Investor Presentation 2023 slide image

Investor Presentation 2023

ADJUSTED EBITDA RECONCILIATION USD (0,000) 2012A 2013 A 2014A 2015A 2016A 2017 A 2018A 2019A 2020A 2021A 2022A Net income (loss) $40,367 $64,353 $80,256 $79,458 $76,483 $27,558 $24,568 $12,862 $7,622 $17,889 Finance Expense (income), net 2,773 1,314 1,048 3,085 3,318 5,583 3,639 5,578 10,199 7,590 ($56,366) (3,079) Taxes on income 6,821 10,336 13,738 13,843 13,003 7,402 4,560 6,243 4,700 1,950 758 Depreciation and Amortization 14,368 14,994 17,176 22,334 28,254 29,926 28,590 28,587 29,460 35,407 36,344 Legal settlements and loss contingencies (1) 4,654 5,868 24,797 8,903 12,359 6,319 3,283 568 Compensation paid by a shareholder (2) 266 Excess cost of acquired inventory (3) 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 - Inventory change of estimate -3,458 Follow-on expenses (5) IPO bonus 1,470 657 1,970 Contingent consideration adjustment 255 284 120 Litigation gain -1,001 Provision for employees fringe benefits (6) Settlement with the tax authorities 939 -134 -114 Acquisition related expenses Impairment expenses related to goodwill and long-lived assets Non- recurring items (7) ADJUSTED EBITDA % OF SALES 921 80 71,258 0 $69,445 23.4% $91,711 25.7% $116,553 26.1% $125,667 25.2% $129,994 24.1% $100,429 17.1% 3,261 $75,205 13.1% -214 684 $69,046 62,079 $68,248 $51,869 12.6% 12.8% 10.6% 7.5% 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 adjustments to on-going legal claims. (2) One time bonus paid by a shareholder to Company's employees. (3) 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. (4) 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. (5) Consists of direct expenses related to a follow-on offering that closed in June 2014. (6) 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. (7) Relates mainly to one time workforce reduction expenses, non-recurring import related expenses and relocation expenses of Caesarstone USA headquarters (Company's subsidiary). Investor Presentation 2023 25
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