EL PASO, Texas, Jan. 6 /PRNewswire-FirstCall/ -- Helen of Troy Limited
(Nasdaq: HELE) a designer, developer and worldwide marketer of brand-name
personal care and household consumer products, today reported record sales and
net earnings for the third quarter and nine months ended November 30, 2004.
Sales in the third quarter increased 24 percent to a record $205,682,000
from sales of $165,386,000 for the third quarter of the prior year. Third
quarter record net earnings increased by 24 percent to $31,135,000, or $0.97
per diluted share from $25,062,000, or $0.78 per diluted share for the same
period a year earlier, including a $(0.03) per diluted share loss from the
discontinued operations of Tactica International, Inc. Income from continuing
operations increased by 20 percent to $31,135,000, or $0.97 per diluted share
from $25,933,000, or $0.81 per diluted share for the same period a year
earlier.
Nine months sales increased 25 percent to a record $453,932,000 from sales
of $361,957,000 in the previous year. Fiscal year-to-date net earnings
increased 22 percent to $64,466,000, or $1.98 per diluted share, versus
$53,004,000 or $1.71 per diluted share from the comparable period last fiscal
year, including a $(0.01) and $(0.07) per diluted share loss from the
discontinued operations of Tactica International, Inc. respectively. Income
from continuing operations increased 17 percent to $64,688,000, or $1.99 per
diluted share, versus $55,264,000 or $1.78 per diluted share in the comparable
period last fiscal year. Last year's nine months earnings included a one time
non-operating gain from litigation proceeds in the pre-tax amount of
$2,600,000 or $0.08 per diluted share.
Gerald Rubin, Chairman, Chief Executive Officer and President, commenting
on the results for the quarter and the first nine months of the fiscal year
stated, "I am extremely pleased with our excellent sales and earnings results
during the third quarter and first nine months of this fiscal year. Sales
remained strong this holiday selling season. This is the first quarter of our
37 year history in which sales have exceeded $200 million. Our overall
outstanding performance is driven by our ability to provide the consumer a
large variety of quality products, and we believe we are the market leader in
new product development and innovation. Sales leaders for the third quarter
included domestic and international retail personal care, household consumer
products, and grooming, skin and hair care products. This quarter marks 38 of
the past 43 quarters in which sales and earnings from continuing operations
exceeded the prior year results.
"Gross margins for the quarter increased 2.5 percentage points to 48
percent of sales from 45.5 percent of sales in the third quarter of last year.
Operating income increased $11.1 million or 35 percent to $42.8 million or
20.8 percent of sales, from $31.7 million or 19.2 percent of sales for the
previous year's third quarter. As of November 30, 2004, our balance sheet
continued to be strong with stockholders' equity of $407.3 million.
Stockholders' equity increased $68.5 million, or 20.2 percent from the
comparable period last year. Inventory at quarter end was $139.3 million
versus $113.7 million for the same period in the prior year, an increase of
22.5 percent. These inventory levels are consistent with our 24 percent sales
increase for the third quarter, and our 25 percent sales increase for the nine
month period.
"For the fourth quarter ending February 28, 2005, we currently expect
overall sales to be in the range of $136 million to $146 million, compared to
last year's fourth quarter sales of $112.9 million, or an increase of 20 to 29
percent. Earnings per share for the fourth quarter currently are expected to
be in the range of $0.58 to $0.63 per diluted share versus the prior year's
fourth quarter earnings from continuing operations of $0.50 per diluted share,
an increase of 16 to 26 percent. Sales are currently expected to be in the
range of $590 million to $600 million for the fiscal year ending February 28,
2005, with earnings per share from continuing operations anticipated to be in
the range of $2.57 to $2.62 per diluted share.
"We are currently forecasting sales for next fiscal year, beginning March
1, 2005, in the range of $645 to $660 million. We are also initiating next
fiscal year earnings per share guidance of $2.90 to $3.00 per diluted share."
Rubin concluded.
The Company will conduct a teleconference in conjunction with today's
release. The teleconference begins at 11 a.m. ET today, Thursday, January 6,
2005. Members of the news media, investors and the general public are invited
to access a live broadcast of the conference call via the Investor Relations
page of the Company's website at http://www.hotus.com. The event will be
archived and available for replay through February 28, 2005.
Helen of Troy Limited is a leading designer, producer and global marketer
of brand-name personal care and household consumer products. The Company's
personal care products include hair dryers, curling irons, hair setters,
women's shavers, brushes, combs, hair accessories, home hair clippers,
mirrors, foot baths, body massagers, paraffin baths, liquid hair styling
products, body powder and skin care products. The Company's household
products include consumer product tools in the kitchen, cleaning, barbecue,
barware, storage, organization, garden and automotive categories. The
Company's products are sold by mass merchandisers, drug chains, warehouse
clubs and grocery stores under licensed trade marks including Vidal
Sassoon(R), licensed from The Procter & Gamble Company, Revlon(R), licensed
from Revlon Consumer Products Corporation, Dr. Scholl's(R), licensed from
Schering-Plough HealthCare Products, Inc., Sunbeam(R), Health at Home(R) and
Health o meter(R) licensed from Sunbeam Products, Inc., Sea Breeze(R),
licensed from Shiseido Company Ltd., and Vitapointe(R), licensed from Sara Lee
Household and Body Care UK Limited. Helen of Troy's owned brands include
OXO(R), Brut(R), Vitalis(R), Final Net(R), Ammens(R), Condition 3-in-1(R),
Skin Milk(R), TimeBlock(R), Epil-Stop(R), Dazey(R), Caruso(R), Karina(R),
DCNL(TM), Nandi(TM), Isobel(TM) and WaveRage(R). The Company markets hair and
beauty care products under the Helen of Troy(R), Hot Tools(R), Hot Spa(R),
Salon Edition(R), Gallery Series(R), and Wigo(R) owned brands to the
professional beauty salon industry.
This press release contains certain forward-looking statements, which are
subject to change. The forward looking statements included in this press
release among others includes the statement regarding the projected sales and
earnings for the fourth fiscal quarter and the fiscal year ending February 28,
2005 and the fiscal year ending February 28, 2006. A number of risks or
uncertainties could cause actual results to differ materially from historical
or anticipated results. Generally, the words "anticipates", "believes",
"expects" and other similar words identify forward-looking statements. The
Company cautions readers not to place undue reliance on forward-looking
statements. The actual results may differ materially from those described in
any forward-looking statements. The Company intends its forward-looking
statements to speak only as of the time of such statements, and does not
undertake to update or revise them as more information becomes available.
Additional information concerning potential factors that could affect the
Company's financial results is included in the sections of the Company's Form
10-K for the year ended February 29, 2004 and the Form 10-Q for the quarters
ended May 31, August 31, and November 30, 2004 entitled "Forward-Looking
Information and Factors that May Effect Future Results."
HELEN OF TROY LIMITED Comparative Analysis (Unaudited)
(In thousands, except earnings per share data)
The Three Months Ended November 30,
2004 2003
Net sales $205,682 100.0% $165,386 100.0%
Cost of sales 107,031 52.0% 90,160 54.5%
Gross profit 98,651 48.0% 75,226 45.5%
Selling, general, and administrative
expense 55,814 27.1% 43,536 26.3%
Operating income 42,837 20.8% 31,690 19.2%
Other income (expense):
Interest expense (3,052) -1.5% (1,024) -0.6%
Other income, net (2,399) -1.2% 696 0.4%
Total other income (expense) (5,451) -2.7% (328) -0.2%
Earnings before income taxes 37,386 18.2% 31,362 19.0%
Income tax expense
Current 9,004 4.4% 3,217 1.9%
Deferred (2,753) -1.3% 2,212 1.3%
Income from continuing operations 31,135 15.1% 25,933 15.7%
Loss from discontinued segment's
operations, net of tax benefits
of $-0-, $569, $442 and $2,259 - 0.0% (871) -0.5%
Net earnings $31,135 15.1% $25,062 15.2%
Earnings per share:
Diluted
Continuing operations $0.97 $0.81
Discontinued operations $- $(0.03)
Total diluted earnings per share $0.97 $0.78
Weighted average common shares used in
computing net earnings per share
Diluted 32,198 31,975
The Nine Months Ended November 30,
2004 2003
Net sales $453,932 100.0% $361,957 100.0%
Cost of sales 238,128 52.5% 196,048 54.2%
Gross profit 215,804 47.5% 165,909 45.8%
Selling, general, and administrative
expense 128,800 28.4% 100,421 27.7%
Operating income 87,004 19.2% 65,488 18.1%
Other income (expense):
Interest expense (6,727) -1.5% (2,989) -0.8%
Other income, net (2,280) -0.5% 4,434 1.2%
Total other income (expense) (9,007) -2.0% 1,445 0.4%
Earnings before income taxes 77,997 17.2% 66,933 18.5%
Income tax expense
Current 16,586 3.7% 10,475 2.9%
Deferred (3,277) -0.7% 1,194 0.3%
Income from continuing operations 64,688 14.3% 55,264 15.3%
Loss from discontinued segment's
operations, net of tax benefits
of $-0-, $569, $442 and $2,259 (222) 0.0% (2,260) -0.6%
Net earnings $64,466 14.2% $53,004 14.6%
Earnings per share:
Diluted
Continuing operations $1.99 $1.78
Discontinued operations $(0.01) $(0.07)
Total diluted earnings per share $1.98 $1.71
Weighted average common shares used in
computing net earnings per share
Diluted 32,610 30,911
SELECTED CONSOLIDATED BALANCE SHEET INFORMATION (In thousands)
11/30/2004 11/30/2003
Cash $8,951 $9,495
Marketable securities, at market value 415 922
Accounts receivable 184,400 126,184
Inventory 139,279 113,657
Total current assets 350,381 260,648
Total assets 867,614 510,558
Total current liabilities 190,358 102,566
Total long-term liabilities 270,000 69,235
Stockholders' equity 407,256 338,757
SELECTED OTHER DATA (In thousands) Reconciliation of Non-GAAP Financial
Measure - EBITDA (Earnings Before Interest, Taxes, Depreciation and
Amortization) to Net Earnings:
Three Months Ended Nine Months Ended
November 30, November 30,
2004 2003 2004 2003
Net earnings from continuing
operations $31,135 $25,933 $64,688 $55,264
Interest income / Expense, net 3,015 734 6,285 1,950
Income tax expense 6,251 5,429 13,309 11,669
Depreciation and amortization 3,046 1,590 6,752 4,583
EBITDA (Earnings before interest,
taxes, depreciation and amortization)
excluding discontinued
operations $43,447 $33,686 $91,034 $73,466
This information may be considered non-GAAP Financial Information as
contemplated by SEC Regulation G, Rule 100. Accordingly, we are providing the
preceding table which reconciles these measures to their corresponding GAAP
based measures presented under our Comparative Analysis of Earnings, in the
accompanying press release.
Management believes the presentation of these non-GAAP financial measures,
in connection with the results of the fiscal quarter ended November 30, 2004,
provides useful information to investors regarding our results of operations
as this non-GAAP financial measures allow investors to better evaluate ongoing
business performance, and factors that influenced performance during the
period under report. Management also uses these non-GAAP measures internally
to monitor performance of the business. These non-GAAP financial measures
should be considered in addition to, and not as a substitute for financial
measures prepared in accordance with GAAP.
SOURCE Helen of Troy Limited
-0- 01/06/2005
/CONTACT: Helen of Troy Limited, +1-915-225-8000, or fax,
+1-915-225-8001/
/Web site: http://www.hotus.com /
(HELE)
CO: Helen of Troy Limited
ST: Texas
IN: REA HOU
SU: ERN CCA SLS
AC
-- NYTH058A --
1780 01/06/2005 07:31 EST http://www.prnewswire.com