Lifetime Increases Net Income in 3rd Qtr (posted 11/12/09)
Lifetime Brands, Inc. recently announced its results for the three months ended September 30, 2009. Net income for the quarter was $4.9 million, compared to a net loss of $1.1 million in the same period last year. Diluted income per common share was $0.40, compared to a loss of $0.09 per common share in the 2008 quarter.
Adjusted EBITDA, a non-GAAP measure that the company defines as net income (loss) before interest, taxes, depreciation, amortization, restructuring expenses and stock option expense, was $12.3 million for the 2009 quarter, compared to $11.5 million in the 2008 period. For the nine months ended September 30, 2009, adjusted EBITDA was $17.9 million, compared to $6.4 million in 2008.
Net sales for the quarter were $111.4 million, compared to $140.6 million in the 2008 quarter. Net wholesale sales were $106.3 million, a decrease of $18.0 million, compared to net wholesale sales of $124.3 million in the 2008 quarter. Approximately one-half of the decrease in the 2009 quarter reflects the absence of sales to Linens ‘N Things, the non-recurrence of sales of excess inventory in connection with the June 2008 purchase of Mikasa and the discontinuance of certain low-margin sales to a direct response retailer.
Net sales for the company's Direct to Consumer business during the quarter were $5.1 million, consisting only of net sales from its e-commerce websites and mail order catalogs. Direct to Consumer sales in the corresponding 2008 quarter were $6.5 million, excluding $9.9 million in net sales from the company’s retail outlet stores that were closed in 2008.
“I am pleased to report that Lifetime’s strong market position, driven by its premier brands and its commitment to innovation, enabled the company to perform well, notwithstanding the weak economy,” said Jeffrey Siegel, chairman, CEO and president. “Throughout the year, retailers sharply trimmed inventories, which now are the lowest in memory. This has had a negative effect on sales, as inventory replenishment generally was at rates below those of retail sell-throughs. While it appears that the sell-down of retail inventories has now run its course, I believe retailers will continue carefully to manage their inventories in a conservative manner for the foreseeable future.
“Despite these challenges, Lifetime achieved new placements in all categories and significantly increased its market share in several product areas, including dinnerware, picture frames and its newest category, water bottles and thermal coffee mugs.
“Despite some recent positive economic news, the retail environment remains challenging, especially as retailers continue to trim their selections and focus on maintaining leaner inventory levels. On the other hand, I believe these conditions will benefit those suppliers that quickly can adapt to new circumstances and can provide retailers with innovative new products at those price points at which consumers are most comfortable. Consequently, I believe Lifetime is well-positioned for the holiday season and for 2010.”
For additional information, including an archived recent conference call discussing these results, visit www.lifetimebrands.com.