Lifetime Hoan Reports 53% Increase in First-Quarter Net Sales; Raises 2004 Guidance
WESTBURY, N.Y.--(BUSINESS WIRE)--April 29, 2004--LIFETIME HOAN CORPORATION (NASDAQ NM: LCUT), a leading designer, marketer and distributor of housewares, today announced results for the first quarter ended March 31, 2004.
For the first quarter of 2004, net sales increased 53% to $37.1 million from $24.3 million in the same period of the prior year. The Company reported net income of $345,000, or $0.03 per diluted share, compared to a net loss of $602,000, or $0.06 per diluted share, for the same period in 2003.
Jeffrey Siegel, president and chief executive officer, commented, "The first quarter of 2004 was another period of strong growth for Lifetime Hoan. The impressive increase in the Company's net sales was fueled principally by growth of our lines of KitchenAid(R) branded products. Since we launched our KitchenAid program in 2001, it has gained strength every year, and 2004 is already showing a continuation of that very positive trend.
"Lifetime's business is driven by exciting new products, innovative designs and great brands. One of the reasons we expect 2004 to a very successful year is that we plan to launch more new lines than ever before in our history. Among the additions we have already announced is KitchenAid(R) branded kitchen cutlery, which is scheduled to roll out in the third quarter. Another important contribution will come from our expansion of the CasaModa(R) line, which is focused on the growing market for casual home entertainment. In fact, we plan to introduce new products in every major category in our business during the year."
Lifetime Hoan noted that first-quarter 2004 sales attributable to the :USE(R) - Tools for Civilization(R) and Gemco Ware, Inc. businesses the Company acquired in the fourth quarter of 2003 totaled $1.5 million. Without the USE and Gemco sales, Lifetime's net sales for the period would have increased 46.5% over last year's same quarter.
The Company raised its net sales guidance for 2004 to approximately $195-$205 million from $190-$200 million. It also raised its earnings per share estimate for 2004 to approximately $0.98-$1.13 from $0.95-$1.10.
Lifetime Hoan has scheduled a conference call Thursday, April 29 at 11:00 a.m. Eastern time to discuss first-quarter-2004 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, May 6, and can be accessed by dialing (706) 645-9291, conference ID #6684178. A live webcast of the call will be broadcast at the Company's web site, www.lifetime.hoan.com. For those who cannot listen to the live broadcast, an audio replay of the call will also be available on the site.
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). Lifetime Hoan's KitchenAid branded products are designed, manufactured and marketed under a license with Whirlpool Corporation. The Company's Cuisinart branded products are designed, manufactured and marketed under a license with Cuisinart. 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.
Tables to follow
LIFETIME HOAN CORPORATION
INCOME STATEMENT
(in 000's, except per share data)
Three Months Ended
March 31,
(Unaudited)
-------------------------
2004 2003 %Increase
------------- --------- ---------
Net Sales $37,129 $24,284 52.9%
Cost of Sales 21,689 13,426 61.5%
Distribution Expenses 5,181 4,454 16.3%
SG&A 9,574 7,321 30.8%
------------- ---------
Income (Loss) from Operations 685 (917)
Interest Expense 127 111
Other Income (15) (17)
------------- ---------
Income (Loss) Before Taxes 573 (1,011)
Tax Provision (Benefit) 228 (409)
------------- ---------
Net Income (Loss) $345 ($602)
============= =========
Diluted Earnings (Loss) Per Share
from Net Income $0.03 ($0.06)
============= =========
Weighted Average Shares 11,141 10,561
LIFETIME HOAN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, March 31,
2004 2003
(Unaudited) (Unaudited)
----------------------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 719 $ 108
Accounts receivable, net 22,579 12,680
Merchandise inventories 48,564 42,763
Prepaid expenses and other current
assets 7,357 6,646
----------------------------
TOTAL CURRENT ASSETS 79,219 62,197
PROPERTY AND EQUIPMENT, net 20,200 20,408
INTANGIBLES, net 25,543 23,855
OTHER ASSETS 2,093 2,119
----------------------------
TOTAL ASSETS $127,055 $108,579
============================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term borrowings $ 13,000 $ 11,500
Accounts payable and trade acceptances 6,859 3,871
Other current liabilities 16,281 13,752
----------------------------
TOTAL CURRENT LIABILITIES 36,140 29,123
DEFERRED RENT & OTHER LONG TERM
LIABILITIES 1,639 553
DEFERRED INCOME TAX LIABILITIES 3,128 1,857
STOCKHOLDERS' EQUITY 86,148 77,046
----------------------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $127,055 $108,579
============================
CONTACT: Lifetime Hoan Corporation
Robert McNally, 516-683-6000
or
Lippert/Heilshorn & Associates, Inc.
Harriet Fried, 212-838-3777
hfried@lhai.com
SOURCE: Lifetime Hoan Corporation