Lifetime brands reports 2011 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, 2011. for the year ended december 31, 2011, consolidated net sales were $444.4 million, an increase of 0.3%, as compared to consolidated net sales of $443.2 million for 2010. net income was $14.1 million, or $1.12 per diluted share, in 2011, as compared to $20.3 million, or $1.64 per diluted share, in 2010. excluding acquisition-related expenses in 2011 and an extraordinary gain and a loss on early retirement of debt in 2010 and for both years the elimination of the effects of a reduction in income tax valuation allowances to reflect a normalized tax expense, adjusted net income was $14.5 million, or $1.16 per diluted share, in 2011, as compared to $14.6 million, or $1.18 per diluted share, in 2010. for the fourth quarter of 2011, consolidated net sales were $137.6 million, a decrease of 3.5%, as compared to consolidated net sales of $142.6 million in the fourth quarter of 2010. net income was $5.4 million, or $0.43 per diluted share, as compared to $13.9 million, or $1.07 per diluted share, in the prior-year period. excluding acquisition-related expenses in 2011, an extraordinary gain in 2010 and in both periods the elimination of the effects of a reduction in income tax valuation allowances to reflect a normalized tax expense, adjusted net income was $6.5 million, or $0.52 per diluted share, for the fourth quarter of 2011, as compared to $7.9 million, or $0.62 per diluted share, for the same 2010 period. consolidated ebitda for the year ended december 31, 2011 was $38.1 million, as compared to $42.9 million for the year ended december 31, 2010. consolidated ebitda for the three month period ended december 31, 2011 was $14.3 million, as compared to $17.5 million for the same 2010 period. ebitda is a non-gaap measure that the company defines as net income, adjusted to exclude undistributed equity earnings, an extraordinary item, income taxes, interest, depreciation and amortization, restructuring expenses, stock compensation expense, acquisition related expenses and loss on early retirement of debt, as shown in the table below. on march 6, 2012, the board of directors declared a quarterly dividend of $0.025 per share payable on may 15, 2012 to shareholders of record on may 1, 2012. jeffrey siegel, lifetime's chairman, president and chief executive officer commented, “despite the company’s financial results trailing those of the prior year, i am proud of lifetime’s achievements in 2011. “our u.s. wholesale kitchenware and tabletop businesses, which together account for approximately 80% of the company’s consolidated net sales, achieved solid, profitable growth. net wholesale sales of kitchenware products increased by $7.2 million to $215.7 million, a gain of 3.5%, over the prior year, and net wholesale sales of tabletop products inclusive of creative tops sales grew $17.9 million to $141.3 million, an increase of 14.5%. as overall consumer demand in these categories in the u.s. remained flat throughout the year, these increases came primarily from new product introductions and market share gains. “consumer demand for non-essential categories, especially home dÉcor, declined in 2011, as low- and middle-income consumers had little left over after spending on food, clothing, gasoline and other necessities. this affected our other wholesale businesses – those other than kitchenware and tabletop – whose net sales declined to $64.1 million from $81.9 million in 2010. we expect consumer demand for these discretionary categories to revive as the u.s. economy picks up steam in 2012. we also have refocused and refined our merchandise selection to appeal to more middle- and upper-end consumers. “grupo vasconia sab, our 30%-owned mexican affiliate, and lifetime brands canada both had record years in both sales and profits, reflecting strong consumer demand in their respective markets. “in 2011, we made several important investments that will accelerate our growth by broadening our product base and diversifying our geographic base. in january, we formed housewares corporation of asia limited, a hong kong-based joint venture that supplies direct import kitchenware programs to retailers in north, central and south america. in november, we acquired creative tops holdings limited, a leading uk supplier of private label and branded tableware and kitchenware products. creative tops contributed $6.7 million in net sales to the company’s fourth quarter results. in december, we acquired a 40% equity interest in gs internacional s/a, a leading wholesale distributor of branded housewares products in brazil. expenses related to the two acquisitions totaled $2.0 million, most of which were incurred in the fourth quarter, impacting our results for the fourth quarter and full year, as well as year-over-year comparisons. “in addition, in february 2012, we announced that we had entered into a joint venture to market mikasa® branded dinnerware, glassware and giftware products in china.“ conference call lifetime has scheduled a conference call for thursday, march 8, 2012 at 11:00 a.m. et to discuss its fourth quarter and full year 2011 results. the dial-in number for the conference call is (857) 350-1678 or (866) 788-0540, conference id #98441184. a live webcast of the conference call will be broadcast in the investor relations section of the company’s website, www.lifetimebrands.com. a replay of the call will also be available through march 15, 2012 and can be accessed by dialing (617) 801-6888, conference id #28943832. for those who cannot listen to the live broadcast, an audio replay of the call will also be available on the company’s website. 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®, hoffritz®, kizmos™, misto®, pedrini®, roshco®, sabatier® and vasconia®; respected tabletop brands such as mikasa®, pfaltzgraff®, creative tops®, calvin klein®, gorham®, international® silver, kirk stieff®, nautica®, 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’s corporate website is www.lifetimebrands.com. lifetime brands, inc. consolidated statements of operations (in thousands - except per share data) lifetime brands, inc. consolidated balance sheets (in thousands - except share data) 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: 12,430,893 in 2011 and 12,064,543 in 2010 lifetime brands, inc. consolidated statements of cash flows (in thousands) adjustments to reconcile net income to net cash provided by operating activities: changes in operating assets and liabilities (excluding the effects of business acquisitions) net cash provided by operating activities 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) three months ended december 31, year ended december 31, adjusted net income and adjusted diluted income per share: normalized tax benefit (provision) on reported income
