Caesarstone Ltd.

Greetings. Welcome to the Caesarstone First Quarter 2020 Earnings Conference Call. At this time, all participants are in listen-only mode. A brief 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. It is now my pleasure to introduce your host, Brad Cray of ICR. Thank you. You may now begin.

Thank you, Operator, and good morning to everyone. I am joined by Yuval Deguin, 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 20-F and subsequent filings with the SEC. 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, adjusted EBITDA, and constant currency. The reconciliation of these non-GAAP measures to the most directly comparable GAAP measures can be found in the company's first quarter 2020 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. I would first like to say that our hearts and thoughts go out to all of those who have been impacted by the unfortunate COVID-19 pandemic. We express our gratitude to all the frontline workers around the world who are showing up day and night to help us all overcome this crisis. The world has changed a great deal in just a matter of a few months, so I would like to also thank all our employees across the globe who are dedicated to working safely and supporting our customers during this unprecedented time. Our solid first quarter 2020 results reflect The focused implementation and execution of our Global Growth Acceleration Plan that we have communicated over the past year, which is focused on creating more efficiencies and ultimately driving sustained growth. Our aggressive efforts to control costs, streamline processes, and place the right talent allowed us to achieve positive first quarter performance, including the expansion of gross margin and EBITDA We were happy with the strong performance of our global sales teams who collectively outperform our original plan before the impact of COVID-19 on our business. In the U.S., we have achieved tremendous progress in executing our sales strategy and building momentum in all channels. We have begun to see particularly positive impact from our continued ramp-up in our Home Depot sales, which is encouraging. While our strong first quarter results do not reflect the current market environment, they are indicative the new level of operational outperformance that the business has reached as well as the future potential. Around the last year, we significantly reduced our inventories and generated solid cash flow from operating activities. leaving our balance sheet in a very defensible position with $132 million in cash as of March 31, 2020. These actions have collectively provided us with the added financial and operational flexibility to navigate the unprecedented global impact of the COVID-19 pandemic. Given that health and safety are at the core of Caesarstone's culture as an organization, In this uncertain environment, our top priority is maintaining the health and safety of our employees, partners, and customers. During the quarter, we rapidly implemented necessary measures to preserve capital and ensure continuity of operations with safety at the forefront, while continuing to deliver exceptional service to our customers. As an example, we took immediate actions At the onset of the crisis, to cut non-essential travel, implement work-from-home policies, and maintain strict social distancing practices across all of our production facilities and warehouses. As of today, all of our manufacturing facilities remain operational, and we continue to service our customers in accordance with the applicable shelter-in-place orders in many of our countries where we operate globally. Through our business continuity plans, we have turned our immediate focus to the controllable aspects of the business, given the evolving pandemic across our global footprint has limited our near-term visibility on industry demand. As we look forward, we are aware that demand for our products has started to meaningfully slow down as we were ending the quarter, and we are expecting to see demand remain pressured as people remain home. We have evaluated many different possible demand scenarios and have applied necessary enhancements to our cost structure and operations to mitigate this uncertain period of lower demand. We are prepared to flex our capacity as needed to drive margins and revenue opportunities. As shelter-in-place orders begin to ease We expect our cash preservation measures during this period of low demand to help drive structural changes in our cost base. Equally important for us is remaining flexible with enhancements that we have already made in our business to get them assured. These are advantages that we will look to further build upon as the market recovers. Despite the challenges ahead, we remain committed to our global growth acceleration plan to improve operational efficiencies, better align resources throughout our business, and help us emerge from this present climate as an even stronger company. While current market challenges will likely delay a portion of our strategic initiatives in 2020, our long-term strategy to reignite growth is unchanged. We are very pleased with our first quarter results. I am very proud of our team's achievements and have the utmost confidence in our ability to overcome the challenging period ahead. We believe our strong brand reputation and diverse product offerings combined with our ongoing cost savings initiatives, strong balance sheet, and near-term focus on preserving cash should collectively leave us well-positioned Once we begin to return to normal operating conditions across our diverse geographic footprint. With that, let me turn the call over to Ophir, who will provide details on our results and outlook.