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Category: Stock Market and Lifetime Brands
Date: 12 March 2020 Stock Price: $6.39 We take a look at the 4th quarter earnings release of their 2019 fiscal year of Lifetime Brands, a designer, developer and marketer of a broad range of branded consumer products.
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About Lifetime Brands
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®, Kizmos™, La Cafetière®, MasterClass®, Misto®, Mossy Oak®, Swing-A-Way®, Taylor® Kitchen, Rabbit® and Vasconia®; respected tableware and giftware brands, including Mikasa®, Pfaltzgraff®, Fitz and Floyd®, Creative Tops®, Empire Silver™, Gorham®, International® Silver, Kirk Stieff®, Towle® Silversmiths, Wallace®, Wilton Armetale®, V&A® and Royal Botanic Gardens Kew®; and valued home solutions brands, including BUILT NY®, Taylor® Bath, Taylor® Weather and Planet Box®. The Company also provides exclusive private label products to leading retailers worldwide.
Overview of Lifetime Brands' 4th quarter 2019 earnings report
The numbers below refers to the latest quarter unless specified otherwise:
- Total revenue: $226.938 million (down from $228.274 million from the same quarter of the previous year)
- Revenues decreased by -0.58% over the last 12 months
- Cost of sales: $143.028 million (down from $143.437 million for the same quarter of the previous year)
- Cost of sales decreased by -0.29% over the last 12 months
- Some margin pressure on Lifetime Brands as revenues declined at a faster rate than their cost of sales
- Net loss: -$14.56 million (down from $9.98 million for the same quarter of the previous year)
- Diluted loss per share: -$0.70 (down from $0.49 for the same quarter of the previous year)
- Diluted weighted-average shares outstanding: 20.660 million (up from 20.454 million for the same quarter of the previous year)
- Cash and cash equivalents: $11.370 million
- Cash and cash equivalents per share: $0.55
- Cash and cash equivalents makes up 8.6% of Lifetime Brands' market capital
- Cash and cash equivalents makes up 1.47% of Lifetime Brands' total assets
- Receivables: $128.639 million
- Receivables makes up 16.7% of Lifetime Brands' total assets
- Inventories: $173.427 million
- Inventories makes up 22.5% of Lifetime Brands' total assets
- Stockholders equity in Lifetime Brands: $236.317 million
- Stockholders equity per share: $11.43
- Lifetime Brands is trading at 0.56 times its stockholders equity which is well outside the expected range of between 2 and 4 times that most firms tend to trade at
- The S&P 500 price to book value is at 3.34 (Click here to find out more details about the S&P 500)
- Cash generated from operations (for the full fiscal year): $29.872 million
- Cash generated from operations per share (for the full fiscal year): $1.45
Lifetime Brands' management commentary on their 4th quarter 2019 earnings report
GARDEN CITY, N.Y., March 11, 2020 (GLOBE NEWSWIRE) -- Lifetime Brands, Inc. (NasdaqGS: 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, 2019.
Robert Kay, Lifetime’s Chief Executive Officer, commented, “We are pleased that we continued to deliver growth in our core U.S. business, which led the Company to generate significant cash flow for the fourth quarter and full year 2019; however, despite those positive achievements, our performance this quarter fell short of our expectations driven by the operational issues in our European business in the third and fourth quarters. Our core U.S. business outperformed in the fourth quarter, as a result of strong performance in both brick and mortar retail and e-commerce, which continues to represent a meaningful growth driver for Lifetime. In addition, we continue to make progress on our product initiatives, including the ongoing ramp-up of our Mikasa® Hospitality line, and we remain committed to increasing the brand equity and trend of our best-in-class products and brands. Despite this momentum, operational challenges from our reorganized U.K. operations had an impact on shipments, which offset the Company’s overall results.”
Robert Kay, Lifetime’s Chief Executive Officer, commented, “We are pleased that we continued to deliver growth in our core U.S. business, which led the Company to generate significant cash flow for the fourth quarter and full year 2019; however, despite those positive achievements, our performance this quarter fell short of our expectations driven by the operational issues in our European business in the third and fourth quarters. Our core U.S. business outperformed in the fourth quarter, as a result of strong performance in both brick and mortar retail and e-commerce, which continues to represent a meaningful growth driver for Lifetime. In addition, we continue to make progress on our product initiatives, including the ongoing ramp-up of our Mikasa® Hospitality line, and we remain committed to increasing the brand equity and trend of our best-in-class products and brands. Despite this momentum, operational challenges from our reorganized U.K. operations had an impact on shipments, which offset the Company’s overall results.”
Mr. Kay continued, “As we look ahead toward fiscal 2020, we are confident that we have the right plan in place to stabilize our international business, which we expect will enable us to continue advancing our strategy and ensuring that our business remains on track to capture the market opportunity and drive value for our shareholders. Specifically, as of January 2020, we believe we have addressed the operational issues in our European operations and are back to normal on-time deliveries. As we look forward to 2020, we are pleased with our first quarter results for which we have not seen any noticeable impact from the coronavirus outbreak.”
Dividend
On Tuesday, March 10, 2020, the Board of Directors declared a quarterly dividend of $0.0425 per share payable on May 15, 2020 to shareholders of record on May 1, 2020.
Dividend
On Tuesday, March 10, 2020, the Board of Directors declared a quarterly dividend of $0.0425 per share payable on May 15, 2020 to shareholders of record on May 1, 2020.
Lifetime Brands (NASDAQ:LCUT) stock price history
The image below, obtained from Google, shows the stock price history of Lifetime Brands (NASDAQ: LCUT) over the last 5 years, and its not been a good time for Lifetime Brands stockholders. 5 years ago the stock of Lifetime Brands was trading at $14.60 and its currently trading at $6.39. That's a loss of-41.8% suffered by Lifetime Brands stockholders over the last 5 years.
The stock of Lifetime Brands is trading at a lot closer to its 52 week low of $4.38 than it is to its 52 week high of $10.52 which to us is a clear indication that the short term sentiment and momentum of Lifetime Brands is very negative at this point in time.
The stock of Lifetime Brands is trading at a lot closer to its 52 week low of $4.38 than it is to its 52 week high of $10.52 which to us is a clear indication that the short term sentiment and momentum of Lifetime Brands is very negative at this point in time.
Recent coverage of Lifetime Brands
The extract below discusses the latest earnings report from Lifetime Brands as obtained from Nasdaq.com
Lifetime Brands (LCUT) came out with quarterly earnings of $0.99 per share, missing the Zacks Consensus Estimate of $1 per share. This compares to earnings of $0.55 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -1%. A quarter ago, it was expected that this kitchen products company would post earnings of $0.44 per share when it actually produced a loss of $0.13, delivering a surprise of -129.55%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
Lifetime Brands, which belongs to the Zacks Consumer Products - Discretionary industry, posted revenues of $226.94 million for the quarter ended December 2019, missing the Zacks Consensus Estimate by 4.06%. This compares to year-ago revenues of $228.27 million. The company has not been able to beat consensus revenue estimates over the last four quarters.
Read the full article here
Lifetime Brands (LCUT) came out with quarterly earnings of $0.99 per share, missing the Zacks Consensus Estimate of $1 per share. This compares to earnings of $0.55 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -1%. A quarter ago, it was expected that this kitchen products company would post earnings of $0.44 per share when it actually produced a loss of $0.13, delivering a surprise of -129.55%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
Lifetime Brands, which belongs to the Zacks Consumer Products - Discretionary industry, posted revenues of $226.94 million for the quarter ended December 2019, missing the Zacks Consensus Estimate by 4.06%. This compares to year-ago revenues of $228.27 million. The company has not been able to beat consensus revenue estimates over the last four quarters.
Read the full article here
Lifetime Brands (NASDAQ: LCUT) latest stock valuation
So based on the 4th quarter and full year 2019 earnings report of Lifetime Brands and what do we value Lifetime Brands stock at? Based on the earnings reported by Lifetime Brands our valuation model provides a target (full value) price for Lifetime Brands at $11.40 a stock.
We therefore believe the stock is undervalued at its current price but we would not recommend long term fundamental or value investors invest into the stock at its current price as the losses will start eating into their cash and eventually their stockholders equity. We usually recommend that long term fundamental or value investors look to enter the stock at least 10% below our target price (full value price) of $11.40. Therefore we believe a good entry point into Lifetime Brands stock would be at $10.30 or below (once the the group starts showing profitability again).
We therefore believe the stock is undervalued at its current price but we would not recommend long term fundamental or value investors invest into the stock at its current price as the losses will start eating into their cash and eventually their stockholders equity. We usually recommend that long term fundamental or value investors look to enter the stock at least 10% below our target price (full value price) of $11.40. Therefore we believe a good entry point into Lifetime Brands stock would be at $10.30 or below (once the the group starts showing profitability again).
Next earnings release of Lifetime Brands
It is expected that Lifetime Brands will release their 1st quarter 2020 earnings towards the middle of June 2020