Greetings, welcome to the Caesarstone Third Quarter 2019 Earnings Conference Call. [Operator Instructions] A brief question-and-answer session will follow the formal presentation. [Operator Instructions] It is now my pleasure to introduce your host, Brad Cray of ICR. Thank you. You may begin.

Thank you, operator and good morning to everyone. I'm joined by Yuval Dagim, Caesarstone's Chief Executive Officer; and Ophir Yakovian, Caesarstone's Chief Financial Officer. Certain statements in today's conference call and responses to various questions may constitute forward-looking statements. We caution you that such statements reflect only the Company's current expectations and that actual events or results may differ materially. For more information, please refer to the risk factors contained in the Company's most recent annual report on Form 20-F and subsequent filings with the Securities and Exchange Commission. In addition, on this call, the Company will make reference to certain non-GAAP financial measures, including adjusted net income, adjusted net income per share, adjusted gross profit and adjusted EBITDA. The reconciliation of these non-GAAP measures to the most directly comparable GAAP measures can be found in the Company's third quarter 2019 earnings release, which is posted on the Company's investor relations website. Thank you. And I would now like to turn the call over to Yuval. Please go ahead.

Thank you, Brad and good morning everyone. Our third quarter 2018 results reflect our focused efforts to execute the various aspects of our Global Growth Acceleration Plan that we introduced earlier this year. Execution against this plan, combined with tight cost control were the primary drivers in helping us grow adjusted EBITDA and achieve higher adjusted EBITDA margin compared to the prior year quarter. In addition, I'm encouraged with our execution in the U.S. where we drove 8% growth in our core business. This was largely due to the solid execution of our North American leadership team following the realignment of our operation in that region earlier this year. While many of our markets outside the U.S., continue to experience intense competition from low price manufacturers, I'm confident in the steps we are taking to improve our performance and enhance our position. Our new leadership team is now fully in place, executing our strategies to a variety of projects to better leverage our strong brand, more effectively control cost, increase efficiencies and streamline processes. To date we have started 90% out of an initial 30 identified projects under the Growth Acceleration Plan. Now I would like to provide several updates on our progress so far. First, on the production side, we have already begun to develop improved sourcing strategies and initiated projects to enhance productivity and stability of our manufacturing process. Our initial reduction early this year to less than 50% of our full capacity in our Richmond Hill manufacturing facility has provided us the opportunity to further improve productivity and quality. Working of these new efficient base, we now believe we are in a position to increase effective capacity to 60% while maintaining improved level of performance. Within our supply chain we are implementing new processes and technologies to improve our focusing, planning, distribution and inventory management that will provide efficiencies and better service to our customers. On the technology front, we have initiated a new IT strategy that will transform our Company into a data-driven organization as well as automate processes. Overall, we are confident that these strategic initiatives along with our strong balance sheet will better position us to generate additional value for our shareholders over the long-term. With that let me turn the call over to Ophir who will provide details on our results and outlook.

Thank you, Yuval and good morning everyone. I will start by discussing our third quarter results. For the third quarter 2019, global revenue was $142.8 million compared to $147.7 million in the third quarter of last year. More than half of the decline was attributable to adverse FX impact of $2.7 million. On a constant currency basis, revenue declined by 1.5% compared to last year, due to softer market condition in most of the regions outside the U.S. combined with more competitive markets mainly in Australia and Canada, along with lower performance in IKEA U.S. This was partially offset by improved performance in our core U.S. business and strong demand in the UK. In the United States, third quarter sales increased by 5% compared to the third quarter of 2018. Our core U.S. business grew 8% year-over-year, this marked the fifth consecutive quarter of revenue growth in our core U.S. business and is mainly attributable to the success of our North America region realignment earlier this year, including the instalment of new regional leadership team. As mentioned on our last earnings call, intense competition from Chinese manufacturer at low price point continue to pressure our global footprint outside the U.S. In Australia, constant currency sales were down 10.1% as a result of the factor I just discussed. Coupled with soft housing and remodeling markets in a more challenging lending environment. In Canada, constant currency sales were down 12.1%. Our performance was affected by softer housing and remodeling markets, combined with more intense competition from Chinese imports. In Europe, constant currency sales grew 16.3%, primarily reflecting continued strong performance in the UK. Sales in Israel, on a constant currency basis were up 7.5% as we experienced benefits from a higher number of selling days compared to the prior year quarter due…

Thank you, Ophir. While we expect our core U.S. business to remain strong and our ongoing operational initiatives to positively impact results, the competitive environment in most of the other regions is likely to persist into coming quarters. We recognize that we are shifting the fundamentals of our organization and it will take time to fully recognize the benefits that we are bringing into the organization beyond recent margin improvements. We are still in the early stages of this initiative and based on our progress also we are confident that our new leadership team is taking the right actions to deliver on our objectives and to improve our operating performance over the coming years. I look forward to updating you further on our progress next quarter. Thank you. And we are now ready to open the call for questions.

Thank you. [Operator Instructions] Our first question is from Dillard Watt with Stifel. Please proceed.

Thanks, good morning. Maybe wanted to talk a little bit about the core business in the U.S., so a somewhat measurable deceleration in terms of the year-over-year growth from the second quarter. But I don't - I'm not sure if there is some other - some year-over-year things that you guys are lapping or anything that might, explain that.

Hi, Dillard. Thank you for the question. I think all-in-all, we do see quite interesting increase of the quartz penetration in the U.S. And we are quite encouraged by the continuous penetration of this category in the U.S. in which we are continue to - with our efforts to have a bit of go-to-market platform, we continue to invest behind our sales team and actually all the initiatives that we put in our Global Growth Acceleration Plan, are implants regarding the U.S. I think all that has been kind of - I mean effected itself in this quarter increase in - sorry, growth in our revenue with 4.6% in our core business

Okay. And on the sales team, I know that that's sort of a process to get everyone hired in, ramped up. How far along are you in terms of either the number of people or the markets you're targeting or any of those type of metrics?

All-in-all, it's a few years journey, we are really building new foundations for our business in the U.S. We are in line with our expectations for and manpower and capacity this year. And I think we have quite a robust plan for next year. All our [Indecipherable] going quite well and we are - I think bringing quite a lot of new talent to our business.

Okay. And then I guess you know IKEA, I know it's tough to answer questions about specific customers to do headwinds from a year-over-year standpoint, start to ease, whether it'd be due to their changes in their promotions or their comps or anything like that? What should we expect over the next couple of quarters in terms of the stuff that you cannot control as it relates to IKEA?

So - just to repeat the numbers again our core business actually grew by 8% and all together with IKEA, it's only 4.6%. We are - we kind of have a very close relationship with IKEA, but we can't say if it's been flattened out or not, all-in-all, I think we continue with our relationship with IKEA, supporting them in their journey and I hope that numbers will come up again.

Okay. And then I guess internationally, sort of a similar story that you've seen in the past in the United States now playing out in Europe once the dumping duties have of course been put in place and therefore you need to go elsewhere. Is there anything you've learned from the U.S. that makes you feel like you can put together some sort of defensive strategy or protect yourselves or anything like that, that you basically have the benefit of some hindsight here that you can, you can use to your advantage, is this dynamic is playing out in other markets?

I think we referred, in the past, to the fact that I think most of the initiatives we should be taking are within our company to improve the way we do business. If there is a learning, this is the learning which upon that we are putting our plans going forward. It's the same to other regions as well. Competition, there will be no existing and will be in all our regions, then we mostly focus on what we can do better, how we can service our customers with newer innovative products and services. And just to make sure that we are - at our best in each and every market.

Okay. I'll defer to others.

[Operator Instructions] There are no more questions at this time, I would like to turn the call back to Yuval for closing remarks.

Okay. Thank you for your attention this morning. We look forward to updating you on our progress next quarter. Thank you very much.

Thank you, this concludes today's conference. You may disconnect your lines at this time and thank you for your participation.