Caesarstone Ltd.

Greetings, and welcome to the Caesarstone Second Quarter 2021 Earnings Conference Call. At this time, all participants are in a 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 Craig, Investor Relations. Thank you. You may begin.

Thank you, operator, and good morning to everyone. I am joined by Uvalda Gaines, Caesar Stone's Chief Executive Officer, Ophir Youkovian, Caesar Stone's Chief Financial Officer, and Nahum Trost, Director of Finance, who will succeed Ophir as Chief Financial Officer on September 1st, 2021. 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 SEC. In addition, on this call, the company will make reference to certain non-GAAP financial measures, including adjusted net income, loss, adjusted net income, loss 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 second quarter 2021 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. As we move further into 2021, I'm very pleased with the pace of recovery we've seen across our business since the unprecedented year of 2020, as demonstrated by our robust financial results this quarter. During the second quarter, we achieved record quarterly revenue of $163 million mainly driven by the focused execution of our Global Growth Acceleration Plan and our ability to capitalize on the continued recovery in the U.S., where we continue to see the greatest potential for growth. We also saw broad-based improvement in demand across our majority of our other global regions as economies around the world continue to recover from the pandemic. We drove top-line improvement in the U.S. through a combination of core business improvement, big box channel growth, and the encouraging contribution from our previously announced creative acquisition of Omicron, a premier stone supplier in Florida and Ohio Valley. It is also important to remember that one of our main strategic pillars is the focus on improving customer experience and customer engagement, a theme that is managed under the several projects in the Global Growth Acceleration Plan. In relation to this pillar, and as we have previously discussed, CS Connect is a transformative digital platform that introduces a technological leap in the way we communicate and connect with our customers and consumers to effectively manage the consumer purchase journey. We recently started implementing CS Connect in several of our key US markets as planned, and we are happy with the initial feedback and progress we've made. This follows the successful pilot program in Australia during early 2021. In the coming quarters, we expect to expand the rollout of this platform across the US and Canada. However, The initial U.S. launch is already opening new doors for our expanded U.S. sales force to establish new relationships and improve engagement. Additionally, our success continues to be bolstered by further penetration into the big box channel through sales of ScissorTone branded slabs at U.S. Home Depot stores. I would also note that our relationship with IKEA remains very important to us. and we are encouraged to see the recovery in ourselves into this retailer. On the M&A side, our integration of both Omicron and Dioli continued to progress in line with our plan. Omicron has proven to be extremely complementary to our geographic footprint in the U.S., bringing us closer to our customers and allowing us to take a vertically integrated approach to capture strong countertop demand in attractive high-growth areas most notably in Florida, where demand remains strong. Separately, our Lioli acquisition continues to be additive to our sales, mainly in the APEC region. And into the third quarter, we are excited to introduce pilot sales of ScissorStone-branded Lioli porcelain slabs in Israel. This is an initial step in the launch of a new and exciting porcelain collection under the ScissorStone brand across our global footprint. Looking at the cost side, we are pleased with our ability to flex capacity to meet demand, while we continuously evaluate additional opportunities to create efficiencies throughout our operations. So far in 2021, our team has displayed unwavering commitment to effectively mitigate global supply chain and inflation challenges, impacting ScissorStone and our industry for careful cost management. In summary, We are highly encouraged by the execution of our strategy, which resulted in a significant growth during the second quarter and the first half of 2021. We are leveraging a world-class Syrston brand to capture recovering countertop demand across our global footprint. We are utilizing innovative technology-based go-to-market initiatives, such as CS Connect, to enhance customer experience and engagement. We are carefully monitoring raising material and shipping costs and are constantly evaluating opportunities to improve efficiencies in the operations, and we are focused on successfully developing, testing, and introducing premium multi-material offerings to grow our addressable market in the quarters and years to come. In July, we announced the promotion of Nahum Trust, our Director of Finance. to the position of Chief Financial Officer beginning on September 1st, 2021, as Ophir embarks on his next career opportunity. Nahum has demonstrated outstanding leadership and financial expertise during his seven years with ScissorStone. Nahum has been a key player with implementing our Global Growth Acceleration Plan over the past several years. I'm confident that Nahum will be an excellent addition to our executive team, and we anticipate a seamless transition. Now, before I hand the call over to Ophir to discuss our financial results in Outlook, I would like to personally thank him for all his contributions. We have had great partnership together over the last three years. His leadership and achievements have helped us immensely to build strong foundations for the future of Caesarstone, and I wish him the best of luck on his next journey. I will now turn the call to Ophiel.