Lifetime Brands, Inc. (NasdaqGS:LCUT), a leading global provider of
branded kitchenware, tableware and other products used in the home,
today reported its financial results for the second quarter ended
June 30, 2016.
Second Quarter Financial
Highlights:
Consolidated net sales were $118.1 million, as
compared to consolidated net sales of $120.9 million in the
corresponding period in 2015. In constant currency, which excludes
the impact of foreign exchange fluctuations, consolidated net sales
decreased 1.4%, as compared to consolidated net sales in the
corresponding period in 2015.
Gross margin was $43.0 million, or 36.4%, as
compared to $43.5 million, or 36.0%, for the corresponding period
in 2015.
Loss from operations was $0.3 million, as compared
to a loss of $1.0 million for the corresponding period in 2015.
Net loss was $1.2 million, or $0.08 per diluted
share, as compared to a net loss of $1.7 million, or $0.12 per
diluted share, in the corresponding period in 2015.
Adjusted net income was $0.1 million, or $0.01 per
diluted share, as compared to adjusted net loss of $0.6 million, or
$0.04 per diluted share, in the corresponding period in 2015.
Consolidated EBITDA was $5.2 million, as compared
to $4.4 million for the corresponding 2015 period.
Six Months Financial
Highlights:
Consolidated net sales were $229.0 million, as
compared to consolidated net sales of $238.6 million for the
corresponding period in 2015. In constant currency,
consolidated net sales decreased 3.1%.
Gross margin was $83.5 million, or 36.5%, as
compared to $88.4 million, or 37.1%, for the corresponding period
in 2015.
Loss from operations was $5.5 million, as compared
to a loss of $3.2 million, for the corresponding period in
2015.
Net loss was $5.5 million, or $0.39 per diluted
share, as compared to a loss of $3.8 million, or $0.28 per diluted
share, in the 2015 period.
Adjusted net loss was $3.3 million, or $0.23 per
diluted share, as compared to a loss of $2.5 million, or $0.18 per
diluted share, in the 2015 period.
Consolidated EBITDA was $5.5 million, as compared
to $6.9 million for the corresponding 2015 period.
Equity in losses, net of taxes, was $0.1 million,
as compared to equity in earnings, net of taxes, of $0.3 million in
the corresponding 2015 period.
Jeffrey Siegel, Lifetime's Chairman and Chief
Executive Officer, commented,
“As we previously have noted, Lifetime’s business
is heavily weighted to the second half of the year. Our results for
this quarter generally were in line with our expectations.
Consolidated net sales decreased modestly, reflecting the timing of
shipments. This decrease was offset by an increase in our overall
gross margin percentage and by lower distribution and SG&A
expenses, resulting in positive adjusted net income, as compared to
adjusted net loss in the corresponding period in 2015. Consolidated
EBITDA increased to $5.2 million, as compared to $4.4 million in
the prior year’s quarter.
“We have now commenced the implementation phase of
the restructuring plan that we initiated earlier this year with the
assistance of a major international consulting firm to right size
Lifetime’s SG&A expense base, realign our operating structure
and improve the efficiency of our operating activities, and are
confident that we are on track to achieve significant efficiencies
that will be reflected in our operating results beginning in
2017.
“It is too early to assess the effects of the
“Brexit” referendum on our U.K. subsidiaries, Creative Tops and
Kitchen Craft, the net sales of which represent approximately 19%
of Lifetime’s consolidated net sales. Through this year, we expect
any such effects to be modest, as Creative Tops and Kitchen Craft
were able to hedge their anticipated U.S. dollar purchases through
the end of 2016. Moreover, by relying on Lifetime’s global sourcing
infrastructure, Creative Tops and Kitchen Craft should be able to
source products on better terms than their smaller competitors.
Longer term, a prolonged decline in the value of the British pound
would increase the cost of imports into the U.K. and could
negatively affect the translation of financial results into U.S.
dollars.
“As of now, we foresee a healthy holiday shopping
season and expect top line growth in the second half of the
year.”
Dividend
On Thursday, August 4, 2016, the Board of Directors
declared a quarterly dividend of $0.0425 per share payable on
November 15, 2016 to shareholders of record on November 1,
2016.
Conference Call
The Company has scheduled a conference call for
Tuesday, August 9, 2016 at 10:30 a.m. ET. The dial-in number for
the conference call is (844) 787-0801 or (661) 378-9632, passcode
#50286455. A live webcast of the conference call will be accessible
through http://edge.media-server.com/m/p/tig87ni9/lan/en. For those
who cannot listen to the live broadcast, an audio replay of the
webcast will be available.
Non-GAAP Financial Measures
This earnings release contains non-GAAP financial
measures. A non-GAAP financial measure is a numerical measure of a
company's historical or future financial performance, financial
position or cash flows that excludes amounts, or is subject to
adjustments that have the effect of excluding amounts, that are
included in the most directly comparable measure calculated and
presented in accordance with GAAP in the statements of income,
balance sheets, or statements of cash flows of the Company; or
includes amounts, or is subject to adjustments that have the effect
of including amounts, that are excluded from the most directly
comparable measure so calculated and presented. As required by SEC
rules, the Company has provided reconciliations of the non-GAAP
financial measures to the most directly comparable GAAP financial
measures. These non-GAAP measures are provided because management
of the Company uses these financial measures in evaluating the
Company's on-going financial results and trends, and management
believes that exclusion of certain items allows for more accurate
comparison of the Company’s operating performance. Management uses
this non-GAAP information as an indicator of business
performance. These non-GAAP measures should be viewed as a
supplement to, and not a substitute for, GAAP measures of
performance.
Forward-Looking Statements
In this press release, the use of the words
“believe,” "could," "expect," "may," "positioned," "project,"
"projected," "should," "will," "would" or similar expressions is
intended to identify forward-looking statements that represent the
Company’s current judgment about possible future events. The
Company believes these judgments are reasonable, but these
statements are not guarantees of any events or financial results,
and actual results may differ materially due to a variety of
important factors. Such factors might include, among others, the
Company’s ability to comply with the requirements of its credit
agreements; the availability of funding under such credit
agreements; the Company’s ability to maintain adequate liquidity
and financing sources and an appropriate level of debt; changes in
general economic conditions which could affect customer payment
practices or consumer spending; the impact of changes in general
economic conditions on the Company’s customers; changes in demand
for the Company’s products; shortages of and price volatility for
certain commodities; significant changes in the competitive
environment and the effect of competition on the Company’s markets,
including on the Company’s pricing policies, financing sources and
an appropriate level of debt.
Lifetime Brands,
Inc.
Lifetime Brands is a leading global provider of
kitchenware, tableware and other products used in the home. The
Company markets its products under well-known kitchenware brands,
including Farberware®, KitchenAid®, Sabatier®, Fred® & Friends,
Kitchen Craft®, Kamenstein®, Kizmos™, La Cafetière®, Misto®, Mossy
Oak®, Reo® and Savora™; respected tableware and giftware brands,
including Mikasa®, Pfaltzgraff®, Creative Tops®, Empire Silver™,
Gorham®, International® Silver, Kirk Stieff®, Towle® Silversmiths,
Wallace®, Wilton Armetale®, V&A® and Royal Botanic Gardens
Kew®; and valued home solutions brands, including Bombay®, BUILT
NY® and Debbie Meyer®. The Company also provides exclusive private
label products to leading retailers worldwide.
The Company’s corporate website is
www.lifetimebrands.com.
Contacts: |
|
|
|
Lifetime Brands, Inc. |
Lippert/Heilshorn &
Assoc. |
Laurence Winoker, Chief Financial
Officer |
Harriet Fried, SVP |
516-203-3590 |
212-838-3777 |
investor.relations@lifetimebrands.com |
hfried@lhai.com |
LIFETIME BRANDS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands - except per share data) (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
118,050 |
|
|
$ |
120,935 |
|
|
$ |
228,975 |
|
|
$ |
238,592 |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales |
|
75,056 |
|
|
|
77,424 |
|
|
|
145,430 |
|
|
|
150,173 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin |
|
42,994 |
|
|
|
43,511 |
|
|
|
83,545 |
|
|
|
88,419 |
|
|
|
|
|
|
|
|
|
|
|
|
Distribution
expenses |
|
12,377 |
|
|
|
12,547 |
|
|
|
25,694 |
|
|
|
26,030 |
|
|
Selling,
general and administrative expenses |
|
29,845 |
|
|
|
31,951 |
|
|
|
61,653 |
|
|
|
65,547 |
|
|
Restructuring expenses |
|
1,060 |
|
|
|
- |
|
|
|
1,701 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
(288 |
) |
|
|
(987 |
) |
|
|
(5,503 |
) |
|
|
(3,158 |
) |
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
(1,122 |
) |
|
|
(1,459 |
) |
|
|
(2,315 |
) |
|
|
(2,890 |
) |
|
Financing expense |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(154 |
) |
|
Loss on early retirement of debt |
|
(272 |
) |
|
|
- |
|
|
|
(272 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Loss before
income taxes and equity in earnings |
|
(1,682 |
) |
|
|
(2,446 |
) |
|
|
(8,090 |
) |
|
|
(6,202 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income tax
benefit |
|
473 |
|
|
|
717 |
|
|
|
2,743 |
|
|
|
2,080 |
|
|
Equity in
earnings (losses), net of taxes |
|
18 |
|
|
|
2 |
|
|
|
(132 |
) |
|
|
290 |
|
|
|
|
|
|
|
|
|
|
|
|
NET
LOSS |
$ |
(1,191 |
) |
|
$ |
(1,727 |
) |
|
$ |
(5,479 |
) |
|
$ |
(3,832 |
) |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding - basic |
|
14,155 |
|
|
|
13,845 |
|
|
|
14,059 |
|
|
|
13,779 |
|
|
|
|
|
|
|
|
|
|
|
|
BASIC LOSS PER COMMON
SHARE |
$ |
(0.08 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.39 |
) |
|
$ |
(0.28 |
) |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding - diluted |
|
14,155 |
|
|
|
13,845 |
|
|
|
14,059 |
|
|
|
13,779 |
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED LOSS PER COMMON
SHARE |
$ |
(0.08 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.39 |
) |
|
$ |
(0.28 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share |
$ |
0.0425 |
|
|
$ |
0.0375 |
|
|
$ |
0.085 |
|
|
$ |
0.075 |
|
|
|
|
|
|
|
|
|
|
|
|
LIFETIME BRANDS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (In
thousands - except share data) |
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
(unaudited) |
|
|
ASSETS |
|
|
|
CURRENT ASSETS |
|
|
|
|
Cash and cash equivalents |
$ |
6,649 |
|
|
$ |
7,131 |
|
|
Accounts receivable, less allowances of $4,513 at June 30, 2016
and $5,300 at December 31, 2015 |
|
81,055 |
|
|
|
90,576 |
|
|
Inventory |
|
150,593 |
|
|
|
136,890 |
|
|
Prepaid expenses and other current assets |
|
9,107 |
|
|
|
8,783 |
|
|
Deferred income taxes |
|
4,668 |
|
|
|
- |
|
|
|
TOTAL CURRENT ASSETS |
|
252,072 |
|
|
|
243,380 |
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT, net |
|
22,910 |
|
|
|
24,877 |
|
INVESTMENTS |
|
23,486 |
|
|
|
24,973 |
|
INTANGIBLE ASSETS, net |
|
93,397 |
|
|
|
96,593 |
|
DEFERRED INCOME TAXES |
|
7,122 |
|
|
|
6,486 |
|
OTHER ASSETS |
|
2,196 |
|
|
|
2,022 |
|
|
|
|
TOTAL
ASSETS |
$ |
401,183 |
|
|
$ |
398,331 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
CURRENT LIABILITIES |
|
Current maturity of Credit Agreement Term Loan |
$ |
9,836 |
|
|
$ |
19,646 |
|
|
Short term loan |
|
131 |
|
|
|
252 |
|
|
Accounts payable |
|
25,942 |
|
|
|
27,245 |
|
|
Accrued expenses |
|
34,343 |
|
|
|
40,154 |
|
|
Income taxes payable |
|
- |
|
|
|
4,064 |
|
|
|
TOTAL CURRENT LIABILITIES |
|
70,252 |
|
|
|
91,361 |
|
|
|
|
|
|
|
|
DEFERRED RENT & OTHER LONG-TERM LIABILITIES |
|
18,906 |
|
|
|
18,556 |
|
DEFERRED INCOME TAXES |
|
9,091 |
|
|
|
8,596 |
|
REVOLVING CREDIT FACILITY |
|
105,925 |
|
|
|
65,617 |
|
CREDIT AGREEMENT TERM LOAN |
|
4,426 |
|
|
|
14,733 |
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
Preferred stock, $1.00 par value, shares authorized: 100 shares
of Series A and 2,000,000 shares of Series B; none issued and
outstanding |
|
- |
|
|
|
- |
|
|
Common stock, $.01 par value, shares authorized: 50,000,000 at
June 30, 2016 and 25,000,000 at December 31, 2015; shares
issued and outstanding: 14,429,719 at June 30, 2016 and 14,030,221
at December 31, 2015 |
|
144 |
|
|
|
140 |
|
|
Paid-in capital |
|
170,374 |
|
|
|
165,780 |
|
|
Retained earnings |
|
41,025 |
|
|
|
47,733 |
|
|
Accumulated other comprehensive loss |
|
(18,960 |
) |
|
|
(14,185 |
) |
|
|
TOTAL STOCKHOLDERS’ EQUITY |
|
192,583 |
|
|
|
199,468 |
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
401,183 |
|
|
$ |
398,331 |
|
|
|
|
|
|
|
|
LIFETIME BRANDS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands) (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
June 30, |
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
OPERATING ACTIVITIES |
|
|
|
|
|
Net loss |
$ |
(5,479 |
) |
|
$ |
(3,832 |
) |
|
|
Adjustments to reconcile net loss to net cash (used in)
provided by operating activities: |
|
|
|
|
|
|
Depreciation
and amortization |
|
7,062 |
|
|
|
7,193 |
|
|
|
|
Amortization of financing costs |
|
333 |
|
|
|
313 |
|
|
|
|
Deferred
rent |
|
(37 |
) |
|
|
503 |
|
|
|
|
Deferred
income taxes |
|
113 |
|
|
|
- |
|
|
|
|
Stock compensation expense |
|
1,290 |
|
|
|
1,523 |
|
|
|
|
Undistributed equity in (earnings) losses, net |
|
132 |
|
|
|
(290 |
) |
|
|
|
Gain on disposal of fixed assets |
|
(17 |
) |
|
|
- |
|
|
|
|
Loss on early retirement of debt |
|
272 |
|
|
|
- |
|
|
|
Changes in operating assets and liabilities (excluding the
effects of business acquisitions) |
|
|
|
|
|
|
Accounts receivable |
|
7,562 |
|
|
|
29,752 |
|
|
|
|
Inventory |
|
(16,357 |
) |
|
|
(16,011 |
) |
|
|
|
Prepaid expenses, other current assets and other assets |
|
(1,359 |
) |
|
|
(2,351 |
) |
|
|
|
Accounts payable, accrued expenses and other liabilities |
|
(3,748 |
) |
|
|
(663 |
) |
|
|
|
Income taxes receivable |
|
(4,311 |
) |
|
|
- |
|
|
|
|
Income taxes payable |
|
(5,031 |
) |
|
|
(5,513 |
) |
|
|
|
|
NET CASH (USED IN) PROVIDED BY OPERATING
ACTIVITIES |
|
(19,575 |
) |
|
|
10,624 |
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES |
|
|
|
|
|
Purchases of property and equipment |
|
(1,091 |
) |
|
|
(2,881 |
) |
|
|
Proceeds from disposition of GSI |
|
567 |
|
|
|
- |
|
|
|
Acquisitions |
|
(614 |
) |
|
|
- |
|
|
|
|
|
NET CASH USED
IN INVESTING ACTIVITIES |
|
(1,138 |
) |
|
|
(2,881 |
) |
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|
|
Proceeds from Revolving Credit Facility |
|
120,334 |
|
|
|
129,229 |
|
|
|
Repayments of Revolving Credit Facility |
|
(79,206 |
) |
|
|
(130,571 |
) |
|
|
Repayment of Credit Agreement Term Loan |
|
(20,500 |
) |
|
|
(5,000 |
) |
|
|
Proceeds from Short Term Loan |
|
- |
|
|
|
37 |
|
|
|
Payments on Short Term Loan |
|
(117 |
) |
|
|
(688 |
) |
|
|
Payment for capital leases |
|
(32 |
) |
|
|
- |
|
|
|
Payments of tax withholding for stock based compensation |
|
(65 |
) |
|
|
- |
|
|
|
Proceeds from exercise of stock options |
|
1,191 |
|
|
|
541 |
|
|
|
Cash dividends paid |
|
(1,198 |
) |
|
|
(1,033 |
) |
|
|
|
|
NET
CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES |
|
20,407 |
|
|
|
(7,485 |
) |
|
|
|
|
|
|
|
|
|
Effect of foreign exchange on cash |
|
(176 |
) |
|
|
(370 |
) |
|
|
|
|
|
|
|
|
|
DECREASE IN CASH AND CASH EQUIVALENTS |
|
(482 |
) |
|
|
(112 |
) |
|
Cash and cash equivalents at beginning of period |
|
7,131 |
|
|
|
5,068 |
|
|
CASH AND CASH EQUIVALENTS AT END OF
PERIOD |
$ |
6,649 |
|
|
$ |
4,956 |
|
|
|
|
|
|
|
|
|
|
LIFETIME BRANDS, INC.
Supplemental Information (In thousands) |
|
|
|
|
|
Consolidated EBITDA for the Four Quarters
Ended June 30, 2016 |
Three months ended June 30, 2016 |
$ |
5,206 |
|
Three months ended March 31, 2016 |
|
268 |
|
Three months ended December 31, 2015 |
|
23,889 |
|
Three months ended September 30, 2015 |
|
14,089 |
|
|
Total
for the four quarters |
$ |
43,452 |
|
|
|
|
|
|
Consolidated EBITDA for the Four Quarters
Ended June 30,
2015 |
Three months ended June 30, 2015 |
$ |
4,388 |
|
Three months ended March 31, 2015 |
|
2,519 |
|
Three months ended December 31, 2014 |
|
20,918 |
|
Three months ended September 30, 2014 |
|
16,470 |
|
|
Total
for the four quarters |
$ |
44,295 |
|
|
|
|
Reconciliation of GAAP to Non-GAAP Operating
Results |
|
|
|
Consolidated EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
June 30,
2016 |
|
March 31, 2016 |
|
December 31,
2015 |
|
September 30,
2015 |
|
Net income (loss) as reported |
$ |
(1,191 |
) |
|
$ |
(4,288 |
) |
|
$ |
11,006 |
|
|
$ |
5,104 |
|
|
|
Subtract out: |
|
|
|
|
|
|
|
|
|
|
Undistributed equity in
(earnings) losses, net |
|
(18 |
) |
|
|
150 |
|
|
|
(517 |
) |
|
|
459 |
|
|
|
Add back: |
|
|
|
|
|
|
|
|
|
|
Income tax provision
(benefit) |
|
(473 |
) |
|
|
(2,270 |
) |
|
|
5,962 |
|
|
|
2,745 |
|
|
|
|
Interest
expense |
|
1,122 |
|
|
|
1,193 |
|
|
|
1,402 |
|
|
|
1,454 |
|
|
|
|
Loss on early
retirement of debt |
|
272 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
Depreciation and
amortization |
|
3,578 |
|
|
|
3,484 |
|
|
|
3,500 |
|
|
|
3,510 |
|
|
|
|
Stock compensation
expense |
|
487 |
|
|
|
803 |
|
|
|
2,972 |
|
|
|
791 |
|
|
|
|
Contingent
consideration |
|
- |
|
|
|
- |
|
|
|
(876 |
) |
|
|
- |
|
|
|
|
Permitted acquisition
related expenses, net of recovery |
|
369 |
|
|
|
555 |
|
|
|
3 |
|
|
|
26 |
|
|
|
|
Restructuring
expenses |
|
1,060 |
|
|
|
641 |
|
|
|
437 |
|
|
|
- |
|
|
Consolidated EBITDA |
$ |
5,206 |
|
|
$ |
268 |
|
|
$ |
23,889 |
|
|
$ |
14,089 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFETIME BRANDS, INC.
Supplemental Information (In thousands)
Reconciliation of GAAP to Non-GAAP Operating Results
(continued) |
|
Consolidated EBITDA: |
|
|
|
|
Three Months Ended |
|
|
|
|
June 30,
2015 |
|
March 31, 2015 |
|
December 31,
2014 |
|
September 30,
2014 |
|
Net income (loss) as reported |
$ |
(1,727 |
) |
|
$ |
(2,105 |
) |
|
$ |
9,261 |
|
|
$ |
(1,586 |
) |
|
|
Subtract out: |
|
|
|
|
|
|
|
|
|
|
Undistributed equity in
(earnings) losses, net |
|
(2 |
) |
|
|
(288 |
) |
|
|
1,364 |
|
|
|
5,193 |
|
|
|
Add back: |
|
|
|
|
|
|
|
|
|
|
Income tax provision
(benefit) |
|
(717 |
) |
|
|
(1,363 |
) |
|
|
5,473 |
|
|
|
3,123 |
|
|
|
|
Interest
expense |
|
1,459 |
|
|
|
1,431 |
|
|
|
1,658 |
|
|
|
1,698 |
|
|
|
|
Loss on early
retirement of debt |
|
- |
|
|
|
- |
|
|
|
27 |
|
|
|
- |
|
|
|
|
Financing expense |
|
- |
|
|
|
154 |
|
|
|
758 |
|
|
|
- |
|
|
|
|
Intangible asset
impairment |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,384 |
|
|
|
|
Depreciation and
amortization |
|
3,638 |
|
|
|
3,555 |
|
|
|
3,572 |
|
|
|
3,299 |
|
|
|
|
Stock compensation
expense |
|
773 |
|
|
|
750 |
|
|
|
2,360 |
|
|
|
694 |
|
|
|
|
Contingent
consideration |
|
1,545 |
|
|
|
147 |
|
|
|
(4,115 |
) |
|
|
665 |
|
|
|
|
Permitted acquisition
related expenses, net of recovery |
|
(581 |
) |
|
|
238 |
|
|
|
560 |
|
|
|
- |
|
|
Consolidated EBITDA |
$ |
4,388 |
|
|
$ |
2,519 |
|
|
$ |
20,918 |
|
|
$ |
16,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated EBITDA is a non-GAAP measure that the Company
defines as net income (loss), adjusted to exclude undistributed
equity in earnings (losses), income taxes, interest, losses on
early retirement of debt, depreciation and amortization, stock
compensation expense, intangible asset impairment, contingent
consideration, certain acquisition related expenses and
restructuring expenses, as shown in the tables above.
LIFETIME BRANDS, INC.
Supplemental Information (In thousands- except per
share data) Reconciliation of GAAP to Non-GAAP Operating
Results (continued) |
Adjusted net income (loss) and adjusted diluted income
(loss) per common share: |
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
Net loss as
reported |
$ |
(1,191 |
) |
|
$ |
(1,727 |
) |
|
|
(5,479 |
) |
|
$ |
(3,832 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
Contingent
consideration |
|
- |
|
|
|
1,545 |
|
|
|
- |
|
|
|
1,545 |
|
|
Acquisition
related expenses (recoveries), net |
|
369 |
|
|
|
(649 |
) |
|
|
924 |
|
|
|
(411 |
) |
|
Financing
expenses |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
154 |
|
|
Loss on early
retirement of debt |
|
272 |
|
|
|
- |
|
|
|
272 |
|
|
|
- |
|
|
Restructuring
expenses |
|
1,060 |
|
|
|
- |
|
|
|
1,701 |
|
|
|
- |
|
|
Deferred tax for
foreign currency translation for Grupo Vasconia |
|
261 |
|
|
|
575 |
|
|
|
455 |
|
|
|
575 |
|
|
Income tax
effect on adjustments |
|
(681 |
) |
|
|
(358 |
) |
|
|
(1,159 |
) |
|
|
(515 |
) |
Adjusted
net income (loss) |
$ |
90 |
|
|
$ |
(614 |
) |
|
|
(3,286 |
) |
|
$ |
(2,484 |
) |
Adjusted
diluted income (loss) per common share |
$ |
0.01 |
|
|
$ |
(0.04 |
) |
|
$ |
(0.23 |
) |
|
$ |
(0.18 |
) |
|
|
|
|
|
|
|
|
|
Adjusted net income (loss) in the three and six months ended
June 30, 2016 excludes acquisition related expenses, loss on early
retirement of debt, restructuring expenses and deferred tax expense
related to our equity earnings of Vasconia due to recording the tax
benefit of cumulative translation losses through other
comprehensive income. Adjusted net loss in the three and six months
ended June 30, 2015 excludes the fair value adjustment of certain
contingent consideration, acquisition related expenses, the
recovery of acquisition related expenses for an acquisition not
completed, financing expenses and deferred tax expense related to
our equity earnings of Vasconia due to recording the tax benefit of
cumulative translation losses through other comprehensive
income.
|
LIFETIME BRANDS, INC.
Supplemental Information (In thousands)
Reconciliation of GAAP to Non-GAAP Operating Results
(continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported |
|
Constant Currency
(1) |
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Three Months
Ended |
|
|
|
Year-Over-Year |
|
|
June 30, |
|
June 30, |
|
|
|
Increase (Decrease) |
|
Net
sales |
|
2016 |
|
|
|
2015 |
|
|
Increase (Decrease) |
|
|
2016 |
|
|
|
2015 |
|
|
Increase (Decrease) |
|
Currency Impact |
|
Excluding Currency |
|
Including Currency |
|
Currency Impact |
|
U.S. Wholesale |
$ |
92,738 |
|
|
$ |
94,601 |
|
|
$ |
(1,863 |
) |
|
$ |
92,738 |
|
|
$ |
94,577 |
|
|
$ |
(1,839 |
) |
|
$ |
(24 |
) |
|
|
(1.9 |
)% |
|
|
(2.0 |
)% |
|
|
(0.1 |
)% |
|
International |
|
21,560 |
|
|
|
22,464 |
|
|
|
(904 |
) |
|
|
21,560 |
|
|
|
21,313 |
|
|
|
247 |
|
|
|
(1,151 |
) |
|
|
1.2 |
% |
|
|
(4.0 |
)% |
|
|
(5.2 |
)% |
|
Retail Direct |
|
3,752 |
|
|
|
3,870 |
|
|
|
(118 |
) |
|
|
3,752 |
|
|
|
3,870 |
|
|
|
(118 |
) |
|
|
- |
|
|
|
(3.0 |
)% |
|
|
(3.0 |
)% |
|
|
- |
% |
|
Total net sales |
$ |
118,050 |
|
|
$ |
120,935 |
|
|
$ |
(2,885 |
) |
|
$ |
118,050 |
|
|
$ |
119,760 |
|
|
$ |
(1,710 |
) |
|
$ |
(1,175 |
) |
|
|
(1.4 |
)% |
|
|
(2.4 |
)% |
|
|
(1.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported |
|
Constant Currency
(1) |
|
|
|
|
|
|
|
|
|
|
Six Months
Ended |
|
Six Months
Ended |
|
|
|
Year-Over-Year |
|
|
June 30, |
|
June 30, |
|
|
|
Increase (Decrease) |
|
Net
sales |
|
2016 |
|
|
|
2015 |
|
|
Increase (Decrease) |
|
|
2016 |
|
|
|
2015 |
|
|
Increase (Decrease) |
|
Currency Impact |
|
Excluding Currency |
|
Including Currency |
|
Currency Impact |
|
U.S. Wholesale |
$ |
175,006 |
|
|
$ |
181,122 |
|
|
$ |
(6,116 |
) |
|
$ |
175,006 |
|
|
$ |
181,026 |
|
|
$ |
(6,020 |
) |
|
$ |
(96 |
) |
|
|
(3.3 |
)% |
|
|
(3.4 |
)% |
|
|
(0.1 |
)% |
|
International |
|
45,233 |
|
|
|
47,829 |
|
|
|
(2,596 |
) |
|
|
45,233 |
|
|
|
45,521 |
|
|
|
(288 |
) |
|
|
(2,308 |
) |
|
|
(0.6 |
)% |
|
|
(5.4 |
)% |
|
|
(4.8 |
)% |
|
Retail Direct |
|
8,736 |
|
|
|
9,641 |
|
|
|
(905 |
) |
|
|
8,736 |
|
|
|
9,641 |
|
|
|
(905 |
) |
|
|
- |
|
|
|
(9.4 |
)% |
|
|
(9.4 |
)% |
|
|
- |
% |
|
Total net sales |
$ |
228,975 |
|
|
$ |
238,592 |
|
|
$ |
(9,617 |
) |
|
$ |
228,975 |
|
|
$ |
236,188 |
|
|
$ |
(7,213 |
) |
|
$ |
(2,404 |
) |
|
|
(3.1 |
)% |
|
|
(4.0 |
)% |
|
|
(1.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
"Constant Currency" is determined by applying the 2016 average
exchange rates to the prior year local currency sales amounts, with
the difference between the change in "As Reported" net sales and
"Constant Currency" net sales, reported in the table as
"Currency Impact". Constant currency sales growth excludes the
impact of currency. |
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