Lifetime Brands (LCUT) has reported 26.41 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $6.45 million, or $0.44 a share in the quarter, compared with $5.10 million, or $0.36 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $7.53 million, or $0.51 a share compared with $5.88 million or $0.41 a share, a year ago.
Revenue during the quarter grew 4.24 percent to $170.12 million from $163.20 million in the previous year period. Gross margin for the quarter contracted 62 basis points over the previous year period to 34.28 percent. Total expenses were 93.66 percent of quarterly revenues, down from 94.02 percent for the same period last year. This has led to an improvement of 36 basis points in operating margin to 6.34 percent.
Operating income for the quarter was $10.78 million, compared with $9.76 million in the previous year period.
Jeffrey Siegel, Lifetime’s chairman and chief executive officer, commented, "For the three months ended September 30, 2016, net income increased 26% over the three months ended September 30, 2015 and Lifetime achieved record revenue, record adjusted net income and record EBITDA, demonstrating the Company’s ability to deliver organic growth and solid financial results in the face of an uncertain economic climate in the United States and despite unfavorable exchange rate fluctuations that affected the results of our U.K. subsidiaries and our partner companies in Canada and Mexico.
Operating cash flow remains negativeLifetime Brands has spent $30.39 million cash to meet operating activities during the nine month period as against cash outgo of $11.43 million in the last year period. The company has spent $10.80 million cash to meet investing activities during the nine month period as against cash outgo of $4.19 million in the last year period.
Cash flow from financing activities was $40.11 million for the nine month period, up 130.81 percent or $22.73 million, when compared with the last year period.
Cash and cash equivalents stood at $5.83 million as on Sep. 30, 2016, down 7.13 percent or $0.45 million from $6.28 million on Sep. 30, 2015.
Working capital increases
Lifetime Brands has recorded an increase in the working capital over the last year. It stood at $206.23 million as at Sep. 30, 2016, up 5.59 percent or $10.91 million from $195.32 million on Sep. 30, 2015. Current ratio was at 2.85 as on Sep. 30, 2016, down from 2.88 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 93 days for the quarter from 165 days for the last year period. Days sales outstanding went up to 56 days for the quarter compared with 53 days for the same period last year.
Days inventory outstanding has decreased to 70 days for the quarter compared with 142 days for the previous year period. At the same time, days payable outstanding went up to 34 days for the quarter from 30 for the same period last year.
Debt comes down
Lifetime Brands has recorded a decline in total debt over the last one year. It stood at $140.62 million as on Sep. 30, 2016, down 10.03 percent or $15.67 million from $156.30 million on Sep. 30, 2015. Total debt was 30.05 percent of total assets as on Sep. 30, 2016, compared with 34.74 percent on Sep. 30, 2015. Debt to equity ratio was at 0.71 as on Sep. 30, 2016, down from 0.83 as on Sep. 30, 2015. Interest coverage ratio improved to 8.76 for the quarter from 6.71 for the same period last year.
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