Good day, ladies and gentlemen, and welcome to the Second Quarter 2017 Lifetime Brands' Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] I would like to turn the call over to Harriet Fried of LHA. Please go ahead.

Good morning, everyone, and thank you for joining Lifetime Brands' conference call. With us today from management are Jeff Siegel, Chairman and Chief Executive Officer; and Larry Winoker, Senior Vice President and Chief Financial Officer. Before we begin, I'll read the Safe Harbor statement under the Private Securities Litigation Reform Act of 1995. The statements that are about to be made in this conference call that are not historical facts are forward-looking statements and involve risks and uncertainties, including the Company's ability to comply with the requirements of its credit agreements, the availability of funding under those credit agreements, the Company's ability to maintain adequate liquidity and financing sources and an appropriate level of debt, changes in general economic conditions, which could affect customer payment practices or consumer spending, changes in demand for the Company's products, shortages of and price volatility for certain commodities, the effect of competition on the Company's markets, the impact of foreign exchange fluctuations and other risks detailed in Lifetime's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update these forward-looking statements. The Company's earnings release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the SEC. Included in this morning's release is a reconciliation of these non-GAAP financial measures to the comparable financial measures calculated in accordance with GAAP. With that introduction, I'd like to turn the call over to Mr. Siegel. Please go ahead, Jeff.

Thank you, Harriet. Good morning, everyone, and thank you for joining us today for an overview of Lifetime's second quarter results. Following a robust first quarter, consolidated net sales in the second quarter grew by 1.5% in constant currency or gross margin increased slightly to 36.5%. These numbers reflect the continuing impact of lower food traffic in stores and soft consumer spending, a traditional brick and mortar retailers somewhat offset by the rapid rise of business online at both pure-play online retailers, as well as the online efforts of traditional retailers. As I've often said, our business can be impacted on a quarterly basis by promotional activity at our customers. Year-to-date in constant dollars, our net sales are up approximately 3.3% and our gross margin rose 110 basis points. As we noted in our press release, the second quarter 2017 financial results included unrealized foreign currency loss of $1.5 million compared to a gain of $0.2 million in the 2016 quarter. These amounts represent mark-to-market adjustments on GDP versus U.S. dollar, forward currency contracts related to purchases of inventory. The adjustments will reverse as the forward contracts are settled in the ordinary course of business and, therefore, are not expected to have a permanent economic impact. We continue to benefit from the investments we made in the first class e-commerce team, one with proven experience and leveraging e-commerce strategies, product to add customer insight and operational tools. These investments have enabled to us to significantly grow our online business and marketplaces, an area that is very important for our future success on the global basis. Our continued implementation of Lifetime Next, our internal restructuring and transformation initiative is also helping us adapt to the rapidly evolving trends in retail. During the quarter, we saw further positive impacts from our strategic…

Thanks Jeff. As we reported this morning the net loss for the second quarter of 2017 was $2.1 million or $0.14 per diluted share as compared to a net loss of $1.2 million or $0.08 per diluted share in the 2016 period. Adjusted net loss for the quarter was $800,000 or $0.05 per diluted share as compared to adjusted net loss of $80,000 or a $0.01 per share last year. Table which reconciles with non-GAAP measure to reported results was included in this morning's release. Loss from operations was $3.1 million for the 2017 quarter compared to a loss of $300,000 last year's quarter. Consolidated adjusted EBTIDA and non-GAAP measure that is reconciled to our GAAP results in the release was $1.4 million for the current quarter versus $5.2 million last year. Consolidated adjusted EBITDA was $45.4 million for the 12 months ended June 30, 2017 versus $43.5 million from the same period in 2016. For our U.S. Wholesale segment net sales in the 2017 quarter increased $2 million or 2.2% to $94.8 million. Increases in kitchenware and Home Solutions were partially offset by a decline in tableware. As Jeff noted, the tableware decline was due to department store weakness as well as timing of certain customer programs. U.S. Wholesale segment gross margin increased 90 basis points to 36.5% in 2017 quarter. This increase reflects the change in customer and product mix in part from the timing of the certain customer programs. U.S. Wholesale distribution expressed as a percentage of sales shipped from our U.S. warehouses with 10.8% in 2017 quarter versus 10.3% last year. Increase reflects the effect of an increase in facility expenses, labor costs and higher prepaid rate shipments. U.S. Wholesale SG&A expenses were $21.6 million, which is 22.8% of net sales in the 2017 quarter, an…

Certainly. [Operator Instructions] And our first question comes from the line of Andrew Walker with Rangeley Capital. Your line is now open.

Hi guys, thanks for taking the question. The first one, if we kind of you know - is it a couple bolt-on acquisitions in the past year or so? If we ignored the bolt-on acquisitions what would be organic growth rate for the quarter and for the full year look like?

We look at that one of the challenges is that when we do some of the bolt-ons, we take some of those brands and we use those brands to replace some of our existing product brands. So it's little hard to really do an apples-to-apples comparison.

Yeah we go both directions on that. For instance, one of our major customers was using the Copco brand which is a brand we acquired. We changed the brand on that product, kept a placement, but changed the brand on the product to be a built which we felt would enhance the sales. So it's very difficult for us to give you a comparison on that.

Okay, okay. And then you guys talked about a little bit about what drove the SG&A up during the quarter, when we talk about the full year SG&A as a percentage of sales increasing, can you just talk about the major factors driving that up?

Well, if you familiar with our structure is there's a substantially fixed component SG&A, that's not a lot of what I would call brand marketing support, market development funds. So to the extent that sales let's say we're project at 3% when we spoke last quarter is now 1.5%, we don't get a comparable portion of the client in the SG&A run rate. If sales grew at 5% of course, it have the other impact, SG&A would fall. So it had to do with our SG&A structure. It also applies to distribution as well where it's substantially that two thirds of our expenses there are fixed.

And there's also, we have laid off some people and there's additional expenses there as well.

That's right and be some more layer in the year, some of it qualifies restructuring because we eliminate decision as part of a plan, but in some cases there are placements we just eliminating.

Okay, so when you talk about SG&A being up as a percentage of sales on the - for the full year, you're talking about GAAP SG&A, not kind of adjusted SG&A because you add back there is restructuring expenses in the adjusted numbers?

There are some severance expenses does not qualify restructuring and would just be reported in SG&A.

Okay, okay, maybe I'll follow up offline on that.

No we don't adjust for that.

Okay. And then the last one, can you walk through a little bit just the acquisition pipeline or is there anything in the works, what are you guys kind of looking at there?

There is a considerable pipeline to be honest with you and we're looking at a number of potential acquisitions. We can't comment on them now, but there is a considerable so I could say.

Okay, thanks so much guys, I'll hop back in the queue.

Welcome, thank you.

[Operator Instructions] And I'm showing no further questions. So with that I'd like to turn the call back over to Chairman and CEO Jeff Siegel for closing remarks.

Thank you again for joining us. We look forward to giving you an update on our many sales programs and operational initiatives after the third quarter. Bye.

Ladies and gentlemen thank you for participating in today's conference. This does conclude the program and you may all disconnect. Everyone have a wonderful day.