Lifetime Hoan Reports Record Sales and Strong Earnings Growth in Second Quarter 2003; New Products and Placements Produce Strong Outlook for Remainder of Year
WESTBURY, N.Y.--(BUSINESS WIRE)--July 31, 2003--LIFETIME HOAN CORPORATION (NASDAQ NM: LCUT), a leading marketer of housewares, today announced results for the second quarter ended June 30, 2003.
Net sales for the quarter were approximately $30.0 million versus $27.3 million in the second quarter of 2002. The Company reported income from continuing operations of $724,000, or $0.07 per diluted share, compared to income from continuing operations of $617,000, or $0.06 per diluted share, for the same period in 2002.
Jeffrey Siegel, president and chief executive officer, commented, "Lifetime Hoan's performance for the quarter was on track with our expectations. Despite the continued soft retail environment, we achieved a 10% growth in sales, primarily through increased sales of kitchen tools and gadgets and Kamenstein(R) pantryware."
"We recently began shipping products from our new CasaModa(R) line, which is focused on the growing market for casual home entertainment. These items include our S'mores Maker, a new, patent-pending, home entertaining product. Based on initial shipments, this product, which is designed for both indoor and outdoor use, has been an instant success at retail, outpacing our expectations and even making one of our major customers' "best seller" list. We expect the S'mores Maker to be widely available at many of our major retail customers by the end of August. We have also developed a number of variations of this product for introduction in 2004."
Mr. Siegel continued, "The combination of exciting new products and significant additional placements of our core lines has produced a very positive outlook for Lifetime for the balance of 2003. We are therefore updating our earnings guidance, reflecting our increased confidence in our performance for the remainder of the year. We now expect Lifetime's net sales in 2003 to total approximately $148 million to $155 million. Earnings per share are estimated to total approximately $0.75 to $0.85 for the year."
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 second 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 August 19, 2003 to shareholders of record on August 5, 2003.
Lifetime Hoan has scheduled a conference call Thursday, July 31 at 11:00 a.m. Eastern Time to discuss second-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 Friday, August 1, and can be accessed by dialing (706) 645-9291, conference ID #1745424. 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
June 30,
(Unaudited) % Increase
-----------------
2003 2002 (Decrease)
-------- -------- ----------
Net Sales $29,950 $27,281 9.8%
Cost of Sales 17,003 14,461 17.6%
Distribution Expenses 4,302 4,888 (12.0%)
SG&A 7,268 6,752 7.6%
-------- --------
Income from Operations 1,377 1,180 16.7%
Interest Expense 180 221 (18.6%)
Other Income (18) (7)
-------- --------
Income Before Taxes 1,215 966 25.8%
Tax Provision 491 349 40.7%
-------- --------
Income from Continuing Operations 724 617 17.3%
Loss from Discontinued Operations - (227)
-------- --------
Net Income $724 $390 85.6%
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Diluted Earnings Per Share from Continuing
Operations $0.07 $0.06 16.7%
======== ========
Weighted Average Shares 10,637 10,574
Diluted Earnings Per Share $0.07 $0.04 75.0%
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Weighted Average Shares 10,637 10,574
LIFETIME HOAN CORPORATION
CONSOLIDATED INCOME STATEMENTS
(in 000's, except per share data)
Six Months Ended
June 30,
(Unaudited) % Increase
-----------------
2003 2002 (Decrease)
-------- -------- ----------
Net Sales $54,234 $51,468 5.4%
Cost of Sales 30,430 27,587 10.3%
Distribution Expenses 8,756 10,658 (17.8%)
SG&A 14,589 13,650 6.9%
-------- --------
Income (Loss) from Operations 459 (427)
Interest Expense 292 448 (34.8%)
Other Income (35) (29) 20.7%
-------- --------
Income (Loss) Before Taxes 202 (846)
Tax Provision (Benefit) 82 (383)
-------- --------
Income (Loss) from Continuing Operations 120 (463)
Loss from Discontinued Operations - (344)
-------- --------
Net Income (Loss) $120 ($807)
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Diluted Earnings (Loss) Per Share from
Continuing Operations $0.01 ($0.04)
======== ========
Weighted Average Shares 10,599 10,495
Diluted Earnings (Loss) Per Share $0.01 ($0.08)
======== ========
Weighted Average Shares 10,599 10,495
LIFETIME HOAN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, June 30,
2003 2002
(Unaudited)(Unaudited)
----------------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 132 $ 266
Accounts receivable, net 17,512 13,213
Merchandise inventories 46,564 46,036
Prepaid expenses and other current assets 4,243 5,593
Current assets of discontinued operations - 6,438
----------------------
TOTAL CURRENT ASSETS 68,451 71,546
PROPERTY AND EQUIPMENT, net 19,939 21,613
INTANGIBLES, net 23,757 24,148
OTHER ASSETS 2,090 2,045
OTHER ASSETS OF DISCONTINUED OPERATIONS - 826
----------------------
TOTAL ASSETS $114,237 $120,178
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term borrowings $ 15,500 $ 22,094
Accounts payable and trade acceptances 6,331 6,080
Accrued expenses and other current liabilities 15,241 12,354
Current liabilities of discontinued operations - 3,113
----------------------
TOTAL CURRENT LIABILITIES 37,072 43,641
MINORITY INTEREST - 240
STOCKHOLDERS' EQUITY 77,165 76,297
----------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $114,237 $120,178
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CONTACT: Lifetime Hoan Corporation
Robert McNally, 516-683-6000
or
Investor Relations:
Lippert/Heilshorn & Associates, Inc.
Harriet Fried, 212-838-3777
hfried@lhai.com
SOURCE: Lifetime Hoan Corporation