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  Title	Lifetime Brands, Inc. Reports Fourth Quarter 2024 Financial Results
  ID	7713063
  External ID	7625329412
  Author	Unknown
  Published Date	March 14, 2025, 3:52 a.m.
  Summary	Delivers Fourth Quarter Sales of $215 Million, a 6% Increase YoY TTM Adjusted EBITDA of $55.4 Million Launches Project Concord: Focus on International Business Turnaround to Accelerate Global Growth
  Tags	press-release
  URL	https://www.benzinga.com/pressreleases/25/03/g44298350/lifetime-brands-inc-reports-fourth-quarter-2024-financial-results
  Sentiment	Negative: 0.01566    Neutral: 0.02971    Positive: 0.95463
  Relevance	0.01938

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  Content ID	5018309
  Key	9bb0dc41-8b45-45d4-9c3c-29f6c68910e3
  Content	Delivers Fourth Quarter Sales of $215 Million, a 6% Increase YoY TTM Adjusted EBITDA of $55.4 Million Launches Project Concord: Focus on International Business Turnaround to Accelerate Global Growth Declares Regular Quarterly Dividend GARDEN CITY, N.Y., March 13, 2025 (GLOBE NEWSWIRE) -- Lifetime Brands, Inc. 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 and full year ended December 31, 2024. Fourth Quarter & Full Year 2024 Highlights: Fourth quarter sales of $215.2 million, exceeding fourth quarter 2023 sales by $12.1 million U.S. sales up $10.8 million, or 5.8%, and International up $0.8 million, or 4.4% (constant currency) Trailing twelve-month Adjusted EBITDA of $55.4 million versus $53.9 million from prior quarter Gross Margin expanded in both the fourth quarter and full year to 37.7% and 38.2%, respectively Rob Kay, Lifetime's Chief Executive Officer, commented, "Lifetime's strong fourth quarter performance capped a solid 2024, as seasonal consumer demand accelerated in December. Fourth quarter sales grew by 6% to $215 million over the prior year period, driven by the continued execution of our online sales strategy, a key growth opportunity, leading to additional market share gain in our e-commerce channel. As we reflect on 2024, we note the resilience in our core business evident in our financial performance, and a result of the value embedded in our products combined with operational actions that have positioned us to confidently support our future growth initiatives. Our International business reported an increase in sales for a second consecutive quarter, supporting our belief that our refined strategy to target larger national chains is gaining traction. In addition, numerous new product introductions drove growth including Build·a·Board, helping to increase Cutlery market share as well as the Dolly Parton program which contributed $7 million in sales in 2024. We are pleased to report we remain on pace to complete the program's phase one shipment by the end of first quarter of 2025. Touching on the current economic environment, our team is well positioned thanks to significant experience navigating similar macro shifts to proactively adapt our operations to anticipated fluctuations. To this point, while the situation remains fluid, we continue to take prudent measures to mitigate our exposure to the imposed tariffs on affected products. These actions, which include the movement of production to various geographies, are designed to allow Lifetime flexibility as the rules of international trade continue to fluctuate. Additionally, our strong balance sheet and liquidity of $111.7 million as of December 31, 2024, provides insulation against macro shocks. With the defensive tactics we have taken, we will be able to remain true to our business which has produced cash flow in all environments over many years. To that end, beginning in January 2025, Lifetime launched a transformation initiative designated as Project Concord. The strategic priorities of this comprehensive turnaround of our International business are expected to promote growth and streamline the cost structure of our International operations. As we execute the steps outlined in this project, the expectation is to generate continued incremental sales growth while identifying cost efficiencies that will produce a breakeven level of profitability in our International business at an accelerated pace." Fourth Quarter Financial Results: Consolidated net sales for the three months ended December 31, 2024, were $215.2 million, representing an increase of $12.1 million or 6.0%, as compared to $203.1 million for the corresponding period in 2023. In constant currency, a non-GAAP financial measure, which excludes the impact of foreign exchange fluctuations and was determined by applying 2024 average rates to 2023 local currency amounts, consolidated net sales increased $11.7 million or 5.7% in the fourth quarter of 2024, as compared to consolidated net sales in the corresponding period in 2023. A table reconciling this non-GAAP financial measure to consolidated net sales, as reported, is included below. Gross margin for the three months ended December 31, 2024 was $81.2 million, or 37.7%, in 2024 as compared to $73.9 million, or 36.4%, for the corresponding period in 2023. Selling, general and administrative expenses for the three months ended December 31, 2024 were $43.2 million, an increase of $4.5 million, or 11.6%, as compared to $38.7 million for the corresponding period in 2023. Income from operations was $15.5 million, as compared to $15.7 million for the corresponding period in 2023. Adjusted income from operations(1) was $20.2 million as compared to $19.4 million for the corresponding period in 2023. Net income was $8.9 million, or $0.41 per diluted share, in the quarter ended December 31, 2024, as compared to net income of $2.7 million, or $0.13 per diluted share, for the corresponding period in 2023. Adjusted net income(1) was $12.0 million, or $0.55 per diluted share, in the quarter ended December 31, 2024, as compared to adjusted net income(1) of $6.3 million, or $0.29 per diluted share, for the corresponding period in 2023. (1) A table reconciling this non-GAAP financial measure to its most comparable GAAP financial measure, as reported, is included below. Full Year Financial Results: Consolidated net sales for the year ended December 31, 2024, were $683.0 million, a decrease of $3.7 million, or 0.5%, as compared to consolidated net sales of $686.7 million for the corresponding period in 2023. In constant currency, a non-GAAP financial measure, which excludes the impact of foreign exchange fluctuations and was determined by applying 2024 average rates to 2023 local currency amounts, consolidated net sales decreased $5.1 million, or 0.7%, as compared to consolidated net sales in the corresponding period in 2023. A table reconciling this non-GAAP financial measure to consolidated net sales, as reported, is included below. Gross margin for 2024 was $260.7 million, or 38.2%, compared to $254.6 million, or 37.1%, for the corresponding period in 2023. Selling, general and administrative expenses for 2024 were $159.8 million, an increase of $7.2 million, or 4.7%, as compared to $152.6 million for the corresponding period in 2023. Income from operations was $27.1 million in 2024, as compared to $31.9 million for the corresponding period in 2023. Adjusted income from operations(1) was $44.7 million, as compared to $48.9 million for the corresponding period in 2023. Net loss was $(15.2) million, or $(0.71) per diluted share, in the year ended December 31, 2024, as compared to net loss of $(8.4) million, or $(0.40) per diluted share, in the corresponding period in 2023. Adjusted net income(1) was $12.6 million, or $0.58 per diluted share, as compared to $11.0 million, or $0.52 per diluted share, in the corresponding period in 2023. Adjusted EBITDA(1) was $55.4 million in the year ended December 31, 2024. A table reconciling this non-GAAP financial measure to net loss, as reported, is included below. (1) A table reconciling this non-GAAP financial measure to its most comparable GAAP financial measure, as reported, is included below. Other Matters In January 2025, the Company announced the relocation of the Company's east coast distribution facility currently located in Robbinsville, NJ (the "Robbinsville Facility") to a warehouse and distribution space in Hagerstown, Maryland (the "Hagerstown Facility"). In connection with the relocation, the Company will completely exit the Robbinsville Facility. Lifetime expects to incur one-time exit costs up to $7 million for employee severance, certain employee relocation costs, and remaining lease costs for the Robbinsville Facility in 2025 and 2026. The Hagerstown Facility will require capital expenditures for equipment and certain leasehold improvements of approximately $10 million. One-time relocation costs are estimated to be up to $7 million, which includes recruitment, relocation of inventory, set up costs and lease expenses prior to the Hagerstown Facility being fully operational. These one-time costs are expected to be incurred in 2026. The Company expects that the Hagerstown Facility will be operational by the second quarter of 2026. Additionally, in connection with the relocation to the Hagerstown Facility, the Company will receive tax abatement and incentives over the term of the Lease from the State of Maryland and Washington County, Maryland totaling approximately $13 million. These incentives include real property tax abatement, employee state withholding tax credit, conditional grants and income tax credits. In January 2025, the Company implemented Project Concord, Lifetime's comprehensive turnaround initiative of its International business. The strategic priorities of this comprehensive turnaround plan of the International business are expected to promote growth and streamline the cost structure of Lifetime's International operations. Dividend On March 11, 2025, the Board of Directors declared a quarterly dividend of $0.0425 per share payable on May 15, 2025 to shareholders of record on May 1, 2025. Full Year 2025 Guidance & Investor Day The Company intends to provide detailed Full Year 2025 guidance in conjunction with its First Quarter 2025 results in mid-May, in-line with its historical cadence. In the Fourth Quarter of 2025, Lifetime will host an Investor Day to outline Management's long-term vision and priorities for operational segments supporting its comprehensive global turnaround plan. Conference Call The Company has scheduled a conference call for Thursday, March 13, 2025 at 11:00 a.m (Eastern Time). The dial-in number for the conference call is 1 (877) 451-6152 (U.S.) or +1 (201) 389-0879 (International) A live webcast of the conference call will be accessible through: https://viavid.webcasts.com/starthere.jsp?ei=1706452&tp_key=1f3c441b7b For those who cannot listen to the live broadcast, an audio replay of the webcast will be available for one year. Non-GAAP Financial Measures This earnings release contains non-GAAP financial measures, including constant currency net sales, adjusted income from operations, 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, the Company's financial guidance, the Company's ability to navigate the current environment and advance the Company's strategy, the Company's commitment to increasing investments in future growth initiatives, the Company's initiatives to create value, the Company's efforts to mitigate geopolitical factors and tariffs, the Company's 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 the Company's 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 highly seasonal nature of the Company's business; 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 impact the Company's customers and affect customer purchasing practices or consumer spending; customer ordering behavior; the performance of the Company's 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 the Company or the Company's suppliers do business; shortages of and price volatility for certain commodities; global health epidemic; social unrest, including related protests and disturbances; the emergence, continuation and consequences of geopolitical conditions, including political instability in the U.S. and abroad, unrest and sanctions, war, conflict, including the ongoing conflicts between Russia and the Ukraine, conflicts in the Middle East, and increasing tensions between China and Taiwan; macro-economic challenges, including labor disputes, inflationary impacts and disruptions to the global supply chain; increase in supply chain costs; the imposition of duties and tariffs and other trade barriers and retaliatory countermeasures and/or economic sanctions implemented by the U.S. and other governments; the Company's ability to successfully integrate acquired businesses; the Company's expectations regarding customer purchasing practices and the future level of demand for the Company's products; the Company's ability to execute on the goals and strategies set forth in the Company's 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, Rabbit®, and Dolly®; 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®, Year & Day®, Dolly®, Royal Leerdam®, and ONIS®; and valued home solutions brands, including BUILT NY®, S'well®, Taylor® Bath, Taylor® Kitchen, Taylor® Weather, Planet Box®, and Dolly®. 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 MZ North America Shannon Devine / Rory Rumore Main: 203-741-8811 LCUT@mzgroup.us LIFETIME BRANDS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands - except per share data) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Net sales $ 215,207 $ 203,143 $ 682,952 $ 686,683 Cost of sales 134,018 129,288 422,249 432,044 Gross margin 81,189 73,855 260,703 254,639 Distribution expenses 22,543 19,452 73,810 69,194 Selling, general and administrative expenses 43,172 38,664 159,809 152,648 Restructuring expenses — — — 856 Income from operations 15,474 15,739 27,084 31,941 Interest expense (5,603 ) (5,618 ) (22,208 ) (21,728 ) Mark to market gain (loss) on interest rate derivatives 718 (364 ) (466 ) (499 ) (Loss) gain on extinguishments of debt, net — (759 ) — 761 Loss on equity securities — — (14,152 ) — Income (loss) before income taxes and equity in losses 10,589 8,998 (9,742 ) 10,475 Income tax provision (1,671 ) (3,313 ) (3,331 ) (6,222 ) Equity in losses, net of taxes — (2,978 ) (2,092 ) (12,665 ) NET INCOME (LOSS) $ 8,918 $ 2,707 $ (15,165 ) $ (8,412 ) Weighted-average shares outstanding—basic 21,562 21,216 21,481 21,195 BASIC INCOME (LOSS) PER COMMON SHARE $ 0.41 $ 0.13 $ (0.71 ) $ (0.40 ) Weighted-average shares outstanding—diluted 21,617 21,468 21,481 21,195 DILUTED INCOME (LOSS) PER COMMON SHARE $ 0.41 $ 0.13 $ (0.71 ) $ (0.40 ) LIFETIME BRANDS, INC. CONSOLIDATED BALANCE SHEETS (in thousands - except share data) December 31, 2024 2023 ASSETS CURRENT ASSETS Cash and cash equivalents $ 2,929 $ 16,189 Accounts receivable, less allowances of $14,093 at December 31, 2024 and $15,952 at December 31, 2023 156,743 155,180 Inventory 202,408 188,647 Prepaid expenses and other current assets 11,488 16,339 TOTAL CURRENT ASSETS 373,568 376,355 PROPERTY AND EQUIPMENT, net 15,049 16,970 OPERATING LEASE RIGHT-OF-USE ASSETS 59,571 69,756 INVESTMENTS — 1,826 INTANGIBLE ASSETS, net 183,527 199,133 OTHER ASSETS 2,595 3,102 TOTAL ASSETS $ 634,310 $ 667,142 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Current maturity of term loan $ 4,891 $ 4,742 Accounts payable 60,029 54,154 Accrued expenses 70,848 78,356 Income taxes payable 830 641 Current portion of operating lease liabilities 15,145 14,075 TOTAL CURRENT LIABILITIES 151,743 151,968 OTHER LONG-TERM LIABILITIES 15,955 9,126 INCOME TAXES PAYABLE, LONG-TERM 706 1,493 OPERATING LEASE LIABILITIES 56,740 70,009 DEFERRED INCOME TAXES 5,601 7,438 REVOLVING CREDIT FACILITY 42,693 60,395 TERM LOAN 130,949 135,834 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 December 31, 2024 and 2023; shares issued and outstanding: 22,155,735 at December 31, 2024 and 21,813,266 at December 31, 2023 222 218 Paid-in capital 280,566 277,728 Accumulated deficit (32,550 ) (13,568 ) Accumulated other comprehensive loss (18,315 ) (33,499 ) TOTAL STOCKHOLDERS' EQUITY 229,923 230,879 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 634,310 $ 667,142 LIFETIME BRANDS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Year Ended December 31, 2024 2023 OPERATING ACTIVITIES Net loss $ (15,165 ) $ (8,412 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 22,314 19,571 Amortization of financing costs 2,859 1,968 Mark to market loss on interest rate derivatives 466 499 Operating leases, net (2,010 ) (1,889 ) Provision for doubtful accounts 950 2,116 Deferred income taxes (2,039 ) (2,130 ) Stock compensation expense 3,920 3,687 Equity in losses, net of taxes 2,092 12,665 Contingent consideration fair value adjustment — (650 ) Gain on extinguishments of debt, net — (761 ) Loss on equity securities 14,152 — Changes in operating assets and liabilities Accounts receivable (3,206 ) (14,972 ) Inventory (14,557 ) 35,428 Prepaid expenses, other current assets and other assets 5,200 (1,833 ) Accounts payable, accrued expenses and other liabilities 4,185 10,846 Income taxes payable (592 ) 298 NET CASH PROVIDED BY OPERATING ACTIVITIES 18,569 56,431 INVESTING ACTIVITIES Purchases of property and equipment (2,227 ) (2,801 ) NET CASH USED IN INVESTING ACTIVITIES (2,227 ) (2,801 ) FINANCING ACTIVITIES Proceeds from revolving credit facility 268,209 162,391 Repayments of revolving credit facility (285,264 ) (113,530 ) Proceeds from Term Loan — 55,991 Repayments of Term Loan (7,500 ) (149,540 ) Payment of financing costs — (9,537 ) Payments for finance lease obligations (45 ) (27 ) Payments of tax withholding for stock based compensation (1,081 ) (537 ) Payments for stock repurchase — (2,539 ) Cash dividends paid (3,809 ) (3,734 ) NET CASH USED IN FINANCING ACTIVITIES (29,490 ) (61,062 ) Effect of foreign exchange on cash (112 ) 23 DECREASE IN CASH AND CASH EQUIVALENTS (13,260 ) (7,409 ) Cash and cash equivalents at beginning of year 16,189 23,598 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 2,929 $ 16,189 LIFETIME BRANDS, INC. Supplemental Information (in thousands) Reconciliation of GAAP to Non-GAAP Operating Results Adjusted EBITDA for the year ended December 31, 2024: Three Months Ended Year Ended March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 December 31, 2024 (in thousands) Net (loss) income as reported $ (6,260 ) $ (18,167 ) $ 344 $ 8,918 $ (15,165 ) Loss on equity securities — 14,152 — — 14,152 Equity in losses, net of taxes 2,092 — — — 2,092 Income tax provision (benefit) 210 (57 ) 1,507 1,671 3,331 Interest expense 5,614 5,157 5,834 5,603 22,208 Depreciation and amortization 4,939 4,894 6,408 6,073 22,314 Mark to market loss (gain) on interest rate derivatives 174 82 928 (718 ) 466 Stock compensation expense 807 1,037 1,042 1,034 3,920 Acquisition related expenses 95 641 210 143 1,089 Warehouse redesign expenses(1) 18 35 662 249 964 Adjusted EBITDA(2) $ 7,689 $ 7,774 $ 16,935 $ 22,973 $ 55,371 (1) For the year ended December 31, 2024, the warehouse redesign expenses were related to the U.S. segment. (2) Adjusted EBITDA is a non-GAAP financial measure that is defined in the Company's debt agreements. Adjusted EBITDA is defined as net (loss) income, adjusted to exclude loss on equity securities, equity in losses, net of taxes, income tax provision (benefit), interest expense, depreciation and amortization, mark to market loss (gain) on interest rate derivatives, stock compensation expense, and other items detailed in the table above that are consistent with exclusions permitted by our debt agreements. Adjusted EBITDA for the year ended December 31, 2023: Three Months Ended Year Ended March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 December 31, 2023 (in thousands) Net (loss) income as reported $ (8,805 ) $ (6,520 ) $ 4,206 $ 2,707 $ (8,412 ) Equity in losses, net of taxes 2,777 5,863 1,047 2,978 12,665 Income tax (benefit) provision (1,348 ) 1,242 3,015 3,313 6,222 Interest expense 5,336 5,528 5,246 5,618 21,728 Depreciation and amortization 4,870 4,925 4,821 4,955 19,571 Mark to market loss (gain) on interest rate derivatives 234 (197 ) 98 364 499 Stock compensation expense 861 1,011 898 917 3,687 Contingent consideration fair value adjustment — (50 ) — (600 ) (650 ) (Gain) loss on extinguishments of debt, net — (1,520 ) — 759 (761 ) Acquisition related expenses 490 242 186 407 1,325 Restructuring expenses 856 — — — 856 Warehouse redesign expenses (1) 194 157 176 51 578 Adjusted EBITDA (2) $ 5,465 $ 10,681 $ 19,693 $ 21,469 $ 57,308 (1) For the year ended December 31, 2023, the warehouse redesign expenses related to the U.S. segment. (2) Adjusted EBITDA is a non-GAAP financial measure which is defined in the Company's debt agreements. Adjusted EBITDA is defined as net (loss) income, adjusted to exclude equity in losses, net of taxes, income tax (benefit) provision, interest expense, depreciation and amortization, mark to market loss (gain) on interest rate derivatives, stock compensation expense, (gain) loss on extinguishments of debt, net, 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 December 31, Year Ended December 31, 2024 2023 2024 2023 Net income (loss) as reported $ 8,918 $ 2,707 $ (15,165 ) $ (8,412 ) Adjustments: Acquisition intangible amortization expense 4,367 3,802 15,589 14,835 Contingent consideration fair value adjustments — (600 ) — (650 ) Loss (gain) on extinguishments of debt, net — 759 — (761 ) Acquisition related expenses 143 407 1,089 1,325 Restructuring expenses — — — 856 Warehouse redesign expenses(1) 249 51 964 578 Impairment of Grupo Vasconia investment — — — 6,834 Mark to market (gain) loss on interest rate derivatives (718 ) 364 466 499 Loss on equity securities — — 14,152 — Income tax effect on adjustments (990 ) (1,163 ) (4,452 ) (4,094 ) Adjusted net income(2) $ 11,969 $ 6,327 $ 12,643 $ 11,010 Adjusted diluted income per share(3) $ 0.55 $ 0.29 $ 0.58 $ 0.52 (1) For the years ended December 31, 2024 and 2023, the warehouse redesign expenses were related to the U.S. segment. (2) Adjusted net income and adjusted diluted income per common share in the three months ended and year ended December 31, 2024 excludes acquisition intangible amortization expense, acquisition related expenses, warehouse redesign expenses, mark to market (gain) loss on interest rate derivatives, and loss on equity securities. 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 months ended and year ended December 31, 2023 excludes acquisition intangible amortization expense, contingent consideration fair value adjustments, loss (gain) on extinguishments of debt, net, acquisition related expenses, restructuring expenses, warehouse redesign expenses, impairment of Grupo Vasconia investment, and mark to market (gain) loss on interest rate derivatives. The income tax effect on adjustments reflects the statutory tax rates applied on the adjustments. (3) Adjusted diluted income per common share is calculated based on diluted weighted-average shares outstanding of 21,617 and 21,468 for the three month period ended December 31, 2024 and 2023, respectively, and 21,636 and 21,316 for the year ended December 31, 2024 and 2023, respectively. The diluted weighted-average shares outstanding for the three months ended and year ended December 31, 2024 include the effect of dilutive securities of 55 and 155 shares, respectively. The diluted weighted-average shares outstanding for the three months ended and year ended December 31, 2023 include the effect of dilutive securities of 252 and 121 shares, respectively. Adjusted income from operations (in thousands): Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Income from operations $ 15,474 $ 15,739 $ 27,084 $ 31,941 Adjustments: Acquisition intangible amortization expense 4,367 3,802 15,589 14,835 Contingent consideration fair value adjustments — (600 ) — (650 ) Acquisition related expenses 143 407 1,089 1,325 Restructuring expenses — — — 856 Warehouse redesign expenses(1) 249 51 964 578 Total adjustments 4,759 3,660 17,642 16,944 Adjusted income from operations(2) $ 20,233 $ 19,399 $ 44,726 $ 48,885 (1) For the years ended December 31, 2024 and 2023, the warehouse redesign expenses were related to the U.S. segment. (2) Adjusted income from operations for the three months ended and year ended December 31, 2024 and December 31, 2023, excludes acquisition intangible amortization expense, contingent consideration fair value adjustments, acquisition related expenses, restructuring expenses, and warehouse redesign expenses. LIFETIME BRANDS, INC. Supplemental Information (in thousands) Reconciliation of GAAP to Non-GAAP Operating Results (continued) Constant Currency: As Reported Three Months Ended December 31, Constant Currency (1) Three Months Ended December 31, Year-Over-Year Increase (Decrease) Net sales 2024 2023 Increase (Decrease) 2024 2023 Increase (Decrease) Currency Impact Excluding Currency Including Currency Currency Impact U.S. $ 195,997 $ 185,222 $ 10,775 $ 195,997 $ 185,134 $ 10,863 $ 88 5.9 % 5.8 % (0.1) % International $ 19,210 $ 17,921 $ 1,289 $ 19,210 $ 18,393 $ 817 $ (472 ) 4.4 % 7.2 % 2.8 % Total net sales $ 215,207 $ 203,143 $ 12,064 $ 215,207 $ 203,527 $ 11,680 $ (384 ) 5.7 % 5.9 % 0.2 %
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