Caesarstone Ltd. (CSTE) Q3 2024 Earnings Call Transcript

Global Revenue $107.6 million, down 24.8% year-over-year; decline driven by lower volumes due to global economic headwinds, particularly in residential renovation and remodeling channels.

U.S. Sales $52.4 million, down 20.5% year-over-year; decline mainly due to softer residential end markets and less favorable product mix.

Canada Sales Down 23.8% on a constant currency basis; similar market dynamics as the U.S. contributed to the decline.

Australia Sales Down approximately 37.7% on a constant currency basis; decline mainly due to slower market conditions and the transition to alternative materials.

EMEA Region Sales Down 26% on a constant currency basis; slow market conditions in the U.K., Sweden, and indirect EMEA business contributed to the decline.

Israel Sales Down 24.5% on a constant currency basis; decline mainly due to the war on terror significantly reducing activity in the region.

Gross Margin 19.9%, improved from 19.1% year-over-year; improvement driven by benefits of an improved production footprint, partially offset by unfavorable product mix and increased shipping and material costs.

Adjusted Gross Margin 19.8%, stable compared to the prior year quarter; stability attributed to improved production footprint.

Operating Expenses $25.4 million (23.6% of revenue), down from $29.2 million (20.5% of revenue) year-over-year; lower absolute dollars but higher percentage due to lower revenues.

Adjusted EBITDA Loss of $4.1 million, compared to a gain of $1.9 million in the prior year quarter; decline attributed to lower revenues and increased costs.

Cash and Short Term Deposits $114.1 million; strong balance sheet position.

Total Debt $5.2 million; indicates low leverage.

Net Cash Position Improved to $108.9 million from $83.5 million at the end of 2023; reflects strong cash generation.

Operating Cash Flow $16.3 million generated during the third quarter; driven primarily by the sale of land and continued working capital optimization.