Lifetime Hoan Continues Strong Growth in Sales and Earnings in Third Quarter 2003
WESTBURY, N.Y.--(BUSINESS WIRE)--Oct. 30, 2003--LIFETIME HOAN CORPORATION (NASDAQ NM: LCUT), a leading marketer of housewares, today announced results for the third quarter ended September 30, 2003.
Net sales for the quarter increased 37% to a record $44.1 million from $32.2 million in the third quarter of 2002. Income from continuing operations increased 135% to $2.9 million from $1.2 million for the same period in 2002. Earnings per diluted share from continuing operations more than doubled to $0.27 per share from $0.12 per share in last year's third quarter.
Jeffrey Siegel, president and chief executive officer, commented, "We are very pleased with the substantial growth in sales and net income Lifetime Hoan realized in the third quarter. As we expected, the combination of exciting new products and significant additional placements produced very positive results in our lines of kitchen tools and gadgets, bakeware and Kamenstein pantryware. Our new S'mores Maker, which became widely available at many of our major retail customers at the end of August, has been just as popular as we predicted.
"Lifetime's recent acquisition of the business and certain assets of :USE(R) - Tools for Civilization(R), a company that creates contemporary lifestyle products for the home, is an exciting step forward for us. Its reputation for design excellence in decorative hardware, mirrors and lighting for the bath, as well as decorative window accessories, is the perfect complement to our existing expertise and will help us expand our product line beyond the kitchen, as well as enabling us to gain distribution in the strong 'do-it-yourself' category."
Mr. Siegel continued, "With the completion of the third quarter, we are updating our earnings guidance for 2003. We now expect Lifetime's net sales for the year to total approximately $155 to $160 million. Earnings per share are estimated to total approximately $0.75 to $0.80."
As announced in 2002, Lifetime sold its 51% interest in the businesses of each of Prestige Italiana, Spa. and Prestige Haushaltswaren GmbH (together, the "Prestige Companies"). The loss from the Prestige Companies' operations for the third 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 November 20, 2003 to shareholders of record on November 4, 2003.
Lifetime Hoan has scheduled a conference call Thursday, October 30 at 11:30 a.m. Eastern Time to discuss third-quarter 2003 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 Thursday, November 6, and can be accessed by dialing (706) 645-9291, conference ID #3393554. 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 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
CONSOLIDATED INCOME STATEMENTS
(in 000's, except per share data)
Three Months Ended
September 30,
(Unaudited) % Increase
-----------------------------
2003 2002 (Decrease)
-------------- -------------- ---------------
Net Sales $44,068 $32,235 36.7%
Cost of Sales 25,552 17,612 45.1%
Distribution Expenses 5,337 4,885 9.3%
SG&A 8,163 7,435 9.8%
-------------- --------------
Income from Operations 5,016 2,303 117.8%
Interest Expense 189 239 (20.9%)
Other (Income) (16) (18) (11.1%)
-------------- --------------
Income Before Taxes 4,843 2,082 132.6%
Tax Provision 1,956 854 129.0%
-------------- --------------
Income from Continuing
Operations 2,887 1,228 135.1%
Loss from Discontinued
Operations - (685)
-------------- --------------
Net Income $2,887 $543
============== ==============
Diluted Earnings Per
Share from Continuing
Operations $0.27 $0.12 125.0%
============== ==============
Weighted Average Shares 10,784 10,536
Diluted Earnings Per
Share $0.27 $0.05
============== ==============
Weighted Average Shares 10,784 10,536
LIFETIME HOAN CORPORATION
CONSOLIDATED INCOME STATEMENTS
(in 000's, except per share data)
Nine Months Ended
September 30,
(Unaudited) % Increase
-------------------------------
2003 2002 (Decrease)
--------------- --------------- -------------
Net Sales $98,302 $83,703 17.4%
Cost of Sales 55,982 45,199 23.9%
Distribution Expenses 14,103 15,543 (9.3%)
SG&A 22,742 21,085 7.9%
--------------- ---------------
Income from Operations 5,475 1,876 191.8%
Interest Expense 480 687 (30.1%)
Other (Income) (51) (47) 8.5%
--------------- ---------------
Income Before Taxes 5,046 1,236 308.3%
Tax Provision 2,038 471 332.7%
--------------- ---------------
Income from Continuing
Operations 3,008 765 293.2%
Loss from Discontinued
Operations - (1,029)
--------------- ---------------
Net Income (Loss) $3,008 ($264)
=============== ===============
Diluted Income Per Share
from Continuing
Operations $0.28 $0.07
=============== ===============
Weighted Average Shares 10,660 10,534
Diluted Income (Loss) Per
Share $0.28 ($0.03)
=============== ===============
Weighted Average Shares 10,660 10,534
LIFETIME HOAN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, September 30,
2003 2002
(Unaudited) (Unaudited)
------------------------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $213 $25
Accounts receivable, net 28,114 18,440
Merchandise inventories 56,357 53,226
Prepaid expenses and other current
assets 4,497 6,233
------------------------------
TOTAL CURRENT ASSETS 89,181 77,924
PROPERTY AND EQUIPMENT, net 19,985 21,059
INTANGIBLES, net 23,660 24,050
OTHER ASSETS 2,120 2,174
------------------------------
TOTAL ASSETS $134,946 $125,207
==============================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term borrowings $26,500 $27,600
Accounts payable and trade acceptances 7,482 5,833
Other current liabilities 20,822 15,507
------------------------------
TOTAL CURRENT LIABILITIES 54,804 48,940
STOCKHOLDERS' EQUITY 80,142 76,267
------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $134,946 $125,207
==============================
CONTACT: Lifetime Hoan Corporation, Westbury
Company Contact:
Robert McNally, 516-683-6000
or
Lippert/Heilshorn & Associates, Inc.
Investor Relations:
Harriet Fried, 212-838-3777
hfried@lhai.com
SOURCE: Lifetime Hoan Corporation