UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of the earliest event reported) February 26, 2004 Lifetime Hoan Corporation (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation) 1-19254 11-2682486 (Commission File Number) (IRS Employer Identification No.) One Merrick Avenue, Westbury, New York 11590 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (516)683-6000 N/A (Former name or former address, if changed since last report) Item 7. Financial Statements and Exhibits c) Exhibits 99 - Press Release, dated February 26, 2004 Item 12. Results of Operation and Financial Condition On February 26, 2004, Lifetime Hoan Corporation ("the Company") issued a press release setting forth the Company's fourth-quarter and twelve-month 2003 earnings. A copy of the Company's press release is attached hereto as Exhibit 99 and hereby incorporated by reference. Signature Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Lifetime Hoan Corporation By: /s/ Robert McNally Robert McNally Vice President of Finance and Chief Financial Officer Date: February 26, 2004 EXHIBIT 99 LIFETIME HOAN REPORTS 31% INCREASE IN NET SALES AND 88% INCREASE IN EARNINGS PER SHARE WESTBURY, N.Y., February 26, 2004 -- LIFETIME HOAN CORPORATION (NASDAQ NM: LCUT), a leading marketer of housewares, today announced results for the fourth quarter and full year ended December 31, 2003. For the fourth quarter of 2003, net sales increased 31% to $62.1 million from $47.5 million in the same period of the prior year. Income from continuing operations increased 94% to $5.4 million from $2.8 million for the same period in 2002. Earnings per diluted share from continuing operations rose 88% to $0.49 per diluted share from $0.26 per diluted share in last year's fourth quarter. For the twelve months ended December 31, 2003, net sales totaled $160.4 million compared to $131.2 million in 2002. Income from continuing operations totaled $8.4 million, or $0.78 per diluted share, compared to $3.6 million, or $0.34 per diluted share, in 2002. Jeffrey Siegel, president and chief executive officer, commented, "Our fourth quarter performance capped a very successful year for Lifetime Hoan. Our KitchenAid(R) branded products, which include kitchen utensils, gadgets and bakeware, were an especially strong growth driver. As we expected, our S'mores Maker, introduced in mid-year, was an extremely popular gift item during the holiday season and, together with solid sales of our Cuisinart(R) cutlery, contributed to making this Lifetime's most successful fourth quarter ever. "In 2004, we will continue our winning strategy of using Lifetime's advanced design capabilities to develop exciting, high quality products for our portfolio of premium brands. Our KitchenAid line, which includes an exceptionally attractive and powerful assortment of utensils, gadgets and bakeware, will continue to be a key driver. In the second half of the year, we will begin rolling out kitchen cutlery, storage blocks, knife sharpeners and wood cutting boards under the KitchenAid brand name, which we expect to be just as well received as our original items. "During 2004, we will also expand our CasaModa(R) line, focused on the growing market for casual home entertainment. This will include the introduction of a number of variations on our original S'mores Maker. Equally important, we will focus on expanding the placement of all of our products during the coming year. This was an important element of our strategy in 2003, and we expect it to help drive Lifetime's results in 2004." In 2004, management estimates that Lifetime's net sales will total approximately $190 million to $200 million. Earnings per share are estimated to total approximately $0.95 to $1.10 for the year. As announced in 2002, Lifetime sold its 51% interest in the businesses of each of Prestige Italiana, Spa. and Prestige Haushaltswaren GmbH (together, the "Prestige Companies"). The loss from the Prestige Companies' operations for the fourth quarter of 2002 and the full year is reflected as discontinued operations on the Company's income statements. Lifetime Hoan has scheduled a conference call Thursday, February 26 at 11:00 a.m. Eastern time to discuss fourth-quarter-2003 results and additional matters. The dial-in number for the call is (706) 634-1218. A replay of the call will also be available through Tuesday, March 4, and can be accessed by dialing (706) 645-9291, conference ID #5325208. A live webcast of the call will be broadcast at the Company's web site, www.lifetime.hoan.com. For those who cannot listen to the live broadcast, an audio replay of the call will also be available on the site. Lifetime Hoan Corporation is a leading designer, marketer and distributor of household cutlery, kitchenware, cutting boards, pantryware and bakeware, marketing its products under various trade names including Farberware(R) and Hoffritz(R). Lifetime Hoan's KitchenAid branded products are designed, manufactured and marketed under a license with Whirlpool Corporation. The Company's Cuisinart branded products are designed, manufactured and marketed under a license with Cuisinart. Through the use of various brand names, Lifetime Hoan's products are distributed through almost every major retailer in the U.S. The information herein contains certain forward-looking statements including statements concerning the Company's future prospects. These statements involve risks and uncertainties, including risks relating to general economic conditions and risks relating to the Company's operations, such as the risk of loss of major customers and risks relating to changes in demand for the Company's products, as detailed from time to time in the Company's filings with the Securities and Exchange Commission. Tables to follow COMPANY CONTACT: INVESTOR RELATIONS: Robert McNally Harriet Fried Chief Financial Officer Lippert/Heilshorn & (516) 683-6000 Associates,Inc. (212) 838-3777 or hfried@lhai.com LIFETIME HOAN CORPORATION INCOME STATEMENT (in 000's, except per share data) Three Months Ended December 31, (Unaudited) 2003 2002 %Increase (Decrease) Net Sales $62,053 $47,515 30.6% Cost of Sales 36,936 27,945 32.2% Distribution Expenses 6,012 5,820 3.3% SG&A 9,935 8,728 13.8% Income from Operations 9,170 5,022 82.6% Interest Expense 243 316 (23.1%) Other (Income) (17) (19) (10.5%) Income Before Taxes 8,944 4,725 89.3% Tax Provision 3,536 1,936 82.6% Income from Continuing Operations 5,408 2,789 93.9% Loss from Discontinued Operations and Disposal - (277) Net Income $5,408 $2,512 115.3% Diluted Earnings Per Share from Continuing Operations $0.49 $0.26 88.5% Weighted Average Shares 11,036 10,561 Diluted Earnings Per Share from Net Income $0.49 $0.24 104.2% Weighted Average Shares 11,036 10,561 LIFETIME HOAN CORPORATION INCOME STATEMENT (in 000's, except per share data) Twelve Months Ended December 31, 2003 2002 %Increase (Decrease) Net Sales $160,355 $131,219 22.2% Cost of Sales 92,918 73,145 27.0% Distribution Expenses 20,115 21,363 (5.8%) SG&A 32,677 29,815 9.6% Income from Operations 14,645 6,896 112.4% Interest Expense 724 1,004 (27.9%) Other (Income) (68) (66) 3.0% Income Before Taxes 13,989 5,958 134.8% Tax Provision 5,574 2,407 131.6% Income from Continuing Operations 8,415 3,551 137.0% Loss from Discontinued Operations and Disposal - (1,306) Net Income $8,415 $2,245 274.8% Diluted Income Per Share from Continuing Operations $0.78 $0.34 129.4% Weighted Average Shares 10,754 10,541 Diluted Income (Loss) Per Share from Net Income $0.78 $0.21 271.4% Weighted Average Shares 10,754 10,541 LIFETIME HOAN CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) December 31, December 31, 2003 2002 ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,175 $ 62 Accounts receivable, net 31,977 19,143 Merchandise inventories 49,294 41,333 Prepaid expenses and other current assets 5,838 5,651 TOTAL CURRENT ASSETS 88,284 66,189 PROPERTY AND EQUIPMENT, net 20,563 20,850 INTANGIBLES, net 25,675 23,952 OTHER ASSETS 2,214 2,378 TOTAL ASSETS $ 136,736 $ 113,369 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Short-term borrowings $ 16,800 $ 14,200 Accounts payable and trade acceptances 8,405 2,720 Other current liabilities 21,769 15,889 TOTAL CURRENT LIABILITIES 46,974 32,809 DEFERRED RENT & OTHER LONG TERM LIABILITIES 1,593 468 DEFERRED INCOME TAX LIABILITIES 2,088 1,783 STOCKHOLDERS' EQUITY 86,081 78,309 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 136,736 $ 113,369