Business Wire | May 5, 2021 07:00AM EDT

Caesarstone Reports First Quarter 2021 Financial Results

May 05, 2021

MP MENASHE, Israel--(BUSINESS WIRE)--May 05, 2021--Caesarstone Ltd. (NASDAQ: CSTE), a leading developer and manufacturer of high-quality engineered surfaces, today reported financial results for its first quarter ended March 31, 2021.

"We are extremely pleased to produce another consecutive quarter of growth as we continue to successfully execute our strategy to transform Caesarstone into a leading premium, multi-material countertop company," commented Yuval Dagim, Caesarstone's Chief Executive Officer. "Our recently completed accretive acquisitions of Omicron and Lioli Ceramica are already contributing to results, helping us to deliver record first quarter revenue. Our collective actions since we announced our Global Growth Acceleration Plan two years ago have allowed us to establish an efficient global operating platform, resulting in our third consecutive quarter of year-on-year EBITDA margin expansion. We are encouraged with the progress we have made integrating Lioli and Omicron and are excited to further realize the unique benefits of each platform as a combined business. As we move forward, we will continue to leverage our innovative go-to-market initiatives, world-class brand and multi-material product offerings to drive additional value for our shareholders."

(*) Cash position is defined as cash and cash equivalents and short-term bank deposits and long and short-term investment in marketable securities less debt from financial institutions.

First Quarter 2021 Results

Revenue in the first quarter of 2021 grew 15.4% to $146.0 million compared to $126.6 million in the prior year quarter. On a constant currency basis, first quarter revenue was higher by 9.8% year-over-year, due primarily to the contribution of acquisitions.

Gross margin in the first quarter improved to 29.7% compared to 28.8% in the prior year quarter. Adjusted gross margin in the first quarter was 30.1% compared to 28.9% in the prior year quarter. The year-over-year improvement in gross margin mainly reflects better product mix, improved efficiency and more favorable currency exchange rates, partly offset by the impact of higher manufacturing unit costs due to lower fixed cost absorption and lower selling prices.

Operating expenses in the first quarter were $33.3 million, or 22.8% of revenue, compared to $34.1 million, or 27.0% of revenue in the prior year quarter. Excluding legal settlements and loss contingencies, operating expenses were 22.3% of revenue, compared to 24.7% in the prior year quarter, mainly due to higher revenues.

Operating income grew to $10.0 million compared to operating income of $2.3 million in the prior year quarter. The year-over-year growth mainly reflects higher gross margin and lower legal settlements and loss contingencies.

Adjusted EBITDA, which excludes expenses for share-based compensation, legal settlements and loss contingencies and for non-recurring items, grew 54.1% year-over-year to $20.3 million in the first quarter, representing a margin of 13.9%. This compares to adjusted EBITDA of $13.1 million, representing a margin of 10.4%, in the prior year quarter. The year-over-year margin improvement primarily reflects the higher gross margin.

Finance income in the first quarter was $5.3 million compared to finance income of $0.9 million in the prior year quarter. The difference was primarily a result of the favorable impact of foreign currency exchange rates and raw material hedging activity.

Net Income attributable to controlling interest for the first quarter was $14.2 million compared to net income of $2.7 million in the prior year quarter. Net income per share for the first quarter was $0.41 compared to net income per share of $0.08 in the prior year quarter. Adjusted diluted net income per share for the first quarter was $0.42 on 34.5 million shares, compared to adjusted diluted net income per share of $0.13 in the prior year quarter on a similar share count.

Balance Sheet & Liquidity

The Company's balance sheet as of March 31, 2021 remained strong, including cash, cash equivalents and short-term bank deposits and short and long-term marketable securities of $118.7 million and total debt to financial institutions of $13.4 million.

Dividend

The Company's dividend policy provides for a quarterly cash dividend of up to 50% of reported net income on a year-to-date basis, less any amount already paid as dividend for the respective period (the "calculated dividend"), subject in each case to approval by the Company's board of directors. No dividend is paid if it would be less than $0.10 per share. In accordance with the Company's dividend policy, the board of directors declared a cash dividend of $0.21 per share for the three months ended March 31, 2021. The dividend will be paid on June 1, 2021 to shareholders of record as of May 18, 2021. The dividend payment is subject to withholding tax of 20%.

Outlook

The Company reiterates its expectation for 2021 revenue and Adjusted EBITDA to be higher year-over-year. The company anticipates revenue to grow faster than EBITDA in 2021 mainly due to higher shipping and raw material costs, coupled with a return to more normalized levels of sales and marketing expenses and other investments to support the Company's growth initiatives. The Company's outlook includes the investment costs associated with its Global Growth Acceleration Plan. The Company's outlook also assumes that both pandemic related business restrictions will fade and that the supply environment will improve as the year progresses.

Webcast and Conference Call Details

The Company will host a live webcast and conference call today at 8:30 a.m. ET to discuss the results, followed by a question and answer session for the investment community. The live webcast of the call can be accessed at ir.caesarstone.com. For those unable to access the webcast, the conference call will be accessible by dialing 1-877-407-4018 (domestic) or +1-201-689-8471 (international). The toll-free Israeli number is 1 80 940 6247. Upon dialing in, please request to join the Caesarstone First Quarter Earnings Call.

To listen to a telephonic replay of the conference call, dial toll-free 1-844-512-2921 (domestic) or +1-412-317-6671 (international) and enter pass code 13718692. The replay will be available beginning at 11:30 a.m. ET on Wednesday, May 5, 2021 and will last through 11:59 p.m. ET on Wednesday, May 12, 2021.

About Caesarstone

Caesarstone is a concept and lifestyle-driven company with a customer-centered approach to designing, developing, and producing high-end engineered stone countertops, used in residential and commercial buildings. Our products offer superior aesthetic appeal and perfected functionality through a distinct variety of colors, styles, textures, and finishes used in diverse countertop applications, marked by inherent longevity. Strong commitment to service has fostered growing customer loyalty in over 50 countries where the Caesarstone product collections are available: Classico, Supernatural, Metropolitan and Outdoor. For more information please visit our website: www.caesarstone.com.

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 U.S. dollars using constant foreign currency exchange rates in the current and comparable period. The Company provides these non-GAAP financial measures because it believes that they present a better measure of the Company's core business and management uses the non-GAAP measures internally to evaluate the Company's ongoing performance. Accordingly, the Company believes that they are useful to investors in enhancing an understanding of the Company's operating performance.

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" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to the Company's plans, objectives and expectations for future operations, including estimations relating to the impact of the COVID-19 pandemic and mitigation measures in connection thereto, expectations of the results of the Company's business optimization initiative, integration of the company's acquisitions and its projected outlook and results of operations. These forward-looking statements are based upon management's current estimates and projections of future results or trends. 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 impact of the COVID-19 pandemic on end-consumers, economic conditions in our key markets, raw material shortages and prices, fluctuations in home renovation and construction sectors; the company's ability to compete with lower-priced products and other intense competitive pressures; the outcome of silicosis and other bodily injury claims; regulatory requirements relating to hazards associated with exposure to silica dust; ability to efficiently manufacture products and managing required changes in production and supply chain in light of our recent acquisitions; fluctuations in currency exchange rates; the success of our expansion efforts in the United States; unpredictability of seasonal fluctuations in revenues and other factors discussed under the heading "Risk Factors" in our most recent annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Caesarstone Ltd. and its subsidiariesCondensed consolidated balance sheets

As ofU.S. dollars in thousands March 31, December 2021 31, 2020 (Unaudited) (Audited)ASSETS CURRENT ASSETS: Cash and cash equivalents and short-term bank $ 99,820 $ 114,248depositsShort-term available for sale marketable 11,697 8,112securitiesTrade receivables, net 84,533 84,822

Other accounts receivable and prepaid expenses 35,425 26,481

Inventories 155,402 152,073

Total current assets 386,877 385,736

LONG-TERM ASSETS: Severance pay fund 3,766 4,007

Other long-term receivables 3,773 3,837

Deferred tax assets, net 7,763 8,359

Long-term deposits and prepaid expenses 768 1,675

Operating lease right-of-use assets 121,531 123,928

Long-term available for sale marketable 7,170 10,926securitiesProperty, plant and equipment, net 219,631 222,883

Goodwill and intangible assets, net 58,717 59,570

Total long-term assets 423,119 435,185

Total assets $ 809,996 $ 820,921

LIABILITIES AND EQUITY CURRENT LIABILITIES: Short-term bank credit $ 4,403 $ 13,122

Trade payables 59,846 55,063

Related parties and other loans 2,227 2,221

Short term legal settlements and loss 19,277 31,039contingenciesAccrued expenses and other liabilities 54,391 55,570

Total current liabilities 140,144 157,015

LONG-TERM LIABILITIES: Long-term bank and other loans and financing 17,213 20,706liability of land from a related partyLegal settlements and loss contingencies 21,660 21,910long-termDeferred tax liabilities, net 6,456 6,943

Long-term lease liabilities 108,743 112,719

Accrued severance pay 5,129 5,303

Long-term warranty provision 1,274 1,274

Total long-term liabilities 160,475 168,855

REDEEMABLE NON-CONTROLLING INTEREST 7,500 7,701

EQUITY: Ordinary shares 371 371

Treasury shares - at cost (39,430) (39,430)

Additional paid-in capital 160,651 160,083

Capital fund related to non-controlling interest (5,587) (5,587)

Accumulated other comprehensive loss 1,008 1,083

Retained earnings 384,864 370,830

Total equity 501,877 487,350

Total liabilities and equity $ 809,996 $ 820,921

Caesarstone Ltd. and its subsidiariesCondensed consolidated statements of incomeThree months ended March 31,

U.S. dollars in thousands (except per share data)2021

2020

(Unaudited)Revenues$ 146,032

$ 126,557

Cost of revenues102,730

90,156

Gross profit43,302

36,401

Operating expenses:Research and development1,105

780

Marketing and selling18,276

18,629

General and administrative13,143

11,867

Legal settlements and loss contingencies, net740

2,838

Total operating expenses33,264

34,114

Operating income10,038

2,287

Finance income, net(5,333)

(869)

Income before taxes15,371

3,156

Taxes on income1,529

478

Net income$ 13,842

$ 2,678

Net loss attributable to non-controlling interest348

-

Net income attributable to controlling interest$ 14,190

$ 2,678

Basic net income per ordinary share (*)$ 0.41

$ 0.08

Diluted net income per ordinary share (*)$ 0.41

$ 0.08

Weighted average number of ordinary shares used in computing basic income per ordinary share34,439,783

34,399,916

Weighted average number of ordinary shares used in computing diluted income per ordinary share34,489,432

34,448,505

Caesarstone Ltd. and its subsidiariesCondensed consolidated statements of income Three months ended March 31,

U.S. dollars in thousands (except per share data) 2021 2020

(Unaudited) Revenues $ 146,032 $ 126,557

Cost of revenues 102,730 90,156

Gross profit 43,302 36,401

Operating expenses:Research and development 1,105 780

Marketing and selling 18,276 18,629

General and administrative 13,143 11,867

Legal settlements and loss contingencies, net 740 2,838

Total operating expenses 33,264 34,114

Operating income 10,038 2,287

Finance income, net (5,333) (869)

Income before taxes 15,371 3,156

Taxes on income 1,529 478

Net income $ 13,842 $ 2,678

Net loss attributable to non-controlling interest 348 -

Net income attributable to controlling interest $ 14,190 $ 2,678

Basic net income per ordinary share (*) $ 0.41 $ 0.08

Diluted net income per ordinary share (*) $ 0.41 $ 0.08

Weighted average number of ordinary shares used in 34,439,783 34,399,916computing basic income per ordinary shareWeighted average number of ordinary shares used in 34,489,432 34,448,505computing diluted income per ordinary share (*) The numerator for the calculation of net income per share for the three months ended March 31, 2021 has been decreased by approximately $0.2 million, to reflect the adjustment to redemption value associated with the redeemable non-controlling interest. (*) The numerator for the calculation of net income per share for the three months ended March 31, 2021 has been decreased by approximately $0.2 million, to reflect the adjustment to redemption value associated with the redeemable non-controlling interest. Caesarstone Ltd. and its subsidiariesSelected Condensed consolidated statements of cash flowsThree months ended March 31,

U.S. dollars in thousands2021

2020

(Unaudited)Cash flows from operating activities:Net income$ 13,842

$ 2,678

Adjustments required to reconcile net income to net cash provided by operating activities:Depreciation and amortization8,908

7,115

Share-based compensation expense567

906

Accrued severance pay, net69

(86)

Changes in deferred tax, net101

(1,060)

Capital (gain) loss(2)

17

Legal settlements and loss contingencies, net740

2,838

Decrease (increase) in trade receivables179

(3,075)

Decrease (increase) in other accounts receivable and prepaid expenses(9,299)

2,268

Increase in inventories(3,344)

(11,737)

Increase in trade payables2,987

2,009

Increase (decrease) in warranty provision(9)

52

Changes in right of use assets2,328

2,576

Changes in lease liabilities(3,968)

(515)

Amortization of premium and accretion of discount on marketable securities, net70

-

Changes in Accrued interest related to Marketable Securities13

-

Decrease in accrued expenses and other liabilities including related parties(11,020)

(580)

Net cash provided by operating activities2,162

3,406

Cash flows from investing activities:Repayment of assumed shareholders loan related to acquisition(1,966)

-

Purchase of property, plant and equipment(4,727)

(8,500)

Proceeds from sale of property, plant and equipment4

8

Investment in marketable securities78

-

Increase in long term deposits48

(731)

Net cash used in investing activities(6,563)

(9,223)

Cash flows from financing activities:Changes in short-term bank credits and long-term loans(9,704)

(459)

Repayment of a financing leaseback related to Bar-Lev transaction(323)

(305)

Net cash used in financing activities(10,027)

(764)

Effect of exchange rate differences on cash and cash equivalents-

(927)

Decrease in cash and cash equivalents and short-term bank deposits(14,428)

(7,508)

Cash and cash equivalents and short-term bank deposits at beginning of the period114,248

139,372

Cash and cash equivalents and short-term bank deposits at end of the period$ 99,820

$ 131,864

Non - cash investing:Changes in trade payables balances related to purchase of fixed assets(158)

(564)

Caesarstone Ltd. and its subsidiariesSelected Condensed consolidated statements of cash flows

Three months ended March 31,

U.S. dollars in thousands 2021 2020

(Unaudited)Cash flows from operating activities: Net income $ 13,842 $ 2,678

Adjustments required to reconcile net income to netcash provided by operating activities:Depreciation and amortization 8,908 7,115

Share-based compensation expense 567 906

Accrued severance pay, net 69 (86)

Changes in deferred tax, net 101 (1,060)

Capital (gain) loss (2) 17

Legal settlements and loss contingencies, net 740 2,838

Decrease (increase) in trade receivables 179 (3,075)

Decrease (increase) in other accounts receivable and (9,299) 2,268prepaid expensesIncrease in inventories (3,344) (11,737)

Increase in trade payables 2,987 2,009

Increase (decrease) in warranty provision (9) 52

Changes in right of use assets 2,328 2,576

Changes in lease liabilities (3,968) (515)

Amortization of premium and accretion of discount on 70 -marketable securities, netChanges in Accrued interest related to Marketable 13 -SecuritiesDecrease in accrued expenses and other liabilities (11,020) (580)including related parties Net cash provided by operating activities 2,162 3,406

Cash flows from investing activities: Repayment of assumed shareholders loan related to (1,966) -acquisitionPurchase of property, plant and equipment (4,727) (8,500)

Proceeds from sale of property, plant and equipment 4 8

Investment in marketable securities 78 -

Increase in long term deposits 48 (731)

Net cash used in investing activities (6,563) (9,223)

Cash flows from financing activities: Changes in short-term bank credits and long-term loans (9,704) (459)

Repayment of a financing leaseback related to Bar-Lev (323) (305)transaction Net cash used in financing activities (10,027) (764)

Effect of exchange rate differences on cash and cash - (927)equivalents Decrease in cash and cash equivalents and short-term (14,428) (7,508)bank depositsCash and cash equivalents and short-term bank deposits 114,248 139,372at beginning of the period Cash and cash equivalents and short-term bank deposits $ 99,820 $at end of the period 131,864

Non - cash investing:Changes in trade payables balances related to purchase (158) (564)of fixed assets Caesarstone Ltd. and its subsidiariesThree months ended March 31,

U.S. dollars in thousands2021

2020

(Unaudited)Reconciliation of Gross profit to Adjusted Gross profit:Gross profit$ 43,302

$ 36,401

Share-based compensation expense (a)105

131

Amortization of assets related to acquisitions534

-

Adjusted Gross profit (Non-GAAP)$ 43,941

$ 36,532

Caesarstone Ltd. and its subsidiaries Three months ended March 31,

U.S. dollars in thousands 2021 2020

(Unaudited)Reconciliation of Gross profit to Adjusted Gross profit:Gross profit $ 43,302 $ 36,401

Share-based compensation expense (a) 105 131

Amortization of assets related to acquisitions 534 -

Adjusted Gross profit (Non-GAAP) $ 43,941 $ 36,532

(a)Share-based compensation includes expenses related to stock options and restricted stock units granted to employees and directors of the Company.(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 subsidiariesThree months ended March 31,

U.S. dollars in thousands2021

2020

(Unaudited)Reconciliation of Net Income to Adjusted EBITDA:Net income$ 13,842

$ 2,678

Finance income, net(5,333)

(869)

Taxes on income1,529

478

Depreciation and amortization related to acquisitions8,908

7,115

Legal settlements and loss contingencies, net (a)740

2,838

Share-based compensation expense (b)567

906

Adjusted EBITDA (Non-GAAP)$ 20,253

$ 13,146

Caesarstone Ltd. and its subsidiaries Three months ended March 31,

U.S. dollars in thousands 2021 2020

(Unaudited)Reconciliation of Net Income to Adjusted EBITDA:Net income $ 13,842 $ 2,678

Finance income, net (5,333) (869)

Taxes on income 1,529 478

Depreciation and amortization related to acquisitions 8,908 7,115

Legal settlements and loss contingencies, net (a) 740 2,838

Share-based compensation expense (b) 567 906

Adjusted EBITDA (Non-GAAP) $ 20,253 $ 13,146

(a)Consists of legal settlements expenses and loss contingencies, net, related to product liability claims and other adjustments to on-going legal claims, including related legal fees.(b)Share-based compensation includes expenses related to stock options and restricted stock units granted to employees and directors of the Company. Consists of legal settlements expenses and loss contingencies, net,(a) related to product liability claims and other adjustments to on-going legal claims, including related legal fees.(b) 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 subsidiariesThree months ended March 31,

U.S. dollars in thousands (except per share data)2021

2020

(Unaudited)Reconciliation of net income attributable to controlling interest to adjusted net income attributable to controlling interest:Net income attributable to controlling interest$ 14,190

$ 2,678

Legal settlements and loss contingencies, net (a)740

2,838

Amortization of assets related to acquisitions, net of tax826

-

Share-based compensation expense (b)567

906

Non cash revaluation of lease liabilities (c)(1,862)

(1,471)

Total adjustments271

2,273

Less tax on non-tax adjustments (d)27

344

Total adjustments after tax244

1,929

Adjusted net income attributable to controlling interest (Non-GAAP)$ 14,434

$ 4,607

Adjusted diluted EPS (e)$ 0.42

$ 0.13

Caesarstone Ltd. and its subsidiaries Three months ended March 31,

U.S. dollars in thousands (except per share data) 2021 2020

(Unaudited)Reconciliation of net income attributable to controllinginterest to adjusted net income attributable to controllinginterest: $ $ 2,678Net income attributable to controlling interest 14,190

Legal settlements and loss contingencies, net (a) 740 2,838

Amortization of assets related to acquisitions, net of tax 826 -

Share-based compensation expense (b) 567 906

Non cash revaluation of lease liabilities (c) (1,862) (1,471)

Total adjustments 271 2,273

Less tax on non-tax adjustments (d) 27 344

Total adjustments after tax 244 1,929

Adjusted net income attributable to controlling interest $ $ 4,607(Non-GAAP) 14,434

Adjusted diluted EPS (e) $ 0.42 $ 0.13

(a)Consists of legal settlements expenses and loss contingencies, net, related to product liability claims and other adjustments to on-going legal claims, including related legal fees.(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.(d)Tax adjustments for the three months ended March 31, 2021 and 2020, based on the effective tax rates.(e)In calculating adjusted diluted (Non-GAAP) EPS for the three months ended March 31, 2021 and 2020, the diluted weighted average number of shares outstanding excludes the effects of share-based compensation expense in accordance with FASB ASC 718. Consists of legal settlements expenses and loss contingencies, net, related(a) to product liability claims and other adjustments to on-going legal claims, including related legal fees.(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.(d) Tax adjustments for the three months ended March 31, 2021 and 2020, based on the effective tax rates. In calculating adjusted diluted (Non-GAAP) EPS for the three months ended(e) March 31, 2021 and 2020, 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 subsidiariesGeographic breakdown of revenues by regionThree months ended March 31,

U.S. dollars in thousands2021

2020

(Unaudited)USA$ 70,831

$ 60,055

Canada17,779

18,558

Latin America858

506

America's89,468

79,119

Australia27,172

22,354

Asia7,777

2,831

APAC34,949

25,185

EMEA12,718

11,340

Israel8,897

10,913

Total Revenues$ 146,032

$ 126,557

Caesarstone Ltd. and its subsidiariesGeographic breakdown of revenues by region Three months ended March 31,

U.S. dollars in thousands 2021 2020

(Unaudited) USA $ 70,831 $ 60,055

Canada 17,779 18,558

Latin America 858 506

America's 89,468 79,119

Australia 27,172 22,354

Asia 7,777 2,831

APAC 34,949 25,185

EMEA 12,718 11,340

Israel 8,897 10,913

Total Revenues $ 146,032 $ 126,557

Caesarstone Ltd. and its subsidiariesGeographic breakdown of revenues by region - Supplemental data

Three months endedU.S. dollars in thousands3/31/202112/31/20209/30/20206/30/20203/31/202012/31/20199/30/20196/30/20193/30/2019(Unaudited)USA$ 70,831

$ 53,618

$ 52,097

$ 41,726

$ 60,055

$ 64,659

$ 64,805

$ 64,590

$ 56,417

Canada17,779

20,325

19,174

14,435

18,558

20,575

21,881

23,341

20,178

Latin America858

1,387

124

132

506

735

1,434

1,351

596

America's89,468

75,330

71,395

56,293

79,119

85,969

88,120

89,282

77,191

Australia27,172

29,953

27,746

23,534

22,354

26,000

28,642

28,294

25,214

Asia7,777

7,122

2,881

1,732

2,831

3,932

3,675

3,311

4,596

APAC34,949

37,075

30,627

25,266

25,185

29,932

32,317

31,605

29,810

EMEA12,718

14,408

11,422

8,031

11,340

9,464

11,719

11,418

10,455

Israel8,897

10,083

10,478

9,447

10,913

8,502

10,683

8,766

10,741

Total Revenues$ 146,032

$ 136,896

$ 123,922

$ 99,037

$ 126,557

$ 133,867

$ 142,839

$ 141,071

$ 128,197

Year-over-year % change3/31/202112/31/20209/30/20206/30/20203/31/2020(Unaudited)USA17.9%

-17.1%

-19.6%

-35.4%

6.4%

Canada-4.2%

-1.2%

-12.4%

-38.2%

-8.0%

Latin America69.6%

88.8%

-91.4%

-90.2%

-15.1%

America's13.1%

-12.4%

-19.0%

-36.9%

2.5%

Australia21.6%

15.2%

-3.1%

-16.8%

-11.3%

Asia174.7%

81.1%

-21.6%

-47.7%

-38.4%

APAC38.8%

23.9%

-5.2%

-20.1%

-15.5%

EMEA12.2%

52.2%

-2.5%

-29.7%

8.5%

Israel-18.5%

18.6%

-1.9%

7.8%

1.6%

Total Revenues15.4%

2.3%

-13.2%

-29.8%

-1.3%

Year-over-year % change in constant currency (*)3/31/202112/31/20209/30/20206/30/20203/31/2020(Unaudited)USA17.9%

-17.1%

-19.6%

-35.4%

6.4%

Canada-9.6%

-2.4%

-11.7%

-36.0%

-7.1%

Latin America69.8%

88.7%

-91.3%

-90.2%

-15.2%

America's11.8%

-12.7%

-18.8%

-36.4%

2.7%

Australia2.8%

7.9%

-7.1%

-11.5%

-3.3%

Asia169.5%

80.7%

-21.2%

-45.9%

-37.1%

APAC21.5%

17.5%

-8.7%

-15.1%

-8.5%

EMEA3.3%

45.8%

-5.9%

-26.9%

11.4%

Israel-24.6%

9.4%

-4.5%

4.5%

-1.5%

Total Revenues9.8%

-0.4%

-14.4%

-28.3%

0.5%

Caesarstone Ltd. and its subsidiariesGeographic breakdown of revenues by region - Supplemental data

Three months endedU.S.dollars 3/31/ 12/31/ 9/30/ 6/30/ 3/31/ 12/31/ 9/30/ 6/30/ 3/30/in 2021 2020 2020 2020 2020 2019 2019 2019 2019thousands (Unaudited) $ $ $ $ $ $ $ $ $USA 70,831 53,618 52,097 41,726 60,055 64,659 64,805 64,590 56,417

Canada 17,779 20,325 19,174 14,435 18,558 20,575 21,881 23,341 20,178

Latin 858 1,387 124 132 506 735 1,434 1,351 596AmericaAmerica's 89,468 75,330 71,395 56,293 79,119 85,969 88,120 89,282 77,191

Australia 27,172 29,953 27,746 23,534 22,354 26,000 28,642 28,294 25,214

Asia 7,777 7,122 2,881 1,732 2,831 3,932 3,675 3,311 4,596

APAC 34,949 37,075 30,627 25,266 25,185 29,932 32,317 31,605 29,810

EMEA 12,718 14,408 11,422 8,031 11,340 9,464 11,719 11,418 10,455

Israel 8,897 10,083 10,478 9,447 10,913 8,502 10,683 8,766 10,741

Total $ $ $ $ $ $ $ $ $Revenues 146,032 136,896 123,922 99,037 126,557 133,867 142,839 141,071 128,197

Year-over-year % change 3/31/ 12/31/ 9/30/ 6/30/ 3/31/ 2021 2020 2020 2020 2020 (Unaudited) USA 17.9% -17.1% -19.6% -35.4% 6.4%

Canada -4.2% -1.2% -12.4% -38.2% -8.0%

Latin 69.6% 88.8% -91.4% -90.2% -15.1%AmericaAmerica's 13.1% -12.4% -19.0% -36.9% 2.5%

Australia 21.6% 15.2% -3.1% -16.8% -11.3%

Asia 174.7% 81.1% -21.6% -47.7% -38.4%

APAC 38.8% 23.9% -5.2% -20.1% -15.5%

EMEA 12.2% 52.2% -2.5% -29.7% 8.5%

Israel -18.5% 18.6% -1.9% 7.8% 1.6%

Total 15.4% 2.3% -13.2% -29.8% -1.3%Revenues Year-over-year % change in constant currency (*) 3/31/ 12/31/ 9/30/ 6/30/ 3/31/ 2021 2020 2020 2020 2020 (Unaudited) USA 17.9% -17.1% -19.6% -35.4% 6.4%

Canada -9.6% -2.4% -11.7% -36.0% -7.1%

Latin 69.8% 88.7% -91.3% -90.2% -15.2%AmericaAmerica's 11.8% -12.7% -18.8% -36.4% 2.7%

Australia 2.8% 7.9% -7.1% -11.5% -3.3%

Asia 169.5% 80.7% -21.2% -45.9% -37.1%

APAC 21.5% 17.5% -8.7% -15.1% -8.5%

EMEA 3.3% 45.8% -5.9% -26.9% 11.4%

Israel -24.6% 9.4% -4.5% 4.5% -1.5%

Total 9.8% -0.4% -14.4% -28.3% 0.5%Revenues (*) Change in revenues at constant currency is calculated so that revenues can be viewed without the impact of fluctuations s in foreign currency exchange rates, thereby facilitating period-to-period comparisons of business performance. Change in revenues adjusted for currency are calculated by translating current period activity in local currency using the comparable prior-year period's currency conversion rate. Exchange rates used, are the representative exchange rate published by the Bank of Israel for the relevant periods. View source version on businesswire.com: https://www.businesswire.com/news/home/20210505005138/en/

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