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Lifetime Brands, Inc. Reports Second Quarter 2019 Financial Results

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Declares Regular Quarterly Dividend

GARDEN CITY, N.Y., Aug. 08, 2019 (GLOBE NEWSWIRE) -- Lifetime Brands, Inc. (LCUT), a leading global provider of branded kitchenware, tableware and other products used in the home, today reported its financial results for the quarter ended June 30, 2019.

Robert Kay, Lifetime's Chief Executive Officer, commented, “For the six months of 2019, we continued to make progress on our long-term growth initiatives, and I am pleased that we remain on track to achieve our strategic priorities of integrating all of our operations and product categories into a unified business platform which is more cost efficient and better positioned to grow in the second half of 2019 and beyond. In the second quarter, we made significant progress on our portfolio realignment with the conclusion of a comprehensive SKU rationalization, began to see the benefits of our reorganization efforts in the UK, and strengthened our global position in the food services category. Despite this progress, our business was impacted by temporary down cycles in the retail industry that drove softness in our end markets, leading to mixed results. This trend was driven by fundamental retail transformation and the impact of continuing geopolitical conditions, including tariffs and Brexit uncertainty in Europe. We will continue to take action to offset the tariff impact on margins and sales.”

Second Quarter Financial Highlights:

Consolidated net sales for the three months ended June 30, 2019 were $142.5 million, a decrease of $6.2 million, or 4.2%, as compared to net sales of $148.7 million for the corresponding period in 2018. In constant currency, which excludes the impact of foreign exchange fluctuations, consolidated net sales decreased $5.0 million, or 3.4%, as compared to consolidated net sales in the corresponding period in 2018.

Gross margin was $44.0 million, or 30.9%, as compared to $52.1 million, or 35.0%, for the corresponding period in 2018. Excluding an $8.5 million non-recurring, non-cash charge for the SKU rationalization initiative, gross margin would have been $52.5 million, or 36.8%, in the 2019 period.

Loss from operations, including the impact of SKU rationalization, was $12.5 million, as compared to a loss from operations of $3.3 million for the corresponding period in 2018.

Net loss was $11.5 million, or $0.56 per diluted share, as compared to a net loss of $6.1 million, or $0.30 per diluted share, in the corresponding period in 2018.

Adjusted net loss, excluding the impact of SKU rationalization, was $4.5 million, or $0.22 per diluted share, as compared to adjusted net loss of $5.7 million, or $0.28 per diluted share, in the corresponding period in 2018.

Six Months Financial Highlights:

Consolidated net sales for the six months ended June 30, 2019 were $292.5 million, an increase of $25.7 million, or 9.6%, as compared to net sales of $266.8 million for the corresponding period in 2018. In constant currency, which excludes the impact of foreign exchange fluctuations, consolidated net sales increased $28.2 million, or 10.7%, as compared to consolidated net sales in the corresponding period in 2018.

Gross margin for the six months ended June 30, 2019 was $98.3 million, or 33.6%, as compared to $97.2 million, or 36.4%, for the corresponding period in 2018. Excluding an $8.5 million non-recurring, non-cash charge for the SKU rationalization initiative, gross margin would have been $106.8 million, or 36.5%, in the 2019 period.

Loss from operations, including the impact of SKU rationalization, was $14.8 million, as compared to a loss from operations of $16.6 million for the corresponding period in 2018.

Net loss was $16.4 million, or $0.80 per diluted share, as compared to a net loss of $17.7 million, or $0.96 per diluted share, in the corresponding period in 2018.

Adjusted net loss, excluding the impact of SKU rationalization, was $8.5 million, or $0.41 per diluted share, as compared to adjusted net loss of $14.0 million, or $0.76 per diluted share, in the corresponding period in 2018.

Consolidated adjusted EBITDA, after giving effect to certain adjustments and before limitations as permitted and defined under our debt agreement, was $68.8 million for the twelve months ended June 30, 2019. A table which reconciles this non-GAAP financial measure to net loss, as reported, is included below.

Mr. Kay continued, “As a part of our broader strategy to realign and strengthen our portfolio, we have completed a comprehensive review of our product portfolio and decided to discontinue or de-emphasize certain product categories, which resulted in a one-time, non-cash $8.5 million accounting charge related to the SKU rationalization initiative. This will create value for Lifetime by eliminating cost, improving efficiency and most impactful immediately, will be the generation of incremental cash flow as we monetize unproductive assets. We expect this realignment to generate between $30 million and $45 million of free cash flow, which we will redeploy toward accelerating, deleveraging and investing in growth, with improved return on assets. We are confident this will facilitate the execution of our strategic priorities to deliver growth across our businesses and create value for our shareholders.”

Outlook Update

For the full fiscal year ending December 31, 2019, the Company is providing the following updated financial outlook:

Net sales

$ 755 to $760 million

Income from operations

$26 to $29 million

Income from operations, excluding SKU Rationalization

$34 to $36 million

Net income

$3 to $5.5 million

Weighted-average diluted shares

21 million

Diluted income per common share

$0.14 to $0.26 per share

Adjusted net income

$10.50 to $13 million

Adjusted diluted income per common share

$0.50 to $0.62 per share

Consolidated adjusted EBITDA, before limitation

$66 to $70 million

Mr. Kay concluded, “We are revising our adjusted EBITDA guidance to a range of $66 to $70 million. The midpoint of this EBITDA guidance represents growth of approximately 4% compared to 2018. Sales are expected in the range of $755 million to $760 million, of which the midpoint represents a 3.7% increase over 2018 pro forma sales. The major drivers for the downward revision in adjusted EBITDA are the geopolitical factors which are having a negative impact on our margins and end markets. We continue to work on mitigating these factors and believe they will be successfully mitigated by the end of 2019.”

This outlook is based on a forecasted GBP to USD rate of $1.27. Net income, adjusted net income, diluted income per common share and adjusted diluted income per common share were calculated based on an effective tax rate of 34%.

Dividend

On August 6, 2019, the Board of Directors declared a quarterly dividend of $0.0425 per share payable on November 15, 2019 to shareholders of record on November 1, 2019.

Conference Call

The Company has scheduled a conference call for Thursday, August 8, 2019 at 11:00 a.m. The dial-in number for the conference call is (866) 610-1072 or (973) 935-2840, passcode #1990715. A live webcast of the conference call will be accessible through https://event.on24.com/wcc/r/2056330-1/71900E20CC66D9B2FB8814B65BD76311. For those who cannot listen to the live broadcast, an audio replay of the webcast will be available.

Non-GAAP Financial Measures

This earnings release contains non-GAAP financial measures, including consolidated net sales in constant currency, adjusted net loss, adjusted diluted loss per common share, gross margin (excluding non-recurring charges) and consolidated 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. 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 financial 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 by investors and analysts. Management uses these non-GAAP financial measurers 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.

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. Such statements include all statements regarding the growth of the Company, our financial outlook, our initiatives to create value, our efforts to mitigate geopolitical factors and tariffs, our 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 our 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; the possibility of impairments to the Company’s goodwill; changes in U.S. or foreign trade or tax law and policy; the impact of tariffs on imported goods and materials; 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; customer ordering behavior; the performance of our newer products; the impact of our SKU rationalization initiative, expenses and other challenges relating to the integration of the Filament Brands business and 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 we or our suppliers do business; uncertainty regarding the U.K.’s exit from the European Union (Brexit); shortages of and price volatility for certain commodities; 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 provider of kitchenware, tableware and other 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®, Kizmos™, La Cafetière®, MasterClass®, Misto®, Mossy Oak®, Swing-A-Way®, Taylor® Kitchen, Rabbit® and Vasconia®; respected tableware and giftware brands, including Mikasa®, Pfaltzgraff®, Fitz and Floyd®, Creative Tops®, Empire Silver™, Gorham®, International® Silver, Kirk Stieff®, Towle® Silversmiths, Tuttle®, Wallace®, Wilton Armetale®, V&A® and Royal Botanic Gardens Kew®; and valued home solutions brands, including BUILT NY®, Taylor® Bath, Taylor® Weather and PlanetBox®. 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

Joele Frank, Wilkinson Brimmer Katcher
Ed Trissel / Andrew Squire / Sophie Throsby
212-355-4449



LIFETIME BRANDS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands - except per share data)
(unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2019

2018

2019

2018

Net sales

$

142,536

$

148,651

$

292,462

$

266,820

Cost of sales

98,517

96,573

194,122

169,655

Gross margin

44,019

52,078

98,340

97,165

Distribution expenses

15,541

14,942

31,401

32,764

Selling, general and administrative expenses

40,850

40,042

80,990

80,217

Restructuring expenses

173

395

781

801

Loss from operations

(12,545

)

(3,301

)

(14,832

)

(16,617

)

Interest expense

(4,694

)

(4,676

)

(9,616

)

(6,779

)

Loss on early retirement of debt

-

-

-

(66

)

Loss before income taxes and equity in (losses) earnings

(17,239

)

(7,977

)

(24,448

)

(23,462

)

Income tax benefit

5,795

1,765

8,253

5,575

Equity in (losses) earnings, net of taxes

(69

)

155

(185

)

232

NET LOSS

$

(11,513

)

$

(6,057

)

$

(16,380

)

$

(17,655

)

Weighted-average shares outstanding - basic

20,545

20,327

20,527

18,474

BASIC LOSS PER COMMON SHARE

(0.56

)

$

(0.30

)

(0.80

)

$

(0.96

)

Weighted-average shares outstanding - diluted

20,545

20,327

20,527

18,474

DILUTED LOSS PER COMMON SHARE

(0.56

)

$

(0.30

)

(0.80

)

$

(0.96

)



LIFETIME BRANDS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands - except share data)

June 30,

December 31,

2019

2018

(unaudited)

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$

10,535

$

7,647

Accounts receivable, less allowances of $7,473 at June 30, 2019 and $7,855 at December 31, 2018

91,109

125,292

Inventory

205,607

173,601

Prepaid expenses and other current assets

12,724

10,822

Income taxes receivable

10,690

1,442

TOTAL CURRENT ASSETS

330,665

318,804

PROPERTY AND EQUIPMENT, net

26,563

25,762

OPERATING LEASE RIGHT-OF-USE ASSETS

109,757

-

INVESTMENTS

20,935

22,582

INTANGIBLE ASSETS, net

331,314

338,847

DEFERRED INCOME TAXES

122

733

OTHER ASSETS

3,345

1,844

TOTAL ASSETS

$

822,701

$

708,572

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

Current maturity of term loan

$

13,261

$

1,253

Accounts payable

48,495

38,167

Accrued expenses

50,966

45,456

Current portion of operating lease liability

11,163

-

TOTAL CURRENT LIABILITIES

123,885

84,876

DEFERRED RENT & OTHER LONG-TERM LIABILITIES

10,055

23,339

DEFERRED INCOME TAXES

15,103

15,141

OPERATING LEASE LIABILITIES

114,630

-

INCOME TAXES PAYABLE, LONG-TERM

949

949

REVOLVING CREDIT FACILITY

44,913

42,080

TERM LOAN

250,062

262,694

STOCKHOLDERS’ EQUITY

Preferred stock, $1.00 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: 50,000,000 at June 30, 2019 and December 31, 2018; shares issued and outstanding: 21,255,218 at June 30, 2019 and 20,764,143 at December 31, 2018

213

208

Paid-in capital

260,461

258,637

Retained earnings

37,090

55,264

Accumulated other comprehensive loss

(34,660

)

(34,616

)

TOTAL STOCKHOLDERS’ EQUITY

263,104

279,493

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

822,701

$

708,572



LIFETIME BRANDS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)

Six Months Ended

June 30,

2019

2018

OPERATING ACTIVITIES

Net loss

$

(16,380

)

$

(17,655

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization

12,649

10,731

Amortization of financing costs

876

663

Deferred rent

-

368

Non-cash lease expense

1,156

-

Stock compensation expense

2,100

1,759

Undistributed equity in losses (earnings), net of taxes

185

(232

)

Loss on early retirement of debt

-

66

SKU Rationalization

8,500

-

Changes in operating assets and liabilities (excluding the effects of business acquisitions):

Accounts receivable

34,184

41,441

Inventory

(40,900

)

(39,555

)

Prepaid expenses, other current assets and other assets

(1,568

)

(185

)

Accounts payable, accrued expenses and other liabilities

15,587

5,170

Income taxes receivable

(9,247

)

(4,095

)

Income taxes payable

-

(4,242

)

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

7,142

(5,766

)

INVESTING ACTIVITIES

Purchases of property and equipment

(3,867

)

(3,168

)

Filament acquisition, net of cash acquired

-

(217,932

)

NET CASH USED IN INVESTING ACTIVITIES

(3,867

)

(221,100

)

FINANCING ACTIVITIES

Proceeds from revolving credit facility

136,455

126,283

Repayments of revolving credit facility

(133,497

)

(161,173

)

Proceeds from term loan

-

275,000

Repayments of term loan

(1,375

)

(688

)

Proceeds from short term loan

-

79

Payments on short term loan

-

(71

)

Payment of financing costs

-

(11,154

)

Payment of equity issuance costs

-

(936

)

Payments for capital leases

(12

)

(24

)

Payments of tax withholding for stock based compensation

(390

)

(398

)

Proceeds from exercise of stock options

133

-

Cash dividends paid

(1,786

)

(1,535

)

NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES

(472

)

225,383

Effect of foreign exchange on cash

85

(118

)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

2,888

(1,601

)

Cash and cash equivalents at beginning of period

7,647

7,600

CASH AND CASH EQUIVALENTS AT END OF PERIOD

$

10,535

$

5,999



LIFETIME BRANDS, INC.
Supplemental Information
(In thousands)

Reconciliation of GAAP to Non-GAAP Operating Results

Consolidated adjusted EBITDA for the twelve months ended June 30, 2019:

Consolidated
adjusted EBITDA
for the Four
Quarters Ended
June 30, 2019

Three months ended June 30, 2019

$

4,306

Three months ended March 31, 2019

6,127

Three months ended December 31, 2018

30,876

Three months ended September 30, 2018

22,722

Pro forma projected synergies

4,763

Consolidated adjusted EBITDA, before limitation

68,794

Permitted non-recurring charge limitation

(8,008

)

Consolidated adjusted EBITDA

$

60,786

Three Months Ended

Twelve Months Ended

September 30,
2018

December 31,
2018

March 31,
2019

June 30,
2019

June 30,
2019

Net income (loss) as reported

$

5,948

$

9,987

$

(4,867

)

$

(11,513

)

$

(445

)

Undistributed equity (earnings) losses, net

(185

)

(128

)

116

69

(128

)

Income tax provision (benefit)

906

7,558

(2,458

)

(5,795

)

211

Interest expense

5,634

5,591

4,922

4,694

20,841

Depreciation and amortization

6,076

6,522

6,359

6,290

25,247

Impairment of goodwill

2,205

-

-

-

2,205

Stock compensation expense

1,268

1,108

907

1,193

4,476

Contingent consideration fair value adjustment

-

(1,774

)

-

-

(1,774

)

Unrealized gain on foreign currency contracts

(190

)

(33

)

-

-

(223

)

Other permitted non-cash charges

307

-

-

-

307

SKU Rationalization

-

-

-

8,500

8,500

Acquisition related expenses

43

523

151

-

717

Restructuring expenses

552

971

608

173

2,304

Integration charges

103

433

174

695

1,405

Warehouse relocation

55

118

215

-

388

Projected synergies

-

-

-

-

4,763

Consolidated adjusted EBITDA, before limitation

$

22,722

$

30,876

$

6,127

$

4,306

$

68,794

Permitted non-recurring charge limitation

(8,008

)

Consolidated adjusted EBITDA

$

60,786

Consolidated adjusted EBITDA is a non-GAAP financial measure which is defined in the Company’s debt agreements. Adjusted EBITDA is defined as net income (loss), adjusted to exclude undistributed equity in (earnings) losses, income tax provision (benefit), interest, depreciation and amortization, stock compensation expense, and SKU rationalization expenses.



LIFETIME BRANDS, INC.
Supplemental Information
(In thousands- except per share data)

Reconciliation of GAAP to Non-GAAP Operating Results (continued)

Permitted non-recurring charges includes the non-cash charge associated with the SKU rationalization initiative, restructuring expenses, and integration charges. These addbacks are subject to limitations as defined in our debt agreements. Consolidated adjusted EBITDA includes pro forma adjustments, permitted under the debt agreements, for the acquisition of Filament and projected cost savings, operating expense reductions, restructuring charges and expenses and cost saving synergies projected by the Company as a result of actions taken through June 30, 2019 or expected to be taken as of June 30, 2019, net of the benefits realized.

Adjusted net loss and adjusted diluted loss per common share:

Three Months Ended
June 30,

Six Months Ended
June 30,

2019

2018

2019

2018

Net loss as reported

$

(11,513

)

$

(6,057

)

$

(16,380

)

$

(17,655

)

Adjustments:

Acquisition related expenses

-

391

151

1,200

Restructuring expenses

173

395

781

801

Integration charges

695

110

869

145

Warehouse relocation

-

168

215

2,552

Loss on early retirement of debt

-

-

-

66

Other permitted non-cash charges

-

916

-

1,203

Unrealized gain on foreign currency contracts

-

(2,112

)

-

(1,719

)

Deferred tax for foreign currency translation for Grupo Vasconia

-

501

-

306

SKU Rationalization

8,500

-

8,500

-

Income tax effect on adjustments

(2,333

)

9

(2,605

)

(861

)

Adjusted net loss

$

(4,478

)

$

(5,679

)

$

(8,469

)

$

(13,962

)

Adjusted diluted loss per common share

$

(0.22

)

$

(0.28

)

$

(0.41

)

$

(0.76

)

Adjusted net loss and adjusted diluted loss per common share in the three and six months ended June 30, 2019 excludes acquisition related expenses, restructuring expenses, integration charges, warehouse relocation expenses and SKU rationalization expenses. The income tax effect on adjustments reflects the statutory tax rates applied on the adjustments.

Adjusted net loss and adjusted diluted loss per common share in the three and six months ended June 30, 2018 excludes acquisition related expenses, restructuring expenses, integration charges, warehouse relocation expenses, other permitted non-cash charges, unrealized gain on foreign currency contracts, and the deferred tax expense related to our equity earnings of Vasconia due to recording the tax benefit of cumulative translation gains through other comprehensive loss. The income tax effect on adjustments reflects the statutory tax rates applied on the adjustments.



LIFETIME BRANDS, INC.
Supplemental Information
(In thousands)

Reconciliation of GAAP to Non-GAAP Operating Results (continued)

Constant Currency:

As Reported

Constant Currency (1)

Three Months Ended

Three Months Ended

Year-Over-Year

June 30,

June 30,

Increase (Decrease)

Net sales

2019

2018

Increase
(Decrease)

2019

2018

Increase
(Decrease)

Currency
Impact

Excluding
Currency

Including
Currency

Currency
Impact

U.S.

$

123,092

$

128,985

$

(5,893

)

$

123,092

$

128,983

$

(5,891

)

2

-4.6%

-4.6%

0.0%

International

19,444

19,666

(222

)

19,444

18,588

856

1,078

4.6%

-1.1%

5.7%

Total net sales

$

142,536

$

148,651

$

(6,115

)

$

142,536

$

147,571

$

(5,035

)

$

1,080

-3.4%

-4.1%

0.7%

As Reported

Constant Currency (1)

Six Months Ended

Six Months Ended

Year-Over-Year

June 30,

June 30,

Increase (Decrease)

Net sales

2019

2018

Increase
(Decrease)

2019

2018

Increase
(Decrease)

Currency
Impact

Excluding
Currency

Including
Currency

Currency
Impact

U.S.

$

250,130

$

224,892

$

25,238

$

250,130

$

224,876

$

25,254

16

11.2%

11.2%

0.0%

International

42,332

41,928

404

42,332

39,412

2,920

2,516

7.4%

1.0%

6.4%

Total net sales

$

292,462

$

266,820

$

25,642

$

292,462

$

264,288

$

28,174

$

2,532

10.7%

9.6%

1.1%

  1. “Constant Currency” is determined by applying the 2019 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
(In millions - except per share data)

Reconciliation of GAAP to Non-GAAP Outlook

Adjusted net income and adjusted diluted income per share outlook for the full fiscal year ending December 31, 2019:

Net income outlook

$3 to $5.5

Adjustments:

Acquisition related expenses

0.2

Restructuring, warehouse relocation and integration expenses

2.65 to 2.75

SKU rationalization

8.5

Income tax effect on adjustments

(3.9)

Adjusted net income outlook

$10.50 to $13

Adjusted diluted income per common share outlook

$0.50 to $0.62

Consolidated adjusted EBITDA outlook for the full fiscal year ending December 31, 2019:

Net income outlook

$3 to $5.5

Add back:

Income tax expense

2.5 to 3.5

Interest expense

20

Depreciation and amortization

24.7

Stock compensation expense

4.9

Acquisition related expenses

0.2

Restructuring, warehouse relocation and integration expenses

2.65 to 2.75

SKU rationalization

8.5

Consolidated adjusted EBITDA outlook, before limitation

$66 to $70