Lifetime Brands, Inc. (NASDAQ:LCUT) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 11:00 am ET

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Lifetime Brands, Inc. (NASDAQ:LCUT) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, ladies and gentlemen, and welcome to Lifetime Brands Second Quarter 2020 Earnings Conference Call. [Operator Instructions].

I would now like to introduce your host for today's conference, Andrew Squire. Mr. Squire, you may begin.

Executive
Andrew Squire

Thank you. Good morning, and thank you for joining Lifetime Brands Second Quarter 2020 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.

Our remarks this morning and in today's press release also contain non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Included in such release is a reconciliation of these non-GAAP financial measures to the comparable financial measures calculated in accordance with GAAP.

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

Executive
Rob Kay

Thank you. Thank you. Good morning, everyone, and thank you for joining us today to discuss Lifetime Brands Second Quarter 2020 Financial Results. We are pleased with our second quarter results, which have demonstrated the resilience of our business model in challenging economic conditions and the benefits from what we are creating through our Lifetime 2.0 strategic plan. Our strong results for the quarter were driven by end market demand in several categories including kitchen tools and gadgets, bakeware, barware and cutlery. This result was achieved through our ability to capture revenues by quickly shifting to meet strong demand in several channels including e-commerce, mass and grocery retailers.

Overall, our company grew consolidated net sales by 5.3% over the second quarter of 2019, producing strong bottom line growth, including an increase in EBITDA of $8.1 million or 13%. As Larry will discuss, we also continue to generate significant cash flow and lower our net debt in the second quarter, and we were encouraged by the improved performance in our international business.

I'll start with our core U.S. business. Building on a strong second half of 2019 and continued growth in the first quarter of 2020, we continued to see strong demand and shipment levels in our core U.S. business, with an increase in activity in our e-commerce, mass and grocery channels. Our kitchen, food prep, cutlery and bakeware products remained popular this quarter as families continue to increasingly cook meals at home. To that end, the strong demand led to numerous products that were difficult to keep in stock across the majority of our popular SKUs in these product categories. We worked hard to accelerate our supply chain to get these items back