Lifetime Brands(US:LCUT)2024-11-07 21:20Financial Performance - Consolidated net sales for Q3 2024 were $183.8 million, a decrease of $7.9 million, or 4.1%, compared to $191.7 million in Q3 2023[157]. - U.S. segment net sales for Q3 2024 were $170.2 million, down $9.2 million, or 5.1%, from $179.4 million in Q3 2023[158]. - Consolidated net sales for the nine months ended September 30, 2024, were $467.7 million, a decrease of $15.8 million, or 3.3%, compared to $483.5 million for the same period in 2023[177]. - Net sales for the U.S. segment for the nine months ended September 30, 2024, were $431.2 million, a decrease of $16.7 million, or 3.7%, compared to $447.9 million for the same period in 2023[178]. - Net income for the quarter ended September 30, 2024, was reported at a loss of $21.4 million, compared to a net income of $2.7 million for the same period in 2023[226]. Gross Margin and Expenses - Gross margin for Q3 2024 was $67.4 million, or 36.7%, compared to $71.0 million, or 37.0%, in Q3 2023[163]. - U.S. segment gross margin for Q3 2024 was $62.7 million, or 36.8%, down from $67.0 million, or 37.3%, in Q3 2023[163]. - Selling, general and administrative expenses for the three months ended September 30, 2024, were $38.8 million, a decrease of $1.4 million, or 3.5%, compared to $40.2 million for the same period in 2023[169]. - Distribution expenses for the three months ended September 30, 2024, were $20.0 million, an increase of $2.9 million, or 16.9%, compared to $17.1 million for the same period in 2023[165]. Segment Performance - The U.S. segment's Kitchenware product category saw net sales of $97.3 million in Q3 2024, a slight decrease of $0.4 million, or 0.4%, from $97.7 million in Q3 2023[159]. - The U.S. segment's Tableware product category experienced a significant decline, with net sales of $40.9 million in Q3 2024, down $8.0 million, or 16.4%, from $48.9 million in Q3 2023[160]. - The U.S. segment's Home Solutions product category reported net sales of $32.0 million in Q3 2024, a decrease of $0.8 million, or 2.4%, from $32.8 million in Q3 2023[161]. - International segment net sales increased to $13.6 million in Q3 2024, up $1.3 million, or 10.6%, from $12.3 million in Q3 2023[162]. Cash Flow and Liquidity - As of September 30, 2024, the Company had cash and cash equivalents of $6.0 million, down from $16.2 million at December 31, 2023, while working capital increased to $230.2 million from $224.4 million[201]. - Net cash used in operating activities was $1.7 million for the nine months ended September 30, 2024, a decrease from $17.0 million in the same period of 2023[231]. - The Company believes that its current liquidity sources are sufficient to fund operations for the next twelve months, but may seek alternative sources if circumstances change[204]. Debt and Interest - Interest expense for the nine months ended September 30, 2024, was $16.6 million, an increase from $16.1 million for the same period in 2023[194]. - The interest rate on outstanding borrowings under the Term Loan at September 30, 2024, was 10.73%[215]. - Interest expense for the quarter ended September 30, 2024, totaled $22.2 million, reflecting ongoing financial obligations[226]. Other Financial Metrics - Adjusted EBITDA for the trailing twelve months ended September 30, 2024, was $53.9 million, which is used in the calculation of various financial ratios required by lenders[221]. - Loss on equity securities was $14.2 million for the nine months ended September 30, 2024, due to the reclassification of accumulated other comprehensive losses[197]. - The company reported a loss on equity securities of $14.2 million for the twelve months ended September 30, 2024[226]. - The aggregate gross notional value of foreign exchange contracts at September 30, 2024, was $2.8 million, designated as hedges for accounting purposes[229].