Lifetime Hoan Announces Fourth Quarter and Year-End 2001 Results; Net Sales Increase 12.5% in the Fourth Quarter
For the fourth quarter of 2001, net sales increased to $48.1 million from $42.7 million in the same period last year. The Company reported net income for the fourth quarter of $1.0 million, or $0.10 per diluted share, compared to a net loss of $1.4 million, or $0.13 per diluted share, for the same period in 2000.
For the twelve months ended December 31, 2001, net sales increased to $143.5 million from $129.4 million in 2000. Net income for 2001 was $2.9 million, or $0.28 per diluted share, compared to $3.4 million, or $0.31 per diluted share, last year.
Jeffrey Siegel, president and chief executive officer, said, "Even with the poor overall retail climate and the well publicized financial difficulties of certain customers, Lifetime Hoan generated strong sales in the fourth quarter of 2001. Revenues for the period increased by 12.5%, primarily due to strong sales and shipments of our new KitchenAid(R) line and the expansion of our supermarket business. As we expected, KitchenAid(R) has been one of the most successful new product launches in our company's history."
Mr. Siegel continued, "The expenses associated with transitioning into our new warehouse unfortunately prevented these higher sales numbers from adding further to our bottom line. Excluding relocation costs and the expense of operating duplicate warehouses, earnings for the fourth quarter would have been $2.3 million, or $0.22 per diluted share."
"Looking forward to 2002, we have a number of promising initiatives underway," Mr. Siegel concluded. "We are continuing to expand our KitchenAid(R) line and expect to ship an additional 150 SKUs by the end of this year. Our supermarket business is developing nicely and we are working on several new license agreements with well-known brands. Completing the transition to our new warehouse will of course be a priority for the year so that we can begin realizing the considerable improvements in SG&A that this will generate."
Lifetime Hoan Corporation is a leading designer, marketer and distributor of household cutlery, kitchenware, cutting boards, pantryware and bakeware, marketing its products under various trade names including Farberware(R) and Hoffritz(R). Through the use of various brand names, Lifetime Hoan's products are distributed through almost every major retailer in the U.S.
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 HOAN CORPORATION
INCOME STATEMENT
(in 000's, except per share data)
Three Months Ended
December 31,
(Unaudited) %
------------------ Increase
2001 2000 (Decrease)
--------- ------- --------
Net Sales $48,060 $42,714 12.5%
Cost of Sales 27,796 29,647 (6.2)%
------- -------
Gross Profit 20,264 13,067 55.1%
SG&A 18,306 15,006 22.0%
Other Expense (Income) (2) 214
------- -------
Income (Loss) Before Taxes 1,960 (2,153)
Tax Provision 913 (772)
------- -------
Net Income (Loss) $ 1,047 $(1,381)
======= =======
Basic Earnings (Loss) Per Share $0.10 $ (0.13)
======= =======
Weighted Average Shares 10,491 10,506
Diluted Earnings (Loss) Per Share $0.10 $ (0.13)
======= =======
Weighted Average Shares 10,506 10,583
Twelve Months Ended
December 31,
(Unaudited) %
------------------ Increase
2001 2000 (Decrease)
--------- ------- --------
Net Sales $143,538 $129,375 10.9%
Cost of Sales 80,783 75,001 7.7%
------- -------
Gross Profit 62,755 54,374 15.4%
SG&A 56,895 47,903 18.8%
Other Expense/(Income) 465 220 111.4%
------- -------
Income Before Taxes 5,395 6,251 (13.7%)
Tax Provision 2,477 2,817 (12.1%)
------- -------
Net Income $2,918 $3,434 (15.0%)
======= =======
Basic Earnings Per Share $0.28 $ 0.31 (9.7%)
======= =======
Weighted Average Shares 10,492 10,995
Diluted Earnings Per Share $0.28 $ 0.31 (9.7%)
======= =======
Weighted Average Shares 10,537 11,079
LIFETIME HOAN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
2001 2000
--------- --------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 5,021 $ 1,325
Accounts receivable, net 20,742 18,158
Merchandise inventories 42,303 45,595
Prepaid expenses and other current assets 5,934 7,014
--------- --------
TOTAL CURRENT ASSETS 74,000 72,092
PROPERTY AND EQUIPMENT, net 22,376 13,085
INTANGIBLES, net 24,888 25,686
OTHER ASSETS 2,106 1,256
--------- --------
TOTAL ASSETS $ 123,370 $ 112,119
========= ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term borrowings $ 22,847 $ 10,746
Accounts payable and trade acceptances 4,955 6,709
Other current liabilities 17,123 16,619
--------- --------
TOTAL CURRENT LIABILITIES 44,925 34,074
MINORITY INTEREST 384 528
STOCKHOLDERS' EQUITY 78,061 77,517
--------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 123,370 $112,119
========= ========
CONTACT: Lifetime Hoan Corporation
Robert McNally, 516/683-6000
or
Investor Relations:
Lippert/Heilshorn & Associates, Inc.
Harriet Fried or John Nesbett, 212/838-3777
hfried@lhai.com
URL: http://www.businesswire.com
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
Copyright (C) 2002 Business Wire. All rights reserved.