CAESARSTONE SDOT-YAM LTD.
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Date: May 6, 2015
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By:
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/s/ Yair Averbuch
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Name: Yair Averbuch
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Title: Chief Financial Officer
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Exhibit
99.1
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Description
Press release titled “Caesarstone Reports First Quarter 2015 Results,” dated May 6, 2015.
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Caesarstone Sdot-Yam Ltd. and its subsidiaries
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Consolidated balance sheets
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As of
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U.S. dollars in thousands
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March 31, 2015
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December 31, 2014
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(Unaudited)
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(Audited)
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ASSETS
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CURRENT ASSETS:
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Cash and cash equivalents and short-term bank deposits
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$ | 41,130 | $ | 54,327 | ||||
Trade receivables, net
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58,890 | 56,217 | ||||||
Other accounts receivable and prepaid expenses
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25,330 | 22,729 | ||||||
Inventories
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90,839 | 80,212 | ||||||
Total current assets
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216,189 | 213,485 | ||||||
LONG-TERM ASSETS:
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Severance pay fund
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3,725 | 3,744 | ||||||
Long-term deposits and prepayments
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709 | 759 | ||||||
Total long-term assets
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4,434 | 4,503 | ||||||
PROPERTY, PLANT AND EQUIPMENT, NET
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202,489 | 172,993 | ||||||
OTHER ASSETS
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9,206 | 10,059 | ||||||
GOODWILL
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36,542 | 37,960 | ||||||
Total assets
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$ | 468,860 | $ | 439,000 | ||||
LIABILITIES AND EQUITY
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CURRENT LIABILITIES:
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Short-term bank credit
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$ | 5,128 | - | |||||
Short-term loans from related parties
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2,586 | 2,748 | ||||||
Trade payables
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72,540 | 59,430 | ||||||
Account payables to related parties
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1,086 | 1,227 | ||||||
Accrued expenses and other liabilities
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24,403 | 25,774 | ||||||
Total current liabilities
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105,743 | 89,179 | ||||||
LONG-TERM LIABILITIES:
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Long-term loan and financing leaseback from a related party
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8,671 | 8,993 | ||||||
Accrued severance pay
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4,194 | 4,217 | ||||||
Long-term warranty provision
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1,154 | 1,145 | ||||||
Deferred tax liabilities, net
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4,021 | 4,935 | ||||||
Share-based payment
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966 | 805 | ||||||
Total long-term liabilities
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19,006 | 20,095 | ||||||
REDEEMABLE NON-CONTROLLING INTEREST
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7,989 | 8,715 | ||||||
COMMITMENTS AND CONTINGENT LIABILITIES
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EQUITY:
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Ordinary shares
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369 | 369 | ||||||
Additional paid-in capital
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140,112 | 139,964 | ||||||
Accumulated other comprehensive income
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(1,932 | ) | (534 | ) | ||||
Retained earnings
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197,573 | 181,212 | ||||||
Total equity
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336,122 | 321,011 | ||||||
Total liabilities and equity
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$ | 468,860 | $ | 439,000 |
Caesarstone Sdot-Yam Ltd. and its subsidiaries
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Consolidated statements of income
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Three months ended March 31,
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U.S. dollars in thousands (except per share data)
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2015
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2014
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(Unaudited)
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(Unaudited)
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Revenues
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$ | 107,811 | $ | 94,414 | ||||
Cost of revenues
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62,497 | 55,227 | ||||||
Gross profit
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45,314 | 39,187 | ||||||
Operating expenses:
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Research and development
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708 | 603 | ||||||
Marketing and selling
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15,562 | 13,719 | ||||||
General and administrative
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8,299 | 7,598 | ||||||
Total operating expenses
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24,569 | 21,920 | ||||||
Operating income
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20,745 | 17,267 | ||||||
Finance expenses, net
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1,892 | 1,565 | ||||||
Income before taxes on income
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18,853 | 15,702 | ||||||
Taxes on income
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2,471 | 2,229 | ||||||
Net income
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$ | 16,382 | $ | 13,473 | ||||
Net income attributable to non-controlling interest
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(21 | ) | (203 | ) | ||||
Net income attributable to controlling interest
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$ | 16,361 | $ | 13,270 | ||||
Basic net income per ordinary share
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$ | 0.47 | $ | 0.38 | ||||
Diluted net income per ordinary share
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$ | 0.46 | $ | 0.37 | ||||
Weighted average number of ordinary shares used in computing basic income per ordinary share
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35,146,499 | 34,808,850 | ||||||
Weighted average number of ordinary shares used in computing diluted income per ordinary share
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35,465,204 | 35,394,963 |
Caesarstone Sdot-Yam Ltd. and its subsidiaries
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Condensed Consolidated statements of cash flows on a Non-GAAP Basis (Unaudited)
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Three months ended
March 31,
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U.S. dollars in thousands
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2015
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2014
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Cash flows from operating activities:
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Net income
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$ | 16,382 | $ | 13,473 | ||||
Adjustments required to reconcile net income to net cash provided by operating activities:
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Depreciation and amortization
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4,681 | 4,245 | ||||||
Share-based compensation expense
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(266 | ) | 618 | |||||
Accrued severance pay, net
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(4 | ) | 49 | |||||
Changes in deferred tax, net
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(2,015 | ) | (1,305 | ) | ||||
Increase in trade receivables
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(2,673 | ) | (1,391 | ) | ||||
Increase (decrease) in other accounts receivable and prepaid expenses
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(1,500 | ) | 88 | |||||
Increase in inventories
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(10,627 | ) | (11,199 | ) | ||||
Increase (decrease) in trade payables
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(681 | ) | 1,716 | |||||
Increase (decrease) in warranty provision
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(231 | ) | 26 | |||||
Increase (decrease) in accrued expenses and other liabilities including related parties
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(374 | ) | 569 | |||||
Net cash provided by operating activities
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2,692 | 6,889 | ||||||
Cash flows from investing activities:
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Purchase of property, plant and equipment
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(19,835 | ) | (6,380 | ) | ||||
Decrease (increase) in long term deposits
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50 | (1,586 | ) | |||||
Net cash used in investing activities
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(19,785 | ) | (7,966 | ) | ||||
Cash flows from financing activities:
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Short-term bank credit and loans, net
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5,128 | (269 | ) | |||||
Repayment of a financing leaseback related to Bar-Lev transaction
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(269 | ) | (295 | ) | ||||
Net cash provided by (used in) financing activities
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4,859 | (564 | ) | |||||
Effect of exchange rate differences on cash and cash equivalents
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(963 | ) | 179 | |||||
Increase (decrease) in cash and cash equivalents and short-term bank deposits
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(13,197 | ) | (1,462 | ) | ||||
Cash and cash equivalents short-term bank deposits at beginning of the period
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54,327 | 92,248 | ||||||
Cash and cash equivalents and short-term bank deposits at end of the period
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$ | 41,130 | $ | 90,786 | ||||
Non - cash investing:
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Purchase of fixed assets with credit from suppliers
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13,791 | 4,444 |
Caesarstone Sdot-Yam Ltd. and its subsidiaries (Unaudited) |
Three months ended
March 31,
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U.S. dollars in thousands
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2015
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2014
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Reconciliation of Net Income to Adjusted EBITDA:
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Net income
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$ | 16,382 | $ | 13,473 | ||||
Finance expenses, net
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1,892 | 1,565 | ||||||
Taxes on income
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2,471 | 2,229 | ||||||
Depreciation and amortization
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4,681 | 4,245 | ||||||
Share-based compensation expense (a)
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88 | 618 | ||||||
Adjusted EBITDA (Non-GAAP)
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$ | 25,514 | $ | 22,130 |
(a)
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Share-based compensation includes expenses related to stock options and phantom awards granted to employees of the Company.
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Caesarstone Sdot-Yam Ltd. and its subsidiaries (Unaudited)
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Three months ended
March 31,
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U.S. dollars in thousands
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2015
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2014
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Reconciliation of net income attributable to controlling interest to
adjusted net income attributable to controlling interest:
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Net income attributable to controlling interest
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$ | 16,361 | $ | 13,270 | ||||
Share-based compensation expense (a)
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88 | 618 | ||||||
Total adjustments
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88 | 618 | ||||||
Less tax on non-tax adjustments (b)
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12 | 88 | ||||||
Total adjustments after tax
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76 | 530 | ||||||
Adjusted net income attributable to controlling interest (Non-GAAP)
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$ | 16,437 | $ | 13,800 | ||||
Adjusted diluted EPS (c)
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$ | 0.46 | $ | 0.39 |
(a)
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Share-based compensation includes expenses related to stock options and phantom awards granted to employees of the Company.
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(b)
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Tax adjustments for the three months ended March 31, 2015 and 2014 were based on the effective tax rates for these periods, respectively.
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(c)
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In calculating adjusted diluted (non-GAAP) EPS, the diluted weighted average number of shares outstanding excludes the effects of share-based compensation expense in accordance with FASB ASC 718.
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Caesarstone Sdot-Yam Ltd. and its subsidiaries
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Geographic breakdown of revenues by region (Unaudited)
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Three months ended
March 31,
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U.S. dollars in thousands
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2015
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2014
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USA
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$ | 48,014 | $ | 37,626 | ||||
Australia
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23,370 | 21,319 | ||||||
Canada
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13,927 | 11,737 | ||||||
Israel
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9,850 | 11,261 | ||||||
Europe
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4,653 | 4,698 | ||||||
Rest of World
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7,997 | 7,773 | ||||||
$ | 107,811 | $ | 94,414 |