 Declares Regular Quarterly Dividend GARDEN CITY, N.Y., Aug. 06, 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 ended June 30, 2020.Robert Kay, Lifetimes Chief Executive Officer, commented, We are pleased with Lifetimes strong results in the second quarter, which 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, Lifetime grew consolidated net sales by 5.3 over the second quarter of 2019 producing strong bottom line growth. Income from operations increased by 16.8 million and net loss declined by 7.5 million over the second quarter of 2019, resulting in an increase in last twelve months consolidated adjusted EBITDA of 8.1 million or 13 compared to last quarter. During the quarter, we achieved meaningful progress in our international business which, although down compared to prior year, showed growth by June as we started to see the benefits of our shift to a drop ship model and the beginning of a recovery in their end markets. Our continued focus on maintaining solid liquidity and a flexible balance sheet allowed us to continue to generate significant cash flow and lower our net debt in the second quarter. While we navigate through the COVID-19 environment, we are seeing the results from a resilient demand for our products, the investments from Lifetime 2.0 and the cost containment strategies we have executed. Accordingly, we are confident in our ability to execute on our Lifetime 2.0 strategic plan and continue to deliver profitable growth.Second Quarter Financial Highlights:Consolidated net sales for the three months ended June 30, 2020 were 150.1 million, representing an increase of 7.6 million, or 5.3, as compared to net sales of 142.5 million for the corresponding period in 2019. In constant currency, which excludes the impact of foreign exchange fluctuations, consolidated net sales increased by 8.2 million, or 5.8, as compared to consolidated net sales in the corresponding period in 2019.Gross margin for the three months ended June 30, 2020 was 54.2 million, or 36.1, as compared to 44.0 million, or 30.9, for the corresponding period in 2019. Excluding an 8.5 million non-recurring, non-cash charge for the SKU rationalization initiative, gross margin would have been 52.5 million, or 36.8, in the 2019 period.Income from operations was 4.3 million, as compared to a loss from operations of 12.5 million for the corresponding period in 2019. Excluding an 8.5 million non-recurring, non-cash charge for the SKU rationalization initiative, loss from operations would have been 4.0 million, for the corresponding period in 2019. A table which reconciles this non-GAAP financial measure to income loss from operations, as reported, is included below.Net loss was 4.0 million, or 0.19 per diluted share, as compared to a net loss of 11.5 million, or 0.56 per diluted share, in the corresponding period in 2019.Adjusted net loss of 3.1 million, or 0.15 per diluted share, as compared to adjusted net loss, excluding the impact of SKU rationalization, of 4.5 million, or 0.22 per diluted share, in the corresponding period in 2019. A table which reconciles this non-GAAP financial measure to net loss, as reported, is included below.Six Months Financial Highlights:Consolidated net sales for the six months ended June 30, 2020 were 295.2 million, representing an increase of 2.7 million, or 0.9, as compared to net sales of 292.5 million for the corresponding period in 2019. In constant currency, a non-GAAP financial measure, which excludes the impact of foreign exchange fluctuations and was determined by applying 2020 average rates to 2019 local currency amounts, net sales increased by 3.8 million, or 1.3, as compared to consolidated net sales in the corresponding period in 2019.Gross margin for the six months ended June 30, 2020 was 107.1 million, or 36.3, as compared to 98.3 million, or 33.6, for the corresponding period in 2019.Loss from operations was 20.9 million in 2020 and 14.8 million for the corresponding period in 2019. Income from operations, excluding the impact of certain non-cash charges was 2.0 million compared to a loss from operations of 6.3 million in the corresponding period in 2019. A table which reconciles this non-GAAP financial measure to loss from operations, as reported, is included below.Net loss was 32.1 million, or 1.55 per diluted share, as compared to a net loss of 16.4 million, or 0.80 per diluted share, in the corresponding period in 2019. This includes a non-cash goodwill and intangible asset impairment charge of 20.1 million incurred in the first quarter of 2020.Adjusted net loss was 8.8 million, or 0.42 per diluted share in 2020 and 8.5 million, or 0.41 per diluted share in 2019. A table which reconciles this non-GAAP financial measure to net loss, as reported, is included below.Consolidated adjusted EBITDA, after giving effect to certain adjustments as permitted and defined under our debt agreements, was 69.3 million for the twelve months ended June 30, 2020. A table which reconciles this non-GAAP financial measure to net loss, as reported, is included below.OutlookAs a result of the uncertainty surrounding the COVID-19 pandemic, the Company is not providing outlook for the full fiscal year 2020. DividendOn August 4, 2020, the Board of Directors declared a quarterly dividend of 0.0425 per share payable on November 16, 2020, to shareholders of record on November 2, 2020.Conference CallThe Company has scheduled a conference call for Thursday, August 6, 2020 at 11:00 a.m. The dial-in number for the conference call is 866 610-1072 U.S. or 973 935-2840 International, Conference ID: 5281916.A live webcast of the conference call will be accessible through: those who cannot listen to the live broadcast, an audio replay of the webcast will be available.Non-GAAP Financial Measures This earnings release contains non-GAAP financial measures, including consolidated net sales in constant currency, income from operations excluding certain non-cash charges, adjusted net loss, adjusted diluted loss per common share, gross margin excluding non-recurring charges and consolidated adjusted EBITDA. A non-GAAP financial measure is a numerical measure of a companys historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income, balance sheets, or statements of cash flows of a company; or, includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. As required by SEC rules, the Company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures. These non-GAAP financial measures are provided because management of the Company uses these financial measures in evaluating the Companys on-going financial results and trends, and management believes that exclusion of certain items allows for more accurate comparison of the Companys operating performance by investors and analysts. Management uses these non-GAAP financial measures as indicators of business performance. These non-GAAP financial measures should be viewed as a supplement to, and not a substitute for, GAAP financial measures of performance.Forward-Looking Statements In this press release, the use of the words believe, could, expect, may, positioned, project, projected, should, will, would or similar expressions is intended to identify forward-looking statements. Such statements include all statements regarding the growth of the Company, our financial outlook, our ability to navigate the current environment and advance our strategy, our initiatives to create value, our efforts to mitigate geopolitical factors and tariffs, our efforts to stabilize our international business, our current and projected financial and operating performance, results, and profitability and all guidance related thereto, including forecasted exchange rates and effective tax rates, as well as our future plans and intentions regarding the Company and its consolidated subsidiaries. Such statements represent the Companys current judgments, estimates, and assumptions about possible future events. The Company believes these judgments, estimates, and assumptions are reasonable, but these statements are not guarantees of any events or financial or operational results, and actual results may differ materially due to a variety of important factors. Such factors might include, among others, the Companys ability to comply with the requirements of its credit agreements; the availability of funding under such credit agreements; the Companys ability to maintain adequate liquidity and financing sources and an appropriate level of debt; the possibility of impairments to the Companys goodwill; the possibility of impairments to the Companys intangible assets; changes in U.S. 