Caesarstone(CSTE) - 2022 Q1 - Quarterly Report

Financial Performance - First quarter 2022 revenue reached a record $170.4 million, up 16.7% year-over-year, and 18.5% on a constant currency basis[2][4] - Net income attributable to controlling interest for the first quarter was $6.2 million, or $0.18 per share, compared to $14.2 million, or $0.41 per share, in the prior year quarter[10] - Adjusted EBITDA for the first quarter was $15.7 million, representing a margin of 9.2%, down from $20.3 million and a margin of 13.9% in the prior year quarter[8] - Gross margin in the first quarter was 25.3%, down from 29.7% in the prior year quarter, primarily due to higher shipping and raw material costs[5] - Operating income decreased to $7.0 million in the first quarter from $10.0 million in the prior year quarter, reflecting higher operating expenses[7] - Total revenues for the three months ended March 31, 2022, were $170,438,000, an increase from $146,032,000 in the same period of 2021, representing a growth of approximately 16.5%[24] - Operating income decreased to $6,982,000 from $10,038,000, reflecting a decline of about 30.5%[24] - Net income attributable to controlling interest was $6,228,000, down from $14,190,000, indicating a decrease of approximately 56%[24] - Basic net income per ordinary share was $0.18, compared to $0.41 in the prior year, a decline of about 56%[24] - Adjusted net income attributable to controlling interest was $4,698, a decline of 67.5% from $14,434 in the prior year[31] Revenue and Growth - The company expects 2022 revenue to be in the range of $710 million to $725 million, implying approximately 11% growth over 2021 at the midpoint[13] - Revenue from the USA grew by 20.3% to $85,237, while revenue from Canada increased by 33.5% to $23,734[32] - Total current assets increased to $414,250,000 from $408,526,000, showing a growth of approximately 1.8%[21] - Total equity increased to $502,868,000 from $494,295,000, reflecting a growth of about 1.5%[22] Expenses and Costs - Operating expenses in the first quarter were $36.2 million, or 21.2% of revenue, compared to $33.3 million, or 22.8% of revenue in the prior year quarter[6] - Research and development expenses were $904,000, down from $1,105,000, indicating a reduction of approximately 18.2%[24] - Share-based compensation expense was $388 for the three months ended March 31, 2022, compared to $567 in the same period last year[29] - Legal settlements and loss contingencies resulted in a net expense of $(876) for the three months ended March 31, 2022[29] Cash Flow and Liquidity - As of March 31, 2022, the company had cash and cash equivalents of $64.2 million and total debt of $11.8 million[11] - Cash flows from operating activities were negative at $(23,260) for the three months ended March 31, 2022, compared to positive cash flow of $2,162 in 2021[26] - Cash and cash equivalents at the end of the period were $50,533, down from $99,820 at the end of the same period last year[26] Product Development - The company launched 8 new quartz designs in the first quarter and plans to introduce a new porcelain collection in the third quarter[3]