Lifetime Brands Delivers Record Annual and Quarterly Results
WESTBURY, N.Y.--(BUSINESS WIRE)--March 2, 2006--Lifetime Brands, Inc. (NASDAQ NM: LCUT), a leading designer, developer and marketer of a broad range of nationally branded consumer products used in the home, today announced results for the three months and full year ended December 31, 2005.
Financial and Operating Highlights
-- Net sales for 2005 increased 63% to $307.9 million. Net income
for the year rose 66% to $14.1 million. Net income per diluted
share increased 64% to $1.23.
-- Net sales for the fourth quarter of 2005 increased 83% to
$124.4 million. Net income for the quarter rose 35% to $7.2
million. Net income per diluted share increased 28% to $0.60.
-- During the year, Lifetime achieved significant internal growth
in all of its major product categories.
-- During the quarter, the Company completed its integration of
the Pfaltzgraff business it acquired in July 2005 and
restructured Pfaltzgraff's supply chain to reduce the cost of
products while keeping quality high.
Jeffrey Siegel, Chairman, President and Chief Executive Officer, commented, "2005 was an outstanding year for our Company. Even before taking into account the contributions of the Pfaltzgraff and Salton businesses we acquired in 2005, our sales and earnings set records for both the year and the fourth quarter.
"Our results for the year, as well as for the fourth quarter, reflect dynamic growth in our cutlery and kitchenware categories, which was powered by a successful rollout of KitchenAid(R) cutlery, increased retail placement of our expanded line of Farberware(R) cutlery and increased distribution of KitchenAid(R) and Farberware(R) tools and gadgets.
"Over the past several months, we completed the integration of the Pfaltzgraff and Salton businesses, which have firmly established Lifetime as a leader in the important tabletop category. We have applied Lifetime's extensive overseas sourcing expertise for Pfaltzgraff, and have made good progress in reducing the cost of merchandising while keeping product quality at the same high level.
"We expect that, in 2006, we will see growth across all the Company's major brands, products and customer base. This growth will be driven by our relentless commitment to innovation and new product development. At the 2006 International Home & Housewares Show, to be held in Chicago later this month, Lifetime will introduce approximately 825 new items. For the year, we expect to introduce approximately 1,400 new SKUs - double last year's number.
"Overall, we are very pleased with the strength of our business, and are especially gratified by the strong organic sales momentum we achieved in the fourth quarter. As a result, our outlook for 2006 remains extremely positive. As we announced in January 2006, we expect net sales for the year to range from $380 million to $400 million, and earnings per share to range from $1.45 to $1.70."
Lifetime has scheduled a conference call Thursday, March 2, at 11:00 a.m. Eastern time to discuss fourth-quarter 2005 results and additional matters. The dial-in number for the call is (706) 634-1218. A replay of the call will also be available through Thursday, March 9, and can be accessed by dialing (706) 645-9291, conference ID #4201405. A live webcast of the call will be broadcast at the Company's web site, www.lifetimebrands.com. For those who cannot listen to the live broadcast, an audio replay of the call will also be available on the site.
Lifetime is a leading designer, marketer and distributor of kitchenware, cutlery & cutting boards, bakeware & cookware, pantryware & spices, tabletop and bath accessories, marketing its products under various trade names, including Farberware(R), KitchenAid(R), Pfaltzgraff(R), Calvin Klein(R), Cuisinart(R), Hoffritz(R), Sabatier(R), Nautica(R), Joseph Abboud Environments(R), Roshco(R), Baker's Advantage(R), Kamenstein(R), CasaModa(TM), and :USE(R). Lifetime's products are distributed through almost every major retailer in the United States.
The information herein contains certain forward-looking statements including statements concerning the Company's future prospects. These statements involve risks and uncertainties, including risks relating to general economic conditions and risks relating to the Company's operations, such as the risk of loss of major customers and risks relating to changes in demand for the Company's products, as detailed from time to time in the Company's filings with the Securities and Exchange Commission.
LIFETIME BRANDS, INC.
INCOME STATEMENT
(in 000's, except per share data)
Three Months Ended
December 31,
(Unaudited)
------------------
%
2005 2004 Increase
--------- -------- ---------
Net Sales $124,381 $68,059 82.8%
Cost of Sales 72,525 40,100 80.9%
Distribution Expenses 10,795 6,426 68.0%
SG&A 28,355 12,378 129.1%
--------- --------
Income from Operations 12,706 9,155 38.8%
Interest Expense 1,087 299 263.5%
Other (Income) (34) (15)
--------- --------
Income Before Taxes 11,653 8,871 31.3%
Tax Provision 4,427 3,531 25.4%
--------- --------
Net Income $7,226 $5,340 35.3%
========= ========
Diluted Earnings Per Common Share $0.60 $0.47
========= ========
Weighted Average Shares 12,158 11,250
LIFETIME BRANDS, INC.
INCOME STATEMENT
(in 000's, except per share data)
Twelve Months Ended
December 31,
(Unaudited)
-------------------
%
2005 2004 Increase
--------- --------- ---------
Net Sales $307,897 $189,458 62.5%
Cost of Sales 177,493 111,497 59.2%
Distribution Expenses 32,966 22,830 44.4%
SG&A 72,266 40,282 79.4%
--------- ---------
Income from Operations 25,172 14,849 69.5%
Interest Expense 2,489 835 198.1%
Other (Income) (73) (60)
--------- ---------
Income Before Taxes 22,756 14,074 61.7%
Tax Provision 8,647 5,602 54.4%
--------- ---------
Net Income $14,109 $8,472 66.5%
========= =========
Diluted Earnings Per Common Share $1.23 $0.75
========= =========
Weighted Average Shares 11,510 11,186
LIFETIME BRANDS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
2005 2004
-------------------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $786 $1,741
Accounts receivable, net 49,158 34,083
Merchandise inventories 91,953 58,934
Prepaid expenses and other current assets 14,356 8,667
-------------------------
TOTAL CURRENT ASSETS 156,253 103,425
PROPERTY AND EQUIPMENT, net 23,989 20,003
INTANGIBLES, net 40,264 31,484
OTHER ASSETS 2,645 2,305
-------------------------
TOTAL ASSETS $223,151 $157,217
=========================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term borrowings $14,500 $19,400
Accounts payable and accrued expenses 46,091 28,037
Income taxes payable 9,819 5,476
-------------------------
TOTAL CURRENT LIABILITIES 70,410 52,913
DEFERRED RENT & OTHER LONG TERM LIABILITIES 2,287 2,072
DEFERRED INCOME TAX LIABILITIES 4,967 4,294
LONG TERM DEBT 5,000 5,000
STOCKHOLDERS' EQUITY 140,487 92,938
-------------------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $223,151 $157,217
=========================
CONTACT: Lifetime Brands, Inc.
Robert McNally, 516-683-6000
or
Investor Relations:
Lippert/Heilshorn & Associates, Inc.
Harriet Fried, 212-838-3777
hfried@lhai.com
SOURCE: Lifetime Brands, Inc.