Lifetime Brands Reports First Quarter 2009 Financial Results
Net sales for the three months ended
The Company’s results for the first quarter of 2009 and 2008 include
pre-tax charges of
Net sales for the Company’s wholesale segment in the first quarter of
2009 were
Net sales for the direct-to-consumer segment in the first quarter of
2009 were
“The reported year-over-year decrease of
“Our emphasis on product design has always set Lifetime apart from our
competition. We are working closely with our retail partners to create
customized programs that are tailored for today’s business climate,
while remaining trend-right. We also have created brand extensions,
including Gourmet Basics by Mikasa™, M by Mikasa™ and
“Lifetime was among the largest exhibitors at the 2009 International Home + Housewares Show, where we introduced approximately 1,500 unique new products. These included our One-Hand Mandoline Slicer and Odor Absorbing Splatter Screens, which, based on initial reaction to the products, we believe have the potential to be very important for our Company.
“We believe Lifetime is well positioned for the year. In particular, we believe the current environment presents us with opportunities to expand our market share in each of our product classifications.”
First Quarter 2009 Conference Call
Lifetime has scheduled a conference call for
FASB Staff Position No. APB 14-1
During the first quarter of 2009, the Company adopted the provisions of
Financial Accounting Standards Board Staff Position No. APB 14-1 ("FSP
APB 14-1"), Accounting for Convertible Debt Instruments That May
Be Settled in Cash upon Conversion (Including Partial Cash Settlement).
FSP APB 14-1 specifies that issuers of such instruments must account
separately for the liability and equity components in a manner that
reflects the entity's estimated non-convertible borrowing rate at the
date of issuance. FSP APB 14-1 is effective for periods subsequent to
Forward-Looking Statements
In this press release, the use of the words "expect," "will," "may," "would," "could," "should," "project," "projected," "positioned" or similar expressions is intended to identify forward-looking statements that represent the Company’s current judgment about possible future events. The Company believes these judgments are reasonable, but these statements are not guarantees of any events or financial results, and actual results may differ materially due to a variety of important factors. Such factors might include, among others, the Company’s ability to comply with the requirements of its credit agreement; the availability of funding under that credit agreement; the Company’s ability to maintain adequate liquidity and financing sources and an appropriate level of debt; changes in general economic conditions which could affect customer payment practices or consumer spending; the impact of changes in general economic conditions on the Company’s customers; changes in demand for the Company’s products; shortages of and price volatility for certain commodities; significant changes in the competitive environment and the effect of competition on the Company’s markets, including on the Company’s pricing policies, financing sources and an appropriate level of debt.
Non-GAAP Financial Measures
This release contains non-GAAP financial measures within the meaning of
Regulation G promulgated by the
|
LIFETIME BRANDS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (unaudited) |
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|
Three Months Ended
March 31, |
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| 2009 | 2008 | |||||||
| (as adjusted) | ||||||||
| Net sales | $ | 90,214 | $ | 98,194 | ||||
|
|
||||||||
| Cost of sales | 58,148 | 59,605 | ||||||
| Distribution expenses | 11,048 | 13,390 | ||||||
| Selling, general and administrative expenses | 23,567 | 31,103 | ||||||
| Restructuring expenses | 824 | 2,880 | ||||||
| Loss from operations | (3,373 | ) | (8,784 | ) | ||||
| Interest expense | (2,873 | ) | (2,681 | ) | ||||
| Loss before income taxes and equity in earnings of Grupo Vasconia, S.A.B. | (6,246 | ) | (11,465 | ) | ||||
| Income tax benefit (provision) | (135 | ) | 4,851 | |||||
| Equity in earnings of Grupo Vasconia, S.A.B., net of taxes | 422 | 257 | ||||||
| NET LOSS | $ | (5,959 | ) | $ | (6,357 | ) | ||
| BASIC AND DILUTED LOSS PER COMMON SHARE | $ | (0.50 | ) | $ | (0.53 | ) | ||
| WEIGHTED AVERAGE SHARES OUTSTANDING BASIC AND DILUTED | 11,990 | 11,966 | ||||||
|
LIFETIME BRANDS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) |
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| March 31, | December 31, | |||||||
| 2009 | 2008 | |||||||
| (unaudited) |
(as adjusted) |
|||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 2,048 | $ | 3,478 | ||||
| Accounts receivable, less allowances of $14,897 at 2009 and $14,651 at 2008 | 59,877 | 67,562 | ||||||
| Inventory | 131,942 | 141,612 | ||||||
| Income taxes receivable | 11,597 | 11,597 | ||||||
| Prepaid expenses and other current assets | 6,831 | 8,429 | ||||||
| TOTAL CURRENT ASSETS | 212,295 | 232,678 | ||||||
| PROPERTY AND EQUIPMENT, net | 48,199 | 49,908 | ||||||
| INTANGIBLES, net | 38,202 | 38,420 | ||||||
| INVESTMENT IN GRUPO VASCONIA, S.A.B. | 17,443 | 17,784 | ||||||
| OTHER ASSETS | 2,880 | 2,991 | ||||||
| TOTAL ASSETS | $ | 319,019 | $ | 341,781 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Short-term borrowings | $ | 79,700 | $ | 89,300 | ||||
| Accounts payable | 23,054 | 24,151 | ||||||
| Accrued expenses | 29,451 | 35,902 | ||||||
| Deferred income tax liabilities | 403 | 403 | ||||||
| Income taxes payable | 133 | 225 | ||||||
| TOTAL CURRENT LIABILITIES | 132,741 | 149,981 | ||||||
| DEFERRED RENT & OTHER LONG-TERM LIABILITIES | 22,969 | 23,054 | ||||||
| DEFERRED INCOME TAXES | 3,539 | 3,373 | ||||||
| CONVERTIBLE NOTES | 68,508 | 67,864 | ||||||
| STOCKHOLDERS’ EQUITY | ||||||||
|
Common stock, $0.01 par value, shares authorized: 25,000,000;
shares issued |
120 | 120 | ||||||
| Paid-in capital | 127,954 | 127,497 | ||||||
| Accumulated deficit | (27,475 | ) | (21,515 | ) | ||||
| Accumulated other comprehensive loss | (9,337 | ) | (8,593 | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY | 91,262 | 97,509 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 319,019 | $ | 341,781 | ||||
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LIFETIME BRANDS, INC. Supplemental Information Reconciliation of GAAP to Non-GAAP Operating Results (In thousands) (unaudited) |
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Three Months Ended
March 31, |
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| 2009 | 2008 | |||||
| Reconciliation of loss from operations as reported to loss from operations as adjusted: | ||||||
| Loss from operations as reported | $(3,373 | ) | $(8,784 | ) | ||
| Add : Restructuring expenses | 824 | 2,880 | ||||
| Loss from operations as adjusted | $(2,549 | ) | $(5,904 | ) | ||
Source:
Lifetime Brands, Inc.
Laurence Winoker, Chief Financial
Officer, 516-203-3590
investor.relations@lifetimebrands.com
or
Lippert/Heilshorn
& Assoc.
Harriet Fried, Vice President, 212-838-3777
hfried@lhai.com