Lifetime Brands, Inc. (NasdaqGS: LCUT), a leading global designer,
developer and marketer of a broad range of branded consumer
products used in the home, today reported its financial results for
the quarter ended June 30, 2022.
Rob Kay, Lifetime’s Chief Executive Officer, commented, “Our
performance in the second quarter, while remaining strong compared
to pre-pandemic levels, was impacted by the macroeconomic
challenges that companies across industries and retailers in
particular continue to face. Inflation and supply chain
disruptions, have created inventory buildup in the retail channel
and weaker end market demand as these impacts created a slowdown in
durable good purchases from consumers and all channels of retail
this quarter. Despite this environment, we were pleased to record
results that exceeded pre-pandemic levels, which is a testament to
the progress the Company has made executing on our strategy. We
believe we have positioned Lifetime to navigate these headwinds and
we have taken a number of mitigating actions, including
implementing pricing adjustments where possible and reducing our
SG&A over the course of 2022. Our business model has proven
resilient through all market cycles, and we are confident that we
are on the right path.”
Mr. Kay continued, “In light of the current environment and our
results in the second quarter, we are revising our outlook for the
full year 2022. We now expect our net sales to be in the range of
$800 million to $850 million and our Adjusted EBITDA to be in the
range of $73 million and $79 million. Looking ahead, we will
continue to be proactive and nimble in managing through this
environment, and we are focused on maintaining a healthy balance
sheet and strong cash flows to maximize our operating
flexibility.”
Second Quarter Financial Highlights:
Consolidated net sales for the three months ended June 30,
2022 were $151.3 million, representing a decrease of $35.3 million,
or 18.9%, as compared to net sales of $186.6 million for the
corresponding period in 2021. In constant currency, a non-GAAP
financial measure, consolidated net sales decreased by $33.6
million, or 18.2%, as compared to consolidated net sales in the
corresponding period in 2021. A table reconciling this non-GAAP
financial measure to consolidated net sales, as reported, is
included below.
Gross margin for the three months ended June 30, 2022 was
$55.2 million, or 36.5%, as compared to $66.2 million, or 35.4%,
for the corresponding period in 2021.
Loss from operations was $(0.5) million, as compared to income
from operations of $11.0 million for the corresponding period in
2021.
Net loss was $(3.5) million, or $(0.16) per diluted share, as
compared to net income of $5.8 million, or $0.26 per diluted share,
in the corresponding period in 2021.
Adjusted net loss was $(2.9) million, or $(0.14) per diluted
share, as compared to adjusted net income of $6.1 million, or $0.28
per diluted share, in the corresponding period in 2021. A table
reconciling this non-GAAP financial measure to net (loss) income,
as reported, is included below.
Six Months Financial Highlights:
Consolidated net sales for the six months ended June 30,
2022 were $334.0 million, a decrease of $48.3 million, or 12.6%, as
compared to net sales of $382.3 million for the corresponding
period in 2021. In constant currency, a non-GAAP financial measure,
which excludes the impact of foreign exchange fluctuations and was
determined by applying 2022 average rates to 2021 local currency
amounts, consolidated net sales decreased by $46.3 million, or
12.2%, as compared to consolidated net sales in the corresponding
period in 2021.
Gross margin for the six months ended June 30, 2022 was
$118.2 million, or 35.4%, as compared to $132.2 million, or 34.6%,
for the corresponding period in 2021.
Income from operations was $3.9 million, as compared to $20.2
million for the corresponding period in 2021.
Net loss was $(3.1) million, or $(0.14) per diluted share, as
compared to net income of $8.9 million, or $0.40 per diluted share,
in the corresponding period in 2021.
Adjusted net loss was $(1.5) million, or $(0.07) per diluted
share, as compared to adjusted net income of $8.9 million, or $0.41
per diluted share, in the corresponding period in 2021. A table
reconciling this non-GAAP financial measure to net (loss) income,
as reported, is included below.
Adjusted EBITDA was $79.9 million for the twelve months ended
June 30, 2022. Pro forma adjusted EBITDA was $83.4 million for
the twelve months ended June 30, 2022. Adjusted EBITDA is a
non-GAAP financial measure which is defined in the Company’s debt
agreements. A table reconciling this non-GAAP financial measure to
net income, as reported, is included below.
Full Year 2022 Guidance Update
For the full fiscal year ending December 31, 2022, the
Company is providing revised financial guidance:
|
Year Ended December 31, 2021 |
|
Guidance for the Year Ending December 31, 2022 |
Net sales |
$862.9 million |
|
$800 to $850 million |
Income from operations |
$50.8 million |
|
$44 to $50 million |
Adjusted income from
operations |
$66.7 million(1) |
|
$49 to $55 million |
Net income |
$20.8 million |
|
$20 to $24 million |
Adjusted net income |
$36.8 million |
|
$22 to $26 million |
Diluted
income per common share |
$0.94 per share |
|
$0.91 to $1.09 per share |
Adjusted diluted income per common share |
$1.67 per share |
|
$1.00 to $1.19 per share |
Weighted-average diluted shares |
22 million |
|
22 million |
Adjusted EBITDA |
$95.1 million |
|
$73 to $79 million |
This guidance is based on a forecasted GBP to USD rate of $1.21.
Net income and diluted income per common share were calculated
based on an effective tax rate of 30%. Guidance includes S'well
from March 2, 2022, the date of its acquisition. Tables reconciling
non-GAAP financial measures to GAAP financial measures, as
reported, are included below.
(1) Adjusted income from operations for the year ended December
31, 2021 has been recast to reflect adjustments for charges related
to acquisition expenses and warehouse relocation expenses. A table
reconciling this non-GAAP financial measure to income
from operations, as reported, is included below.
Dividend
On August 2, 2022, the Board of Directors declared a
quarterly dividend of $0.0425 per share payable on
November 15, 2022 to stockholders of record on
November 1, 2022.
Conference CallThe Company has scheduled a
conference call for Thursday, August 4, 2022 at 11:00 a.m. The
dial-in number for the conference call is (866) 682-6100 (U.S.) or
(404) 267-0373 (International).
A live webcast of the conference call will be accessible
through:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=f9TCNbsQ
For those who cannot listen to the live broadcast, an audio
replay of the webcast will be available until February 4, 2023.
Non-GAAP Financial Measures
This earnings release contains non-GAAP financial
measures, including consolidated net sales in constant currency,
adjusted (loss) income from operations, adjusted net (loss) income,
adjusted diluted (loss) income per common share, adjusted EBITDA
and pro forma 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 a 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. These non-GAAP financial measures are
provided because the Company's management 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 period-to-period comparison
of the Company’s operating performance by investors and analysts.
Management uses these non-GAAP financial measures as
indicators of business
performance. These non-GAAP financial measures
should be viewed as a supplement to, and not a substitute for, GAAP
financial measures of performance. As required by SEC rules, the
Company has provided reconciliations of
the non-GAAP financial measures to the most directly
comparable GAAP financial measures.
Forward-Looking Statements
In this press release, the use of the words “believe,” “could,”
“expect,” “intend,” “maintain,” “may,” “positioned,” “project,”
“projected,” “should,” “will,” “would”, “plan”, “goal”, “target” or
similar expressions is intended to identify forward-looking
statements. Such statements include all statements regarding the
growth of the Company, our financial guidance, our ability to
navigate the current environment and advance our strategy, our
commitment to increasing investments in future growth initiatives,
our initiatives to create value, our efforts to mitigate
geopolitical factors and tariffs, our current and projected
financial and operating performance, results, and profitability and
all guidance related thereto, including forecasted exchange rates
and effective tax rates, as well as our continued growth and
success, future plans and intentions regarding the Company and its
consolidated subsidiaries. Such statements represent the Company’s
current judgments, estimates, and assumptions about possible future
events. The Company believes these judgments, estimates, and
assumptions are reasonable, but these statements are not guarantees
of any events or financial or operational 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, as well as to deleverage
its balance sheet; the possibility of impairments to the Company’s
goodwill; the possibility of impairments to the Company’s
intangible assets; changes in U.S. or foreign trade or tax law and
policy; changes in general economic conditions that could affect
customer purchasing practices or consumer spending; the impact of
changes in general economic conditions on the Company’s customers;
customer ordering behavior; the performance of our newer products;
expenses and other challenges relating to the integration of any
future acquisitions; changes in demand for the Company’s products;
changes in the Company’s management team; the significant influence
of the Company’s largest stockholder; fluctuations in foreign
exchange rates; changes in U.S. trade policy or the trade policies
of nations in which we or our suppliers do business; uncertainty
regarding the long-term ramifications of the U.K.’s exit from the
European Union; shortages of and price volatility for certain
commodities; global health epidemics, such as the COVID-19
pandemic; social unrest, including related protests and
disturbances; conflict or war, including the conflict in Ukraine;
macroeconomic conditions, including inflationary impacts and
disruptions to the global supply chain; increase in supply chain
costs; the imposition of tariffs and other trade policies and/or
economic sanctions implemented by the U.S. and other governments;
our ability to successfully integrate acquired businesses,
including our recent acquisition of S'well; our ability to achieve
projected synergies with respect to the S'well business; our
expectations regarding the future level of demand for our products;
our ability to execute on the goals and strategies set forth in our
five-year plan; and 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
ability to maintain an appropriate level of debt. The Company
undertakes no obligation to update these forward-looking statements
other than as required by law.
Lifetime Brands, Inc.
Lifetime Brands is a leading global designer, developer and
marketer of a broad range of branded consumer products used in the
home. The Company markets its products under well-known kitchenware
brands, including Farberware®, KitchenAid®, Sabatier®, Amco
Houseworks®, Chef’n® Chicago™ Metallic, Copco®, Fred® &
Friends, Houdini™, KitchenCraft®, Kamenstein®, La Cafetière®,
MasterClass®, Misto®, Swing-A-Way®, Taylor® Kitchen, and Rabbit®;
respected tableware and giftware brands, including Mikasa®,
Pfaltzgraff®, Fitz and Floyd®, Empire Silver™, Gorham®,
International® Silver, Towle® Silversmiths, Wallace®, Wilton
Armetale®, V&A®, Royal Botanic Gardens Kew® and Year &
Day®; and valued home solutions brands, including BUILT NY®,
S’well®, Taylor® Bath, Taylor® Kitchen, Taylor® Weather and Planet
Box®. 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.Laurence Winoker, Chief
Financial
Officer516-203-3590investor.relations@lifetimebrands.com
or
Joele Frank, Wilkinson Brimmer KatcherEd
Trissel / Andrew Squire / Rose Temple212-355-4449
LIFETIME BRANDS,
INC.Historical Financial Data(in
thousands)(unaudited)
|
Three Months Ended June 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2019 |
|
Net
Sales |
$ |
151,314 |
|
|
$ |
186,636 |
|
|
$ |
150,140 |
|
|
$ |
142,536 |
|
(Loss) income from
operations |
$ |
(464 |
) |
|
$ |
11,001 |
|
|
$ |
4,296 |
|
|
$ |
(12,545 |
) |
Acquisition related expenses |
|
75 |
|
|
|
72 |
|
|
|
55 |
|
|
|
— |
|
Restructuring expenses |
|
— |
|
|
|
— |
|
|
|
253 |
|
|
|
173 |
|
Integration costs |
|
864 |
|
|
|
— |
|
|
|
— |
|
|
|
695 |
|
Warehouse relocation and redesign expenses |
|
73 |
|
|
|
— |
|
|
|
303 |
|
|
|
— |
|
SKU Rationalization |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,500 |
|
Adjusted income (loss)
from operations (1) |
$ |
548 |
|
|
$ |
11,073 |
|
|
$ |
4,907 |
|
|
$ |
(3,177 |
) |
Net (loss)
income |
$ |
(3,460 |
) |
|
$ |
5,789 |
|
|
$ |
(3,977 |
) |
|
$ |
(11,513 |
) |
(1) Adjusted income (loss) from operations represents a non-GAAP
financial measure. This non-GAAP financial measure is provided
because the Company uses it in evaluating its financial results and
trends and as an indicator of business performance.
|
Six Months Ended June 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2019 |
|
Net
Sales |
$ |
334,031 |
|
|
$ |
382,289 |
|
|
$ |
295,210 |
|
|
$ |
292,462 |
|
Income (loss) from
operations |
$ |
3,891 |
|
|
$ |
20,247 |
|
|
$ |
(20,949 |
) |
|
$ |
(14,832 |
) |
Goodwill and intangible asset impairments |
|
— |
|
|
|
— |
|
|
|
20,100 |
|
|
|
— |
|
Acquisition related expenses |
|
1,194 |
|
|
|
254 |
|
|
|
102 |
|
|
|
151 |
|
Restructuring expenses |
|
— |
|
|
|
— |
|
|
|
253 |
|
|
|
781 |
|
Integration costs |
|
1,645 |
|
|
|
— |
|
|
|
— |
|
|
|
869 |
|
Warehouse relocation and redesign expenses |
|
570 |
|
|
|
— |
|
|
|
1,093 |
|
|
|
215 |
|
Bad debt reserve related to COVID-19 pandemic(1) |
|
— |
|
|
|
— |
|
|
|
2,844 |
|
|
|
— |
|
SKU Rationalization |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,500 |
|
Adjusted income (loss)
from operations (2) |
$ |
7,300 |
|
|
$ |
20,501 |
|
|
$ |
3,443 |
|
|
$ |
(4,316 |
) |
Net (loss)
income |
$ |
(3,080 |
) |
|
$ |
8,856 |
|
|
$ |
(32,141 |
) |
|
$ |
(16,380 |
) |
(1) Bad debt reserve recorded in the six months ended 2020 to
establish a provision against potential credit problems from
certain retail customers who may have financial difficulty that has
been caused or increased due to the COVID-19 pandemic. This
reflects the Company's assessment of risk of not being able to
collect such receivables from certain customers in the U.S. that
are at risk of seeking or have already obtained bankruptcy
protection and our international customer base which has a higher
proportion of small and independent brick-and-mortar retailers.
This charge was taken in response to the Company's assessment on
the impact of the COVID-19 pandemic on these accounts
(2) Adjusted income (loss) from operations represents a non-GAAP
financial measure. This non-GAAP financial measure is provided
because the Company uses it in evaluating its financial results and
trends and as an indicator of business performance.
LIFETIME BRANDS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(in thousands—except per share
data)(unaudited)
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net sales |
$ |
151,314 |
|
|
$ |
186,636 |
|
|
$ |
334,031 |
|
|
$ |
382,289 |
|
Cost of sales |
|
96,147 |
|
|
|
120,475 |
|
|
|
215,796 |
|
|
|
250,128 |
|
Gross margin |
|
55,167 |
|
|
|
66,161 |
|
|
|
118,235 |
|
|
|
132,161 |
|
Distribution expenses |
|
17,373 |
|
|
|
18,931 |
|
|
|
36,598 |
|
|
|
37,577 |
|
Selling, general and
administrative expenses |
|
38,258 |
|
|
|
36,229 |
|
|
|
77,746 |
|
|
|
74,337 |
|
(Loss) income from
operations |
|
(464 |
) |
|
|
11,001 |
|
|
|
3,891 |
|
|
|
20,247 |
|
Interest expense |
|
(3,732 |
) |
|
|
(3,819 |
) |
|
|
(7,499 |
) |
|
|
(7,833 |
) |
Mark to market gain on
interest rate derivatives |
|
304 |
|
|
|
46 |
|
|
|
1,353 |
|
|
|
544 |
|
(Loss) income before income
taxes and equity in earnings |
|
(3,892 |
) |
|
|
7,228 |
|
|
|
(2,255 |
) |
|
|
12,958 |
|
Income tax benefit
(provision) |
|
98 |
|
|
|
(1,832 |
) |
|
|
(1,575 |
) |
|
|
(4,248 |
) |
Equity in earnings, net of
taxes |
|
334 |
|
|
|
393 |
|
|
|
750 |
|
|
|
146 |
|
NET (LOSS)
INCOME |
$ |
(3,460 |
) |
|
$ |
5,789 |
|
|
$ |
(3,080 |
) |
|
$ |
8,856 |
|
BASIC (LOSS) INCOME
PER COMMON SHARE |
$ |
(0.16 |
) |
|
$ |
0.27 |
|
|
$ |
(0.14 |
) |
|
$ |
0.42 |
|
DILUTED (LOSS) INCOME
PER COMMON SHARE |
$ |
(0.16 |
) |
|
$ |
0.26 |
|
|
$ |
(0.14 |
) |
|
$ |
0.40 |
|
LIFETIME BRANDS,
INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(in thousands—except share data)
|
June 30,2022 |
|
December 31,2021 |
|
(unaudited) |
|
|
ASSETS |
|
|
|
CURRENT ASSETS |
|
|
|
Cash and cash equivalents |
$ |
7,197 |
|
|
$ |
27,982 |
|
Accounts receivable, less allowances of $13,876 at June 30,
2022 and $16,544 at December 31, 2021 |
|
106,164 |
|
|
|
175,076 |
|
Inventory |
|
295,139 |
|
|
|
270,516 |
|
Prepaid expenses and other current assets |
|
14,934 |
|
|
|
11,499 |
|
Income taxes receivable |
|
3,729 |
|
|
|
— |
|
TOTAL CURRENT ASSETS |
|
427,163 |
|
|
|
485,073 |
|
PROPERTY AND EQUIPMENT,
net |
|
18,740 |
|
|
|
20,748 |
|
OPERATING LEASE RIGHT-OF-USE
ASSETS |
|
81,100 |
|
|
|
86,487 |
|
INVESTMENTS |
|
22,098 |
|
|
|
22,295 |
|
INTANGIBLE ASSETS, net |
|
221,306 |
|
|
|
212,678 |
|
OTHER ASSETS |
|
2,281 |
|
|
|
1,793 |
|
TOTAL ASSETS |
$ |
772,688 |
|
|
$ |
829,074 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
CURRENT LIABILITIES |
|
|
|
Current maturity of term loan |
$ |
4,581 |
|
|
$ |
5,771 |
|
Current maturity of revolving credit facility |
|
20,347 |
|
|
|
— |
|
Short-term loan |
|
30 |
|
|
|
— |
|
Accounts payable |
|
61,848 |
|
|
|
82,573 |
|
Accrued expenses |
|
79,514 |
|
|
|
112,741 |
|
Income taxes payable |
|
— |
|
|
|
604 |
|
Current portion of operating lease liabilities |
|
13,874 |
|
|
|
12,612 |
|
TOTAL CURRENT LIABILITIES |
|
180,194 |
|
|
|
214,301 |
|
OTHER LONG-TERM LIABILITIES |
|
11,633 |
|
|
|
12,116 |
|
INCOME TAXES PAYABLE, LONG-TERM |
|
1,472 |
|
|
|
1,472 |
|
OPERATING LEASE LIABILITIES |
|
83,401 |
|
|
|
90,824 |
|
DEFERRED INCOME TAXES |
|
13,056 |
|
|
|
12,842 |
|
TERM LOAN |
|
237,564 |
|
|
|
241,873 |
|
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, $0.01 par value, shares authorized: 50,000,000 at
June 30, 2022 and December 31, 2021; shares issued and
outstanding: 22,058,883 at June 30, 2022 and 22,018,016 at
December 31, 2021 |
|
221 |
|
|
|
220 |
|
Paid-in capital |
|
273,279 |
|
|
|
271,556 |
|
Retained earnings |
|
8,224 |
|
|
|
17,419 |
|
Accumulated other comprehensive loss |
|
(36,356 |
) |
|
|
(33,549 |
) |
TOTAL STOCKHOLDERS’ EQUITY |
|
245,368 |
|
|
|
255,646 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
772,688 |
|
|
$ |
829,074 |
|
LIFETIME BRANDS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(in thousands)(unaudited)
|
Six Months EndedJune 30, |
|
|
2022 |
|
|
|
2021 |
|
OPERATING
ACTIVITIES |
|
|
|
Net (loss) income |
$ |
(3,080 |
) |
|
$ |
8,856 |
|
Adjustments to reconcile net (loss) income to net cash (used in)
provided by operating activities: |
|
|
|
Depreciation and amortization |
|
9,937 |
|
|
|
11,723 |
|
Amortization of financing costs |
|
843 |
|
|
|
876 |
|
Mark to market (gain) on interest rate derivatives |
|
(1,353 |
) |
|
|
(544 |
) |
Non-cash lease expense |
|
(690 |
) |
|
|
(768 |
) |
Recovery for doubtful accounts |
|
(258 |
) |
|
|
(146 |
) |
Stock compensation expense |
|
2,539 |
|
|
|
2,772 |
|
Undistributed (earnings) from equity investment, net of taxes |
|
(750 |
) |
|
|
(146 |
) |
Changes in operating assets and liabilities (excluding the effects
of business acquisitions) |
|
|
|
Accounts receivable |
|
69,500 |
|
|
|
49,943 |
|
Inventory |
|
(25,325 |
) |
|
|
(14,305 |
) |
Prepaid expenses, other current assets and other assets |
|
(816 |
) |
|
|
2,931 |
|
Accounts payable, accrued expenses and other liabilities |
|
(55,117 |
) |
|
|
(12,516 |
) |
Income taxes receivable |
|
(3,729 |
) |
|
|
(1,750 |
) |
Income taxes payable |
|
(558 |
) |
|
|
(4,795 |
) |
NET CASH (USED IN) PROVIDED BY OPERATING
ACTIVITIES |
|
(8,857 |
) |
|
|
42,131 |
|
INVESTING
ACTIVITIES |
|
|
|
Purchases of property and equipment |
|
(1,479 |
) |
|
|
(2,497 |
) |
Acquisitions |
|
(17,956 |
) |
|
|
(178 |
) |
NET CASH USED IN INVESTING ACTIVITIES |
|
(19,435 |
) |
|
|
(2,675 |
) |
FINANCING
ACTIVITIES |
|
|
|
Proceeds from revolving credit facility |
|
157,751 |
|
|
|
10,845 |
|
Repayments of revolving credit facility |
|
(136,970 |
) |
|
|
(38,131 |
) |
Repayments of term loan |
|
(6,216 |
) |
|
|
(10,478 |
) |
Proceeds from short-term loan |
|
30 |
|
|
|
31 |
|
Repayments of short-term loan |
|
— |
|
|
|
(31 |
) |
Payments for finance lease obligations |
|
(17 |
) |
|
|
(43 |
) |
Payments of tax withholding for stock based compensation |
|
(938 |
) |
|
|
(3,185 |
) |
Proceeds from the exercise of stock options |
|
233 |
|
|
|
735 |
|
Payments for stock repurchase |
|
(4,199 |
) |
|
|
— |
|
Cash dividends paid |
|
(1,929 |
) |
|
|
(1,957 |
) |
NET CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES |
|
7,745 |
|
|
|
(42,214 |
) |
Effect of foreign exchange on
cash |
|
(238 |
) |
|
|
140 |
|
DECREASE IN CASH AND
CASH EQUIVALENTS |
|
(20,785 |
) |
|
|
(2,618 |
) |
Cash and cash equivalents at
beginning of period |
|
27,982 |
|
|
|
35,963 |
|
CASH AND CASH
EQUIVALENTS AT END OF PERIOD |
$ |
7,197 |
|
|
$ |
33,345 |
|
LIFETIME BRANDS,
INC.Supplemental Information(in
thousands)
Reconciliation of GAAP
to Non-GAAP Operating Results
Adjusted EBITDA for the twelve months ended
June 30, 2022:
|
Quarter Ended |
|
Twelve Months Ended June 30, 2022 |
|
September 30, 2021 |
|
December 31,2021 |
|
March 31,2022 |
|
June 30,2022 |
|
|
(in thousands) |
Net income (loss) as reported |
$ |
12,571 |
|
|
$ |
(626 |
) |
|
$ |
380 |
|
|
$ |
(3,460 |
) |
|
$ |
8,865 |
|
Undistributed equity (earnings), net |
|
(195 |
) |
|
|
(466 |
) |
|
|
(416 |
) |
|
|
(334 |
) |
|
|
(1,411 |
) |
Income tax provision (benefit) |
|
5,589 |
|
|
|
6,704 |
|
|
|
1,673 |
|
|
|
(98 |
) |
|
|
13,868 |
|
Interest expense |
|
3,835 |
|
|
|
3,856 |
|
|
|
3,767 |
|
|
|
3,732 |
|
|
|
15,190 |
|
Mark to market (gain) on interest rate derivatives |
|
(120 |
) |
|
|
(398 |
) |
|
|
(1,049 |
) |
|
|
(304 |
) |
|
|
(1,871 |
) |
Depreciation and amortization |
|
5,837 |
|
|
|
4,960 |
|
|
|
4,899 |
|
|
|
5,038 |
|
|
|
20,734 |
|
Intangible asset impairments |
|
— |
|
|
|
14,760 |
|
|
|
— |
|
|
|
— |
|
|
|
14,760 |
|
Stock compensation expense |
|
1,201 |
|
|
|
1,244 |
|
|
|
1,174 |
|
|
|
1,365 |
|
|
|
4,984 |
|
Acquisition related expenses |
|
41 |
|
|
|
378 |
|
|
|
1,119 |
|
|
|
75 |
|
|
|
1,613 |
|
Warehouse relocation and redesign expenses(1) |
|
— |
|
|
|
450 |
|
|
|
497 |
|
|
|
73 |
|
|
|
1,020 |
|
S'well integration costs(2) |
|
— |
|
|
|
— |
|
|
|
781 |
|
|
|
864 |
|
|
|
1,645 |
|
Wallace facility remedial design expense |
|
500 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
500 |
|
Adjusted EBITDA(3) |
$ |
29,259 |
|
|
$ |
30,862 |
|
|
$ |
12,825 |
|
|
$ |
6,951 |
|
|
$ |
79,897 |
|
Pro forma historical S'well and projected synergies
adjustment(4) |
|
|
|
|
|
|
|
|
|
3,500 |
|
Pro forma Adjusted
EBITDA(3) |
$ |
29,259 |
|
|
$ |
30,862 |
|
|
$ |
12,825 |
|
|
$ |
6,951 |
|
|
$ |
83,397 |
|
(1) For the twelve months ended June 30, 2022, the warehouse
relocation and redesign expenses included $0.5 million of
expenses related to the International segment and $0.5 million
of expenses related to the U.S. segment. For the three months ended
June 30, 2022, warehouse relocation and redesign expenses included
$0.1 million of expenses related to the U.S. segment.
(2) For the three months ended June 30, 2022, S'well integration
costs included $0.2 million of expenses related to inventory
step up adjustment in connection with S'well acquisition.
(3) Adjusted EBITDA is a non-GAAP financial measure that is
defined in the Company’s debt agreements. Adjusted EBITDA is
defined as net income (loss), adjusted to exclude undistributed
equity in (earnings), income tax provision (benefit), interest
expense, mark to market (gain) on interest rate derivatives,
depreciation and amortization, intangible asset impairments, stock
compensation expense, and other items detailed in the table above
that are consistent with exclusions permitted by our debt
agreements.
(4) Pro forma historical S'well and projected synergies
adjustment represents a permitted adjustment to the Company’s
adjusted EBITDA for the acquisition of S'well on March 2, 2022
pursuant to the Company’s Debt Agreements. Pro forma projected
synergies represents the amount of projected cost savings,
operating expense reductions and cost saving synergies projected by
the Company as a result of actions taken through June 30, 2022 or
expected to be taken as of June 30, 2022, net of the benefits
realized during the twelve months ended June 30, 2022.
LIFETIME BRANDS,
INC.Supplemental Information(in
thousands—except per share data)
Reconciliation of GAAP
to Non-GAAP Operating Results (continued)
Adjusted net (loss) income and adjusted diluted (loss)
income per common share (in thousands -except per share
data):
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net (loss) income as reported |
$ |
(3,460 |
) |
|
$ |
5,789 |
|
|
$ |
(3,080 |
) |
|
$ |
8,856 |
|
Adjustments: |
|
|
|
|
|
|
|
Acquisition related expenses |
|
75 |
|
|
|
72 |
|
|
|
1,194 |
|
|
|
254 |
|
S'well integration costs |
|
864 |
|
|
|
— |
|
|
|
1,645 |
|
|
|
— |
|
Warehouse relocation and redesign expenses(1) |
|
73 |
|
|
|
— |
|
|
|
570 |
|
|
|
— |
|
Mark to market (gain) on interest rate derivatives |
|
(304 |
) |
|
|
(46 |
) |
|
|
(1,353 |
) |
|
|
(544 |
) |
Foreign currency translation loss reclassified from Accumulated
Other Comprehensive Loss |
|
— |
|
|
|
2,042 |
|
|
|
— |
|
|
|
2,042 |
|
Gain on change in ownership in equity method investment |
|
— |
|
|
|
(1,732 |
) |
|
|
— |
|
|
|
(1,732 |
) |
Income tax effect on adjustments |
|
(177 |
) |
|
|
(6 |
) |
|
|
(490 |
) |
|
|
73 |
|
Adjusted net (loss) income(2) |
$ |
(2,929 |
) |
|
$ |
6,119 |
|
|
$ |
(1,514 |
) |
|
$ |
8,949 |
|
Adjusted diluted (loss) income per common share(3) |
$ |
(0.14 |
) |
|
$ |
0.28 |
|
|
$ |
(0.07 |
) |
|
$ |
0.41 |
|
(1) For the three months ended June 30, 2022, warehouse
relocation and redesign expenses included $0.1 million of
expenses related to the U.S. segment. For the six months ended
June 30, 2022, warehouse relocation and redesign expenses
included $0.4 million of expenses related to the International
segment and $0.2 million of expenses related to the U.S.
segment.
(2) Adjusted net loss and adjusted diluted loss per common share
in the three and six months ended June 30, 2022 excludes
acquisition related expenses, S'well integration costs, warehouse
relocation and redesign expenses and mark to market (gain) on
interest rate derivatives. The income tax effect on adjustments
reflects the statutory tax rates applied on the adjustments.
Adjusted net income and adjusted diluted income per common share
in the three and six months ended June 30, 2021 excludes
acquisition related expenses and mark to market (gain) on interest
rate derivatives, foreign currency translation loss reclassified
from Accumulated Other Comprehensive Loss and the gain on change in
ownership in equity method investment. The income tax effect on
adjustments reflects the statutory tax rates applied on the
adjustments.
(3)Adjusted diluted (loss) income per common share is calculated
based on diluted weighted-average shares outstanding of 21,531 and
21,965 for the three month period ended June 30, 2022 and
2021, respectively. Adjusted diluted (loss) income per common share
is calculated based on diluted weighted-average shares outstanding
of 21,642 and 21,903 for the six month period ended June 30,
2022 and 2021, respectively. The diluted weighted-average shares
outstanding for the three and six month ended June 30, 2022 do
not include the effect of dilutive securities. The diluted
weighted-average shares outstanding for the three and six month
ended June 30, 2021 include the effect of dilutive securities
of 643 and 664, respectively.
Adjusted
income from operations (in thousands): |
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
(Loss) income from
operations |
$ |
(464 |
) |
|
$ |
11,001 |
|
|
$ |
3,891 |
|
|
$ |
20,247 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Acquisition related expenses |
|
75 |
|
|
|
72 |
|
|
|
1,194 |
|
|
|
254 |
|
S'well integration costs |
|
864 |
|
|
|
— |
|
|
|
1,645 |
|
|
|
— |
|
Warehouse relocation and redesign expenses(1) |
|
73 |
|
|
|
— |
|
|
|
570 |
|
|
|
— |
|
Total adjustments |
|
1,012 |
|
|
|
72 |
|
|
|
3,409 |
|
|
|
254 |
|
Adjusted income from
operations(2) |
$ |
548 |
|
|
$ |
11,073 |
|
|
$ |
7,300 |
|
|
$ |
20,501 |
|
(1) For the three months ended June 30, 2022, warehouse
relocation and redesign expenses included $0.1 million of
expenses related to the U.S. segment. For the six months ended
June 30, 2022, warehouse relocation and redesign expenses
included $0.4 million of expenses related to the International
segment and $0.2 million of expenses related to the U.S.
segment.
(2)Adjusted income from operations for the three and six months
ended June 30, 2022 and June 30, 2021, excludes
acquisition related expenses, integration costs and warehouse
relocation and redesign expenses.
LIFETIME BRANDS,
INC.Supplemental Information(in
thousands)
Reconciliation of GAAP
to Non-GAAP Operating Results (continued)
Constant Currency:
|
As ReportedThree Months
EndedJune 30, |
|
Constant Currency
(1)Three Months EndedJune
30, |
|
|
|
Year-Over-YearIncrease
(Decrease) |
Net
sales |
|
2022 |
|
|
2021 |
|
Increase(Decrease) |
|
|
2022 |
|
|
2021 |
|
Increase(Decrease) |
|
CurrencyImpact |
|
ExcludingCurrency |
|
IncludingCurrency |
|
CurrencyImpact |
U.S. |
$ |
137,191 |
|
$ |
166,583 |
|
$ |
(29,392 |
) |
|
$ |
137,191 |
|
$ |
166,574 |
|
$ |
(29,383 |
) |
|
$ |
9 |
|
(17.6 |
)% |
|
(17.6 |
)% |
|
0.0 |
% |
International |
|
14,123 |
|
|
20,053 |
|
|
(5,930 |
) |
|
|
14,123 |
|
|
18,317 |
|
|
(4,194 |
) |
|
|
1,736 |
|
(22.9 |
)% |
|
(29.6 |
)% |
|
(6.7 |
)% |
Total net sales |
$ |
151,314 |
|
$ |
186,636 |
|
$ |
(35,322 |
) |
|
$ |
151,314 |
|
$ |
184,891 |
|
$ |
(33,577 |
) |
|
$ |
1,745 |
|
(18.2 |
)% |
|
(18.9 |
)% |
|
(0.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Reported Six Months Ended June
30, |
|
Constant Currency (1) Six
Months Ended June 30, |
|
|
|
Year-Over-Year Increase (Decrease) |
Net
sales |
|
2022 |
|
|
2021 |
|
Increase(Decrease) |
|
|
2022 |
|
|
2021 |
|
Increase (Decrease) |
|
Currency Impact |
|
ExcludingCurrency |
|
IncludingCurrency |
|
CurrencyImpact |
U.S. |
$ |
303,409 |
|
$ |
342,764 |
|
$ |
(39,355 |
) |
|
$ |
303,409 |
|
$ |
342,755 |
|
$ |
(39,346 |
) |
|
$ |
9 |
|
(11.5 |
)% |
|
(11.5 |
)% |
|
0.0 |
% |
International |
|
30,622 |
|
|
39,525 |
|
|
(8,903 |
) |
|
|
30,622 |
|
|
37,610 |
|
|
(6,988 |
) |
|
|
1,915 |
|
(18.6 |
)% |
|
(22.5 |
)% |
|
(3.9 |
)% |
Total net sales |
$ |
334,031 |
|
$ |
382,289 |
|
$ |
(48,258 |
) |
|
$ |
334,031 |
|
$ |
380,365 |
|
$ |
(46,334 |
) |
|
$ |
1,924 |
|
(12.2 |
)% |
|
(12.6 |
)% |
|
(0.4 |
)% |
(1) “Constant Currency” is determined by applying the 2022
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 is intended to
exclude the impact of fluctuations in foreign currency exchange
rates.
LIFETIME BRANDS,
INC.Supplemental Information
Reconciliation of GAAP
to Non-GAAP Guidance
Adjusted EBITDA guidance for the full fiscal year ending
December 31, 2022 (in millions):
Net income guidance |
$20 to $24 |
Undistributed equity earnings |
(1) |
Income tax expense |
8 to 10 |
Interest expense(1) |
16 |
Depreciation and amortization |
20 |
Stock compensation expense |
5 |
Acquisition related expenses |
1.2 |
Restructuring, warehouse relocation and redesign expenses |
2 |
S'well integration costs |
1.8 |
Adjusted EBITDA guidance |
$73 to $79 |
(1) Includes estimate for interest expense and mark to market
(gain) on interest rate derivatives.
Adjusted
net income and adjusted diluted income per common share guidance
for the full fiscal year ending December 31, 2022 (in millions
- except per share data): |
Net income guidance |
$20 to $24 |
Acquisition related expenses |
1.2 |
Restructuring, warehouse relocation and redesign expenses |
2 |
S'well integration costs |
1.8 |
Mark to market (gain) on interest rate derivatives |
(2) |
Income tax effect on adjustment |
(1) |
Adjusted net income guidance |
$22 to $26 |
Adjusted diluted income per share
guidance |
$1.00 to $1.19 |
Adjusted
income from operations guidance for the full fiscal year ending
December 31, 2022 (in millions): |
Income from operations guidance |
$44 to $50 |
Acquisition related expenses |
1.2 |
Restructuring, warehouse relocation and redesign expenses |
2 |
S'well integration costs |
1.8 |
Adjusted income from
operations |
$49 to $55 |
LIFETIME BRANDS,
INC.Supplemental Information(in
thousands)
Reconciliation of GAAP to Non-GAAP
Operating Results
Adjusted EBITDA for the year ended December 31, 2021,
2020 and 2019:
|
Three Months Ended |
|
Year Ended |
March 31,2021 |
|
June 30, 2021 |
|
September 30, 2021 |
|
December 31, 2021 |
|
December 31,2021 |
|
|
|
|
(in thousands) |
|
|
|
|
Net income (loss) income as reported |
$ |
3,067 |
|
|
$ |
5,789 |
|
|
$ |
12,571 |
|
|
$ |
(626 |
) |
|
$ |
20,801 |
|
Undistributed equity losses (earnings), net |
|
247 |
|
|
|
(393 |
) |
|
|
(195 |
) |
|
|
(466 |
) |
|
|
(807 |
) |
Income tax provision |
|
2,416 |
|
|
|
1,832 |
|
|
|
5,589 |
|
|
|
6,704 |
|
|
|
16,541 |
|
Interest expense |
|
4,014 |
|
|
|
3,819 |
|
|
|
3,835 |
|
|
|
3,856 |
|
|
|
15,524 |
|
Depreciation and amortization |
|
5,958 |
|
|
|
5,765 |
|
|
|
5,837 |
|
|
|
4,960 |
|
|
|
22,520 |
|
Mark to market gain on interest rate derivatives |
|
(498 |
) |
|
|
(46 |
) |
|
|
(120 |
) |
|
|
(398 |
) |
|
|
(1,062 |
) |
Intangible asset impairments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,760 |
|
|
|
14,760 |
|
Stock compensation expense |
|
1,444 |
|
|
|
1,328 |
|
|
|
1,201 |
|
|
|
1,244 |
|
|
|
5,217 |
|
Acquisition related expenses |
|
182 |
|
|
|
72 |
|
|
|
41 |
|
|
|
378 |
|
|
|
673 |
|
Warehouse relocation expenses (1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
450 |
|
|
|
450 |
|
Wallace facility remedial design expense |
|
— |
|
|
|
— |
|
|
|
500 |
|
|
|
— |
|
|
|
500 |
|
Adjusted EBITDA (2) |
$ |
16,830 |
|
|
$ |
18,166 |
|
|
$ |
29,259 |
|
|
$ |
30,862 |
|
|
$ |
95,117 |
|
(1) Warehouse relocation expenses included $0.1 million of
expenses related to the International segment and $0.3 million of
expenses related to the U.S. segment.
(2) Adjusted EBITDA is a non-GAAP financial measure
which is defined in the Company’s debt agreements. Adjusted EBITDA
is defined as net income (loss), adjusted to exclude undistributed
equity in losses (earnings), income tax provision, interest
expense, depreciation and amortization, mark to market gain on
interest rate derivatives, intangible asset impairments, stock
compensation expense, and other items detailed in the table above
that are consistent with exclusions permitted by our debt
agreements.
|
Three Months Ended |
|
Year Ended |
|
March 31, 2020 |
|
June 30, 2020 |
|
September 30, 2020 |
|
December 31, 2020 |
|
December 31, 2020 |
|
|
|
|
|
(in thousands) |
|
|
|
|
Net (loss) income as reported |
$ |
(28,164 |
) |
|
$ |
(3,977 |
) |
|
$ |
13,913 |
|
|
$ |
15,221 |
|
|
$ |
(3,007 |
) |
Undistributed equity (earnings) losses, net |
|
(339 |
) |
|
|
848 |
|
|
|
(147 |
) |
|
|
(1,620 |
) |
|
|
(1,258 |
) |
Income tax (benefit) provision |
|
(3,729 |
) |
|
|
3,031 |
|
|
|
3,711 |
|
|
|
6,853 |
|
|
|
9,866 |
|
Interest expense |
|
4,736 |
|
|
|
4,230 |
|
|
|
4,128 |
|
|
|
4,183 |
|
|
|
17,277 |
|
Depreciation and amortization |
|
6,234 |
|
|
|
6,061 |
|
|
|
6,090 |
|
|
|
6,279 |
|
|
|
24,664 |
|
Mark to market loss (gain) on interest rate derivatives |
|
2,251 |
|
|
|
164 |
|
|
|
(99 |
) |
|
|
(172 |
) |
|
|
2,144 |
|
Goodwill and other intangible asset impairments |
|
20,100 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20,100 |
|
Stock compensation expense |
|
1,326 |
|
|
|
1,420 |
|
|
|
1,575 |
|
|
|
1,630 |
|
|
|
5,951 |
|
Acquisition related expenses |
|
47 |
|
|
|
55 |
|
|
|
57 |
|
|
|
126 |
|
|
|
285 |
|
Restructuring expenses (benefit) |
|
— |
|
|
|
253 |
|
|
|
— |
|
|
|
(42 |
) |
|
|
211 |
|
Warehouse relocation expenses (1) |
|
790 |
|
|
|
303 |
|
|
|
— |
|
|
|
— |
|
|
|
1,093 |
|
Adjusted EBITDA(2) |
$ |
3,252 |
|
|
$ |
12,388 |
|
|
$ |
29,228 |
|
|
$ |
32,458 |
|
|
$ |
77,326 |
|
(1) Warehouse relocation expenses related to the International
segment.
(2) Adjusted EBITDA is a non-GAAP financial measure
which is defined in the Company’s debt agreements. Adjusted EBITDA
is defined as net income (loss), adjusted to exclude undistributed
equity in losses (earnings), income tax provision, interest
expense, depreciation and amortization, mark to market gain on
interest rate derivatives, goodwill and other intangible asset
impairments, stock compensation expense, and other items detailed
in the table above that are consistent with exclusions permitted by
our debt agreements.
|
Three Months Ended |
|
Year Ended |
|
March 31, 2019 |
|
June 30, 2019 |
|
September 30, 2019 |
|
December 31, 2019 |
|
December 31, 2019 |
|
|
|
|
|
(in thousands) |
|
|
|
|
Net loss as reported |
$ |
(4,867 |
) |
|
$ |
(11,513 |
) |
|
$ |
(13,519 |
) |
|
$ |
(14,516 |
) |
|
$ |
(44,415 |
) |
Undistributed equity losses (earnings), net |
|
116 |
|
|
|
69 |
|
|
|
210 |
|
|
|
(738 |
) |
|
|
(343 |
) |
Income tax (benefit) provision |
|
(2,458 |
) |
|
|
(5,795 |
) |
|
|
15,066 |
|
|
|
(5,704 |
) |
|
|
1,109 |
|
Interest expense |
|
4,922 |
|
|
|
5,044 |
|
|
|
5,539 |
|
|
|
5,275 |
|
|
|
20,780 |
|
Depreciation and amortization |
|
6,359 |
|
|
|
6,290 |
|
|
|
6,122 |
|
|
|
6,344 |
|
|
|
25,115 |
|
Mark to market loss (gain) on interest rate derivatives |
|
— |
|
|
|
(350 |
) |
|
|
(367 |
) |
|
|
315 |
|
|
|
(402 |
) |
Impairment of goodwill |
|
— |
|
|
|
— |
|
|
|
9,748 |
|
|
|
33,242 |
|
|
|
42,990 |
|
Stock compensation expense |
|
907 |
|
|
|
1,193 |
|
|
|
1,505 |
|
|
|
1,436 |
|
|
|
5,041 |
|
SKU Rationalization(1) |
|
— |
|
|
|
8,500 |
|
|
|
— |
|
|
|
— |
|
|
|
8,500 |
|
Acquisition and divestment related expenses |
|
151 |
|
|
|
— |
|
|
|
— |
|
|
|
55 |
|
|
|
206 |
|
Restructuring expenses(1) |
|
608 |
|
|
|
173 |
|
|
|
338 |
|
|
|
316 |
|
|
|
1,435 |
|
Integration charges(1) |
|
174 |
|
|
|
695 |
|
|
|
235 |
|
|
|
159 |
|
|
|
1,263 |
|
Warehouse relocation expenses(1) |
|
215 |
|
|
|
— |
|
|
|
881 |
|
|
|
1,689 |
|
|
|
2,785 |
|
Adjusted EBITDA, before
limitation |
$ |
6,127 |
|
|
$ |
4,306 |
|
|
$ |
25,758 |
|
|
$ |
27,873 |
|
|
$ |
64,064 |
|
Permitted non-recurring charge
limitation(1) |
|
|
|
|
|
|
|
|
$ |
(8,929 |
) |
Adjusted EBITDA(2) |
|
|
|
|
|
|
|
|
$ |
55,135 |
|
(1) Permitted non-recurring charges include restructuring
expenses, integration charges, warehouse relocation costs, and SKU
Rationalization. These are permitted exclusions from the Company’s
adjusted EBITDA, subject to limitations, pursuant to the Company’s
Debt Agreements.
(2) Adjusted EBITDA is a non-GAAP financial measure
which is defined in the Company’s debt agreements. Adjusted EBITDA
is defined as net income (loss), adjusted to exclude undistributed
equity in losses (earnings), income tax (benefit) provision,
interest expense, depreciation and amortization, mark to market
loss (gain) on interest rate derivatives, goodwill impairments,
stock compensation expense, and other items detailed in the table
above that are consistent with exclusions permitted by our debt
agreements.
LIFETIME BRANDS,
INC.Supplemental Information(in
thousands—except per share data)
Reconciliation of GAAP to Non-GAAP
Operating Results (continued)
Adjusted net income and adjusted diluted income per
common share (in thousands - except per share data):
|
Year Ended December 31, |
|
|
2021 |
|
Net income as reported |
$ |
20,801 |
|
Adjustments: |
|
Acquisition related expenses |
|
673 |
|
Warehouse relocation expenses(1) |
|
450 |
|
Mark to market (gain) on interest rate derivatives |
|
(1,062 |
) |
Intangible asset impairments |
|
14,760 |
|
Foreign currency translation loss reclassified from Accumulated
Other Comprehensive Loss |
|
3,404 |
|
Gain on change in ownership in equity method investment |
|
(2,703 |
) |
Wallace facility remedial design expense |
|
500 |
|
Income tax effect on adjustments |
|
(28 |
) |
Adjusted net income(2) |
$ |
36,795 |
|
Adjusted diluted income per
share(2)(3) |
$ |
1.67 |
|
(1) For the year ended December 31, 2021, warehouse relocation
expenses included $0.1 million of expenses related to the
International segment and $0.3 million of expenses related to the
U.S. segment.
(2) Adjusted net income and adjusted diluted income per common
share in the year ended December 31, 2021 excludes acquisition
related expenses, warehouse relocation expenses, mark to market
(gain) on interest rate derivatives, intangible asset impairments,
foreign currency translation loss reclassified from Accumulated
Other Comprehensive Loss, gain on change in ownership in equity
method investment and Wallace facility remedial design expense. The
income tax effect on adjustments reflects the statutory tax rates
applied on the adjustments.
(3) Adjusted diluted income per common share is calculated based
on diluted weighted-average shares outstanding of 22,037 for the
year ended December 31, 2021. The diluted weighted-average shares
outstanding for the year ended December 31, 2021 include the effect
of dilutive securities of 640 shares.
Adjusted income from operations (in
thousands):
|
Year Ended December 31, |
|
|
2021 |
|
|
(in thousands) |
Income from operations |
$ |
50,842 |
|
Adjustments: |
|
Intangible asset impairments |
|
14,760 |
|
Acquisition related expenses |
|
673 |
|
Warehouse relocation expenses (1) |
|
450 |
|
Total adjustments |
|
15,883 |
|
Adjusted income from operations
(2) |
$ |
66,725 |
|
(1) Warehouse relocation expenses included $0.1 million of
expenses related to the International segment and $0.3 million of
expenses related to the U.S. segment.
(2) Adjusted income from operations for the year ended December
31, 2021, excludes intangible asset impairments, acquisition
related expenses and warehouse relocation expenses.
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