CAESARSTONE LTD.
|
|||
Date: March 13, 2017
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By:
|
/s/ Michal Baumwald Oron | |
Name: Michal Baumwald Oron
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Title: Vice President Business Development & General Counsel
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Exhibit
|
Description
|
99.1
|
Financial tables.
|
Caesarstone Ltd. and its subsidiaries
|
|||||
Condensed consolidated balance sheets
|
As of
|
||||||||
U.S. dollars in thousands
|
December 31,
2016
|
December 31,
2015
|
||||||
(Unaudited)
|
(Audited)
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents and short-term bank deposits
|
$
|
106,270
|
$
|
62,807
|
||||
Trade receivables, net
|
63,072
|
59,185
|
||||||
Other accounts receivable and prepaid expenses
|
39,484
|
32,230
|
||||||
Inventories
|
101,474
|
95,479
|
||||||
Total current assets
|
310,300
|
249,701
|
||||||
LONG-TERM ASSETS:
|
||||||||
Severance pay fund
|
3,403
|
3,296
|
||||||
Other receivables long-term
|
7,977
|
8,603
|
||||||
Total long-term assets
|
11,380
|
11,899
|
||||||
PROPERTY, PLANT AND EQUIPMENT, NET
|
222,818
|
225,438
|
||||||
OTHER ASSETS
|
4,546
|
6,883
|
||||||
GOODWILL
|
35,656
|
35,821
|
||||||
Total assets
|
$
|
584,700
|
$
|
529,742
|
||||
LIABILITIES AND EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Short-term bank credit
|
$
|
8,540
|
$
|
3,241
|
||||
Trade payables
|
48,633
|
46,382
|
||||||
Related party and other loan
|
3,099
|
3,251
|
||||||
Accrued expenses and other liabilities
|
33,065
|
27,986
|
||||||
Total current liabilities
|
93,337
|
80,860
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Long-term loan and financing leaseback from a related party
|
8,070
|
8,472
|
||||||
Legal settlements and loss contingencies long-term
|
12,527
|
11,190
|
||||||
Accrued severance pay
|
4,265
|
4,309
|
||||||
Long-term warranty provision
|
988
|
934
|
||||||
Deferred tax liabilities, net
|
14,921
|
14,767
|
||||||
Share-based payment
|
-
|
148
|
||||||
Total long-term liabilities
|
40,771
|
39,820
|
||||||
REDEEMABLE NON-CONTROLLING INTEREST
|
12,939
|
8,841
|
||||||
EQUITY:
|
||||||||
Ordinary shares
|
371
|
370
|
||||||
Treasury shares - at cost
|
(39,430
|
)
|
-
|
|||||
Additional paid-in capital
|
146,536
|
142,765
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||||||
Accumulated other comprehensive loss
|
(1,150
|
)
|
(1,892
|
)
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||||
Retained earnings
|
331,326
|
258,978
|
||||||
Total equity
|
437,653
|
400,221
|
||||||
Total liabilities and equity
|
$
|
584,700
|
$
|
529,742
|
Caesarstone Ltd. and its subsidiaries
|
||||||
Condensed consolidated statements of income
|
Three months ended
December 31,
|
Twelve months ended
December 31,
|
|||||||||||||||
U.S. dollars in thousands (except per share data)
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|||||||||||||
Revenues
|
$
|
134,975
|
$
|
127,361
|
$
|
538,543
|
$
|
499,515
|
||||||||
Cost of revenues
|
83,543
|
79,143
|
326,057
|
299,290
|
||||||||||||
Gross profit
|
51,432
|
48,218
|
212,486
|
200,225
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development
|
713
|
993
|
3,290
|
3,052
|
||||||||||||
Marketing and selling
|
18,568
|
15,047
|
70,343
|
59,521
|
||||||||||||
General and administrative
|
9,930
|
9,599
|
40,181
|
36,612
|
||||||||||||
Legal settlements and loss contingencies, net
|
3,115
|
(64
|
)
|
5,868
|
4,654
|
|||||||||||
Total operating expenses
|
32,326
|
25,575
|
119,682
|
103,839
|
||||||||||||
Operating income
|
19,106
|
22,643
|
92,804
|
96,386
|
||||||||||||
Finance expenses, net
|
1,000
|
688
|
3,318
|
3,085
|
||||||||||||
Income before taxes on income
|
18,106
|
21,955
|
89,486
|
93,301
|
||||||||||||
Taxes on income
|
2,790
|
2,563
|
13,003
|
13,843
|
||||||||||||
Net income
|
$
|
15,316
|
$
|
19,392
|
$
|
76,483
|
$
|
79,458
|
||||||||
Net income attributable to non-controlling interest
|
(248
|
)
|
(682
|
)
|
(1,887
|
)
|
(1,692
|
)
|
||||||||
Net income attributable to controlling interest
|
$
|
15,068
|
$
|
18,710
|
$
|
74,596
|
$
|
77,766
|
||||||||
Basic net income per ordinary share
|
$
|
0.37
|
$
|
0.53
|
$
|
2.08
|
$
|
2.21
|
||||||||
Diluted net income per ordinary share
|
$
|
0.37
|
$
|
0.53
|
$
|
2.08
|
$
|
2.19
|
||||||||
Weighted average number of ordinary shares used in computing basic income per ordinary share
|
34,321,573
|
35,294,755
|
34,706,303
|
35,252,596
|
||||||||||||
Weighted average number of ordinary shares used in computing diluted income per ordinary share
|
34,356,672
|
35,451,861
|
34,763,920
|
35,463,698
|
Caesarstone Ltd. and its subsidiaries
|
||||
Selected Condensed consolidated statements of cash flows (Unaudited)
|
Twelve months ended
December 31,
|
||||||||
U.S. dollars in thousands
|
2016
|
2015
|
||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
76,483
|
$
|
79,458
|
||||
Adjustments required to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
28,254
|
22,334
|
||||||
Share-based compensation expense
|
3,068
|
2,293
|
||||||
Accrued severance pay, net
|
(150
|
)
|
540
|
|||||
Changes in deferred tax, net
|
(963
|
)
|
7,051
|
|||||
Capital loss
|
32
|
-
|
||||||
Legal settlemnets and loss contingencies, net
|
5,868
|
4,654
|
||||||
Compensation paid by a shareholder
|
266
|
-
|
||||||
Increase in trade receivables
|
(4,184
|
)
|
(2,968
|
)
|
||||
Decrease (increase) in other accounts receivable and prepaid expenses
|
(5,617
|
)
|
(3,069
|
)
|
||||
Increase in inventories
|
(5,376
|
)
|
(15,267
|
)
|
||||
Increase (decrease) in trade payables
|
1,424
|
(8,659
|
)
|
|||||
Increase (decrease) in warranty provision
|
100
|
(447
|
)
|
|||||
Increase (decrease) in accrued expenses and other liabilities including related party
|
2,314
|
(259
|
)
|
|||||
Net cash provided by operating activities
|
101,519
|
85,661
|
||||||
Cash flows from investing activities:
|
||||||||
Purchase of property, plant and equipment
|
(22,943
|
)
|
(76,495
|
)
|
||||
Proceeds from sale of property, plant and equipment
|
22
|
-
|
||||||
Increase in long term deposits
|
(452
|
)
|
(1,228
|
)
|
||||
Net cash used in investing activities (*)
|
(23,373
|
)
|
(77,723
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Dividend paid by subsidiary to non-controlling interest
|
(243
|
)
|
-
|
|||||
Changes in short-term bank credit and loans, net
|
5,157
|
3,241
|
||||||
Repayment of a financing leaseback related to Bar-Lev transaction
|
(1,100
|
)
|
(1,092
|
)
|
||||
Purchase of treasury shares at cost
|
(39,430
|
)
|
-
|
|||||
Net cash provided by (used in) financing activities
|
(35,616
|
)
|
2,149
|
|||||
Effect of exchange rate differences on cash and cash equivalents
|
933
|
(1,607
|
)
|
|||||
Increase in cash and cash equivalents and short-term bank deposits
|
43,463
|
8,480
|
||||||
Cash and cash equivalents and short-term bank deposits at beginning of the period
|
62,807
|
54,327
|
||||||
Cash and cash equivalents and short-term bank deposits at end of the period
|
$
|
106,270
|
$
|
62,807
|
||||
Non - cash investing:
|
||||||||
Changes in trade payables balances related to purchase of fixed assets
|
(403
|
)
|
(4,389
|
)
|
Caesarstone Ltd. and its subsidiaries |
Three months ended
December 31,
|
Twelve months ended
December 31,
|
|||||||||||||||
U.S. dollars in thousands
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
(Unaudited) | ||||||||||||||||
Reconciliation of Net Income to Adjusted EBITDA:
|
||||||||||||||||
Net income
|
$
|
15,316
|
$
|
19,392
|
$
|
76,483
|
$
|
79,458
|
||||||||
Finance expenses, net
|
1,000
|
688
|
3,318
|
3,085
|
||||||||||||
Taxes on income
|
2,790
|
2,563
|
13,003
|
13,843
|
||||||||||||
Depreciation and amortization
|
7,211
|
6,706
|
28,254
|
22,334
|
||||||||||||
Legal settlements and loss contingencies, net (a)
|
3,115
|
(64
|
)
|
5,868
|
4,654
|
|||||||||||
Compensation paid by a shareholder (b)
|
-
|
-
|
266
|
-
|
||||||||||||
Share-based compensation expense (c)
|
535
|
1,147
|
3,068
|
2,293
|
||||||||||||
Adjusted EBITDA (Non-GAAP)
|
$
|
29,967
|
$
|
30,432
|
$
|
130,260
|
$
|
125,667
|
(a)
|
Consists of legal settlements expenses and loss contingencies, net, related to silicosis claims.
|
||||||||
(b)
|
One time bonus paid by a shareholder to Company's employees.
|
||||||||
(c)
|
Share-based compensation includes expenses related to stock options and restricted stock units granted to employees of the Company.
|
||||||||
In addition, includes expenses for phantom awards granted and related payroll expenses as a result of exercises.
|
Caesarstone Ltd. and its subsidiaries
|
Three months ended
December 31,
|
Twelve months ended
December 31,
|
|||||||||||||||
U.S. dollars in thousands (except per share data)
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
(Unaudited) | ||||||||||||||||
Reconciliation of net income attributable to controlling interest to
adjusted net income attributable to controlling interest:
|
||||||||||||||||
Net income attributable to controlling interest
|
$
|
15,068
|
$
|
18,710
|
$
|
74,596
|
$
|
77,766
|
||||||||
Legal settlements and loss contingencies, net (a)
|
3,115
|
(64
|
)
|
5,868
|
4,654
|
|||||||||||
Compensation paid by a shareholder (b)
|
-
|
-
|
266
|
-
|
||||||||||||
Share-based compensation expense (c)
|
535
|
1,147
|
3,068
|
2,293
|
||||||||||||
Tax adjustment (d)
|
-
|
-
|
(1,158
|
)
|
-
|
|||||||||||
Total adjustments
|
3,650
|
1,083
|
8,044
|
6,947
|
||||||||||||
Less tax on non-tax adjustments (e)
|
572
|
104
|
1,456
|
1,031
|
||||||||||||
Total adjustments after tax
|
3,078
|
979
|
6,588
|
5,916
|
||||||||||||
Adjusted net income attributable to controlling interest (Non-GAAP)
|
$
|
18,146
|
$
|
19,689
|
$
|
81,184
|
$
|
83,682
|
||||||||
Adjusted diluted EPS (f)
|
$
|
0.53
|
$
|
0.55
|
$
|
2.33
|
$
|
2.36
|
(a)
|
Consists of legal settlements expenses and loss contingencies, net, related to silicosis claims.
|
||||||
(b)
|
One time bonus paid by a shareholder to Company's employees.
|
||||||
(c)
|
Share-based compensation includes expenses related to stock options and restricted stock units granted to employees of the Company. In addition, includes expenses for phantom awards granted and the related payroll expenses as a result of exercises.
|
||||||
(d)
|
Tax adjustment as a result of tax settlement with the Israeli tax authorities.
|
||||||
(e)
|
Tax adjustments for the three and twelve months ended December 31, 2016 and 2015 were based on the effective tax rates for these periods, respectively.
|
||||||
(f)
|
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.
|
Caesarstone Ltd. and its subsidiaries
|
Geographic breakdown of revenues by region (Unaudited)
|
Three months ended
December 31,
|
Twelve months ended
December 31,
|
|||||||||||||||
U.S. dollars in thousands
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
USA
|
$
|
54,963
|
$
|
56,549
|
$
|
222,597
|
$
|
223,341
|
||||||||
Australia (incl. New Zealand)
|
36,062
|
30,687
|
130,910
|
110,290
|
||||||||||||
Canada
|
21,460
|
17,879
|
85,740
|
70,739
|
||||||||||||
Israel
|
9,816
|
9,592
|
42,545
|
39,645
|
||||||||||||
Europe
|
5,199
|
5,479
|
25,606
|
23,948
|
||||||||||||
Rest of World
|
7,475
|
7,176
|
31,145
|
31,552
|
||||||||||||
$
|
134,975
|
$
|
127,361
|
$
|
538,543
|
$
|
499,515
|