Caesarstone Ltd.

Greetings and welcome to the Caesarstone Limited Second Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Brad Cray. Investor Relations. Please go ahead, sir.

Thank you, Operator, and good morning to everyone. I am joined by Yuval Dagim, Cesar Stone's Chief Executive Officer, and Ophir Yakovian, Cesar Stone's Chief Financial Officer. Certain statements in today's conference call and responses to various questions may constitute forward-looking statements. We caution you that such statements reflect only the company's current expectations and that actual events or results may differ materially. For more information, please refer to the risk factors contained in the company's most recent annual report on Form 20F and subsequent filings with the Securities and Exchange Commission. In addition, on this call, the company will make reference to certain non-GAAP financial measures, including adjusted net income, adjusted net income per share, adjusted gross profit and adjusted EBITDA. The reconciliation of these non-GAAP measures to the most directly comparable GAAP measures can be found in the company's second quarter 2019 earnings release, which is posted on the company's investor relations website. Thank you, and I would now like to turn the call over to Yuval. Please go ahead.

Thank you, Brad, and good morning, everyone. In the first half of 2019, we have completed a build-out of our core leadership team and began executing our global growth acceleration plan. The plan is designed to improve operation efficiencies and reignite growth through a variety of projects across our business and functions while better allocating our resources. As part of this plan, and as previously announced in May, we completed a global headcount reduction of approximately 7% across all our business units to improve our efficiencies and cost structure in a range of areas. In conjunction with these actions, we reduced effective capacity in our U.S. manufacturing facility by 50%. We work to improve our performance and refine our production strategy to increase efficiency and optimize our inventory as already reflected in our results. We are managing a global growth acceleration plan under 10 work streams, covering all aspects of our business. From innovation, production, and supply chain to our brand and go-to-market. I am excited with the unified determination of our team to drive improvement in our business through these projects. As part of realignment of our North American operation earlier this year, our progress is evident from encouraging results in our core business in the U.S., which grew 12% year over year. We are in a process of significantly expanding our U.S. sales force to further improve our presence in large under-print-rated metropolitan areas. We expect to keep expanding the U.S. sales force through 2020 as we see great potential in this market and expect a high return on our investment. Regarding tariffs, our global markets are adjusting to the new conditions following the final resolution on imported quartz countertops from China to the US. These newly imposed duties have adversely impacted our markets outside the US, mainly in Australia and Canada that have seen more competition coming from China. The impact was greater than anticipated and resulted in softer than expected performance during the second quarter. While the expected benefits of our initiatives give us confidence in achieving our full-year EBITDA outlook for 2019. We adjusted our expectations from revenue to reflect a more competitive environment than originally anticipated. In conclusion, we are pleased with our overall progress that we saw in our initiatives during the second quarter. As we continue to improve our scalability for new growth opportunities, I look forward to updating you further on our progress next quarter. And with that, let me turn the call over to Afir, who will provide details on our results and outlook.