Sales and Net Income Improved Significantly

 

 

WESTBURY, NY, April 27, 2000 -- LIFETIME HOAN CORPORATION (NASDAQ NM: LCUT): a leading marketer of cutlery, kitchenware, cutting boards and bakeware, today announced results for the first quarter ended March 31, 2000. Net sales were up 55% to $27.6 million for the first quarter of 2000, as compared to $17.8 million in the first quarter of 1999. Net income for the period was $1.4 million as compared to net income of $257,000 recorded for the comparable period in 1999. Diluted earnings per share for the 2000 quarter were $0.12 as compared to $0.02 in the prior year period. The current period’s results reflect the positive impact of the Company’s return to normalized shipping rates and turnaround times for customer orders, as all of its warehouse issues have been resolved. To a lesser extent, the quarterly sales comparisons also benefited from the Company’s September 1999 acquisition of a 51% controlling interest in the Prestige companies based in Italy and Germany.

 

In commenting on the results, Milton Cohen, Chairman and CEO, stated, “The operating problems we encountered in our warehouse during 1999 substantially reduce the value of any comparison with last year’s results. Using instead 1998, net sales for the first quarter of 2000 were up 26% as compared to the first quarter of 1998. This increase takes into account new product introductions, increased demand for our brands, overseas expansion, and the Roshco acquisition.”

 

Jeffrey Siegel, President of Lifetime Hoan commented, “Product demand in the U.S. remains strong, especially for merchandise on the high end, as evidenced by the receptiveness of buyers at the January housewares trade show and our overall pattern of orders. Through our affiliation with the Prestige Companies which market products under the highly recognized Prestige brand in Europe, we plan to introduce several hundred new products into the European market in 2000 and to lower the cost of merchandise for these companies through our strong sourcing channels. The success of our branding strategy in the U.S. which began in 1995 has served as a model for expansion of this strategy overseas.”

 

Mr. Cohen concluded, “Market conditions have afforded the Company the opportunity to purchase shares of the Company’s common stock in the open market at prices the Board of Directors believes to be attractive. During the first quarter of 2000, the Company purchased an additional 95,000 shares, bringing the total number of shares purchased pursuant to the Board’s current program to 877,500. In March 2000, the Board increased the total number of shares which the Company may purchase to 2,000,000 shares. The Board intends to continue this program at its discretion in light of market conditions.”

 

The Company also announced that its Board of Directors declared a regular quarterly cash dividend of $0.0625 per share, payable on May 19, 2000 to shareholders of record on May 5, 2000.

 

Lifetime Hoan Corporation is a leading designer, marketer and distributor of household cutlery, kitchenware, cutting boards and bakeware, marketing its products under various trade names including Farberware®, Hoffritz® and Revere®. Through the use of various brand names, Lifetime Hoan’s products are distributed through almost every major retailer in the U.S. including Bed Bath & Beyond, WalMart, Kmart, Target, Macy’s, Saks Inc. and Dayton Hudson.

 

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.

 

COMPANY CONTACT: INVESTOR RELATIONS:

Robert McNally John Heilshorn/Klea Theoharis

Chief Financial Officer Lippert/Heilshorn & Associates, Inc.

(516) 683-6000 (212) 838-3777 or klea@lhai.com

 

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LIFETIME HOAN COPORATION

INCOME STATEMENT

(in 000’s, except per share data)

(Unaudited)

 

Quarter Ended March 31,

 

 

		2000		1999		% Increase
Net Sales		$ 27,609		$ 17,817		55.0%
Cost of Sales		14,517		9,164		58.4%
Gross Profit		13,092		8,653		51.3%
SG&A		10,763		8,271		30.1%
Other Expense (Income)		(57)		(46)		23.9%
Income Before Taxes		2,386		428		457.5%
Tax Provision		1,013		171		492.4%
Net Income		$ 1,373		$ 257		434.2%
Basic Earnings Per Share		$ 0.12		$ 0.02
Weighted Average Shares		11,802		12,591
Diluted Earnings Per Share		$ 0.12		$ 0.02
Weighted Average Shares		11,850		12,821

 

 

 

 

LIFETIME HOAN COPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

 

				March 31, 2000			December 31, 1999
ASSETS
CURRENT ASSETS
Cash and cash equivalents				$ 118			$ 1,563
Accounts receivable, net				18,036			22,443
Merchandise inventories				52,681			54,046
Prepaid expenses and other current assets				4,266			4,252
TOTAL CURRENT ASSETS				75,101			82,304
PROPERTY AND EQUIPMENT, net				12,548			12,597
INTANGIBLES, NET				20,236			20,310
OTHER ASSETS				1,224			1,173
TOTAL ASSETS				$ 109,109			$ 116,384
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Short-term borrowings				$ 1,265			$ 8,073
Accounts payable and trade acceptances				4,291			3,783
Other current liabilities				14,669			15,832
TOTAL CURRENT LIABILITIES				20,225			27,688
MINORITY INTEREST				981			888
STOCKHOLDERS’ EQUITY				87,903			87,808
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY				$ 109,109			$ 116,384

 

 

 

 

 

 

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