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 September 30, 2020.
Robert Kay, Lifetime’s Chief Executive Officer, commented, “We
are pleased with our strong performance in the third quarter, which
marks another quarter of sales and earnings growth as we continue
to make progress executing on our strategic plan. Highlighting our
performance, net income for the quarter was $13.9 million compared
with a net loss of $(13.5) million for the quarter a year ago.
Correspondingly, EBITDA continues to grow reaching $72.7 million
for the last 12 month period or an increase of approximately 5%
over the prior quarter and nearly 20% since the first quarter of
2020. Our U.S. business continues to show strength as it delivers
its fifth consecutive quarter of year-over-year growth with market
share gains. This increase is driven by our household products, led
by our kitchenware products category, which continues to experience
high consumer demand and gain market share across most of our
channels that we sell into. Additionally, our ability to
efficiently execute our transformative initiatives, including
increasing our drop ship capabilities and digital tools, combined
with effectively managing our supply chain, have positioned us
well, and allowed us to meet increased demand and gain market
share."
Mr. Kay continued, "Consistent with expectations, our operations
in Europe have stabilized and end markets have continued to
recover. As a result, this quarter we delivered growth of 14.3%, or
9.9% in constant currency, in our international business over the
prior year, and the turnaround plan that we implemented for this
business remains on track. In terms of cost management, our
disciplined focus has created a leaner organization and we remain
diligent on maintaining a solid liquidity position and on
continuing to deleverage the balance sheet. Looking ahead, we are
committed to increasing investments in growth initiatives,
including continued enhancement of our digital marketing and
e-commerce capabilities, expanding our international business and
building out our commercial foodservice business. While we navigate
the impact of the ongoing pandemic, we remain confident in our
ability to deliver value to our stakeholders through our proven
Lifetime 2.0 strategic plan.”
Third Quarter Financial Highlights:
Consolidated net sales for the three months ended
September 30, 2020 were $224.8 million, representing an
increase of $9.3 million, or 4.3%, as compared to net sales of
$215.5 million for the corresponding period in 2019. In constant
currency, a non-GAAP financial measure, which excludes the impact
of foreign exchange fluctuations and was determined by applying
2020 average rates to 2019 local currency amounts, consolidated net
sales increased by $8.4 million, or 3.9%, as compared to
consolidated net sales in the corresponding period in 2019.
Gross margin for the three months ended September 30, 2020
was $78.8 million, or 35.1%, as compared to $72.9 million, or
33.8%, for the corresponding period in 2019.
Income from operations was $21.5 million, as compared to income
from operations of $6.9 million for the corresponding period in
2019. Excluding a $9.7 million non-cash charge for goodwill
impairment, income from operations would have been $16.7 million,
for the corresponding period in 2019. A table which reconciles this
non-GAAP financial measure to income from operations, as reported,
is included below.
Net income was $13.9 million, or $0.65 per diluted share, as
compared to a net loss of $(13.5) million, or $(0.66) per diluted
share, in the corresponding period in 2019.
Adjusted net income of $13.9 million, or $0.65 per diluted
share, as compared to adjusted net loss, of $(3.0) million, or
$(0.15) per diluted share, in the corresponding period in 2019. A
table which reconciles this non-GAAP financial measure to net
income (loss), as reported, is included below.
Nine Months Financial Highlights:
Consolidated net sales for the nine months ended
September 30, 2020 were $520.0 million, representing an
increase of $12.0 million, or 2.4%, as compared to net sales of
$508.0 million for the corresponding period in 2019. In constant
currency, net sales also increased by $12.0 million, or 2.4%, as
compared to consolidated net sales in the corresponding period in
2019.
Gross margin for the nine months ended September 30, 2020
was $185.9 million, or 35.8%, as compared to $171.3 million, or
33.7%, for the corresponding period in 2019.
Income from operations was $0.6 million in 2020, as compared to
a loss from operations of $(7.9) million for the corresponding
period in 2019. Income from operations, excluding the impact of
certain non-cash charges, was $23.5 million compared to income from
operations, excluding the impact of certain non-cash charges, of
$10.3 million in the corresponding period in 2019. A table
which reconciles this non-GAAP financial measure to income (loss)
from operations, as reported, is included below.
Net loss was $(18.2) million, or $(0.87) per diluted share, as
compared to a net loss of $(29.9) million, or $(1.46) per diluted
share, in the corresponding period in 2019. This includes a
non-cash impairment charges of $20.1 million and $9.7 million
incurred in the first quarter of 2020 and the third quarter of
2019, respectively.
Adjusted net income was $5.1 million, or $0.24 per diluted share
in 2020, as compared to adjusted net loss of $(11.7) million, or
$(0.57) per diluted share in 2019. A table which reconciles this
non-GAAP financial measure to net loss, as reported, is included
below.
Consolidated adjusted EBITDA, after giving effect to certain
adjustments as permitted and defined under our debt agreements, was
$72.7 million for the twelve months ended September 30, 2020.
A table which reconciles this non-GAAP financial measure
to net income (loss), as reported, is included below.
Outlook
As a result of the uncertainty surrounding the COVID-19
pandemic, the Company is not providing outlook for the full fiscal
year 2020.
Dividend
On November 3, 2020, the Board of Directors declared a
quarterly dividend of $0.0425 per share payable on
February 12, 2021 to shareholders of record on
January 29, 2021.
Conference Call
The Company has scheduled a conference call for Thursday,
November 5, 2020 at 11:00 a.m. The dial-in number for the
conference call is (866) 610-1072 (U.S.) or (973) 935-2840
(International), Conference ID: 8275007.
A live webcast of the conference call will be accessible
through:https://event.on24.com/wcc/r/2796914/9438665109E42AC8135FA95CE5D2DFFE
For those who cannot listen to the live broadcast, an audio
replay of the webcast will be available.
Non-GAAP Financial MeasuresThis earnings
release contains non-GAAP financial measures, including
consolidated net sales in constant currency, income from operations
excluding certain non-cash charges, adjusted net income (loss),
adjusted diluted income (loss) per common share, gross margin
(excluding non-recurring charges) 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 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. 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 financial 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 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.
Forward-Looking StatementsIn this press
release, the use of the words “believe,” “could,” “expect,”
“intend,” “may,” “positioned,” “project,” “projected,” “should,”
“will,” “would” or similar expressions is intended to identify
forward-looking statements. Such statements include all statements
regarding the growth of the Company, our financial outlook, 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 efforts to stabilize
our international business, 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 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 successful implementation of the
Company's turnaround plan for its international business; 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; the impact
of tariffs on imported goods and materials; 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; customer ordering behavior;
the performance of our newer products; the impact of our SKU
rationalization initiative, 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 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, 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®, Kizmos™, La Cafetière®, MasterClass®,
Misto®, Swing-A-Way®, Taylor® Kitchen, and Rabbit®; respected
tableware and giftware brands, including Mikasa®, Pfaltzgraff®,
Fitz and Floyd®, Creative Tops®, Empire Silver™, Gorham®,
International® Silver, Kirk Stieff®, Towle® Silversmiths, Wallace®,
Wilton Armetale®, V&A® and Royal Botanic Gardens Kew®; and
valued home solutions brands, including BUILT NY®, 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.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(in thousands—except per share
data)(unaudited)
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Net sales |
$ |
224,750 |
|
|
$ |
215,502 |
|
|
$ |
519,960 |
|
|
$ |
507,964 |
|
Cost of sales |
145,958 |
|
|
142,561 |
|
|
334,066 |
|
|
336,683 |
|
Gross margin |
78,792 |
|
|
72,941 |
|
|
185,894 |
|
|
171,281 |
|
Distribution expenses |
18,961 |
|
|
18,537 |
|
|
50,710 |
|
|
49,938 |
|
Selling, general and
administrative expenses |
38,325 |
|
|
37,389 |
|
|
114,274 |
|
|
118,379 |
|
Restructuring expenses |
— |
|
|
338 |
|
|
253 |
|
|
1,119 |
|
Goodwill and other
impairments |
— |
|
|
9,748 |
|
|
20,100 |
|
|
9,748 |
|
Income (loss) from
operations |
21,506 |
|
|
6,929 |
|
|
557 |
|
|
(7,903 |
) |
Interest expense |
(4,128 |
) |
|
(5,539 |
) |
|
(13,094 |
) |
|
(15,505 |
) |
Mark to market gain (loss) on
interest rate derivatives |
99 |
|
|
367 |
|
|
(2,316 |
) |
|
717 |
|
Income (loss) before income
taxes and equity in earnings (losses) |
17,477 |
|
|
1,757 |
|
|
(14,853 |
) |
|
(22,691 |
) |
Income tax provision |
(3,711 |
) |
|
(15,066 |
) |
|
(3,013 |
) |
|
(6,813 |
) |
Equity in earnings (losses),
net of taxes |
147 |
|
|
(210 |
) |
|
(362 |
) |
|
(395 |
) |
NET INCOME
(LOSS) |
$ |
13,913 |
|
|
$ |
(13,519 |
) |
|
$ |
(18,228 |
) |
|
$ |
(29,899 |
) |
BASIC INCOME (LOSS)
PER COMMON SHARE |
$ |
0.66 |
|
|
$ |
(0.66 |
) |
|
$ |
(0.87 |
) |
|
$ |
(1.46 |
) |
DILUTED INCOME (LOSS)
PER COMMON SHARE |
$ |
0.65 |
|
|
$ |
(0.66 |
) |
|
$ |
(0.87 |
) |
|
$ |
(1.46 |
) |
|
|
|
|
|
|
|
|
LIFETIME BRANDS,
INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(in thousands—except share data)
|
September 30, 2020 |
|
December 31, 2019 |
|
(unaudited) |
|
|
ASSETS |
|
|
|
CURRENT ASSETS |
|
|
|
Cash and cash equivalents |
$ |
42,675 |
|
|
$ |
11,370 |
|
Accounts receivable, less allowances of $14,782 at
September 30, 2020 and $9,681 at December 31, 2019 |
180,289 |
|
|
128,639 |
|
Inventory |
209,825 |
|
|
173,427 |
|
Prepaid expenses and other current assets |
9,619 |
|
|
14,140 |
|
Income taxes receivable |
— |
|
|
1,577 |
|
TOTAL CURRENT ASSETS |
442,408 |
|
|
329,153 |
|
PROPERTY AND EQUIPMENT,
net |
23,839 |
|
|
28,168 |
|
OPERATING LEASE RIGHT-OF-USE
ASSETS |
98,126 |
|
|
106,871 |
|
INVESTMENTS |
17,734 |
|
|
21,289 |
|
INTANGIBLE ASSETS, net |
247,180 |
|
|
280,471 |
|
OTHER ASSETS |
2,559 |
|
|
4,071 |
|
TOTAL ASSETS |
$ |
831,846 |
|
|
$ |
770,023 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
CURRENT LIABILITIES |
|
|
|
Current maturity of term loan |
$ |
18,522 |
|
|
$ |
8,413 |
|
Accounts payable |
109,509 |
|
|
36,173 |
|
Accrued expenses |
81,167 |
|
|
52,060 |
|
Income taxes payable |
1,522 |
|
|
— |
|
Current portion of operating lease liabilities |
11,329 |
|
|
10,661 |
|
TOTAL CURRENT LIABILITIES |
222,049 |
|
|
107,307 |
|
OTHER LONG-TERM LIABILITIES |
16,394 |
|
|
12,214 |
|
INCOME TAXES PAYABLE, LONG-TERM |
1,217 |
|
|
1,217 |
|
OPERATING LEASE LIABILITIES |
104,183 |
|
|
112,180 |
|
DEFERRED INCOME TAXES |
12,829 |
|
|
13,685 |
|
REVOLVING CREDIT FACILITY |
25,654 |
|
|
32,822 |
|
TERM LOAN |
237,727 |
|
|
254,281 |
|
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
September 30, 2020 and December 31, 2019; shares issued
and outstanding: 21,768,020 at September 30, 2020 and
21,255,660 at December 31, 2019 |
218 |
|
|
213 |
|
Paid-in capital |
267,200 |
|
|
263,386 |
|
(Accumulated deficit) retained earnings |
(13,842 |
) |
|
7,173 |
|
Accumulated other comprehensive loss |
(41,783 |
) |
|
(34,455 |
) |
TOTAL STOCKHOLDERS’ EQUITY |
211,793 |
|
|
236,317 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
831,846 |
|
|
$ |
770,023 |
|
|
|
|
|
LIFETIME BRANDS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(in thousands)(unaudited)
|
Nine Months Ended September
30, |
|
2020 |
|
2019 |
OPERATING
ACTIVITIES |
|
|
|
Net loss |
$ |
(18,228 |
) |
|
$ |
(29,899 |
) |
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: |
|
|
|
Depreciation and amortization |
18,385 |
|
|
18,771 |
|
Goodwill and other impairments |
20,100 |
|
|
9,748 |
|
Amortization of financing costs |
1,326 |
|
|
1,312 |
|
Mark to market loss (gain) on interest rate derivatives |
2,316 |
|
|
(717 |
) |
Non-cash lease expense |
2,915 |
|
|
1,050 |
|
Provision for doubtful accounts |
3,011 |
|
|
316 |
|
Stock compensation expense |
4,321 |
|
|
3,605 |
|
Undistributed equity in losses, net of taxes |
362 |
|
|
395 |
|
SKU Rationalization |
— |
|
|
8,500 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
(55,466 |
) |
|
(37,659 |
) |
Inventory |
(37,303 |
) |
|
(66,195 |
) |
Prepaid expenses, other current assets and other assets |
3,573 |
|
|
1,473 |
|
Accounts payable, accrued expenses and other liabilities |
100,798 |
|
|
43,465 |
|
Income taxes receivable |
1,577 |
|
|
1,442 |
|
Income taxes payable |
1,521 |
|
|
4,434 |
|
NET CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES |
49,208 |
|
|
(39,959 |
) |
INVESTING
ACTIVITIES |
|
|
|
Purchases of property and equipment |
(1,645 |
) |
|
(7,618 |
) |
NET CASH USED IN INVESTING ACTIVITIES |
(1,645 |
) |
|
(7,618 |
) |
FINANCING
ACTIVITIES |
|
|
|
Proceeds from revolving credit facility |
107,418 |
|
|
258,647 |
|
Repayments of revolving credit facility |
(113,652 |
) |
|
(208,737 |
) |
Repayments of term loan |
(7,583 |
) |
|
(2,063 |
) |
Payments for finance lease obligations |
(75 |
) |
|
(18 |
) |
Payments of tax withholding for stock based compensation |
(486 |
) |
|
(390 |
) |
Proceeds from the exercise of stock options |
— |
|
|
133 |
|
Cash dividends paid |
(1,862 |
) |
|
(2,693 |
) |
NET CASH (USED IN) PROVIDED BY FINANCING
ACTIVITIES |
(16,240 |
) |
|
44,879 |
|
Effect of foreign exchange on
cash |
(18 |
) |
|
(188 |
) |
INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS |
31,305 |
|
|
(2,886 |
) |
Cash and cash equivalents at
beginning of period |
11,370 |
|
|
7,647 |
|
CASH AND CASH
EQUIVALENTS AT END OF PERIOD |
$ |
42,675 |
|
|
$ |
4,761 |
|
|
|
|
|
LIFETIME BRANDS,
INC.Supplemental Information(in
thousands)
Reconciliation of GAAP
to Non-GAAP Operating Results
Consolidated adjusted EBITDA for the twelve months ended
September 30, 2020:
|
Consolidated adjusted EBITDA for the Four Quarters Ended
September 30, 2020 |
|
(in thousands) |
Three months ended September 30, 2020 |
$ |
29,228 |
|
Three months ended June 30,
2020 |
12,388 |
|
Three months ended March 31,
2020 |
3,252 |
|
Three months ended December 31,
2019 |
27,873 |
|
Consolidated adjusted EBITDA |
$ |
72,741 |
|
|
|
|
Three Months Ended |
|
Twelve Months Ended September 30, 2020 |
|
|
December 31,2019 |
|
March 31, 2020 |
|
June 30, 2020 |
|
September 30, 2020 |
|
|
|
(in thousands) |
Net (loss) income as reported |
$ |
(14,516 |
) |
|
$ |
(28,164 |
) |
|
$ |
(3,977 |
) |
|
$ |
13,913 |
|
|
$ |
(32,744 |
) |
Undistributed equity losses (earnings), net |
(738 |
) |
|
(339 |
) |
|
848 |
|
|
(147 |
) |
|
(376 |
) |
Income tax (benefit) provision |
(5,704 |
) |
|
(3,729 |
) |
|
3,031 |
|
|
3,711 |
|
|
(2,691 |
) |
Interest expense |
5,590 |
|
|
4,736 |
|
|
4,230 |
|
|
4,128 |
|
|
18,684 |
|
Mark to market loss (gain) on interest rate derivatives |
— |
|
|
2,251 |
|
|
164 |
|
|
(99 |
) |
|
2,316 |
|
Depreciation and amortization |
6,344 |
|
|
6,234 |
|
|
6,061 |
|
|
6,090 |
|
|
24,729 |
|
Goodwill and other impairments |
33,242 |
|
|
20,100 |
|
|
— |
|
|
— |
|
|
53,342 |
|
Stock compensation expense |
1,436 |
|
|
1,326 |
|
|
1,420 |
|
|
1,575 |
|
|
5,757 |
|
Acquisition and divestment related expenses |
55 |
|
|
47 |
|
|
55 |
|
|
57 |
|
|
214 |
|
Restructuring expenses |
316 |
|
|
— |
|
|
253 |
|
|
— |
|
|
569 |
|
Integration charges |
159 |
|
|
— |
|
|
— |
|
|
— |
|
|
159 |
|
Warehouse relocation |
1,689 |
|
|
790 |
|
|
303 |
|
|
— |
|
|
2,782 |
|
Consolidated adjusted
EBITDA |
$ |
27,873 |
|
|
$ |
3,252 |
|
|
$ |
12,388 |
|
|
$ |
29,228 |
|
|
$ |
72,741 |
|
|
|
|
|
|
|
|
|
|
|
Consolidated adjusted EBITDA is a non-GAAP financial measure
which is defined in the Company’s debt agreements. Consolidated
adjusted EBITDA is defined as net income (loss), adjusted to
exclude undistributed equity in (earnings) losses, income tax
(benefit) provision, interest expense, mark to market loss (gain)
on interest rate derivatives, depreciation and amortization,
goodwill and other 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 (loss) and adjusted diluted income
(loss) per common share (in thousands):
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Net income (loss) as reported |
$ |
13,913 |
|
|
$ |
(13,519 |
) |
|
$ |
(18,228 |
) |
|
$ |
(29,899 |
) |
Adjustments: |
|
|
|
|
|
|
|
Acquisition and divestment related expenses |
57 |
|
|
— |
|
|
159 |
|
|
151 |
|
Restructuring expenses |
— |
|
|
338 |
|
|
253 |
|
|
1,119 |
|
Integration charges |
— |
|
|
235 |
|
|
— |
|
|
1,104 |
|
Warehouse relocation |
— |
|
|
881 |
|
|
1,093 |
|
|
1,096 |
|
Mark to market loss (gain) on interest rate derivatives |
(99 |
) |
|
(367 |
) |
|
2,316 |
|
|
(717 |
) |
Goodwill and other impairments |
— |
|
|
9,748 |
|
|
20,100 |
|
|
9,748 |
|
SKU Rationalization |
— |
|
|
— |
|
|
— |
|
|
8,500 |
|
Foreign currency translation loss reclassified from Accumulated
Other Comprehensive Loss |
— |
|
|
— |
|
|
235 |
|
|
— |
|
Income tax effect on adjustments |
11 |
|
|
(330 |
) |
|
(878 |
) |
|
(2,848 |
) |
Adjusted net income
(loss) |
$ |
13,882 |
|
|
$ |
(3,014 |
) |
|
$ |
5,050 |
|
|
$ |
(11,746 |
) |
Adjusted diluted income (loss)
per common share(1) |
$ |
0.65 |
|
|
$ |
(0.15 |
) |
|
$ |
0.24 |
|
|
$ |
(0.57 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income (loss) and adjusted diluted income (loss)
per common share in the three and nine months ended
September 30, 2020 and 2019 excludes acquisition and
divestment related expenses, restructuring expenses, integration
charges, warehouse relocation expenses, mark to market loss on
interest rate derivatives, goodwill and other impairments and SKU
Rationalization. The income tax effect on adjustments reflects the
statutory tax rates applied on the adjustments.
(1) Adjusted diluted income per common share is calculated based
on diluted weighted-average shares outstanding of 21,285 and 20,429
for the three month period ended September 30, 2020 and 2019,
respectively, and 21,015 and 20,494 for the nine month period ended
September 30, 2020 and 2019, respectively. The diluted
weighted-average shares outstanding for the three and nine month
period ended September 30, 2020 include the effect of dilutive
securities of 350 and 180 shares, respectively.
LIFETIME BRANDS,
INC.Supplemental Information(in
thousands)
Reconciliation of GAAP
to Non-GAAP Operating Results (continued)
Constant Currency:
|
As ReportedThree Months
EndedSeptember 30, |
|
Constant Currency (1)Three Months
EndedSeptember 30, |
|
|
|
Year-Over-Year Increase
(Decrease) |
Net
sales |
2020 |
|
2019 |
|
Increase (Decrease) |
|
2020 |
|
2019 |
|
Increase (Decrease) |
|
Currency Impact |
|
Excluding Currency |
|
Including Currency |
|
Currency Impact |
U.S. |
$ |
201,539 |
|
|
$ |
195,199 |
|
|
$ |
6,340 |
|
|
$ |
201,539 |
|
|
$ |
195,208 |
|
|
$ |
6,331 |
|
|
$ |
(9 |
) |
|
3.2 |
% |
|
3.2 |
% |
|
0.0 |
% |
International |
23,211 |
|
|
20,303 |
|
|
2,908 |
|
|
23,211 |
|
|
21,126 |
|
|
2,085 |
|
|
(823 |
) |
|
9.9 |
% |
|
14.3 |
% |
|
(4.4 |
)% |
Total net sales |
$ |
224,750 |
|
|
$ |
215,502 |
|
|
$ |
9,248 |
|
|
$ |
224,750 |
|
|
$ |
216,334 |
|
|
$ |
8,416 |
|
|
$ |
(832 |
) |
|
3.9 |
% |
|
4.3 |
% |
|
(0.4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Reported Nine Months Ended September
30, |
|
Constant Currency (1) Nine Months Ended
September 30, |
|
|
|
Year-Over-Year Increase (Decrease) |
Net
sales |
2020 |
|
2019 |
|
Increase (Decrease) |
|
2020 |
|
2019 |
|
Increase (Decrease) |
|
Currency Impact |
|
Excluding Currency |
|
Including Currency |
|
Currency Impact |
U.S. |
$ |
463,338 |
|
|
$ |
445,329 |
|
|
$ |
18,009 |
|
|
$ |
463,338 |
|
|
$ |
445,331 |
|
|
$ |
18,007 |
|
|
$ |
(2 |
) |
|
4.0 |
% |
|
4.0 |
% |
|
0.0 |
% |
International |
56,622 |
|
|
62,635 |
|
|
(6,013 |
) |
|
56,622 |
|
|
62,582 |
|
|
(5,960 |
) |
|
53 |
|
|
(9.5 |
)% |
|
(9.6 |
)% |
|
0.1 |
% |
Total net sales |
$ |
519,960 |
|
|
$ |
507,964 |
|
|
$ |
11,996 |
|
|
$ |
519,960 |
|
|
$ |
507,913 |
|
|
$ |
12,047 |
|
|
$ |
51 |
|
|
2.4 |
% |
|
2.4 |
% |
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) “Constant Currency” is determined by applying the 2020
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(in
thousands)
Reconciliation of GAAP
to Non-GAAP Operating Results (continued)
Income (loss) from operations excluding certain non-cash
charges (in thousands):
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Income (loss) from operations |
$ |
21,506 |
|
|
$ |
6,929 |
|
|
$ |
557 |
|
|
$ |
(7,903 |
) |
Excluded non-cash charges: |
|
|
|
|
|
|
|
Goodwill and other impairments |
— |
|
|
9,748 |
|
|
20,100 |
|
|
9,748 |
|
Bad debt reserve (1) |
— |
|
|
— |
|
|
2,844 |
|
|
— |
|
SKU Rationalization |
— |
|
|
— |
|
|
— |
|
|
8,500 |
|
Total excluded non-cash charges |
— |
|
|
9,748 |
|
|
22,944 |
|
|
18,248 |
|
Income from operations
excluding certain non-cash charges |
$ |
21,506 |
|
|
$ |
16,677 |
|
|
$ |
23,501 |
|
|
$ |
10,345 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Bad debt reserve recorded in the first quarter of fiscal
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.
Lifetime Brands (NASDAQ:LCUT)
Historical Stock Chart
From Apr 2024 to May 2024
Lifetime Brands (NASDAQ:LCUT)
Historical Stock Chart
From May 2023 to May 2024