View:
17
Page 1 of 13
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF
THE SECURITIES EXCHANGE ACT OF 1934
For quarter ended September 30, 1996
Commission file number 1-19254
Lifetime Hoan Corporation
(Exact name of registrant as specified in its charter)
Delaware 11-2682486
(State or other jurisdiction of incorporation or organization) (I.R.S. Empl
oyer
Identification No.)
One Merrick Avenue, Westbury, NY 11590
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (516) 683-
6000
Not applicable
(Former name, former address and former fiscal year, if changed
since last report)
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of
the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter periods that the registrant was
required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Common Stock, $.01 Par Value 11,276,194 shares outstanding as of
October 31, 1996
INDEX
LIFETIME HOAN CORPORATION
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets as of September 30, 1996
and December 31, 1995 3
Condensed Consolidated Statements of Income for the
Three and Nine months ended September 30, 1996 and 1995 4
Condensed Consolidated Statement of Changes in Stockholders' Equity for the
Nine months ended September 30, 1996 5
Condensed Consolidated Statements of Cash Flows for the
Nine months ended September 30, 1996 and 1995 6
Notes to Condensed Consolidated Financial Statements for the
Nine months ended September 30, 1996 7
Item 2. Management's Discussion and Analysis of Financial
Condition
and Results of Operations 8
PART II. OTHER INFORMATION 11
SIGNATURES 13
ITEM 1. FINANCIAL STATEMENTS
CONDENSED CONSOLIDATED BALANCE SHEETS
LIFETIME HOAN CORPORATION
September December
30, 31,
1996 1995
(unaudited) (Note)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $56,847 $89,797
Accounts receivable, less allowances of $734,000
(1996)
and $663,000 (1995) 14,211,673 12,682,401
Merchandise inventories 43,410,089 43,337,000
Prepaid expenses 5,608,638 4,578,813
Deferred income taxes 1,116,000 1,186,000
Other current assets 1,840,996 695,241
TOTAL CURRENT ASSETS 66,244,243 62,569,252
PROPERTY AND EQUIPMENT, at cost, net of
accumulated depreciation
and amortization of $3,680,959 (1996) and 8,749,752 7,882,166
$2,841,202 (1995)
EXCESS OF COST OVER NET ASSETS ACQUIRED, net of
accumulated amortization of $757,000 (1996) and 1,922,202 1,971,102
$708,100 (1995)
OTHER INTANGIBLES, net of accumulated
amortization of
$238,294 (1996) and $24,000 (1995) 11,316,071 2,452,748
OTHER ASSETS 938,938 880,766
$89,171,206 $75,756,034
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and trade acceptances $5,387,069 $3,072,401
Accrued expenses 6,401,823 5,931,414
Income taxes 976,518 232,447
Short term borrowings 8,400,000 4,600,000
TOTAL CURRENT LIABILITIES 21,165,410 13,836,262
STOCKHOLDERS' EQUITY
Series B Preferred Stock, $1 par value,
authorized 2,000,000
shares; none issued
Common Stock, $.01 par value, authorized
25,000,000 shares;
issued and outstanding 11,276,194 (1996) and 112,762 112,573
11,257,276 (1995)
Paid-in capital 61,221,113 61,103,589
Retained earnings 7,661,480 1,845,007
68,995,355 63,061,169
Less:
Notes receivable for shares issued to 908,064 1,048,064
stockholders
Deferred compensation 81,495 93,333
68,005,796 61,919,772
$89,171,206 $75,756,034
Note: The Balance Sheet at December 31, 1995 has been derived from the
audited financial statements at that date but does not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements.
See notes to condensed consolidated financial
statements.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
LIFETIME HOAN CORPORATION
Three Months Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
Net sales $25,116,29 $22,093,672 $65,380,614 $56,327,592
Cost of sales 11,707,992 11,758,701 32,782,813 29,673,714
13,408,304 10,334,971 32,597,801 26,653,878
Selling, general and 8,502,046 6,378,161 22,622,276 18,152,488
administrative expenses
INCOME FROM OPERATIONS 4,906,258 3,956,810 9,975,525 8,501,390
Other (income) deductions:
Interest expense 193,399 152,198 527,932 217,932
Other (income), net (25,120) (23,980) (78,881) (121,321)
INCOME BEFORE INCOME TAXES 4,737,979 3,828,592 9,526,474 8,404,779
Provision for federal, state
and local
income taxes 1,865,000 1,465,000 3,710,000 3,252,000
NET INCOME $2,872,979 $2,363,592 $5,816,474 $5,152,779
NET INCOME PER SHARE $0.25 $0.20 $0.50 $0.44
WEIGHTED AVERAGE SHARES
OUTSTANDING 11,535,483 11,530,253 11,526,207 11,636,283
See notes to condensed consolidated financial statements
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(UNAUDITED)
LIFETIME HOAN CORPORATION