Lifetime Brands, Inc. (LCUT) Bundle
A Brief History of Lifetime Brands, Inc.
Lifetime Brands, Inc. has undergone significant transformations and challenges in its operations leading up to 2024. The company's focus remains on providing innovative kitchenware, tableware, and home solutions. As of September 30, 2024, the company reported consolidated net sales of $183.8 million for the third quarter, down from $191.7 million in the same period of 2023, reflecting a decrease of 4.1%.
Financial Performance Overview
For the nine months ending September 30, 2024, net sales totaled $467.7 million, representing a decline of $15.8 million, or 3.3%, compared to $483.5 million in the same period of 2023. The company’s gross margin stood at 36.7% for the third quarter of 2024, slightly down from 37.0% in the prior year.
Income and Expenses
Net income for the three months ended September 30, 2024, was reported at $344,000, a significant drop from $4.2 million in the same quarter of the previous year. For the nine months ended September 30, 2024, the net loss reached $24.1 million. The following table summarizes key financial metrics:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $183.8M | $191.7M | $467.7M | $483.5M |
| Net Income (Loss) | $344K | $4.2M | $(24.1M) | $(11.1M) |
| Gross Margin | 36.7% | 37.0% | 38.4% | 37.4% |
Debt and Liquidity Position
As of September 30, 2024, Lifetime Brands had total liquidity of $75.6 million, consisting of $6.0 million in cash and cash equivalents, alongside $51.6 million available under its asset-based lending (ABL) agreement. The company’s total debt was reported at $130.2 million, reflecting a decrease from $135.8 million at the end of 2023. The debt agreements impose a maximum Total Net Leverage Ratio of 5.00 to 1.00, which the company was compliant with as of the reporting date.
Market Trends and Challenges
The decline in sales can be attributed to several factors, including a decrease in consumer demand for kitchen tools and gadgets, alongside increased competition in the home solutions market. The U.S. segment reported a decrease in net sales of $16.7 million, or 3.7%, for the nine months ending September 30, 2024. Additionally, the company faced a loss of $14.2 million on equity securities for the nine months ending September 30, 2024.
Stockholder Equity
As of September 30, 2024, Lifetime Brands had total stockholders’ equity of $220.9 million, down from $230.9 million at the end of 2023. The company’s common stock saw a slight increase in shares outstanding from 21.8 million at the end of 2023 to 22.2 million. The following table summarizes stockholder equity metrics:
| Equity Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Stockholders’ Equity | $220.9M | $230.9M |
| Common Shares Outstanding | 22.2M | 21.8M |
Future Outlook
Despite the challenges in 2024, Lifetime Brands aims to improve its product offerings and expand its market reach. The focus will remain on enhancing operational efficiencies and addressing the shifts in consumer preferences to regain sales momentum in the forthcoming periods.
A Who Owns Lifetime Brands, Inc. (LCUT)
Ownership Structure
As of 2024, Lifetime Brands, Inc. (LCUT) has a diverse ownership structure comprising institutional investors, retail investors, and company executives.
Institutional Ownership
Institutional investors own a significant portion of Lifetime Brands, with the following percentages:
- BlackRock, Inc.: 14.2%
- The Vanguard Group, Inc.: 9.5%
- Dimensional Fund Advisors LP: 6.7%
- Wellington Management Group LLP: 5.3%
- State Street Corporation: 4.8%
Executive Ownership
Key executives and board members also hold shares in the company:
- Jeffrey Siegel (Chairman & CEO): 2.1% ownership
- Other executive officers: 1.5% ownership collectively
Shareholder Composition Table
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | BlackRock, Inc. | 14.2% |
| Institutional Investor | The Vanguard Group, Inc. | 9.5% |
| Institutional Investor | Dimensional Fund Advisors LP | 6.7% |
| Institutional Investor | Wellington Management Group LLP | 5.3% |
| Institutional Investor | State Street Corporation | 4.8% |
| Executive | Jeffrey Siegel | 2.1% |
| Executives (Collective) | Other Executive Officers | 1.5% |
Recent Shareholder Activity
In 2024, Lifetime Brands declared dividends totaling $2.9 million, distributed across three payments of $0.0425 per share.
The company has maintained a stock repurchase program with $11.1 million remaining under the authorization as of September 30, 2024.
Market Performance
As of September 30, 2024, Lifetime Brands reported total assets of $668.7 million and total liabilities of $447.8 million, resulting in stockholders' equity of $220.9 million.
The net sales for the nine months ended September 30, 2024, stood at $467.7 million, with a net loss of $24.1 million.
Equity and Debt Overview
Lifetime Brands has a term loan balance of $130.2 million and a revolving credit facility of $64.5 million as of September 30, 2024.
The company's accumulated deficit as of September 30, 2024, was reported at $40.5 million, indicating ongoing operational challenges.
Lifetime Brands, Inc. (LCUT) Mission Statement
Company Overview
Lifetime Brands, Inc. (LCUT) is a leading global provider of branded kitchenware, tableware, and home solutions. The company focuses on delivering innovative products that enhance the consumer experience in the home.
Mission Statement
As of 2024, Lifetime Brands, Inc. aims to "provide consumers with innovative and quality products that enhance their home and lifestyle." The company emphasizes its commitment to customer satisfaction, sustainability, and community engagement.
Financial Performance
For the three months ended September 30, 2024, Lifetime Brands reported net sales of $183.8 million, a decrease of 4.1% compared to $191.7 million for the same period in 2023. For the nine months ended September 30, 2024, net sales totaled $467.7 million, reflecting a decrease of 3.3% from $483.5 million in the prior year.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $183.8 million | $191.7 million | $467.7 million | $483.5 million |
| Gross Margin | 36.7% | 37.0% | 38.4% | 37.4% |
| Net Income (Loss) | $344,000 | $4.2 million | $(24.1) million | $(11.1) million |
| Basic Earnings (Loss) Per Share | $0.02 | $0.20 | $(1.12) | $(0.52) |
| Diluted Earnings (Loss) Per Share | $0.02 | $0.20 | $(1.12) | $(0.52) |
Product Categories and Sales Performance
Lifetime Brands operates across several product categories, including Kitchenware, Tableware, and Home Solutions. For the three months ended September 30, 2024, the sales breakdown was as follows:
| Product Category | Net Sales (Q3 2024) | Net Sales (Q3 2023) |
|---|---|---|
| Kitchenware | $97.3 million | $97.7 million |
| Tableware | $40.9 million | $48.9 million |
| Home Solutions | $32.0 million | $32.8 million |
Operational Expenses
Lifetime Brands reported operational expenses that include distribution and selling, general, and administrative expenses. For the three months ended September 30, 2024:
| Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Distribution Expenses | $20.0 million | $17.1 million |
| Selling, General and Administrative Expenses | $38.8 million | $40.2 million |
Balance Sheet Highlights
As of September 30, 2024, Lifetime Brands had total assets of $668.7 million, which included cash and cash equivalents of $6.0 million. The company's liabilities totaled $447.8 million, resulting in stockholders' equity of $220.9 million.
Liquidity Position
The liquidity position as of September 30, 2024, was $75.6 million, consisting of cash and cash equivalents along with available borrowings under the company's credit facilities.
Dividend Information
During the nine months ended September 30, 2024, Lifetime Brands declared dividends totaling $2.9 million, with a dividend of $0.0425 per share scheduled for payment in November 2024.
How Lifetime Brands, Inc. (LCUT) Works
Company Overview
Lifetime Brands, Inc. operates in the consumer products sector, primarily focusing on kitchenware, tableware, and home solutions. The company markets and distributes its products through various channels, including retail, e-commerce, and direct-to-consumer sales.
Financial Performance
As of September 30, 2024, Lifetime Brands reported the following key financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Sales | $183.8 million | $191.7 million | $467.7 million | $483.5 million |
| Gross Margin | 36.7% | 37.0% | 38.4% | 37.4% |
| Net Income (Loss) | $344,000 | $4.2 million | $(24.1 million) | $(11.1 million) |
| Basic Income (Loss) per Share | $0.02 | $0.20 | $(1.12) | $(0.52) |
| Comprehensive Income (Loss) | $1.0 million | $3.4 million | $(8.9 million) | $(10.5 million) |
Segment Performance
The company operates through two primary segments: U.S. and International. The following summarizes the performance of these segments:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Income from Operations (Q3 2024) | Income from Operations (Q3 2023) |
|---|---|---|---|---|
| U.S. | $170.2 million | $179.4 million | $16.2 million | $21.5 million |
| International | $13.6 million | $12.3 million | $(3.3 million) | $(3.0 million) |
Cost Structure
The cost structure of Lifetime Brands includes various expenses, which are summarized below:
| Expense Type | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Cost of Sales | $116.4 million | $120.7 million | $288.2 million | $302.8 million |
| Selling, General and Administrative Expenses | $38.8 million | $40.2 million | $116.6 million | $114.0 million |
| Distribution Expenses | $20.0 million | $17.1 million | $51.3 million | $49.7 million |
Liquidity and Capital Resources
As of September 30, 2024, Lifetime Brands reported:
| Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $6.0 million |
| Working Capital | $230.2 million |
| Total Assets | $668.7 million |
| Total Liabilities | $447.8 million |
Debt Obligations
Lifetime Brands has the following debt obligations:
| Debt Type | Amount | Maturity Date |
|---|---|---|
| Term Loan | $130.2 million | August 26, 2027 |
| Revolving Credit Facility | $64.5 million | August 26, 2027 |
Dividends
The company declared dividends as follows:
| Dividend per Share | Date Declared | Date of Record | Payment Date |
|---|---|---|---|
| $0.0425 | March 8, 2024 | May 1, 2024 | May 15, 2024 |
| $0.0425 | June 20, 2024 | August 1, 2024 | August 15, 2024 |
| $0.0425 | August 6, 2024 | November 1, 2024 | November 15, 2024 |
Market Trends and Challenges
Lifetime Brands faces challenges such as fluctuating consumer demand and competition within the consumer goods market. The company continues to adapt its strategies to maintain market share and profitability.
How Lifetime Brands, Inc. (LCUT) Makes Money
Overview of Revenue Streams
Lifetime Brands, Inc. generates revenue primarily through the design, marketing, and distribution of kitchenware, tableware, and home solutions products. The company operates in two main segments: U.S. and International.
Financial Performance for 2024
As of September 30, 2024, the company reported consolidated net sales of $467.7 million, a decrease of $15.8 million, or 3.3%, compared to $483.5 million for the same period in 2023. The U.S. segment contributed $431.2 million, a decline of 3.7% from the prior year's $447.9 million.
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Sales (Total) | $183.8 million | $191.7 million | $467.7 million | $483.5 million |
| Net Sales (U.S. Segment) | $170.2 million | $179.4 million | $431.2 million | $447.9 million |
| Net Sales (International Segment) | $13.6 million | $12.3 million | $36.5 million | $35.6 million |
| Gross Margin | 36.7% | 37.0% | 38.4% | 37.4% |
| Net Income (Loss) | $344,000 | $4.2 million | $(24.1) million | $(11.1) million |
Product Category Performance
The U.S. segment's performance across product categories for the nine months ended September 30, 2024 is summarized below:
| Product Category | Net Sales | Change |
|---|---|---|
| Kitchenware | $261.7 million | Decreased by $5.7 million (2.1%) |
| Tableware | $93.0 million | Decreased by $6.0 million (6.1%) |
| Home Solutions | $76.5 million | Decreased by $5.0 million (6.1%) |
Operating Expenses
For the nine months ended September 30, 2024, operating expenses were as follows:
| Expense Type | Amount |
|---|---|
| Cost of Sales | $288.2 million |
| Distribution Expenses | $51.3 million |
| Selling, General and Administrative Expenses | $116.6 million |
Debt and Interest
The company has a revolving credit facility of $200 million and a term loan of $150 million, both maturing in 2027. Interest expense for the three months ended September 30, 2024, was $5.8 million, compared to $5.2 million for the same period in 2023.
Taxation
The income tax provision for the three months ended September 30, 2024, was $1.5 million, with an effective tax rate of 81.4% due to foreign losses for which no tax benefit is recognized.
Seasonality Factors
Lifetime Brands experiences seasonality in its sales, with a majority occurring in the third and fourth quarters. Historical data indicates that these periods account for 57% and 54% of total annual net sales, respectively.
Conclusion on Business Model
Lifetime Brands, Inc. relies on a combination of domestic and international sales across various product categories, with a focus on maintaining operational efficiency and managing costs to improve profitability despite recent declines in revenue.
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Resources:
- Lifetime Brands, Inc. (LCUT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Lifetime Brands, Inc. (LCUT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Lifetime Brands, Inc. (LCUT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.