Lifetime Hoan Announces First Quarter 2002 Results
Expands KitchenAid(R) License to Include Bakeware and Signs Exclusive License with Cuisinart(R) for Kitchen Cutlery
LIFETIME HOAN CORPORATION (NASDAQ NM: LCUT), a leading marketer of housewares, today announced results for the first quarter ended March 31, 2002.Net sales for the quarter were $26.4 million versus $31.3 million in the first quarter of 2001. The Company reported a net loss for the first quarter of $1.2 million, or $0.11 per diluted share, compared to net income of $639,000, or $0.06 per diluted share, for the same period in 2001.
Jeffrey Siegel, president and chief executive officer, commented, "As anticipated, results for the quarter were impacted by our transition to Lifetime's new, automated warehouse in Robbinsville, New Jersey. We began shipping from the new facility in mid-January and the complicated start-up process temporarily reduced the number of shipments we could process. The upgraded software and automated sortation systems are now working smoothly, and during April we shipped well above last year's level. Our extensive line of KitchenAid(R) utensils continues to be a great success with customers and consumers alike, and we are now in a position to fulfill the many orders we are receiving."
Mr. Siegel continued, "We are very happy to announce two extremely exciting initiatives that came to fruition in the first quarter. Working closely with Whirlpool Corporation, the parent of KitchenAid, we expanded our exclusive license for kitchen utensils to include the bakeware category. Beginning in the third quarter of 2002, we will introduce the first line of KitchenAid(R) bakeware. The line will initially consist of 12 of the most important SKUs in bakeware and will incorporate many unique features that, based on the trade's reaction to date, we believe will be very well received.
"Equally important, we recently secured an exclusive license agreement to produce and market kitchen cutlery under the world-famous Cusinart(R) name. Cusinart's choice of Lifetime underscores our Company's reputation for exceptional craftsmanship, style and durability. Well before the license was signed, we were actively developing several unique, high-end cutlery lines. As a result, we are positioned to begin shipping Cuisinart(R) cutlery in the third quarter of 2002."
Separately, the Company announced that its Board of Directors declared a regular quarterly cash dividend of $0.0625 per share, payable on May 20, 2002 to shareholders of record on May 6, 2002.
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
March 31,
(Unaudited) % Increase
--------------------- (Decrease)
2002 2001 -------------
--------- --------
Net Sales $26,398 $31,307 (15.7%)
Cost of Sales 14,394 17,367 (17.1%)
----------- ---------
Gross Profit 12,004 13,940 (13.9%)
SG&A 13,779 12,692 8.6%
Interest Expense 286 202 41.6%
Other (Income) (141) (84) 67.9%
----------- ----------
(Loss) Income
Before Taxes (1,920) 1,130
Tax (Benefit) Provision (723) 491
------------ ---------
Net (Loss) Income ($ 1,197) $639
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Basic (Loss)
Earnings Per Share ($0.11) $ 0.06
============ ==========
Weighted Average Shares 10,493 10,497
Diluted (Loss)
Earnings Per Share ($0.11) $ 0.06
============ ==========
Weighted
Average Shares 10,493 10,560
LIFETIME HOAN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, December 31,
2002 2001
---------------- --------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 144 $ 5,021
Accounts receivable, net 16,597 20,742
Merchandise inventories 42,687 42,303
Prepaid expenses and
other current assets 7,702 5,934
---------------- --------------
TOTAL CURRENT ASSETS 67,130 74,000
PROPERTY AND EQUIPMENT, net 22,124 22,376
INTANGIBLES, net 24,791 24,888
OTHER ASSETS 2,073 2,106
---------------- --------------
TOTAL ASSETS $ 116,118 $ 123,370
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term borrowings $17,809 $ 22,847
Accounts payable and trade acceptances 6,688 4,955
Other current liabilities 14,783 17,123
---------- --------------
TOTAL CURRENT LIABILITIES 39,280 44,925
MINORITY INTEREST 457 384
STOCKHOLDERS' EQUITY 76,381 78,061
---------- -------------
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY $ 116,118 $ 123,370
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CONTACT:
Lifetime Hoan Corporation, Westbury
Robert McNally, 516/683-6000
or
Lippert/Heilshorn & Associates, Inc., New York
Investor Relations:
Harriet Fried, 212/838-3777
hfried@lhai.com