Thursday March 13th, 2014 - 2:42PM
Lifetime Brands, Inc. today reported its financial results for the fourth quarter and year ended December 31, 2013. The report notes a 38% decrease in fourth quarter net income to $9.4 million, down from $15.2 million in the corresponding period in 2012.
For the full fiscal year, the company saw a 3.3% increase in net sales versus 2012 to a consolidated $486.8 million. The company also announced that it has acquired United Kingdom-based La Cafetière from The Greenfield Group Ltd., including exclusive distribution rights.
La Cafetière designs and distributes products to brew and serve coffee and tea under the La Cafetière and Randwyck brands. Terms of the deal were not disclosed.
Jeffrey Siegel, Lifetime's chairman and CEO said, "Lifetime’s results for 2013 were affected by a number of factors that masked fundamental improvements in our operating model and which we believe have positioned the company to achieve substantially higher sales and earnings in the years ahead. Among these negative factors were a struggling U.S. economy, as evidenced by weak growth in disposable personal income and personal consumption expenditures, the imposition of higher duties on ceramic products by the European Union, a write-down in the fair value of our investment in Grupo Vasconia SAB to the market price at September 30, 2013, overall weakness in the Mexican economy that affected Grupo Vasconia’s performance, and greater-than-expected expenses in connection with Grupo Vasconia’s integration of Almexa, the aluminum company it acquired in 2012."
Additionally, the company reported that consolidated net sales in the 2013 period included $19.5 million of net sales from Fred & Friends, which was acquired in December 2012.
"Despite these challenges, consolidated net sales grew by 3.3%. This growth was driven by the addition of Fred & Friends and increases in our core U.S. kitchenware categories, offset by decreases in our U.S. tableware businesses and at Creative Tops, our U.K. subsidiary, due to the impact of the higher duties on ceramic products."
Siegel also noted that in 2014 he expects an improving U.S. economy and new product initiatives to further growth. He also announced that the company will introduce 10 new brands this weekend at the International Home + Housewares Show in Chicago.
Siegel continued, "Lifetime QM, our unique quality management system, will be fully implemented by mid-year, and its impact should begin to be reflected in our financial results in the second half of the year. Lifetime’s growth in 2014 also should benefit from three acquisitions that we completed early in 2014. In January, we acquired Kitchen Craft, a leading supplier of kitchenware products and accessories in the U.K. In February, we acquired the business and certain assets of Built NY, a designer and distributor of brightly colored, uniquely patterned Neoprene products including bags, totes, cases and sleeves, and in March, we purchased the business and certain assets of La Cafetière, a supplier of products to brew and serve coffee and tea. Together, we believe these acquisitions have the potential to add approximately $100 million in net sales and significantly to increase the company’s net income and earnings per share in 2014."