Thursday May 1st, 2014 - 12:42PM
Lifetime Brands, Inc. today reported its financial results for the first quarter ended March 31, 2014. Lifetime reported that its consolidated net sales for the quarter were $118.4 million, an increase of $19.7 million, or 20%, as compared to $98.7 million for the corresponding period in 2013.
Consolidated net sales for the company’s wholesale segment were $113.8 million, an increase of $20.7 million or 22.2%, as compared to net sales of $93.1 million for the corresponding period in 2013. Consolidated net wholesale sales in the 2014 period included $17.1 million of net sales from Kitchen Craft and other acquisitions that were completed in the first quarter of 2014, Lifetime reported.
Lifetime’s gross margin was $44.3 million, or 37.4%, as compared to $36.3 million, or 36.8% for the corresponding period in 2013. Gross margin for the wholesale segment was 36.2% for the 2014 period, as compared to 34.9% for the corresponding period in 2013. Its net loss for the quarter was $2.9 million, as compared to $0.6 million for the corresponding period in 2013. Diluted net loss per common share was $0.22, as compared to $0.05 for the corresponding period in 2013. Adjusted net loss was $1.7 million, or $0.13 per diluted share, in the 2014 period, as compared to adjusted net loss of $0.6 million, or $0.05 per diluted share, in the 2013 period. Consolidated EBITDA was $3.7 million, as compared to $3.1 million for the corresponding 2013 period, an increase of 18.9%.
Jeffrey Siegel, Lifetime’s chairman and CEO, said, “I am very pleased with the company’s progress during the quarter, which includes the results of the four businesses we acquired during the period. These acquisitions necessitated significant non-recurring acquisition expenses and a write-off of debt financing fees that, combined with higher other SG&A expenses— especially increased staffing levels to enable us to achieve our aggressive growth targets— produced a decline in net results for the current quarter versus last year. However, as we reported, EBITDA increased 18.9% over the comparable quarter of last year. We expect the impact of the ongoing greater SG&A expenses to be mitigated by higher levels of sales during the second half of the year.”
In January, Lifetime acquired Thomas Plant (Birmingham) Limited. Trading as Kitchen Craft, Thomas Plant is one of the United Kingdom’s leading suppliers of kitchenware products and accessories. In February, Lifetime purchased the intellectual property and certain assets of Built NY, Inc., a designer and distributor of lunch boxes, wine bags and baby accessories. Also in February, the company acquired the intellectual property and certain assets of Empire Silver Company, a U.S. manufacturer of sterling silver and pewter gift items. In March, Lifetime purchased the business and certain assets of La Cafetière Ltd., a supplier of products to brew and serve coffee and tea.
“Of these acquisitions, only Kitchen Craft recorded any significant revenues during the first quarter. However, we expect all four to be running smoothly in the second half of the year and to add over $75 million in net sales and significantly to increase our net income and diluted earnings per share in 2014,” said Siegel.
“In addition, we will begin supplying kitchenware products to almost 400 Walmart stores in China in the second half of this year,” he added.
“On our last conference call, we stated that, for all of 2014, we foresaw sales increasing by approximately 5% organically and approximately 15% from acquisitions, to a total of approximately $600 million. Today, we are reaffirming that guidance.”