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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of the earliest event reported) July 28, 2004
Lifetime Hoan Corporation
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
1-19254 11-2682486
(Commission File Number) (IRS Employer Identification No.)
One Merrick Avenue, Westbury, New York 11590
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (516)683-6000
N/A
(Former name or former address, if changed since last
report)
Item 7. Financial Statements and Exhibits
c) Exhibits
99 - Press Release, dated July 28, 2004
Item 12. Results of Operation and Financial Condition
On July 28, 2004, Lifetime Hoan Corporation ("the Company")
issued a press release setting forth the Company's second-
quarter 2004 earnings. A copy of the Company's press
release is attached hereto as Exhibit 99 and hereby
incorporated by reference.
Signature
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly
authorized.
Lifetime Hoan Corporation
By: /s/ Robert McNally
Robert McNally
Vice President of Finance and
Chief Financial Officer
Date: July 28, 2004
EXHIBIT 99
LIFETIME HOAN REPORTS SECOND QUARTER 2004 RESULTS
Updates Guidance to Reflect Excel Acquisition
WESTBURY, N.Y., July 28, 2004 -- LIFETIME HOAN CORPORATION
(NASDAQ NM: LCUT), a leading designer, marketer and
distributor of housewares, today announced results for the
second quarter and six months ended June 30, 2004.
For the second quarter of 2004, net sales totaled $33.0
million compared to $30.0 million for the same period of the
prior year. The Company reported net income of $203,000, or
$0.02 per diluted share, compared to $724,000, or $0.07 per
diluted share, for the second quarter of 2003.
Net sales for the six months ended June 30, 2004 totaled
$70.2 million compared to $54.2 million for the same period
in 2003, representing a 29.4% increase. Net income for the
period was $548,000, or $0.05 per diluted share, compared to
$120,000, or $0.01 per diluted share, last year.
Jeffrey Siegel, president and chief executive officer,
commented, "Lifetime's second quarter sales were negatively
impacted by several events, including a shift in the start-
up of a number of new sales programs from the second to the
third quarter, primarily as a result of the overall slowdown
in retail sales that took place in June. In addition, new
measures instituted by some of our major customers to
improve inventory turns and lower their in-stock position
also impacted our results."
"We have strengthened Lifetime's infrastructure - including
our product development capabilities, overseas sourcing
presence, and sales/marketing team - to accommodate the
growth we expect in the second half of 2004, which is
traditionally our strongest selling season, and in 2005 and
beyond. Although the added cost of this infrastructure
impacted our quarter-to-quarter earnings comparison, we
believe these initiatives will have a very positive impact
on Lifetime's long-term growth."
Mr. Siegel continued, "Our KitchenAid(R) programs continue to
be a driving force in the company's growth, helping us
achieve excellent distribution across all channels of trade.
Our line of all-silicone bakeware products has been selling
especially well and has become the leading brand in its
category. In addition, we are on schedule to begin
shipping our KitchenAid branded kitchen cutlery in the third
quarter. To date, industry reaction has been excellent, and
we expect to have another major success with this additional
business opportunity under the KitchenAid brand.
"An exciting at-home entertaining product we will also ship
in the third quarter is our new Smokeless Tabletop Griller(TM),
designed to capitalize on the growing interest of consumers
in 'low-carb' cooking. The griller, which enables family
and friends to cook their main course together around the
table, has received excellent reception from retailers.
"On July 23, 2004, we announced Lifetime's acquisition of
the business and certain assets of Excel Importing Corp.,
which designs, markets and distributes a wide array of high
quality cutlery, tabletop, cookware and barware products.
We believe Excel's powerful brands and strong customer
relationships will be a great addition for Lifetime and
expect the acquisition to be accretive to earnings in 2005.
"As a result of the acquisition of Excel, we have reviewed
our forecast and refined our guidance for 2004. We are
raising our net sales guidance for the year to approximately
$202 - 212 million from $195 - $205 million. Due to the
added operating expenses we expect to incur until we fully
integrate this acquisition, we are lowering our earnings per
share estimate to approximately $0.95 - $1.10 from $0.98 -
$1.13."
Lifetime Hoan noted that second-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 $2.0 million.
Separately, the Company announced that its Board of
Directors declared a regular quarterly cash dividend of
$0.0625 per share, payable on August 20, 2004 to
shareholders of record on August 4, 2004.
Lifetime Hoan has scheduled a conference call Wednesday,
July 28, at 11:00 a.m. Eastern time to discuss second-
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 Wednesday, August 4, and can
be accessed by dialing (706) 645-9291, conference ID
#8889975. 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 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), KitchenAid(R), Cuisinart(R),
Hoffritz(R), Roshco(R), Baker's Advantage(R), Kamenstein(R),
CasaModa(TM), Hoan(R), Gemco(R) 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.
Tables to follow
COMPANY CONTACT: INVESTOR RELATIONS:
Robert McNally Harriet Fried
Chief Financial Officer Lippert/Heilshorn &
(516) 683-6000 Associates, Inc.
(212) 838-3777 or
hfried@lhai.com
LIFETIME HOAN CORPORATION
INCOME STATEMENT
(in 000's, except per share data)