Lifetime Brands, Inc. (NasdaqGS: LCUT), a leading global designer,
developer and marketer of a broad range of branded consumer
products used in the home, today reported its financial results for
the quarter ended June 30, 2024.
Rob Kay, Lifetime’s Chief Executive Officer,
commented, “Our results for the second quarter were in line with
our expectations even though macroeconomic pressures led to
weakened demand across end markets. Despite these challenges, we
were able to grow share across the majority of our categories,
deliver growth in our e-commerce channel in our core U.S. market
and expand our gross margins, a testament to the success of our
operating strategy and we remain well positioned for resilient
long-term growth.”
Mr. Kay continued, “Looking ahead to the remainder
of the year, we remain on track to drive consistent growth in line
with expectations and driven by strategic initiatives. To that end,
we are reiterating our guidance for 2024 across every metric except
net loss, which has been adjusted to reflect a non-cash loss
related to the write down on our Grupo Vasconia investment which
the Company made in 2007. With a strong balance sheet and robust
cash flow generation, we have a solid foundation in place as we
invest in our future growth and execute on the significant
strategic opportunities already in our pipeline. We are confident
we remain well-positioned to deliver meaningful value as we
continue to expand our leading portfolio of brands, accelerate
innovation and capture incremental growth opportunities.”
Second Quarter Financial
Highlights:
Consolidated net sales for the three months ended
June 30, 2024 were $141.7 million, representing a decrease of
$4.7 million, or 3.2%, as compared to net sales of $146.4 million
for the corresponding period in 2023. In constant currency, a
non-GAAP financial measure, which excludes the impact of foreign
exchange fluctuations and was determined by applying 2024 average
rates to 2023 local currency amounts, consolidated net sales
decreased by $4.8 million, or 3.3%, as compared to consolidated net
sales in the corresponding period in 2023. A table reconciling this
non-GAAP financial measure to consolidated net sales, as reported,
is included below.
Gross margin for the three months ended
June 30, 2024 was $54.6 million, or 38.5%, as compared to
$56.0 million, or 38.2%, for the corresponding period in 2023.
Selling, general and administrative expenses for
the three months ended June 30, 2024 were $38.3 million, an
increase of $2.4 million, or 6.7%, as compared to $35.9 million for
the corresponding period in 2023.
Income from operations was $1.2 million, as
compared to $4.4 million for the corresponding period in 2023.
Adjusted income from operations(1) was $5.6
million, as compared to $8.4 million for the corresponding period
in 2023.
Net loss was $(18.2) million, or $(0.85) per
diluted share, as compared to net loss of $(6.5) million, or
$(0.31) per diluted share, in the corresponding period in 2023. Net
loss for the current period includes a non-cash charge of $14.2
million due to the Company's loss of significant influence in its
equity investment in Grupo Vasconia. Net loss for the prior period
included a non-cash impairment charge of $4.4 million related to
the Company’s equity investment in Grupo Vasconia.
Adjusted net loss(1) was $(0.6) million, or $(0.03)
per diluted share, as compared to adjusted net loss(1) of $(0.3)
million, or $(0.02) per diluted share, in the corresponding period
in 2023.
Six Months Financial
Highlights:
Consolidated net sales for the six months ended
June 30, 2024 were $283.9 million, a decrease of $8.0 million,
or 2.7%, as compared to net sales of $291.9 million for the
corresponding period in 2023 In constant currency, a non-GAAP
financial measure, which excludes the impact of foreign exchange
fluctuations and was determined by applying 2024 average rates to
2023 local currency amounts, consolidated net sales decreased by
$8.4 million, or 2.9%, as compared to consolidated net sales in the
corresponding period in 2023. A table reconciling this non-GAAP
financial measure to consolidated net sales, as reported, is
included below.
Gross margin for the six months ended June 30,
2024 was $112.1 million, or 39.5%, as compared to $109.8 million,
or 37.6%, for the corresponding period in 2023.
Selling, general and administrative expenses for
the six months ended June 30, 2024 were $77.9 million, an
increase of $4.1 million, or 5.6%, as compared to $73.8 million for
the corresponding period in 2023.
Income from operations was $3.0 million, as
compared to $2.6 million for the corresponding period in 2023.
Adjusted income from operations(1) was $11.3
million, as compared to $11.8 million for the corresponding period
in 2023.
Net loss was $(24.4) million, or $(1.14) per
diluted share, as compared to net loss of $(15.3) million, or
$(0.72) per diluted share, in the corresponding period in 2023. Net
loss for the current period includes a non-cash charge of $14.2
million due to the Company's loss of significant influence in its
equity investment in Grupo Vasconia. Net loss for the prior period
included a non-cash impairment charge of $6.5 million related to
the Company's equity investment in Grupo Vasconia.
Adjusted net loss(1) was $(3.8) million, or $(0.18)
per diluted share, as compared to adjusted net loss(1) of $(3.0)
million, or $(0.14) per diluted share, in the corresponding period
in 2023.
Adjusted EBITDA(1) was $56.6 million for the
trailing twelve months ended June 30, 2024.
Liquidity as of June 30, 2024 was $119.3
million, consisting of $3.4 million of cash and cash equivalents,
$97.2 million of availability under the ABL Agreement, limited by
the Term Loan financial covenant, and $18.7 million of available
funding under the Receivables Purchase Agreement.
(1) A table reconciling this non-GAAP financial
measure to its most comparable GAAP financial measure, as reported,
is included below.
Full Year 2024
GuidanceFor the full year ending December 31,
2024, the Company is reiterating its guidance for net sales, income
from operations, adjusted income from operations, adjusted net
income, and adjusted EBITDA. Financial guidance for net loss has
been revised as per the table below primarily as a result of the
non-cash loss of $14.2 million on the Company's Grupo Vasconia
investment.
(in millions - except per share data):
|
Net sales |
$690 to $730 |
|
Income from operations |
$33.0 to $38.0 |
|
Adjusted income from operations |
$49.0 to $54.0 |
|
Net loss |
$(10.0) to $(8.0) |
|
Adjusted net income |
$15.0 to $17.0 |
|
Diluted loss per common share(1) |
$(0.47) to $(0.37) per share |
|
Adjusted diluted income per common share |
$0.69 to $0.78 per share |
|
Weighted-average diluted shares |
21.7 |
|
Adjusted EBITDA |
$57.5 to $62.5 |
(1) Diluted loss per common share is calculated
based on diluted weighted-average shares outstanding of 21.4
million.
Tables reconciling non-GAAP financial measures to
GAAP financial measures, as reported, are included below.
Dividend
On August 6, 2024, the Board of Directors
declared a quarterly dividend of $0.0425 per share payable on
November 15, 2024 to stockholders of record on
November 1, 2024.
Conference Call
The Company has scheduled a conference call for
Thursday, August 8, 2024 at 11:00 a.m. (Eastern Time). The dial-in
number for the conference call is (800) 715-9871 (U.S.) or +1 (646)
307-1963 (International). The conference ID is 4033645.
A live webcast of the conference call will be
accessible through:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=z4X9PGUq
For those who cannot listen to the live broadcast,
an audio replay of the webcast will be available until February 4,
2025.
Non-GAAP Financial
Measures
This earnings release
contains non-GAAP financial measures, including constant
currency net sales, adjusted income from operations, adjusted net
loss, adjusted net income, adjusted diluted loss per common share,
adjusted diluted income per common share, adjusted EBITDA, adjusted
EBITDA, before limitation, pro forma adjusted EBITDA, before
limitation, and pro forma adjusted EBITDA.
A non-GAAP financial measure is a numerical measure of a
company’s historical or future financial performance, financial
position or cash flows that excludes amounts, or is subject to
adjustments that have the effect of excluding amounts, that are
included in the most directly comparable measure calculated and
presented in accordance with GAAP in the statements of income,
balance sheets, or statements of cash flows of a company; or,
includes amounts, or is subject to adjustments that have the effect
of including amounts, that are excluded from the most directly
comparable measure so calculated and presented.
These non-GAAP financial measures are provided because
the Company's management uses these financial measures in
evaluating the Company’s on-going financial results and
trends, and management believes that exclusion of certain items
allows for more accurate period-to-period comparison of the
Company’s operating performance by investors and analysts.
Management uses these non-GAAP financial measures as
indicators of business
performance. These non-GAAP financial measures
should be viewed as a supplement to, and not a substitute for, GAAP
financial measures of performance. As required by SEC rules, the
Company has provided reconciliations of
the non-GAAP financial measures to the most directly
comparable GAAP financial measures.
Forward-Looking StatementsIn this
press release, the use of the words “advance,” “believe,”
“continue,” “could,” “deliver,” “drive,” “enable,” “expect,”
“gain,” “goal,” “grow,” “intend,” “maintain,” “manage,” “may,”
“outlook,” “plan,” “positioned,” “project,” “projected,” “should,”
“take,” “target,” “unlock,” “will,” “would”, or similar expressions
is intended to identify forward-looking statements. Such statements
include all statements regarding the growth of the Company, the
Company’s financial guidance, the Company’s ability to navigate the
current environment and advance the Company’s strategy, the
Company’s commitment to increasing investments in future growth
initiatives, the Company’s initiatives to create value, the
Company’s efforts to mitigate geopolitical factors and tariffs, the
Company’s current and projected financial and operating
performance, results, and profitability and all guidance related
thereto, including forecasted exchange rates and effective tax
rates, as well as the Company’s continued growth and success,
future plans and intentions regarding the Company and its
consolidated subsidiaries. Such statements represent the Company’s
current judgments, estimates, and assumptions about possible future
events. The Company believes these judgments, estimates, and
assumptions are reasonable, but these statements are not guarantees
of any events or financial or operational 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 agreements;
the availability of funding under such credit agreements; the
Company’s ability to maintain adequate liquidity and financing
sources and an appropriate level of debt, as well as to deleverage
its balance sheet; the possibility of impairments to the Company’s
goodwill; the possibility of impairments to the Company’s
intangible assets; the highly seasonal nature of the Company’s
business; the Company’s ability to drive future growth and
profitability from its European operations; changes in U.S. or
foreign trade or tax law and policy; changes in general economic
conditions that could impact the Company’s customers and affect
customer purchasing practices or consumer spending; customer
ordering behavior; the performance of the Company’s newer products;
expenses and other challenges relating to the integration of any
future acquisitions; changes in demand for the Company’s products;
changes in the Company’s management team; the significant influence
of the Company’s largest stockholder; fluctuations in foreign
exchange rates; changes in U.S. trade policy or the trade policies
of nations in which the Company or the Company’s suppliers do
business; shortages of and price volatility for certain
commodities; global health epidemics, such as the COVID-19
pandemic; social unrest, including related protests and
disturbances; the emergence, continuation and consequences of
geopolitical conditions, including political instability in the
U.S. and abroad, unrest, war, conflict, including those related to
the conflicts in Ukraine, Israel and surrounding areas;
macro-economic challenges, including inflationary impacts and
disruptions to the global supply chain; increase in supply chain
costs; the imposition of tariffs and other trade policies and/or
economic sanctions implemented by the U.S. and other governments;
the Company’s ability to successfully integrate acquired
businesses; the Company’s expectations regarding customer
purchasing practices and the future level of demand for the
Company’s products; the Company’s ability to execute on the goals
and strategies set forth in the Company’s five-year plan; and
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 ability to maintain an
appropriate level of debt. The Company undertakes no obligation to
update these forward-looking statements other than as required by
law.
Lifetime Brands, Inc.
Lifetime Brands is a leading global designer,
developer and marketer of a broad range of branded consumer
products used in the home. The Company markets its products under
well-known kitchenware brands, including Farberware®, KitchenAid®,
Sabatier®, Amco Houseworks®, Chef’n® Chicago™ Metallic, Copco®,
Fred® & Friends, Houdini™, KitchenCraft®, Kamenstein®, La
Cafetière®, MasterClass®, Misto®, Swing-A-Way®, Taylor® Kitchen,
Rabbit®, and Dolly® ; respected tableware and giftware brands,
including Mikasa®, Pfaltzgraff®, Fitz and Floyd®, Empire Silver™,
Gorham®, International® Silver, Towle® Silversmiths, Wallace®,
Wilton Armetale®, V&A®, Royal Botanic Gardens Kew®, Year &
Day®, and Dolly®; and valued home solutions brands, including BUILT
NY®, S’well®, Taylor® Bath, Taylor® Kitchen, Taylor® Weather,
Planet Box®, and Dolly®. The Company also provides exclusive
private label products to leading retailers worldwide.
The Company’s corporate website
is www.lifetimebrands.com.
Contacts:
Lifetime Brands, Inc.Laurence
Winoker, Chief Financial
Officer516-203-3590investor.relations@lifetimebrands.com
or
Joele Frank, Wilkinson Brimmer
KatcherEd Trissel / T.J. O'Sullivan / Carly
King212-355-4449
|
LIFETIME BRANDS, INC. |
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
(in thousands—except per share data) |
|
(unaudited) |
| |
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Net sales |
$ |
141,666 |
|
|
$ |
146,436 |
|
|
$ |
283,908 |
|
|
$ |
291,871 |
|
|
Cost of sales |
|
87,116 |
|
|
|
90,445 |
|
|
|
171,811 |
|
|
|
182,038 |
|
|
Gross margin |
|
54,550 |
|
|
|
55,991 |
|
|
|
112,097 |
|
|
|
109,833 |
|
|
Distribution expenses |
|
15,052 |
|
|
|
15,732 |
|
|
|
31,233 |
|
|
|
32,617 |
|
|
Selling, general and administrative expenses |
|
38,331 |
|
|
|
35,863 |
|
|
|
77,867 |
|
|
|
73,770 |
|
|
Restructuring expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
856 |
|
|
Income from operations |
|
1,167 |
|
|
|
4,396 |
|
|
|
2,997 |
|
|
|
2,590 |
|
|
Interest expense |
|
(5,157 |
) |
|
|
(5,528 |
) |
|
|
(10,771 |
) |
|
|
(10,864 |
) |
|
Mark to market (loss) gain on interest rate derivatives |
|
(82 |
) |
|
|
197 |
|
|
|
(256 |
) |
|
|
(37 |
) |
|
Gain on extinguishments of debt, net |
|
— |
|
|
|
1,520 |
|
|
|
— |
|
|
|
1,520 |
|
|
Loss on equity securities |
|
(14,152 |
) |
|
|
— |
|
|
|
(14,152 |
) |
|
|
— |
|
|
(Loss) income before income taxes and equity in losses |
|
(18,224 |
) |
|
|
585 |
|
|
|
(22,182 |
) |
|
|
(6,791 |
) |
|
Income tax benefit (provision) |
|
57 |
|
|
|
(1,242 |
) |
|
|
(153 |
) |
|
|
106 |
|
|
Equity in losses, net of taxes |
|
— |
|
|
|
(5,863 |
) |
|
|
(2,092 |
) |
|
|
(8,640 |
) |
|
NET LOSS |
$ |
(18,167 |
) |
|
$ |
(6,520 |
) |
|
$ |
(24,427 |
) |
|
$ |
(15,325 |
) |
|
BASIC LOSS PER
COMMON SHARE |
$ |
(0.85 |
) |
|
$ |
(0.31 |
) |
|
$ |
(1.14 |
) |
|
$ |
(0.72 |
) |
|
DILUTED LOSS PER
COMMON SHARE |
$ |
(0.85 |
) |
|
$ |
(0.31 |
) |
|
$ |
(1.14 |
) |
|
$ |
(0.72 |
) |
|
LIFETIME BRANDS, INC. |
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
(in thousands—except share data) |
| |
| |
June 30,2024 |
|
December 31,2023 |
| |
(unaudited) |
|
|
|
ASSETS |
|
|
|
|
CURRENT ASSETS |
|
|
|
|
Cash and cash equivalents |
$ |
3,396 |
|
|
$ |
16,189 |
|
|
Accounts receivable, less allowances of $13,684 at June 30,
2024 and $15,952 at December 31, 2023 |
|
112,530 |
|
|
|
155,180 |
|
|
Inventory |
|
208,480 |
|
|
|
188,647 |
|
|
Prepaid expenses and other current assets |
|
15,344 |
|
|
|
16,339 |
|
|
Income taxes receivable |
|
3,546 |
|
|
|
— |
|
|
TOTAL CURRENT ASSETS |
|
343,296 |
|
|
|
376,355 |
|
|
PROPERTY AND EQUIPMENT, net |
|
15,689 |
|
|
|
16,970 |
|
|
OPERATING LEASE RIGHT-OF-USE ASSETS |
|
64,091 |
|
|
|
69,756 |
|
|
INVESTMENT |
|
— |
|
|
|
1,826 |
|
|
INTANGIBLE ASSETS, net |
|
191,624 |
|
|
|
199,133 |
|
|
OTHER ASSETS |
|
2,264 |
|
|
|
3,102 |
|
|
TOTAL ASSETS |
$ |
616,964 |
|
|
$ |
667,142 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
Current maturity of term loan |
$ |
6,822 |
|
|
$ |
4,742 |
|
|
Accounts payable |
|
59,523 |
|
|
|
54,154 |
|
|
Accrued expenses |
|
64,974 |
|
|
|
78,356 |
|
|
Income taxes payable |
|
— |
|
|
|
641 |
|
|
Current portion of operating lease liabilities |
|
14,516 |
|
|
|
14,075 |
|
|
TOTAL CURRENT LIABILITIES |
|
145,835 |
|
|
|
151,968 |
|
|
OTHER LONG-TERM LIABILITIES |
|
13,401 |
|
|
|
9,126 |
|
|
INCOME TAXES PAYABLE, LONG-TERM |
|
1,493 |
|
|
|
1,493 |
|
|
OPERATING LEASE LIABILITIES |
|
62,937 |
|
|
|
70,009 |
|
|
DEFERRED INCOME TAXES |
|
7,580 |
|
|
|
7,438 |
|
|
REVOLVING CREDIT FACILITY |
|
32,635 |
|
|
|
60,395 |
|
|
TERM LOAN |
|
133,278 |
|
|
|
135,834 |
|
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
Preferred stock, $1.00 par value, shares authorized: 100 shares of
Series A and 2,000,000 shares of Series B; none issued and
outstanding |
|
— |
|
|
|
— |
|
|
Common stock, $0.01 par value, shares authorized: 50,000,000 at
June 30, 2024 and December 31, 2023; shares issued and
outstanding: 22,157,912 at June 30, 2024 and 21,813,266 at
December 31, 2023 |
|
222 |
|
|
|
218 |
|
|
Paid-in capital |
|
278,484 |
|
|
|
277,728 |
|
|
Accumulated deficit |
|
(39,895 |
) |
|
|
(13,568 |
) |
|
Accumulated other comprehensive loss |
|
(19,006 |
) |
|
|
(33,499 |
) |
|
TOTAL STOCKHOLDERS’ EQUITY |
|
219,805 |
|
|
|
230,879 |
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
616,964 |
|
|
$ |
667,142 |
|
|
LIFETIME BRANDS, INC. |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
(in thousands) |
|
(unaudited) |
| |
| |
Six Months EndedJune 30, |
|
|
2024 |
|
2023 |
|
OPERATING ACTIVITIES |
|
|
|
|
Net loss |
$ |
(24,427 |
) |
|
$ |
(15,325 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
Depreciation and amortization |
|
9,833 |
|
|
|
9,795 |
|
|
Amortization of financing costs |
|
1,471 |
|
|
|
975 |
|
|
Mark to market loss on interest rate derivatives |
|
256 |
|
|
|
37 |
|
|
Non-cash lease adjustment |
|
(965 |
) |
|
|
(1,255 |
) |
|
(Recovery) provision for doubtful accounts |
|
(287 |
) |
|
|
1,528 |
|
|
Deferred income taxes |
|
144 |
|
|
|
— |
|
|
Stock compensation expense |
|
1,844 |
|
|
|
1,872 |
|
|
Equity in losses, net of taxes |
|
2,092 |
|
|
|
8,640 |
|
|
Contingent consideration fair value adjustments |
|
— |
|
|
|
(50 |
) |
|
Gain on early retirement of debt |
|
— |
|
|
|
(1,520 |
) |
|
Loss on equity securities |
|
14,152 |
|
|
|
— |
|
|
Changes in operating assets and liabilities |
|
|
|
|
Accounts receivable |
|
42,712 |
|
|
|
25,524 |
|
|
Inventory |
|
(20,184 |
) |
|
|
11,492 |
|
|
Prepaid expenses, other current assets and other assets |
|
1,687 |
|
|
|
1,563 |
|
|
Accounts payable, accrued expenses and other liabilities |
|
(3,213 |
) |
|
|
(10,989 |
) |
|
Income taxes receivable |
|
(3,546 |
) |
|
|
(3,049 |
) |
|
Income taxes payable |
|
(639 |
) |
|
|
(245 |
) |
|
NET CASH PROVIDED
BY OPERATING ACTIVITIES |
|
20,930 |
|
|
|
28,993 |
|
|
INVESTING ACTIVITIES |
|
|
|
|
Purchases of property and equipment |
|
(1,098 |
) |
|
|
(993 |
) |
|
NET CASH USED
IN INVESTING ACTIVITIES |
|
(1,098 |
) |
|
|
(993 |
) |
|
FINANCING ACTIVITIES |
|
|
|
|
Proceeds from revolving credit facility |
|
74,207 |
|
|
|
30,378 |
|
|
Repayments of revolving credit facility |
|
(101,804 |
) |
|
|
(16,546 |
) |
|
Repayments of term loan |
|
(1,875 |
) |
|
|
(44,866 |
) |
|
Payment of finance costs |
|
— |
|
|
|
(433 |
) |
|
Payments for finance lease obligations |
|
(14 |
) |
|
|
(14 |
) |
|
Payments of tax withholding for stock based compensation |
|
(1,083 |
) |
|
|
(537 |
) |
|
Payments for stock repurchase |
|
— |
|
|
|
(2,539 |
) |
|
Cash dividends paid |
|
(1,977 |
) |
|
|
(1,907 |
) |
|
NET CASH USED
IN FINANCING ACTIVITIES |
|
(32,546 |
) |
|
|
(36,464 |
) |
|
Effect of foreign exchange on cash |
|
(79 |
) |
|
|
(12 |
) |
|
DECREASE IN CASH AND CASH
EQUIVALENTS |
|
(12,793 |
) |
|
|
(8,476 |
) |
|
Cash and cash equivalents at beginning of period |
|
16,189 |
|
|
|
23,598 |
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ |
3,396 |
|
|
$ |
15,122 |
|
|
LIFETIME BRANDS, INC. |
|
Supplemental Information |
|
(in thousands) |
|
|
|
Reconciliation of GAAP to Non-GAAP Operating
Results |
|
|
|
Adjusted EBITDA for the twelve months ended
June 30, 2024: |
|
|
|
|
Quarter Ended |
|
Twelve Months Ended June 30, 2024 |
| |
September 30,2023 |
December 31,2023 |
|
March 31,2024 |
|
June 30,2024 |
|
|
|
|
|
|
(in thousands) |
|
Net income (loss) as reported |
$ |
4,206 |
|
$ |
2,707 |
|
|
$ |
(6,260 |
) |
|
$ |
(18,167 |
) |
|
$ |
(17,514 |
) |
|
Loss on equity securities |
|
— |
|
|
— |
|
|
|
— |
|
|
|
14,152 |
|
|
|
14,152 |
|
|
Equity in losses, net |
|
1,047 |
|
|
2,978 |
|
|
|
2,092 |
|
|
|
— |
|
|
|
6,117 |
|
|
Income tax provision (benefit) |
|
3,015 |
|
|
3,313 |
|
|
|
210 |
|
|
|
(57 |
) |
|
|
6,481 |
|
|
Interest expense |
|
5,246 |
|
|
5,618 |
|
|
|
5,614 |
|
|
|
5,157 |
|
|
|
21,635 |
|
|
Depreciation and amortization |
|
4,821 |
|
|
4,955 |
|
|
|
4,939 |
|
|
|
4,894 |
|
|
|
19,609 |
|
|
Mark to market loss on interest rate derivatives |
|
98 |
|
|
364 |
|
|
|
174 |
|
|
|
82 |
|
|
|
718 |
|
|
Stock compensation expense |
|
898 |
|
|
917 |
|
|
|
807 |
|
|
|
1,037 |
|
|
|
3,659 |
|
|
Contingent consideration fair value adjustments |
|
— |
|
|
(600 |
) |
|
|
— |
|
|
|
— |
|
|
|
(600 |
) |
|
Loss on extinguishments of debt |
|
— |
|
|
759 |
|
|
|
— |
|
|
|
— |
|
|
|
759 |
|
|
Acquisition related expenses |
|
186 |
|
|
407 |
|
|
|
95 |
|
|
|
641 |
|
|
|
1,329 |
|
|
Warehouse redesign expenses(1) |
|
176 |
|
|
51 |
|
|
|
18 |
|
|
|
35 |
|
|
|
280 |
|
|
Adjusted EBITDA(2) |
$ |
19,693 |
|
$ |
21,469 |
|
|
$ |
7,689 |
|
|
$ |
7,774 |
|
|
$ |
56,625 |
|
(1) For the twelve months ended June 30, 2024, the
warehouse redesign expenses were related to the U.S. segment.
(2) Adjusted EBITDA is a non-GAAP financial measure
that is defined in the Company’s debt agreements. Adjusted EBITDA
is defined as net income (loss), adjusted to exclude loss on equity
securities, equity in losses, income tax provision (benefit),
interest expense, depreciation and amortization, mark to market
loss on interest rate derivatives, stock compensation expense, loss
on extinguishments of debt, and other items detailed in the table
above that are consistent with exclusions permitted by our debt
agreements.
|
LIFETIME BRANDS, INC. |
|
Supplemental Information |
|
(in thousands—except per share data) |
| |
|
Reconciliation of GAAP to Non-GAAP Operating
Results (continued) |
| |
| Adjusted
net loss and adjusted
diluted loss per common share (in
thousands -except per share data): |
| |
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Net loss as reported |
$ |
(18,167 |
) |
|
$ |
(6,520 |
) |
|
$ |
(24,427 |
) |
|
$ |
(15,325 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
Acquisition intangible amortization expense |
|
3,721 |
|
|
|
3,678 |
|
|
|
7,499 |
|
|
|
7,354 |
|
|
Contingent consideration fair value adjustments |
|
— |
|
|
|
(50 |
) |
|
|
— |
|
|
|
(50 |
) |
|
Gain on early retirement of debt |
|
— |
|
|
|
(1,520 |
) |
|
|
— |
|
|
|
(1,520 |
) |
|
Acquisition related expenses |
|
641 |
|
|
|
242 |
|
|
|
736 |
|
|
|
732 |
|
|
Restructuring expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
856 |
|
|
Warehouse redesign expenses(1) |
|
35 |
|
|
|
157 |
|
|
|
53 |
|
|
|
351 |
|
|
Impairment of Grupo Vasconia investment |
|
— |
|
|
|
4,441 |
|
|
|
— |
|
|
|
6,494 |
|
|
Mark to market loss (gain) on interest rate derivatives |
|
82 |
|
|
|
(197 |
) |
|
|
256 |
|
|
|
37 |
|
|
Loss on equity securities |
|
14,152 |
|
|
|
— |
|
|
|
14,152 |
|
|
|
— |
|
|
Income tax effect on adjustments |
|
(1,102 |
) |
|
|
(571 |
) |
|
|
(2,100 |
) |
|
|
(1,916 |
) |
|
Adjusted net loss(2) |
$ |
(638 |
) |
|
$ |
(340 |
) |
|
$ |
(3,831 |
) |
|
$ |
(2,987 |
) |
| Adjusted diluted loss per
common share(3) |
$ |
(0.03 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.14 |
) |
(1) For the three and six months ended
June 30, 2024 and 2023, warehouse redesign expenses were
related to the U.S. segment.
(2) Adjusted net loss and adjusted diluted loss per
common share in the three and six months ended June 30, 2024
excludes acquisition intangible amortization expense, acquisition
related expenses, warehouse redesign expenses, mark to market loss
on interest rate derivatives, and loss on equity securities. The
income tax effect on adjustments reflects the statutory tax rates
applied on the adjustments.
Adjusted net loss and adjusted diluted loss per
common share in the three and six months ended June 30, 2023
excludes acquisition intangible amortization expense, contingent
consideration fair value adjustments, gain on early retirement of
debt, acquisition related expenses, restructuring expenses,
warehouse redesign expenses, impairment of Grupo Vasconia
investment, and mark to market (gain) loss on interest rate
derivatives. The income tax effect on adjustments reflects the
statutory tax rates applied on the adjustments.
(3)Adjusted diluted loss per common share is
calculated based on diluted weighted-average shares outstanding of
21,421 and 21,123 for the three month period ended June 30,
2024 and 2023, respectively. Adjusted diluted loss per common share
is calculated based on diluted weighted-average shares outstanding
of 21,399 and 21,174 for the six month period ended June 30,
2024 and 2023, respectively. The diluted weighted-average shares
outstanding for the three and six months ended June 30, 2024
and 2023 do not include the effect of dilutive securities.
|
Adjusted income from operations (in
thousands): |
|
|
|
|
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Income from operations |
$ |
1,167 |
|
$ |
4,396 |
|
|
$ |
2,997 |
|
$ |
2,590 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Acquisition intangible amortization expense |
|
3,721 |
|
|
3,678 |
|
|
|
7,499 |
|
|
7,354 |
|
|
Contingent consideration fair value adjustments |
|
— |
|
|
(50 |
) |
|
|
— |
|
|
(50 |
) |
|
Acquisition related expenses |
|
641 |
|
|
242 |
|
|
|
736 |
|
|
732 |
|
|
Restructuring expenses |
|
— |
|
|
— |
|
|
|
— |
|
|
856 |
|
|
Warehouse redesign expenses(1) |
|
35 |
|
|
157 |
|
|
|
53 |
|
|
351 |
|
|
Total adjustments |
|
4,397 |
|
|
4,027 |
|
|
|
8,288 |
|
|
9,243 |
|
|
Adjusted income from operations(2) |
$ |
5,564 |
|
$ |
8,423 |
|
|
$ |
11,285 |
|
$ |
11,833 |
|
(1) For the three and six months ended
June 30, 2024 and 2023, warehouse redesign expenses were
related to the U.S. segment.
(2) Adjusted income from operations for the three
and six months ended June 30, 2024 and June 30, 2023,
excludes acquisition intangible amortization expense, contingent
consideration fair value adjustments, acquisition related expenses,
restructuring expenses, and warehouse redesign expenses.
|
LIFETIME BRANDS, INC. |
|
Supplemental Information |
|
(in thousands) |
| |
|
Reconciliation of GAAP to Non-GAAP Operating
Results (continued) |
| |
| Constant
Currency: |
| |
As ReportedThree Months
EndedJune 30, |
|
Constant Currency(1)Three
Months EndedJune 30, |
|
|
|
Year-Over-YearIncrease
(Decrease) |
|
Net sales |
2024 |
|
2023 |
|
Increase(Decrease) |
|
2024 |
|
2023 |
|
Increase(Decrease) |
|
CurrencyImpact |
|
ExcludingCurrency |
|
IncludingCurrency |
|
CurrencyImpact |
|
U.S. |
$ |
130,503 |
|
$ |
134,979 |
|
$ |
(4,476 |
) |
|
$ |
130,503 |
|
$ |
134,958 |
|
$ |
(4,455 |
) |
|
$ |
21 |
|
|
(3.3 |
)% |
|
(3.3 |
)% |
|
— |
% |
|
International |
|
11,163 |
|
|
11,457 |
|
|
(294 |
) |
|
|
11,163 |
|
|
11,486 |
|
|
(323 |
) |
|
|
(29 |
) |
|
(2.8 |
)% |
|
(2.6 |
)% |
|
0.2 |
% |
|
Total net sales |
$ |
141,666 |
|
$ |
146,436 |
|
$ |
(4,770 |
) |
|
$ |
141,666 |
|
$ |
146,444 |
|
$ |
(4,778 |
) |
|
$ |
(8 |
) |
|
(3.3 |
)% |
|
(3.3 |
)% |
|
— |
% |
| |
As ReportedSix Months
EndedJune 30, |
|
Constant Currency(1)Six
Months EndedJune 30, |
|
|
|
Year-Over-YearIncrease
(Decrease) |
|
Net sales |
2024 |
|
2023 |
|
Increase(Decrease) |
|
2024 |
|
2023 |
|
Increase(Decrease) |
|
CurrencyImpact |
|
ExcludingCurrency |
|
IncludingCurrency |
|
CurrencyImpact |
|
U.S. |
$ |
260,983 |
|
$ |
268,464 |
|
$ |
(7,481 |
) |
|
$ |
260,983 |
|
$ |
268,443 |
|
$ |
(7,460 |
) |
|
$ |
21 |
|
|
(2.8 |
)% |
|
(2.8 |
)% |
|
— |
% |
|
International |
|
22,925 |
|
|
23,407 |
|
|
(482 |
) |
|
|
22,925 |
|
|
23,905 |
|
|
(980 |
) |
|
|
(498 |
) |
|
(4.1 |
)% |
|
(2.1 |
)% |
|
2.0 |
% |
|
Total net sales |
$ |
283,908 |
|
$ |
291,871 |
|
$ |
(7,963 |
) |
|
$ |
283,908 |
|
$ |
292,348 |
|
$ |
(8,440 |
) |
|
$ |
(477 |
) |
|
(2.9 |
)% |
|
(2.7 |
)% |
|
0.2 |
% |
(1) “Constant Currency” is determined by applying
the 2024 average exchange rates to the prior year local currency
sales amounts, with the difference between the change in “As
Reported” net sales and “Constant Currency” net sales, reported in
the table as “Currency Impact.” Constant currency sales growth is
intended to exclude the impact of fluctuations in foreign currency
exchange rates.
|
LIFETIME BRANDS, INC. |
|
Supplemental Information |
|
|
|
Reconciliation of GAAP
to Non-GAAP Guidance |
|
|
|
Adjusted EBITDA guidance for the full year ending
December 31, 2024 (in
millions): |
|
Net loss guidance |
$(10.0) to $(8.0) |
|
Loss on equity securities |
14.2 |
|
Equity in loss, net of taxes |
2.1 |
|
Income tax expense |
4.7 to 7.7 |
|
Interest expense(1) |
22.0 |
|
Depreciation and amortization |
19.5 |
|
Stock compensation expense |
4.0 |
|
Acquisition related expenses |
0.7 |
|
Warehouse redesign expenses |
0.3 |
|
Adjusted EBITDA guidance |
$57.5 to $62.5 |
|
Adjusted net income and adjusted diluted income per common
share guidance for the full year ending
December 31, 2024 (in millions -
except per share data): |
|
Net loss guidance |
$(10.0) to $(8.0) |
|
Acquisition intangible amortization expense |
15.0 |
|
Loss on equity securities |
14.2 |
|
Acquisition related expenses |
0.7 |
|
Warehouse redesign expenses |
0.3 |
|
Mark to market loss on interest rate derivatives |
0.3 |
|
Income tax effect on adjustment |
(5.5) |
|
Adjusted net income guidance |
$15.0 to $17.0 |
|
Adjusted diluted income per share guidance |
$0.69 to $0.78 |
|
Adjusted income from operations guidance for the full year
ending December 31, 2024 (in
millions): |
|
Income from operations guidance |
$33.0 to $38.0 |
|
Acquisition intangible amortization expense |
15.0 |
|
Acquisition related expenses |
0.7 |
|
Warehouse redesign expenses |
0.3 |
|
Adjusted income from operations |
$49.0 to $54.0 |
(1) Includes estimate for interest expense and mark
to market loss on interest rate derivatives.
Lifetime Brands (NASDAQ:LCUT)
과거 데이터 주식 차트
부터 10월(10) 2024 으로 11월(11) 2024
Lifetime Brands (NASDAQ:LCUT)
과거 데이터 주식 차트
부터 11월(11) 2023 으로 11월(11) 2024
