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Lifetime Brands to close 30 outlet stores
04 Dec '07
4 min read
We are confident that our remaining stores and our direct response businesses do have that potential. We will, of course, continue to monitor our on-going store base closely and will open and/or close stores in the ordinary course as circumstances warrant.”
Separately, Lifetime confirmed that the previously announced sale of its Westbury, N.Y. office building closed on November 30, 2007. The Company applied the net proceeds of approximately $8.8 million from the sale to pay down borrowings under its revolving credit facility. The pre-tax gain on the sale of approximately $3.7 million is equal to net income of $0.15 per diluted share.
Mr. Siegel said, “The sale of our former Merrick Avenue building will reduce our expenses in 2008 as we will no longer be paying interest and operating costs on a facility that we vacated after moving to our new offices in January 2007.”
In addition, Lifetime will open a new West Coast distribution center in Fontana, Ca. When fully operational in early 2008, the new 753,000 square foot facility will replace a former Syratech Corporation warehouse in Mira Loma, Ca. and another distribution center, also located in Mira Loma, operated by a third-party logistics provider.
Mr. Siegel stated, “When we acquired the businesses of Excel, Salton at Home and Syratech, each operated its own warehouse. Earlier this year, we consolidated our operations into two facilities, and we are now completing the process by further consolidating our West Coast distribution into a single, modern facility.
After eliminating start-up expenses and duplicate rent through June 2008, we expect this consolidation to result in annual savings of approximately $1.0 million on a pre-tax basis.”
The Company also announced that its Board of Directors had doubled the size of the Company's stock repurchase authorization to $40 million from $20 million.
Mr. Siegel noted, “Our Board unanimously agreed to increase the size of our stock repurchase program. This underscores our belief that Lifetime is in a strong position to achieve its goals for aggressive growth and increased profitability in 2008 and beyond.”
As of November 30, 2007, Lifetime had repurchased approximately 1,363,000 shares of common stock on the open market for a total purchase price of approximately $22.7 million under the share buyback program the Company announced in August 2007.
Separately, Lifetime confirmed that the previously announced sale of its Westbury, N.Y. office building closed on November 30, 2007. The Company applied the net proceeds of approximately $8.8 million from the sale to pay down borrowings under its revolving credit facility. The pre-tax gain on the sale of approximately $3.7 million is equal to net income of $0.15 per diluted share.
Mr. Siegel said, “The sale of our former Merrick Avenue building will reduce our expenses in 2008 as we will no longer be paying interest and operating costs on a facility that we vacated after moving to our new offices in January 2007.”
In addition, Lifetime will open a new West Coast distribution center in Fontana, Ca. When fully operational in early 2008, the new 753,000 square foot facility will replace a former Syratech Corporation warehouse in Mira Loma, Ca. and another distribution center, also located in Mira Loma, operated by a third-party logistics provider.
Mr. Siegel stated, “When we acquired the businesses of Excel, Salton at Home and Syratech, each operated its own warehouse. Earlier this year, we consolidated our operations into two facilities, and we are now completing the process by further consolidating our West Coast distribution into a single, modern facility.
After eliminating start-up expenses and duplicate rent through June 2008, we expect this consolidation to result in annual savings of approximately $1.0 million on a pre-tax basis.”
The Company also announced that its Board of Directors had doubled the size of the Company's stock repurchase authorization to $40 million from $20 million.
Mr. Siegel noted, “Our Board unanimously agreed to increase the size of our stock repurchase program. This underscores our belief that Lifetime is in a strong position to achieve its goals for aggressive growth and increased profitability in 2008 and beyond.”
As of November 30, 2007, Lifetime had repurchased approximately 1,363,000 shares of common stock on the open market for a total purchase price of approximately $22.7 million under the share buyback program the Company announced in August 2007.
Lifetime Brands Inc
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