GARDEN CITY, N.Y.–Lifetime Brands reported a net loss of $1.3 million, or $0.10 per diluted share, for the second quarter ended June 30, compared to a net loss of $3.6 million, or $0.30 per diluted share, for the 2008 quarter, the company said in a release. On a pre-tax basis, the loss for the quarter was $1.0 million for this quarter, and $8.9 million for the same period in 2008.
Net sales for the quarter were $85.3 million, compared to a total of $92.4 million for the same period last year. Adjusted EBITDA came to $4.6 million for the 2009 quarter, as compared to a loss of $2.7 million for the same period last year.
Net sales for the company’s wholesale division totaled $80.9 million, a 1.3 percent increase. On a comparable basis, after adjusting net sales of Mikasa, which was acquired on June 6, 2008, to reflect net sales for the period after June 6, 2009, the wholesale segment’s net sales came to $74.6 million in 2009, a decrease of $5.3 million, or 6.6 percent. The company attributed the drop to non-recurrence of sales to Linens ’n Things, which liquidated last year; less inventory reduction plan activity; the company’s elimination of some of its low-margin business in 2009 and the planned effect of a change in the company’s relationship with Accent-Fairchild Group, a Canadian company that used to distribute Lifetime’s products in that country but now operates a portion of its business as Lifetime Brands Canada.
“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,” said Jeff Siegel, chairman, president and chief executive officer. “Our improved operating results, combined with the success of our on-going inventory reduction efforts, enabled us to reduce our bank borrowings by $38.0 million, as compared to June 30, 2008, and by $31.5 million, as compared to December 31, 2008.”
He added, “We continue to work closely with our retail partners to create customized sales programs tailored to today’s business climate. In addition we think the current environment presents us with opportunities to expand our market share in all our product classifications. Consequently, we believe that we are well positioned to take advantage of the holiday shopping season.”