Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 0-19254 LIFETIME BRANDS, INC. (Exact name of registrant as specified in its charter) Delaware 11-2682486 (State ...

Business Segments and Operations - The Company operates in two reportable segments: U.S. and International, with the U.S. segment focusing on domestic operations and the International segment covering operations outside the U.S.[38] - The Company has a significant international presence, with subsidiaries in the U.K., China, and Mexico, and a strategic alliance for distribution in Canada[32][33]. - The Company operates distribution facilities totaling over 1.8 million square feet across various locations, including Rialto, California (703,000 sq ft) and Robbinsville, New Jersey (700,000 sq ft)[44]. - The company employs approximately 1,260 full-time employees, with 910 located in the U.S. and Puerto Rico[54]. - The Company sources almost all of its products from suppliers outside the U.S., primarily in China, and has a facility in Puerto Rico for manufacturing sterling silver products[36]. Customer Base and Sales - The Company has a diverse customer base, including mass market merchants like Walmart and Target, specialty stores, department stores, and e-commerce platforms such as Amazon[41]. - In 2022, Walmart accounted for 19% of consolidated net sales, while Costco and Amazon accounted for 13% and 11%, respectively[43]. - The company's U.K. operations generated net sales of $45.7 million in 2022, representing approximately 6% of consolidated net sales[66]. - The company has a significant reliance on major customers, with Walmart accounting for 19% of consolidated net sales, Costco for 13%, and Amazon for 11% during the year ended December 31, 2022[104]. - Changes in purchasing practices by large customers could adversely affect the company's operating results and financial condition, increasing credit risk and reducing demand[105]. Product and Brand Management - The Company sells products under several well-known brands, including Mikasa (owned), KitchenAid (licensed), and Farberware (licensed), across various product categories[35]. - The Company holds a fully-paid, royalty-free license for the Farberware brand, which represents a material portion of its sales, expiring in 2195[53]. - In 2022, sales of licensed brands accounted for approximately 14% of the Company's gross sales, indicating a significant reliance on third-party licenses[119]. - New product development is critical for the company's growth strategy, and failure to introduce competitive products could adversely affect performance and future growth prospects[111]. - The Company may face challenges in renewing its KitchenAid brand license, which expires in December 2026, potentially impacting its sales[121]. Financial Position and Debt - The Company has substantial indebtedness, and its highly seasonal business impacts its borrowing needs and financial position[18]. - As of December 31, 2022, the Company had $256.3 million of consolidated debt outstanding under a senior secured term loan credit facility[75]. - The Company's credit agreement allows for a maximum aggregate principal amount of $200.0 million, maturing on August 25, 2027[76]. - Borrowings under the Debt Agreements represented approximately 35% of total capital as of December 31, 2022[76]. - The Company may face significant negative consequences due to its leverage and seasonal fluctuations in cash flow, impacting its ability to meet financial covenants[78]. Risks and Challenges - The Company faces various risks, including macroeconomic factors, supply chain disruptions, and competition, which could materially affect its financial results[18][23]. - The Company is subject to regulatory compliance requirements, and non-compliance could adversely affect its operations and financial condition[28]. - The company is exposed to intense competition, which could lead to loss of market share and necessitate price reductions to remain competitive[98]. - The Company is subject to various risks, including inflation in supply chain costs and potential impacts from geopolitical conditions such as the military conflict in Ukraine[65]. - The Company has experienced supply chain disruptions due to limited container capacity and increased demand, impacting its ability to meet customer obligations[117]. Operational and Market Risks - The Company aims to manage operational challenges related to the ongoing COVID-19 pandemic and other health issues to mitigate adverse impacts on its business[18]. - The Company is subject to transportation risks, including increases in fuel costs and disruptions due to geopolitical conflicts, which could adversely affect its business operations[113]. - The Company conducts business internationally, exposing it to risks from fluctuations in foreign currency exchange rates and regulatory compliance issues[129]. - The Company may need to seek alternate sources of supply if its operations are curtailed, which could be more expensive and lead to delays[118]. - The Company is transitioning to cloud-based technologies, which may expose it to additional cyber threats during the migration process[144]. Financial Management and Market Risk - The Company entered into foreign exchange derivative contracts to hedge against volatility in exchange rates related to international inventory purchases[89]. - The Company assesses market risk using sensitivity analysis based on hypothetical changes of 10% or 100 basis points in interest and foreign currency exchange rates[279]. - The Company does not hedge the translation of foreign currency profits into USD, viewing it as an accounting exposure[281]. - A hypothetical 10% change in exchange rates would result in an increase of approximately $0.9 million in SG&A expenses[280]. - A hypothetical 100 basis point increase in variable interest rates would increase interest expense by approximately $2.6 million over a twelve-month period[283]. Compliance and Regulatory Environment - The Company is subject to increasing regulatory standards for data protection, such as GDPR and the California Consumer Privacy Act, which could result in legal and reputational risks[143]. - The Company operates in a regulated environment with significant compliance requirements, which if violated, could materially adversely affect its business[133]. - Non-compliance with anti-corruption laws could lead to regulatory sanctions and adversely affect the Company's business and financial condition[133]. - The Company is subject to various laws and regulations governing the Internet and e-commerce, which may impede growth and increase operational costs[134]. Human Resources and Management - The loss of key executives and skilled employees could adversely affect the Company's ability to achieve its strategic initiatives[148]. - The Company has significant influence from Taylor Parent due to its acquisition, which may lead to conflicts of interest[149]. - Taylor Parent holds significant control over the Company, requiring its approval for major actions, including incurring debt over $100 million and asset transactions exceeding $100 million[150].

Lifetime Brands, Inc. (NASDAQ:LCUT) Q4 2022 Earnings Conference Call March 9, 2023 11:00 AM ET Company Participants Andrew Squire - IR Rob Kay - CEO Larry Winoker - CFO Conference Call Participants Linda Bolton Weiser - D.A. Davidson Anthony Lebiedzinski - Sidoti & Co. Operator Good morning, ladies and gentlemen, and welcome to Lifetime Brands' Fourth Quarter and Full Year 2022 Earnings Conference Call. At this time I’d like to inform all participants that their lines will be in a listen-only mode. After th ...

Financial Data and Key Metrics Changes - In Q3 2022, the company reported net sales of $186.86 million, down from $224.8 million in Q3 2021, reflecting a 17% decline [10][33] - Adjusted EBITDA for Q3 2022 was $18.8 million, compared to $29.3 million in the same period last year [10][31] - The net loss for Q3 2022 was $6.4 million, or $0.30 per diluted share, compared to a net income of $12.6 million, or $0.57 per diluted share in Q3 2021 [31] Business Line Data and Key Metrics Changes - U.S. segment sales increased by 13% to $172.8 million, while international segment sales decreased by 49% to $13.8 million [33] - The gross margin percentage for the U.S. segment was 36.6%, down from 37.7% in the previous year, while international gross margin improved to 32.6% from 31.7% [35] Market Data and Key Metrics Changes - The company noted a significant drop in market demand in Europe and Asia Pacific, exacerbated by inflation and geopolitical factors [15][34] - Retail inventory levels have been reported as low, with many major retailers experiencing in-stock levels in the 80s, compared to target levels in the lower- to mid-90s [47] Company Strategy and Development Direction - The company is focusing on restructuring its European operations to align with reduced demand and has implemented cost-saving measures [16][21] - There is an ongoing strategy to explore acquisition opportunities in core and adjacent product categories, with a focus on maintaining a strong balance sheet [20][43] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the macroeconomic environment impacting consumer demand, particularly in Europe, and has withdrawn guidance for the full year 2022 due to uncertainty [24][25] - The company remains optimistic about its core business and expects to see improvements in the bottom line performance of its international business following restructuring efforts [25][26] Other Important Information - The company recorded unusual charges, including a $5.1 million estimate for facility remediation and a $6.2 million non-cash impairment charge [39][40] - Liquidity remains strong, with $170.6 million available as of September 30, 2022, and a focus on reducing inventory levels [41][42] Q&A Session Summary Question: Can you provide insight into retail inventory levels? - Management indicated that retail inventory levels are low, with in-stock levels at major retailers in the 80s, which is below target levels [47][49] Question: How are point-of-sale trends performing? - In the U.S., point-of-sale has been steady, but shipments have declined more significantly, while in Europe, demand continues to decline [50][52] Question: What are the sales figures for S'well year-to-date? - S'well sales for the quarter were reported at $8 million, with year-to-date sales at approximately $12.4 million since the acquisition [55][59] Question: How is the restructuring in Europe expected to impact costs? - The restructuring is expected to primarily benefit SG&A costs, with a focus on right-sizing the infrastructure to match reduced demand [72] Question: Will the decline in ocean freight costs lead to improved gross margins? - Management indicated that while ocean freight costs are declining, the impact on gross margins will not be immediate and is expected to materialize in 2023 [75]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2022 or LIFETIME BRANDS, INC. (Exact name of registrant as specified in its charter) Delaware 11-2682486 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 1000 Stewart Avenue, Garden City, New York, 11530 (Address o ...

Lifetime Brands, Inc. (NASDAQ:LCUT) Q2 2022 Results Conference Call August 4, 2022 11:00 AM ET Company Participants Andrew Squire - Investor Relations Rob Kay - Chief Executive Officer Larry Winoker - Chief Financial Officer Conference Call Participants Linda Bolton - D.A. Davidson Anthony Lebiedzinski - Sidoti& Company Operator Good morning, ladies and gentlemen, and welcome to Lifetime Brands' Second Quarter 2022 Earnings Conference Call. At this time, I would like to inform all participants that their li ...

Financial Performance - Consolidated net sales for Q2 2022 were $151.3 million, a decrease of $35.3 million or 18.9% compared to $186.6 million in Q2 2021[159]. - U.S. segment net sales for Q2 2022 were $137.2 million, down $29.4 million or 17.6% from $166.6 million in Q2 2021[160]. - Consolidated net sales for the six months ended June 30, 2022 were $334.0 million, a decrease of $48.3 million, or 12.6%, compared to $382.3 million for the same period in 2021[180]. - Net sales for the U.S. segment for the six months ended June 30, 2022 were $303.4 million, a decrease of $39.4 million, or 11.5%, compared to $342.8 million for the same period in 2021[181]. - Net sales for the International segment for the six months ended June 30, 2022 were $30.6 million, a decrease of $8.9 million, or 22.5%, compared to $39.5 million for the same period in 2021[186]. Product Category Sales - Kitchenware product category sales in the U.S. segment for Q2 2022 were $84.3 million, a decrease of $19.3 million or 18.6% compared to $103.6 million in Q2 2021[161]. - Tableware product category sales in the U.S. segment for Q2 2022 were $29.9 million, down $7.4 million or 19.8% from $37.3 million in Q2 2021[162]. - Home Solutions product category sales in the U.S. segment for Q2 2022 were $23.0 million, a decrease of $2.7 million or 10.5% compared to $25.7 million in Q2 2021[163]. Profitability and Margins - Gross margin for Q2 2022 was 36.5%, an increase from 35.4% in Q2 2021[158]. - Gross margin for the six months ended June 30, 2022 was $118.2 million, or 35.4%, compared to $132.2 million, or 34.6%, for the same period in 2021[187]. - Gross margin for the U.S. segment was $108.7 million, or 35.8%, for the six months ended June 30, 2022, compared to $119.4 million, or 34.8%, for the same period in 2021[188]. Expenses - Distribution expenses as a percentage of net sales increased to 11.5% in Q2 2022 from 10.1% in Q2 2021[158]. - Selling, general and administrative expenses as a percentage of net sales rose to 25.3% in Q2 2022 from 19.4% in Q2 2021[158]. - Selling, general and administrative expenses for the six months ended June 30, 2022 were $77.7 million, an increase of $3.4 million, or 4.6%, compared to $74.3 million for the same period in 2021[193]. - Selling, general and administrative expenses for the U.S. segment were $57.6 million for the six months ended June 30, 2022, compared to $53.8 million for the same period in 2021, with expenses as a percentage of net sales increasing to 19.0% from 15.7%[194]. Net Income and Loss - The company experienced a net loss of 2.3% in Q2 2022 compared to a net income of 3.1% in Q2 2021[158]. - The company reported a net income of $8.9 million for the twelve months ended June 30, 2022, compared to a net loss of $3.5 million for the quarter ended June 30, 2022[221]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $7.2 million as of June 30, 2022, down from $28.0 million at December 31, 2021, with working capital at $247.0 million compared to $270.8 million[204]. - Net cash used in operating activities was $8.9 million for the six months ended June 30, 2022, a decrease from net cash provided of $42.1 million in the same period of 2021[231]. - The company incurred $19.4 million in net cash used in investing activities for the six months ended June 30, 2022, primarily due to the acquisition of S'well for $18.0 million[232]. - The company experienced a significant decrease in cash flow from financing activities, providing $7.7 million in 2022 compared to a net cash used of $42.2 million in 2021[233]. Supply Chain and Operational Challenges - The company is facing challenges due to global supply chain disruptions and inflation, impacting costs and delivery times[146]. - Inventory turnover for the three months ended June 30, 2022, was 1.4 times (270 days), down from 2.3 times (162 days) in the same period of 2021, attributed to supply chain disruptions and inflation[205]. Debt and Interest - Interest expense for the six months ended June 30, 2022 was $7.5 million, a decrease from $7.8 million for the same period in 2021, due to lower debt outstanding on the Term Loan[197]. - The interest rate on outstanding borrowings under the ABL Agreement at June 30, 2022, ranged from 2.44% to 5.00%[213]. - The Term Loan facility bore interest at 4.6% as of June 30, 2022[214]. - The Company was in compliance with the covenants of the Debt Agreements at June 30, 2022[216]. Other Financial Metrics - Adjusted EBITDA for the last twelve months ended June 30, 2022, was $83.4 million, with capital expenditures of $1.5 million for the six months ended June 30, 2022[217]. - For the twelve months ended June 30, 2022, the adjusted EBITDA was $79.9 million, with a pro forma adjusted EBITDA of $83.4 million after accounting for projected synergies from the S'well acquisition[221]. - Mark to market gain on interest rate derivatives increased to $1.4 million for the six months ended June 30, 2022, compared to $0.5 million for the same period in 2021, due to rising interest rates[198]. - Income tax provision was $1.6 million for the six months ended June 30, 2022, with an effective tax rate of (69.8)%, compared to $4.2 million and 32.8% for the same period in 2021[199]. - Equity in earnings from Vasconia was $0.8 million for the six months ended June 30, 2022, up from $0.5 million in 2021, while Vasconia's income from operations decreased to $5.2 million from $10.3 million[200]. Shareholder Actions - The company authorized a stock repurchase program of up to $20.0 million, repurchasing 336,791 shares for a total cost of $4.2 million during the six months ended June 30, 2022[235].

Lifetime Brands, Inc. (NASDAQ:LCUT) Q1 2022 Earnings Conference Call May 5, 2022 11:00 AM ET Company Participants Andrew Squire - Investor Relations Rob Kay - Chief Executive Officer Larry Winoker - Chief Financial Officer Conference Call Participants Linda Bolton-Weiser - D.A. Davidson Anthony Lebiedzinski - Sidoti Operator Good morning, ladies and gentlemen and welcome to Lifetime Brands First Quarter 2022 Earnings Conference Call. [Operator Instructions] I would now like to introduce your host for today’ ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 0-19254 LIFETIME BRANDS, INC. (Exact name of registrant as specified in its charter) Delaware 11-2682486 (State ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________ FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 0-19254 LIFETIME BRANDS, INC. (Exact name of registrant as specified in its cha ...