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Edited Transcript of LCUT earnings conference call or presentation 21-May-20 3:00pm GMT

Q1 2020 Lifetime Brands Inc Earnings Call

GARDEN CITY Jun 29, 2020 (Thomson StreetEvents) -- Edited Transcript of Lifetime Brands Inc earnings conference call or presentation Thursday, May 21, 2020 at 3:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Andrew Squire

Lifetime Brands, Inc. - Head of IR

* Laurence Winoker

Lifetime Brands, Inc. - Senior VP of Finance, Treasurer & CFO

* Robert Bruce Kay

Lifetime Brands, Inc. - CEO & Director

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Conference Call Participants

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* Anthony Chester Lebiedzinski

Sidoti & Company, LLC - Senior Equity Research Analyst

* Justyn R. Putnam

Talanta Investment Group, LLC - Managing Member and MD

* Linda Ann Bolton-Weiser

D.A. Davidson & Co., Research Division - Senior Research Analyst

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Presentation

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Operator [1]

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Good morning, ladies and gentlemen, and welcome to Lifetime Brands' First Quarter 2020 Earnings Conference Call. (Operator Instructions) I would now like to introduce your host for today's conference, Andrew Squire. Mr. Squire, you may begin your conference.

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Andrew Squire, Lifetime Brands, Inc. - Head of IR [2]

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Thank you. Good morning, and thank you for joining Lifetime Brands' First Quarter 2020 Earnings Call. With us today from management are Rob Kay, Chief Executive Officer; and Larry Winoker, Chief Financial Officer.

Before we begin the call, I'd like to remind you that our remarks this morning may contain forward-looking statements that relate to the future performance of the company and these statements are intended to qualify for the safe harbor liability established by the Private Securities Litigation Reform Act. Any such statements are not guarantees of future performance and factors that could influence our results are highlighted in today's press release and others are contained in our filings with the Securities and Exchange Commission.

Our remarks this morning and in today's press release also contain non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Included in such release is a reconciliation of these non-GAAP financial measures to the comparable financial measures calculated in accordance with GAAP.

With that introduction, I'd like to turn the call over to Rob Kay. Please go ahead, Rob.

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Robert Bruce Kay, Lifetime Brands, Inc. - CEO & Director [3]

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Thank you. Good morning, everyone, and thank you for joining us today to discuss Lifetime Brands' first quarter 2020 results. I hope that you, your family, your friends and your colleagues are staying safe during these unprecedented times.

Before I begin, I would like to take this opportunity to recognize the exceptional efforts of our associates, including our operational teams who have kept our facilities running safely and productively to ensure we can continue to deliver the products our customers know and love. I would also like to thank our sales, marketing and administrative teams who have been professional, productive and highly effective as they work remotely. At Lifetime Brands, we've been working diligently to deliver strong results while ensuring the safety and well-being of our employees.

Driven by the impact of our Lifetime 2.0 initiative, combined with the actions we have taken since the onset of the COVID-19 crisis, we are pleased that we delivered solid results in our core U.S. business. These results were achieved with strong performance from several of our major customers and channels, including a significant increase in e-commerce sales, enabling us to generate significant cash flow and meaningfully lower, our net debt in the first quarter. This was slightly offset by the anticipated impact from the operational challenges in our European operation, which began in 2019 and was solved by the end of January 2020. However, we also faced challenges in our international business where there was a more significant impact from the COVID-19 crisis in the first quarter, with border closures, and retail store closures resulting in shipping delays and lost revenues.

Let me start with our core U.S. business. e-commerce represented one of the most important growth areas this quarter, contributing 16.7% of our total revenue for the first quarter. Importantly, that figure excludes a significant amount of additional e-commerce sales through omnichannel retailers where we cannot easily track the percentage sold online, but which were a key contributor to our success this quarter. Further, this figure was achieved notwithstanding our major e-commerce customer shutting off all orders in mid-March through the end of the quarter. Of note, this customer resumed order activity in the beginning of April.

Additionally, we saw strong performance in the grocery channel where the company is gaining market share, and which we believe presents a compelling value creation opportunity for Lifetime Brands as we have not had a historically large presence in this sector. The growth in the first quarter was a combination of market share expansion and strong demand by the consumer for our products, particularly Kitchenware, which experienced continued strong demand both before and after the impact of the COVID-19 pandemic became visible.

When many retailers began to close brick-and-mortar stores in mid-March, we did experience a drop-off in demand from these customers. However, we were able to offset this impact to enhance sales to the e-commerce channel, those brick-and-mortar customers that remained open, as well as omnichannel retailers. This resulted in our ability to grow revenues year-over-year in the U.S., led by our core Kitchenware business.

Turning now to the international business. As we have previously discussed, the operational issues from 2019 extended into January 2020. However, LTB Europe was also hit harder by the impacts of COVID-19 in the first quarter, with a much higher proportion of independent retailers who were all shuttered and border closures, resulting in shipping delays and lost revenues.

With the operational issues now behind us, we believe we are well-positioned to capitalize on the reorganization of our European operations. Our operational repositioning has enhanced our capabilities, exemplified by our focus on using our improved infrastructure to offer drop-ship to national retailers that has resulted in an increase from 1,000 shipments per week to approximately 3,000 shipments per day from our consolidated U.K. warehouse.

We are, therefore, confident that despite recent challenges, we will see a significant improvement in profitability and cash flow for Lifetime Brand Europe going forward, particularly as COVID-19 recovery efforts continue.

Let me briefly touch on our commercial foodservice initiative. 2020 was intended to be a ramp-up year for our Mikasa Hospitality brand, with significant sales activity to begin building market share in this new category where we have significant opportunity for growth. However, with the sharp declines in the hospitality industry, many restaurants, hotels and other foodservice operations have closed, and we expect a delay in when we will start to see the benefits of the investments we have been making in this area. Even so, we are actively pursuing revenue opportunities in both the U.S. and U.K. and continue to strongly believe this is a meaningful channel for long-term growth in our tabletop, serveware, cutlery, kitchen tools and small wares product categories.

I will now discuss the aggressive actions we have taken at Lifetime to address the potential impact of the COVID-19 pandemic on our business. Across all our operations, in the U.S., Asia and Europe, we have managed operating cost with meaningful reduction implemented in spend across most categories, including compensation and other benefits, trade shows and travel and commission structure. We have further taken steps to increase liquidity by negotiation -- by negotiating rent abatement and deferrals and changes to payment terms for trade and administrative vendors. Together, these actions, have and I believe, will continue to enable Lifetime to achieve solid results that give us confidence in our ability to navigate the current environment, advance our strategy and drive growth.

As we generated cash this quarter, our net debt position is noticeably reduced and favorable year-over-year, placing us ahead of our expectations on our commitment to lower our debt levels to guided targets. We dramatically lowered our net debt position and achieved this cash flow performance, notwithstanding the COVID-19 situation and operational challenges from our European operations. Additionally, in an effort to preserve our cash balance, which was $85.3 million as of March 31, the Board of Directors has determined to postpone the dividend on our common stock that was payable in May 2020 until December 2020. Given the uncertainties about the future direction or economic impact of the ongoing COVID-19 pandemic, we believe this is the right decision as it offers enhanced liquidity to the company.

We will continue to evaluate the situation going forward, and will revisit all COVID-19-related decisions in due course. Due to the ongoing economic uncertainty caused by the pandemic, we have decided not to provide an outlook for our full year for fiscal year 2020. Nevertheless, thus far in Q2, we continue to see fairly strong demand and shipment levels in our core U.S. business with strong e-commerce activity and demand from our largest customers, driven primarily by kitchen, food prep and cutlery products that have remained popular as more families are cooking at home. Thanks to this underlying demand, our U.S. business is trending flat year-over-year, and our U.K. business is showing sequential improvement.

Looking ahead to the rest of 2020. We believe the actions we have taken will help to mitigate the continuing impact of COVID-19. And we will continue to take actions as needed to ensure the stability of the business. We believe that the foundation we have built over the past 2 years, with the actions of Lifetime 2.0, provides us the infrastructure, flexibility and liquidity to weather this period of uncertainty. As we continue advancing our strategy, we are confident that our more-focused business model and strategic growth initiatives will enable us to generate significant cash flow, improved growth and profitability and create meaningful shareholder value moving forward.

With that, I'll now turn the call over to Larry.

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Laurence Winoker, Lifetime Brands, Inc. - Senior VP of Finance, Treasurer & CFO [4]

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Thanks, Rob. As we reported this morning, the net loss for the first quarter of 2020 was $28.2 million, $1.36 per share versus a net loss of $4.9 million, or $0.24 per share in the first quarter of 2019. Adjusted net loss was $5.7 million for 2020, $0.27 per share versus an adjusted net loss of $4 million, or $0.19 per share in 2019. A table, which reconciles this non-GAAP measure to reported results was included in this morning's release.

Loss from operations was $25.2 million in 2020 and $2.3 million for 2019. The loss from operations for the current period was $5.1 million, excluding the impact of a noncash charge for goodwill and intangible asset impairment related to the U.S. business segment. The current period loss from operations includes a charge of bad debt reserve of $2.8 million to provide for potential credit problems of certain retail customers who may have financial difficulties caused or increased by the COVID-19 pandemic. Adjusted EBITDA, a non-GAAP measure that is reconciled to our GAAP results in the release was $61.2 million for the trailing 12 months ended March 31, 2020, after giving effect to certain adjustments and before limitations as permitted and defined in our credit agreements.

Adjusted EBITDA was calculated to include the charge to bad debt reserve of $2.8 million that I just mentioned. Net sales in the 2020 quarter were $145.1 million compared to $149.9 million for the 2019 quarter. The U.S. segment sales were up $2.2 million to $129.2 million. The increase was primarily led by Kitchenware's continued success of programs that commenced in the latter part of 2019 for several product lines as well as increase in e-commerce sales. This increase was partially offset by decline for products sold predominantly to customers that were closed due to the pandemic.

International segment sales were down $7 million to $15.9 million on a reported basis and down $6.8 million in constant U.S. dollars. As Rob noted, this decrease reflects the operational issues in late 2019 that extended into the early part of 2020, and the impact of COVID-19, which had a more adverse effect in the quarter than for our U.S. businesses. Gross margin increased 30 basis points to 36.5% in the 2020 quarter. For the U.S. segment, gross margin was 38.2% in 2020 versus 36.5% last year. The improvement was primarily due to an increase in Kitchenware in the overall product mix, driven by the company's targeted efforts as part of Lifetime 2.0 initiative, which we have discussed in prior earnings calls as well as at our November '19 Investor Day.

For the international segment. Gross margin was 22.9% in 2020 compared to 34.9% in 2019. This decrease primarily reflects the impact of the operational issues noted that temporarily affected customer service levels. Distribution expense for 2020 was 11.4% of net sales versus 10.6% in 2019. For the U.S. segment, distribution expense as a percentage of sales shipped from its warehouses, excluding moving and relocation costs that were incurred in 2019, were 9.8% and 10.8% for the periods, respectively. The improvement reflects the continued realization of labor management efficiency and the benefit of leverage of fixed costs on higher sales volume.

For the international segment. Distribution expenses as a percentage of sales shipped from its warehouses, excluding moving costs for the new distribution facility, were 15.9% and 11.6% in 2020 and 2019, respectively. This increase is primarily attributable to the operational difficulties and inefficiencies associated with the consolidation into the new warehouse, most notably, higher temporary labor. Selling, general and administrative expenses were $41.5 million in 2020 versus $40.1 million in 2019.

The U.S. segment expenses were $30.4 million in 2020 as compared to $28.4 million in 2019. As noted in the earnings release, a charge to bad debt reserve was provided for potential credit problems of certain retail customers who had financial difficulties that were caused or increased by the COVID-19 pandemic. Of the $2.8 million consolidated charge, $1.9 million related to the U.S. segment. SG&A expenses for the international segment was $6.5 million in 2020 compared to $6.1 million in 2019. The increase was primarily attributable to the charge to bad debt reserve, which was partially offset by lower employee and selling expenses.

Unallocated corporate expenses declined to $4.6 million from $5.6 million in 2019 on lower professional fees. In the 2020 quarter, the company recorded a $20.1 million noncash goodwill and intangible asset impairment charge related to the U.S. business segment. The impairment charge resulted from, among other factors, more conservative estimates of future cash flows, in light of the uncertain market conditions arising from the COVID-19 pandemic. During the quarter, we recorded a noncash charge of $2.3 million for a mark-to-market loss on certain of our interest rate swaps. These swaps were dented into to lock in a fixed interest rate on our variable rate debt. The loss was caused by the recent precipitous decline in interest rate. Our intent is to hold these swap contracts until maturity, hence, over time, this noncash loss will reverse.

For the 2020 quarter, the company recorded an income tax benefit of $3.7 million, an effective rate of 11.6%. This varies from the federal statutory rate of 21%, primarily due to the impact of nondeductible expenses, of which the most significant item was the goodwill impairment charge. And as of March 31, 2020, our liquidity, which includes $85 million of cash plus availability under our credit facilities, was $137 million. As Rob described earlier, since late March, we have performed significant work to address the cash flow impact of COVID-19 when much of the economy, and in particular, the retail sector closed down. This work, coupled with the strength of our core business, has enabled us to protect our liquidity. We believe that availability under our revolving credit facilities and cash flow from operations will be sufficient to fund the company's operations for the next 12 months.

This concludes our prepared comments. Operator, please open the line for questions.

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Questions and Answers

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Operator [1]

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(Operator Instructions)

And the first question will come from Linda Bolton-Weiser with D.A. Davidson.

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Linda Ann Bolton-Weiser, D.A. Davidson & Co., Research Division - Senior Research Analyst [2]

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So your operating cash flow was quite impressive in the quarter. Actually, this is the second quarter in a row that you beat our estimate. Can you give us a sense for -- I seem to recall that your target for improving cash flow was mostly through the June 2020 period. So are we to expect as big improvements in operating cash flow in the second and third quarter? Or will the improvement kind of taper off a little bit as we look to the next few quarters?

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Robert Bruce Kay, Lifetime Brands, Inc. - CEO & Director [3]

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Yes. Sure, Linda. So just to clarify, there were some initiatives that we had announced in 2019, which would supplement our operating cash flow, and that was primarily the SKU rationalization and potentially, divestiture of a small product line. The -- whether we pursue the -- divestiture is not huge, but it's not in our cash flow. So obviously, that would be supplemental to the future. But we have pursued the SKU rat, and that has supplemented our cash flow a little bit. But what's -- the majority is driving it is just the performance of the core business. And the cost that we've taken out of the business, so we're generating more cash to the bottom line.

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Linda Ann Bolton-Weiser, D.A. Davidson & Co., Research Division - Senior Research Analyst [4]

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Okay. So it sounds like we can expect to see continuing improvement, at least some, going forward. Is that kind of what you're saying?

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Laurence Winoker, Lifetime Brands, Inc. - Senior VP of Finance, Treasurer & CFO [5]

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Yes. Linda, so Larry here. Yes, historically -- and I think you know this, others know this that we generate cash obviously in the latter part of the fourth quarter, well into the first quarter. But generally, that's when it generally stops to let's say, flatten out a lower bit because we collect the most of the receivables that were generated during the holiday season. And now we, generally, again, see generally because the world has changed, generally now is when we start to build working capital and would see more borrowings. Again, it's hard to say now because of some of the changes in business practices, given the pandemic and what happens with stores reopening. But as I said, historically, in the second quarter, we would not see -- we would actually see a decline.

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Linda Ann Bolton-Weiser, D.A. Davidson & Co., Research Division - Senior Research Analyst [6]

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Okay. And then when you reported in March, I think it was around March 10 or 11, you had said that the issues in the U.K., the operational issues were completely resolved as of January. So I'm a little surprised that the gross margin in the international was so impacted because the issues supposedly were over with in January. So could you talk about just why -- I mean, did you continue to have some issues in February and March? Or can you explain that?

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Robert Bruce Kay, Lifetime Brands, Inc. - CEO & Director [7]

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Yes. Well, definitely, sorry for the confusion. Yes, so by the end of January, and we had solved our operational issues in the U.K., that has not changed. The -- as -- once we solved the operational issue, then we needed to -- we had thrown -- sorry for not articulating well. In advance of solving the operation, let's just -- as we started throwing a lot of cost to make sure we can continue to ship and minimize disruption, a lot of that was temporary labor. So the labor inefficiencies in the warehouse were quite strong or high. And we basically eliminated those by the end of February.

So we did have a hangover in terms of the operational cost, would had an impact of margin in the first quarter, which we had anticipated. We may not have articulated that well. But the operational issues were solved, continuing to remain fine. As a matter of fact, I had mentioned in my remark, as a result now with enhanced drop-ship capabilities and speed of doing that, we've been able to benefit and capture a lot. And as I mentioned, there's a 15-fold increase in what we're shipping on a drop ship basis from 4Q to now.

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Linda Ann Bolton-Weiser, D.A. Davidson & Co., Research Division - Senior Research Analyst [8]

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Okay. And then just -- I think you said in your remarks that the U.S. sales in April were kind of trending flattish. April, May, flattish year-over-year. So can you just confirm that, that's kind of what you said. Would international still down but improved sequentially? Is that kind of what you said?

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Robert Bruce Kay, Lifetime Brands, Inc. - CEO & Director [9]

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Yes. As we said, as we kind of look out for now, you can't tell in any given month, we've had a good start in Q2 in the U.S. business, and the mix is a lot different. For instance, we had over 28% of our business in April, that was e-commerce. Yes, so this a lot is shifting. But the business performed fairly well year-over-year so far, which may not dawn in April in the books.

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Linda Ann Bolton-Weiser, D.A. Davidson & Co., Research Division - Senior Research Analyst [10]

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Okay. I know that Helen of Troy had mentioned in their OXO business that it's -- the business is actually benefiting from people staying at home, buying kitchen wares-type stuff. Are you kind of seeing that phenomenon in your business, and that's why it's holding up?

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Robert Bruce Kay, Lifetime Brands, Inc. - CEO & Director [11]

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Very much so. So we always joke about can openers. We can't keep them in stock. And we've always joked about that, well, it's absolutely true. You can't buy them. We're trying to accelerate as much as possible. And the demand for all of our kitchenware, KitchenAid, Farberware primarily, has greatly exceeded expectations. And both in e-commerce, the omnichannel guys that are working just our websites, but the major customers that are -- a lot of our major customers are open and groceries. So kitchenware, cutlery, there's a bunch of categories that have remained stronger, actually stronger than what we expected because there's been a big increase in demand as people are doing more eating at home.

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Linda Ann Bolton-Weiser, D.A. Davidson & Co., Research Division - Senior Research Analyst [12]

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Great. And then, can I just ask one final one on -- I guess, you drew down some on your revolver. So technically, your total debt, including the revolver, increased in the quarter, right? But do you intend to keep kind of cash on the balance sheet through the rest of the year or will we see the debt actually coming down for the year, including the revolver?

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Robert Bruce Kay, Lifetime Brands, Inc. - CEO & Director [13]

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Yes. That's a good question. I mean, the truth is we pulled down on the revolver, and we haven't needed it. But in an abundance of caution, because there's so much uncertainty created by COVID-19, the pandemic. We have greatly exceeded our cash flow since we did that. But we still are prudently remaining -- not repaying that amount as we have a little negative carry as a result, and we'll continue to evaluate that, right? We still are looking as things reopen. We are looking if there's a second wave. So we just think it's abundantly prudent to have that buffer, if everything blows up in the world. We're sitting on $85 million of cash.

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Operator [14]

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The next question will come from Anthony Lebiedzinski with Sidoti & Company.

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Anthony Chester Lebiedzinski, Sidoti & Company, LLC - Senior Equity Research Analyst [15]

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I hope you're both doing well. Thanks for the opportunity to ask questions. So I know you talked about e-commerce, certainly seeing a nice increase in sales. Can you talk about the margin profile, whether it's any different when you sell to Amazon or to Wayfair, as far as the margin for the products versus the traditional brick-and-mortar retailers?

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Robert Bruce Kay, Lifetime Brands, Inc. - CEO & Director [16]

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We're -- what we can say is that we are seeing an improvement overall in our margin on a year-over-year basis. So we have -- as the shift has impacted, we haven't seen any deterioration in margin. No.

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Anthony Chester Lebiedzinski, Sidoti & Company, LLC - Senior Equity Research Analyst [17]

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Got it. Okay. So I know you talked about the supply chain disruptions in the U.K. impacting the results for the first quarter. Sounds like everything has been resolved. So looking back, so you said the international segment gross margin was 22.9% versus 34.9% a year ago. My notes are correct. So is there any reason to think that we can't go back to those margins from a year ago now that the issues have been resolved? Or is there something else that could perhaps prevent you from achieving those margins that you had a year ago before the disruptions?

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Laurence Winoker, Lifetime Brands, Inc. - Senior VP of Finance, Treasurer & CFO [18]

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Yes. This is Larry. No, there's no particular reason why that would be. Remember, we said that the -- this is somewhere, call it like a hangover from some of the operational issues, the customer service levels that became revealed to us later at this -- in the first quarter. So there's nothing about the business that would cause it to -- which will go back. There's nothing to cause it to continue as is the way it was in the first quarter. So look, call it -- response to say, no, it should be a nonrecurring condition.

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Anthony Chester Lebiedzinski, Sidoti & Company, LLC - Senior Equity Research Analyst [19]

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Okay. Great. And I know you guys are not giving any formal sales or EPS guidance. But I guess, as far as -- just looking at the other line items, as far as expenses, I know you have done some expense reduction initiatives. Can you perhaps quantify the expense reductions as to how we should think about how that will flow through the P&L through the rest of the year?

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Laurence Winoker, Lifetime Brands, Inc. - Senior VP of Finance, Treasurer & CFO [20]

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Yes. It's -- again, it's a flux target. We have been very aggressive looking at all categories of spend, as I mentioned. So you'd see a positive variance across all categories. But we're also monitoring the situation. For instance, we've been in the position that we've furloughed hundreds of people. And -- but it's not -- we evaluate in terms of bringing people back. We rightsized in the U.K., in particular, when there wasn't volume, we had to rightsize our operations. As things normalize, there will be increased spend. So we can't say that it's a permanent situation. It's all in flux, but we can say that we are reacting to protect the company's results as the situation evolves.

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Operator [21]

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Next question will come from Justyn Putnam with Talanta.

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Justyn R. Putnam, Talanta Investment Group, LLC - Managing Member and MD [22]

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Yes. So obviously a lot of turmoil in the back half of the first quarter and so far in the second quarter, with everything that's going on with the pandemic. It sounds like first half of the second quarter being flat and the business sales is maybe a pretty remarkable achievement, so congratulations on that. However, I guess, Rob, it would be helpful if you could give a little bit more information about your -- the sales and expectations for the back half of the year in particular, because that is your largest -- your quarter's largest profitability and largest revenues. Would you consider the successful third and fourth quarter if you maintain a similar pace, similar flat pace in the back half of the year? Or how would you characterize that? Just trying to get a sense of how everything is playing out with the changes you made with the company and what's going on in the wider world.

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Robert Bruce Kay, Lifetime Brands, Inc. - CEO & Director [23]

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Yes. Justyn, appreciate the question. I mean beyond what we've already given, just -- we think it's prudent and similar to a lot of other companies that it's -- there's just so many moving parts that we're not providing any detailed guidance. We can, as we talked about, say that when we reacted, we think very quickly and very aggressively on all fronts in terms of how we manage the business with uncertainties and potentially, economic crisis created by this pandemic. And we did that globally, and we looked at everything we do, both how we do it, the ability to continue to operate and the like.

So fortunately, we haven't had any shipping disruptions, both from a supply chain perspective. And we had stress tested it in a situation like this, you would. And I can say that we've been pleased that what has happened since has greatly exceeded our expectations of what could have happened in an environment. But our products are in demand in recessions, as we've talked about. It happened in 2008, and you're seeing it here.

So there's been really good demand for a lot of our product categories. But there's a lot that we don't know, which is why we're not giving specifics. Is there going to be a second wave? What impact that will be? We can't say that. The mix has changed a lot. We're doing a lot more e-commerce as I mentioned, 28% over. 28% of our shipments in April were e-commerce. And that's the big e-commerce guys, but it's also -- which included or in addition to that is we're doing a lot of omnichannel.

Now as I mentioned in the U.K., we went from 1,000 a week to 3,000 a day drop-ship and that's omnichannel all. And that's not like Amazon, for instance, which is a big customer over there. So we are benefiting from increased demand. It's been, as I said, exceeding our expectations. Giving us so far good performance, but we don't know, and we're not commenting on what the future will hold. One other point is Lifetime had moved everything to the cloud,, our complete infrastructure, so we could do call center, we could do everything remote.

So it's been seamless for us. And while our salespeople are traveling, they're actively involved in conversations on setting up planograms and working on programs for the fall and the holiday season with our major accounts. That has not stopped.

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Operator [24]

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At this time, there are no further questions. I'd like to turn the conference back over to Rob Kay for any closing comments.

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Robert Bruce Kay, Lifetime Brands, Inc. - CEO & Director [25]

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Great, and thank you. Thank you, everyone, as always, for joining our call, listening and for your questions and asking us for clarifications. Everyone, stay safe, and we appreciate your listening in on our call.

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Operator [26]

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Ladies and gentlemen, thank you for participating in today's conference call. You may now disconnect.