Item 5. Market for Registrant’s Common Equity
Item 5. Market For Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
The Company’s common stock is traded under the symbol “LCUT” on the NASDAQ Global Select Market (“NASDAQ”).
At February 28, 2021, the Company estimates that there were approximately 2,095 record holders of the Company’s common stock.
The Company is authorized to issue 100 shares of Series A Preferred stock and 2,000,000 shares of Series B Preferred stock, none of which were issued or outstanding at December 31, 2020.
For a discussion of dividends paid by the Company in 2020 and 2019, refer to Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Dividends. The Board of Directors currently intends to continue paying cash dividends for the foreseeable future, although the Board of Directors may in its discretion determine to modify or eliminate such dividends at any time.
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PERFORMANCE GRAPH
The following chart compares the cumulative total return on the Company’s common stock with the NASDAQ Market Index, the Company’s peer group, which is comprised of companies that we believe have comparable characteristics and are in the same industry or line-of-business, and the Hemscott Group Index for Housewares & Accessories. The comparisons in this chart are required by the SEC and are not intended to forecast or be indicative of the possible future performance of the Company’s common stock.
Date Lifetime
Brands, Inc. Hemscott
Group Index Peer
Group NASDAQ
Market
Index
12/31/2015 (1)
$ 100.00 $ 100.00 $ 100.00 $ 100.00
12/31/2016 $ 135.40 $ 103.49 $ 93.38 $ 108.87
12/31/2017 $ 126.98 $ 73.37 $ 114.43 $ 141.13
12/31/2018 $ 78.24 $ 45.83 $ 115.63 $ 137.12
12/31/2019 $ 55.25 $ 49.70 $ 144.92 $ 187.44
12/31/2020 $ 123.31 $ 59.04 $ 188.28 $ 271.64
(1) The graph assumes $100 was invested as of the close of trading on December 31, 2015 and dividends were reinvested. Measurement points are at the last trading day of each of the fiscal years ended December 31, 2016, 2017, 2018, 2019 and 2020. The material in this chart is not soliciting material, is not deemed filed with the SEC and is not incorporated by reference in any filing of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, irrespective of any general incorporation by reference language in such filing. A list of the companies included in the Company’s Hemscott Group Index will be furnished by the Company to any stockholder upon written request to the Chief Financial Officer of the Company. Peer issuers included in the peer group identified include, Acushnet Holdings Corp., Callaway Golf Co., Crocs, Inc., Delta Apparel, Inc., Hamilton Beach Brands Holding Co., Helen of Troy Ltd., JAKKS Pacific, Inc., Lands’ End, Inc., Movado Group, Inc., Oxford Industries, Inc., The Buckle, Inc. and Tupperware Brands Corp.
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The table below sets forth information regarding issuer purchases of equity securities:
Period Total number of
shares
purchased (1)
Average price
paid per share Total number of
shares
purchased as
part of publicly
announced
plans or
programs (2)
Maximum
approximate
dollar value of
shares that
may yet be
purchased
under the plans
or programs
subsequent to
end of period (2)
November 1 - November 30, 2020 2,751 $ 12.34 — $ 6,771,467
December 1 - December 31, 2020 12,574 $ 15.20 — $ 6,771,467
(1) The repurchased shares were acquired other than as part of a publicly announced plan or program. The Company repurchased these securities in connection with its Amended and Restated 2000 Long Term Incentive Plan which allows participants to use shares to satisfy certain tax liabilities arising from the vesting of restricted stock. The number above does not include unvested shares forfeited back to the Company pursuant to the terms of the Company’s stock compensation plans.
(2) On April 30, 2013, the Board of Directors of Lifetime Brands, Inc. authorized the repurchase of up to $10.0 million of the Company’s common stock. The repurchase authorization permits the Company to effect the repurchases from time to time through open market purchases and privately negotiated transactions. No repurchases occurred during the three months ended December 31, 2020.
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Item 6. Selected Financial Data
The selected consolidated statement of operations data for the years ended December 31, 2020, 2019 and 2018 and the selected consolidated balance sheet data as of December 31, 2020 and 2019 have been derived from the Company’s audited consolidated financial statements included elsewhere in this Annual Report on Form 10-K. The selected consolidated statement of operations data for the years ended December 31, 2017 and 2016 and the selected consolidated balance sheet data at December 31, 2018, 2017 and 2016 have been derived from the Company’s audited consolidated financial statements included in the Company’s Annual Reports on Form 10-K for those respective years, which are not included in this Annual Report on Form 10-K.
This information should be read together with the discussion in Management’s Discussion and Analysis of Financial Condition and Results of Operations and the Company’s consolidated financial statements and Notes to those statements included elsewhere in this Annual Report on Form 10-K.
Year ended December 31,
2020 2019 2018 2017 2016
(in thousands, except per share data)
STATEMENT OF OPERATIONS DATA (1)
Net sales $ 769,169 $ 734,902 $ 704,542 $ 579,476 $ 592,619
Cost of sales (2)
495,171 479,711 448,785 364,319 375,719
Distribution expenses (3)
72,845 72,543 69,716 58,050 57,006
Selling, general and administrative expenses (4)
155,872 161,618 162,933 140,903 130,397
Goodwill and other impairments 20,100 42,990 2,205 — —
Restructuring expenses 211 1,435 2,324 1,024 2,420
Income (loss) from operations
24,970 (23,395) 18,579 15,180 27,077
Interest expense (17,277) (20,780) (18,004) (4,291) (4,803)
Mark to market (loss) gain on interest rate derivatives (2,144) 402
Loss on early retirement of debt — — (66) (110) (272)
Income (loss) before income taxes and equity in earnings
5,549 (43,773) 509 10,779 22,002
Income tax provision
(9,866) (1,109) (2,889) (9,032) (7,030)
Equity in earnings, net of taxes
1,310 467 660 407 748
Net (loss) income
$ (3,007) $ (44,415) $ (1,720) $ 2,154 $ 15,720
Basic (loss) income per common share
$ (0.14) $ (2.16) $ (0.09) $ 0.15 $ 1.11
Weighted-average shares outstanding – basic 20,860 20,597 19,452 14,505 14,174
Diluted (loss) income per common share
$ (0.14) $ (2.16) $ (0.09) $ 0.14 $ 1.08
Weighted-average shares outstanding – diluted (5)
20,860 20,597 19,452 14,955 14,549
Cash dividends declared per common share $ 0.17 $ 0.17 $ 0.17 $ 0.17 $ 0.17
December 31,
2020 2019 2018 2017 2016
(in thousands)
BALANCE SHEET DATA (1)
Current assets $ 421,293 $ 329,153 $ 318,804 $ 258,423 $ 256,447
Current liabilities (6)
180,070 107,307 84,876 71,515 91,286
Working capital (6)
241,223 221,846 233,928 186,908 165,161
Total assets (6)
807,481 770,023 708,572 401,521 399,854
Short-term borrowings 17,657 8,413 1,253 69 9,456
Long-term debt 266,279 287,103 304,774 94,744 86,201
Stockholders’ equity 230,136 236,317 279,493 210,279 197,728
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Notes:
(1) The acquisition of Filament in March 2018 affects the comparability of the periods.
(2) Prior to January 1, 2019, depreciation associated with certain tooling used to produce products was classified as selling, general and administrative expenses. The amount recorded in cost of sales for the year ended December 31, 2020 and 2019 was $1.0 million and $1.4 million, respectively. The impact on the comparative periods presented is immaterial and therefore, the comparative periods have not been adjusted to reflect this change in accounting policy.
(3) The 2016 period includes a $1.2 million charge to correct prior years’ depreciation of certain assets within the U.S. segment.
(4) The 2018 period includes a gain of $1.7 million related to adjustments to the fair value of certain contingent consideration.
(5) The computations of weighted-average shares outstanding - diluted excludes stock options and other stock awards that if included would have been anti-dilutive.
(6) The 2019 and subsequent periods reflect the adoption of the Financial Accounting Standards Board's (“FASB”) Accounting Standard's Update No. (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”) which requires a lessee, in most leases, to initially recognize a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. As a result, comparability to the prior years' current liabilities, working capital, and total assets is affected.
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