LCUT - Earnings call transcript Q1 2021

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Operator

Good morning, ladies and gentlemen, and welcome to Lifetime Brands' First Quarter 2021 Earnings Conference Call. At this time, I would like to inform all participants that their lines will be in listen-only mode. After the speakers’ remarks, there will be a question-and-answer period. [Operator instructions] I would now like to introduce your host for today's conference, Andrew Squire. Mr. begin. may you Squire,

Andrew Squire

Winoker, morning, XXXX you today earnings Kay, and are Good Brands' from joining first Rob Larry Officer; Executive quarter call. Chief Financial and you. Officer. for thank Lifetime management Chief Thank With us

I'd begin by statements to you forward-looking that to we And intended established to relate Harbor for the this Before the of like may these the are remarks company. morning remind qualify Safe call, the contain the Reform performance are factors press results that Litigation Securities our future are Private guarantees performance liability that not Exchange the in with others highlighted and our statements Securities contained Commission. such Any Act. filings in influence of today's and future and are our release statements could

today's in such financial this non-GAAP Securities release is these the measures G financial morning of non-GAAP financial calculated of in in the Please the to to like promulgated introduction, by remarks call reconciliation GAAP. Included go the contain release and over turn within Rob measures Commission. also comparable With meaning Rob. I'd Regulation a Kay. that measures accordance ahead, Exchange press and to with Our

Rob Kay

$X.X for Good growth of Lifetime quarter approximately XX%, joining Thank thank and XXXX million. XXX%, net Brands' line growth top million, to of or in year-over-year EBITDA with is of today and morning, an Lifetime you. off XXXX to discuss everyone, Brands in us results. you $XX.X first financial excellent adjusted income start driving

our not that unprecedented strong contributed many Lifetime achieved Lifetime's foundation incredible XXXX. company we've the our on U.S. adjusted focused control, continues established and we has a remained channels our and team with lead of our making overall build delivered growth results outperform start in on our once validates line quarter leaner our growth, products. be the the strong which in Strategy. results, we has contributed X.X across I'll work the And remarkable cost proud core sell demonstrate again disciplined the strong showed to Lifetime consistently organization to which while top have our to more XX% we business. and this strengths we've through continues to which Our I which could also ability in business, categories EBITDA

In fact, growth. seventh year-over-year quarter it now has delivered its of consecutive

are add to driven top cost demand, our the of categories, strong consolidation combination our our focus at new cutlery on as our grow of efficiencies The benefits robust growth, We contributed and our our quarter. markets. momentum across results Building benefiting XXXX, better ability we the extended we and adjacent product share and which line customers. and expand strong leading for brands, majority line, into largest on all of continue of products, international to and categories, recently into such brands from to our our market KitchenAid gain a disciplined the consumer offerings, into infrastructure, from by vendor utilization

inventory increased first product Additionally, our customers consumers. to levels, strategy availability and in benefited to in the our from invest to we quarter assure

to see continue math, We grocery. increasingly, our channels, most club, off-price, across including and solid performance of

given categories to have into product right also adjacent customer We our and a where relationships. expansion believe capabilities, from we benefited win design we infrastructure,

to durable contributed drive consumable other pet, in these we we the in barbecue, growth New and moving and forward. believe our and strong launches will performance, storage, product organization categories categories and

note a to the our XX.X% in the up comparable accounted omni-channel to to quarter our the the to approximately We as quarter, e-commerce channels been Contributing revenues, have quarter and of total faster growth first XX% grown grew is to in are which for continuing the brick-and-mortar ability in prior grew XX% execute during approximately compared shipments, also worthwhile a our ago. grown from XX% our e-commerce have which pace approximately quarter. to revenue significantly, we grow year while at compared our that year. revenues drop has It up

about of group. development Year acquisition offerings opportunities this excited enable the Millennials Day, tabletop our by presented enhance our focused Gen online high-value are Z stage and We to strategic a us consumers, platform which on for & age general

in our expect As this mentioned believe on core and our excess by XXXX. other transaction in category accretive enable We new to to growth and levels continue Lifetime business. of that underlying to markets last offerings the within call, XXXX we will brand achieve be our

profitability We saw international store our of benefits first in our Despite and in strategy. of closures throughout grew market reorganization continue Turning to international our significant improvement operations we XX.X% international revenues the year-over-year business. as business Europe, to quarter. the reap the market

reduction from is Importantly, structure our the EBITDA this for in the to reduction from quarter. Europe LTB year-over-year improvement million LTB shipments in a distribution our of the Europe in impact year-over-year. a be of our warehouses expense to evident of XX.X%, percentage our Contributing to transformation cost strategy the can seen for those UK in improvement, $X.X as XX%

our earlier, I starting our revenues full to product KitchenAid, mentioned are see from rollout, bakeware are meaningful and kitchen also making As progress rollout. and international tools, we with

with percentages of this channel. negative had contribution benefits a improved the margin. can low meaningful potential be a progress reduction international long-term revenue planned directly or reduction eliminated a Dampening we margin this planned brands We near- The margin to and from quarter we we our in and are generated revenues the growth, launched from e-commerce international with seen that which have and also seen as Asia. already dollars consumers pleased amount in SKUs in with have first corresponding overall results

opportunities XXXX, our growth international for long-term we investments with as We remain end, commercial continue year. confident growth business that markets long-term see initiative, second quarter, Mikasa and the we UK and increased our during sales and reopen and uplift gaining us our key capabilities investment continued the the In Lifetime. meaningful our Mikasa distributors another efforts our bolster ramp-up on provide with from to European to this which and further have Cutting expect other brought foodservice in the will in we this sales on this To to traction customers. we talent Hospitality, have massive opportunity. significant execute pandemic, to successfully business, help are believe we in Hospitality

in be up restaurants, to significant to hotels, to hospitality eventually for and continue look our gain expect beyond. optimistic the in our foodservice recovery and the and providing and forward complement return updates potential the this normal to operation. I COVID We about leading further back-of-the-house to and to initiative open in as smallwares position continue XXXX share category industry front-of-the-house

on call, As due ocean headwinds expecting challenges mentioned domestic we to last inbound outbound quarter's are shipping related and freight availability. freight to

we these in slight shipping in to ensure availability headwinds headwinds, cancellations. the these investing of result actively part continued a working delays provided by our by flexibility to are Thanks we experienced and inventory sheet, mitigate our As of balance to products.

our We are also designed challenges. on these several which mitigate supply involving chain working strategies to are

we margin these these which – to In are developed are Again, seeing which our the in our shortly. inputs, as freight the benefits do will we addition challenges, percentage. offset And will in factors until financial cost strategies we continue sold. cost a implementing of to various guidance, inflation slight mitigation we our discuss I actively reduction believe we these inputs of are We which offset believe anticipate considered greater therefore, increases. lag realized. to These temporary XXXX impact anticipate strategies gross will the were short-term detail goods in

of our we year adjacent will be in growth Year a and ahead, & enhance incremental margin core strengthen to This win, our business. Day, in provide to designed as our expanding right brands capabilities assets. like of Looking base business, categories foodservice a focus to have to investment includes strategic and where initiatives continuing our XXXX high potential on digital and growth and supporting growth high we to

strength to our growth continue balance sheet these on we We as will capitalize opportunities long-term drive of the profitability. to and leverage

significant meaningful bottom initiatives, be expect While top line. to growth we these in to our and investments increase support see a XXXX growth achieve still in to able will

to months. carefully factors and evaluating of brings to morning. our strong should COVID result this of continue brands, All caused XXXX. impact categories, well markets key very discussed supply lockdowns of irregularities financial China, our previous factors, Despite a we by and in after as will these a these issued We've share gain all lead and as our India forecast continue Europe. momentum this guidance, which in me Canada in on challenges That market confident and positive building costs, meet setting Factors strong and among outlook. this we COVID as we guidance, categories continued market the considered on gains international past chains and over challenges, that trends. grow XX capitalize inflationary have we are we our share, across on in made include our to as labor to that impact, secular are timing well-positioned as others, products, we well as incredibly the built factors included COVID

inflationary also near-term impact Our sold considers guidance challenges of costs. fray I which and cost mentioned the goods earlier,

noticeable what the we experiencing Finally, labor with have for a have also considered consistent we domestic in increase been past costs, months. six

XXXX diluted income more million. and to of press million $XXX EBITDA achieve in our million $X.XX detail adjusted million, outlook sales $X.XX to for net per of of provided between release, is in $XX.X $XXX As our and to share $XX.X

benefit grow plus supplemented invest have and double long-term we in. headwinds, one an growth as to Based and in digits over we home achieving to entertainment, growth those we and that and expect now even XXXX, increase in building will revising entertaining expected from by I'll XXXX. strong position disclosed see, supplemented in vaccinations return XX% turn can EBITDA upon company's building call which we in the Further, social Larry. continued investments share continue U.S. driven grow to Driving that, financial that increases you be by adjusted home our As by upon market previously with homeownership opportunities in be expect growth the macroeconomic growth With to we are the to our success objectives in is to a accelerated achieved, gatherings, to our upward. objectives, able planned the home certain

Larry Winoker

Rob. Thanks,

period our XXXX an in measure was for million for to The loss $XXX.X operations $X.X million or is reported morning, quarter. and per have a share quarter the net million, up Adjusted and growth to EBITDA, by first our from addition and trailing market notably ended or in introductions. million share $XX.X million million led a cutlery, would million billion this reconciles in debt in category, addition the XXXX meals flatware million margin and a a for growth e-commerce constant was the $X.XX million million their bakeware The period. release a was table the compared U.S. to XXXX, we sales of the diluted $X.X and billion over sales brands for to for a $XXX.X $X.XX lines, sales. anniversary to increase gross for for home compared income and $XX.X of the net higher from in ability loss retailers was a for As that XXXX adjusted decor, in a keep $XXX.X operations on results in and bad XXXX quarter, GAAP that Tableware increase goodwill release. quarter Net reported consumers a Segment's warehouse in our March market XX%. product International for XX from The months $XX.X million the basis. million of to by reconciled XX, came at reported The and increased net continued increase solutions, in program. as retailers $XX.X levels charge basis, of included drop-ship non-GAAP gains was measure. across to increase came the reflect ended share per for compared in Despite growth kitchenware this most home, preparing Category million from XXXX which to XXXX. category products, loss sales to to was morning's a club decline, new XX.X%, charge XXXX. of to for excluding quarter up was per $XX.X brick-and-mortar reflects non-GAAP the share been XXXX gains $XX.X increased or $X.X all XXXX segment offset dollars quarter million. by recovery offer dinnerware. of results $X.X first $X.X Income impairment XXXX per and $X.X million in sales retailers. pre-pandemic the million $XX ability Gross XXXX gadgets, the Market reserves. this the e-commerce net in XXXX dollars. a stock, Adjusted capability million kitchen XX, appeal in share percent to loss, share to segment $X.XX in of U.S. product margin the $X.X as and products omni-channel diluted measurement This diluted represents of $X.XX the the recorded share sales continuation tools products. year XX.X% on were products In December $XX.X were XXXX. home for in were increased income quarter the diluted decline the more first products versus or hydration $X.X which

margin negotiation quarter XX.X% certain was in freight commodity with supply due duty incurred and also reflecting was margin costs increases the product costs freight XX.X% will mix chain gross For our products. higher also last the ocean shipping due in-bound primarily to suppliers by on U.S. freight shortage higher by increases selling costs benefit higher containers a will carriers. to and anticipate the period of other The opportunities was refund the gross product percent mitigating a persist, decrease affected constraints. experience suppliers. in The we costs segment, XXXX and year. Gross XXXX these and exclusion margin versus worldwide We our through of price and inflation in

the to XXXX inventory. recorded slower-moving we more strong demand, order charge free $X a move approximately quarter, accommodate million In product to warehouse addition, in to capacity in quickly up

sales negatively international, margin XXXX improvement for and was sales XX.X% The by compared to quarter gross impacted XX.X% slow-moving expense allowance attributable to For XXXX. in was Distribution being higher of for XX.X% quarter XXXX reserves XXXX in in XXXX. X.X% is period the versus inventory.

business respectively. of a the the ship volumes COVID-XX improvements. sales was continued the – XXXX U.S. leverage major in an in For XXXX of result fixed percentage warehouses at increase This labor its volume expenses which The in was the more as labor-intensive costs and sales higher and quarters, and address nature. increase were for segment X.X% piece distribution customers’ by needs, to efficiency is an one-time from rates X.X% the and pick of benefit improvement continuing on partially expenses, hourly and offset some

expenses $XX.X experienced for the associated expenses quarter, its of quarter, warehouse. in million up Selling, the quarter. primarily a XX% in administrative XXXX international UK of segment, For the percent quarters, setting as respectively. moving XXXX or XX.X% excluding to the distribution U.S. labor in and million XXXX versus expenses XXXX, was operations and improvement for a as relocation $XX.X from for prior-period sales new in million its general, an with XXXX. $XX.X improvement costs were $XX.X shipped million efficiencies segment were warehouses, UK versus the attributable in and efficiencies and the The the XXXX XXXX

year. lower lowest net expenses expense XX.X% expenses, due offset was facility debt SG&A primarily bad estimates an selling incentive declined of last by compensation. decrease percentage to from a expense was XX.X% and The to increase partially and As for sales, in which

the for In designed expenses higher national year. quarter, compared XXXX versus incentive expenses a million headcount. are million compensation. due and business debt expense, lower category to million plan to was XXXX were front-of-the-house the encouraging Unallocated $X addition, client quarter. driven The the we in the lower SG&A segment reduction in investments in in Day also investments for increase lower $X.X last and & the growth business. beginning reflects the Year $X.X incubation are other grow XXXX and employee were our by selling, $X.X hospitality for to corporate quarter, The estimates million bad expenses categories

reflects versus the period quarter expense, hedge rate period, period. And declines Looking at loss of period in swaps, it a loss XXXX mark-to-market of which $X.X $X during lower reflected current million. was that interest a mark-to-market company's of a XXXX, interest rates $XXX,XXX interest prior $X.X debt to the in Prior was outstanding. non-designated result due million which gain in to versus relates as significant million the

For XX.X%. statutory local of tax income federal was tax rate than The quarter goodwill taxes, from of taxes, statutory The to losses recognized. impact no XX.X%. the federal the benefit the higher portion and impairment rate income and foreign primarily non-deductible was state for to is which the primarily was XXXX the rate for charge. XXXX due difference This rate due rate

liquidity, debt and sheet balance liquidity facility was million debt-to-EBITDA plus X.X March credit includes Net under $XXX.X Our ratio $XXX.X availability $XX.X net and million. get At times, our of which to continue cash, stronger. million. XX, was was

of effective our the common and share Operator, pound questions. sterling-to-U.S. per were tax and of open to XX.X% range million XXXX to $XX.X from an of to $XX.X This a the of in $XX.X from XXXX increase discussed XXXX, in to the are guidance adjusted operations from we release, XX%. comments. XXXX forecast $XXX.X XX.X% rate range an from year an of based $XX is on in income guidance to XX.X%. $XX.X as and increase As Adjusted $XX.X to of X.XX calculated a range on million of please a $XXX $XX in million of million income for in of rate sales $XX for full a issuing concludes million a $XX.X million an X.X% Net in on XXXX in net million income to prepared of XX.X% of million XXXX, to line million follows. range based to to XXXX to income XX.X%. in financial an dollar $XXX Adjusted million XXXX, increase XX.X%, exchange XXXX, increase in to million diluted XX.X%. income EBITDA This million of net

Operator

instructions] question first and Sidoti [Operator line Company. Lebiedzinski, the of comes Your Anthony from

Anthony Lebiedzinski

a morning. to Good Certainly XXXX. very start impressive

at distribution XX% So should more how the guidance in the do the growth the in I off as think we think of kind Or a – terms in seasonality revenue us have gains for difficult we about coming balance increase, comparisons look some how about you revenue the year, the obviously should understand back of of half. quarterly help know the of expectation the balance and year for we for year. the this the just maybe for of of

Rob Kay

thanks hi, for Yes. and Anthony, remarks. your

In terms but which the have half continued side, we're a demand percentages, have should on unknowns, Europe, being for are year up opened of revenue growth our of your order seeing business. products the strong positive there European-based question, the will stronger definitely first in demand flow on but in now and restrictions impact retailers and our

be that So should positive.

side, definitely, comps would half growth and the growth demand see percentages year. the in year, be we'll first of throughout on So the I stronger the the think but the easier

Anthony Lebiedzinski

that. for Thanks Great. Okay.

mentioned you came of some from in growth that first the the So revenue quarter. new in products

that can wondering there – way new how first from Just was quarter products? much any came revenue of quantify is the guys you

Rob Kay

We that don't track manner. don't that because look we have statistics in

year. and sold That opportunities, that KitchenAid, will we're and expanding cannibalizing plus-one different doors launching in the KitchenAid and that's about So different in we we're this sometimes For what just and year, the But and – new cutlery it we that opportunity, channels different a we're retailers right? selling throughout product throughout now ramp I'd up talking are so avenues or year. mentioned the new old example We but product. is always products, cutlery. started be could introducing replacing never

that that the that we throughout we Similarly, continue international, gain we on which turned Year see So starting roll and momentum Day, we'll to & sold year. to momentum. that where brand, out, talked yet. will about, haven't never we're in increasing

at pure that no from growth seeing will that start and So at point, quarter. launch the seeing on new the also we'll start some start turn opportunity. those and no revenues, We'll QX Walmart, this where meaningful expense a of second later than hopefully numbers in new we seeing brand from revenues

Anthony Lebiedzinski

Thanks. And last me. right. All Okay. for then question

increased should models increases? how So spending for timing us timing in as just to far increase think for of the we the you give year, If you the could the our rest that about a planned we refine of expense sense as the these as kind the as year? of investment of the

Rob Kay

very There's much. buckets. Yes. not One is three CapEx,

some talk So sort investing is we're there capital be it, a some soon it's but that in opportunity in but to because software-oriented. capital there, nothing there greenfield it of and Too about meaningful. requiring will is

in the depending two spend G&A So money. margin, upon how buckets are that in the we see you'll and

Some we've already experience to started of QX. in it

progress matter were started we've ramping seeing making in up of talked the investment As about, fact, opportunities. we XXXX, the we a those

our on Some positions just starting digital is new of that digital, We've QX. invested in business. that for filling expanding in in

kind the we're at the and of from So through continue it investment than these the continuing see, steady-state quarters you But be will business to ramp funding to two first that more as and grow opportunities basis. time. same

Anthony Lebiedzinski

Got it.

Okay.

So for and be the far impact? XQ G&A that margin XQ will as and as

Rob Kay

Yes.

Anthony Lebiedzinski

Thank right. and All luck. Okay. you of best

Rob Kay

We're to in spending not stop going QX.

Anthony Lebiedzinski

Right.

best right. of again and you Okay. Well, All luck. thank

Rob Kay

Thank you, Anthony.

Operator

next D.A. of Your Bolton-Weiser from the comes with Linda question Davidson. line

Linda Bolton-Weiser

morning. Good Hi.

So little in gross I quarter, a it margin although fair just side the the amount quite your wondering was strong. about was international more because bit a down was

U.S. year going hard of there last you that the XXXX I things we're benefit mentioned comparison refund. guess you quarters refunds any type of prior on Can Are where couple duty remind got So to side other the duty us? year? have where in a of in you

Larry Winoker

No.

quarter first out. stood The

Rob Kay

put back sort There's terms new year-over-year lot still anyway, but the quarter. quarter. and But the and going in the off. to in on, of opportunity taken put taken tariff there's much cloudiness Unfortunately, and as take-offs. that always right? been first for not regime that of That's on convoluted opportunities, the there's after put they us was and created the gave we're us the it. of get refund in I and administration, created duty is a Yes. fluctuation mean, some which is many duties that and a there opportunity very the off And were so were on first fluctuation,

sold about, we to $X inputs, talked to space. could and The well. about opportunity at margins times, replace with taking other having have as as lower really And margin charge-off. the warehouse Business at is going that but made margin worry We a stuff. to took million peak higher opposed we we third-party monetize

first up down just And were first we XX% But we more of about, e-commerce. a an monetize in margin full channel, business the also it we growing, allocations. quarter, quarter-over-quarter, had freeing We'll been in had replace which sold impact. see wrote can much the that, And that we we you including that So in in the brick-and-mortar, we've inventory again, talked to from weighted will heavily club look, margin low – would also so at that. and and growth we have at quarter. lot growth get margin a the monetize the impact we had hit

Linda Bolton-Weiser

XX% end I guiding my Okay. operating here profit, rate. the range, growth the adjusted real And And quick. high I'm operating you're range, at mean, XXXX, got guidance doing profit an high then the end for the of XX%. at of just in terms to math sales of you've the for

So pressures margin. – you've that your talked well, that so get you've then yet, affect does margin that these gross feeling in that some And got SG&A cost a investment I there's about, may and imply expansion.

to just So an I'm of like this be up trying year-over-year? Is anomaly? expansion first the kind actually out figure just going kind margin quarter the where was margin is And coming to of gross from?

Rob Kay

But So would talk just what be I think not operating I quoted and there like. that, can margin, lot address of headwinds. that, gross we I'll you'd you did further if So – correct? are a margin,

of experienced a while. been are headwinds. we've There Some a lot for

felt margin. aren't the we infrastructure. buckets there's And utilization offering these We factored But roll confident and a to continue lot better the throughout people income on continue do Some also our operating And statement in of company's to guidance them. take through these headwinds changes increases to multiple year, of so. which the different enough that. of we

XXXX we've at the achieved with at more So margin if I and and time. achieve, you same than achieve achieved growth we continue Did that growth and to to fund look operating articulate can all our now that continue in we increase the that Linda? okay, the

Linda Bolton-Weiser

going Yes. I trying what to I there's underlying pretty think leverage structure is say – to the you're of projecting you're because get probably growth. mean, good you're cost revenue

I'm margin if first one just that's because gross can for I'm of a for do was the little kind guess here. much But year, gross again, quarter, expand down a I you the of there's trying these so then just factors concerned the about the inflationary think margin and mean, in the So headwinds. I that? to sense all have

Rob Kay

we've of reduces goods that that year. some absolute inputs are are Well, working Yes. year, parts. supply of there actually see mitigating of we've working this right? mitigating we've moving anticipate geography, thing moved So cost up, various But through basis, the will the One there's of be impacts also And course, that to already on we'll then, been in our lot our terms of price already experiencing a which some do is been one of and of margin. sold we margins, throughout out an chain, having the also gross actions. the impacts get increases as

we're if flatware look be in our from will So shipping we're year. you business, that the metals from of of first particularly year the goods tariff as half in our the the half same or where some the shipping second

have margins. So the of elimination the paying on impact positive a tariffs

we in of the able in in directions, to tremendous all today complicated guidance basically very year. to So which what amounts with environment be a for saying inputs I'm factored is we've sit give you

Linda Bolton-Weiser

quarter. Can you think Walmart on line impression be brand new might I where that might it be what the this a be give more And to you I you partnership it the generating what some regard revenue, brand. said with specifics And was under us you at think a I Have Okay. announced license-type said is? would is? second exactly it

Rob Kay

Yes.

So brand. a licensed is it

second that store. Next but were slightly to because were it planning it obligation we time, do licensed just last had realized we realized specifics. we this in get on with the more that we didn't our an give done time agreement-wise And late. you we'll call, We at too

But It launch at is talk is time. Walmart. celebrity we'll exclusively it about So brand a on that it schedule.

Linda Bolton-Weiser

Okay. Great. that And Or business? just then mean, that. plan your your is plan interested to tabletop going be for that brands this I little kind intent here to what business is of for I'm you online through your is sell would other kind website? bought sales. what your like in of be

Rob Kay

Yes. That's good a question.

at – the viewed look have as you has if out it's younger Day, product spot venture we everything of groups. great complementary that fit we're doing. they because our we splash back. before our Year a that with So tremendous age that view we're particularly And & – run offering, sweet money and see we underpenetrated our a dinnerware that's in

selling & online. we're the to consumer its unit going it as to own So direct branded keep business Year Day product

Linda Bolton-Weiser

Okay.

while. So keep separate it on of you'll kind own just a its for running

Rob Kay

run San was It's and the President of we Francisco for Duryea, Kathryn it by Yes. business now as Founder being it. who's unit of the bought us before she's the out

Now we're integrating it in operationally.

brand, perspective, but of lot a think of and benefits from has that perspective, a a product potential. which digital the its sales get into from will be we'll own it native So lot greater marketing we operational,

Linda Bolton-Weiser

million the or sales – $XX over annual like $XX million? it is Are under

Rob Kay

will zero, we quickly that so on. but right? No. we And up ramp today It's sales turn So should XX%. of out base under loyal it's customer an funding, are once incubated so it has is it we back it, bound a its it shut relaunch it – down, again,

Linda Bolton-Weiser

then about And just Okay. in M&A. I'm your activity finally, wondering

Or prices do has are able look what's companies have your kind Are saying to made of still activity been that the there? at hard things you activity Some things. reasonable? SPAC to it

Rob Kay

Yes.

And in – and money opportunities opportunities of availability been looking lot if spend back we So very active, we're have generating very our looked better of have a your a there extraordinary. we're couple sheet, see But we at cash lot. on are it. particularly been getting time the question, disciplined, and a businesses we we're and valuations at, we've buying on are But internal balance that flow. that positively yes, to

or, at think, multiple are I have multiple. trading should XX a companies seeing trading traded that we're an historically So be at should times eight that times

seen have we that level. anything valuation that is meriting therefore, not So, we've pursued that

no quite to and our We continue execute. we're quite that opportunities we doing attractive. in rush the will we confident internal But feel you've look seen are numbers well, we're and

Linda Bolton-Weiser

Great.

CapEx Finally, bit for little extra do have you year mean, with of a the I spending, a for XXXX? guidance number

Larry Winoker

It's approximately $X million.

Linda Bolton-Weiser

Okay.

That's for go me. Okay. it ahead. Yes,

Rob Kay

where just even of to Larry But and are also we're capital. asset-light automation up to little what ramping view on then while said, spending as seen even our we're to more we're much ARPC, our And us in now model up, up rates just such that it's bit certain an not efficient. that we cash ramping a further and labor be in that you've is right, still levels, ramp for potential Yes.

Linda Bolton-Weiser

Right.

you. Good luck Okay. Thank with everything.

Rob Kay

Thanks, Linda.

Operator

At this are questions. there no time, further

Rob Kay

you that In Great. your and Lifetime on in to report and to look in future. case, attendance call, this appreciate the we Brands to continuing we forward everyone's interest

Operator

conference. today’s concludes This

disconnect. now may You

Lifetime Brands (LCUT) 9 May 212021 Q1 Earnings call transcript