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Investor Presentaiton

Adjusted Net Income (Loss) — U.S. GAAP Reconciliation - Adjusted net income (loss) and adjusted diluted income (loss) per common share (in millions, except per share amounts): Three Months Ended September 30, 2020 $13.9 2019 $(13.5) Nine Months Ended September 30, 2020 $(18.2) Net income (loss) as Reported Adjustments: Acquisition and divestment related expenses Restructuring expenses Integration charges Warehouse relocation Mark to market loss (gain) on interest rate derivatives Goodwill and other impairments SKU Rationalization Foreign currency translation loss reclassified from Accumulated Other Comprehensive Loss Income tax effect on adjustments Adjusted net income (loss) (1) Adjusted diluted income (loss) per common share (1) (2) 2019 $(29.9) 0.1 - 0.2 0.2 0.3 0.3 1.1 0.2 - 1.1 - 0.9 1.1 1.1 (0.1) (0.4) 2.3 (0.7) 9.7 20.1 9.7 8.5 0.2 (0.3) (0.9) $13.9 $0.65 $(3.1) $5.1 (2.8) $(11.7) $(0.15) $0.24 $(0.57) (1) Adjusted net income (loss) and adjusted diluted income (loss) per common share represent non-GAAP financial measures. These non-GAAP measures are provided because management of the Company uses these financial measures in evaluating the Company's on-going financial results and trends. Management uses this non-GAAP information as an indicator of business performance. (2) Adjusted diluted income per common share is calculated based on diluted weighted-average shares outstanding of 21.3 and 20.4 for the three month period ended September 30, 2020 and 2019, respectively, and 21.0 and 20.5 for the nine month period ended September 30, 2020 and 2019, respectively. The diluted weighted-average shares outstanding for the three and nine month period ended September 30, 2020 include the effect of dilutive securities of 0.4 and 0.2 shares, respectively. LifetimeBrands 42
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