Lifetime Brands, Inc. (NASDAQ:LCUT) Q1 2019 Earnings Conference Call Transcript

May 09, 2019 • 11:00 am ET


Lifetime Brands, Inc. (NASDAQ:LCUT) Q1 2019 Earnings Conference Call Transcript


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Ladies and gentlemen, good morning, and welcome to Lifetime Brands' First Quarter 2019 Earnings Conference Call. At this time, I'd like to inform all participants that their lines will be in listen-only mode. After the speakers remarks, there will be a question-and-answer period.

(Operator Instructions)

I will now turn the call over to our host, Andrew Squire. Mr. Squire, please go ahead.

Andrew Squire

Thank you. Good morning, everyone, and thank you for joining Lifetime Brands' First Quarter 2019 Earnings Call. With us today from management are Rob Kay, Chief Executive Officer; and Larry Winoker, Chief Financial Officer. Before we begin the call, I'd like to remind you that our remarks this morning may contain forward-looking statements that relate to the future performance of the company, and these statements are intended to qualify for the safe harbor liability established by the Private Securities Litigation Reform Act. Any such statements are not guarantees of future performance and factors that could influence our results are highlighted in today's press release and others are contained in our filings with the Securities and Exchange Commission.

With that introduction, I'd like to turn the call over to Rob Kay. Please go ahead, Rob.

Robert B. Kay

Thanks, Andrew. Good morning. We appreciate you joining us today to discuss Lifetime Brands' first quarter 2019 financial results. The company is off to a solid start to 2019, and I am pleased with our performance this quarter as we are starting to produce results which reflect our strategic decisions in 2018. The quarter results were driven by focused execution, strong end market demand and market share gain.

Our performance for the quarter showed consolidated adjusted EBITDA growth of $6.6 million as we are starting to see results from our recently implemented initiatives. Importantly, the unique headwinds we experienced in the fourth quarter have not continued into the first quarter of 2019. When we closed the Filament acquisition in March 2018, we embraced this change as an opportunity to relaunch Lifetime Brands and create a best-in-class company that is well positioned to capitalize on the rapidly-evolving macroeconomic and industry landscape.

Our work in 2018 has built a strong foundation for profitable growth, and these efforts have begun to bear fruit in the first quarter with strong top and bottom line growth. Customer demand was robust during the first quarter, which helped drive solid performance across the majority of our categories and channels. We also successfully implemented the planned price increases designed to mitigate tariff impacts put in place in 2018. These price increases were fully implemented by the end of February.

Our European operations delivered solid performance with year-over-year growth of $1 million in earnings from operations. Driving this improvement, we eliminated several product categories that had minimal or negative margin contribution. Concurrently, we added several growth brands in our existing markets, including the tabletop lines of Maxwell & Williams and London Pottery. As a result of these actions, revenues from our international operations grew by 9.9%, and more importantly, we saw increased profitability driven