Caesarstone Reports Fourth Quarter and Full Year 2020 Financial Results

Caesarstone Ltd. (NASDAQ: CSTE), a leading developer and manufacturer of high-quality engineered surfaces, today reported financial results for its fourth quarter and full year ended December 31, 2020.

“We made significant progress streamlining the business in 2020 as we successfully executed on our business transformation during a year marked by unprecedented global economic challenges,” commented Yuval Dagim, Chief Executive Officer. “We now enter 2021 as a much stronger Company, with the right foundation in place to more effectively leverage Caesarstone’s world-class brand to pursue sustainable long-term growth. This includes further implementation of innovative go-to-market initiatives developed under our Global Growth Acceleration Plan to unlock value. Our strong financial position supported the successful execution of two accretive transactions in recent months that are directly aligned with our strategy to enhance our position as a leading premium, multi-material countertop company. With our dedicated focus on driving results, we are well situated to capture additional market share.”

“We were encouraged to finish 2020 with annual year-over-year improvement in gross margin and adjusted EBITDA margin,” added Ophir Yakovian, Chief Financial Officer. “Following two quarters of significant cost cutting, we increased operating expenses to a more normalized level to support our brand and future growth. Caesarstone’s strong balance sheet enabled us to successfully weather the challenges of 2020 and to further invest in accretive future growth. We are happy with our 2020 operating cash flow of $47.6 million and our significant net cash position(*) of $110.6 million that provides us with the confidence we can execute on our plan in 2021, to produce strong long-term returns for our shareholders.”

(*) Cash position is defined as cash and cash equivalents and short-term bank deposits and long and short-term investment in marketable securities less debt from financial institutions.

Fourth Quarter 2020 Results

Revenue in the fourth quarter of 2020 grew 2.3% to $136.9 million compared to $133.9 million in the prior year quarter. On a constant currency basis, fourth quarter revenue was slightly lower by 0.4% year-over-year, due primarily to pandemic related disruptions, particularly in the Americas region, partially offset by the contribution from the Lioli acquisition and growth in all other regions.

Gross margin in the fourth quarter improved 200 basis points to 28.1% compared to 26.1% in the prior year quarter. Adjusted gross margin in the fourth quarter was 28.6% compared to 26.4% in the prior year quarter. The year-over-year improvement in gross margin mainly reflects lower raw material costs, more favorable currency exchange rates, better product mix, and improved efficiency partly offset by the impact of lower sales volume, lower sale prices and less favorable regional mix.

Operating expenses in the fourth quarter were $30.4 million, or 22.2% of revenue, compared to $34.5 million, or 25.8% of revenue in the prior year quarter. Excluding legal settlements and loss contingencies, operating expenses were 21.2% of revenue, compared to 20.4% in the prior year quarter, mainly due to increased investments to support the Company’s growth initiatives.

Operating income grew to $8.1 million compared to operating income of $0.5 million in the prior year quarter. The year-over-year growth mainly reflects higher gross margin and lower legal settlements and loss contingencies.

Adjusted EBITDA, which excludes expenses for share-based compensation, legal settlements and loss contingencies and for non-recurring items, grew 19.1% year-over-year to $18.8 million in the fourth quarter, representing a margin of 13.7%. This compares to adjusted EBITDA of $15.7 million, representing a margin of 11.8%, in the prior year quarter. The year-over-year margin improvement primarily reflects the higher gross margin.

Finance (income) expenses in the fourth quarter were $8.6 million compared to finance income of $0.6 million in the prior year quarter. The difference was mainly a result of the unfavorable impact of foreign currency exchange rates.

Net loss attributable to controlling interest for the fourth quarter was $2.4 million compared to net loss of $0.3 million in the prior year quarter. Net loss per share for the fourth quarter was $0.07 compared to net loss per share of $0.01 in the prior year quarter. Adjusted diluted net income per share for the fourth quarter was $0.05 on 34.5 million shares, compared to adjusted diluted net income per share of $0.16 on 34.6 million shares in the prior year quarter.

Full Year 2020 Results

Revenue in the full year 2020 was $486.4 million compared to $546.0 million in the prior year. On a constant currency basis, 2020 revenue was lower by 11.1% year-over-year, primarily due to pandemic related disruptions impacting our business since the second quarter of 2020.

Gross margin in 2020 expanded to 27.5% compared to 27.2% in the prior year. Adjusted gross margin in 2020 was 27.7%, compared to 27.3% in the prior year. The higher adjusted gross margin mainly reflects improved efficiency, lower raw material costs and improved product mix partly offset by the impact of lower sales volume, lower sale prices and less favorable regional mix.

Operating expenses in 2020 were $111.4 million, or 22.9% of revenue compared to $124.0 million, or 22.7% of revenue in the prior year. Excluding legal settlements and loss contingencies, operating expenses were 21.6% of revenue, compared to 20.4% of revenue in the prior year mainly due to lower revenues partly offset by cost cutting efforts to mitigate pandemic related impacts.

Operating income in 2020 was $22.5 million compared to $24.7 million in the prior year.

Adjusted EBITDA, which excludes expenses for share-based compensation, legal settlements and loss contingencies and for non-recurring items, was $62.1 million in 2020, representing a margin of 12.8%. This compares to adjusted EBITDA of $69.0 million, representing a margin of 12.6% in the prior year. This year-over-year margin improvement primarily reflects the higher gross margin.

Finance expenses in 2020 were $10.2 million compared to $5.6 million in the prior year. The difference was primarily a result of the adverse impact of foreign currency exchange rates.

Net income attributable to controlling interest for the full year 2020 was $7.2 million compared to net income of $12.9 million in the prior year. Diluted net income per share for 2020 was $0.21 compared to $0.37 in the prior year. Adjusted diluted net income per share for 2020 was $0.48 compared to $0.77 in the prior year.

Balance Sheet & Liquidity

The Company's balance sheet as of December 31, 2020 remained strong, including cash, cash equivalents and short-term bank deposits and short and long-term marketable securities of $133.2 million and total debt to financial institutions of $22.6 million.

Dividend

The Company’s dividend policy provides for a quarterly cash dividend of up to 50% of reported net income on a year-to-date basis, less any amount already paid as dividend for the respective period (the “calculated dividend”), subject in each case to approval by the Company’s board of directors. No dividend is paid if it would be less than $0.10 per share. Pursuant to the Company’s dividend policy, the Company does not intend to pay a dividend for the fourth quarter of 2020, based on its reported net loss attributable to controlling interest for the period.

Outlook

The Company anticipates 2021 revenue and Adjusted EBITDA to be higher year-over-year. The company anticipates revenue to grow faster than EBITDA in 2021 mainly due to headwinds from higher shipping and raw material costs, coupled with a return to more normalized levels of sales and marketing expenses and other investments to support the Company’s growth initiatives. The Company’s outlook includes the investment costs associated with its Global Growth Acceleration Plan. The Company’s outlook also assumes the pandemic related business restrictions will fade as the year progresses.

Webcast and Conference Call Details

The Company will host a live webcast and conference call today at 8:30 a.m. ET to discuss the results, followed by a question and answer session for the investment community. The live webcast of the call can be accessed at ir.caesarstone.com. For those unable to access the webcast, the conference call will be accessible by dialing 1-877-407-4018 (domestic) or [phone] (international). The toll-free Israeli number is 1 80 940 6247. Upon dialing in, please request to join the Caesarstone Fourth Quarter Earnings Call.

To listen to a telephonic replay of the conference call, dial toll-free 1-844-512-2921 (domestic) or [phone] (international) and enter pass code 13715282. The replay will be available beginning at 11:30 a.m. ET on Wednesday, February 24, 2021 and will last through 11:59 p.m. ET on Wednesday, March 3, 2021.

About Caesarstone

Caesarstone is a concept and lifestyle-driven company with a customer-centered approach to designing, developing, and producing high-end engineered stone countertops, used in residential and commercial buildings. Our products offer superior aesthetic appeal and perfected functionality through a distinct variety of colors, styles, textures, and finishes used in diverse countertop applications, marked by inherent longevity. Strong commitment to service has fostered growing customer loyalty in over 50 countries where the Caesarstone product collections are available: Classico, Supernatural, Metropolitan and Outdoor. For more information please visit our website: www.caesarstone.com.

Non-GAAP Financial Measures

The non-GAAP measures presented by the Company should be considered in addition to, and not as a substitute for, comparable GAAP measures. Reconciliations of GAAP gross profit to adjusted gross profit, GAAP net income (loss) to adjusted net income (loss) and net income (loss) to Adjusted EBITDA are provided in the schedules to this release. To calculate revenues growth rates that exclude the impact of changes in foreign currency exchange rates, the Company converts actual reported results from local currency to U.S. dollars using constant foreign currency exchange rates in the current and comparable period. The Company provides these non-GAAP financial measures because it believes that they present a better measure of the Company's core business and management uses the non-GAAP measures internally to evaluate the Company's ongoing performance. Accordingly, the Company believes that they are useful to investors in enhancing an understanding of the Company's operating performance.

Forward-Looking Statements

Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to the Company's plans, objectives and expectations for future operations, including estimations relating to the impact of the COVID-19 pandemic and mitigation measures in connection thereto, expectations of the results of the Company’s business optimization initiative and its projected results of operations. These forward-looking statements are based upon management's current estimates and projections of future results or trends. Actual results may differ materially from those projected as a result of certain risks and uncertainties, both known or unknown. These factors include, but are not limited to: the impact of the COVID-19 pandemic on end-consumers, the global economy and the Company’s business and results of operations; the ability of the company to realign aspects of its business based on the business optimization initiative, the strength of the home renovation and construction sectors; intense competitive pressures; the outcome of silicosis and other bodily injury claims; regulatory requirements relating to hazards associated with exposure to silica dust; manufacturing of existing products and managing required changes in production and supply chain; economic conditions within any of our key existing markets changes in raw material prices; fluctuations in currency exchange rates; the success of our expansion efforts in the United States; unpredictability of seasonal fluctuations in revenues; disturbances to the Company’s operations or the operations of its suppliers, distributors, customers or other third parties and other factors discussed under the heading "Risk Factors" in our most recent annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Caesarstone Ltd. and its subsidiaries Condensed consolidated balance sheets
		As of
U.S. dollars in thousands		December 31, 2020				December 31, 2019
		(Unaudited)				(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents and short-term bank deposits		$	114,248			$	139,372
Short-term available for sale marketable securities			8,112				-
Trade receivables, net			84,822				78,282
Other accounts receivable and prepaid expenses			26,481				34,066
Inventories			152,073				122,686
Total current assets			385,736				374,406
LONG-TERM ASSETS:
Severance pay fund			4,007				3,475
Other long-term receivables			3,837				3,176
Deferred tax assets, net			8,359				7,881
Long-term deposits and prepaid expenses			1,675				2,887
Operating lease right-of-use assets			123,928				72,047
Long-term available for sale marketable securities			10,926				-
Property, plant and equipment, net			222,883				204,776
Goodwill and intangible assets, net			59,570				35,218
Total long-term assets			435,185				329,460
Total assets		$	820,921			$	703,866
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term bank credit		$	13,122			$	-
Trade payables			55,063				53,072
Related parties and other loans			2,221				2,212
Short term legal settlements and loss contingencies			31,039				28,300
Accrued expenses and other liabilities			55,570				42,782
Total current liabilities			157,015				126,366
LONG-TERM LIABILITIES:
Long-term loan and financing liability of land from a related party			20,706				7,915
Legal settlements and loss contingencies long-term			21,910				21,505
Deferred tax liabilities, net			6,943
Long-term lease liabilities			112,719				64,638
Accrued severance pay			5,303				4,333
Long-term warranty provision			1,274				1,385
Total long-term liabilities			168,855				99,776
REDEEMABLE NON-CONTROLLING INTEREST			7,701				-
EQUITY:
Ordinary shares			371				371
Treasury shares - at cost			(39,430	)			(39,430	)
Additional paid-in capital			160,083				157,225
Capital fund related to non-controlling interest			(5,587	)			(5,587	)
Accumulated other comprehensive loss			1,083				(3,288	)
Retained earnings			370,830				368,433
Total equity			487,350				477,724
Total liabilities and equity		$	820,921			$	703,866

Caesarstone Ltd. and its subsidiaries Condensed consolidated statements of income
			Three months ended December 31,				Twelve months ended December 31,
U.S. dollars in thousands (except per share data)			2020		2019		2020		2019
			(Unaudited)		(Audited)		(Unaudited)		(Audited)
Revenues			$ 136,896		$ 133,867		$ 486,412		$ 545,974
Cost of revenues			98,381		98,884		352,470		397,335
Gross profit			38,515		34,983		133,942		148,639
Operating expenses:
Research and development			1,501		962		3,974		4,146
Marketing and selling			17,752		16,698		62,047		66,770
General and administrative			9,779		9,625		39,081		40,681
Legal settlements and loss contingencies, net			1,392		7,201		6,319		12,359
Total operating expenses			30,424		34,486		111,421		123,956
Operating income			8,091		497		22,521		24,683
Finance (income) expenses, net			8,613		(622)		10,199		5,578
Income (loss) before taxes			(522)		1,119		12,322		19,105
Taxes on income			1,459		1,394		4,700		6,243
Net income (loss)			$ (1,981)		$ (275)		$ 7,622		$ 12,862
Net Income attributable to non-controlling interest			(404)		-		(404)		-
Net income (loss) attributable to controlling interest			$ (2,385)		$ (275)		$ 7,218		$ 12,862
Basic net income (loss) per ordinary share			$ (0.07)		$ (0.01)		$ 0.21		$ 0.37
Diluted net income (loss) per ordinary share			$ (0.07)		$ (0.01)		$ 0.21		$ 0.37
Weighted average number of ordinary shares used in computing basic income (loss) per ordinary share			34,436,345		34,397,410		34,419,129		34,383,895
Weighted average number of ordinary shares used in computing diluted income (loss) per ordinary share			34,436,345		34,397,410		34,473,911		34,459,599

Caesarstone Ltd. and its subsidiaries Selected Condensed consolidated statements of cash flows
		Twelve months ended December 31,
U.S. dollars in thousands			2020				2019
		(Unaudited)				(Audited)
Cash flows from operating activities:
Net income		$	7,622			$	12,862
Adjustments required to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			29,460				28,587
Share-based compensation expense			2,858				3,632
Accrued severance pay, net			(14	)			(246	)
Changes in deferred tax, net			(895	)			(1,509	)
Capital loss			340				326
Legal settlemnets and loss contingencies, net			6,319				12,359
Decrease (increase) in trade receivables			6,070				(5,032	)
Decrease (increase) in other accounts receivable and prepaid expenses			9,318				(6,346	)
Decrerase in inventories			313				35,303
Decrease in trade payables			(17,938	)			(6,663	)
Increase (decrease) in warranty provision			(371	)			69
Changes in right of use assets			(26,738	)			1,319
Changes in lease liabilities			30,710				2,602
Amortization of premium and accretion of discount on marketable securities, net			161				-
Changes in Accrued interest related to Marketable Securities			(1	)			-
Increase in accrued expenses and other liabilities including related parties			404				5,786
Net cash provided by operating activities			47,618				83,049
Cash flows from investing activities:
Net cash paid for acquisitions			(28,962	)			-
Purchase of property, plant and equipment			(19,824	)			(23,590	)
Proceeds from sale of property, plant and equipment			13				66
Investment in marketable securities			(19,185	)			-
Increase in long term deposits			(347	)			(63	)
Net cash used in investing activities			(68,305	)			(23,587	)
Cash flows from financing activities:
Dividend paid			(4,821	)			(5,160	)
Changes in short-term bank credit and loans, net			(18	)			(7,771	)
Repayment of a financing leaseback related to Bar-Lev transaction			(1,245	)			(1,196	)
Net cash used in financing activities			(6,084	)			(14,127	)
Effect of exchange rate differences on cash and cash equivalents			1,647				475
Increase (decrease) in cash and cash equivalents and short-term bank deposits			(25,124	)			45,810
Cash and cash equivalents and short-term bank deposits at beginning of the period			139,372				93,562
Cash and cash equivalents and short-term bank deposits at end of the period		$	114,248			$	139,372
Non - cash investing:
Changes in trade payables balances related to purchase of fixed assets			(356	)			(3,235	)

Caesarstone Ltd. and its subsidiaries
		Three months ended December 31,						Twelve months ended December 31,
U.S. dollars in thousands			2020			2019			2020			2019
		(Unaudited)						(Unaudited)
Reconciliation of Gross profit to Adjusted Gross profit:
Gross profit		$	38,515		$	34,983		$	133,942		$	148,639
Share-based compensation expense (a)			63			10			416			285
Non-recurring import related income			-			-			-			(1,501	)
Amortization of assets related to acquisitions			529			-			529			-
Other non-recurring items (b)			-			294			-			1,661
Adjusted Gross profit (Non-GAAP)		$	39,107		$	35,287		$	134,887		$	149,084

(a) Share-based compensation includes expenses related to stock options and restricted stock units granted to employees and directors of the Company.

(b) In 2019, relates mainly to one time amortization of machinery equipment with no future alternative use, and one time inventory write down due to discontinuation of certain product group manufacturing.

Caesarstone Ltd. and its subsidiaries
		Three months ended December 31,								Twelve months ended December 31,
U.S. dollars in thousands			2020				2019				2020			2019
		(Unaudited)								(Unaudited)
Reconciliation of Net Income (loss) to Adjusted EBITDA:
Net income (loss)		$	(1,981	)		$	(275	)		$	7,622		$	12,862
Finance (income) expenses, net			8,613				(622	)			10,199			5,578
Taxes on income			1,459				1,394				4,700			6,243
Depreciation and amortization related to acquisitions			8,300				6,970				29,460			28,587
Legal settlements and loss contingencies, net (a)			1,392				7,201				6,319			12,359
Share-based compensation expense (b)			523				779				2,858			3,632
Non-recurring import related income			-				-				-			(1,501	)
Acquisitions related expenses			444				-				921			-
Other non-recurring items (c)			-				294				-			1,286
Adjusted EBITDA (Non-GAAP)		$	18,750			$	15,741			$	62,079		$	69,046

(a) Consists of legal settlements expenses and loss contingencies, net, related to product liability claims and other adjustments to on-going legal claims, including related legal fees.
(b) Share-based compensation includes expenses related to stock options and restricted stock units granted to employees and directors of the Company.   
(c) In 2019, relates mainly to non-recurring expenses related to North American region establishment, one time charge related to reduction in headcount and certain activities including discontinuation of certain product group manufacturing.  

 

Caesarstone Ltd. and its subsidiaries
		Three months ended December 31,								Twelve months ended December 31,
U.S. dollars in thousands (except per share data)			2020				2019				2020			2019
		(Unaudited)								(Unaudited)
Reconciliation of net income (loss) attributable to controlling interest to adjusted net income attributable to controlling interest:
Net income (loss) attributable to controlling interest		$	(2,385	)		$	(275	)		$	7,218		$	12,862
Legal settlements and loss contingencies, net (a)			1,392				7,201				6,319			12,359
Amortization of assets related to acquisitions, net of tax			446				-				446			-
Share-based compensation expense (b)			523				779				2,858			3,632
Non cash revaluation of lease liabilities (c)			3,177				266				3,189			3,615
Non-recurring import related income (d)			-				-				-			(1,501	)
Acquisitions related expenses			444				-				921			-
Other non-recurring items (e)			-				294				-			2,486
Total adjustments			5,982				8,540				13,733			20,591
Less tax on non-tax adjustments (f)			1,955				2,791				4,488			6,729
Total adjustments after tax			4,027				5,749				9,245			13,862
Adjusted net income attributable to controlling interest (Non-GAAP)		$	1,642			$	5,474			$	16,463		$	26,724
Adjusted diluted EPS (g)		$	0.05			$	0.16			$	0.48		$	0.77

(a) Consists of legal settlements expenses and loss contingencies, net, related to product liability claims and other adjustments to on-going legal claims, including related legal fees.
(b) Share-based compensation includes expenses related to stock options and restricted stock units granted to employees and directors of the Company.
(c) Exchange rate diffrences deriving from revaluation of lease contracts in accoradance with FASB ASC 842.
(d) In 2019, relates mainly to non-recurring import related expenses and relocation expenses of Caesarstone USA headquarters, the Company's subsidiary.
(e) In 2019, relates to non-recurring expenses related to North American region establishment, one time charge related to reduction in headcount and certain activities including discontinuation of certain product group manufacturing  and one time amortization of machinery equipment with no future alternative use.
(f) Tax adjustments for the three and twelve months ended December 31, 2020, based on the effective tax rates of the comparative periods.
(g) In calculating adjusted diluted (Non-GAAP) EPS for the three and twelve months ended December 31, 2020, the diluted weighted average number of shares outstanding excludes the effects of share-based compensation expense in accordance with FASB ASC 718.                                                                                        

Caesarstone Ltd. and its subsidiaries
Geographic breakdown of revenues by region
		Three months ended December 31,						Twelve months ended December 31,
U.S. dollars in thousands			2020			2019			2020			2019
		(Unaudited)						(Unaudited)
USA		$	53,618		$	64,659		$	207,496		$	250,471
Canada			20,325			20,575			72,492			85,979
Latin America			1,387			735			2,149			4,115
America's			75,330			85,969			282,137			340,565
Australia			29,953			26,002			103,587			108,149
Asia			7,122			3,931			14,566			15,514
APAC			37,075			29,933			118,153			123,663
EMEA			14,408			9,463			45,201			43,054
Israel			10,083			8,502			40,921			38,692
Total Revenues		$	136,896		$	133,867		$	486,412		$	545,974

Caesarstone Ltd. and its subsidiaries
Geographic breakdown of revenues by region - Supplemental data
		Three months ended
U.S. dollars in thousands		12/31/2020			9/30/2020			6/30/2020			3/31/2020			12/31/2019			9/30/2019			6/30/2019			3/30/2019			12/31/2018			9/30/2018			6/30/2018
		(Unaudited)
USA		$	53,618		$	52,097		$	41,726		$	60,055		$	64,659		$	64,805		$	64,590		$	56,417		$	60,200		$	61,933		$	60,358
Canada			20,325			19,174			14,435			18,558			20,575			21,881			23,341			20,178			23,834			25,140			27,349
Latin America			1,387			124			132			506			735			1,434			1,351			596			1,212			1,635			1,738
America's			75,330			71,395			56,293			79,119			85,969			88,120			89,282			77,191			85,246			88,708			89,445
Australia			29,953			27,746			23,534			22,354			26,000			28,642			28,294			25,214			33,484			33,968			34,731
Asia			7,122			2,881			1,732			2,831			3,932			3,675			3,311			4,596			4,929			4,189			4,221
APAC			37,075			30,627			25,266			25,185			29,932			32,317			31,605			29,810			38,413			38,157			38,952
EMEA			14,408			11,422			8,031			11,340			9,464			11,719			11,418			10,455			9,954			11,115			11,721
Israel			10,083			10,478			9,447			10,913			8,502			10,683			8,766			10,741			9,268			9,709			9,125
Total Revenues		$	136,896		$	123,922		$	99,037		$	126,557		$	133,867		$	142,839		$	141,071		$	128,197		$	142,881		$	147,689		$	149,243

		Year-over-year % change
		12/31/2020			9/30/2020			6/30/2020			3/31/2020			12/31/2019			9/30/2019			6/30/2019
		(Unaudited)
USA		-17.1	%		-19.6	%		-35.4	%		6.4	%		7.4	%		4.6	%		7.0	%
Canada		-1.2	%		-12.4	%		-38.2	%		-8.0	%		-13.7	%		-13.0	%		-14.7	%
Latin America		88.8	%		-91.4	%		-90.2	%		-15.1	%		-39.4	%		-12.3	%		-22.3	%
America's		-12.4	%		-19.0	%		-36.9	%		2.5	%		0.8	%		-0.7	%		-0.2	%
Australia		15.2	%		-3.1	%		-16.8	%		-11.3	%		-22.3	%		-15.7	%		-18.5	%
Asia		81.1	%		-21.6	%		-47.7	%		-38.4	%		-20.2	%		-12.3	%		-21.5	%
APAC		23.9	%		-5.2	%		-20.1	%		-15.5	%		-22.1	%		-15.3	%		-18.9	%
EMEA		52.2	%		-2.5	%		-29.7	%		8.5	%		-4.9	%		5.4	%		-2.6	%
Israel		18.6	%		-1.9	%		7.8	%		1.6	%		-8.3	%		10.0	%		-3.9	%
Total Revenues		2.3	%		-13.2	%		-29.8	%		-1.3	%		-6.3	%		-3.3	%		-5.5	%
		Year-over-year % change in constant currency (*)
		12/31/2020			9/30/2020			6/30/2020			3/31/2020			12/31/2019			9/30/2019			6/30/2019
		(Unaudited)
USA		-17.1	%		-19.6	%		-35.4	%		6.4	%		7.4	%		4.6	%		7.0	%
Canada		-2.4	%		-11.7	%		-36.0	%		-7.1	%		-13.6	%		-12.1	%		-11.6	%
Latin America		88.7	%		-91.3	%		-90.2	%		-15.2	%		-39.4	%		-12.3	%		-22.3	%
America's		-12.7	%		-18.8	%		-36.4	%		2.7	%		0.9	%		-0.4	%		0.7	%
Australia		7.9	%		-7.1	%		-11.5	%		-3.3	%		-18.2	%		-10.0	%		-12.0	%
Asia		80.7	%		-21.2	%		-45.9	%		-37.1	%		-14.7	%		-8.8	%		-18.6	%
APAC		17.5	%		-8.7	%		-15.1	%		-8.5	%		-17.8	%		-9.9	%		-12.7	%
EMEA		45.8	%		-5.9	%		-26.9	%		11.4	%		-4.4	%		10.9	%		2.8	%
Israel		9.4	%		-4.5	%		4.5	%		-1.5	%		-14.0	%		7.8	%		-3.5	%
Total Revenues		-0.4	%		-14.4	%		-28.3	%		0.5	%		-5.5	%		-1.5	%		-2.9	%

(*) Change in revenues at constant currency is calculated so that revenues can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of business performance. Change in revenues adjusted for currency are calculated by translating current period activity in local currency using the comparable prior-year period’s currency conversion rate. Exchange rates used, are the representative exchange rate published by the Bank of Israel for the relevant periods.

 

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