Lifetime Hoan Announces Fourth Quarter and Year-End 2002 Results
For the fourth quarter of 2002, net sales increased to $47.5 million from $46.4 million in the same period last year. Income from continuing operations totaled $2.8 million, or $0.26 per diluted share, compared to income from continuing operations of $1.3 million, or $0.13 per diluted share, for the same period in 2001.
For the twelve months ended December 31, 2002, net sales totaled $131.2 million compared to $135.1 million in 2001. Income from continuing operations totaled $3.6 million, or $0.34 per diluted share, in both 2002 and 2001.
Jeffrey Siegel, president and chief executive officer, commented, "Lifetime's fourth-quarter performance was in line with our expectations, even though the overall retail climate continued to be weak. Each of our three major business units generated higher sales in the period, partly due to the success of our new lines and to the "cocooning" trend for people to stay, eat and entertain at home, which bodes well for the type of products we offer. In addition we have begun to see improved operating efficiencies in our Robbinsville warehouse. All warehouse systems have continued to function very smoothly, which enabled us to easily keep pace with the higher shipping demands of our busiest season."
"Lifetime's business outlook for 2003 is very promising. We have developed a sizable pipeline of innovative and exciting new products that we believe will generate higher growth rates for the Company. Our expanding line of KitchenAid(R) utensils, which is now entering its second full year of sales, will be an important sales driver in 2003. Equally important, we are increasing the placement of our major Farberware(R) brand and our line of Kamenstein(R) pantryware. The rollout of our KitchenAid(R) bakeware will continue through the fall of 2003, as will the introduction of our line of Cuisinart(R) kitchen cutlery."
"Most recently, we created a new division, CasaModa(TM), which focuses on home entertainment, wine and bar accessories. This is a very natural extension to Lifetime's existing business, and we expect it to become an important part of the Company. CasaModa's line of new products was very well received at the International Housewares Association tradeshow in January, and we have been working closely with our suppliers so that production can be ramped up quickly."
In 2003, management estimates that Lifetime's net sales 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 on sale, together with the losses from the Prestige Companies' operations for all periods presented, are reflected as discontinued operations on the Company's income statements.
Investors and interested parties will have the opportunity to listen to management's discussion of Lifetime's fourth-quarter results in a conference call to be held today, Thursday, February 27, at 11:00 a.m. ET. The dial-in number for the conference call is (703) 871-3086. A replay of the call will also be available through Thursday, March 6, and can be accessed by dialing (703) 925-2533, passcode #6405218. A live webcast of the conference call will be broadcast on the Investor Relations portion of 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). 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 (unaudited)
(in 000's, except per share data)
Three Months
Ended % Increase
December 31,
-----------------
2002 2001 (Decrease)
-------- -------- ----------
Net Sales $47,515 $46,381 2.4%
Cost of Sales 27,945 26,670 4.8%
-------- --------
Gross Profit 19,570 19,711 (0.7%)
SG&A Expenses 14,548 17,216 (15.5%)
Interest Expense 316 283 11.7%
Other (Income) (19) (33) (42.4%)
-------- --------
Income Before Taxes 4,725 2,245 110.5%
Tax Provision 1,936 907 113.5%
-------- --------
Income from Continuing Operations 2,789 1,338 108.4%
(Loss) from Discontinued Operations, net
of tax - (291)
(Loss) on Disposal of Discontinued
Operations (277) -
-------- --------
Net Income $2,512 $1,047 139.9%
======== ========
Diluted Earnings Per Share from Continuing
Operations $ 0.26 $ 0.13 100.0%
======== ========
Weighted Average Shares 10,561 10,506
Diluted Earnings Per Share from
Net Income $ 0.24 $ 0.10 140.0%
======== ========
Weighted Average Shares 10,561 10,506
LIFETIME HOAN CORPORATION
INCOME STATEMENT
(in 000's, except per share data)
Twelve Months Ended
December 31, % Increase
-------------------
2002 2001 (Decrease)
--------- --------- ----------
Net Sales $131,219 $135,068 (2.8%)
Cost of Sales 73,145 75,626 (3.3%)
--------- ---------
Gross Profit 58,074 59,442 (2.3%)
SG&A Expenses 51,178 52,464 (2.5%)
Interest Expense 1,004 1,015 (1.1%)
Other (Income) (66) (98) (32.7%)
--------- ---------
Income Before Taxes 5,958 6,061 (1.7%)
Tax Provision 2,407 2,449 (1.7%)
--------- ---------
Income from Continuing Operations 3,551 3,612 (1.7%)
(Loss) from Discontinued Operations, net
of tax (495) (694)
(Loss) on Disposal of Discontinued
Operations, net of income tax benefit
of $225 (811) -
--------- ---------
Net Income $2,245 $2,918 (23.0%)
========= =========
Diluted Earnings Per Share from
Continuing Operations $ 0.34 $ 0.34 0.0%
========= =========
Weighted Average Shares 10,541 10,537
Diluted (Loss) Earnings Per Share from
Net Income $ 0.21 $ 0.28 (25.0%)
========= =========
Weighted Average Shares 10,541 10,537
LIFETIME HOAN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December December
31, 31,
2002 2001
--------- ---------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $62 $5,021
Accounts receivable, net 19,143 18,696
Merchandise inventories 41,333 39,681
Prepaid expenses and other current assets 3,952 4,643
Current Assets Discontinued Operations - 5,959
--------- ---------
TOTAL CURRENT ASSETS 64,490 74,000
PROPERTY AND EQUIPMENT, net 20,850 22,111
INTANGIBLES, net 23,952 24,342
OTHER ASSETS 2,123 2,106
OTHER ASSETS DISCONTINUED OPERATIONS - 811
--------- ---------
TOTAL ASSETS $111,415 $123,370
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term borrowings $14,200 $22,847
Accounts payable and trade acceptances 2,720 3,945
Other current liabilities 16,357 15,231
Other current liabilities discontinued operations - 2,902
--------- ---------
TOTAL CURRENT LIABILITIES 33,277 44,925
MINORITY INTEREST DISCONTINUED OPERATIONS - 384
STOCKHOLDERS' EQUITY 78,138 78,061
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $111,415 $123,370
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CONTACT:
COMPANY CONTACT
Robert McNally, 516/683-6000
or
INVESTOR RELATIONS
Lippert/Heilshorn & Associates, Inc.
Harriet Fried, 212/838-3777
hfried@lhai.com