Quartz countertop manufacturer Caesarstone Bat Yam Ltd. (Nasdaq: CSTE) today published its first financial report as a public company, reporting lower profits on higher revenue for the first quarter of 2012. It also published its full-year guidance. Caesarstone held its IPO on March 21.
Revenue rose 28.5% to $67.3 million for the first quarter from $52.4 million for the corresponding quarter of 2011. Most of the growth was due to the acquisition of the company's former distributor Caesarstone USA, which was acquired in May 2011. 22% sales growth in the US and 69% growth in Canada, more than offset a 10% drop in sales in Israel.
GAAP-based net profit fell to $4.8 million ($0.18 per share) from $8 million for the corresponding quarter, and non-GAAP net profit fell to $7.4 million ($0.27 per share) from $8.5 million. The company attributes the drop in profit to a $2.1 million increase in finance and tax expenses.
In its full-year guidance, Caesarstone predicts $292-302 million revenue and a non-GAAP earnings before interest, taxes, depreciation and amortization (EBITDA) of $67-70 million. The guidance reflects 12-16% revenue growth and 14-19% EBITDA growth over 2011.
Caesarstone CEO Yosef Shiran predicts continued solid growth for the rest of the year. He added, "Our strategy to shift to a direct distribution model in the US, Canada and other regions around the world has accelerated our growth, enhanced our diversification, and increased the range and size of our opportunities. We are making investments, particularly in the US, to rapidly build our brand and business."
Caesarstone's share price rose 2.3% on Nasdaq yesterday to $13.09, giving a market cap of $437 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 8, 2012
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