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Lifetime Brands, Inc. Reports Third Quarter 2019 Financial Results

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Declares Regular Quarterly Dividend

GARDEN CITY, N.Y., Nov. 07, 2019 (GLOBE NEWSWIRE) -- Lifetime Brands, Inc. (LCUT), a leading global designer, developer and marketer of a broad range of branded consumer products used in the home, today reported its financial results for the quarter ended September 30, 2019.

Robert Kay, Lifetime’s Chief Executive Officer, commented, “We are pleased with Lifetime’s progress in the third quarter, with our businesses delivering solid growth over last year in a challenging retail end market. The strategy that we’ve implemented over the past year is yielding meaningful results as we focus on our newly rolled-out strategic product development and sales initiative and unlocking the value of the cost efficiency campaign launched in connection with the Filament acquisition. We are also beginning to see the early benefits of our product portfolio optimization and rationalization, and we remain committed to increasing the brand equity and trend and product relevance of our best-in-class products and brands. While we are pleased to have produced growth during the quarter, these results were partially offset by the continued impact of U.S. tariffs and Brexit uncertainty in Europe, as well as some operational challenges as part of the ongoing reorganization of our UK operations. We remain optimistic in our ability to continue on this path and will continue to invest in initiatives to advance our strategy and global positioning.”

Third Quarter Financial Highlights:

Consolidated net sales for the three months ended September 30, 2019 were $215.5 million, representing an increase of $6.1 million, or 2.9%, as compared to consolidated net sales of $209.4 million for the corresponding period in 2018. In constant currency, which excludes the impact of foreign exchange fluctuations, consolidated net sales increased $7.2 million, or 3.5%, as compared to consolidated net sales in the corresponding period in 2018.

Gross margin for the three months ended September 30, 2019 was $72.9 million, or 33.8%, as compared to $73.8 million, or 35.2%, for the corresponding period in 2018. The decrease was primarily due to changes in both product and customer mix for the U.S. segment and International segment.

Mr. Kay added, “In connection with the Company’s European restructuring initiative, in the quarter we recognized a $9.7 million non-cash write-off of the full carrying value of the goodwill. This is a one-time accounting charge relating to our 2014 acquisition, and has no impact on the benefits to be derived from the reorganization of our European operations, which we expect will produce a meaningful improvement in profitability.”

Income from operations in the 2019 period, including the impact of the $9.7 million non-cash goodwill impairment taken during the period, was $6.9 million. For the corresponding period in 2018 net income from operations was $12.3 million, including a non-cash goodwill impairment charge taken in the third quarter of 2018 of $2.2 million. Excluding the non-cash goodwill impairment charges taken in each of the 2019 and 2018 third quarter periods, net income from operations would have been $16.6 million and $14.5 million, respectively.

Net loss was $13.5 million, or $0.66 per diluted share, as compared to a net income of $5.9 million, or $0.29 per diluted share, in the corresponding period in 2018.

Excluding the non-cash goodwill impairment charges and other adjustments taken in each of the 2019 and 2018 third quarter periods, adjusted net loss was $2.7 million, or $0.13 per diluted share and adjusted net income was $8.5 million, or $0.41 per diluted share, respectively. A table which reconciles this non-GAAP financial measure to net income, as reported, is included below.

Nine Months Financial Highlights:

Consolidated net sales for the nine months ended September 30, 2019 were $508.0 million, an increase of $31.7 million, or 6.7%, as compared to net sales of $476.3 million for the corresponding period in 2018. The nine months ended September 30, 2018 includes sales of $77.2 million from Filament for the period from March 2, 2018, the date of the acquisition. In constant currency, which excludes the impact of foreign exchange fluctuations, consolidated net sales increased $35.3 million, or 7.5 %, as compared to consolidated net sales in the corresponding period in 2018.

Gross margin for the nine months ended September 30, 2019 was $171.3 million, or 33.7%, as compared to $171.0 million, or 35.9%, 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 $179.8 million, or 35.4%, in the 2019 period.

Including the non-recurring, non-cash charge for the SKU rationalization in 2019 and the impact of the non-cash goodwill impairment in each of the 2019 and 2018 third quarter periods, loss from operations was $7.9 million in 2019 and $4.3 million in the corresponding period of 2018. Excluding the non-recurring, non-cash charge for the SKU rationalization in 2019 and the impact of the non-cash goodwill impairment in each of the 2019 and 2018 third quarter periods, net income (loss) from operations would have been $10.3 million in 2019, and net (loss) from operations would have been $2.1 million in 2018, respectively.

Net loss was $29.9 million, or $1.46 per diluted share, as compared to a net loss of $11.7 million, or $0.61 per diluted share, in the corresponding period in 2018.

Excluding the non-recurring, non-cash charge for the SKU rationalization in 2019 and the impact of the non-cash goodwill impairment in each of the 2019 and 2018 third quarter periods, adjusted net loss was $11.2 million, or $(0.55) per diluted share in 2019 and $5.7 million, or $0.30 per diluted share in 2018.

Consolidated adjusted EBITDA, after giving effect to certain adjustments and before limitations as permitted and defined under our debt agreements, was $69.6 million for the twelve months ended September 30, 2019. A table which reconciles this non-GAAP financial measure to net income, as reported, is included below.

Outlook Update

For the full fiscal year ending December 31, 2019, the Company is providing a revised financial outlook which reflects the non-cash goodwill impairment charge of $9.7 million, as follows:

Net sales

$745 to $750 million

Income from operations

$13.6 to $17.6 million

Income from operations, excluding SKU rationalization and impairment of goodwill

$31.8 to $35.8 million

Net loss

$(8.8) to $(5.8) million

Weighted-average basic shares

20.4 million

Weighted-average diluted shares

20.5 million

Basic loss per common share

$(0.43) to $(0.28) per share

Adjusted net income

$9.6 to $12.6 million

Adjusted diluted income per common share

$0.47 to $0.61 per share

Consolidated adjusted EBITDA, before limitation

$66 to $70 million

This outlook is based on a forecasted GBP to USD rate of $1.25. Net income, adjusted net income, diluted income per common share and adjusted diluted income per common share were calculated based on an effective tax provision rate of 30.0%.

Dividend

On November 7, 2019, the Board of Directors declared a quarterly dividend of $0.0425 per share payable on February 14, 2020 to shareholders of record on January 31, 2020.

Conference Call

The Company has scheduled a conference call for Thursday, November 7, 2019 at 11:00 a.m. The dial-in number for the conference call is (866) 610-1072 (U.S.) or (973) 935-2840 (International), Conference ID: 5897824.

A live webcast of the conference call will be accessible through:
https://event.on24.com/wcc/r/2126405-1/AB1D4C8524E2F8A6266F3AFED896C7DE.

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 income, adjusted diluted income 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 measures 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; warehouse consolidation efforts performed by the business; the ongoing reorganization of our U.K. operations; 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 designer, developer and marketer of a broad range of branded consumer 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
September 30,

Nine Months Ended
September 30,

2019

2018

2019

2018

Net sales

$

215,502

$

209,448

$

507,964

$

476,268

Cost of sales

142,561

135,663

336,683

305,318

Gross margin

72,941

73,785

171,281

170,950

Distribution expenses

18,537

16,612

49,938

49,376

Selling, general and administrative expenses

37,389

42,113

118,379

122,330

Restructuring expenses

338

552

1,119

1,353

Impairment of goodwill

9,748

2,205

9,748

2,205

Income (loss) from operations

6,929

12,303

(7,903

)

(4,314

)

Interest expense

(5,172

)

(5,634

)

(14,788

)

(12,413

)

Loss on early retirement of debt

(66

)

Income (loss) before income taxes and equity in (losses) earnings

1,757

6,669

(22,691

)

(16,793

)

Income tax (provision) benefit

(15,066

)

(906

)

(6,813

)

4,669

Equity in (losses) earnings, net of taxes

(210

)

185

(395

)

417

NET (LOSS) INCOME

$

(13,519

)

$

5,948

$

(29,899

)

$

(11,707

)

BASIC (LOSS) INCOME PER COMMON SHARE

(0.66

)

$

0.29

(1.46

)

$

(0.61

)

DILUTED (LOSS) INCOME PER COMMON SHARE

(0.66

)

$

0.29

(1.46

)

$

(0.61

)



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

September 30,
2019

December 31,
2018

(unaudited)

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$

4,761

$

7,647

Accounts receivable, less allowances of $9,345 at September 30, 2019 and $7,855 at December 31, 2018

161,935

125,292

Inventory

229,947

173,601

Prepaid expenses and other current assets

9,842

10,822

Income taxes receivable

1,442

TOTAL CURRENT ASSETS

406,485

318,804

PROPERTY AND EQUIPMENT, net

28,229

25,762

OPERATING LEASE RIGHT-OF-USE ASSETS

108,323

INVESTMENTS

20,347

22,582

INTANGIBLE ASSETS, net

316,343

338,847

DEFERRED INCOME TAXES

80

733

OTHER ASSETS

3,925

1,844

TOTAL ASSETS

$

883,732

$

708,572

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES

Current maturity of term loan

$

4,264

$

1,253

Accounts payable

67,784

38,167

Accrued expenses

58,252

45,456

Income taxes payable

4,420

Current portion of operating lease liabilities

10,741

TOTAL CURRENT LIABILITIES

145,461

84,876

DEFERRED RENT & OTHER LONG-TERM LIABILITIES

10,987

23,339

DEFERRED INCOME TAXES

14,947

15,141

OPERATING LEASE LIABILITIES

113,506

INCOME TAXES PAYABLE, LONG-TERM

949

949

REVOLVING CREDIT FACILITY

91,212

42,080

TERM LOAN

258,745

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, $0.01 par value, shares authorized: 50,000,000 at September 30, 2019 and December 31, 2018; shares issued and outstanding: 21,256,793 at September 30, 2019 and 20,764,143 at December 31, 2018

213

208

Paid-in capital

261,959

258,637

Retained earnings

22,634

55,264

Accumulated other comprehensive loss

(36,881

)

(34,616

)

TOTAL STOCKHOLDERS’ EQUITY

247,925

279,493

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

883,732

$

708,572



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

Nine Months Ended
September 30,

2019

2018

OPERATING ACTIVITIES

Net loss

$

(29,899

)

$

(11,707

)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

18,771

16,807

Impairment of goodwill

9,748

2,205

Amortization of financing costs

1,312

1,103

Deferred rent

357

Non-cash lease expense

1,050

Stock compensation expense

3,605

3,027

Undistributed equity in losses (earnings), net of taxes

395

(417

)

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

(37,343

)

(13,245

)

Inventory

(66,195

)

(51,392

)

Prepaid expenses, other current assets and other assets

756

905

Accounts payable, accrued expenses and other liabilities

43,465

29,059

Income taxes receivable

4,434

(2,952

)

Income taxes payable

1,442

(4,245

)

NET CASH USED IN OPERATING ACTIVITIES

(39,959

)

(30,429

)

INVESTING ACTIVITIES

Purchases of property and equipment

(7,618

)

(5,420

)

Filament acquisition, net of cash acquired

(217,521

)

NET CASH USED IN INVESTING ACTIVITIES

(7,618

)

(222,941

)

FINANCING ACTIVITIES

Proceeds from revolving credit facility

258,647

203,237

Repayments of revolving credit facility

(208,737

)

(210,271

)

Proceeds from term loan

275,000

Repayments of term loan

(2,063

)

(1,375

)

Proceeds from short term loan

216

Payments on short term loan

(206

)

Payment of financing costs

(11,171

)

Payment of equity issuance costs

(936

)

Payments for capital leases

(18

)

(67

)

Payments of tax withholding for stock based compensation

(390

)

(442

)

Proceeds from the exercise of stock options

133

143

Cash dividends paid

(2,693

)

(2,405

)

NET CASH PROVIDED BY FINANCING ACTIVITIES

44,879

251,723

Effect of foreign exchange on cash

(188

)

(190

)

DECREASE IN CASH AND CASH EQUIVALENTS

(2,886

)

(1,837

)

Cash and cash equivalents at beginning of period

7,647

7,600

CASH AND CASH EQUIVALENTS AT END OF PERIOD

$

4,761

$

5,763



LIFETIME BRANDS, INC.
Supplemental Information
(In thousands)

Reconciliation of GAAP to Non-GAAP Operating Results

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

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

Three months ended September 30, 2019

$

25,758

Three months ended June 30, 2019

4,306

Three months ended March 31, 2019

6,127

Three months ended December 31, 2018

30,876

Pro forma projected synergies

2,523

Consolidated adjusted EBITDA, before limitation

69,590

Permitted non-recurring charge limitation

(8,471

)

Consolidated adjusted EBITDA

$

61,119


Three Months Ended

Twelve Months
Ended
September 30,

2019

December 31,
2018

March 31,
2019

June 30,
2019

September 30,
2019

Net income (loss) as reported

$

9,987

$

(4,867

)

$

(11,513

)

$

(13,519

)

$

(19,912

)

Undistributed equity (earnings) losses, net

(128

)

116

69

210

267

Income tax provision (benefit)

7,558

(2,458

)

(5,795

)

15,066

14,371

Interest expense

5,591

4,922

4,694

5,172

20,379

Depreciation and amortization

6,522

6,359

6,290

6,122

25,293

Impairment of goodwill

9,748

9,748

Stock compensation expense

1,108

907

1,193

1,505

4,713

Contingent consideration fair value adjustments

(1,774

)

(1,774

)

Unrealized gain on foreign currency contracts

(33

)

(33

)

Other permitted non-cash charges

SKU Rationalization

8,500

8,500

Acquisition related expenses

523

151

674

Restructuring expenses

971

608

173

338

2,090

Integration charges

433

174

695

235

1,537

Warehouse relocation

118

215

881

1,214

Projected synergies

2,523

Consolidated adjusted EBITDA, before limitation

$

30,876

$

6,127

$

4,306

$

25,758

$

69,590

Permitted non-recurring charge limitation

(8,471

)

Consolidated adjusted EBITDA

$

61,119

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 September 30, 2019 or expected to be taken as of September 30, 2019, net of the benefits realized.

Adjusted net income (loss) and adjusted diluted (loss) income per common share (in thousands):

Three Months Ended September 30,

Nine Months Ended September 30,

2019

2018

2019

2018

Net (loss) income as reported

$

(13,519

)

$

5,948

$

(29,899

)

$

(11,707

)

Adjustments:

Acquisition related expenses

43

151

1,243

Restructuring expenses

338

552

1,119

1,353

Integration charges

235

103

1,104

248

Warehouse relocation

881

55

1,096

2,607

Loss on early retirement of debt

66

Other permitted non-cash charges

307

1,510

Unrealized gain on foreign currency contracts

(190

)

(1,909

)

Impairment of goodwill

9,748

2,205

9,748

2,205

Deferred tax for foreign currency translation for Grupo Vasconia

(581

)

(275

)

SKU Rationalization

8,500

Income tax effect on adjustments

(422

)

9

(3,027

)

(1,080

)

Adjusted net (loss) income

$

(2,739

)

$

8,451

$

(11,208

)

$

(5,739

)

Adjusted diluted (loss) income per common share

$

(0.13

)

$

0.41

$

(0.55

)

$

(0.30

)

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

Adjusted net income (loss) and adjusted diluted loss income per common share in the three and nine months ended September 30, 2018 excludes acquisition related expenses, restructuring expenses, integration charges, impairment of goodwill, 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 income (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
Three Months Ended
September 30,

Constant Currency (1)
Three Months Ended
September 30,

Year-Over-Year
Increase (Decrease)

Net sales

2019

2018

Increase
(Decrease)

2019

2018

Increase
(Decrease)

Currency
Impact

Excluding
Currency

Including
Currency

Currency
Impact

U.S.

$

195,199

$

186,064

$

9,135

$

195,199

$

186,064

$

9,135

4.9

%

4.9

%

100.0

%

International

20,303

23,384

(3,081

)

20,303

22,216

(1,913

)

(1,168

)

(8.6

)%

-13.2

%

65.2

%

Total net sales

$

215,502

$

209,448

$

6,054

$

215,502

$

208,280

$

7,222

$

(1,168

)

3.5

%

2.9

%

120.7

%


As Reported
Nine Months Ended
September 30,

Constant Currency (1)
Nine Months Ended
September 30,

Year-Over-Year
Increase (Decrease)

Net sales

2019

2018

Increase
(Decrease)

2019

2018

Increase
(Decrease)

Currency
Impact

Excluding
Currency

Including
Currency

Currency
Impact

U.S.

$

445,329

$

410,955

$

34,374

$

445,329

$

410,928

$

34,401

27

8.4

%

8.4

%

100.0

%

International

62,635

65,313

(2,678

)

62,635

61,776

859

3,537

1.4

%

(4.1

)%

(34.1

)%

Total net sales

$

507,964

$

476,268

$

31,696

$

507,964

$

472,704

$

35,260

$

3,564

7.5

%

6.7

%

111.9

%

(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 loss outlook

$(8.8) to $(5.8)

Adjustments:

Acquisition related expenses

0.2

Restructuring, warehouse relocation and integration expenses

4.4

SKU Rationalization

8.5

Goodwill Impairment

9.7

Income tax effect on adjustments

(4.4)

Adjusted net income outlook

$9.6 to $12.6

Adjusted diluted income per common share outlook

$0.47 to $0.61

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

Net loss outlook

$(8.8) to $(5.8)

Add back:

Income tax expense

2 to 3

Interest expense

20

Depreciation and amortization

24.6

Stock compensation expense

5.0

Acquisition related expenses

0.2

Goodwill Impairment

9.7

Undistributed equity earnings

0.4

Restructuring, warehouse relocation and integration expenses

4.4

SKU Rationalization

8.5

Consolidated adjusted EBITDA outlook, before limitation

$66 to $70