Caesarstone Ltd.

Greetings, and welcome to the Caesarstone 3rd Quarter 2024 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. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. 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 begin.

Thank you, Operator, and good morning to everyone on the line. I am joined by Yosharan, 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 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 loss income, adjusted net loss 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 2024 earnings release, which is posted on the company's investor relations website. On today's call, Yost will discuss our business activity and to whom we'll then cover additional details regarding financial results before we open the call for questions. Thank you, and I would now like to turn the call over to Yost. Please go ahead.

Thank you, Brad. Good day, everyone. And thank you for joining us to discuss our third quarter 2024 results. I want to begin by expressing my sincere appreciation to our global Caesarstone team for the dedication and resilience during what continues to be a challenging operating environment. Our third quarter performance reflects the significant pressure we are experiencing across our business. with revenues declining year over year amid persistent weakness in global renovation and remodeling activity. That said, our ongoing transformation efforts and manufacturing optimization initiatives have helped sustain gross margin improvement year over year on much lower revenues, which underscores the positive impact of our restructuring actions over the last year. We continue to make important progress on our strategic initiatives while our team is carefully managing expenses. We have successfully transitioned approximately 70% of our production to our network of manufacturing partners compared to just 30% a year ago. These shifts has enhanced our operational flexibility, allowing us to meet customers' demand at various price points while helping to maintain margins even at lower volumes. Additionally, we have maintained strong working capital discipline and monetized non-core assets to generate healthy operating cash flow of $60 million in the quarter. To that point, we reached an important milestone with the completion of our previously announced sales of 69 acres of undeveloped land at our Richmond Hill facility for $10 million. We are actively pursuing opportunities to maximize value for the remaining 51 acres of developed land and structures at this site, which carry higher values per acre than the recently sold land. Looking at our markets, we are seeing consistent challenges across our regions. The renovation and remodeling market and large ticket items in particular remain pressured by factors including high interest rates and general economic uncertainty. While our commercial and big boxes business have shown some relative stability, residential activity continues to be significantly constrained in the current environment. In Australia, the transition to our zero-crystalline silica products is taking longer than expected. We now expect to have our full zero-crystalline silica collection in the market by the end of Q1. This should help us to gradually recover revenues in Australia. In response to these conditions, we are intensifying our focus on operational efficiency while making targeted investments to strengthen our competitive position. We are directing resources toward brand development, expanding our marketing programs, and accelerating development of innovative products to help stimulate demand. We are also continuing to invest strategically in R&D and our premium posted and offering, which we believe positions us well for growth as market conditions normalize. While we expect market headwinds to persist in the near term, we are confident in our structural improvements we are making to our business, from our optimized production footprint to our enhanced product development capabilities. We remain confident in our strategy and will continue to take decisive actions to restore profitable growth. I will now turn the call over to Nahum to review our financial results in more detail.