Caesarstone Up 14.2% in 2012 Revenues
MP MENASHE, Israel – Quartz-surfaces manufacturer Caesarstone posted record sales and earnings for 2012, with growth – in revenues and production – in the near future.
Parent company Caesarstone Sdot-Yam Ltd. (CSTE) reported today that revenues totaled $296.6 million for the fiscal year ended last Dec. 31, up 14.2% from 2011. The operating income of $50 million last year shows an increase of 32.4% from 2011’s $37.7 million.
Company officials attributed the increases to the company’s acquisition of its North American distribution, as well as organic growth in several other markets.
The company tallied 2012 revenues of $86.7 million in the United States, up from $59.7 million in 2011. Australia remained Caesarstone’s largest market at $88.9 million last year, but revenues there grew by less than one percent from the previous year.
Last year’s operating expenses were 26.1% of revenues, up from 2011’s 25.6%. The company noted some reductions in spending last year were offset by the North American acquisition, along with investment in U.S. sales and marketing infrastructure for future growth.
The 2012 adjusted net income per share is $1.35 on 32.7 million weighted shares outstanding, including the March IPO of the company on the NASDAQ exchange (symbol: CSTE). In 2011, as a privately held company, adjusted earnings per ordinary share were $1.27 on shares outstanding of 19.6 million.
The company’s stock topped $20 for the first time following today’s earnings report, briefly touching $21.50 — more than double the $10.08 low set shortly after last year’s IPO.
Fourth quarter 2012 revenue increased by 13.6% to $76.2 million compared to $67.1 million in the last three months of 2011. Growth came with continued increases in fourth-quarter sales in the United States and Canada, up 19.7% and 29.3% respectively from the same time in 2011.
“We are pleased to have finished the year with a strong fourth quarter,” said CEO Yosef W. Shiran. “Our teams in each region executed well and we continue to position the business advantageously around the world.”
The company also continues to anticipate future growth with its capital expansion plans, including a 15% in capacity of its Israeli facilities by October, and a U.S. production facility set to go online in fourth-quarter 2014.
The company also issued guidance today for 2013, with revenues of $330 million-$340 million and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) targeted at $76 million-$80 million.
“We believe we have the right global strategy in place to sustain our growth, build our operational capabilities, enhance our brand and drive value to consumers, customers and shareholders,” Shiran added.
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