Lifetime Brands, Inc. Reports Third Quarter 2024 Financial Results
Lifetime Brands (NasdaqGS: LCUT) reported its Q3 2024 financial results, highlighting a 4.1% decrease in net sales to $183.8 million compared to Q3 2023. The gross margin remained stable at 36.7%. However, income from operations dropped to $8.6 million from $13.6 million. Net income was $0.3 million, down from $4.2 million, translating to $0.02 per diluted share. Adjusted net income was $4.5 million, or $0.21 per diluted share, compared to $7.7 million, or $0.36 per diluted share, in Q3 2023.
For the first nine months of 2024, net sales fell 3.3% to $467.7 million, and net loss widened to $24.1 million from $11.1 million. Adjusted net income for this period was $0.7 million. Liquidity stood at $75.6 million as of September 30, 2024.
Due to soft demand and delayed shipments, Lifetime Brands revised its full-year guidance, projecting net sales between $680-$700 million and a net loss of $14-$16 million. The company also declared a quarterly dividend of $0.0425 per share, payable on February 14, 2025.
Lifetime Brands (NasdaqGS: LCUT) ha riportato i risultati finanziari del terzo trimestre 2024, evidenziando una riduzione del 4,1% nelle vendite nette a 183,8 milioni di dollari rispetto al terzo trimestre 2023. Il margine lordo è rimasto stabile al 36,7%. Tuttavia, il reddito operativo è sceso a 8,6 milioni di dollari, rispetto ai 13,6 milioni di dollari precedenti. L'utile netto è stato di 0,3 milioni di dollari, in calo rispetto ai 4,2 milioni di dollari, corrispondente a 0,02 dollari per azione diluita. L'utile netto rettificato è stato di 4,5 milioni di dollari, ossia 0,21 dollari per azione diluita, rispetto ai 7,7 milioni di dollari, o 0,36 dollari per azione diluita, nel terzo trimestre 2023.
Per i primi nove mesi del 2024, le vendite nette sono diminuite del 3,3% a 467,7 milioni di dollari e la perdita netta è aumentata a 24,1 milioni di dollari, rispetto agli 11,1 milioni di dollari. L'utile netto rettificato per questo periodo è stato di 0,7 milioni di dollari. La liquidità si attestava a 75,6 milioni di dollari al 30 settembre 2024.
A causa della domanda debole e dei ritardi nelle spedizioni, Lifetime Brands ha rivisto le sue previsioni annuali, prevedendo vendite nette comprese tra 680 e 700 milioni di dollari e una perdita netta di 14-16 milioni di dollari. L'azienda ha inoltre dichiarato un dividendo trimestrale di 0,0425 dollari per azione, pagabile il 14 febbraio 2025.
Lifetime Brands (NasdaqGS: LCUT) reportó sus resultados financieros del tercer trimestre de 2024, destacando una disminución del 4.1% en las ventas netas a 183.8 millones de dólares en comparación con el tercer trimestre de 2023. El margen bruto se mantuvo estable en 36.7%. Sin embargo, los ingresos de operaciones cayeron a 8.6 millones de dólares desde 13.6 millones de dólares. El ingreso neto fue de 0.3 millones de dólares, una disminución de 4.2 millones de dólares, equivalente a 0.02 dólares por acción diluida. El ingreso neto ajustado fue de 4.5 millones de dólares, o 0.21 dólares por acción diluida, en comparación con 7.7 millones de dólares, o 0.36 dólares por acción diluida, en el tercer trimestre de 2023.
Durante los primeros nueve meses de 2024, las ventas netas cayeron un 3.3% a 467.7 millones de dólares, y la pérdida neta se amplió a 24.1 millones de dólares desde 11.1 millones de dólares. El ingreso neto ajustado para este período fue de 0.7 millones de dólares. La liquidez se situó en 75.6 millones de dólares al 30 de septiembre de 2024.
Debido a la baja demanda y los retrasos en los envíos, Lifetime Brands revisó sus proyecciones anuales, proyectando ventas netas entre 680 y 700 millones de dólares y una pérdida neta de 14 a 16 millones de dólares. La compañía también declaró un dividendo trimestral de 0.0425 dólares por acción, que se pagará el 14 de febrero de 2025.
라이프타임 브랜드(Lifetime Brands, NasdaqGS: LCUT)는 2024년 3분기 재무 결과를 발표하며 판매 세액에서 4.1% 감소하여 1억 8천 3백 80만 달러에 달한다고 강조했습니다. 매출 총이익률은 36.7%로 안정세를 유지하고 있습니다. 그러나 운영 소득은 1천 8백 60만 달러에서 1천 3백 60만 달러로 감소했습니다. 순이익은 30만 달러로 감소했으며, 이전의 42만 달러에서 0.02달러의 희소주당 수익률을 보였습니다. 조정된 순이익은 45만 달러, 즉 주당 0.21 달러로, 2023년 3분기의 77만 달러, 즉 주당 0.36달러와 비교되었습니다.
2024년 처음 9개월 동안 순매출은 3.3% 감소하여 4억 6천 7백 70만 달러로, 순손실은 1천 4백 10만 달러로 1천 1백 10만 달러에서 확대되었습니다. 이 기간의 조정된 순이익은 70만 달러로 집계되었습니다. 유동성은 2024년 9월 30일 기준으로 7천 5백 60만 달러로 파악되었습니다.
수요 부진과 배송 지연으로 인해 라이프타임 브랜드는 연간 가이던스를 수정하여 순매출을 6억 8천만 달러에서 7억 달러 사이로, 순손실을 1천 4백만 달러에서 1천 6백만 달러 사이로 예상했습니다. 또한 회사는 2025년 2월 14일에 지급될 주당 0.0425달러의 분기 배당금을 선언했습니다.
Lifetime Brands (NasdaqGS: LCUT) a annoncé ses résultats financiers du troisième trimestre 2024, mettant en avant une baisse de 4,1% des ventes nettes à 183,8 millions de dollars par rapport au troisième trimestre 2023. La marge brute est restée stable à 36,7%. Cependant, le revenu d'exploitation a chuté à 8,6 millions de dollars, contre 13,6 millions de dollars auparavant. Le revenu net était de 0,3 million de dollars, en baisse par rapport à 4,2 millions de dollars, ce qui représente 0,02 dollars par action diluée. Le revenu net ajusté s'est chiffré à 4,5 millions de dollars, soit 0,21 dollars par action diluée, contre 7,7 millions de dollars, soit 0,36 dollars par action diluée, au troisième trimestre 2023.
Pour les neuf premiers mois de 2024, les ventes nettes ont baissé de 3,3% à 467,7 millions de dollars, et la perte nette s'est creusée à 24,1 millions de dollars contre 11,1 millions de dollars. Le revenu net ajusté pour cette période s'est élevé à 0,7 million de dollars. La liquidité s'élevait à 75,6 millions de dollars au 30 septembre 2024.
En raison d'une demande faible et de retards de livraison, Lifetime Brands a révisé ses prévisions pour l'ensemble de l'année, prévoyant des ventes nettes entre 680 et 700 millions de dollars et une perte nette de 14 à 16 millions de dollars. L'entreprise a également déclaré un dividende trimestriel de 0,0425 dollars par action, payable le 14 février 2025.
Lifetime Brands (NasdaqGS: LCUT) hat seine Finanzzahlen für das 3. Quartal 2024 veröffentlicht und dabei einen Rückgang der Nettoumsätze um 4,1% auf 183,8 Millionen US-Dollar im Vergleich zum 3. Quartal 2023 hervorgehoben. Die Bruttomarge blieb stabil bei 36,7%. Der Betriebsgewinn sank jedoch auf 8,6 Millionen US-Dollar von zuvor 13,6 Millionen US-Dollar. Der Nettogewinn betrug 0,3 Millionen US-Dollar, ein Rückgang von 4,2 Millionen US-Dollar, was 0,02 US-Dollar pro verwässerter Aktie entspricht. Der bereinigte Nettogewinn betrug 4,5 Millionen US-Dollar, oder 0,21 US-Dollar pro verwässerter Aktie, im Vergleich zu 7,7 Millionen US-Dollar, oder 0,36 US-Dollar pro verwässerter Aktie, im 3. Quartal 2023.
In den ersten neun Monaten 2024 gingen die Nettoumsätze um 3,3% auf 467,7 Millionen US-Dollar zurück, und der Nettoverlust weitete sich auf 24,1 Millionen US-Dollar von 11,1 Millionen US-Dollar aus. Der bereinigte Nettogewinn für diesen Zeitraum betrug 0,7 Millionen US-Dollar. Die Liquidität betrug zum 30. September 2024 75,6 Millionen US-Dollar.
Aufgrund der schwachen Nachfrage und verzögerter Lieferungen hat Lifetime Brands seine Jahresprognose revidiert und erwartet Nettoumsätze zwischen 680 und 700 Millionen US-Dollar sowie einen Nettoverlust von 14 bis 16 Millionen US-Dollar. Das Unternehmen gab außerdem eine vierteljährliche Dividende von 0,0425 US-Dollar pro Aktie bekannt, die am 14. Februar 2025 zahlbar ist.
- Maintained a healthy gross margin above 36% for seven consecutive quarters.
- Year-over-year growth in the International segment.
- Liquidity of $75.6 million as of September 30, 2024.
- Net sales decreased by 4.1% in Q3 2024 compared to Q3 2023.
- Income from operations dropped to $8.6 million from $13.6 million.
- Net income declined to $0.3 million from $4.2 million.
- Full-year guidance revised downward, projecting net sales between $680-$700 million.
- Net loss widened to $24.1 million for the first nine months of 2024.
Declares Regular Quarterly Dividend
GARDEN CITY, N.Y., Nov. 07, 2024 (GLOBE NEWSWIRE) -- Lifetime Brands, Inc. (NasdaqGS: LCUT), a leading global designer, developer and marketer of a broad range of branded consumer products, today reported its financial results for the quarter ended September 30, 2024.
Rob Kay, Lifetime’s Chief Executive Officer, commented, “While we are disappointed that our third quarter results did not meet our internal projections due to soft demand in end markets combined with delayed shipments to retailers, we have maintained market share position and saw year over year growth in our International segment which is starting to benefit from our restructuring actions. In addition, we maintained a healthy gross margin above
Mr. Kay concluded, “The foundation of the Company is solid – supported by a strong balance sheet. It’s important to note, while we have been broad with our initiatives and strategies for growth, we maintain a prudent operational approach to our business, which demands that we hold true to our fundamentals. As operators, we are constantly thinking about our long-term trajectory, and should a potential initiative not benefit Lifetime, we will not move forward with it. To this point, we have engaged with an array of transaction opportunities that, after completion of due diligence, would not have been in the best interest of our shareholders. As we look to the end of the year, we remain excited about the opportunities in front of us and hope to be able to share more specific strategies to support future growth objectives in the near future.”
Third Quarter Financial Highlights:
Consolidated net sales for the three months ended September 30, 2024 were
Gross margin for the three months ended September 30, 2024 was
Selling, general and administrative expenses for the three months ended September 30, 2024 were
Income from operations was
Adjusted income from operations(1) was
Net income was
Adjusted net income(1) was
Nine Months Financial Highlights:
Consolidated net sales for the nine months ended September 30, 2024 were
Gross margin for the nine months ended September 30, 2024 was
Selling, general and administrative expenses for the nine months ended September 30, 2024 were
Income from operations was
Adjusted income from operations(1) was
Net loss was
Adjusted net income(1) was
Adjusted EBITDA(1) was
Liquidity as of September 30, 2024 was
(1) A table reconciling this non-GAAP financial measure to its most comparable GAAP financial measure, as reported, is included below.
Dividend
On November 5, 2024, the Company's Board of Directors declared a quarterly dividend of
Full Year 2024 Guidance Updates
For the full year ending December 31, 2024, the Company is providing updated financial guidance as follows
(in millions - except per share data):
| Previous Guidance for the Year Ending December 31, 2024 | Updated Guidance for the Year Ending December 31, 2024 | ||
| Net sales | |||
| Income from operations | |||
| Adjusted income from operations | |||
| Net loss | |||
| Adjusted net income | |||
| Diluted loss per common share(1) | |||
| Adjusted diluted income per common share | |||
| Weighted-average diluted shares | 21.7 | 21.6 | |
| Adjusted EBITDA |
(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.
Conference Call
The Company has scheduled a conference call for Friday, November 8, 2024 at 8:30 a.m. (Eastern Time). The dial-in number for the conference call is 1-877-451-6152 (U.S.) or 1-201-389-0879 (International).
A live webcast of the conference call will be accessible through:
https://viavid.webcasts.com/starthere.jsp?ei=1692508&tp_key=93377d5d48
For those who cannot listen to the live broadcast, an audio replay of the webcast will be available on the Company’s investor relations website at https://lifetimebrands.gcs-web.com/ or via telephone replay by dialing 1-844-512-2921 (USA) or 1-412-317-6671 (International). The access code will be 13749443.
Non-GAAP Financial Measures
This earnings release contains non-GAAP financial measures, including constant currency net sales, adjusted income from operations, adjusted net income, 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 Statements
In 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 epidemic; 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 and sanctions, war, conflict, including the ongoing conflicts between Russia and the Ukraine, conflicts in the Middle East, and increasing tensions between China and Taiwan; macro-economic challenges, including labor disputes, 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®, Dolly®, Royal Leerdam®, and ONIS®; 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 Officer
516-203-3590
investor.relations@lifetimebrands.com
or
MZ North America
Shannon Devine / Rory Rumore
Main: 203-741-8811
LCUT@mzgroup.us
LIFETIME BRANDS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands—except per share data)
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net sales | $ | 183,837 | $ | 191,669 | $ | 467,745 | $ | 483,540 | ||||||||
| Cost of sales | 116,420 | 120,718 | 288,231 | 302,756 | ||||||||||||
| Gross margin | 67,417 | 70,951 | 179,514 | 180,784 | ||||||||||||
| Distribution expenses | 20,034 | 17,125 | 51,267 | 49,742 | ||||||||||||
| Selling, general and administrative expenses | 38,770 | 40,214 | 116,637 | 113,984 | ||||||||||||
| Restructuring expenses | — | — | — | 856 | ||||||||||||
| Income from operations | 8,613 | 13,612 | 11,610 | 16,202 | ||||||||||||
| Interest expense | (5,834 | ) | (5,246 | ) | (16,605 | ) | (16,110 | ) | ||||||||
| Mark to market loss on interest rate derivatives | (928 | ) | (98 | ) | (1,184 | ) | (135 | ) | ||||||||
| Gain on extinguishments of debt, net | — | — | — | 1,520 | ||||||||||||
| Loss on equity securities | — | — | (14,152 | ) | — | |||||||||||
| Income (loss) before income taxes and equity in losses | 1,851 | 8,268 | (20,331 | ) | 1,477 | |||||||||||
| Income tax provision | (1,507 | ) | (3,015 | ) | (1,660 | ) | (2,909 | ) | ||||||||
| Equity in losses, net of taxes | — | (1,047 | ) | (2,092 | ) | (9,687 | ) | |||||||||
| NET INCOME (LOSS) | $ | 344 | $ | 4,206 | $ | (24,083 | ) | $ | (11,119 | ) | ||||||
| BASIC INCOME (LOSS) PER COMMON SHARE | $ | 0.02 | $ | 0.20 | $ | (1.12 | ) | $ | (0.52 | ) | ||||||
| DILUTED INCOME (LOSS) PER COMMON SHARE | $ | 0.02 | $ | 0.20 | $ | (1.12 | ) | $ | (0.52 | ) | ||||||
LIFETIME BRANDS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands—except share data)
| September 30, 2024 | December 31, 2023 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 5,984 | $ | 16,189 | ||||
| Accounts receivable, less allowances of | 142,238 | 155,180 | ||||||
| Inventory | 235,015 | 188,647 | ||||||
| Prepaid expenses and other current assets | 13,814 | 16,339 | ||||||
| Income taxes receivable | 2,894 | — | ||||||
| TOTAL CURRENT ASSETS | 399,945 | 376,355 | ||||||
| PROPERTY AND EQUIPMENT, net | 16,562 | 16,970 | ||||||
| OPERATING LEASE RIGHT-OF-USE ASSETS | 62,007 | 69,756 | ||||||
| INVESTMENT | — | 1,826 | ||||||
| INTANGIBLE ASSETS, net | 187,977 | 199,133 | ||||||
| OTHER ASSETS | 2,247 | 3,102 | ||||||
| TOTAL ASSETS | $ | 668,738 | $ | 667,142 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Current maturity of term loan | $ | 6,867 | $ | 4,742 | ||||
| Accounts payable | 79,608 | 54,154 | ||||||
| Accrued expenses | 68,428 | 78,356 | ||||||
| Income taxes payable | — | 641 | ||||||
| Current portion of operating lease liabilities | 14,818 | 14,075 | ||||||
| TOTAL CURRENT LIABILITIES | 169,721 | 151,968 | ||||||
| OTHER LONG-TERM LIABILITIES | 14,153 | 9,126 | ||||||
| INCOME TAXES PAYABLE, LONG-TERM | 1,493 | 1,493 | ||||||
| OPERATING LEASE LIABILITIES | 60,094 | 70,009 | ||||||
| DEFERRED INCOME TAXES | 7,700 | 7,438 | ||||||
| REVOLVING CREDIT FACILITY | 64,489 | 60,395 | ||||||
| TERM LOAN | 130,170 | 135,834 | ||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 222 | 218 | ||||||
| Paid-in capital | 279,530 | 277,728 | ||||||
| Accumulated deficit | (40,510 | ) | (13,568 | ) | ||||
| Accumulated other comprehensive loss | (18,324 | ) | (33,499 | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY | 220,918 | 230,879 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 668,738 | $ | 667,142 | ||||
LIFETIME BRANDS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands) (unaudited)
| Nine Months Ended September 30, | ||||||||
| 2024 | 2023 | |||||||
| OPERATING ACTIVITIES | ||||||||
| Net loss | $ | (24,083 | ) | $ | (11,119 | ) | ||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||
| Depreciation and amortization | 16,241 | 14,616 | ||||||
| Amortization of financing costs | 2,195 | 1,397 | ||||||
| Mark to market loss on interest rate derivatives | 1,184 | 135 | ||||||
| Operating leases, net | (1,476 | ) | (1,617 | ) | ||||
| (Recovery) provision for doubtful accounts | (241 | ) | 2,193 | |||||
| Deferred income taxes | 144 | 5 | ||||||
| Stock compensation expense | 2,886 | 2,770 | ||||||
| Equity in losses, net of taxes | 2,092 | 9,687 | ||||||
| Contingent consideration fair value adjustments | — | (50 | ) | |||||
| Gain on extinguishments of debt, net | — | (1,520 | ) | |||||
| Loss on equity securities | 14,152 | — | ||||||
| Changes in operating assets and liabilities | ||||||||
| Accounts receivable | 13,859 | (14,279 | ) | |||||
| Inventory | (44,821 | ) | 4,828 | |||||
| Prepaid expenses, other current assets and other assets | 2,929 | 1,784 | ||||||
| Accounts payable, accrued expenses and other liabilities | 16,759 | 9,615 | ||||||
| Income taxes receivable | (2,894 | ) | (1,254 | ) | ||||
| Income taxes payable | (663 | ) | (230 | ) | ||||
| NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | (1,737 | ) | 16,961 | |||||
| INVESTING ACTIVITIES | ||||||||
| Purchases of property and equipment | (1,604 | ) | (1,765 | ) | ||||
| NET CASH USED IN INVESTING ACTIVITIES | (1,604 | ) | (1,765 | ) | ||||
| FINANCING ACTIVITIES | ||||||||
| Proceeds from revolving credit facility | 180,725 | 69,954 | ||||||
| Repayments of revolving credit facility | (177,984 | ) | (51,123 | ) | ||||
| Repayments of term loan | (5,625 | ) | (44,866 | ) | ||||
| Payment of finance costs | — | (433 | ) | |||||
| Payments for finance lease obligations | (22 | ) | (20 | ) | ||||
| Payments of tax withholding for stock based compensation | (1,083 | ) | (537 | ) | ||||
| Payments for stock repurchase | — | (2,539 | ) | |||||
| Cash dividends paid | (2,893 | ) | (2,832 | ) | ||||
| NET CASH USED IN FINANCING ACTIVITIES | (6,882 | ) | (32,396 | ) | ||||
| Effect of foreign exchange on cash | 18 | (80 | ) | |||||
| DECREASE IN CASH AND CASH EQUIVALENTS | (10,205 | ) | (17,280 | ) | ||||
| Cash and cash equivalents at beginning of period | 16,189 | 23,598 | ||||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 5,984 | $ | 6,318 | ||||
LIFETIME BRANDS, INC.
Supplemental Information
(in thousands)
Reconciliation of GAAP to Non-GAAP Operating Results
Adjusted EBITDA for the twelve months ended September 30, 2024:
| Quarter Ended | ||||||||||||||||||||
| December 31, 2023 | March 31, 2024 | June 30, 2024 | September 30, 2024 | Twelve Months Ended September 30, 2024 | ||||||||||||||||
| Net income (loss) as reported | $ | 2,707 | $ | (6,260 | ) | $ | (18,167 | ) | $ | 344 | $ | (21,376 | ) | |||||||
| Loss on equity securities | - | - | 14,152 | — | 14,152 | |||||||||||||||
| Equity in losses, net | 2,978 | 2,092 | - | — | 5,070 | |||||||||||||||
| Income tax provision (benefit) | 3,313 | 210 | (57 | ) | 1,507 | 4,973 | ||||||||||||||
| Interest expense | 5,618 | 5,614 | 5,157 | 5,834 | 22,223 | |||||||||||||||
| Depreciation and amortization | 4,955 | 4,939 | 4,894 | 6,408 | 21,196 | |||||||||||||||
| Mark to market loss on interest rate derivatives | 364 | 174 | 82 | 928 | 1,548 | |||||||||||||||
| Stock compensation expense | 917 | 807 | 1,037 | 1,042 | 3,803 | |||||||||||||||
| Contingent consideration fair value adjustments | (600 | ) | - | - | — | (600 | ) | |||||||||||||
| Loss on extinguishments of debt | 759 | - | - | — | 759 | |||||||||||||||
| Acquisition related expenses | 407 | 95 | 641 | 210 | 1,353 | |||||||||||||||
| Warehouse redesign expenses(1) | 51 | 18 | 35 | 662 | 766 | |||||||||||||||
| Adjusted EBITDA(2) | $ | 21,469 | $ | 7,689 | $ | 7,774 | $ | 16,935 | $ | 53,867 | ||||||||||
(1) For the twelve months ended September 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 income and adjusted diluted income per common share (in thousands -except per share data):
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income (loss) as reported | $ | 344 | $ | 4,206 | $ | (24,083 | ) | $ | (11,119 | ) | ||||||
| Adjustments: | ||||||||||||||||
| Acquisition intangible amortization expense | 3,723 | 3,679 | 11,222 | 11,033 | ||||||||||||
| Contingent consideration fair value adjustments | — | — | — | (50 | ) | |||||||||||
| Gain on extinguishments of debt, net | — | — | — | (1,520 | ) | |||||||||||
| Acquisition related expenses | 210 | 186 | 946 | 918 | ||||||||||||
| Restructuring expenses | — | — | — | 856 | ||||||||||||
| Warehouse redesign expenses(1) | 662 | 176 | 715 | 527 | ||||||||||||
| Impairment of Grupo Vasconia investment | — | 340 | — | 6,834 | ||||||||||||
| Mark to market loss on interest rate derivatives | 928 | 98 | 1,184 | 135 | ||||||||||||
| Loss on equity securities | — | — | 14,152 | — | ||||||||||||
| Income tax effect on adjustments | (1,362 | ) | (1,015 | ) | (3,462 | ) | (2,931 | ) | ||||||||
| Adjusted net income(2) | $ | 4,505 | $ | 7,670 | $ | 674 | $ | 4,683 | ||||||||
| Adjusted diluted income per common share(3) | $ | 0.21 | $ | 0.36 | $ | 0.03 | $ | 0.22 | ||||||||
(1) For the three and nine months ended September 30, 2024 and 2023, warehouse redesign expenses were related to the U.S. segment.
(2) Adjusted net income and adjusted diluted income per common share in the three and nine months ended September 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 income and adjusted diluted income per common share in the three and nine months ended September 30, 2023 excludes acquisition intangible amortization expense, contingent consideration fair value adjustments, gain on extinguishments of debt, net, acquisition related expenses, restructuring expenses, warehouse redesign expenses, impairment of Grupo Vasconia investment, and mark to market loss on interest rate derivatives. The income tax effect on adjustments reflects the statutory tax rates applied on the adjustments.
(3) Adjusted diluted income per common share is calculated based on diluted weighted-average shares outstanding of 21,610 and 21,293 for the three month period ended September 30, 2024 and 2023, respectively. Adjusted diluted income per common share is calculated based on diluted weighted-average shares outstanding of 21,643 and 21,266 for the nine month period ended September 30, 2024 and 2023, respectively. The diluted weighted-average shares outstanding for the three and nine months ended September 30, 2024 included the effect of dilutive securities of 48 and 189, respectively. The diluted weighted-average shares outstanding for the three and nine months ended September 30, 2023 included the effect of dilutive securities of 77 and 78, respectively.
| Adjusted income from operations (in thousands): | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Income from operations | $ | 8,613 | $ | 13,612 | $ | 11,610 | $ | 16,202 | ||||||||
| Adjustments: | ||||||||||||||||
| Acquisition intangible amortization expense | 3,723 | 3,679 | 11,222 | 11,033 | ||||||||||||
| Contingent consideration fair value adjustments | — | — | — | (50 | ) | |||||||||||
| Acquisition related expenses | 210 | 186 | 946 | 918 | ||||||||||||
| Restructuring expenses | — | — | — | 856 | ||||||||||||
| Warehouse redesign expenses(1) | 662 | 176 | 715 | 527 | ||||||||||||
| Total adjustments | 4,595 | 4,041 | 12,883 | 13,284 | ||||||||||||
| Adjusted income from operations(2) | $ | 13,208 | $ | 17,653 | $ | 24,493 | $ | 29,486 | ||||||||
(1) For the three and nine months ended September 30, 2024 and 2023, warehouse redesign expenses were related to the U.S. segment.
(2) Adjusted income from operations for the three and nine months ended September 30, 2024 and September 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 Reported Three Months Ended September 30, | Constant Currency(1) Three Months Ended September 30, | Year-Over-Year Increase (Decrease) | ||||||||||||||||||||||||||||||||||
| Net sales | 2024 | 2023 | Increase (Decrease) | 2024 | 2023 | Increase (Decrease) | Currency Impact | Excluding Currency | Including Currency | Currency Impact | ||||||||||||||||||||||||||
| U.S. | $ | 170,222 | $ | 179,393 | $ | (9,171 | ) | $ | 170,222 | $ | 179,410 | $ | (9,188 | ) | $ | (17 | ) | (5.1 | )% | (5.1 | )% | — | % | |||||||||||||
| International | 13,615 | 12,276 | 1,339 | 13,615 | 12,563 | 1,052 | (287 | ) | 8.4 | % | 10.9 | % | 2.5 | % | ||||||||||||||||||||||
| Total net sales | $ | 183,837 | $ | 191,669 | $ | (7,832 | ) | $ | 183,837 | $ | 191,973 | $ | (8,136 | ) | $ | (304 | ) | (4.2 | )% | (4.1 | )% | 0.1 | % | |||||||||||||
| As Reported Nine Months Ended September 30, | Constant Currency(1) Nine Months Ended September 30, | Year-Over-Year Increase (Decrease) | ||||||||||||||||||||||||||||||||||
| Net sales | 2024 | 2023 | Increase (Decrease) | 2024 | 2023 | Increase (Decrease) | Currency Impact | Excluding Currency | Including Currency | Currency Impact | ||||||||||||||||||||||||||
| U.S. | $ | 431,205 | $ | 447,857 | $ | (16,652 | ) | $ | 431,205 | $ | 447,780 | $ | (16,575 | ) | $ | 77 | (3.7 | )% | (3.7 | )% | — | % | ||||||||||||||
| International | 36,540 | 35,683 | 857 | 36,540 | 36,494 | 46 | (811 | ) | 0.1 | % | 2.4 | % | 2.3 | % | ||||||||||||||||||||||
| Total net sales | $ | 467,745 | $ | 483,540 | $ | (15,795 | ) | $ | 467,745 | $ | 484,274 | $ | (16,529 | ) | $ | (734 | ) | (3.4 | )% | (3.3 | )% | 0.1 | % | |||||||||||||
(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 Updated Guidance
Adjusted EBITDA guidance for the full year ending December 31, 2024 (in millions):
| Net loss guidance | |
| Loss on equity securities | 14.2 |
| Equity in loss, net of taxes | 2.1 |
| Income tax expense | 2.7 to 3.7 |
| Interest expense(1) | 24.0 |
| Depreciation and amortization | 21.0 |
| Stock compensation expense | 4.0 |
| Acquisition related expenses | 1.0 |
| Warehouse redesign expenses | 1.0 |
| Adjusted EBITDA guidance |
| 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 | |
| Acquisition intangible amortization expense | 15.0 |
| Loss on equity securities | 14.2 |
| Acquisition related expenses | 1.0 |
| Warehouse redesign expenses | 1.0 |
| Mark to market loss on interest rate derivatives | 1.2 |
| Income tax effect on adjustment | (5.4) |
| Adjusted net income guidance | |
| Adjusted diluted income per share guidance | |
| Adjusted income from operations guidance for the full year ending December 31, 2024 (in millions): | |
| Income from operations guidance | |
| Acquisition intangible amortization expense | 15.0 |
| Acquisition related expenses | 1.0 |
| Warehouse redesign expenses | 1.0 |
| Adjusted income from operations | |
(1) Includes estimate for interest expense and mark to market loss on interest rate derivatives.
LIFETIME BRANDS, INC.
Supplemental Information
Reconciliation of GAAP to Non-GAAP Previous Guidance
Adjusted EBITDA guidance for the full year ending December 31, 2024 (in millions):
| Net loss guidance | |
| 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 |
| 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 | |
| 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 | |
| Adjusted diluted income per share guidance | |
| Adjusted income from operations guidance for the full year ending December 31, 2024 (in millions): | |
| Income from operations guidance | |
| Acquisition intangible amortization expense | 15.0 |
| Acquisition related expenses | 0.7 |
| Warehouse redesign expenses | 0.3 |
| Adjusted income from operations | |
(1) Includes estimate for interest expense and mark to market loss on interest rate derivatives.
FAQ
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