Investor Presentation 2023 slide image

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 23
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