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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of the earliest event reported)
November 3, 2004
Lifetime Hoan Corporation
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
1-19254 11-2682486
(Commission File Number) (IRS Employer Identification No.)
One Merrick Avenue, Westbury, New York 11590
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (516)683-6000
N/A
(Former name or former address, if changed since last
report)
Item 2.02. Results of Operation and Financial Condition
On November 3, 2004, Lifetime Hoan Corporation ("the
Company") issued a press release setting forth the Company's
third-quarter 2004 earnings. A copy of the Company's press
release is attached hereto as Exhibit 99 and hereby
incorporated by reference.
Item 9.01. Financial Statements and Exhibits
c) Exhibits
99 - Press Release, dated November 3, 2004
Signature
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly
authorized.
Lifetime Hoan Corporation
By: /s/ Robert McNally
Robert McNally
Vice President of Finance and
Chief Financial Officer
Date: November 3, 2004
EXHIBIT 99
LIFETIME HOAN REPORTS THIRD QUARTER 2004 RESULTS
WESTBURY, N.Y., Nov. 3, 2004 -- LIFETIME HOAN CORPORATION
(NASDAQ NM: LCUT), a leading designer, marketer and
distributor of housewares, today announced results for the
third quarter and nine months ended September 30, 2004.
For the third quarter of 2004, net sales totaled $51.2
million compared to $44.1 million for the same period of the
prior year. The Company reported net income of $2.6 million,
or $0.23 per diluted share, compared to $2.9 million, or
$0.27 per diluted share, for the third quarter of 2003.
Net sales for the nine months ended September 30, 2004
totaled $121.4 million compared to $98.3 million for the
same period in 2003, an increase of 23.5%. Net income for
the period was $3.1 million, or $0.28 per diluted share,
compared to $3.0 million, or $0.28 per diluted share, last
year.
Jeffrey Siegel, Chairman, President and Chief Executive
Officer, commented, "Lifetime's net revenues for the third
quarter increased by 16%. This significant increase
notwithstanding, the results for the quarter did not meet
our expectations.
"Sales did not attain our earlier forecast principally
because of late delivery of merchandise from overseas. Some
of our suppliers encountered difficulties with the start-up
of production of new product lines. The affected product
lines included our new lines of KitchenAid(R) cutlery, our new
ceramic S'mores Maker(TM) and our new Smokeless Tabletop
Griller(TM). In some cases, these products utilize new
materials or combinations of materials that, coupled with
our stringent quality requirements, resulted in unexpected
problems for our suppliers. As a result, a number of sales
programs did not begin as scheduled during the quarter. In
addition, our supply chain faced a number of other
challenges, including shortages and delays in the
availability of raw materials in Asia and delays caused by
congestion at ports in the United States. While these start-
up and other supply chain issues had a negative impact on
sales, we believe they have generally been resolved and we
expect the flow of merchandise to continue at satisfactory
levels through the important holiday shipping season."
Mr. Siegel continued, "Many of our retail customers also
faced challenges during the quarter. These resulted from
high gasoline prices and severe weather in the Southeastern
United States. In addition, measures instituted earlier in
2004 by a major customer to improve inventory turns and
lower its in-stock position continued. Together, these
factors had a negative effect on the timing and reduced the
size of orders we received during the quarter, when compared
to our expectations.
"Our profitability in the quarter did not meet our target,
principally as a result of lower than anticipated net sales.
Our gross margin percentage fell by 1.6%, reflecting
proportionally higher sales of products that traditionally
carry lower gross profit margins. This was due to increased
sales of products sold under the KitchenAid(R) brand, which
generate a lower gross profit margin due to the added cost
of royalties, as well as higher sales of bakeware,
functional glassware and tabletop products.
"Selling, general and administrative (SG&A) expenses rose
due to the increase in the share of space in our outlet
stores for which Lifetime is responsible compared with same
quarter last year, as well as added costs related to
strengthening our product development, sourcing and
sales/marketing infrastructure. We believe that our planned
investments in these areas, which had a negative impact on
our profitability during the quarter, are necessary to
ensure our growth and will have a positive impact on future
profitability. In addition, SG&A expenses increased as a
result of the acquisitions of the business and assets of
USE(R) - Tools for Civilization(R), Gemco Ware and Excel."
Mr. Siegel concluded, "As a result of the third-quarter
developments, we have reviewed our forecast and refined our
guidance for 2004. We are lowering our net sales guidance
for the year to approximately $190 - $197 million from $202
- - $212 million. Consequently, we are lowering our earnings
per share estimate to approximately $0.78 - $0.87 from $0.95
- - $1.10."
Lifetime Hoan noted that third-quarter 2004 sales
attributable to the :USE(R) - Tools for Civilization(R), Gemco
Ware and Excel businesses, which the Company acquired during
the last twelve months, totaled $5.1 million.
Separately, the Company announced that its Board of
Directors declared a regular quarterly cash dividend of
$0.0625 per share, payable on November 19, 2004 to
shareholders of record on November 5, 2004.
Lifetime Hoan has scheduled a conference call Wednesday,
November 3, at 11:00 a.m. Eastern time to discuss third-
quarter-2004 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 Wednesday, August 4, and can
be accessed by dialing (706) 645-9291, conference ID
#1541466. 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 is a leading designer, marketer and distributor of
kitchenware, cutlery & cutting boards, bakeware & cookware,
pantryware & spices, tabletop and bath accessories,
marketing its products under various trade names including
Farberware(R), KitchenAid(R), Cuisinart(R), Hoffritz(R), Sabatier(R),
DBK-Daniel Boulud Kitchen(TM), Joseph Abboud Environments(R),
Roshco(R), Baker's Advantage(R), Kamenstein(R), CasaModa(TM), Hoan(R),
Gemco(R) and :USE(R). Lifetime's products are distributed
through almost every major retailer in the United States.
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.
Tables to Follow
COMPANY CONTACT: INVESTOR RELATIONS:
Robert McNally Harriet Fried
Chief Financial Officer Lippert/Heilshorn
(516) 683-6000 & Associates, Inc.
(212) 838-3777 or
hfried@lhai.com
LIFETIME HOAN CORPORATION
INCOME STATEMENT
(in 000's, except per share data)