Lifetime brands, inc. reports second quarter financial results
Garden city, n.y.--(business wire)--lifetime brands, inc. (nasdaqgs:lcut), a leading global provider of branded kitchenware, tableware and other products used in the home, today reported its financial results for the second quarter ended june 30, 2015. second quarter financial highlights: consolidated net sales were $120.9 million in the quarter ended june 30, 2015; an increase of $5.6 million, or 4.9%, as compared to consolidated net sales of $115.3 million in the corresponding period in 2014. in constant currency, which excludes the impact of foreign exchange fluctuations, consolidated net sales increased 7.2%, as compared to consolidated net sales in the corresponding period in 2014. gross margin was $43.5 million, or 36.0%, in the quarter ended june 30, 2015, as compared to $40.9 million, or 35.4%, for the corresponding period in 2014. loss from operations was $1.0 million in the quarter ended june 30, 2015, as compared to a loss of $3.2 million in the corresponding period in 2014. net loss was $1.7 million, or $0.12 per diluted share, in the quarter ended june 30, 2015, as compared to a loss of $3.2 million, or $0.24 per diluted share, in the corresponding period in 2014. adjusted net loss was $0.6 million, or $0.04 per diluted share, in the quarter ended june 30, 2015, as compared to a loss of $3.1 million, or $0.23 per diluted share, in the corresponding period in 2014. consolidated ebitda was $4.4 million, in the quarter ended june 30, 2015, as compared to $1.5 million for the corresponding 2014 period. equity in earnings, net of taxes, was $577,000, excluding the impact of a $575,000 deferred tax expense related to foreign currency translation, in the quarter ended june 30, 2015, as compared to $41,000 in the corresponding 2014 period. six months financial highlights: consolidated net sales were $238.6 million in the six months ended june 30, 2015; an increase of $4.9 million, or 2.1%, as compared to net sales of $233.7 million for the corresponding period in 2014. in constant currency, consolidated net sales increased 4.4%. gross margin was $88.4 million, or 37.1%, in the six months ended june 30, 2015 as compared to $85.2 million, or 36.4%, for the corresponding period in 2014. loss from operations was $3.2 million in the six months ended june 30, 2015, as compared to a loss of $5.4 million, for the corresponding period in 2014. net loss was $3.8 million, or $0.28 per diluted share, in the six months ended june 30, 2015, as compared to a loss of $6.1 million, or $0.46 per diluted share, in the 2014 period. adjusted net loss was $2.5 million, or $0.18 per diluted share, in the six months ended june 30, 2015, as compared to a loss of $4.8 million, or $0.36 per diluted share, in the 2014 period. consolidated ebitda was $6.9 million in the six months ended june 30, 2015, as compared to $5.2 million for the corresponding 2014 period. equity in earnings, net of taxes, was $0.3 million in the six months ended june 30, 2015 as compared to equity in losses, net of taxes, of $0.2 million in the corresponding 2014 period. jeffrey siegel, lifetime's chairman and chief executive officer, commented, “lifetime’s financial results for the quarter were in line with our expectations. our growth in sales and improved operating performance is attributable to our increased emphasis on product innovation and our continuing pursuit of productivity gains. “net sales for the u.s. wholesale segment were $94.6 million, an increase of $9.5 million, or 11.2%, as compared to net sales of $85.1 million for the corresponding period in 2014. net sales for the segment’s kitchenware and tableware product categories increased, offset by a decrease in net sales of the segment’s home solutions product category. “net sales for the international segment were $22.5 million, a decrease of $4.1 million, as compared to net sales of $26.6 million for the corresponding period in 2014. in local currencies, net sales for the segment decreased approximately 4%. "our retailer partners continue to foresee a strong holiday selling season, which is reflected in strong bookings and placements for products to be delivered later this year. as a result, we continue to have a high level of confidence in our ability to achieve our consolidated full year 2015 financial goals. in constant currency, we expect to achieve near 6% net sales growth for the year, the high end of our guidance; however, we expect the strong u.s. dollar to continue to dampen foreign operating results during the second half of the year. hence, on a reported basis, we currently forecast full year 2015 net sales to increase by 3% to 6%, reaffirming the guidance we provided on our first quarter conference call. also, we continue to expect our operating margin to be in the range of 4.5 to 5.5%. “consistent with our expectations for the full year, on august 4, 2015, our board of directors declared a quarterly cash dividend of $0.0425 per share, payable on november 13, 2015 to shareholders of record on october 30, 2015, representing an increase of 13.3%.” conference call the company has scheduled a conference call for thursday, august 6, 2015 at 11:00 a.m. et. the dial-in number for the conference call is (800) 510-0146 or (617) 614-3449 passcode #96133808. a replay of the call will also be available through friday, august 7, 2015 and can be accessed by dialing (888) 286-8010 or (617) 801-6888, conference id #18155748. a live webcast of the conference call will be broadcast in the investor relations section of the company's web site, www.lifetimebrands.com. for those who cannot listen to the live broadcast, an audio replay of the call will also be available on the site. non-gaap financial measures this earnings release contains non-gaap financial measures. 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 the 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. as required by sec rules, the company has provided reconciliations of the non-gaap financial measures to the most directly comparable gaap financial measures. these non-gaap measures are provided because management of the company 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 comparison of the company’s operating performance. management uses this non-gaap information as an indicator of business performance. these non-gaap measures should be viewed as a supplement to, and not a substitute for, gaap measures of performance. forward-looking statements in this press release, the use of the words “believe,” "could," "expect," "may," "positioned," "project," "projected," "should," "will," "would" 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 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; 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. lifetime brands, inc. lifetime brands is a leading global provider of kitchenware, tableware and other products used in the home. the company markets its products under such well-known kitchenware brands as farberware®, kitchenaid®, cuisine de france®, fred® & friends, guy fieri®, kitchen craft®, kizmos™, la cafetiÈre®, misto®, mossy oak®, pedrini®, sabatier®, savora™ and vasconia®; respected tableware brands such as mikasa®, pfaltzgraff®, creative tops®, gorham®, international® silver, kirk stieff®, sasaki®, towle® silversmiths, tuttle®, wallace®, v&a® and royal botanic gardens kew®; and home solutions brands, including kamenstein®, bombay®, built®, debbie meyer® and design for living™. the company also provides exclusive private label products to leading retailers worldwide. the company’s corporate website is www.lifetimebrands.com. june 30, accounts receivable, less allowances of $6,313 at june 30, 2015 and $6,663 at december 31, 2014 preferred stock, $.01 par value, shares authorized: 100 shares of series a and 2,000,000 shares of series b; none issued and outstanding common stock, $.01 par value, shares authorized: 25,000,000; shares issued and outstanding: 14,000,171 at june 30, 2015 and 13,712,081 at december 31, 2014 adjustments to reconcile net loss to net cash (used in) provided by operating activities: changes in operating assets and liabilities (excluding the effects of business acquisitions) consolidated ebitda forthe four quarters ended june 30, 2015 consolidated ebitda forthe four quarters endedjune 30, 2014 (1) (1) june 30, 2015 march 31, 2015 december 31,2014 september 30,2014 june 30, 2014 march 31, 2014 december 31,2013 september 30,2013 consolidated ebitda is a non-gaap measure that the company defines as net income (loss), adjusted to exclude undistributed equity in earnings (losses), income taxes, interest, losses on early retirement of debt, depreciation and amortization, stock compensation expense, intangible asset impairment, contingent consideration, certain acquisition related expenses and restructuring expenses, as shown in the tables above. deferred tax for foreign currency translation for grupo vasconia adjusted net loss in the three and six months ended june 30, 2015 excludes the fair value adjustment of certain contingent consideration, acquisition related expenses, the recovery of acquisition related expenses for an acquisition not completed, financing expenses and deferred tax expense related to our equity earnings of vasconia due to recording the tax benefit of cumulative translation losses through other comprehensive income. adjusted net loss in the three and six months ended june 30, 2014 excludes certain acquisition related expenses, the loss on retirement of debt and restructuring expenses.
