Caesarstone (CSTE) 6-K/A Current report (foreign) (amended)

Exhibit 99.1

Caesarstone Ltd. and its subsidiaries

Condensed consolidated balance sheets

	As of
U.S. dollars in thousands	December 31, 2016			December 31, 2015
	(Unaudited)			(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents and short-term bank deposits	$	106,270		$	62,807
Trade receivables, net		63,072			59,185
Other accounts receivable and prepaid expenses		39,484			32,230
Inventories		101,474			95,479
Total current assets		310,300			249,701
LONG-TERM ASSETS:
Severance pay fund		3,403			3,296
Other receivables long-term		7,977			8,603
Total long-term assets		11,380			11,899
PROPERTY, PLANT AND EQUIPMENT, NET		222,818			225,438
OTHER ASSETS		4,546			6,883
GOODWILL		35,656			35,821
Total assets	$	584,700		$	529,742
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term bank credit	$	8,540		$	3,241
Trade payables		48,633			46,382
Related party and other loan		3,099			3,251
Accrued expenses and other liabilities		33,065			27,986
Total current liabilities		93,337			80,860
LONG-TERM LIABILITIES:
Long-term loan and financing leaseback from a related party		8,070			8,472
Legal settlements and loss contingencies long-term		12,527			11,190
Accrued severance pay		4,265			4,309
Long-term warranty provision		988			934
Deferred tax liabilities, net		14,921			14,767
Share-based payment		-			148
Total long-term liabilities		40,771			39,820
REDEEMABLE NON-CONTROLLING INTEREST		12,939			8,841
EQUITY:
Ordinary shares		371			370
Treasury shares - at cost		(39,430	)		-
Additional paid-in capital		146,536			142,765
Accumulated other comprehensive loss		(1,150	)		(1,892	)
Retained earnings		331,326			258,978
Total equity		437,653			400,221
Total liabilities and equity	$	584,700		$	529,742

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)	2016			2015			2016			2015
	(Unaudited)			(Unaudited)			(Unaudited)			(Audited)
Revenues	$	134,975		$	127,361		$	538,543		$	499,515
Cost of revenues		83,543			79,143			326,057			299,290
Gross profit		51,432			48,218			212,486			200,225
Operating expenses:
Research and development		713			993			3,290			3,052
Marketing and selling		18,568			15,047			70,343			59,521
General and administrative		9,930			9,599			40,181			36,612
Legal settlements and loss contingencies, net		3,115			(64	)		5,868			4,654
Total operating expenses		32,326			25,575			119,682			103,839
Operating income		19,106			22,643			92,804			96,386
Finance expenses, net		1,000			688			3,318			3,085
Income before taxes on income		18,106			21,955			89,486			93,301
Taxes on income		2,790			2,563			13,003			13,843
Net income	$	15,316		$	19,392		$	76,483		$	79,458
Net income attributable to non-controlling interest		(248	)		(682	)		(1,887	)		(1,692	)
Net income attributable to controlling interest	$	15,068		$	18,710		$	74,596		$	77,766
Basic net income per ordinary share	$	0.37		$	0.53		$	2.08		$	2.21
Diluted net income per ordinary share	$	0.37		$	0.53		$	2.08		$	2.19
Weighted average number of ordinary shares used in computing basic income per ordinary share		34,321,573			35,294,755			34,706,303			35,252,596
Weighted average number of ordinary shares used in computing diluted income per ordinary share		34,356,672			35,451,861			34,763,920			35,463,698

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Caesarstone Ltd. and its subsidiaries

Selected Condensed consolidated statements of cash flows (Unaudited)

	Twelve months ended December 31,
U.S. dollars in thousands	2016			2015
Cash flows from operating activities:
Net income	$	76,483		$	79,458
Adjustments required to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		28,254			22,334
Share-based compensation expense		3,068			2,293
Accrued severance pay, net		(150	)		540
Changes in deferred tax, net		(963	)		7,051
Capital loss		32			-
Legal settlemnets and loss contingencies, net		5,868			4,654
Compensation paid by a shareholder		266			-
Increase in trade receivables		(4,184	)		(2,968	)
Decrease (increase) in other accounts receivable and prepaid expenses		(5,617	)		(3,069	)
Increase in inventories		(5,376	)		(15,267	)
Increase (decrease) in trade payables		1,424			(8,659	)
Increase (decrease) in warranty provision		100			(447	)
Increase (decrease) in accrued expenses and other liabilities including related party		2,314			(259	)
Net cash provided by operating activities		101,519			85,661
Cash flows from investing activities:
Purchase of property, plant and equipment		(22,943	)		(76,495	)
Proceeds from sale of property, plant and equipment		22			-
Increase in long term deposits		(452	)		(1,228	)
Net cash used in investing activities (*)		(23,373	)		(77,723	)
Cash flows from financing activities:
Dividend paid by subsidiary to non-controlling interest		(243	)		-
Changes in short-term bank credit and loans, net		5,157			3,241
Repayment of a financing leaseback related to Bar-Lev transaction		(1,100	)		(1,092	)
Purchase of treasury shares at cost		(39,430	)		-
Net cash provided by (used in) financing activities		(35,616	)		2,149
Effect of exchange rate differences on cash and cash equivalents		933			(1,607	)
Increase in cash and cash equivalents and short-term bank deposits		43,463			8,480
Cash and cash equivalents and short-term bank deposits at beginning of the period		62,807			54,327
Cash and cash equivalents and short-term bank deposits at end of the period	$	106,270		$	62,807
Non - cash investing:
Changes in trade payables balances related to purchase of fixed assets		(403	)		(4,389	)

(*) Cash used in investing activities does not include changes in bank deposits as such balance is included in the "cash and cash equivalents and short term bank deposits" line at the beginning and end of the period.

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Caesarstone Ltd. and its subsidiaries

	Three months ended December 31,					Twelve months ended December 31,
U.S. dollars in thousands	2016		2015			2016		2015
	(Unaudited)
Reconciliation of Net Income to Adjusted EBITDA:
Net income	$	15,316	$	19,392		$	76,483	$	79,458
Finance expenses, net		1,000		688			3,318		3,085
Taxes on income		2,790		2,563			13,003		13,843
Depreciation and amortization		7,211		6,706			28,254		22,334
Legal settlements and loss contingencies, net (a)		3,115		(64	)		5,868		4,654
Compensation paid by a shareholder (b)		-		-			266		-
Share-based compensation expense (c)		535		1,147			3,068		2,293
Adjusted EBITDA (Non-GAAP)	$	29,967	$	30,432		$	130,260	$	125,667

(a)	Consists of legal settlements expenses and loss contingencies, net, related to silicosis claims.
(b)	One time bonus paid by a shareholder to Company's employees.
(c)	Share-based compensation includes expenses related to stock options and restricted stock units granted to employees of the Company.
	In addition, includes expenses for phantom awards granted and related payroll expenses as a result of exercises.

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Caesarstone Ltd. and its subsidiaries

	Three months ended December 31,					Twelve months ended December 31,
U.S. dollars in thousands (except per share data)	2016		2015			2016			2015
	(Unaudited)
Reconciliation of net income attributable to controlling interest to adjusted net income attributable to controlling interest:
Net income attributable to controlling interest	$	15,068	$	18,710		$	74,596		$	77,766
Legal settlements and loss contingencies, net (a)		3,115		(64	)		5,868			4,654
Compensation paid by a shareholder (b)		-		-			266			-
Share-based compensation expense (c)		535		1,147			3,068			2,293
Tax adjustment (d)		-		-			(1,158	)		-
Total adjustments		3,650		1,083			8,044			6,947
Less tax on non-tax adjustments (e)		572		104			1,456			1,031
Total adjustments after tax		3,078		979			6,588			5,916
Adjusted net income attributable to controlling interest (Non-GAAP)	$	18,146	$	19,689		$	81,184		$	83,682
Adjusted diluted EPS (f)	$	0.53	$	0.55		$	2.33		$	2.36

(a)	Consists of legal settlements expenses and loss contingencies, net, related to silicosis claims.
(b)	One time bonus paid by a shareholder to Company's employees.
(c)	Share-based compensation includes expenses related to stock options and restricted stock units granted to employees of the Company. In addition, includes expenses for phantom awards granted and the related payroll expenses as a result of exercises.
(d)	Tax adjustment as a result of tax settlement with the Israeli tax authorities.
(e)	Tax adjustments for the three and twelve months ended December 31, 2016 and 2015 were based on the effective tax rates for these periods, respectively.
(f)	In calculating adjusted diluted (Non-GAAP) EPS, the diluted weighted average number of shares outstanding excludes the effects of share-based compensation expense in accordance with FASB ASC 718.

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Caesarstone Ltd. and its subsidiaries

Geographic breakdown of revenues by region (Unaudited)

	Three months ended December 31,				Twelve months ended December 31,
U.S. dollars in thousands	2016		2015		2016		2015
USA	$	54,963	$	56,549	$	222,597	$	223,341
Australia (incl. New Zealand)		36,062		30,687		130,910		110,290
Canada		21,460		17,879		85,740		70,739
Israel		9,816		9,592		42,545		39,645
Europe		5,199		5,479		25,606		23,948
Rest of World		7,475		7,176		31,145		31,552
	$	134,975	$	127,361	$	538,543	$	499,515

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