Caesarstone Ltd (CSTE) has reported a 5.77 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $11.10 million, or $0.31 a share in the quarter, compared with $11.78 million, or $0.33 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $12.51 million, or $0.36 a share compared with $13.33 million or $0.38 a share, a year ago. Revenue during the quarter grew 16.68 percent to $136.41 million from $116.91 million in the previous year period. Gross margin for the quarter contracted 35 basis points over the previous year period to 36.10 percent. Total expenses were 88.90 percent of quarterly revenues, up from 87.82 percent for the same period last year. That has resulted in a contraction of 108 basis points in operating margin to 11.10 percent.
Operating income for the quarter was $15.14 million, compared with $14.24 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $24.28 million compared with $23 million in the prior year period. At the same time, adjusted EBITDA margin contracted 188 basis points in the quarter to 17.80 percent from 19.68 percent in the last year period.
Raanan Zilberman, chief executive officer, commented, "We are pleased with this quarter’s accelerated growth. We are working to capitalize on our increased investments in marketing and sales and our global brand-leadership position to better leverage the growing demand for quartz solutions around the world. We are looking forward to the remainder of 2017, a year we believe will serve to enhance our future performance both operationally and financially.”
CaesarStone Sdot-Yam forecasts revenue to be in the range of $580 million to $595 million for fiscal year 2017.
Operating cash flow improves significantly
Caesarstone Ltd has generated cash of $17.71 million from operating activities during the quarter, up 94.58 percent or $8.61 million, when compared with the last year period. The company has spent $4.71 million cash to meet investing activities during the quarter as against cash outgo of $4.47 million in the last year period.
Cash flow from financing activities was $1.55 million for the quarter as against cash outgo of $8.03 million in the last year period.
Cash and cash equivalents stood at $121.01 million as on Mar. 31, 2017, up 102.10 percent or $61.13 million from $59.88 million on Mar. 31, 2016.
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