EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1

Exhibit 99.1
Caesarstone Reports First Quarter 2021 Financial Results

– Record First Quarter Revenue Grew 15.4% Over Prior Year to $146.0 Million –
– Per Share Diluted Net Income of $0.41 and Adjusted Diluted EPS of $0.42 –
– Gross Margin Expanded 90 Basis Points to 29.7% –
– Adjusted EBITDA Increased 54.1% to $20.3 Million at a 13.9% Margin –
– Strong Net Cash Position(*) of $105.3 Million at Quarter End –
– Declares Dividend of $0.21 per share –
– Reiterates Outlook for 2021 Revenue and Adjusted EBITDA Growth –

MP MENASHE, Israel – May 5, 2021 - Caesarstone Ltd. (NASDAQ: CSTE), a leading developer and manufacturer of high-quality engineered surfaces, today reported financial results for its first quarter ended March 31, 2021.

“We are extremely pleased to produce another consecutive quarter of growth as we continue to successfully execute our strategy to transform Caesarstone into a leading premium, multi-material countertop company,” commented Yuval Dagim, Caesarstone’s Chief Executive Officer. “Our recently completed accretive acquisitions of Omicron and Lioli Ceramica are already contributing to results, helping us to deliver record first quarter revenue. Our collective actions since we announced our Global Growth Acceleration Plan two years ago have allowed us to establish an efficient global operating platform, resulting in our third consecutive quarter of year-on-year EBITDA margin expansion. We are encouraged with the progress we have made integrating Lioli and Omicron and are excited to further realize the unique benefits of each platform as a combined business. As we move forward, we will continue to leverage our innovative go-to-market initiatives, world-class brand and multi-material product offerings to drive additional value 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.

First Quarter 2021 Results

Revenue in the first quarter of 2021 grew 15.4% to $146.0 million compared to $126.6 million in the prior year quarter. On a constant currency basis, first quarter revenue was higher by 9.8% year-over-year, due primarily to the contribution of acquisitions.

Gross margin in the first quarter improved to 29.7% compared to 28.8% in the prior year quarter. Adjusted gross margin in the first quarter was 30.1% compared to 28.9% in the prior year quarter. The year-over-year improvement in gross margin mainly reflects better product mix, improved efficiency and more favorable currency exchange rates, partly offset by the impact of higher manufacturing unit costs due to lower fixed cost absorption and lower selling prices.

Operating expenses in the first quarter were $33.3 million, or 22.8% of revenue, compared to $34.1 million, or 27.0% of revenue in the prior year quarter. Excluding legal settlements and loss contingencies, operating expenses were 22.3% of revenue, compared to 24.7% in the prior year quarter, mainly due to higher revenues.

Operating income grew to $10.0 million compared to operating income of $2.3 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 54.1% year-over-year to $20.3 million in the first quarter, representing a margin of 13.9%. This compares to adjusted EBITDA of $13.1 million, representing a margin of 10.4%, in the prior year quarter. The year-over-year margin improvement primarily reflects the higher gross margin.

Finance income in the first quarter was $5.3 million compared to finance income of $0.9 million in the prior year quarter. The difference was primarily a result of the favorable impact of foreign currency exchange rates and raw material hedging activity.

Net Income attributable to controlling interest for the first quarter was $14.2 million compared to net income of $2.7 million in the prior year quarter. Net income per share for the first quarter was $0.41 compared to net income per share of $0.08 in the prior year quarter. Adjusted diluted net income per share for the first quarter was $0.42 on 34.5 million shares, compared to adjusted diluted net income per share of $0.13 in the prior year quarter on a similar share count.

Balance Sheet & Liquidity

The Company's balance sheet as of March 31, 2021 remained strong, including cash, cash equivalents and short-term bank deposits and short and long-term marketable securities of $118.7 million and total debt to financial institutions of $13.4 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. In accordance with the Company’s dividend policy, the board of directors declared a cash dividend of $0.21 per share for the three months ended March 31, 2021. The dividend will be paid on June 1, 2021 to shareholders of record as of May 18, 2021. The dividend payment is subject to withholding tax of 20%.

Outlook

The Company reiterates its expectation for 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 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 that both pandemic related business restrictions will fade and that the supply environment will improve 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 +1-201-689-8471 (international). The toll-free Israeli number is 1 80 940 6247. Upon dialing in, please request to join the Caesarstone First Quarter Earnings Call.

To listen to a telephonic replay of the conference call, dial toll-free 1-844-512-2921 (domestic) or +1-412-317-6671 (international) and enter pass code 13718692. The replay will be available beginning at 11:30 a.m. ET on Wednesday, May 5, 2021 and will last through 11:59 p.m. ET on Wednesday, May 12, 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 , integration of the company’s acquisitions and its projected outlook and 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, economic conditions in our key markets,  raw material shortages and prices, , fluctuations in home renovation and construction sectors; the company’s ability to compete with lower-priced products and other intense competitive pressures; the outcome of silicosis and other bodily injury claims; regulatory requirements relating to hazards associated with exposure to silica dust; ability to efficiently manufacture products and managing required changes in production and supply chain in light of our recent acquisitions; fluctuations in currency exchange rates; the success of our expansion efforts in the United States; unpredictability of seasonal fluctuations in revenues 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.

Contacts:

Investor Relations:
ICR, Inc. - Rodny Nacier
CSTE@icrinc.com
+1 646 277-1237


Caesarstone Ltd. and its subsidiaries
 Condensed consolidated balance sheets

   
As of
  
U.S. dollars in thousands
  
March 31,
2021
    
December 31,
2020
  
   
(Unaudited)
    
(Audited)
  
ASSETS
            
             
CURRENT ASSETS:
            
             
Cash and cash equivalents and short-term bank deposits
  
$
99,820
    
$
114,248
  
Short-term available for sale marketable securities
    
11,697
      
8,112
  
Trade receivables, net
    
84,533
      
84,822
  
Other accounts receivable and prepaid expenses
    
35,425
      
26,481
  
Inventories
    
155,402
      
152,073
  
                 
Total current assets
    
386,877
      
385,736
  
                 
LONG-TERM ASSETS:
                
                 
Severance pay fund
    
3,766
      
4,007
  
Other long-term receivables
    
3,773
      
3,837
  
Deferred tax assets, net
    
7,763
      
8,359
  
Long-term deposits and prepaid expenses
    
768
      
1,675
  
Operating lease right-of-use assets
    
121,531
      
123,928
  
Long-term available for sale marketable securities
    
7,170
      
10,926
  
Property, plant and equipment, net
    
219,631
      
222,883
  
Goodwill and intangible assets, net
    
58,717
      
59,570
  
                 
Total long-term assets
    
423,119
      
435,185
  
                 
Total assets
  
$
809,996
    
$
820,921
  
                 
LIABILITIES AND EQUITY
                
                 
CURRENT LIABILITIES:
                
                 
Short-term bank credit
  
$
4,403
    
$
13,122
  
Trade payables
    
59,846
      
55,063
  
Related parties and other loans
    
2,227
      
2,221
  
Short term legal settlements and loss contingencies
    
19,277
      
31,039
  
Accrued expenses and other liabilities
    
54,391
      
55,570
  
                 
Total current liabilities
    
140,144
      
157,015
  
                 
LONG-TERM LIABILITIES:
                
                 
Long-term bank and other loans and financing liability of land from a related party
    
17,213
      
20,706
  
Legal settlements and loss contingencies long-term
    
21,660
      
21,910
  
Deferred tax liabilities, net
    
6,456
      
6,943
  
Long-term lease liabilities
    
108,743
      
112,719
  
Accrued severance pay
    
5,129
      
5,303
  
Long-term warranty provision
    
1,274
      
1,274
  
                 
Total long-term liabilities
    
160,475
      
168,855
  
                 
REDEEMABLE NON-CONTROLLING INTEREST
    
7,500
      
7,701
  
                 
EQUITY:
                
                 
Ordinary shares
    
371
      
371
  
Treasury shares - at cost
    
(39,430
)
    
(39,430
)
Additional paid-in capital
    
160,651
      
160,083
  
Capital fund related to non-controlling interest
    
(5,587
)
    
(5,587
)
Accumulated other comprehensive loss
    
1,008
      
1,083
  
Retained earnings
    
384,864
      
370,830
  
                 
Total equity
    
501,877
      
487,350
  
                 
Total liabilities and equity
  
$
809,996
    
$
820,921
  


Caesarstone Ltd. and its subsidiaries
 Condensed consolidated statements of income

   
Three months ended March 31,
  
U.S. dollars in thousands (except per share data)
  
2021
    
2020
  
   
(Unaudited)
  
             
Revenues
  
$
146,032
    
$
126,557
  
Cost of revenues
    
102,730
      
90,156
  
                 
Gross profit
    
43,302
      
36,401
  
                 
Operating expenses:
                
Research and development
    
1,105
      
780
  
Marketing and selling
    
18,276
      
18,629
  
General and administrative
    
13,143
      
11,867
  
Legal settlements and loss contingencies, net
    
740
      
2,838
  
                 
Total operating expenses
    
33,264
      
34,114
  
                 
Operating income
    
10,038
      
2,287
  
Finance income, net
    
(5,333
)
    
(869
)
                 
Income before taxes
    
15,371
      
3,156
  
Taxes on income
    
1,529
      
478
  
                 
Net income
  
$
13,842
    
$
2,678
  
                 
Net loss attributable to non-controlling interest
    
348
      
-
  
                 
Net income attributable to controlling interest
  
$
14,190
    
$
2,678
  
Basic net income per ordinary share (*)
  
$
0.41
    
$
0.08
  
Diluted net income per ordinary share (*)
  
$
0.41
    
$
0.08
  
Weighted average number of ordinary shares used in computing basic income per ordinary share
    
34,439,783
      
34,399,916
  
Weighted average number of ordinary shares used in computing diluted income per ordinary share
    
34,489,432
      
34,448,505
  

(*) The numerator for the calculation of net income per share for the three months ended March 31, 2021 has been decreased by approximately $0.2 million, to reflect the adjustment to redemption value associated with the redeemable non-controlling interest.

Caesarstone Ltd. and its subsidiaries
Selected Condensed consolidated statements of cash flows

   
Three months ended March 31,
  
U.S. dollars in thousands
  
2021
    
2020
  
   
(Unaudited)
  
Cash flows from operating activities:
            
             
Net income
  
$
13,842
    
$
2,678
  
Adjustments required to reconcile net income to net cash provided by operating activities:
                
Depreciation and amortization
    
8,908
      
7,115
  
Share-based compensation expense
    
567
      
906
  
Accrued severance pay, net
    
69
      
(86
)
Changes in deferred tax, net
    
101
      
(1,060
)
Capital (gain) loss
    
(2
)
    
17
  
Legal settlemnets and loss contingencies, net
    
740
      
2,838
  
Decrease (increase) in trade receivables
    
179
      
(3,075
)
Decrease (increase) in other accounts receivable and prepaid expenses
    
(9,299
)
    
2,268
  
Increase in inventories
    
(3,344
)
    
(11,737
)
Increase in trade payables
    
2,987
      
2,009
  
Increase (decrease) in warranty provision
    
(9
)
    
52
  
Changes in right of use assets
    
2,328
      
2,576
  
Changes in lease liabilities
    
(3,968
)
    
(515
)
Amortization of premium and accretion of discount on marketable securities, net
    
70
      
-
  
Changes in Accrued interest related to Marketable Securities
    
13
      
-
  
Decrease in accrued expenses and other liabilities including related parties
    
(11,020
)
    
(580
)
                 
Net cash provided by operating activities
    
2,162
      
3,406
  
                 
Cash flows from investing activities:
                
                 
Repayment of assumed shareholders loan related to acquisition
    
(1,966
)
    
-
  
Purchase of property, plant and equipment
    
(4,727
)
    
(8,500
)
Proceeds from sale of property, plant and equipment
    
4
      
8
  
Investment in marketable securities
    
78
      
-
  
Increase in long term deposits
    
48
      
(731
)
                 
Net cash used in investing activities
    
(6,563
)
    
(9,223
)
                 
Cash flows from financing activities:
                
                 
Changes in short-term bank credits and long-term loans
    
(9,704
)
    
(459
)
Repayment of a financing leaseback related to Bar-Lev transaction
    
(323
)
    
(305
)
                 
Net cash used in financing activities
    
(10,027
)
    
(764
)
                 
Effect of exchange rate differences on cash and cash equivalents
    
-
      
(927
)
                 
Decrease in cash and cash equivalents and short-term bank deposits
    
(14,428
)
    
(7,508
)
Cash and cash equivalents and short-term bank deposits at beginning of the period
    
114,248
      
139,372
  
                 
Cash and cash equivalents and short-term bank deposits at end of the period
  
$
99,820
    
$
131,864
  
                 
Non - cash investing:
                
Changes in trade payables balances related to purchase of fixed assets
    
(158
)
    
(564
)

Caesarstone Ltd. and its subsidiaries

   
Three months ended March 31,
  
U.S. dollars in thousands
  
2021
    
2020
  
   
(Unaudited)
  
Reconciliation of Gross profit to Adjusted Gross profit:
            
Gross profit
  
$
43,302
    
$
36,401
  
Share-based compensation expense (a)
    
105
      
131
  
Amortization of assets related to acquisitions
    
534
      
-
  
Adjusted Gross profit (Non-GAAP)
  
$
43,941
    
$
36,532
  

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

Caesarstone Ltd. and its subsidiaries

   
Three months ended March 31,
  
U.S. dollars in thousands
  
2021
    
2020
  
   
(Unaudited)
  
Reconciliation of Net Income to Adjusted EBITDA:
            
Net income
  
$
13,842
    
$
2,678
  
Finance income, net
    
(5,333
)
    
(869
)
Taxes on income
    
1,529
      
478
  
Depreciation and amortization related to acquisitions
    
8,908
      
7,115
  
Legal settlements and loss contingencies, net (a)
    
740
      
2,838
  
Share-based compensation expense (b)
    
567
      
906
  
Adjusted EBITDA (Non-GAAP)
  
$
20,253
    
$
13,146
  

(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.

Caesarstone Ltd. and its subsidiaries

   
Three months ended March 31,
  
U.S. dollars in thousands (except per share data)
  
2021
    
2020
  
   
(Unaudited)
  
Reconciliation of net income attributable to controlling interest to adjusted net income attributable to controlling interest:
  
Net income attributable to controlling interest
  
$
14,190
    
$
2,678
  
Legal settlements and loss contingencies, net (a)
    
740
      
2,838
  
Amortization of assets related to acquisitions, net of tax
    
826
      
-
  
Share-based compensation expense (b)
    
567
      
906
  
Non cash revaluation of lease liabilities (c)
    
(1,862
)
    
(1,471
)
Total adjustments
    
271
      
2,273
  
Less tax on non-tax adjustments (d)
    
27
      
344
  
Total adjustments after tax
    
244
      
1,929
  
                 
Adjusted net income attributable to controlling interest (Non-GAAP)
  
$
14,434
    
$
4,607
  
Adjusted diluted EPS (e)
  
$
0.42
    
$
0.13
  

(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)
Tax adjustments for the three months ended March 31, 2021 and 2020, based on the effective tax rates.
(e)
In calculating adjusted diluted (Non-GAAP) EPS for the three months ended March 31, 2021 and 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 March 31,
  
U.S. dollars in thousands
  
2021
    
2020
  
   
(Unaudited)
  
             
USA
  
$
70,831
    
$
60,055
  
Canada
    
17,779
      
18,558
  
Latin America
    
858
      
506
  
America's
    
89,468
      
79,119
  
                 
Australia
    
27,172
      
22,354
  
Asia
    
7,777
      
2,831
  
APAC
    
34,949
      
25,185
  
                 
EMEA
    
12,718
      
11,340
  
                 
Israel
    
8,897
      
10,913
  
                 
Total Revenues
  
$
146,032
    
$
126,557
  


Caesarstone Ltd. and its subsidiaries
Geographic breakdown of revenues by region - Supplemental data

   
Three months ended
  
U.S. dollars in thousands
  
3/31/2021
    
12/31/2020
    
9/30/2020
    
6/30/2020
    
3/31/2020
    
12/31/2019
    
9/30/2019
    
6/30/2019
    
3/30/2019
  
   
(Unaudited)
  
                                                       
USA
  
$
70,831
    
$
53,618
    
$
52,097
    
$
41,726
    
$
60,055
    
$
64,659
    
$
64,805
    
$
64,590
    
$
56,417
  
Canada
    
17,779
      
20,325
      
19,174
      
14,435
      
18,558
      
20,575
      
21,881
      
23,341
      
20,178
  
Latin America
    
858
      
1,387
      
124
      
132
      
506
      
735
      
1,434
      
1,351
      
596
  
America's
    
89,468
      
75,330
      
71,395
      
56,293
      
79,119
      
85,969
      
88,120
      
89,282
      
77,191
  
                                                                         
Australia
    
27,172
      
29,953
      
27,746
      
23,534
      
22,354
      
26,000
      
28,642
      
28,294
      
25,214
  
Asia
    
7,777
      
7,122
      
2,881
      
1,732
      
2,831
      
3,932
      
3,675
      
3,311
      
4,596
  
APAC
    
34,949
      
37,075
      
30,627
      
25,266
      
25,185
      
29,932
      
32,317
      
31,605
      
29,810
  
                                                                         
EMEA
    
12,718
      
14,408
      
11,422
      
8,031
      
11,340
      
9,464
      
11,719
      
11,418
      
10,455
  
                                                                         
Israel
    
8,897
      
10,083
      
10,478
      
9,447
      
10,913
      
8,502
      
10,683
      
8,766
      
10,741
  
                                                                         
Total Revenues
  
$
146,032
    
$
136,896
    
$
123,922
    
$
99,037
    
$
126,557
    
$
133,867
    
$
142,839
    
$
141,071
    
$
128,197
  

   
Year-over-year % change
  

 
3/31/2021
    
12/31/2020
    
9/30/2020
    
6/30/2020
    
3/31/2020
  
   
(Unaudited)
  
                               
USA
    
17.9
%
    
(17.1
)%
    
(19.6
)%
    
(35.4
)%
    
6.4
%
Canada
    
(4.2
)%
    
(1.2
)%
    
(12.4
)%
    
(38.2
)%
    
(8.0
)%
Latin America
    
69.6
%
    
88.8
%
    
(91.4
)%
    
(90.2
)%
    
(15.1
)%
America's
    
13.1
%
    
(12.4
)%
    
(19.0
)%
    
(36.9
)%
    
2.5
%
                                         
Australia
    
21.6
%
    
15.2
%
    
(3.1
)%
    
(16.8
)%
    
(11.3
)%
Asia
    
174.7
%
    
81.1
%
    
(21.6
)%
    
(47.7
)%
    
(38.4
)%
APAC
    
38.8
%
    
23.9
%
    
(5.2
)%
    
(20.1
)%
    
(15.5
)%
                                         
EMEA
    
12.2
%
    
52.2
%
    
(2.5
)%
    
(29.7
)%
    
8.5
%
                                         
Israel
    
(18.5
)%
    
18.6
%
    
(1.9
)%
    
7.8
%
    
1.6
%
                                         
Total Revenues
    
15.4
%
    
2.3
%
    
(13.2
)%
    
(29.8
)%
    
(1.3
)%

   
Year-over-year % change in constant currency (*)
  

 
3/31/2021
    
12/31/2020
    
9/30/2020
    
6/30/2020
    
3/31/2020
  
   
(Unaudited)
  
                               
USA
    
17.9
%
    
(17.1
)%
    
(19.6
)%
    
(35.4
)%
    
6.4
%
Canada
    
(9.6
)%
    
(2.4
)%
    
(11.7
)%
    
(36.0
)%
    
(7.1
)%
Latin America
    
69.8
%
    
88.7
%
    
(91.3
)%
    
(90.2
)%
    
(15.2
)%
America's
    
11.8
%
    
(12.7
)%
    
(18.8
)%
    
(36.4
)%
    
2.7
%
                                         
Australia
    
2.8
%
    
7.9
%
    
(7.1
)%
    
(11.5
)%
    
(3.3
)%
Asia
    
169.5
%
    
80.7
%
    
(21.2
)%
    
(45.9
)%
    
(37.1
)%
APAC
    
21.5
%
    
17.5
%
    
(8.7
)%
    
(15.1
)%
    
(8.5
)%
                                         
EMEA
    
3.3
%
    
45.8
%
    
(5.9
)%
    
(26.9
)%
    
11.4
%
                                         
Israel
    
(24.6
)%
    
9.4
%
    
(4.5
)%
    
4.5
%
    
(1.5
)%
                                         
Total Revenues
    
9.8
%
    
(0.4
)%
    
(14.4
)%
    
(28.3
)%
    
0.5
%

(*) Change in revenues at constant currency is calculated so that revenues can be viewed without the impact of fluctuations s 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.