Lifetime Hoan Announces First Quarter 2003 Results; Reaffirms Sales and Earnings Guidance for 2003
WESTBURY, N.Y.--(BUSINESS WIRE)--April 29, 2003--LIFETIME HOAN CORPORATION (NASDAQ NM: LCUT), a leading marketer of housewares, today announced results for the first quarter ended March 31, 2003.
Net sales for the quarter were $24.3 million versus $24.2 million in the first quarter of 2002. The Company reported a net loss from continuing operations of $0.6 million, or $0.06 per diluted share, compared to a net loss from continuing operations of $1.1 million, or $0.10 per diluted share, for the same period in 2002.
Jeffrey Siegel, president and chief executive officer, commented, "Net sales for the first quarter of 2003 were slightly below plan, due principally to weak demand from many of our major customers. As many of these retailers have reported, retail sales in the quarter were affected by the economy, uncertainty over events in the Middle East, unfavorable shopping weather in many parts of the country and the late Easter holiday."
Mr. Siegel continued, "While many of our customers expect consumer demand to remain soft for the balance of the year, we believe the combination of new product introductions and significant additional placements of our core lines will enable Lifetime Hoan to achieve the results we forecasted earlier in the year."
"As we discussed at year-end, Lifetime Hoan has developed a sizable pipeline of exciting, new products that we expect to be well received by retailers and consumers alike. These include the products from our new CasaModa(R) division, which is focused on the growing market for casual home entertainment. These products are scheduled to begin shipping in the third quarter. Our new distribution center continues to function smoothly, and we look forward to an acceleration in sales as 2003 progresses and our new products and new placements come on stream."
The Company reaffirmed its estimates that Lifetime's net sales in 2003 will total approximately $140 million to $150 million. Earnings per share are estimated to total approximately $0.65 to $0.85 for the year.
As previously announced, Lifetime sold its 51% interest in the businesses of each of Prestige Italiana, Spa. and Prestige Haushaltswaren GmbH (together, the "Prestige Companies") in September 2002. The loss from the Prestige Companies' operations for the first quarter of 2002 is reflected as discontinued operations on the Company's income statements.
Separately, the Company announced that its Board of Directors declared a regular quarterly cash dividend of $0.0625 per share, payable on May 20, 2003 to shareholders of record on May 5, 2003.
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
2003 2002 (Decrease)
-------- -------- ----------
Net Sales $ 24,284 $ 24,187 0.4%
Cost of Sales 13,426 13,126 2.3%
Distribution Expenses 4,454 5,816 (23.4%)
SG&A 7,321 6,852 6.8%
-------- --------
(Loss) from Operations (917) (1,607) (42.9%)
Interest Expense 111 227 (51.1%)
Other (Income) (17) (22) (22.7%)
-------- --------
(Loss) before Taxes (1,011) (1,812) (44.2%)
Tax Provision (409) (732) (44.1%)
-------- --------
Loss from Continuing Operations (602) (1,080) (44.3%)
(Loss) from Discontinued Operations - (117)
-------- --------
Net (Loss) ($ 602) ($1,197) (49.7%)
======== ========
Diluted Loss Per Share from Continuing
Operations ($0.06) ($0.10) (40.0%)
======== ========
Weighted Average Shares 10,561 10,493
Diluted Loss Per Share from Net Income ($0.06) ($0.11) (45.5%)
======== ========
Weighted Average Shares 10,561 10,493
LIFETIME HOAN CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March March
31, 2003 31, 2002
-----------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 108 $ 144
Accounts receivable, net 12,680 14,428
Merchandise inventories 42,763 40,264
Prepaid expenses and other current assets 4,789 6,421
Current assets discontinued operations - 5,873
-----------------
TOTAL CURRENT ASSETS 60,340 67,130
PROPERTY AND EQUIPMENT, net 20,408 21,877
INTANGIBLES, net 23,855 24,251
OTHER ASSETS 2,119 2,073
OTHER ASSETS DISCONTINUED OPERATIONS - 787
-----------------
TOTAL ASSETS $106,722 $116,118
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term borrowings $ 11,500 $ 17,809
Accounts payable and trade acceptances 3,871 5,549
Other current liabilities 14,305 12,889
Other current liabilities discontinued operations - 3,033
-----------------
TOTAL CURRENT LIABILITIES 29,676 39,280
MINORITY INTEREST - 457
STOCKHOLDERS' EQUITY 77,046 76,381
-----------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $106,722 $116,118
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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