Caesarstone Ltd.

Greetings and welcome to the Caesarstone third quarter 2021 earnings conference call. At this time, all participants are on a listen-only mode. A brief question and answer session will follow the formal presentation. If you would like to ask a question, please press star 1 on your telephone keypad. If anyone should require operator assistance during the conference, please press star 0 on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Brad Cray, Investor Relations. Thank you. Please go ahead.

Thank you, Operator, and good morning to everyone. I am joined by Yuval Begim, CaesarStone's Chief Executive Officer, and Nahum Trost, 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 20-S 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 third 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. Building on our solid first half 2021 performance, we were pleased to achieve third quarter results that demonstrated our ability to continue to effectively execute our global growth acceleration plan to drive business enhancements and value creation. We achieved yet another period of record quarterly revenue and our fourth sequential quarter of year-over-year revenue growth attributable to increasing demand for our best-in-class products across the U.S. and the majority of our global markets. In the U.S., we were encouraged to see significant growth in our sales driven by three areas, big box channel growth, core business growth, and the contribution of our Omicron acquisition. In the big box channel, our sales of ScissorStone branded slabs for U.S. Home Depot stores continued to be another bright spot as revenue increased nearly 50% year over year. We are also happy that our sales to IKEA US recovered substantially during the quarter. In addition, we drove core business improvement and experienced positive contributions from our acquisition of Omicron, a premier stone supplier in the highly attractive markets of Florida and Ohio Valley. we are starting to see the benefits of synergies from Omicron. The geographic and service benefits from this acquisition have been very encouraging, and we could not be more pleased with the integration efforts of our teams. Our APAC region continues to benefit from sales related to our Leoli acquisition, and we remain excited to launch an innovative new porcelain collection under the Sizzleton brand next year. As it relates to business enhancement initiatives, during the third quarter we rolled out our innovative CS Connect platform nationally across the U.S. as planned. We view this national rollout as another critical milestone in our efforts to expand the reach of this digital platform that is helping us to simplify the content of purchases process and create a step change in the way we communicate with our customers and consumers. The feedback received from our partners and customers has been very positive, and we are currently evaluating implementation of the platform in several of our other global regions. Separately, as we discussed last quarter, our teams are committed to effectively mitigate global supply chain and raw material cost increases impacting ScissorStone and our industry through careful cost management and other strategic actions such as price increases. So far, we have been able to offset some of the rising costs through the price increases that went into effect during 2021, and we recently announced additional price increases in most of our territories to be implemented on January 1st, 2022. We continue to diligently monitor cost trends, and although we are taking actions to partially offset the rising costs, we do expect widespread global shipping challenges, and raising inputs costs to continue to weigh on our margins in the coming quarters, with gradual improvement during 2022 as we realize the price increases in our markets. That said, I am confident in the actions we are taking to enhance our operations and believe our business remains on a positive trajectory to deliver long-term value. Looking ahead, we have a strong balance sheet and cash position to continue deploying capital in an accretive nature. This will include developing, testing, and introducing premium multi-material offerings to grow our addressable market in the quarters and years to come. I would also like to take a moment to highlight the publication of our first ever global ESG report in October. We are pleased with our ESG accomplishments to date and are excited to have now built a prudent framework to accomplish our new ESG goals set forth in the report. We believe our success is directly related to how well we take care of our clients, our employees, and our communities, and we are dedicated to help create a more sustainable future for all of our stakeholders. With that, I will now turn the call over to Nahum to discuss more details on our financial results and outlook.