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 March 31, 2024.
Rob Kay, Lifetime’s Chief Executive Officer, commented, “We are
pleased with our performance in the first quarter as we delivered
results that were both in line with our expectations and above the
broader market. While shipments for the quarter were under pressure
as a result of both economic headwinds and inventory
rationalization efforts among select retailers, our sell-through
rates remained strong, a testament to the strength of our product
offerings across channels. Further, we were able to expand our
margins and deliver increased profitability as a result of
favorable product mix, stability in our supply chain, and our
continued disciplined expense management.”
Mr. Kay continued, “The steps we have taken to strengthen our
business have positioned us well to compete and gain share
notwithstanding market conditions. Our outlook reflects the
opportunities already in our pipeline for the year ahead, and we
are confident in our ability to continue driving operational
excellence as we advance our strategic growth initiatives. Further,
our high liquidity levels ensure we have the financial flexibility
to invest in our business. As we look ahead to the full year 2024,
we are confident the Company is well-positioned to continue
delivering solid performance and creating value for our
shareholders as we continue execute on our growth strategy.”
First Quarter Financial
Highlights:
Consolidated net sales for the three months ended March 31,
2024 were $142.2 million, representing a decrease of $3.2 million,
or 2.2%, as compared to net sales of $145.4 million for the
corresponding period in 2023. In constant currency, a non-GAAP
financial measure, which excludes the impact of foreign exchange
fluctuations and was determined by applying 2024 average rates to
2023 local currency amounts, consolidated net sales decreased by
$3.7 million, or 2.5%, as compared to consolidated net sales in the
corresponding period in 2023. A table reconciling this non-GAAP
financial measure to consolidated net sales, as reported, is
included below.
Gross margin for the three months ended March 31, 2024 was
$57.5 million, or 40.5%, as compared to $53.8 million, or 37.0%,
for the corresponding period in 2023.
Income from operations was $1.8 million, as compared to a loss
from operations of $(1.8) million for the corresponding period in
2023.
Adjusted income from operations(1) was $5.7 million, as compared
to $3.4 million for the corresponding period in 2023.
Net loss was $(6.3) million, or $(0.29) per diluted share, as
compared to net loss of $(8.8) million, or $(0.41) per diluted
share, in the corresponding period in 2023.
Adjusted net loss(1) was $(3.2) million, or $(0.15) per diluted
share, as compared to adjusted net loss(1) of $(2.6) million, or
$(0.12) per diluted share, in the corresponding period in 2023.
Adjusted EBITDA(1) was $59.5 million for the trailing twelve
months ended March 31, 2024.
Liquidity as of March 31, 2024 was $125.1 million,
consisting of $4.6 million of cash and cash equivalents, $96.7
million of availability under the ABL Agreement and $23.8 million
of available funding under the Receivables Purchase Agreement.
(1) A table reconciling this non-GAAP financial measure to its
most comparable GAAP financial measure, as reported, is included
below.
Full Year 2024
Guidance
For the full year ending December 31, 2024, the Company is
providing the following financial guidance
(in millions - except per share data):
| Net sales |
$690 to $730 |
|
Income from operations |
$33.0 to $38.0 |
| Adjusted income from
operations |
$49.0 to $54.0 |
| Net income(1) |
$4.0 to $6.0 |
|
Adjusted net income |
$15.0 to $17.0 |
| Diluted income
per common share(1) |
$0.18 to $0.28 per share |
|
Adjusted diluted income per common share |
$0.69 to $0.78 per share |
|
Weighted-average diluted shares |
21.8 |
| Adjusted EBITDA |
$57.5 to $62.5 |
(1) Guidance for the year ending December 31, 2024 for net
income and diluted income per common share guidance does not
include an estimate for a non-cash loss of $14.2 million that would
be reclassified from the Statement of Comprehensive Loss to the
Statement of Operations upon a loss of significant influence in the
Grupo Vasconia investment.
Tables reconciling non-GAAP financial measures to GAAP financial
measures, as reported, are included below.
Conference Call
The Company has scheduled a conference call for Thursday, May 9,
2024 at 11:00 a.m. (Eastern Time). The dial-in number for the
conference call is (800) 715-9871 (U.S.) or +1 (646) 307-1963
(International). The conference ID is 8806704.
A live webcast of the conference call will be accessible
through:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=J5ENI5wB
For those who cannot listen to the live broadcast, an audio
replay of the webcast will be available until November 5, 2024.
Non-GAAP Financial Measures
This earnings release contains non-GAAP financial
measures, including constant currency net sales, adjusted income
from operations, adjusted net loss, adjusted diluted loss per
common share, adjusted EBITDA, adjusted EBITDA, before limitation,
pro forma adjusted EBITDA, before limitation, 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 “advance,”
“believe,” “continue,” “could,” “deliver,” “drive,” “enable,”
“expect,” “gain,” “goal,” “grow,” “intend,” “maintain,” “manage,”
“may,” “outlook,” “plan,” “positioned,” “project,” “projected,”
“should,” “take,” “target,” “unlock,” “will,” “would”, or similar
expressions is intended to identify forward-looking statements.
Such statements include all statements regarding the growth of the
Company, the Company’s financial guidance, the Company’s ability to
navigate the current environment and advance the Company’s
strategy, the Company’s commitment to increasing investments in
future growth initiatives, the Company’s initiatives to create
value, the Company’s efforts to mitigate geopolitical factors and
tariffs, the Company’s 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 the Company’s 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; the highly seasonal nature of the Company’s
business; the Company’s ability to drive future growth and
profitability from its European operations; changes in U.S. or
foreign trade or tax law and policy; changes in general economic
conditions that could impact the Company’s customers and affect
customer purchasing practices or consumer spending; customer
ordering behavior; the performance of the Company’s 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 the Company or the Company’s suppliers do
business; shortages of and price volatility for certain
commodities; global health epidemics, such as the COVID-19
pandemic; social unrest, including related protests and
disturbances; the emergence, continuation and consequences of
geopolitical conflicts including: the conflict in Ukraine, Israel
and surrounding areas, and the possible expansion of such
conflicts; macro-economic challenges, 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; the Company’s ability to successfully integrate
acquired businesses; the Company’s expectations regarding customer
purchasing practices and the future level of demand for the
Company’s products; the Company’s ability to execute on the goals
and strategies set forth in the Company’s 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 Katcher
Ed Trissel / T.J. O'Sullivan / Carly King212-355-4449
LIFETIME BRANDS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(in thousands—except per share
data)(unaudited)
| |
Three Months EndedMarch 31, |
|
|
|
2024 |
|
|
|
2023 |
|
| Net sales |
$ |
142,242 |
|
|
$ |
145,435 |
|
| Cost of sales |
|
84,695 |
|
|
|
91,593 |
|
| Gross margin |
|
57,547 |
|
|
|
53,842 |
|
| Distribution expenses |
|
16,181 |
|
|
|
16,885 |
|
| Selling, general and
administrative expenses |
|
39,536 |
|
|
|
37,907 |
|
| Restructuring expenses |
|
— |
|
|
|
856 |
|
| Income (loss) from
operations |
|
1,830 |
|
|
|
(1,806 |
) |
| Interest expense |
|
(5,614 |
) |
|
|
(5,336 |
) |
| Mark to market loss on
interest rate derivatives |
|
(174 |
) |
|
|
(234 |
) |
| Loss before income taxes and
equity in losses |
|
(3,958 |
) |
|
|
(7,376 |
) |
| Income tax (provision)
benefit |
|
(210 |
) |
|
|
1,348 |
|
| Equity in losses, net of
taxes |
|
(2,092 |
) |
|
|
(2,777 |
) |
| NET
LOSS |
$ |
(6,260 |
) |
|
$ |
(8,805 |
) |
| BASIC
LOSS PER COMMON SHARE |
$ |
(0.29 |
) |
|
$ |
(0.41 |
) |
| DILUTED
LOSS PER COMMON SHARE |
$ |
(0.29 |
) |
|
$ |
(0.41 |
) |
| |
|
|
|
|
|
|
|
LIFETIME BRANDS,
INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(in thousands—except share data)
| |
March 31,2024 |
|
December 31,2023 |
| |
(unaudited) |
|
|
| ASSETS |
|
|
|
| CURRENT ASSETS |
|
|
|
|
Cash and cash equivalents |
$ |
4,639 |
|
|
$ |
16,189 |
|
|
Accounts receivable, less allowances of $15,177 at March 31,
2024 and $15,952 at December 31, 2023 |
|
113,645 |
|
|
|
155,180 |
|
|
Inventory |
|
189,820 |
|
|
|
188,647 |
|
|
Prepaid expenses and other current assets |
|
13,915 |
|
|
|
16,339 |
|
|
TOTAL CURRENT ASSETS |
|
322,019 |
|
|
|
376,355 |
|
| PROPERTY AND EQUIPMENT,
net |
|
16,356 |
|
|
|
16,970 |
|
| OPERATING LEASE RIGHT-OF-USE
ASSETS |
|
66,662 |
|
|
|
69,756 |
|
| INVESTMENTS |
|
— |
|
|
|
1,826 |
|
| INTANGIBLE ASSETS, net |
|
195,343 |
|
|
|
199,133 |
|
| OTHER ASSETS |
|
2,286 |
|
|
|
3,102 |
|
|
TOTAL ASSETS |
$ |
602,666 |
|
|
$ |
667,142 |
|
| LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
| CURRENT LIABILITIES |
|
|
|
|
Current maturity of term loan |
$ |
10,652 |
|
|
$ |
4,742 |
|
|
Accounts payable |
|
32,855 |
|
|
|
54,154 |
|
|
Accrued expenses |
|
64,697 |
|
|
|
78,356 |
|
|
Income taxes payable |
|
567 |
|
|
|
641 |
|
|
Current portion of operating lease liabilities |
|
14,251 |
|
|
|
14,075 |
|
|
TOTAL CURRENT LIABILITIES |
|
123,022 |
|
|
|
151,968 |
|
|
OTHER LONG-TERM LIABILITIES |
|
9,257 |
|
|
|
9,126 |
|
|
INCOME TAXES PAYABLE, LONG-TERM |
|
1,493 |
|
|
|
1,493 |
|
|
OPERATING LEASE LIABILITIES |
|
66,278 |
|
|
|
70,009 |
|
|
DEFERRED INCOME TAXES |
|
7,429 |
|
|
|
7,438 |
|
|
REVOLVING CREDIT FACILITY |
|
40,860 |
|
|
|
60,395 |
|
|
TERM LOAN |
|
130,626 |
|
|
|
135,834 |
|
|
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
March 31, 2024 and December 31, 2023; shares issued and
outstanding: 22,073,256 at March 31, 2024 and 21,813,266 at
December 31, 2023 |
|
221 |
|
|
|
218 |
|
|
Paid-in capital |
|
277,496 |
|
|
|
277,728 |
|
|
Accumulated deficit |
|
(20,771 |
) |
|
|
(13,568 |
) |
|
Accumulated other comprehensive loss |
|
(33,245 |
) |
|
|
(33,499 |
) |
|
TOTAL STOCKHOLDERS’ EQUITY |
|
223,701 |
|
|
|
230,879 |
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY |
$ |
602,666 |
|
|
$ |
667,142 |
|
|
|
|
|
|
|
|
|
|
LIFETIME BRANDS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(in thousands)(unaudited)
| |
Three Months EndedMarch 31, |
|
|
|
2024 |
|
|
|
2023 |
|
| OPERATING
ACTIVITIES |
|
|
|
|
Net loss |
$ |
(6,260 |
) |
|
$ |
(8,805 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
Depreciation and amortization |
|
4,939 |
|
|
|
4,870 |
|
|
Amortization of financing costs |
|
739 |
|
|
|
477 |
|
|
Mark to market loss on interest rate derivatives |
|
174 |
|
|
|
234 |
|
|
Non-cash lease adjustment |
|
(455 |
) |
|
|
(713 |
) |
|
Provision for doubtful accounts |
|
195 |
|
|
|
1,643 |
|
|
Stock compensation expense |
|
807 |
|
|
|
861 |
|
|
Undistributed losses from equity investment, net of taxes |
|
2,092 |
|
|
|
2,777 |
|
|
Changes in operating assets and liabilities |
|
|
|
|
Accounts receivable |
|
41,119 |
|
|
|
15,336 |
|
|
Inventory |
|
(1,566 |
) |
|
|
13,368 |
|
|
Prepaid expenses, other current assets and other assets |
|
3,159 |
|
|
|
1,811 |
|
|
Accounts payable, accrued expenses and other liabilities |
|
(34,359 |
) |
|
|
(18,085 |
) |
|
Income taxes receivable |
|
— |
|
|
|
(1,434 |
) |
|
Income taxes payable |
|
(71 |
) |
|
|
(235 |
) |
|
NET CASH PROVIDED
BY OPERATING ACTIVITIES |
|
10,513 |
|
|
|
12,105 |
|
| INVESTING
ACTIVITIES |
|
|
|
|
Purchases of property and equipment |
|
(600 |
) |
|
|
(511 |
) |
|
NET CASH USED
IN INVESTING ACTIVITIES |
|
(600 |
) |
|
|
(511 |
) |
| FINANCING
ACTIVITIES |
|
|
|
|
Proceeds from revolving credit facility |
|
51,484 |
|
|
|
18,357 |
|
|
Repayments of revolving credit facility |
|
(70,822 |
) |
|
|
(8,680 |
) |
|
Payments for finance lease obligations |
|
(7 |
) |
|
|
(7 |
) |
|
Payments of tax withholding for stock based compensation |
|
(1,028 |
) |
|
|
(439 |
) |
|
Payments for stock repurchase |
|
— |
|
|
|
(2,539 |
) |
|
Cash dividends paid |
|
(1,026 |
) |
|
|
(985 |
) |
|
NET CASH (USED IN) PROVIDED
BY FINANCING ACTIVITIES |
|
(21,399 |
) |
|
|
5,707 |
|
| Effect of foreign exchange on
cash |
|
(64 |
) |
|
|
59 |
|
| (DECREASE)
INCREASE IN CASH AND CASH
EQUIVALENTS |
|
(11,550 |
) |
|
|
17,360 |
|
| Cash and cash equivalents at
beginning of period |
|
16,189 |
|
|
|
23,598 |
|
| CASH AND CASH
EQUIVALENTS AT END OF PERIOD |
$ |
4,639 |
|
|
$ |
40,958 |
|
| |
|
|
|
|
|
|
|
LIFETIME BRANDS,
INC.Supplemental Information(in
thousands)
Reconciliation of GAAP
to Non-GAAP Operating Results
Adjusted EBITDA for the twelve months ended
March 31, 2024:
| |
Quarter Ended |
|
Twelve Months Ended March 31, 2024 |
|
| |
June 30, 2023 |
|
September 30,2023 |
|
December 31,2023 |
|
March 31,2024 |
|
|
| |
(in thousands) |
|
Net (loss) income as reported |
$ |
(6,520 |
) |
|
$ |
4,206 |
|
$ |
2,707 |
|
|
$ |
(6,260 |
) |
|
$ |
(5,867 |
) |
|
Undistributed equity losses, net |
|
5,863 |
|
|
|
1,047 |
|
|
2,978 |
|
|
|
2,092 |
|
|
|
11,980 |
|
|
Income tax provision |
|
1,242 |
|
|
|
3,015 |
|
|
3,313 |
|
|
|
210 |
|
|
|
7,780 |
|
|
Interest expense |
|
5,528 |
|
|
|
5,246 |
|
|
5,618 |
|
|
|
5,614 |
|
|
|
22,006 |
|
|
Depreciation and amortization |
|
4,925 |
|
|
|
4,821 |
|
|
4,955 |
|
|
|
4,939 |
|
|
|
19,640 |
|
|
Mark to market (gain) loss on interest rate derivatives |
|
(197 |
) |
|
|
98 |
|
|
364 |
|
|
|
174 |
|
|
|
439 |
|
|
Stock compensation expense |
|
1,011 |
|
|
|
898 |
|
|
917 |
|
|
|
807 |
|
|
|
3,633 |
|
|
Contingent consideration fair value adjustments |
|
(50 |
) |
|
|
— |
|
|
(600 |
) |
|
|
— |
|
|
|
(650 |
) |
|
(Gain) loss on extinguishments of debt, net |
|
(1,520 |
) |
|
|
— |
|
|
759 |
|
|
|
— |
|
|
|
(761 |
) |
|
Acquisition related expenses |
|
242 |
|
|
|
186 |
|
|
407 |
|
|
|
95 |
|
|
|
930 |
|
|
Warehouse redesign expenses(1) |
|
157 |
|
|
|
176 |
|
|
51 |
|
|
|
18 |
|
|
|
402 |
|
| Adjusted EBITDA(2) |
$ |
10,681 |
|
|
$ |
19,693 |
|
$ |
21,469 |
|
|
$ |
7,689 |
|
|
$ |
59,532 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the twelve months ended March 31, 2024, the warehouse
redesign expenses were related to the U.S. segment.
(2) Adjusted EBITDA is a non-GAAP financial measure that is
defined in the Company’s debt agreements. Adjusted EBITDA is
defined as net (loss) income, adjusted to exclude undistributed
equity in losses, income tax provision, interest expense,
depreciation and amortization, mark to market (gain) loss on
interest rate derivatives, stock compensation expense, (gain) loss
on extinguishments of debt, net, 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 loss and
adjusted diluted loss per common
share (in thousands -except per share data):
| |
Three Months Ended March 31, |
|
|
|
2024 |
|
|
|
2023 |
|
| Net loss as reported |
$ |
(6,260 |
) |
|
$ |
(8,805 |
) |
|
Adjustments: |
|
|
|
|
Acquisition intangible amortization expense |
|
3,778 |
|
|
|
3,676 |
|
|
Acquisition related expenses |
|
95 |
|
|
|
490 |
|
|
Restructuring expenses |
|
— |
|
|
|
856 |
|
|
Warehouse redesign expenses(1) |
|
18 |
|
|
|
194 |
|
|
Impairment of Grupo Vasconia investment |
|
— |
|
|
|
2,053 |
|
|
Mark to market loss on interest rate derivatives |
|
174 |
|
|
|
234 |
|
|
Income tax effect on adjustments |
|
(998 |
) |
|
|
(1,345 |
) |
| Adjusted net loss(2) |
$ |
(3,193 |
) |
|
$ |
(2,647 |
) |
| Adjusted diluted loss per
common share(3) |
$ |
(0.15 |
) |
|
$ |
(0.12 |
) |
| |
|
|
|
|
|
|
|
(1) For the three months ended March 31, 2024 and 2023,
warehouse redesign expenses were related to the U.S. segment.
(2) Adjusted net loss and adjusted diluted loss per common share
in the three months ended March 31, 2024 excludes acquisition
intangible amortization expense, acquisition related expenses,
warehouse redesign expenses, and mark to market loss on interest
rate derivatives. The income tax effect on adjustments reflects the
statutory tax rates applied on the adjustments.
Adjusted net loss and adjusted diluted loss per common share in
the three months ended March 31, 2023 excludes acquisition
intangible amortization expense, acquisition related expenses,
restructuring expenses, warehouse redesign expenses, impairment of
Grupo Vasconia investment, and mark to market loss on interest rate
derivatives. The income tax effect on adjustments reflects the
statutory tax rates applied on the adjustments.
(3)Adjusted diluted loss per common share is calculated based on
diluted weighted-average shares outstanding of 21,377 and 21,225
for the three month period ended March 31, 2024 and 2023,
respectively. The diluted weighted-average shares outstanding for
the three months ended March 31, 2024 and 2023 do not include
the effect of dilutive securities.
| Adjusted
income from operations (in thousands): |
| |
Three Months Ended March 31, |
|
|
|
2024 |
|
|
2023 |
|
| Income (loss) from
operations |
$ |
1,830 |
|
$ |
(1,806 |
) |
| Adjustments: |
|
|
|
|
Acquisition intangible amortization expense |
|
3,778 |
|
|
3,676 |
|
|
Acquisition related expenses |
|
95 |
|
|
490 |
|
|
Restructuring expenses |
|
— |
|
|
856 |
|
|
Warehouse redesign expenses(1) |
|
18 |
|
|
194 |
|
| Total adjustments |
|
3,891 |
|
|
5,216 |
|
| Adjusted income from
operations(2) |
$ |
5,721 |
|
$ |
3,410 |
|
| |
|
|
|
|
|
|
(1) For the three months ended March 31, 2024 and 2023,
warehouse redesign expenses were related to the U.S. segment.
(2) Adjusted income from operations for the three months ended
March 31, 2024 and March 31, 2023, excludes acquisition
intangible amortization expense, acquisition related expenses,
restructuring expenses, and warehouse redesign expenses.
LIFETIME BRANDS,
INC.Supplemental Information(in
thousands)
Reconciliation of GAAP
to Non-GAAP Operating Results (continued)
Constant Currency:
| |
As ReportedThree Months
EndedMarch 31, |
|
Constant Currency
(1)Three Months
EndedMarch 31, |
|
|
|
Year-Over-YearIncrease
(Decrease) |
| Net
sales |
|
2024 |
|
|
2023 |
|
Increase(Decrease) |
|
|
2024 |
|
|
2023 |
|
Increase(Decrease) |
|
CurrencyImpact |
|
ExcludingCurrency |
|
IncludingCurrency |
|
CurrencyImpact |
|
U.S. |
$ |
130,480 |
|
$ |
133,485 |
|
$ |
(3,005 |
) |
|
$ |
130,480 |
|
$ |
133,485 |
|
$ |
(3,005 |
) |
|
$ |
— |
|
|
(2.3 |
)% |
|
(2.3 |
)% |
|
— |
% |
| International |
|
11,762 |
|
|
11,950 |
|
|
(188 |
) |
|
|
11,762 |
|
|
12,418 |
|
|
(656 |
) |
|
|
(468 |
) |
|
(5.3 |
)% |
|
(1.6 |
)% |
|
3.7 |
% |
|
Total net sales |
$ |
142,242 |
|
$ |
145,435 |
|
$ |
(3,193 |
) |
|
$ |
142,242 |
|
$ |
145,903 |
|
$ |
(3,661 |
) |
|
$ |
(468 |
) |
|
(2.5 |
)% |
|
(2.2 |
)% |
|
0.3 |
% |
(1) “Constant Currency” is determined by applying the 2024
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 year
ending December 31, 2024 (in
millions):
|
Net income guidance |
$4.0 to $6.0 |
|
Undistributed equity losses |
2.1 |
|
Income tax expense |
5.0 to 8.0 |
|
Interest expense(1) |
21.9 |
|
Depreciation and amortization |
19.5 |
|
Stock compensation expense |
4.0 |
|
Acquisition related expense |
0.2 |
|
Warehouse redesign expenses |
0.8 |
| Adjusted EBITDA guidance |
$57.5 to $62.5 |
| |
|
| Adjusted
net income and adjusted diluted income per common share guidance
for the full year ending December 31,
2024 (in millions - except per share
data): |
|
Net income guidance |
$4.0 to $6.0 |
|
Acquisition intangible amortization expense |
15.0 |
|
Acquisition related expense |
0.2 |
|
Warehouse redesign expenses |
0.8 |
|
Mark to market loss on interest rate derivatives |
0.2 |
|
Income tax effect on adjustment |
(5.2) |
| Adjusted net income guidance |
$15.0 to $17.0 |
| Adjusted diluted income per share
guidance |
$0.69 to $0.78 |
| |
|
| Adjusted
income from operations guidance for the full year ending
December 31, 2024 (in
millions): |
|
Income from operations guidance |
$33.0 to $38.0 |
|
Acquisition intangible amortization expense |
15.0 |
|
Acquisition related expense |
0.2 |
|
Warehouse redesign expenses |
0.8 |
| Adjusted income from
operations |
$49.0 to $54.0 |
(1) Includes estimate for interest expense and mark to market
loss on interest rate derivatives.
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