Caesarstone(US:CSTE)2024-11-13 12:31Revenue Performance - Revenue for Q3 2024 was $107.6 million, down 24.8% year-over-year on a constant currency basis, primarily due to lower volumes impacted by global economic headwinds [4]. - Revenues for Q3 2024 were $107,634 thousand, a decrease of 24.4% compared to $142,394 thousand in Q3 2023 [25]. - Total revenues for Q3 2024 decreased by 24.4% year-over-year to $107.634 million, compared to $142.394 million in Q3 2023 [36]. - Total revenues for the nine months ended September 30, 2024, were $345.358 million, a decrease of 20.9% compared to $436.706 million for the same period in 2023 [36]. - Revenue from the USA dropped by 20.5% year-over-year to $52.388 million in Q3 2024, down from $65.880 million in Q3 2023 [36]. - Revenue from Canada decreased by 25.1% year-over-year to $14.207 million in Q3 2024, compared to $18.956 million in Q3 2023 [36]. - Latin America experienced a significant decline of 85.5% year-over-year in Q3 2024, with revenues falling to $239, down from $1.650 million in Q3 2023 [36]. - Revenue from Australia fell by 36.2% year-over-year to $17.443 million in Q3 2024, compared to $27.326 million in Q3 2023 [36]. - The APAC region saw a revenue decline of 29.9% year-over-year in Q3 2024, totaling $23.878 million, down from $34.073 million in Q3 2023 [36]. - EMEA revenues decreased by 23.4% year-over-year to $11.627 million in Q3 2024, compared to $15.185 million in Q3 2023 [36]. - Revenue from Israel dropped by 20.4% year-over-year to $5.295 million in Q3 2024, down from $6.650 million in Q3 2023 [36]. - The company reported a year-over-year decline in total revenues across all major regions, indicating a challenging market environment [36]. Profitability and Loss - Gross margin improved to 19.9% in Q3 2024, compared to 19.1% in the prior year quarter, driven by an optimized production footprint [5]. - Operating loss for Q3 2024 was $4.1 million, compared to a loss of $2.0 million in the prior year quarter, reflecting lower gross profit [7]. - Net loss attributable to controlling interest was $4.2 million, with a net loss per share of $0.12, compared to a net loss of $0.9 million and $0.03 per share in the prior year [9]. - Gross profit for Q3 2024 was $21,366 thousand, down 21.5% from $27,189 thousand in Q3 2023 [25]. - Adjusted Gross profit for Q3 2024 was $21,290 thousand, down 24.5% from $28,135 thousand in Q3 2023 [29]. - Operating loss for Q3 2024 was $4,074 thousand, compared to a loss of $1,987 thousand in Q3 2023, indicating a worsening of 105.4% [25]. - Net loss attributable to controlling interest for Q3 2024 was $4,222 thousand, compared to a loss of $887 thousand in Q3 2023, reflecting an increase of 376.5% [33]. - Full year Adjusted EBITDA loss is now expected to be in the range of $10 to $11 million due to persistent macroeconomic pressures [13]. Cash Flow and Financial Position - Positive cash flow from operations was $16.3 million in Q3 2024, down from $28.2 million in Q3 2023, mainly due to the land sale and working capital improvements [11]. - The net cash position improved to $108.9 million as of September 30, 2024, compared to $83.5 million as of December 31, 2023 [11]. - Cash and cash equivalents at the end of Q3 2024 were $114,077 thousand, up from $78,086 thousand at the end of Q3 2023, representing a 46.1% increase [28]. - Net cash provided by operating activities for the nine months ended September 30, 2024, was $34,985 thousand, a decrease from $53,336 thousand in the same period of 2023 [28]. Operating Expenses - Operating expenses were $25.4 million, or 23.6% of revenue, up from 20.5% in the prior year quarter, mainly due to lower revenues [6]. - Total operating expenses for Q3 2024 were $25,440 thousand, down from $29,176 thousand in Q3 2023, a decrease of 9.4% [25]. - Research and development expenses for Q3 2024 were $1,192 thousand, slightly down from $1,242 thousand in Q3 2023 [25]. - The company expects to achieve restructuring-related cost savings of approximately $20.0 million for the full year 2024 [13]. Inventory Management - The company reported a decrease in inventories of $25,975 thousand for the nine months ended September 30, 2024, compared to a decrease of $91,329 thousand in the same period of 2023 [28]. - The company is actively seeking to monetize additional property assets, including 51 acres of developed land [10].