Caesarstone Ltd.

Hello, and welcome to the Caesarstone Limited Third Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist or pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your touchtone phone. To withdraw your question, please press star, then two. Please note, today's event is being recorded. I now would like to turn the call over to Brad Cray, Investor Relations. Mr. Cray, please go ahead.

Thank you, Operator, and good morning to everyone. I am joined by Yuval Deguim, Caesar Stone's Chief Executive Officer, and Nahum Trost, Caesar 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-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, 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 third quarter 2022 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. Our third quarter 2022 results reflect further progress against our multi-pronged growth strategy to transform Caesarstone into a leading premium multi-material countertop company. We produced our seventh consecutive quarter of double-digit revenue growth on a constant currency basis, leading to another quarter of record revenue. In our largest market, the U.S., our results benefited in part from organic growth from the successful integration of our Omicron granite and tile business acquired in the fourth quarter of 2020, and the expanding presence of our innovative digital CS Connect platform across North America, which is substantially improving customer experience and engagement throughout our business. Additionally, successful implementation of pricing initiatives is helping to more than offset softening volume due to the challenging microeconomic environment as higher interest rates and inflation have continued to pressure renovation and new construction activity, mainly in the U.S. As a result of these macroeconomic conditions, we have already taken measures to align our production and inventory levels to new conditions in the market and plan to continue to take actions to reduce costs. In response to the increases in shipping and raw material prices that have pressured our margins, we have announced three price increases so far in 2022 with our most recently announced price increase in July, which is powerfully reflected in our third quarter results. Additionally, we are carefully monitoring the demand environment and would note that our global markets outside the US have been less impacted by inflation and higher interest rates. Overall, while we believe The execution of our strategy remains effective. Foreign exchange rate fluctuations, primarily related to the strengthening U.S. dollar, have become an increasing headwind to our top and bottom line as reflected in our third quarter results. Our results in all regions outside the U.S. were negatively impacted by the strong dollar compared to respective local currencies. Today, we have revised our full year 2022 outlook predominantly to reflect these unfavorable foreign exchange impacts that are expected to continue through year end. Our revised outlook also factors in, to lesser extent, the impact of higher shipping costs and shipping delays. As we look forward, I would like to reiterate that the actions we have taken through our global growth acceleration plan over the past several years to create efficiencies and diversify our business mix beyond quartz, have allowed us to push through the pandemic, the global supply chain crisis, and more significant inflationary pressures our industry has seen in years. With this in mind, we believe we are well positioned with the right talent in place to execute through this complex environment, and we have additional levers to pull to optimize productivity at our plants, and inventory levels as necessary. Furthermore, we still have ample resources to execute our strategic multi-material growth initiatives to create long-term value. We have introduced our ScissorTone branded global porcelain collection in the UK, Israel, and Australian markets and expected to launch in the North American region during 2023. I'm proud of our entire team's efforts to execute the initiatives under the Global Growth Acceleration Plan during these complex times. With that, I will now turn the call to Nahum to discuss more details on our financial results and outlook.