Caesarstone Ltd.

Greetings and welcome to the Caesarstone fourth quarter 2019 earnings 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, Mr. Brad Cray with ICR. Thank you. You may begin.

Thank you, Operator, and good morning to everyone. I am joined by Yuval Dagim, Caesarstone's Chief Executive Officer, and Ophir Yakovian, Caesarstone'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 fourth 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. During 2019, we built stronger foundations through our Global Growth Acceleration Plan, which we began executing During the second quarter, and I'm very pleased with the progress we've made so far. The plan has already positively impacted our business by allowing us to better execute our plans and deploy resources in areas of production, supply chain, technology, sales and marketing. The projects we initiated under the Global Growth Acceleration Plan will continue to contribute and improve our performance over the long term. As we look forward, 2020 is off to an encouraging start. We have reached an important milestone in our strategy to enter the U.S. big box channel. We recently introduced Sizzleton branded products at all U.S. Home Depot stores, adding to the ongoing strong momentum in this region. In addition, we are reinvigorating our product portfolio. We have recently introduced our new durable outdoor luxury product line. An exciting evolution of our quartz applications in a relatively underpenetrated market segment. This groundbreaking outdoor collection recently won the most innovative product award at KBIS 2020. More broadly, we are on a pace to launch several exciting new models in 2020 that are intended to boost growth initiatives in our global markets. Our company's focus is on the U.S. where we see the greatest opportunity for growth. We are investing a lot of resources to make sure we realize this opportunity. In the U.S., we've continued the expansion of our sales force and I'm very happy with the progress we've made. In addition, we have increased our marketing budgets to better support our brand which is a valuable asset we want to leverage. Improving the level of service to our customers is one of the key growth drivers As part of the Global Growth Acceleration Plan, we are investing in redeploying our logistic distribution network in the U.S. in order to improve service and reduce costs. We are also improving our planning and forecasting for implementing new technology and processes. During the second half of 2018 through the first half of 2019, we reduced our production capacity utilizations. The purpose of this move was to balance our inventory and improve our cash flow generation. During 2019, we significantly reduced our inventories and generated solid cash flow from operating activities. Given our plans for 2020, in response to expected demand and to improve service to our customers, we plan to return to full production in all our factories by the second quarter. The exciting initiatives and projects we have planned for 2020 under the Global Growth Acceleration Plan give us confidence in our ability to accomplish our objectives of this year. We remain committed to strengthening our operating infrastructure, optimizing our product portfolio, and positioning our business for improved results in the years to come. With that, let me turn the call over to Ophir, who will provide details on our results and outlook.