Investor Presentation 2023
ADJUSTED NET INCOME RECONCILIATION
USD (0,000)
2012A
2013A
2014A
2015A
2016A
2017 A
2018A
2019A
2020A
2021A
2022A
Net income (loss) attributable to controlling interest $39,632
Legal settlements and loss contingencies (1)
Compensation paid by a shareholder (2)
Excess cost of acquired inventory (3)
$63,344
$78,436
$77,766
4,654
$74,596
5,868
$26,202
24,797
$24,405
$12,862
$7,218
$18,966
8,903
12,359
6,319
3,283
($57,054)
568
266
885
188
231
Share-based compensation expense (4)
3,007
2,514
2,642
2,293
3,068
5,277
1,684
3,631
2,858
1,845
1,502
IPO bonus
1,970
Caesarstone USA contingent consideration
adjustment
255
284
120
Inventory change of estimate
-3,458
Follow-on expenses (5)
Litigation gain
1,470
657
-1,001
Microgil loan and inventory write down
Provision for employees fringe benefits (6)
Settlement with the tax authorities
Non cash revaluation of lease liabilities (7)
Amortization of assets related to acquisitions, net of
tax
Acquisitions related expenses
Impairment expenses related to goodwill and long-lived
assets
Non-recurring items (8)
Tax adjustment (9)
Total adjustments before tax
Less tax on above adjustments
Total adjustments after tax
ADJUSTED NET INCOME
% OF SALES
939
-114
-134
3,615
3,189
2,918
(9,527)
446
2,391
2,084
921
80
71,258
684
3,261
986
342
-1,158
$5,116
$714
$4,677
$6,947
$8,044
$29,960
$740
$4,376
$44,008
14.8%
$99
$618
$1,031
$1,456
$615
$4,059
$5,916
$63,959
17.9%
$82,495
18.4%
$83,682
16.8%
$6,588
$81,184
15.1%
$6,343
$23,617
$13,848
$2,168
$11,680
$20,591
$6,729
$13,862
$13,733
$10,721
$4,488
$9,245
$1,054
$9,667
$66,769
($910)
$67,679
$49,819
$36,085
$26,724
$16,463
$28,634
$10,625
8.5%
6.3%
4.9%
3.4%
4.4%
1.5%
caesarstone®
(1) Consists of legal settlements expenses and loss contingencies, net, in 2017 related primarily to Kfar Giladi arbitration, as well as to product liability claims and other One time bonus paid by a shareholder to Company's employees. (2) Consists of charges to cost of goods
sold for the difference between the higher carrying cost of the inventory of two of the Company's subsidiaries- Caesarstone USA's inventory at the time of its acquisition and inventory that was purchased from its distributor and Caesarstone Australia Pty Limited's inventory that
was purchased from its distributor, and the standard cost of the Company's inventory- which adversely impacts the Company's gross margins until such inventory is sold. The majority of the inventory acquired from Caesarstone USA was sold in 2011, and the majority of the
inventory acquired from the Australian distributor was sold in 2012. (3) 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. (4) Consists of direct expenses related to a follow-on offering that closed in June 2014. (5) Relates to an adjustment of provision for taxable employee fringe benefits as a result of a settlement with the Israel Tax Authority and
with the National Insurance Institute of Israel. (6) Relates to an adjustment of provision for taxable employee fringe benefits as a result of a settlement with the Israeli Tax Authority and with the National Insurance Intitute of Israel. (7) Exchange rate differences deriving from
revaluation of lease contracts in accordance with ASC 842 (8) Relates mainly to non-recurring import related expenses and relocation expenses of Caesarstone USA headquarters (Company's subsidiary). (9) Tax adjustments for the three and twelve months ended December
31, 2017 and 2016 were based on the effective tax rates for these periods, respectively.
Investor Presentation 2023
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