UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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 the earliest event reported) October 30, 2003
Lifetime Hoan Corporation
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
1-19254 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
N/A
(Former name or former address, if changed since last report)
Item 7. Financial Statements and Exhibits
c) Exhibits
99 - Press Release, dated October 30, 2003
Item 12. Results of Operation and Financial Condition
On October 30, 2003, Lifetime Hoan Corporation ("the Company") issued a
press release setting forth the Company's third-quarter 2003 earnings. A
copy of the Company's press release is attached hereto as Exhibit 99 and
hereby incorporated by reference.
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 Hoan Corporation
By: /s/ Robert McNally
Robert McNally
Vice President of Finance and
Chief Financial Officer
Date: October 30, 2003
EXHIBIT 99
LIFETIME HOAN CONTINUES STRONG GROWTH IN SALES AND EARNINGS
IN THIRD QUARTER 2003
WESTBURY, N.Y., October 30, 2003 -- LIFETIME HOAN CORPORATION (NASDAQ NM:
LCUT), a leading marketer of housewares, today announced results for the
third quarter ended September 30, 2003.
Net sales for the quarter increased 37% to a record $44.1 million from
$32.2 million in the third quarter of 2002. Income from continuing
operations increased 135% to $2.9 million from $1.2 million for the same
period in 2002. Earnings per diluted share from continuing operations more
than doubled to $0.27 per share from $0.12 per share in last year's third
quarter.
Jeffrey Siegel, president and chief executive officer, commented, "We are
very pleased with the substantial growth in sales and net income Lifetime
Hoan realized in the third quarter. As we expected, the combination of
exciting new products and significant additional placements produced very
positive results in our lines of kitchen tools and gadgets, bakeware and
Kamenstein pantryware. Our new S'mores Maker, which became widely
available at many of our major retail customers at the end of August, has
been just as popular as we predicted.
"Lifetime's recent acquisition of the business and certain assets of :USEr
- Tools for Civilizationr, a company that creates contemporary lifestyle
products for the home, is an exciting step forward for us. Its reputation
for design excellence in decorative hardware, mirrors and lighting for the
bath, as well as decorative window accessories, is the perfect complement
to our existing expertise and will help us expand our product line beyond
the kitchen, as well as enabling us to gain distribution in the strong `do-
it-yourself' category."
Mr. Siegel continued, "With the completion of the third quarter, we are
updating our earnings guidance for 2003. We now expect Lifetime's net
sales for the year to total approximately $155 to $160 million. Earnings
per share are estimated to total approximately $0.75 to $0.80."
As announced in 2002, Lifetime sold its 51% interest in the businesses of
each of Prestige Italiana, Spa. and Prestige Haushaltswaren GmbH (together,
the "Prestige Companies"). The loss from the Prestige Companies'
operations for the third quarter of 2002 is reflected as discontinued
operations on the Company's income statements.
Separately, the Company announced that its Board of Directors declared a
regular quarterly cash dividend of $0.0625 per share, payable on November
20, 2003 to shareholders of record on November 4, 2003.
Lifetime Hoan has scheduled a conference call Thursday, October 30 at 11:30
a.m. Eastern Time to discuss third-quarter 2003 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, November 6, and can be
accessed by dialing (706) 645-9291, conference ID #3393554. A live webcast
of the call will be broadcast at the Company's web site,
www.lifetime.hoan.com. For those who cannot listen to the live broadcast,
an audio replay of the call will also be available on the site.
Lifetime Hoan Corporation is a leading designer, marketer and distributor
of household cutlery, kitchenware, cutting boards, pantryware and bakeware,
marketing its products under various trade names including Farberwarer and
Hoffritzr. Through the use of various brand names, Lifetime Hoan's
products are distributed through almost every major retailer in the U.S.
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.
Tables to follow
COMPANY CONTACT: INVESTOR RELATIONS:
Robert McNally Harriet Fried
Chief Financial Officer Lippert/Heilshorn & Associates, Inc.
(516) 683-6000 (212) 838-3777 or hfried@lhai.com
LIFETIME HOAN CORPORATION
CONSOLIDATED INCOME STATEMENTS
(in 000's, except per share data)
Three Months Ended
September 30,
(Unaudited)
% Increase
2003 2002 (Decrease)
Net Sales $44,068 $32,235 36.7%
Cost of Sales 25,552 17,612 45.1%
Distribution Expenses 5,337 4,885 9.3%
SG&A 8,163 7,435 9.8%
Income from Operations 5,016 2,303 117.8%
Interest Expense 189 239 (20.9%)
Other (Income) (16) (18) (11.1%)
Income Before Taxes 4,843 2,082 132.6%
Tax Provision 1,956 854 129.0%
Income from Continuing
Operations 2,887 1,228 135.1%
Loss from Discontinued
Operations - (685)
Net Income $2,887 $543
Diluted Earnings Per Share
from Continuing Operations $0.27 $0.12 125.0%
Weighted Average Shares 10,784 10,536
Diluted Earnings Per Share $0.27 $0.05
Weighted Average Shares 10,784 10,536
LIFETIME HOAN CORPORATION
CONSOLIDATED INCOME STATEMENTS
(in 000's, except per share data)
Nine Months Ended
September 30,
(Unaudited)
% Increase
2003 2002 (Decrease)
Net Sales $98,302 $83,703 17.4%
Cost of Sales 55,982 45,199 23.9%
Distribution Expenses 14,103 15,543 (9.3%)
SG&A 22,742 21,085 7.9%
Income from Operations 5,475 1,876 191.8%
Interest Expense 480 687 (30.1%)
Other (Income) (51) (47) 8.5%
Income Before Taxes 5,046 1,236 308.3%
Tax Provision 2,038 471 332.7%
Income from Continuing
Operations 3,008 765 293.2%
Loss from Discontinued
Operations - (1,029)
Net Income (Loss) $3,008 ($264)
Diluted Income Per Share
from Continuing Operations $0.28 $0.07
Weighted Average Shares 10,660 10,534
Diluted Income (Loss) Per
Share $0.28 ($0.03)
Weighted Average Shares 10,660 10,534
LIFETIME HOAN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, September 30,
2003 2002
(Unaudited) (Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $213 $25
Accounts receivable, net 28,114 18,440
Merchandise inventories 56,357 53,226
Prepaid expenses and other
current assets 4,497 6,233
TOTAL CURRENT ASSETS 89,181 77,924
PROPERTY AND EQUIPMENT, net 19,985 21,059
INTANGIBLES, net 23,660 24,050
OTHER ASSETS 2,120 2,174
TOTAL ASSETS $134,946 $125,207
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES
Short-term borrowings $26,500 $27,600
Accounts payable and trade
acceptances 7,482 5,833
Other current liabilities 20,822 15,507
TOTAL CURRENT LIABILITIES 54,804 48,940
STOCKHOLDERS' EQUITY 80,142 76,267
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $134,946 $125,207