UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange
Act of 1934
Date of report (Date of earliest event reported): March 2, 2006
Lifetime Brands, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
0-19254 11-2682486
(Commission File Number) (IRS Employer Identification No.)
One Merrick Avenue, Westbury, New York, 11590
(Address of Principal Executive Offices) (Zip Code)
(Registrant's Telephone Number, Including Area Code) 516-683-6000
(Former Name or Former Address, if Changed Since Last
Report) N/A
Check the appropriate box below if the Form 8-K filing is
intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions (see
General Instruction A.2. below):
Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-
2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-
4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operation and Financial Condition
On March 2, 2006, Lifetime Brands, Inc. (the "Company")
issued a press release announcing the Company's three months
and full year ended December 31, 2005 results. A copy of the
Company's press release is attached hereto as Exhibit 99.1
and hereby incorporated by reference.
Item 9.01. Financial Statements and Exhibits
(c) Exhibits
99.1 Press Release dated March 2, 2006.
Signature
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.
Lifetime Brands, Inc.
By: /s/ Robert McNally
Robert McNally
Vice President of Finance and
Chief Financial Officer
Date: March 3, 2006
Exhibit 99.1
LIFETIME BRANDS DELIVERS RECORD ANNUAL AND QUARTERLY RESULTS
WESTBURY, N.Y., March 2, 2006 -- LIFETIME BRANDS, INC. (NASDAQ
NM: LCUT), a leading designer, developer and marketer of a broad
range of nationally branded consumer products used in the home,
today announced results for the three months and full year ended
December 31, 2005.
Financial and Operating Highlights
Net sales for 2005 increased 63% to $307.9 million. Net
income for the year rose 66% to $14.1 million. Net income per
diluted share increased 64% to $1.23.
Net sales for the fourth quarter of 2005 increased 83% to
$124.4 million. Net income for the quarter rose 35% to $7.2
million. Net income per diluted share increased 28% to $0.60.
During the year, Lifetime achieved significant internal
growth in all of its major product categories.
During the quarter, the Company completed its integration of
the Pfaltzgraff business it acquired in July 2005 and
restructured Pfaltzgraff's supply chain to reduce the cost of
products while keeping quality high.
Jeffrey Siegel, Chairman, President and Chief Executive Officer,
commented, "2005 was an outstanding year for our Company. Even
before taking into account the contributions of the Pfaltzgraff
and Salton businesses we acquired in 2005, our sales and earnings
set records for both the year and the fourth quarter.
"Our results for the year, as well as for the fourth quarter,
reflect dynamic growth in our cutlery and kitchenware categories,
which was powered by a successful rollout of KitchenAid(R) cutlery,
increased retail placement of our expanded line of Farberware(R)
cutlery and increased distribution of KitchenAid(R) and Farberware(R)
tools and gadgets.
"Over the past several months, we completed the integration of
the Pfaltzgraff and Salton businesses, which have firmly
established Lifetime as a leader in the important tabletop
category. We have applied Lifetime's extensive overseas sourcing
expertise for Pfaltzgraff, and have made good progress in
reducing the cost of merchandising while keeping product quality
at the same high level.
"We expect that, in 2006, we will see growth across all the
Company's major brands, products and customer base. This growth
will be driven by our relentless commitment to innovation and new
product development. At the 2006 International Home & Housewares
Show, to be held in Chicago later this month, Lifetime will
introduce approximately 825 new items. For the year, we expect to
introduce approximately 1,400 new SKUs - double last year's
number.
"Overall, we are very pleased with the strength of our business,
and are especially gratified by the strong organic sales momentum
we achieved in the fourth quarter. As a result, our outlook for
2006 remains extremely positive. As we announced in January 2006,
we expect net sales for the year to range from $380 million to
$400 million, and earnings per share to range from $1.45 to
$1.70."
Lifetime has scheduled a conference call Thursday, March 2, at
11:00 a.m. Eastern time to discuss fourth-quarter 2005 results
and additional matters. The dial-in number for the call is (706)
634-1218. A replay of the call will also be available through
Thursday, March 9, and can be accessed by dialing (706) 645-9291,
conference ID #4201405. A live webcast of the call will be
broadcast at the Company's web site, www.lifetimebrands.com. For
those who cannot listen to the live broadcast, an audio replay of
the call will also be available on the site.
Lifetime is a leading designer, marketer and distributor of
kitchenware, cutlery & cutting boards, bakeware & cookware,
pantryware & spices, tabletop and bath accessories, marketing its
products under various trade names, including Farberware(R),
KitchenAid(R), Pfaltzgraff(R), Calvin Klein(R), Cuisinart(R),
Hoffritz(R), Sabatier(R), Nautica(R), Joseph Abboud Environments(R),
Roshco(R), Baker's Advantage(R), Kamenstein(R), CasaModa(TM), and
:USE(R). Lifetime's products are distributed through almost every
major retailer in the United States.
The information herein contains certain forward-looking
statements including statements concerning the Company's future
prospects. These statements involve risks and uncertainties,
including risks relating to general economic conditions and risks
relating to the Company's operations, such as the risk of loss of
major customers and risks relating to changes in demand for the
Company's products, as detailed from time to time in the
Company's filings with the Securities and Exchange Commission.
COMPANY CONTACT: INVESTOR RELATIONS:
Robert McNally Harriet Fried
Chief Financial Officer Lippert/Heilshorn &
(516) 683-6000 Associates, Inc.
(212) 838-3777 or
hfried@lhai.com
LIFETIME BRANDS, INC.
INCOME STATEMENT
(in 000's, except per share data)
Three Months Ended
December 31,
(Unaudited)
2005 2004 % Increase
Net Sales $124,381 $68,059 82.8%
Cost of Sales 72,525 40,100 80.9%
Distribution Expenses 10,795 6,426 68.0%
SG&A 28,355 12,378 129.1%
Income from Operations 12,706 9,155 38.8%
Interest Expense 1,087 299 263.5%
Other (Income) (34) (15)
Income Before Taxes 11,653 8,871 31.3%
Tax Provision 4,427 3,531 25.4%
Net Income $7,226 $5,340 35.3%
Diluted Earnings Per
Common Share $0.60 $0.47
Weighted Average Shares 12,144 11,250
LIFETIME BRANDS, INC.
INCOME STATEMENT
(in 000's, except per share data)
Twelve Months Ended
December 31,
(Unaudited)
2005 2004 % Increase
Net Sales $307,897 $189,458 62.5%
Cost of Sales 177,493 111,497 59.2%
Distribution Expenses 32,966 22,830 44.4%
SG&A 72,266 40,282 79.4%
Income from Operations 25,172 14,849 69.5%
Interest Expense 2,489 835 198.1%
Other (Income) (73) (60)
Income Before Taxes 22,756 14,074 61.7%
Tax Provision 8,647 5,602 54.4%
Net Income $14,109 $8,472 66.5%
Diluted Earnings Per
Common Share $1.23 $0.75
Weighted Average Shares 11,506 11,186
LIFETIME BRANDS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
2005 2004
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 786 $ 1,741
Accounts receivable, net 49,158 34,083
Merchandise inventories 91,953 58,934
Prepaid expenses and other
current assets 14,356 8,667
TOTAL CURRENT ASSETS 156,253 103,425
PROPERTY AND EQUIPMENT, net 23,989 20,003
INTANGIBLES, net 40,264 31,484
OTHER ASSETS 2,645 2,305
TOTAL ASSETS $ 223,151 $ 157,217
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term borrowings $ 14,500 $ 19,400
Accounts payable and accrued
expenses 46,091 28,037
Income taxes payable 9,819 5,476
TOTAL CURRENT LIABILITIES 70,410 52,913
DEFERRED RENT & OTHER LONG TERM
LIABILITIES 2,287 2,072
DEFERRED INCOME TAX LIABILITIES 4,967 4,294
LONG TERM DEBT 5,000 5,000
STOCKHOLDERS' EQUITY 140,487 92,938
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 223,151 $ 157,217