Lifetime brands reports 2012 financial results
Garden city, n.y.--(business wire)--lifetime brands, inc. (nasdaqgs: lcut), a global provider of branded products used to prepare, serve and consume foods in the home, today reported its financial results for the fourth quarter and year ended december 31, 2012. fourth quarter highlights: consolidated net sales were $154.8 million, an increase of 12.5%, as compared to consolidated net sales of $137.6 million in the fourth quarter of 2011. net income was $15.2 million, or $1.19 per diluted share, in the 2012 period, as compared to $5.4 million, or $0.43 per diluted share, in the prior-year period. adjusted net income was $8.7 million, or $0.67 per diluted share, in the 2012 period, as compared to $6.5 million, or $0.52 per diluted share, in the 2011 period. consolidated ebitda for the three-month period ended december 31, 2012 was $17.9 million, as compared to $14.3 million for the corresponding 2011 period. full year highlights: consolidated net sales were $486.8 million, an increase of 9.5%, as compared to consolidated net sales of $444.4 million for 2011. net income was $20.9 million, or $1.64 per diluted share, in 2012, as compared to $14.1 million, or $1.12 per diluted share, in 2011. adjusted net income was $16.2 million, or $1.26 per diluted share, in 2012, as compared to $14.5 million, or $1.16 per diluted share, in 2011. consolidated ebitda was $41.2 million, as compared to $38.1 million for the year ended december 31, 2011. on march 12, 2013, the board of directors declared a quarterly dividend of $0.03125 per share payable on may 15, 2013 to shareholders of record on may 1, 2013. jeffrey siegel, lifetime's chairman, president and chief executive officer commented, “lifetime finished 2012 on a very positive note. for the quarter, consolidated net sales increased 12.5% on an actual basis and 8.6% on an organic basis. during the quarter, we acquired the business and assets of fred® & friends, a line of innovative products featuring fun kitchen tools, tabletop accessories, party goods and giftware products. “for the year, consolidated net sales increased 9.5% (actual) and 1.4% (organic). “despite the increase in consolidated net sales, the acquisition of fred® and friends and a planned, temporary build-up of inventory in the uk in anticipation of increased duties on chinese ceramics, which are expected to be enacted later this year, total inventory at year-end decreased to $104.6 million, from $110.3 million, reflecting our improving inventory management practices. “earlier this month, we presented our new line-up of kitchenware products at the annual international home + housewares show in chicago. the reaction to our new products was overwhelmingly positive, which we believe foretells the successful placement of many of these new products later in the year. “while the u.s. and european economies remain troubled, we nevertheless foresee our overall business increasing by 4-6% in 2013. the increased cash dividend we announced today demonstrates our positive outlook and confidence in our products.” conference call lifetime has scheduled a conference call for thursday, march 14, 2013 at 11:00 a.m. et to discuss its fourth quarter 2012 results. the dial-in number for the conference call is (800) 510-9836 or (617) 614-3670, passcode #15045565. a replay of the call will also be available through march 15, 2013 and can be accessed by dialing (888) 286-8010 or (617) 801-6888, conference id #43636130. 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. for purposes of regulation g, 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. pursuant to the requirements of regulation g, 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. management uses this non-gaap information as an indicator of business 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 provider of kitchenware, tabletop and other products used in the home. the company markets its products under such well-known kitchenware brands as farberware®, kitchenaid®, casamŌda®, cuisinart®, cuisine de france®, fred ®, guy fieri®, hoffritz®, kizmos™, misto®, pedrini®, roshco®, sabatier® and vasconia®; respected tabletop 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 elements®, melannco®, kamenstein® 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. three months ended december 31, year ended december 31, (in thousands - except share data) cash and cash equivalents accounts receivable, less allowances of $3,996 at december 31, 2012 and $4,602 at december 31, 2011 inventory prepaid expenses and other current assets deferred income taxes total current assets total assets revolving credit facility current maturity of senior secured term loan accounts payable accrued expenses income taxes payable total current liabilities 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: 12,754,467 at december 31, 2012 and 12,430,893 at december 31, 2011 paid-in capital retained earnings accumulated other comprehensive loss total stockholders’ equity total liabilities and stockholders’ equity lifetime brands, inc. consolidated statements of cash flows (in thousands) december 31, changes in operating assets and liabilities (excluding the effects of business acquisitions) net cash provided by (used in) financing activities lifetime brands, inc. supplemental information reconciliation of gaap to non-gaap operating results (in thousands - except per share data) consolidated ebitda: three months ended december 31, net income as reported subtract out: add back: consolidated ebitda adjusted net income and adjusted diluted income per share: three months ended december 31, net income as reported adjustments: reduction of deferred tax liability related to prior year normalized tax benefit (provision) on reported income adjusted net income adjusted diluted income per share consolidated ebitda is a non-gaap measure that the company defines as net income, adjusted to exclude undistributed equity earnings, income taxes, interest, depreciation and amortization, stock compensation expense, loss on early retirement of debt, intangible asset impairment and acquisition related expenses, as shown in the table above. adjusted net income in 2012 excludes the bargain purchase gain included in equity in earnings, a tax benefit recorded in equity in earnings, a write down in the vasconia investment to fair value, intangible asset impairment, a loss on early retirement of debt related to the repayment of the company’s term loan, an expense related to retirement benefit obligations, acquisition related expenses, a reduction of the company’s deferred tax liability related to the prior year and includes an adjustment to reflect a normalized annual tax rate. adjusted net income in 2011 excludes acquisition related expenses and includes an adjustment to reflect a normalized annual tax rate. adjusted net income in the three-month period ending december 31, 2012 excludes the bargain purchase gain included in equity in earnings, a tax benefit recorded in equity in earnings, a write down in the vasconia investment to fair value, acquisition related expenses, a reduction of the company’s deferred tax liability related to the prior year and includes an adjustment to reflect a normalized annual tax rate. adjusted net income in the corresponding 2011 period excludes acquisition related expenses and includes an adjustment to reflect a normalized annual tax rate.
