-
Fourth Quarter Diluted EPS of $0.34; Adjusted Diluted EPS of $0.84
-
Fiscal Year 2014 Diluted EPS of $2.66; Adjusted Diluted EPS of $3.54
-
Expects Fiscal Year 2015 Diluted EPS in a Range of $4.30 to $4.40
EL PASO, Texas--(BUSINESS WIRE)--Apr. 28, 2014--
Helen of Troy Limited (NASDAQ:HELE), designer, developer and worldwide
marketer of brand-name houseware, healthcare/home environment and
personal care consumer products, today reported results for the three
and twelve month periods ended February 28, 2014.
Julien R. Mininberg, Chief Executive Officer, stated: “Fiscal 2014 was a
year of good financial performance highlighted by net revenue growth of
2.2%, diluted earnings per share of $2.66 and adjusted diluted earnings
per share of $3.54. Helen of Troy is a company with compelling brands
and businesses. I am delighted and honored to be able to build upon this
foundation with our plans to accelerate and sustain growth. Three key
priorities in my first year as CEO are to focus on transforming our
organization, reinvigorating our culture, and investing in our brands. A
first step in that direction is our new global shared services
management structure, announced today, which we expect to drive
increased collaboration, sharing of best practices and additional
operating efficiencies. Beyond the investments we are making in talent
in fiscal 2015, we plan to invest in marketing and innovation on many of
our brands, with a goal of accelerating growth and profitability in
fiscal 2016 and beyond. In parallel, we will focus on evaluating
acquisitions that complement our business, and continue
shareholder-friendly policies that optimize our capital structure. The
most recent example being the completion of our $246 million share
repurchase in March. I am pleased to announce that even with our planned
investments, the mid-point of our outlook range is expected to deliver
23% growth in diluted earnings per share in fiscal year 2015, compared
to adjusted diluted earnings per share in fiscal year 2014. We expect
fiscal year 2015 revenues of $1.325-$1.375 billion dollars. Our guidance
does not include any acquisitions, asset impairment charges or
additional share repurchase activity.”
Fourth Quarter of Fiscal Year 2014 Consolidated
Operating Results
-
Net sales revenue was $312.5 million compared to $326.0 million in the
fourth quarter of fiscal year 2013.
-
Gross profit margin was 40.2% compared to 40.4% for the same period
last year, reflecting the combined effects of increased promotional
program costs, the effect of foreign currency exchange rate
fluctuations on net sales revenue, general product cost increases and
product mix.
-
SG&A was 34.8% of net sales and included a pre-tax charge of $18.2
million (largely non-cash) in connection with the former CEO’s
separation from service (“CEO succession costs”), which were allocated
to all three business segments. This compared to 28.2% of net sales
for the same period last year. The increase primarily reflects the CEO
succession costs, higher incentive compensation expense and
transitional distribution costs, partially offset by lower outbound
freight costs and lower advertising expense.
-
Operating income was $16.7 million compared to operating income of
$39.7 million in the same period last year.
-
Net income was $11.0 million, or $0.34 per fully diluted share on 32.6
million weighted average shares outstanding, which compares to net
income in the fourth quarter of fiscal year 2013 of $31.5 million, or
$0.98 per fully diluted share on 32.1 million weighted average shares
outstanding.
-
Adjusted EBITDA (EBITDA without non-cash asset impairment charges and
non-cash share-based compensation) was $47.9 million compared to $50.0
million in the same period last year.
On an adjusted basis for the fourth quarter of fiscal 2014, excluding
CEO succession costs (largely non-cash):
-
Adjusted operating income was $35.0 million compared to $39.7 million
for the fourth quarter of fiscal year 2013.
-
Adjusted income was $27.3 million, or $0.84 per fully diluted share,
compared to $31.5 million, or $0.98 per fully diluted share, for the
fourth quarter of fiscal 2013.
Fiscal Year 2014 Consolidated Operating Results
-
Net sales revenue increased 2.2% to a record $1,317.2 million compared
to $1,288.3 million in fiscal year 2013.
-
Gross profit margin was 39.2% compared to 40.2% for the same period
last year, reflecting increased promotional program costs, the effect
of foreign currency exchange rate fluctuations, product cost increases
and product mix.
-
SG&A was 29.4% of net sales compared to 28.7% for the same period last
year, primarily reflecting CEO succession costs in the fourth quarter
of fiscal 2014 and higher incentive compensation expense, partially
offset by reduced media advertising costs, lower outbound freight
costs, the favorable comparative impact arising from a product
packaging litigation expense recorded in the prior year, and the
favorable comparative impact of certain transition services charges
relating to our acquisition of PUR that ceased being incurred after
the first half of fiscal year 2013.
-
Operating income was $117.1 million, which includes the impact of
$12.0 million in non-cash asset impairment charges and $18.2 million
of CEO succession costs, compared to operating income of $148.8
million in the same period last year.
-
Net income was $86.3 million, or $2.66 per fully diluted share on 32.4
million weighted average shares outstanding, which compares to net
income in fiscal year 2013 of $115.7 million, or $3.62 per fully
diluted share on 31.9 million weighted average shares outstanding.
-
Adjusted EBITDA increased 2.5% to $194.8 million compared to $190.0
million in the same period last year.
On an adjusted basis for fiscal 2014, excluding non-cash asset
impairment charges and CEO succession costs (largely non-cash):
-
Adjusted operating income was $147.4 million compared to $148.8
million for the same period last year.
-
Adjusted income was $114.6 million, or $3.54 per fully diluted share,
compared to $115.7 million, or $3.62 per fully diluted share, in the
same period last year.
Balance Sheet Highlights
-
Cash and cash equivalents totaled $70.0 million at February 28, 2014,
compared to $12.8 million at February 28, 2013.
-
Total short and long-term debt declined by $64.4 million to $192.6
million at February 28, 2014, compared to $257.0 million at February
28, 2013.
-
Accounts receivables turnover was 63.7 days at February 28, 2014,
compared to 60.6 days at February 28, 2013.
-
Inventory was $289.3 million at February 28, 2014, compared to $280.9
million at February 28, 2013.
Subsequent Events
On March 14, 2014, the Company completed its previously announced
modified “Dutch auction” tender offer resulting in the repurchase of
3,693,816 shares of its common stock outstanding at a cost per share of
$66.50, not including the fees and expenses related to the tender offer.
The total cost of the repurchase of $245.6 million was funded with $45.6
million of cash on hand and $200 million of borrowings under the
Company’s credit facility. The shares repurchased represented
approximately 11.5% of the Company’s issued and outstanding shares of
common stock at February 5, 2014.
Fiscal Year 2015 Annual Outlook
For fiscal year 2015, the Company expects net sales revenue in the range
of $1.325 billion to $1.375 billion, and diluted earnings per share in
the range of $4.30 to $4.40. The likelihood and potential impact of any
fiscal 2015 acquisitions, asset impairment charges or additional share
repurchases are unknown and cannot be reasonably estimated, therefore
they are not included in the Company’s sales and earnings outlook. The
Company expects capital expenditures for fiscal year 2015 to be in the
range of $8 million to $10 million.
Conference Call and Webcast
The Company will conduct a teleconference in conjunction with today's
earnings release. The teleconference begins at 4:45 pm Eastern Time
today, Monday, April 28, 2014. Institutional investors and analysts
interested in participating in the call are invited to dial (888)
572-7033 approximately ten minutes prior to the start of the call. The
conference call will also be webcast live at: www.hotus.com.
A telephone replay of this call will be available at 7:45 p.m. Eastern
Time on April 28, 2014 until 11:59 p.m. Eastern Time on May 5, 2014 and
can be accessed by dialing (877) 870-5176 and entering replay pin number
9781958. A replay of the webcast will remain available on the website
for 60 days.
About Helen of Troy Limited:
About Helen of Troy Limited: Helen of Troy Limited is a leading
global consumer products company offering creative solutions for its
customers through a strong portfolio of well-recognized and
widely-trusted brands, including: Housewares: OXO®, Good
Grips®, Soft Works®, OXO tot® and OXO Steel®; Healthcare/Home
Environment: Vicks®, Braun®, Honeywell®, PUR®, Febreze®,
Stinger®, Duracraft® and SoftHeat®; and Personal Care:
Revlon®, Vidal Sassoon®, Dr. Scholl's®, TONI&GUY®, Sure®, Pert®,
Infusium23®, Brut®, Ammens®, Hot Tools®, Bed Head®, Karina®, Sea Breeze®
and Gold 'N Hot®. The Honeywell® trademark is used under license from
Honeywell International Inc. The Vicks®, Braun®, Febreze® and Vidal
Sassoon® trademarks are used under license from The Procter & Gamble
Company. The Revlon® trademark is used under license from Revlon
Consumer Products Corporation. The Bed Head® trademark is used under
license from Unilever PLC. The Dr. Scholl's® trademark is used under
license from MSD Consumer Care, Inc.
For in-depth information about Helen of Troy, please visit www.hotus.com.
Non-GAAP Financial Measures:
The Company reports and discusses its operating results using
financial measures consistent with accounting principles generally
accepted in the United States of America (“GAAP”). To supplement
its presentation, the Company discloses certain financial measures that
may be considered non-GAAP financial measures, such as adjusted
operating income, adjusted income, adjusted diluted EPS, EBITDA and
adjusted EBITDA, which are presented in an accompanying table to this
press release along with a reconciliation of these financial measures to
their corresponding GAAP based measures presented in the Company’s
consolidated statements of income. Due to the forward-looking nature of
any forecasted diluted earnings per share for future periods,
information to reconcile this financial measure to the most directly
comparable GAAP financial measure is not available at this time, as the
Company is unable to forecast the impact, if any, of acquisitions, asset
impairment charges or additional share repurchases for future periods.
Forward Looking Statements:
This press release may contain forward-looking statements, which are
subject to change. The forward-looking statements are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Any or all of the forward-looking statements may turn out
to be wrong. They can be affected by inaccurate assumptions or by known
or unknown risks and uncertainties. Many of these factors will be
important in determining the Company's actual future results.
Consequently, no forward-looking statement can be guaranteed. Actual
future results may vary materially from those expressed or implied in
any forward-looking statements. The forward-looking statements are
qualified in their entirety by a number of risks that could cause actual
results to differ materially from historical or anticipated results.
Generally, the words "anticipates", "estimates", "believes", "expects",
"plans", "may", "will", "should", "seeks", "project", "predict",
"potential", "continue", "intends", and other similar words identify
forward-looking statements. The Company cautions readers not to place
undue reliance on 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. The forward-looking statements contained
in this press release should be read in conjunction with, and are
subject to and qualified by, the risks described in the Company's
Form 10-K for the year ended February 28, 2014 and in our other filings
with the SEC. Investors are urged to refer to the risk factors referred
to above for a description of these risks. Such risks include, among
others, the departure and recruitment of key personnel, the Company's
ability to deliver products to our customers in a timely manner, the
costs of complying with the business demands and requirements of large
sophisticated customers, the Company's relationship with key customers
and licensors, our dependence on the strength of retail economies and
vulnerabilities to an economic downturn, expectations regarding
acquisitions and the integration of acquired businesses, exchange
rate risks, disruptions in U.S., European and other international credit
markets, risks associated with weather conditions, the Company’s
dependence on foreign sources of supply and foreign manufacturing ,the
impact of changing costs of raw materials and energy on cost of goods
sold and certain operating expenses, the Company's geographic
concentration of certain U.S. distribution facilities, which increases
our exposure to significant shipping disruptions and added shipping and
storage costs, difficulties encountered during the transition to the
Company’s new distribution facility could interrupt the Company’s
logistical systems and cause shipping disruptions, the Company's
projections of product demand, sales, net income and earnings per share
are highly subjective and our future net sales revenue and net income
could vary in a material amount from such projections, circumstances
that may contribute to future impairment of goodwill, intangible or
other long-lived assets, the risks associated with the use of trademarks
licensed from and to third parties, the Company's ability to develop and
introduce innovative new products to meet changing consumer preferences,
trade barriers, exchange controls, expropriations, and other risks
associated with foreign operations, the Company’s debt leverage and the
constraints it may impose, the costs, complexity and challenges of
upgrading and managing our global information systems, the risks
associated with information security breaches, the risks associated with
tax audits and related disputes with taxing authorities, potential
changes in laws, including tax laws, and the Company's ability to
continue to avoid classification as a controlled foreign corporation.
|
|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES
|
|
Consolidated Condensed Statements of Income and Reconciliation
of Non-GAAP Financial Measures - Adjusted Operating Income,
Adjusted Income and
Adjusted Diluted Earnings per Share
|
|
(Unaudited)
|
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended the Last Day of February,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
As Reported (GAAP)
|
|
|
Adjustments
|
|
|
|
|
Adjusted (non-GAAP)(2)
|
|
|
As Reported (GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales revenue, net
|
|
|
$
|
312,520
|
|
|
|
100.0
|
%
|
|
|
$
|
-
|
|
|
|
|
|
$
|
312,520
|
|
|
|
100.0
|
%
|
|
|
$
|
326,042
|
|
|
|
100.0
|
%
|
|
Cost of goods sold
|
|
|
|
186,938
|
|
|
|
59.8
|
%
|
|
|
|
-
|
|
|
|
|
|
|
186,938
|
|
|
|
59.8
|
%
|
|
|
|
194,462
|
|
|
|
59.6
|
%
|
|
Gross profit
|
|
|
|
125,582
|
|
|
|
40.2
|
%
|
|
|
|
-
|
|
|
|
|
|
|
125,582
|
|
|
|
40.2
|
%
|
|
|
|
131,580
|
|
|
|
40.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expense
|
|
|
|
108,857
|
|
|
|
34.8
|
%
|
|
|
|
(18,228
|
)
|
|
(1)
|
|
|
|
90,629
|
|
|
|
29.0
|
%
|
|
|
|
91,848
|
|
|
|
28.2
|
%
|
|
Asset impairment charges
|
|
|
|
-
|
|
|
|
0.0
|
%
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
|
0.0
|
%
|
|
|
|
-
|
|
|
|
0.0
|
%
|
|
Operating income
|
|
|
|
16,725
|
|
|
|
5.4
|
%
|
|
|
|
18,228
|
|
|
|
|
|
|
34,953
|
|
|
|
11.2
|
%
|
|
|
|
39,732
|
|
|
|
12.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income (expense), net
|
|
|
|
74
|
|
|
|
0.0
|
%
|
|
|
|
-
|
|
|
|
|
|
|
74
|
|
|
|
0.0
|
%
|
|
|
|
48
|
|
|
|
0.0
|
%
|
|
Interest expense
|
|
|
|
(2,546
|
)
|
|
|
-0.8
|
%
|
|
|
|
-
|
|
|
|
|
|
|
(2,546
|
)
|
|
|
-0.8
|
%
|
|
|
|
(3,671
|
)
|
|
|
-1.1
|
%
|
|
Total other expense
|
|
|
|
(2,472
|
)
|
|
|
-0.8
|
%
|
|
|
|
-
|
|
|
|
|
|
|
(2,472
|
)
|
|
|
-0.8
|
%
|
|
|
|
(3,623
|
)
|
|
|
-1.1
|
%
|
|
Income before income taxes
|
|
|
|
14,253
|
|
|
|
4.6
|
%
|
|
|
|
18,228
|
|
|
|
|
|
|
32,481
|
|
|
|
10.4
|
%
|
|
|
|
36,109
|
|
|
|
11.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
3,239
|
|
|
|
1.0
|
%
|
|
|
|
1,893
|
|
|
(1)
|
|
|
|
5,132
|
|
|
|
1.6
|
%
|
|
|
|
4,602
|
|
|
|
1.4
|
%
|
|
Net income
|
|
|
$
|
11,014
|
|
|
|
3.5
|
%
|
|
|
$
|
16,335
|
|
|
|
|
|
$
|
27,349
|
|
|
|
8.8
|
%
|
|
|
$
|
31,507
|
|
|
|
9.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
|
$
|
0.34
|
|
|
|
|
|
|
$
|
0.50
|
|
|
|
|
|
$
|
0.84
|
|
|
|
|
|
|
$
|
0.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock used
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in computing diluted earnings per share (1)
|
|
|
|
32,613
|
|
|
|
|
|
|
|
(169
|
)
|
|
|
|
|
|
32,444
|
|
|
|
|
|
|
|
32,089
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Years Ended the Last Day of February,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
As Reported (GAAP)
|
|
|
Adjustments
|
|
|
|
|
Adjusted (non-GAAP)(2)
|
|
|
As Reported (GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales revenue, net
|
|
|
$
|
1,317,153
|
|
|
|
100.0
|
%
|
|
|
$
|
-
|
|
|
|
|
|
$
|
1,317,153
|
|
|
|
100.0
|
%
|
|
|
$
|
1,288,263
|
|
|
|
100.0
|
%
|
|
Cost of goods sold
|
|
|
|
800,450
|
|
|
|
60.8
|
%
|
|
|
|
-
|
|
|
|
|
|
|
800,450
|
|
|
|
60.8
|
%
|
|
|
|
770,052
|
|
|
|
59.8
|
%
|
|
Gross profit
|
|
|
|
516,703
|
|
|
|
39.2
|
%
|
|
|
|
-
|
|
|
|
|
|
|
516,703
|
|
|
|
39.2
|
%
|
|
|
|
518,211
|
|
|
|
40.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expense
|
|
|
|
387,554
|
|
|
|
29.4
|
%
|
|
|
|
(18,228
|
)
|
|
(1)
|
|
|
|
369,326
|
|
|
|
28.0
|
%
|
|
|
|
369,438
|
|
|
|
28.7
|
%
|
|
Asset impairment charges
|
|
|
|
12,049
|
|
|
|
0.9
|
%
|
|
|
|
(12,049
|
)
|
|
(3)
|
|
|
|
-
|
|
|
|
0.0
|
%
|
|
|
|
-
|
|
|
|
0.0
|
%
|
|
Operating income
|
|
|
|
117,100
|
|
|
|
8.9
|
%
|
|
|
|
30,277
|
|
|
|
|
|
|
147,377
|
|
|
|
11.2
|
%
|
|
|
|
148,773
|
|
|
|
11.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income (expense), net
|
|
|
|
227
|
|
|
|
0.0
|
%
|
|
|
|
-
|
|
|
|
|
|
|
227
|
|
|
|
0.0
|
%
|
|
|
|
86
|
|
|
|
0.0
|
%
|
|
Interest expense
|
|
|
|
(10,193
|
)
|
|
|
-0.8
|
%
|
|
|
|
-
|
|
|
|
|
|
|
(10,193
|
)
|
|
|
-0.8
|
%
|
|
|
|
(13,345
|
)
|
|
|
-1.0
|
%
|
|
Total other expense
|
|
|
|
(9,966
|
)
|
|
|
-0.8
|
%
|
|
|
|
-
|
|
|
|
|
|
|
(9,966
|
)
|
|
|
-0.8
|
%
|
|
|
|
(13,259
|
)
|
|
|
-1.0
|
%
|
|
Income before income taxes
|
|
|
|
107,134
|
|
|
|
8.1
|
%
|
|
|
|
30,277
|
|
|
|
|
|
|
137,411
|
|
|
|
10.4
|
%
|
|
|
|
135,514
|
|
|
|
10.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
20,886
|
|
|
|
1.6
|
%
|
|
|
|
1,893
|
|
|
(1)
|
|
|
|
22,794
|
|
|
|
1.7
|
%
|
|
|
|
19,848
|
|
|
|
1.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
15
|
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
86,248
|
|
|
|
6.5
|
%
|
|
|
$
|
28,369
|
|
|
|
|
|
$
|
114,617
|
|
|
|
8.7
|
%
|
|
|
$
|
115,666
|
|
|
|
9.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
|
$
|
2.66
|
|
|
|
|
|
|
$
|
0.88
|
|
|
|
|
|
$
|
3.54
|
|
|
|
|
|
|
$
|
3.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock used
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in computing diluted earnings per share (1)
|
|
|
|
32,386
|
|
|
|
|
|
|
|
(42
|
)
|
|
|
|
|
|
32,344
|
|
|
|
|
|
|
|
31,936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales Revenue by Segment
|
|
(Unaudited)
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
the Last Day of February,
|
|
|
|
|
|
|
|
|
% of Sales Revenue, net
|
|
|
|
|
2014
|
|
|
2013
|
|
|
$ Change
|
|
|
% Change
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales revenue by segment, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Housewares
|
|
|
$
|
66,007
|
|
|
$
|
66,436
|
|
|
$
|
(429
|
)
|
|
|
-0.6
|
%
|
|
|
21.1
|
%
|
|
|
20.4
|
%
|
|
Healthcare / Home Environment
|
|
|
|
143,677
|
|
|
|
147,605
|
|
|
|
(3,928
|
)
|
|
|
-2.7
|
%
|
|
|
46.0
|
%
|
|
|
45.3
|
%
|
|
Personal Care
|
|
|
|
102,836
|
|
|
|
112,001
|
|
|
|
(9,165
|
)
|
|
|
-8.2
|
%
|
|
|
32.9
|
%
|
|
|
34.4
|
%
|
|
Total sales revenue, net
|
|
|
$
|
312,520
|
|
|
$
|
326,042
|
|
|
$
|
(13,522
|
)
|
|
|
-4.1
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Years Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
the Last Day of February,
|
|
|
|
|
|
|
|
|
% of Sales Revenue, net
|
|
|
|
|
2014
|
|
|
2013
|
|
|
$ Change
|
|
|
% Change
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales revenue by segment, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Housewares
|
|
|
$
|
274,478
|
|
|
$
|
259,042
|
|
|
$
|
15,436
|
|
|
|
6.0
|
%
|
|
|
20.8
|
%
|
|
|
20.1
|
%
|
|
Healthcare / Home Environment
|
|
|
|
568,075
|
|
|
|
538,666
|
|
|
|
29,409
|
|
|
|
5.5
|
%
|
|
|
43.1
|
%
|
|
|
41.8
|
%
|
|
Personal Care
|
|
|
|
474,600
|
|
|
|
490,555
|
|
|
|
(15,955
|
)
|
|
|
-3.3
|
%
|
|
|
36.0
|
%
|
|
|
38.1
|
%
|
|
Total sales revenue, net
|
|
|
$
|
1,317,153
|
|
|
$
|
1,288,263
|
|
|
$
|
28,890
|
|
|
|
2.2
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
Selected Consolidated Balance Sheet Information
|
|
(Unaudited)
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
2/28/2014
|
|
|
2/28/2013
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
70,027
|
|
|
$
|
12,842
|
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
|
213,054
|
|
|
|
219,719
|
|
|
|
|
|
|
|
|
|
Inventory
|
|
|
|
289,255
|
|
|
|
280,872
|
|
|
|
|
|
|
|
|
|
Total assets, current
|
|
|
|
615,476
|
|
|
|
545,205
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
1,533,302
|
|
|
|
1,474,004
|
|
|
|
|
|
|
|
|
|
Total liabilities, current
|
|
|
|
329,354
|
|
|
|
308,665
|
|
|
|
|
|
|
|
|
|
Total long-term liabilities
|
|
|
|
174,461
|
|
|
|
238,733
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
1,029,487
|
|
|
|
926,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OTHER DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures - EBITDA (Earnings
Before Interest, Taxes, Depreciation and Amortization)
|
|
and Adjusted EBITDA
|
|
(Unaudited)
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Fiscal Years Ended
|
|
|
|
|
the Last Day of February,
|
|
|
the Last Day of February,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
11,014
|
|
|
$
|
31,507
|
|
|
$
|
86,248
|
|
|
$
|
115,666
|
|
Interest expense, net
|
|
|
|
2,530
|
|
|
|
3,651
|
|
|
|
10,128
|
|
|
|
13,270
|
|
Income tax expense
|
|
|
|
3,239
|
|
|
|
4,602
|
|
|
|
20,886
|
|
|
|
19,848
|
|
Depreciation and amortization, excluding amortized interest
|
|
|
|
8,655
|
|
|
|
8,737
|
|
|
|
33,839
|
|
|
|
35,328
|
|
EBITDA (Earnings before interest, taxes, depreciation and
amortization) (2)
|
|
|
$
|
25,438
|
|
|
$
|
48,497
|
|
|
$
|
151,101
|
|
|
$
|
184,112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as calculated above (2)
|
|
|
$
|
25,438
|
|
|
$
|
48,497
|
|
|
$
|
151,101
|
|
|
$
|
184,112
|
|
Add: Non-cash asset impairment charges (3)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
12,049
|
|
|
|
-
|
|
Non-cash share-based compensation (4)
|
|
|
|
22,483
|
|
|
|
1,496
|
|
|
|
31,683
|
|
|
|
5,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (2)
|
|
|
$
|
47,921
|
|
|
$
|
49,993
|
|
|
$
|
194,833
|
|
|
$
|
190,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES
Notes to Press Release
|
(1)
|
|
Adjustments related to items that are excluded from the “As
Reported (GAAP)” results to arrive at the “Adjusted (non-GAAP)”
results. Adjustments consist of CEO succession costs of $18.2
million for the three- and twelve- months ended February 28, 2014
incurred in connection with the former CEO’s separation from the
Company in the fourth quarter of fiscal year 2014, and the related
tax benefit of $1.9 million. The CEO succession costs will be
largely settled through the issuance of the Company’s common stock
to our former CEO, which has a dilutive impact on weighted average
shares of common stock outstanding of 169,000 and 42,000 shares
for the three- and twelve-months ended February 28, 2014. There
were no comparable adjustments for the three- and twelve-months
ended February 28, 2013.
|
|
|
|
|
|
(2)
|
|
This press release contains non-GAAP financial measures. Adjusted
operating income, adjusted income, adjusted diluted EPS, EBITDA
and adjusted EBITDA (“Non-GAAP measures”) that are discussed in
the accompanying press release or in the preceding tables are
considered non-GAAP financial information as contemplated by SEC
Regulation G, Rule 100. Accordingly, we are providing the
preceding tables that reconcile these measures to their
corresponding GAAP based measures presented in our Consolidated
Statements of Income in the accompanying tables to the press
release. The Company believes that these non-GAAP measures provide
useful information to management and investors regarding financial
and business trends relating to its financial condition and
results of operations. The Company believes that these non-GAAP
measures, in combination with the Company's financial results
calculated in accordance with GAAP, provides investors with
additional perspective. The Company further believes that the
items excluded from certain non-GAAP measures do not accurately
reflect the underlying performance of its continuing operations
for the period in which they are incurred, even though some of
these excluded items may be incurred and reflected in the
Company's GAAP financial results in the foreseeable future. The
material limitation associated with the use of the non-GAAP
financial measures is that the non-GAAP measures do not reflect
the full economic impact of the Company's activities. These
non-GAAP measures are not prepared in accordance with GAAP, are
not an alternative to GAAP financial information, and may be
calculated differently than non-GAAP financial information
disclosed by other companies. Accordingly, undue reliance should
not be placed on non-GAAP information.
|
|
|
|
|
|
(3)
|
|
Adjustments relate to items that are excluded from the “As
Reported (GAAP)” results to arrive at the “Adjusted (non-GAAP)”
results. Adjustments consist of non-cash asset impairment charges
of $12.05 million ($12.03 million after tax) for the twelve months
ended February 28, 2014 as a result of our annual evaluation of
goodwill and indefinite-lived intangible assets for impairment
during the first quarter of fiscal year 2014. The non-cash charges
relate to certain trademarks in our Personal Care segment, which
were written down to their estimated fair value, determined on the
basis of future discounted cash flows using the relief from
royalty valuation method. There were no comparable adjustments for
the three- and twelve-months ended February 28, 2013.
|
|
|
|
|
|
(4)
|
|
Adjustment consists of non-cash share-based compensation expense
associated with share based awards outstanding under two expired
and three active share-based compensation plans. These awards
consist of stock options granted to certain officers, employees
and new hires, and restricted stock grants to certain members of
the Company’s Board of Directors. The expense also includes
performance based restricted stock awards and units for our former
CEO. For the three and twelve months ended February 28, 2014,
non-cash share based compensation includes CEO separation
compensation of $15 million to be settled with shares of common
stock, per the terms of our former CEO’s Employment and Separation
Agreements.
|
Source: Helen of Troy Limited
Investors:
ICR, Inc.
Allison Malkin / Anne Rakunas
203-682-8200
/ 310-954-1113