• Lifetime Brands, Inc. Reports Third Quarter 2023 Financial Results

    Source: Nasdaq GlobeNewswire / 09 Nov 2023 07:00:01   America/New_York

    Declares Regular Quarterly Dividend

    GARDEN CITY, N.Y., Nov. 09, 2023 (GLOBE NEWSWIRE) -- Lifetime Brands, Inc. (NasdaqGS: LCUT), a leading global designer, developer and marketer of a broad range of branded consumer products used in the home, today reported its financial results for the quarter ended September 30, 2023.

    Rob Kay, Lifetime’s Chief Executive Officer, commented, “We delivered strong third quarter performance driven by the continued rebound of our core U.S. business and supported by our ongoing focus on actions to drive growth and profitability in a dynamic operating environment. As recovery in our core U.S. business accelerates and retailer purchasing behavior continues to normalize, we expect to see sustained positive trends in shipment and ordering activity. Though international end markets remain under pressure, the traction we are gaining through the continued execution of our strategy gives us confidence in our ability to drive growth and profitability in the future.”

    Mr. Kay continued, “Based on our third quarter results and positive forward momentum as we enter the fourth quarter, we are raising the low end of our full year 2023 guidance. We now expect net sales in the range of $670 to $690 million and adjusted EBITDA in the range of $52 to $55 million. With a leading portfolio of brands, an increasingly resilient and disciplined business model, and a strong financial foundation, we are well-positioned to bolster our strong market share position and unlock value for our shareholders.

    In October, the Company launched the syndication of an Amendment & Extension of our Term Loan B due 2025 through an extended maturity of August 2027. The Company has received the required commitments from lenders and expects the closing to occur shortly.”

    Third Quarter Financial Highlights:

    Consolidated net sales for the three months ended September 30, 2023 were $191.7 million, representing an increase of $5.1 million, or 2.7%, as compared to net sales of $186.6 million for the corresponding period in 2022. In constant currency, a non-GAAP financial measure, which excludes the impact of foreign exchange fluctuations and was determined by applying 2023 average rates to 2022 local currency amounts, consolidated net sales increased by $4.1 million, or 2.2%, as compared to consolidated net sales in the corresponding period in 2022. A table reconciling this non-GAAP financial measure to consolidated net sales, as reported, is included below.

    Gross margin for the three months ended September 30, 2023 was $71.0 million, or 37.0%, as compared to $67.8 million, or 36.4%, for the corresponding period in 2022.

    Income from operations was $13.6 million, as compared to $7.6 million for the corresponding period in 2022.

    Adjusted income from operations(1) was $17.7 million, as compared to $16.8 million for the corresponding period in 2022.

    Net income was $4.2 million, or $0.20 per diluted share, as compared to net loss of $(6.4) million, or $(0.30) per diluted share, in the corresponding period in 2022.

    Adjusted net income(1) was $7.7 million, or $0.36 per diluted share, as compared to adjusted net income(1) of $6.2 million, or $0.29 per diluted share, in the corresponding period in 2022.

    (1) A table reconciling this non-GAAP financial measure to its most comparable GAAP financial measure, as reported, is included below.

    Nine Months Financial Highlights:

    Consolidated net sales for the nine months ended September 30, 2023 were $483.5 million, a decrease of $37.1 million, or 7.1%, as compared to net sales of $520.6 million for the corresponding period in 2022. In constant currency, a non-GAAP financial measure, which excludes the impact of foreign exchange fluctuations and was determined by applying 2023 average rates to 2022 local currency amounts, consolidated net sales decreased by $36.2 million, or 7.0%, as compared to consolidated net sales in the corresponding period in 2022. A table reconciling this non-GAAP financial measure to consolidated net sales, as reported, is included below.

    Gross margin for the nine months ended September 30, 2023 was $180.8 million, or 37.4%, as compared to $186.1 million, or 35.7%, for the corresponding period in 2022.

    Income from operations was $16.2 million, as compared to $11.5 million for the corresponding period in 2022.

    Adjusted income from operations(1) was $29.5 million, as compared to $31.2 million for the corresponding period in 2022.

    Net loss was $(11.1) million, or $(0.52) per diluted share, as compared to net loss of $(9.4) million, or $(0.44)  per diluted share, in the corresponding period in 2022. Net loss for the current period includes a non-cash impairment charge of $6.8 million related to the Company’s equity investment in Grupo Vasconia, as compared to $6.2 million for the corresponding period in 2022.

    Adjusted net income(1) was $4.7 million, or $0.22 per diluted share, as compared to adjusted net income(1) of $10.1 million, or $0.46 per diluted share, in the corresponding period in 2022.

    Adjusted EBITDA(1) was $55.5 million for the trailing twelve months ended September 30, 2023. Pro forma adjusted EBITDA(1) was $55.8 million for the trailing twelve months ended September 30, 2023.

    Lifetime continues to take actions to further strengthen its financial position and is highly focused on expense controls and improving inventory turns. At September 30, 2023, the Company’s liquidity was $198.8 million, which is comprised of cash on hand, available borrowings under the credit facility, and availability under the Receivables Purchase Agreement.

    On October 25, 2023, the Company launched the syndication of an Amendment & Extension of the Company’s existing Term Loan B facility due 2025 through an extended maturity of August 2027. The Company has received the required commitments from the lenders and expects the closing of such Term Loan B facility in the fourth quarter of 2023.

    (1) A table reconciling this non-GAAP financial measure to its most comparable GAAP financial measure, as reported, is included below.

    Full Year 2023 Guidance Update

    For the full year ending December 31, 2023, the Company is providing updated financial guidance as follows:
      
    Net sales$670 to $690 million
    Income from operations$26.2 to $29.2 million
    Adjusted income from operations$43.5 to $46.5 million
    Net loss(1)$(7.2) to $(6.0) million
    Adjusted net income$11.1 to $12.3 million
    Diluted loss per common share(1)$(0.33) to $(0.28) per share
    Adjusted diluted income per common share$0.51 to $0.56 per share
    Weighted-average diluted shares21.8 million
    Adjusted EBITDA$52 to $55 million
      
    (1) Net loss and diluted loss per common share guidance does not include an estimate for extinguishment of debt loss that may be recognized in connection with the extension of the Company's Term Loan B facility.
      

    Tables reconciling non-GAAP financial measures to GAAP financial measures, as reported, are included below.

    Dividend

    On November 7, 2023, the Board of Directors declared a quarterly dividend of $0.0425 per share payable on February 15, 2024 to stockholders of record on February 1, 2024.

    Conference Call

    The Company has scheduled a conference call for Thursday, November 9, 2023 at 11:00 a.m. (Eastern Time). The dial-in number for the conference call is (877) 524-8416 (U.S.) or +1 (412) 902-1028 (International).

    A live webcast of the conference call will be accessible through:

    https://event.choruscall.com/mediaframe/webcast.html?webcastid=karwksyB

    For those who cannot listen to the live broadcast, an audio replay of the webcast will be available until May 7, 2024.

    Non-GAAP Financial Measures

    This earnings release contains non-GAAP financial measures, including constant currency net sales, adjusted (loss) income from operations, adjusted net loss, adjusted net income, adjusted diluted income per common share, adjusted EBITDA, adjusted EBITDA, before limitation, pro forma adjusted EBITDA, before limitation, and pro forma adjusted EBITDA. A non-GAAP financial measure is a numerical measure of a company’s historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income, balance sheets, or statements of cash flows of a company; or, includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. These non-GAAP financial measures are provided because the Company's management uses these financial measures in evaluating the Company’s on-going financial results and trends, and management believes that exclusion of certain items allows for more accurate period-to-period comparison of the Company’s operating performance by investors and analysts. Management uses these non-GAAP financial measures as indicators of business performance. These non-GAAP financial measures should be viewed as a supplement to, and not a substitute for, GAAP financial measures of performance. As required by SEC rules, the Company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

    Forward-Looking Statements

    In this press release, the use of the words “advance” “believe,” “continue,” “could,” “deliver,” “drive,” “enable,” “expect,” “gain,” “goal,” “grow,” “intend,” “maintain,” “manage,” “may,” “outlook,” “plan,” “positioned,” “project,” “projected,” “should,” “take,” “target,” “unlock,” “will,” “would”, or similar expressions is intended to identify forward-looking statements. Such statements include all statements regarding the growth of the Company, our financial guidance, our ability to navigate the current environment and advance our strategy, our commitment to increasing investments in future growth initiatives, our initiatives to create value, our efforts to mitigate geopolitical factors and tariffs, our current and projected financial and operating performance, results, and profitability and all guidance related thereto, including forecasted exchange rates and effective tax rates, as well as our continued growth and success, future plans and intentions regarding the Company and its consolidated subsidiaries. Such statements represent the Company’s current judgments, estimates, and assumptions about possible future events. The Company believes these judgments, estimates, and assumptions are reasonable, but these statements are not guarantees of any events or financial or operational results, and actual results may differ materially due to a variety of important factors. Such factors might include, among others, the Company’s ability to comply with the requirements of its credit agreements; the availability of funding under such credit agreements; the Company’s ability to maintain adequate liquidity and financing sources and an appropriate level of debt, as well as to deleverage its balance sheet; the possibility of impairments to the Company’s goodwill; the possibility of impairments to the Company’s intangible assets; the Company's ability to drive future growth and profitability from its European operations; changes in U.S. or foreign trade or tax law and policy; changes in general economic conditions that could affect customer purchasing practices or consumer spending; the impact of changes in general economic conditions on the Company’s customers; customer ordering behavior; the performance of our newer products; expenses and other challenges relating to the integration of any future acquisitions; changes in demand for the Company’s products; changes in the Company’s management team; the significant influence of the Company’s largest stockholder; fluctuations in foreign exchange rates; changes in U.S. trade policy or the trade policies of nations in which we or our suppliers do business; uncertainty regarding the long-term ramifications of the U.K.’s exit from the European Union; shortages of and price volatility for certain commodities; global health epidemics, such as the COVID-19 pandemic; social unrest, including related protests and disturbances; the emergence or continuation of geopolitical conflicts including: the conflict in Ukraine, the conflict in Israel and surrounding areas, the possible expansion of such conflicts and the potential geopolitical consequences; macroeconomic conditions, including inflationary impacts and disruptions to the global supply chain; increase in supply chain costs; the imposition of tariffs and other trade policies and/or economic sanctions implemented by the U.S. and other governments; our ability to successfully integrate acquired businesses, including our recent acquisition of S'well; our ability to achieve projected synergies with respect to the S'well business; our expectations regarding the future level of demand for our products; our ability to execute on the goals and strategies set forth in our five-year plan; and significant changes in the competitive environment and the effect of competition on the Company’s markets, including on the Company’s pricing policies, financing sources and ability to maintain an appropriate level of debt. The Company undertakes no obligation to update these forward-looking statements other than as required by law.

    Lifetime Brands, Inc.

    Lifetime Brands is a leading global designer, developer and marketer of a broad range of branded consumer products used in the home. The Company markets its products under well-known kitchenware brands, including Farberware®, KitchenAid®, Sabatier®, Amco Houseworks®, Chef’n® Chicago™ Metallic, Copco®, Fred® & Friends, Houdini™, KitchenCraft®, Kamenstein®, La Cafetière®, MasterClass®, Misto®, Swing-A-Way®, Taylor® Kitchen, and Rabbit®; respected tableware and giftware brands, including Mikasa®, Pfaltzgraff®, Fitz and Floyd®, Empire Silver™, Gorham®, International® Silver, Towle® Silversmiths, Wallace®, Wilton Armetale®, V&A®, Royal Botanic Gardens Kew® and Year & Day®; and valued home solutions brands, including BUILT NY®, S’well®, Taylor® Bath, Taylor® Kitchen, Taylor® Weather and Planet Box®. The Company also provides exclusive private label products to leading retailers worldwide.

    The Company’s corporate website is www.lifetimebrands.com.

    Contacts:

    Lifetime Brands, Inc.

    Laurence Winoker, Chief Financial Officer
    516-203-3590
    investor.relations@lifetimebrands.com

    or

    Joele Frank, Wilkinson Brimmer Katcher

    Ed Trissel / T.J. O'Sullivan / Carly King
    212-355-4449



    LIFETIME BRANDS, INC.       
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS       
    (in thousands—except per share data)       
    (unaudited)       
     Three Months Ended Nine Months Ended
    September 30,  September 30,
      2023   2022   2023   2022 
    Net sales$191,669  $186,590  $483,540  $520,621 
    Cost of sales 120,718   118,757   302,756   334,553 
    Gross margin 70,951   67,833   180,784   186,068 
    Distribution expenses 17,125   18,641   49,742   55,239 
    Selling, general and administrative expenses 40,214   36,462   113,984   114,208 
    Restructuring expenses -   -   856   - 
    Wallace facility remediation expense -   5,140   -   5,140 
    Income from operations 13,612   7,590   16,202   11,481 
    Interest expense (5,246)  (4,581)  (16,110)  (12,080)
    Mark to market (loss) gain on interest rate derivatives (98)  637   (135)  1,990 
    Gain on early retirement of debt -   -   1,520   - 
    Income before income taxes and equity in losses 8,268   3,646   1,477   1,391 
    Income tax provision (3,015)  (1,845)  (2,909)  (3,420)
    Equity in losses, net of taxes (1,047)  (8,159)  (9,687)  (7,409)
    NET INCOME (LOSS)$4,206  $(6,358) $(11,119) $(9,438)
    BASIC INCOME (LOSS) PER COMMON SHARE$0.20  $(0.30) $(0.52) $(0.44)
    DILUTED INCOME (LOSS) PER COMMON SHARE$0.20  $(0.30) $(0.52) $(0.44)
            



    LIFETIME BRANDS, INC.    
    CONDENSED CONSOLIDATED BALANCE SHEETS    
    (in thousands—except share data)    
     September 30, December 31, 
     2023  2022  
     (unaudited)   
    ASSETS    
    CURRENT ASSETS    
    Cash and cash equivalents$6,318  $23,598  
    Accounts receivable, less allowances of $16,810 at September 30, 2023 and $14,606 at
    December 31, 2022
     153,456   141,195  
    Inventory 217,696   222,209  
    Prepaid expenses and other current assets 12,139   13,254  
    Income taxes receivable 1,254   -  
    TOTAL CURRENT ASSETS 390,863   400,256  
    PROPERTY AND EQUIPMENT, net 16,824   18,022  
    OPERATING LEASE RIGHT-OF-USE ASSETS 71,834   74,869  
    INVESTMENTS 3,963   12,516  
    INTANGIBLE ASSETS, net 202,872   213,887  
    OTHER ASSETS 5,312   6,338  
    TOTAL ASSETS$691,668  $725,888  
    LIABILITIES AND STOCKHOLDERS’ EQUITY    
    CURRENT LIABILITIES    
    Current maturity of term loan$13,866  $-  
    Accounts payable 57,188   38,052  
    Accrued expenses 69,320   77,602  
    Income taxes payable -   224  
    Current portion of operating lease liabilities 13,585   14,028  
    TOTAL CURRENT LIABILITIES 153,959   129,906  
    OTHER LONG-TERM LIABILITIES 14,796   14,995  
    INCOME TAXES PAYABLE, LONG-TERM 1,589   1,591  
    OPERATING LEASE LIABILITIES 72,808   76,420  
    DEFERRED INCOME TAXES 9,560   9,607  
    REVOLVING CREDIT FACILITY 29,305   10,424  
    TERM LOAN 183,234   242,857  
    STOCKHOLDERS’ EQUITY    
    Preferred stock, $1.00 par value, shares authorized: 100 shares of Series A and
    2,000,000 shares of Series B; none issued and outstanding
     -   -  
    Common stock, $0.01 par value, shares authorized: 50,000,000 at September 30, 2023
    and December 31, 2022; shares issued and outstanding: 21,814,236 at September 30, 2023
    and 21,779,799 at December 31, 2022
     218   218  
    Paid-in capital 276,813   274,579  
    (Accumulated deficit) retained earnings (15,333)  1,145  
    Accumulated other comprehensive loss (35,281)  (35,854) 
    TOTAL STOCKHOLDERS’ EQUITY 226,417   240,088  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$691,668  $725,888  
         



    LIFETIME BRANDS, INC.       
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS       
    (in thousands)       
    (unaudited)       
     Nine Months Ended 
     September 30,  
      2023   2022  
    OPERATING ACTIVITIES    
    Net loss$(11,119) $(9,438) 
    Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
    Depreciation and amortization 14,616   14,535  
    Amortization of financing costs 1,397   1,305  
    Mark to market loss (gain) on interest rate derivatives 135   (1,990) 
    Non-cash lease adjustment (1,617)  (1,055) 
    Provision (recovery) for doubtful accounts 2,193   (140) 
    Deferred income taxes 5   -  
    Stock compensation expense 2,770   3,565  
    Undistributed losses from equity investment, net of taxes 9,687   7,409  
    Contingent consideration fair value adjustments (50)  -  
    Gain on early retirement of debt (1,520)  -  
    Changes in operating assets and liabilities (excluding the effects of business acquisitions)    
    Accounts receivable (14,279)  38,765  
    Inventory 4,828   (3,694) 
    Prepaid expenses, other current assets and other assets 1,784   (177) 
    Accounts payable, accrued expenses and other liabilities 9,615   (66,062) 
    Income taxes receivable (1,254)  (2,583) 
    Income taxes payable (230)  (525) 
     NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES  16,961   (20,085) 
    INVESTING ACTIVITIES    
    Purchases of property and equipment (1,765)  (1,975) 
    Acquisition -   (17,956) 
    NET CASH USED IN INVESTING ACTIVITIES (1,765)  (19,931) 
    FINANCING ACTIVITIES    
    Proceeds from revolving credit facility 69,954   264,184  
    Repayments of revolving credit facility (51,123)  (230,365) 
    Repayments of term loan (44,866)  (6,216) 
    Payment of finance costs (433)  (882) 
    Payments for finance lease obligations (20)  (24) 
    Payments of tax withholding for stock based compensation (537)  (938) 
    Proceeds from the exercise of stock options -   233  
    Payments for stock repurchase (2,539)  (4,678) 
    Cash dividends paid (2,832)  (2,887) 
    NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (32,396)  18,427  
    Effect of foreign exchange on cash (80)  (463) 
    DECREASE IN CASH AND CASH EQUIVALENTS (17,280)  (22,052) 
    Cash and cash equivalents at beginning of period 23,598   27,982  
    CASH AND CASH EQUIVALENTS AT END OF PERIOD$6,318  $5,930  
         



    LIFETIME BRANDS, INC.
    Supplemental Information
    (in thousands)
    Reconciliation of GAAP to Non-GAAP Operating Results
              
    Adjusted EBITDA for the twelve months ended September 30, 2023:       
     Quarter Ended Twelve Months Ended
     December 31, March 31, June 30, September 30, September 30,
     2022  2023 2023 2023  2023
      
    Net income (loss) as reported$3,272 $(8,805) $(6,520) $4,206 $(7,847)
    Undistributed equity losses, net 2,058  2,777   5,863   1,047  11,745 
    Income tax provision (benefit) 2,308  (1,348)  1,242   3,015  5,217 
    Interest expense 5,125  5,336   5,528   5,246  21,235 
    Depreciation and amortization 5,001  4,870   4,925   4,821  19,617 
    Mark to market loss (gain) on interest rate derivatives 19  234   (197)  98  154 
    Stock compensation expense 281  861   1,011   898  3,051 
    Contingent consideration fair value adjustments -  -   (50)    (50)
    Gain on early retirement of debt -  -   (1,520)    (1,520)
    Acquisition related expenses 170  490   242   186  1,088 
    Restructuring expenses 1,420  856   -     2,276 
    Warehouse redesign expenses(1) -  194   157   176  527 
    Adjusted EBITDA$19,654 $5,465  $10,681  $19,693 $55,493 
    Pro forma projected synergies adjustment(2)         323 
    Pro forma Adjusted EBITDA(3)$19,654 $5,465  $10,681  $19,693 $55,816 
              
    (1) For the twelve months ended September 30, 2023, the warehouse redesign expenses were related to the U.S. segment.
              
    (2) Pro forma projected synergies represents the projected cost savings of $0.2 million associated with the Executive Chairman's cessation of service in such role, and $0.1 million associated with reorganization of the U.S. segment's sales management structure.
              
    (3) Adjusted EBITDA is a non-GAAP financial measure that is defined in the Company’s debt agreements. Adjusted EBITDA is defined as net income (loss), adjusted to exclude undistributed equity in losses, income tax provision (benefit), interest expense, depreciation and amortization, mark to market loss (gain) on interest rate derivatives, stock compensation expense, gain on early retirement of debt, and other items detailed in the table above that are consistent with exclusions permitted by our debt agreements.
              



    LIFETIME BRANDS, INC.        
    Supplemental Information        
    (in thousands—except per share data)        
    Reconciliation of GAAP to Non-GAAP Operating Results (continued)        
             
    Adjusted net income and adjusted diluted income per common share (in thousands - except per share data):     
     
     Three Months Ended September 30, Nine Months Ended September 30, 
      2023   2022   2023   2022  
    Net income (loss) as reported$4,206  $(6,358) $(11,119) $(9,438) 
     Adjustments:        
    Acquisition intangible amortization expense 3,679   3,628   11,033   10,749  
    Contingent consideration fair value adjustments -   -   (50)  -  
    Gain on early retirement of debt -   -   (1,520)  -  
    Acquisition related expenses 186   109   918   1,303  
    Restructuring expenses -   -   856   -  
    S'well integration costs -   250   -   1,895  
    Warehouse relocation and redesign expenses(1) 176   59   527   629  
    Impairment of Grupo Vasconia investment 340   6,168   6,834   6,168  
    Mark to market loss (gain) on interest rate derivatives 98   (637)  135   (1,990) 
    Wallace facility remediation expense -   5,140   -   5,140  
    Income tax effect on adjustments (1,015)  (2,118)  (2,931)  (4,348) 
    Adjusted net income(2)(3)$7,670  $6,241  $4,683  $10,108  
    Adjusted diluted income per common share(4)$0.36  $0.29  $0.22  $0.46  
             
    (1) For the three and nine months ended September 30, 2023, warehouse relocation and redesign expenses were related to the U.S. segment. For the three months ended September 30, 2022, warehouse relocation and redesign expenses included $0.1 million of expenses related to the International segment. For the nine months ended September 30, 2022, warehouse relocation and redesign expenses included $0.5 million of expenses related to the International segment and $0.1 million of expenses related to the U.S. segment. 
             
    (2) Adjusted net income for the three and nine months ended September 30, 2022 has been recast to reflect the adjustment for acquisition intangible amortization expense. 
             
    (3) Adjusted net income and adjusted diluted income per common share in the three and nine months ended September 30, 2023 excludes acquisition intangible amortization expense, contingent consideration fair value adjustments, gain on early retirement of debt, acquisition related expenses, restructuring expenses, warehouse redesign expenses, impairment of Grupo Vasconia investment, and mark to market loss on interest rate derivatives. The income tax effect on adjustments reflects the statutory tax rates applied on the adjustments. Adjusted net income and adjusted diluted income per common share in the three and nine months ended September 30, 2022 excludes acquisition intangible amortization expense, acquisition related expenses, S'well integration costs, warehouse relocation and redesign expenses, impairment of Grupo Vasconia investment, mark to market (gain) on interest rate derivatives, and Wallace facility remediation expense. The income tax effect on adjustments reflects the statutory tax rates applied on the adjustments. 
             
    (4) Adjusted diluted income per common share is calculated based on diluted weighted-average shares outstanding of 21,293 and 21,677 for the three month period ended September 30, 2023 and 2022, respectively. Adjusted diluted income per common share is calculated based on diluted weighted-average shares outstanding of 21,266 and 21,890 for the nine month period ended September 30, 2023 and 2022, respectively. The diluted weighted-average shares outstanding for the three and nine months ended September 30, 2023 include the effect of dilutive securities of 77 and 78, respectively. The diluted weighted-average shares outstanding for the three and nine months ended September 30, 2022 include the effect of dilutive securities of 155 and 288, respectively. 



    Adjusted income from operations (in thousands):       
     Three Months Ended September 30, Nine Months Ended September 30, 
      2023  2022  2023   2022 
    Income from operations$13,612 $7,590 $16,202  $11,481 
    Adjustments:        
    Acquisition intangible amortization expense 3,679  3,628  11,033   10,749 
    Contingent consideration fair value adjustments -  -  (50)  - 
    Acquisition related expenses 186  109  918   1,303 
    Restructuring expenses -  -  856   - 
    S'well integration costs -  250  -   1,895 
    Warehouse relocation and redesign expenses (1) 176  59  527   629 
    Wallace facility remediation expense -  5,140  -   5,140 
    Total adjustments 4,041  9,186  13,284   19,716 
    Adjusted income from operations(2)(3)$17,653 $16,776 $29,486  $31,197 
             
    (1) For the three and nine months ended September 30, 2023, warehouse relocation and redesign expenses were related to the U.S. segment. For the three months ended September 30, 2022, warehouse relocation and redesign expenses included $0.1 million of expenses related to the International segment. For the nine months ended September 30, 2022, warehouse relocation and redesign expenses included $0.5 million of expenses related to the International segment and $0.1 million of expenses related to the U.S. segment.
             
    (2) Adjusted income from operations for the three and nine months ended September 30, 2022 has been recast to reflect the adjustment for acquisition intangible amortization expense.
             
    (3) Adjusted income from operations for the three and nine months ended September 30, 2023 and September 30, 2022, excludes acquisition intangible amortization expense, contingent consideration fair value adjustments, acquisition related expenses, restructuring expenses, S'well integration costs, warehouse relocation and redesign expenses and Wallace facility remediation expense.



    LIFETIME BRANDS, INC.
    Supplemental Information
    (in thousands)
    Reconciliation of GAAP to Non-GAAP Operating Results (continued)
    Constant Currency:                   
     As Reported Constant Currency (1)    
    Three Months EndedThree Months EndedYear-Over-Year
    September 30,September 30,Increase (Decrease) 
    Net sales 2023  2022 Increase  2023  2022 Increase Currency Excluding Including Currency
    (Decrease)(Decrease)ImpactCurrencyCurrencyImpact
    U.S.$179,393 $172,818 $6,575  $179,393 $172,801 $6,592  $17  3.8% 3.8% 0.0%
    International 12,276  13,772  (1,496)  12,276  14,725  (2,449)  (953) (16.6)% (10.9)% 5.7%
    Total net sales$191,669 $186,590 $5,079  $191,669 $187,526 $4,143  $(936) 2.2% 2.7% 0.5%
                        
                        
            
    As Reported Nine Months EndedConstant Currency (1) Year-Over-Year Increase
    September 30,Nine Months Ended September 30,(Decrease) 
    Net sales 2023  2022 Increase  2023  2022 Increase Currency Excluding Including Currency
    (Decrease)(Decrease)ImpactCurrencyCurrencyImpact
    U.S.$447,857 $476,227 $(28,370) $447,857 $476,185 $(28,328) $42  (5.9)% (6.0)% (0.1)%
    International 35,683  44,394  (8,711)  35,683  43,562  (7,879)  832  (18.1)% (19.6)% (1.5)%
    Total net sales$483,540 $520,621 $(37,081) $483,540 $519,747 $(36,207) $874  (7.0)% (7.1)% (0.1)%
                        
                        
    (1) “Constant Currency” is determined by applying the 2023 average exchange rates to the prior year local currency sales amounts, with the difference between the change in “As Reported” net sales and “Constant Currency” net sales, reported in the table as “Currency Impact.” Constant currency sales growth is intended to exclude the impact of fluctuations in foreign currency exchange rates.
                        



    LIFETIME BRANDS, INC.
    Supplemental Information
     
    Reconciliation of GAAP to Non-GAAP Guidance
      
    Adjusted EBITDA guidance for the full year ending December 31, 2023 (in millions):
    Net loss guidance$(7.2) to $(6.0) 
    Undistributed equity losses9.7 
    Income tax expense4.2 to 6.0 
    Interest expense(1)21.0 
    Gain on early retirement of debt(1.5) 
    Depreciation and amortization19.5 
    Stock compensation expense3.8 
    Acquisition related expense1.0 
    Restructuring, and warehouse redesign expenses1.6 
    Other adjustments(2)(0.1) 
    Adjusted EBITDA guidance$52 to $55 
      
      
    Adjusted net income and adjusted diluted income per common share guidance for the full year ending
    December 31, 2023 (in millions - except per share data): 
    Net loss guidance$(7.2) to $(6.0) 
    Acquisition intangible amortization expense14.8 
    Gain on early retirement of debt(1.5) 
    Acquisition related expense1.0 
    Restructuring, and warehouse redesign expenses1.6 
    Impairment of Grupo Vasconia investment6.8 
    Other adjustments(3)(0.1) 
    Income tax effect on adjustment(4.3) 
    Adjusted net income guidance$11.1 to $12.3 
    Adjusted diluted income per share guidance$0.51 to $0.56 
      
      
    Adjusted income from operations guidance for the full year ending December 31, 2023 (in millions):
    Income from operations guidance$26.2 to $29.2 
    Acquisition intangible amortization expense14.8 
    Acquisition related expense1.0 
    Restructuring, and warehouse redesign expenses1.6 
    Other adjustments(2)(0.1) 
    Adjusted income from operations$43.5 to $46.5 
      
      
    (1) Includes estimate for interest expense and mark to market loss on interest rate derivatives.
    (2) Includes contingent consideration fair value adjustments. 
    (3) Includes mark to market loss on interest rate derivatives and contingent consideration fair value adjustments.

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