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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) March 1, 2005
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 2.02. Results of Operation and Financial Condition
On March 1, 2005, Lifetime Hoan Corporation ("the Company")
issued a press release setting forth the Company's fourth-
quarter and twelve-month 2004 earnings. A copy of the
Company's press release is attached hereto as Exhibit 99 and
hereby incorporated by reference.
Item 9.01. Financial Statements and Exhibits
c) Exhibits
99 - Press Release, dated March 1, 2005
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: March 1, 2005
EXHIBIT 99
LIFETIME HOAN REPORTS FOURTH QUARTER 2004 RESULTS
WESTBURY, N.Y., March 1, 2005 -- LIFETIME HOAN CORPORATION
(NASDAQ NM: LCUT), a leading designer, marketer and
distributor of housewares, today announced results for the
fourth quarter and full year ended December 31, 2004.
For the fourth quarter of 2004, net sales totaled $68.1
million compared to $62.1 million for the same period of the
prior year. The Company reported net income of $5.3 million
compared to $5.4 million for the fourth quarter of 2003. On
a diluted per share basis, net income was $0.47 per share
compared to $0.49 per share in 2003.
Net sales for the twelve months ended December 31, 2004
totaled $189.5 million compared to $160.4 million for the
same period in 2003, an increase of 18%. Net income for the
period was $8.5 million compared to $8.4 million last year.
On a diluted per share basis, net income was $0.75 per share
compared to $0.78 per share in 2003.
Jeffrey Siegel, Chairman, President and Chief Executive
Officer, commented, "In the fourth quarter, Lifetime's net
sales rose by 10%, but our results were nonetheless below
our expectations for the period. The shortfall was
primarily the result of two factors. First, an important
roll-out with a major customer of our new line of
KitchenAid(R) cutlery extended into the first two weeks of
January, rather than being completed in December 2004, as we
had expected. In addition, sales of our new models of
S'Mores Makers did not reach the levels we had anticipated.
Our original model, introduced in 2003, was an extremely
popular gift item during the holiday season and was a
significant contributor to the 31% sales increase we
achieved in the fourth quarter of 2003. Though our sales
for the fourth quarter of 2004 increased 10%, our SG&A
increased 28%, due primarily to augmenting several key areas
of our Company in anticipation of growth in 2005, as well as
an increase in personnel for the Excel tabletop division
that we acquired in July 2004.
"Our outlook for 2005 is very positive. An important source
of growth will be the expanded placement for our KitchenAid(R)
products that we recently obtained with one of our major
customers. Overall, demand for our KitchenAid(R) products,
including the innovative lines of KitchenAid(R) cutlery we
launched late last year, remains very strong and will be a
primary growth driver in 2005.
"We also expect to realize significant revenue increases
across all our product lines, including contributions from
the new tabletop and cookware categories we added in July
2004 through our acquisition of Excel Importing Corp. New
product introductions will continue to play a significant
role in our growth initiatives, primarily in the second half
of the year. We will be bringing to market new lines of
Sabatier(R) branded cutlery, which, combined with our
offerings under the KitchenAid(R) and Cuisinart(R) brands,
should enable us to increase our presence in the upper-end
of the cutlery market. We also expect to see growth from
the exciting new line of bath accessories our new :USE
division has developed, as we continue to expand our product
line beyond the kitchen into other areas of the home.
"As a result of the wide-ranging growth we expect in our
many product lines, we estimate that Lifetime's net sales
will total approximately $220 million to $230 million in
2005. For the year, we expect earnings per share to total
approximately $0.95 to $1.15."
Lifetime Hoan noted that fourth quarter 2004 sales
attributable to the :USE(R) - Tools for Civilization(R), Gemco
Ware and Excel businesses the Company recently acquired
totaled $5.7 million.
Lifetime Hoan has scheduled a conference call Tuesday, March
1, at 11:00 a.m. Eastern time to discuss fourth-quarter and
full-year 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 Tuesday, November 10, and can
be accessed by dialing (706) 645-9291, conference ID
#4389418. 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
kitchenware, cutlery & cutting boards, bakeware & cookware,
pantryware & spices, tabletop and bath accessories,
marketing its products under various trade names, including
Farberware(R), KitchenAid(R), Cuisinart(R), Hoffritz(R),
Sabatier(R), DBK-Daniel Boulud Kitchen(TM), Joseph Abboud
Environments(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)