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Lifetime Q2 Sales Down but Adjusted Earnings Rise

By Staff -- Gifts and Dec, 8/6/2009 11:49:00 AM

Garden City, NY – Kitchenware, tabletop and home decor vendor Lifetime Brands Inc.’s net sales for the three months ended June 30 totaled $85.3 million, compared to $92.4 million for the same period in 2008. Lifetime owns Pfaltzgraff, Mikasa, Gorham, Towle Silversmiths and many other brands. Excluding sales of the company's retail stores, which were closed in December 2008, and adjusting sales of Mikasa, which was acquired on June 6, 2008, net sales for the quarter were $78.4 million, as compared to $85.2 million in 2008. The Company reported a net loss of $1.3 million, or $0.10 per diluted share, for the 2009 period, compared to a net loss of $3.6 million, or $0.30 per diluted share, for the 2008 quarter.

However adjusted earnings before interest, taxes, depreciation, amortization, restructuring expenses and stock option expense (EBITDA) were $4.6 million for the 2009 quarter, as compared to a loss of $2.7 million in the 2008 period. For the six months ended June 30, adjusted EBITDA was $5.6 million, compared to a loss of $5.2 million in the 2008 period. Jeffrey Siegel, chairman, president and CEO, said in a statement, "The substantial year-over-year improvement in our Adjusted EBITDA is a clear indication that the steps we have taken to restructure our business have borne fruit.”

Net sales for the company's wholesale segment were $80.9 million, an increase of 1.3 percent, compared to net sales of $79.9 million for the 2008 quarter. However adjusting for the Mikasa acquisition, wholesale segment net sales were $74.6 million, a decrease of $5.3 million or 6.6 percent compared to the 2008 period. Lifetime attributed the decrease in comparable wholesale net sales to lower volume, due, in part, to the non-recurrence of sales to Linens 'N Things, less inventory reduction plan activity, the Company's elimination of certain low-margin business and the planned effect of a change in the Company's relationship with Accent-Fairchild Group. The latter previously served as the company's distributor in Canada and now operates a portion of its business as Lifetime Brands Canada. The Company's share of the operating profit of Lifetime Brands Canada is included in net sales.

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