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, 2017.
Second Quarter Financial
Highlights:
Consolidated net sales were $117.4 million, as
compared to consolidated net sales of $118.1 million in the
corresponding period in 2016. In constant currency, which excludes
the impact of foreign exchange fluctuations, consolidated net sales
increased 1.5%, as compared to consolidated net sales in the
corresponding period in 2016.
Gross margin was $42.8 million, or 36.5%, as
compared to $43.0 million, or 36.4%, for the corresponding period
in 2016.
Loss from operations was $3.1 million, as compared
to a loss of $0.3 million for the corresponding period in 2016.
Net loss was $2.1 million, or $0.14 per diluted
share, as compared to a net loss of $1.2 million, or $0.08 per
diluted share, in the corresponding period in 2016.
Adjusted net loss was $0.8 million, or $0.05 per
diluted share, as compared to adjusted net loss of $80 thousand, or
$0.01 per diluted share, in the corresponding period in 2016.
Consolidated EBITDA was $1.4 million, as compared
to $5.2 million for the corresponding 2016 period.
Equity in earnings, net of taxes, was $0.5 million,
as compared to $18 thousand in the corresponding 2016 period.
Six Months Financial
Highlights:
Consolidated net sales were $230.7 million, as
compared to consolidated net sales of $229.0 million for the
corresponding period in 2016. In constant currency,
consolidated net sales increased 3.3%.
Gross margin was $86.7 million, or 37.6%, as
compared to $83.5 million, or 36.5%, for the corresponding period
in 2016.
Loss from operations was $5.0 million, as compared
to a loss of $5.5 million, for the corresponding period in
2016.
Net loss was $3.4 million, or $0.24 per diluted
share, as compared to a loss of $5.5 million, or $0.39 per diluted
share, in the 2016 period.
Adjusted net loss was $2.0 million, or $0.14 per
diluted share, as compared to a loss of $3.6 million, or $0.26 per
diluted share, in the 2016 period.
Consolidated EBITDA was $3.6 million, as compared
to $5.5 million for the corresponding 2016 period.
Equity in earnings, net of taxes, was $1.0 million,
as compared to equity in losses, net of taxes, of $132 thousand in
the corresponding 2016 period.
Jeffrey Siegel, Lifetime's Chairman and Chief
Executive Officer, commented,
“We are pleased with the Company’s results for the
second quarter, which generally matched our expectations, despite a
difficult retail environment.
“Net sales in constant dollars increased 1.5% and
gross margin increased to 36.5%. We believe the net sales growth in
the period, albeit modest, reflects increases in our market share,
as many of our large brick and mortar customers reported negative
retail sales growth for the period.
“The second quarter 2017 financial results include
an unrealized foreign currency loss of $1.5 million, compared to a
gain of $0.2 million in the 2016 quarter. These amounts represent
mark-to-market adjustments on GBP/USD forward currency contracts
related to purchases of inventory. The adjustments will reverse as
the forward contracts are settled in the ordinary course of
business and, therefore, are not expected to have a permanent
economic impact.
“We are especially pleased with the growth in our
global e-commerce business, which includes sales both to pure-play
e-commerce retailers and to omnichannel retailers. While most
omnichannel retailers do not provide information as to the
percentages of their sales of our products sold through their
e-commerce websites, we believe e-commerce sales currently
represent approximately 15% of our total sales, a percentage
significantly greater than the estimate for e-commerce sales as a
percentage of overall U.S. retail sales, and are increasing at a
double-digit annual rate. As e-commerce sales continue to grow in
importance, we believe the significant investments we have made in
the infrastructure, staffing and data resources necessary to
compete effectively in this arena, have uniquely positioned
Lifetime to become an important strategic partner to global
e-commerce retailers.
“Lifetime Next™, our strategic growth and
profitability enhancement initiative, is proceeding apace. We
expect to see the benefits of this program reflected in the
Company’s financial results beginning later this year and, in a
more meaningful way, in 2018 and 2019.
“We continue to make good progress in the
integration of our UK businesses. Earlier this summer, we took
several important actions, including consolidating national account
managers, sales teams, and warehouse management; and, this month,
we successfully transitioned KitchenCraft to our SAP platform,
which will enable KitchenCraft and Creative Tops to function more
easily as an integrated business. Also, in the quarter, management
eliminated certain low margin product lines, resulting in a
substantial inventory reserve adjustment. The final step in
the integration process will be the consolidation of several legacy
distribution centers into a new, purpose-built distribution center.
Plans now are underway for this new facility, which is expected to
open in early 2019.
“Our new West Coast distribution center rapidly is
nearing completion. We plan to begin shipping from this new
location early next year.
“While we continue to be optimistic about the
Company’s performance in the second half of the year, we are
increasingly mindful of the difficult retail environment in North
America and Europe and therefore are adjusting our guidance to
reflect full year consolidated net sales growth of approximately
1.5% (excluding foreign currency impact) and gross margin
improvement of approximately 50 basis points. Based upon this sales
volume; distribution and SG&A expenses as a percentage of sales
should be slightly higher than in 2016.”
Dividend
On Friday, August 4, 2017, the Board of Directors
declared a quarterly dividend of $0.0425 per share payable on
November 15, 2017 to shareholders of record on November 1,
2017.
Conference Call
The Company has scheduled a conference call for
Tuesday, August 8, 2017 at 11:00 a.m. ET. The dial-in number for
the conference call is call is (844) 787-0801 or (661) 378-9632,
passcode # 56005964. A live webcast of the conference call will be
accessible through
http://edge.media-server.com/m/p/dr78pkhq/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, including consolidated net sales in constant currency,
adjusted net loss, adjusted diluted loss per common share, and
consolidated adjusted EBITDA. 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®, Amco Houseworks®,
Chicago™ Metallic, Copco®, Fred® & Friends, Kitchen Craft®,
Kamenstein®, Kizmos™, La Cafetière®, MasterClass®, Misto®, Mossy
Oak®, Swing-A-Way® and Vasconia®; respected tableware and giftware
brands, including Mikasa®, Pfaltzgraff®, Creative Tops®, Empire
Silver™, Gorham®, International® Silver, Kirk Stieff®, Towle®
Silversmiths, Tuttle®, 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: |
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Lifetime
Brands, Inc. |
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Lippert/Heilshorn & Assoc. |
Laurence Winoker, Chief
Financial Officer |
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Harriet Fried, SVP |
516-203-3590
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212-838-3777 |
investor.relations@lifetimebrands.com |
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hfried@lhai.com |
LIFETIME BRANDS, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(In thousands - except per share data) |
(unaudited) |
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Three Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
|
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2017 |
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2016 |
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2017 |
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2016 |
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|
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|
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Net
sales |
$ |
117,393 |
|
|
$ |
118,050 |
|
|
$ |
230,749 |
|
|
$ |
228,975 |
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|
|
|
|
|
|
|
|
|
|
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Cost of
sales |
|
74,596 |
|
|
|
75,056 |
|
|
|
144,011 |
|
|
|
145,430 |
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Gross margin |
|
42,797 |
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|
42,994 |
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|
86,738 |
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83,545 |
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|
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Distribution expenses |
|
12,582 |
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|
12,377 |
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|
26,015 |
|
|
|
25,694 |
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Selling,
general and administrative expenses |
|
33,102 |
|
|
|
29,845 |
|
|
|
65,484 |
|
|
|
61,653 |
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|
Restructuring expenses |
|
254 |
|
|
|
1,060 |
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|
254 |
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|
|
1,701 |
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Loss from
operations |
|
(3,141 |
) |
|
|
(288 |
) |
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|
(5,015 |
) |
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|
(5,503 |
) |
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|
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|
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|
|
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Interest
expense |
|
(1,001 |
) |
|
|
(1,122 |
) |
|
|
(1,942 |
) |
|
|
(2,315 |
) |
|
Loss on early retirement of debt |
|
(110 |
) |
|
|
(272 |
) |
|
|
(110 |
) |
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|
(272 |
) |
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Loss before
income taxes and equity in earnings |
|
(4,252 |
) |
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(1,682 |
) |
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(7,067 |
) |
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(8,090 |
) |
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|
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Income tax
benefit |
|
1,698 |
|
|
|
473 |
|
|
|
2,642 |
|
|
|
2,743 |
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Equity in
earnings (losses), net of taxes |
|
458 |
|
|
|
18 |
|
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|
998 |
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(132 |
) |
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NET
LOSS |
$ |
(2,096 |
) |
|
$ |
(1,191 |
) |
|
$ |
(3,427 |
) |
|
$ |
(5,479 |
) |
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|
|
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|
|
|
|
|
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Weighted-average shares outstanding - basic |
|
14,456 |
|
|
|
14,155 |
|
|
|
14,426 |
|
|
|
14,059 |
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|
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BASIC LOSS PER COMMON
SHARE |
$ |
(0.14 |
) |
|
$ |
(0.08 |
) |
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$ |
(0.24 |
) |
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$ |
(0.39 |
) |
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Weighted-average shares outstanding - diluted |
|
14,456 |
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|
|
14,155 |
|
|
|
14,426 |
|
|
|
14,059 |
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|
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DILUTED LOSS PER COMMON
SHARE |
$ |
(0.14 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.24 |
) |
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$ |
(0.39 |
) |
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Cash dividends declared per common share |
$ |
0.0425 |
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$ |
0.0425 |
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$ |
0.085 |
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$ |
0.085 |
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LIFETIME BRANDS, INC. |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(In thousands - except share data) |
|
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June 30, |
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December 31, |
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2017 |
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2016 |
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(unaudited) |
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ASSETS |
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CURRENT ASSETS |
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Cash and cash equivalents |
$ |
4,122 |
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|
$ |
7,883 |
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|
Accounts receivable, less allowances of $4,349 at June 30, 2017
and $5,725 at December 31, 2016 |
|
67,509 |
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|
104,556 |
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Inventory |
|
167,428 |
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|
135,212 |
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Prepaid expenses and other current assets |
|
8,088 |
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8,796 |
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Income tax receivable |
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4,279 |
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- |
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TOTAL CURRENT ASSETS |
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251,426 |
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256,447 |
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PROPERTY AND EQUIPMENT, net |
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20,650 |
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21,131 |
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INVESTMENTS |
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25,170 |
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22,712 |
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INTANGIBLE ASSETS, net |
|
88,129 |
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|
89,219 |
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DEFERRED INCOME TAXES |
|
8,467 |
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|
8,459 |
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OTHER ASSETS |
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1,340 |
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|
1,886 |
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TOTAL
ASSETS |
$ |
395,182 |
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$ |
399,854 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
CURRENT LIABILITIES |
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Current maturity of Credit Agreement Term Loan |
$ |
- |
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|
$ |
9,343 |
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Short term loan |
|
121 |
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|
113 |
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Accounts payable |
|
33,977 |
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|
29,698 |
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Accrued expenses |
|
37,159 |
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|
45,212 |
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Income taxes payable |
|
- |
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|
6,920 |
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TOTAL CURRENT LIABILITIES |
|
71,257 |
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|
91,286 |
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DEFERRED RENT & OTHER LONG-TERM LIABILITIES |
|
17,610 |
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18,973 |
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DEFERRED INCOME TAXES |
|
6,161 |
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|
5,666 |
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REVOLVING CREDIT FACILITY |
|
98,974 |
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|
86,201 |
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STOCKHOLDERS’ EQUITY |
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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, 2017 and December 31, 2016; shares issued and
outstanding: 14,797,690 at June 30, 2017 and 14,555,936 at
December 31, 2016 |
|
148 |
|
|
|
146 |
|
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Paid-in capital |
|
176,488 |
|
|
|
173,600 |
|
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Retained earnings |
|
56,210 |
|
|
|
60,981 |
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Accumulated other comprehensive loss |
|
(31,666 |
) |
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|
(36,999 |
) |
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TOTAL STOCKHOLDERS’ EQUITY |
|
201,180 |
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|
197,728 |
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
395,182 |
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$ |
399,854 |
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LIFETIME BRANDS, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(In thousands) |
(unaudited) |
|
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|
|
Six Months Ended |
|
|
|
|
|
June 30, |
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|
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|
2017 |
|
|
|
2016 |
|
|
OPERATING ACTIVITIES |
|
|
|
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Net loss |
$ |
(3,427 |
) |
|
$ |
(5,479 |
) |
|
|
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
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|
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Depreciation and amortization |
|
6,634 |
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|
7,062 |
|
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|
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Amortization of financing costs |
|
282 |
|
|
|
333 |
|
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Deferred
rent |
|
(304 |
) |
|
|
(37 |
) |
|
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Deferred
income taxes |
|
- |
|
|
|
113 |
|
|
|
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Stock compensation expense |
|
1,530 |
|
|
|
1,290 |
|
|
|
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Undistributed equity in (earnings) losses, net |
|
(970 |
) |
|
|
132 |
|
|
|
|
Gain on disposal of fixed assets |
|
- |
|
|
|
(17 |
) |
|
|
|
Loss on early retirement of debt |
|
110 |
|
|
|
272 |
|
|
|
Changes in operating assets and liabilities (excluding the
effects of business acquisitions) |
|
|
|
|
|
|
Accounts receivable |
|
37,950 |
|
|
|
7,562 |
|
|
|
|
Inventory |
|
(30,769 |
) |
|
|
(16,357 |
) |
|
|
|
Prepaid expenses, other current assets and other assets |
|
1,107 |
|
|
|
(1,359 |
) |
|
|
|
Accounts payable, accrued expenses and other liabilities |
|
(5,291 |
) |
|
|
(3,748 |
) |
|
|
|
Income taxes receivable |
|
(4,279 |
) |
|
|
(4,311 |
) |
|
|
|
Income taxes payable |
|
(6,858 |
) |
|
|
(5,031 |
) |
|
|
|
|
NET CASH USED IN OPERATING
ACTIVITIES |
|
(4,285 |
) |
|
|
(19,575 |
) |
|
|
|
|
|
|
|
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INVESTING ACTIVITIES |
|
|
|
|
|
Purchases of property and equipment |
|
(2,710 |
) |
|
|
(1,091 |
) |
|
|
Proceeds from disposition of GSI |
|
- |
|
|
|
567 |
|
|
|
Acquisitions |
|
- |
|
|
|
(614 |
) |
|
|
|
|
NET CASH USED
IN INVESTING ACTIVITIES |
|
(2,710 |
) |
|
|
(1,138 |
) |
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|
|
Proceeds from Revolving Credit Facility |
|
123,534 |
|
|
|
120,334 |
|
|
|
Repayments of Revolving Credit Facility |
|
(110,937 |
) |
|
|
(79,206 |
) |
|
|
Repayment of Credit Agreement Term Loan |
|
(9,500 |
) |
|
|
(20,500 |
) |
|
|
Proceeds from Short Term Loan |
|
119 |
|
|
|
- |
|
|
|
Payments on Short Term Loan |
|
(114 |
) |
|
|
(117 |
) |
|
|
Payment of financing costs |
|
(30 |
) |
|
|
- |
|
|
|
Payment for capital leases |
|
(49 |
) |
|
|
(32 |
) |
|
|
Payments of tax withholding for stock based compensation |
|
(176 |
) |
|
|
(65 |
) |
|
|
Proceeds from exercise of stock options |
|
1,425 |
|
|
|
1,191 |
|
|
|
Cash dividends paid |
|
(1,235 |
) |
|
|
(1,198 |
) |
|
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NET CASH PROVIDED BY FINANCING
ACTIVITIES |
|
3,037 |
|
|
|
20,407 |
|
|
|
|
|
|
|
|
|
|
Effect of foreign exchange on cash |
|
197 |
|
|
|
(176 |
) |
|
|
|
|
|
|
|
|
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DECREASE IN CASH AND CASH EQUIVALENTS |
|
(3,761 |
) |
|
|
(482 |
) |
|
Cash and cash equivalents at beginning of period |
|
7,883 |
|
|
|
7,131 |
|
|
CASH AND CASH EQUIVALENTS AT END OF
PERIOD |
$ |
4,122 |
|
|
$ |
6,649 |
|
|
|
|
|
|
|
|
|
|
LIFETIME BRANDS, INC. |
Supplemental Information |
(In thousands) |
|
|
|
Consolidated adjusted EBITDA for the Four
Quarters Ended June 30, 2017 |
Three months ended June 30, 2017 |
$ |
1,361 |
Three months ended March 31, 2017 |
|
2,251 |
Three months ended December 31, 2016 |
|
25,100 |
Three months ended September 30, 2016 |
|
16,652 |
|
Total
for the four quarters |
$ |
45,364 |
|
|
|
|
|
Consolidated adjusted 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 |
|
|
|
Reconciliation of GAAP to Non-GAAP Operating
Results |
|
Consolidated adjusted EBITDA: |
|
|
|
Three Months Ended |
|
|
|
|
June 30,
2017 |
|
March 31, 2017 |
|
December 31,
2016 |
|
September 30,
2016 |
|
Net income (loss) as reported |
$ |
(2,096 |
) |
|
$ |
(1,331 |
) |
|
$ |
14,747 |
|
|
$ |
6,452 |
|
|
Subtract out: |
|
|
|
|
|
|
|
|
|
|
Undistributed equity in
(earnings) losses, net |
|
(430 |
) |
|
|
(540 |
) |
|
|
(814 |
) |
|
|
138 |
|
|
Add back: |
|
|
|
|
|
|
|
|
|
|
Income tax provision
(benefit) |
|
(1,698 |
) |
|
|
(944 |
) |
|
|
6,812 |
|
|
|
2,961 |
|
|
|
Interest expense |
|
1,001 |
|
|
|
941 |
|
|
|
1,257 |
|
|
|
1,231 |
|
|
|
Loss on early
retirement of debt |
|
110 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
Depreciation and
amortization |
|
3,348 |
|
|
|
3,286 |
|
|
|
2,404 |
|
|
|
4,682 |
|
|
|
Stock compensation
expense |
|
726 |
|
|
|
804 |
|
|
|
827 |
|
|
|
825 |
|
|
|
Permitted acquisition
related expenses, net of acquisitions not completed |
|
(9 |
) |
|
|
35 |
|
|
|
(852 |
) |
|
|
363 |
|
|
|
Restructuring
expenses |
|
254 |
|
|
|
- |
|
|
|
719 |
|
|
|
- |
|
|
|
Severance expense |
|
155 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Consolidated adjusted EBITDA |
$ |
1,361 |
|
|
$ |
2,251 |
|
|
$ |
25,100 |
|
|
$ |
16,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Operating
Results (continued) |
|
Consolidated adjusted 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 |
|
369 |
|
|
|
555 |
|
|
|
3 |
|
|
|
26 |
|
|
|
Restructuring
expenses |
|
1,060 |
|
|
|
641 |
|
|
|
437 |
|
|
|
- |
|
Consolidated adjusted EBITDA |
$ |
5,206 |
|
|
$ |
268 |
|
|
$ |
23,889 |
|
|
$ |
14,089 |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated adjusted 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, contingent consideration, certain
acquisition related expenses, restructuring expenses and
non-restructuring severance expense, as shown in the tables
above.
Reconciliation of GAAP to Non-GAAP Operating
Results (continued) |
|
Adjusted net loss and adjusted diluted loss per common
share: |
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss as
reported |
$ |
(2,096 |
) |
|
$ |
(1,191 |
) |
|
|
(3,427 |
) |
|
$ |
(5,479 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Acquisition related
expenses (adjustments), net |
|
(9 |
) |
|
|
369 |
|
|
|
26 |
|
|
|
924 |
|
|
|
Loss on early
retirement of debt |
|
110 |
|
|
|
272 |
|
|
|
110 |
|
|
|
272 |
|
|
|
Restructuring
expenses |
|
254 |
|
|
|
1,060 |
|
|
|
254 |
|
|
|
1,701 |
|
|
|
Severance expenses |
|
69 |
|
|
|
- |
|
|
|
155 |
|
|
|
- |
|
|
|
Unrealized loss (gain)
on foreign currency contracts |
|
1,456 |
|
|
|
(212 |
) |
|
|
1,751 |
|
|
|
(411 |
) |
|
|
Deferred tax for
foreign currency translation for Grupo Vasconia |
|
(140 |
) |
|
|
261 |
|
|
|
(365 |
) |
|
|
455 |
|
|
|
Income tax effect on
adjustments |
|
(397 |
) |
|
|
(639 |
) |
|
|
(502 |
) |
|
|
(1,077 |
) |
|
Adjusted
net loss |
$ |
(753 |
) |
|
$ |
(80 |
) |
|
$ |
(1,998 |
) |
|
$ |
(3,615 |
) |
|
Adjusted
diluted loss per common share |
$ |
(0.05 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.26 |
) |
|
|
|
|
|
|
|
|
|
|
|
Adjusted net loss in the three and six months ended June 30,
2017 excludes acquisition related expenses, loss on early
retirement of debt, restructuring expenses, non-restructuring
severance expense, the unrealized loss on foreign currency
contracts and deferred tax benefit related to our equity earnings
of Vasconia due to recording the tax benefit of cumulative
translation gains through other comprehensive income (loss).
Adjusted loss in the three and six months ended June 30, 2016
excludes acquisition related expenses, loss on early retirement of
debt, restructuring expenses, unrealized gain on foreign currency
contracts 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 (loss).
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 |
|
2017 |
|
|
2016 |
|
Increase (Decrease) |
|
|
2017 |
|
|
2016 |
|
Increase (Decrease) |
|
Currency Impact |
|
Excluding Currency |
|
|
Including Currency |
|
|
Currency Impact |
|
|
U.S. Wholesale |
$ |
94,770 |
|
$ |
92,738 |
|
$ |
2,032 |
|
|
$ |
94,770 |
|
$ |
92,725 |
|
$ |
2,045 |
|
|
$ |
(13 |
) |
|
2.2 |
|
% |
|
2.2 |
|
% |
|
- |
|
% |
|
International |
|
19,365 |
|
|
21,560 |
|
|
(2,195 |
) |
|
|
19,365 |
|
|
19,217 |
|
|
148 |
|
|
|
(2,343 |
) |
|
0.8 |
|
% |
|
(10.2 |
) |
% |
|
(11.0 |
) |
% |
|
Retail Direct |
|
3,258 |
|
|
3,752 |
|
|
(494 |
) |
|
|
3,258 |
|
|
3,752 |
|
|
(494 |
) |
|
|
- |
|
|
(13.2 |
) |
% |
|
(13.2 |
) |
% |
|
- |
|
% |
|
Total net
sales |
$ |
117,393 |
|
$ |
118,050 |
|
$ |
(657 |
) |
|
$ |
117,393 |
|
$ |
115,694 |
|
$ |
1,699 |
|
|
$ |
(2,356 |
) |
|
1.5 |
|
% |
|
(0.6 |
) |
% |
|
(2.0 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported |
|
Constant Currency
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended |
|
Six Months
Ended |
|
|
|
Year-Over-Year |
|
|
June 30, |
|
June 30, |
|
|
|
Increase (Decrease) |
|
Net
sales |
|
2017 |
|
|
2016 |
|
Increase (Decrease) |
|
|
2017 |
|
|
2016 |
|
Increase (Decrease) |
|
Currency Impact |
|
Excluding Currency |
|
|
Including Currency |
|
|
Currency Impact |
|
|
U.S. Wholesale |
$ |
182,162 |
|
$ |
175,006 |
|
$ |
7,156 |
|
|
$ |
182,162 |
|
$ |
175,012 |
|
$ |
7,150 |
|
|
$ |
6 |
|
|
4.1 |
|
% |
|
4.1 |
|
% |
|
0.0 |
|
% |
|
International |
|
40,593 |
|
|
45,233 |
|
|
(4,640 |
) |
|
|
40,593 |
|
|
39,729 |
|
|
864 |
|
|
|
(5,504 |
) |
|
2.2 |
|
% |
|
(10.3 |
) |
% |
|
(12.4 |
) |
% |
|
Retail Direct |
|
7,994 |
|
|
8,736 |
|
|
(742 |
) |
|
|
7,994 |
|
|
8,736 |
|
|
(742 |
) |
|
|
- |
|
|
(8.5 |
) |
% |
|
(8.5 |
) |
% |
|
- |
|
% |
|
Total net
sales |
$ |
230,749 |
|
$ |
228,975 |
|
$ |
1,774 |
|
|
$ |
230,749 |
|
$ |
223,477 |
|
$ |
7,272 |
|
|
$ |
(5,498 |
) |
|
3.3 |
|
% |
|
0.8 |
|
% |
|
(2.5 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Constant Currency" is determined by applying the 2017
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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