 2018 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 Inst ...