-
Delivers Revenue of $319.9 Million; GAAP Diluted Earnings Per Share
(EPS) of $0.65
-
Non-GAAP Adjusted Diluted EPS of $0.99
-
Maintains Fiscal Year 2015 Outlook
EL PASO, Texas--(BUSINESS WIRE)--Oct. 9, 2014--
Helen of Troy Limited (NASDAQ, NM:HELE), designer, developer and
worldwide marketer of brand-name housewares, healthcare/home
environment, nutritional supplement and personal care consumer products,
today reported results for the three- and six-month periods ended August
31, 2014.
Julien R. Mininberg, Chief Executive Officer, stated, “Our sales and
earnings surpassed our revised guidance driven by stronger orders late
in the quarter and better gross profit margin in August. Our acquisition
of Healthy Directions contributed positively as planned. During the
quarter, we made progress on our strategies that focus on product
innovation, increased collaboration across our businesses and brands,
and improved efficiency in many aspects of our organization. As an
example, we have added new leadership in our global shared services who
are spearheading the transformation of our distribution and sourcing
operations. Executing our key strategies combined with our strong
balance sheet, allows us to invest in organic growth, improve our
business and operations, while evaluating compelling acquisitions and
repurchasing our common shares. This is positioning us to achieve our
long-term goal of delivering consistent sales growth at increasing rates
of profitability.”
Second Quarter of Fiscal Year 2015 Consolidated
Operating Results
-
Net sales revenue grew to $319.9 million compared to $319.4 million in
the second quarter of fiscal year 2014.
-
Gross profit margin was 41.8% compared to 38.6% for the same period
last year. This increase reflects two months of operations of the
Nutritional Supplements segment, which had a favorable impact of 2.6
percentage points on the consolidated gross profit margin.
Additionally, gross profit margin for the core business improved by
0.6 percentage points compared to the same period last year due to a
better product sales mix.
-
SG&A was 34.1% of net sales compared to 29.1% of net sales for the
same period last year. The increase is primarily due to a higher
relative SG&A ratio in the Nutritional Supplements segment, $3.6
million of acquisition-related expenses, and higher advertising and
other marketing expenditures in the core business, which were
partially offset by lower incentive compensation costs.
-
Operating income was $24.6 million compared to operating income of
$30.4 million in the same period last year.
-
Income tax expense as a percentage of pretax income was 9.0% compared
to 17.4% for the same period last year. The second quarter of fiscal
year 2015 includes a tax benefit of $2.1 million related to the
favorable resolution of an uncertain tax position. On a normalized
basis, the Company expects the ongoing effective tax rate to be
between 16% and 18% with the inclusion of Healthy Directions.
-
Net income was $18.8 million, or $0.65 per fully diluted share on 28.8
million weighted average diluted shares outstanding. This compares to
net income in the second quarter of fiscal year 2014 of $23.3 million,
or $0.72 per fully diluted share on 32.3 million weighted average
diluted shares outstanding.
-
Adjusted EBITDA (EBITDA excluding non-cash share-based compensation
and acquisition-related expenses) was $40.2 million compared to $41.8
million in the same period last year.
On an adjusted basis for the second quarter of fiscal years 2015 and
2014, excluding acquisition-related expenses, amortization of intangible
assets and non‐cash share based compensation, as applicable:
-
Adjusted operating income was $36.4 million compared to $39.2 million
for the second quarter of fiscal year 2014.
-
Adjusted income was $28.5 million, or $0.99 per fully diluted share,
compared to $31.2 million, or $0.97 per fully diluted share, for the
second quarter of fiscal year 2014.
First Six Months of Fiscal Year 2015
Consolidated Operating Results
-
Net sales revenue increased 1.3% to $631.7 million compared to $623.9
million in the first six months of fiscal year 2014.
-
Gross profit margin was 40.1% compared to 39.0% for the same period
last year. This increase reflects two months of operations of the
Nutritional Supplements segment, which had a favorable impact of 1.3
percentage points on the consolidated gross profit margin. This was
partially offset by a 0.2 percentage point reduction in the gross
profit margin for the core business compared to the same period last
year due to higher promotional program spending, shifts in margin mix
and product cost increases.
-
SG&A was 31.1% of net sales compared to 28.9% of net sales for the
same period last year. The increase is primarily due to a higher
relative SG&A ratio in the Nutritional Supplements segment, $3.6
million of acquisition-related expenses in the second quarter of
fiscal year 2015 and higher advertising and other marketing
expenditures in the core business, which were partially offset by
lower incentive compensation costs.
-
Operating income was $47.7 million, which includes $9.0 million in
non-cash asset impairment charges related to certain trademarks in the
Company’s Personal Care segment. This is compared to operating income
of $51.0 million in the same period last year, which included the
impact of $12.0 million in non‐cash asset impairment charges related
to certain trademarks in the Company’s Personal Care segment.
-
Income tax expense as a percentage of pretax income was 12.9% compared
to 18% for the same period last year. The first six months of fiscal
year 2015 includes a tax benefit of $2.1 million related to the
favorable resolution of an uncertain tax position. On a normalized
basis, the Company expects the ongoing effective tax rate to be
between 16% and 18% with the inclusion of Healthy Directions.
-
Net income was $35.2 million, or $1.21 per fully diluted share on 29.2
million weighted average diluted shares outstanding. This compares to
net income of $37.7 million, or $1.17 per fully diluted share on 32.2
million weighted average diluted shares outstanding for the same
period last year.
-
Adjusted EBITDA (EBITDA excluding non-cash share-based compensation,
acquisition-related expenses and non-cash asset impairment charges)
was $82.2 million compared to $86.4 million in the same period last
year.
On an adjusted basis for the first six months of fiscal years 2015 and
2014, excluding non-cash asset impairment charges, acquisition-related
expenses, amortization of intangible assets and non‐cash share based
compensation in both periods, as applicable:
-
Adjusted operating income was $75.1 million compared to $80.7 million
for the first six months of fiscal year 2014.
-
Adjusted income was $59.3 million, or $2.03 per fully diluted share,
compared to $65.5 million, or $2.03 per fully diluted share, for the
first six months of fiscal year 2014.
Balance Sheet Highlights
-
Cash and cash equivalents totaled $24.7 million at August 31, 2014,
compared to $10.1 million at August 31, 2013.
-
Total short- and long-term debt increased to $604.6 million at August
31, 2014, compared to $227.6 million at August 31, 2013. The increase
primarily reflects borrowing incurred in conjunction with the
repurchase of $273.6 million of common stock in the first quarter of
fiscal year 2015 and the acquisition of Healthy Directions for $195.9
million in the second quarter of fiscal year 2015.
-
Accounts receivable turnover was 63.8 days at August 31, 2014,
compared to 61.9 days at August 31, 2013.
-
Inventory was $351.8 million at August 31, 2014, compared to $306.9
million at August 31, 2013.
Recent Events
On June 11, 2014, the Company entered into a definitive purchase
agreement to acquire Healthy Directions, LLC, a leader in the premium
doctor‐branded vitamin, mineral and supplement market. The transaction
was completed on June 30, 2014 for a cash purchase price of $195.9
million funded from cash on hand and borrowings under the Company’s
revolving credit facility.
On June 11, 2014, in connection with the acquisition of Healthy
Directions, the Company entered into an amendment of its credit
agreement with Bank of America, N.A. and other lenders. The amendment,
among other things, increased the unsecured revolving commitment of the
credit agreement from $375 million to $570 million.
Additionally, a strategic licensing agreement between Helen of Troy and
The Cookware Company (“TCC”) to bring to market high quality cookware
under the OXO Good Grips® brand name was announced on June 20, 2014.
Under the arrangement, TCC has collaborated with OXO to develop 3
initial collections using an innovative new “smart shapes” concept built
with premium materials consisting of two lines of hard‐anodized aluminum
cookware and one line of stainless steel cookware. These will be
marketed by TCC into OXO’s normal channels of distribution. The
licensing agreement will extend OXO’s brand into a new housewares
category.
Fiscal Year 2015 Annual Outlook
For fiscal year 2015, the Company continues to expect net sales revenue
excluding Healthy Directions in the range of $1.275 to $1.30 billion,
and diluted EPS (GAAP) in the range of $3.42 to $3.52, which includes
after-tax non-cash asset impairment charges of $0.28 per share. The
Company continues to expect projected sales and diluted EPS (GAAP) from
the Healthy Directions acquisition to be in the range of $100 million to
$105 million and $0.12 to $0.16, respectively, for the eight months
included in our fiscal year 2015 results. The Company continues to
expect consolidated net sales revenue including Healthy Directions in
the range of $1.375 to $1.405 billion and diluted EPS (GAAP) in the
range of $3.54 to $3.68.
The Company continues to expect adjusted diluted EPS (non-GAAP)
excluding Healthy Directions to be in the range of $4.55 to $4.65, which
excludes after-tax non-cash asset impairment charges, intangible asset
amortization expense, and non-cash share-based compensation expense. The
Company continues to expect adjusted diluted EPS (non-GAAP) for Healthy
Directions to be in the range of $0.32 to $0.36, which excludes
after-tax acquisition-related expenses, intangible asset amortization
expense, and non-cash share-based compensation expense. The Company
continues to expect consolidated adjusted diluted EPS (non-GAAP)
including Healthy Directions to be in the range of $4.87 to $5.01.
The diluted EPS outlook is based on an estimated weighted average shares
outstanding of 29.2 million for the full fiscal year 2015, which
includes the impact of the “Dutch auction” tender offer completed on
March 14, 2014, as well as an additional buyback of $25.8 million in the
first quarter of fiscal year 2015, as previously disclosed. Further
information concerning the fiscal year 2015 outlook, including a
reconciliation of fiscal year 2015 projected diluted EPS (GAAP) to
Adjusted Diluted EPS (non-GAAP), is furnished in a table below.
The Company’s guidance assumes that the severity of the upcoming
cold/flu season will be in line with historical averages. The likelihood
and potential impact of any additional fiscal year 2015 acquisitions,
asset impairment charges or share repurchases are unknown and cannot be
reasonably estimated; therefore they are not included in the Company’s
sales and earnings outlook.
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, Thursday, October 9, 2014. Institutional investors and analysts
interested in participating in the call are invited to dial (888)
500-6950 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 October 9, 2014 until 11:59 p.m. Eastern Time on October 16,
2014 and can be accessed by dialing (877) 870-5176 and entering replay
pin number 3117775. A replay of the webcast will remain available on the
website for 60 days.
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®, Pro Beauty Tools®, Sure®, Pert®, Infusium23®,
Brut®, Ammens®, Hot Tools®, Bed Head®, Karina®, Ogilvie®, and Gold 'N
Hot®. The Nutritional Supplements segment was formed with the recent
acquisition of Healthy Directions, a U.S. market leader in premium
doctor-branded vitamins, minerals and supplements, as well as other
health products sold directly to consumers. 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 accompanying tables 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.
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, risks
associated with the availability, purity and integrity of materials used
in nutritional supplements, 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,
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, increased product liability and
reputational risks associated with the formulation and distribution of
nutritional supplements, risks associated with adverse publicity and
negative public perception regarding the use of nutritional supplements,
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 increased complexity
of compliance with a number of new government regulations as a result of
adding nutritional supplements to the Company’s portfolio of products,
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 ("EPS")
|
|
(Unaudited)
|
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended August 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
As Reported (GAAP)
|
|
Adjustments (1)
|
|
|
Adjusted (non-GAAP)(1)
|
|
As Reported (GAAP)
|
|
Adjustments (1)
|
|
|
Adjusted (non-GAAP)(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales revenue, net
|
|
$
|
319,949
|
|
|
100.0
|
%
|
|
$
|
-
|
|
|
|
$
|
319,949
|
|
|
100.0
|
%
|
|
$
|
319,387
|
|
|
100.0
|
%
|
|
$
|
-
|
|
|
|
$
|
319,387
|
|
|
100.0
|
%
|
|
Cost of goods sold
|
|
|
186,205
|
|
|
58.2
|
%
|
|
|
-
|
|
|
|
|
186,205
|
|
|
58.2
|
%
|
|
|
196,132
|
|
|
61.4
|
%
|
|
|
-
|
|
|
|
|
196,132
|
|
|
61.4
|
%
|
|
Gross profit
|
|
|
133,744
|
|
|
41.8
|
%
|
|
|
-
|
|
|
|
|
133,744
|
|
|
41.8
|
%
|
|
|
123,255
|
|
|
38.6
|
%
|
|
|
-
|
|
|
|
|
123,255
|
|
|
38.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expense
|
|
|
109,141
|
|
|
34.1
|
%
|
|
|
(1,917
|
)
|
(2)
|
|
|
97,298
|
|
|
30.4
|
%
|
|
|
92,899
|
|
|
29.1
|
%
|
|
|
(3,419
|
)
|
(2)
|
|
|
84,072
|
|
|
26.3
|
%
|
|
|
|
|
|
|
|
|
(6,315
|
)
|
(3)
|
|
|
|
|
|
|
|
|
|
|
(5,408
|
)
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,611
|
)
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairment charges
|
|
|
-
|
|
|
0.0
|
%
|
|
|
-
|
|
|
|
|
-
|
|
|
0.0
|
%
|
|
|
-
|
|
|
0.0
|
%
|
|
|
-
|
|
|
|
|
-
|
|
|
0.0
|
%
|
|
Operating income
|
|
|
24,603
|
|
|
7.7
|
%
|
|
|
11,843
|
|
|
|
|
36,446
|
|
|
11.4
|
%
|
|
|
30,356
|
|
|
9.5
|
%
|
|
|
8,827
|
|
|
|
|
39,183
|
|
|
12.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income (expense), net
|
|
|
97
|
|
|
0.0
|
%
|
|
|
-
|
|
|
|
|
97
|
|
|
0.0
|
%
|
|
|
56
|
|
|
0.0
|
%
|
|
|
-
|
|
|
|
|
56
|
|
|
0.0
|
%
|
|
Interest expense
|
|
|
(3,998
|
)
|
|
-1.2
|
%
|
|
|
-
|
|
|
|
|
(3,998
|
)
|
|
-1.2
|
%
|
|
|
(2,192
|
)
|
|
-0.7
|
%
|
|
|
-
|
|
|
|
|
(2,192
|
)
|
|
-0.7
|
%
|
|
Total other expense
|
|
|
(3,901
|
)
|
|
-1.2
|
%
|
|
|
-
|
|
|
|
|
(3,901
|
)
|
|
-1.2
|
%
|
|
|
(2,136
|
)
|
|
-0.7
|
%
|
|
|
-
|
|
|
|
|
(2,136
|
)
|
|
-0.7
|
%
|
|
Income before income taxes
|
|
|
20,702
|
|
|
6.5
|
%
|
|
|
11,843
|
|
|
|
|
32,545
|
|
|
10.2
|
%
|
|
|
28,220
|
|
|
8.8
|
%
|
|
|
8,827
|
|
|
|
|
37,047
|
|
|
11.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
1,863
|
|
|
0.6
|
%
|
|
|
2,134
|
|
(6)
|
|
|
3,997
|
|
|
1.2
|
%
|
|
|
4,902
|
|
|
1.5
|
%
|
|
|
904
|
|
(6)
|
|
|
5,806
|
|
|
1.8
|
%
|
|
Net income
|
|
$
|
18,839
|
|
|
5.9
|
%
|
|
$
|
9,709
|
|
|
|
$
|
28,548
|
|
|
8.9
|
%
|
|
$
|
23,318
|
|
|
7.3
|
%
|
|
$
|
7,923
|
|
|
|
$
|
31,241
|
|
|
9.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
$
|
0.65
|
|
|
|
|
$
|
0.34
|
|
|
|
$
|
0.99
|
|
|
|
|
$
|
0.72
|
|
|
|
|
$
|
0.25
|
|
|
|
$
|
0.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock used in computing diluted
EPS
|
|
|
28,769
|
|
|
|
|
|
|
|
|
28,769
|
|
|
|
|
|
32,272
|
|
|
|
|
|
|
|
|
32,272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended August 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
As Reported (GAAP)
|
|
Adjustments (1)
|
|
|
Adjusted (non-GAAP)(1)
|
|
As Reported (GAAP)
|
|
Adjustments (1)
|
|
|
Adjusted (non-GAAP)(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales revenue, net
|
|
$
|
631,727
|
|
|
100.0
|
%
|
|
$
|
-
|
|
|
|
$
|
631,727
|
|
|
100.0
|
%
|
|
$
|
623,903
|
|
|
100.0
|
%
|
|
$
|
-
|
|
|
|
$
|
623,903
|
|
|
100.0
|
%
|
|
Cost of goods sold
|
|
|
378,463
|
|
|
59.9
|
%
|
|
|
-
|
|
|
|
|
378,463
|
|
|
59.9
|
%
|
|
|
380,484
|
|
|
61.0
|
%
|
|
|
-
|
|
|
|
|
380,484
|
|
|
61.0
|
%
|
|
Gross profit
|
|
|
253,264
|
|
|
40.1
|
%
|
|
|
-
|
|
|
|
|
253,264
|
|
|
40.1
|
%
|
|
|
243,419
|
|
|
39.0
|
%
|
|
|
-
|
|
|
|
|
243,419
|
|
|
39.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expense
|
|
|
196,538
|
|
|
31.1
|
%
|
|
|
(3,212
|
)
|
(2)
|
|
|
178,141
|
|
|
28.2
|
%
|
|
|
180,389
|
|
|
28.9
|
%
|
|
|
(6,797
|
)
|
(2)
|
|
|
162,753
|
|
|
26.1
|
%
|
|
|
|
|
|
|
|
|
(11,574
|
)
|
(3)
|
|
|
|
|
|
|
|
|
|
|
(10,839
|
)
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,611
|
)
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairment charges
|
|
|
9,000
|
|
|
1.4
|
%
|
|
|
(9,000
|
)
|
(5)
|
|
|
-
|
|
|
0.0
|
%
|
|
|
12,049
|
|
|
1.9
|
%
|
|
|
(12,049
|
)
|
(5)
|
|
|
-
|
|
|
0.0
|
%
|
|
Operating income
|
|
|
47,726
|
|
|
7.6
|
%
|
|
|
27,397
|
|
|
|
|
75,123
|
|
|
11.9
|
%
|
|
|
50,981
|
|
|
8.2
|
%
|
|
|
29,685
|
|
|
|
|
80,666
|
|
|
12.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income (expense), net
|
|
|
147
|
|
|
0.0
|
%
|
|
|
-
|
|
|
|
|
147
|
|
|
0.0
|
%
|
|
|
140
|
|
|
0.0
|
%
|
|
|
-
|
|
|
|
|
140
|
|
|
0.0
|
%
|
|
Interest expense
|
|
|
(7,415
|
)
|
|
-1.2
|
%
|
|
|
-
|
|
|
|
|
(7,415
|
)
|
|
-1.2
|
%
|
|
|
(5,134
|
)
|
|
-0.8
|
%
|
|
|
-
|
|
|
|
|
(5,134
|
)
|
|
-0.8
|
%
|
|
Total other expense
|
|
|
(7,268
|
)
|
|
-1.2
|
%
|
|
|
-
|
|
|
|
|
(7,268
|
)
|
|
-1.2
|
%
|
|
|
(4,994
|
)
|
|
-0.8
|
%
|
|
|
-
|
|
|
|
|
(4,994
|
)
|
|
-0.8
|
%
|
|
Income before income taxes
|
|
|
40,458
|
|
|
6.4
|
%
|
|
|
27,397
|
|
|
|
|
67,855
|
|
|
10.7
|
%
|
|
|
45,987
|
|
|
7.4
|
%
|
|
|
29,685
|
|
|
|
|
75,672
|
|
|
12.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
5,221
|
|
|
0.8
|
%
|
|
|
3,323
|
|
(6)
|
|
|
8,544
|
|
|
1.4
|
%
|
|
|
8,278
|
|
|
1.3
|
%
|
|
|
1,861
|
|
(6)
|
|
|
10,139
|
|
|
1.6
|
%
|
|
Net income
|
|
$
|
35,237
|
|
|
5.6
|
%
|
|
$
|
24,074
|
|
|
|
$
|
59,311
|
|
|
9.4
|
%
|
|
$
|
37,709
|
|
|
6.0
|
%
|
|
$
|
27,824
|
|
|
|
$
|
65,533
|
|
|
10.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
$
|
1.21
|
|
|
|
|
$
|
0.82
|
|
|
|
$
|
2.03
|
|
|
|
|
$
|
1.17
|
|
|
|
|
$
|
0.86
|
|
|
|
$
|
2.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock used in computing diluted
EPS
|
|
|
29,192
|
|
|
|
|
|
|
|
|
29,192
|
|
|
|
|
|
32,226
|
|
|
|
|
|
|
|
|
32,226
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales Revenue by Segment
|
|
(Unaudited)
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended August 31,
|
|
|
|
|
|
% of Sales Revenue, net
|
|
|
|
2014
|
|
2013
|
|
$ Change
|
|
% Change
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales revenue by segment, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Housewares
|
|
$
|
69,637
|
|
$
|
70,165
|
|
$
|
(528
|
)
|
|
-0.8
|
%
|
|
21.8
|
%
|
|
22.0
|
%
|
|
Healthcare / Home Environment
|
|
|
126,218
|
|
|
133,044
|
|
|
(6,826
|
)
|
|
-5.1
|
%
|
|
39.4
|
%
|
|
41.7
|
%
|
|
Nutritional Supplements (7)
|
|
|
24,634
|
|
|
-
|
|
|
24,634
|
|
|
*
|
|
7.7
|
%
|
|
0.0
|
%
|
|
Personal Care
|
|
|
99,460
|
|
|
116,178
|
|
|
(16,718
|
)
|
|
-14.4
|
%
|
|
31.1
|
%
|
|
36.4
|
%
|
|
Total sales revenue, net
|
|
$
|
319,949
|
|
$
|
319,387
|
|
$
|
562
|
|
|
0.2
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended August 31,
|
|
|
|
|
|
% of Sales Revenue, net
|
|
|
|
2014
|
|
2013
|
|
$ Change
|
|
% Change
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales revenue by segment, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Housewares
|
|
$
|
136,393
|
|
$
|
133,695
|
|
$
|
2,698
|
|
|
2.0
|
%
|
|
21.6
|
%
|
|
21.4
|
%
|
|
Healthcare / Home Environment
|
|
|
268,707
|
|
|
258,646
|
|
|
10,061
|
|
|
3.9
|
%
|
|
42.5
|
%
|
|
41.5
|
%
|
|
Nutritional Supplements (7)
|
|
|
24,634
|
|
|
-
|
|
|
24,634
|
|
|
*
|
|
3.9
|
%
|
|
0.0
|
%
|
|
Personal Care
|
|
|
201,993
|
|
|
231,562
|
|
|
(29,569
|
)
|
|
-12.8
|
%
|
|
32.0
|
%
|
|
37.1
|
%
|
|
Total sales revenue, net
|
|
$
|
631,727
|
|
$
|
623,903
|
|
$
|
7,824
|
|
|
1.3
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Calculation is not meaningful
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES
|
|
|
|
|
|
|
|
Selected Consolidated Balance Sheet Information
|
|
(Unaudited)
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
August 31,
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
24,726
|
|
$
|
10,097
|
|
|
|
|
|
|
|
Receivables
|
|
|
217,066
|
|
|
231,309
|
|
|
|
|
|
|
|
Inventory
|
|
|
351,823
|
|
|
306,854
|
|
|
|
|
|
|
|
Total assets, current
|
|
|
635,081
|
|
|
587,903
|
|
|
|
|
|
|
|
Total assets
|
|
|
1,740,985
|
|
|
1,518,171
|
|
|
|
|
|
|
|
Total liabilities, current
|
|
|
769,021
|
|
|
360,673
|
|
|
|
|
|
|
|
Total long-term liabilities
|
|
|
170,154
|
|
|
186,775
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
801,810
|
|
|
970,723
|
|
|
|
|
|
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 August 31,
|
|
Six Months Ended August 31,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
18,839
|
|
$
|
23,318
|
|
$
|
35,237
|
|
$
|
37,709
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
3,986
|
|
|
2,208
|
|
|
7,382
|
|
|
5,128
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
1,863
|
|
|
4,902
|
|
|
5,221
|
|
|
8,278
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization, excluding amortized interest
|
|
|
9,993
|
|
|
7,991
|
|
|
18,493
|
|
|
16,438
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (Earnings before interest, taxes, depreciation and
amortization) (1)
|
|
$
|
34,681
|
|
$
|
38,419
|
|
$
|
66,333
|
|
$
|
67,553
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as calculated above (1)
|
|
$
|
34,681
|
|
$
|
38,419
|
|
$
|
66,333
|
|
$
|
67,553
|
|
|
|
|
|
|
|
|
|
|
|
Add: Non-cash share-based compensation (2)
|
|
|
1,917
|
|
|
3,419
|
|
|
3,212
|
|
|
6,797
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related expenses (4)
|
|
|
3,611
|
|
|
-
|
|
|
3,611
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash asset impairment charges (5)
|
|
|
-
|
|
|
-
|
|
|
9,000
|
|
|
12,049
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (1)
|
|
$
|
40,209
|
|
$
|
41,838
|
|
$
|
82,156
|
|
$
|
86,399
|
|
|
|
|
|
SELECTED OTHER DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures - EBITDA (Earnings
Before Interest, Taxes, Depreciation and Amortization) and Adjusted
EBITDA by Segment
|
|
(Unaudited)
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended August 31, 2014
|
|
|
|
Housewares
|
|
Healthcare /
Home Environment
|
|
Nutritional
Supplements (7)
|
|
Personal Care
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
$
|
13,891
|
|
$
|
4,508
|
|
$
|
110
|
|
$
|
6,094
|
|
$
|
24,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization, excluding amortized interest
|
|
|
889
|
|
|
5,027
|
|
|
1,359
|
|
|
2,718
|
|
|
9,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income / (expense)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
85
|
|
|
85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (Earnings before interest, taxes, depreciation and
amortization) (1)
|
|
$
|
14,780
|
|
$
|
9,535
|
|
$
|
1,469
|
|
$
|
8,897
|
|
$
|
34,681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as calculated above (1)
|
|
$
|
14,780
|
|
$
|
9,535
|
|
$
|
1,469
|
|
$
|
8,897
|
|
$
|
34,681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Non-cash share-based compensation (2)
|
|
|
260
|
|
|
81
|
|
|
-
|
|
|
1,576
|
|
|
1,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-Related Expenses (4)
|
|
|
-
|
|
|
-
|
|
|
3,611
|
|
|
-
|
|
|
3,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash asset impairment charges (5)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (1)
|
|
$
|
15,040
|
|
$
|
9,616
|
|
$
|
5,080
|
|
$
|
10,473
|
|
$
|
40,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended August 31, 2013
|
|
|
|
Housewares
|
|
Healthcare /
Home Environment
|
|
Nutritional
Supplements (7)
|
|
Personal Care
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
$
|
13,772
|
|
$
|
4,974
|
|
$
|
-
|
|
$
|
11,610
|
|
$
|
30,356
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization, excluding amortized interest
|
|
|
1,004
|
|
|
4,342
|
|
|
-
|
|
|
2,645
|
|
|
7,991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income / (expense)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
72
|
|
|
72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (Earnings before interest, taxes, depreciation and
amortization) (1)
|
|
$
|
14,776
|
|
$
|
9,316
|
|
$
|
-
|
|
$
|
14,327
|
|
$
|
38,419
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as calculated above (1)
|
|
$
|
14,776
|
|
$
|
9,316
|
|
$
|
-
|
|
$
|
14,327
|
|
$
|
38,419
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Non-cash share-based compensation (2)
|
|
|
481
|
|
|
932
|
|
|
-
|
|
|
2,006
|
|
|
3,419
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-Related Expenses (4)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash asset impairment charges (5)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (1)
|
|
$
|
15,257
|
|
$
|
10,248
|
|
$
|
-
|
|
$
|
16,333
|
|
$
|
41,838
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OTHER DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures - EBITDA (Earnings
Before Interest, Taxes, Depreciation and Amortization) and Adjusted
EBITDA by Segment
|
|
(Unaudited)
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended August 31, 2014
|
|
|
|
Housewares
|
|
Healthcare /
Home Environment
|
|
Nutritional
Supplements (7)
|
|
Personal Care
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
$
|
26,926
|
|
$
|
13,225
|
|
$
|
110
|
|
$
|
7,465
|
|
$
|
47,726
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization, excluding amortized interest
|
|
|
1,777
|
|
|
10,259
|
|
|
1,359
|
|
|
5,098
|
|
|
18,493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income / (expense)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
114
|
|
|
114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (Earnings before interest, taxes, depreciation and
amortization) (1)
|
|
$
|
28,703
|
|
$
|
23,484
|
|
$
|
1,469
|
|
$
|
12,677
|
|
$
|
66,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as calculated above (1)
|
|
$
|
28,703
|
|
$
|
23,484
|
|
$
|
1,469
|
|
$
|
12,677
|
|
$
|
66,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Non-cash share-based compensation (2)
|
|
|
534
|
|
|
662
|
|
|
-
|
|
|
2,016
|
|
|
3,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-Related Expenses (4)
|
|
|
-
|
|
|
-
|
|
|
3,611
|
|
|
-
|
|
|
3,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash asset impairment charges (5)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
9,000
|
|
|
9,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (1)
|
|
$
|
29,237
|
|
$
|
24,146
|
|
$
|
5,080
|
|
$
|
23,693
|
|
$
|
82,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended August 31, 2013
|
|
|
|
Housewares
|
|
Healthcare /
Home Environment
|
|
Nutritional
Supplements (7)
|
|
Personal Care
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
$
|
26,228
|
|
$
|
11,510
|
|
$
|
-
|
|
$
|
13,243
|
|
$
|
50,981
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization, excluding amortized interest
|
|
|
2,023
|
|
|
9,123
|
|
|
-
|
|
|
5,292
|
|
|
16,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income / (expense)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
134
|
|
|
134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (Earnings before interest, taxes, depreciation and
amortization) (1)
|
|
$
|
28,251
|
|
$
|
20,633
|
|
$
|
-
|
|
$
|
18,669
|
|
$
|
67,553
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as calculated above (1)
|
|
$
|
28,251
|
|
$
|
20,633
|
|
$
|
-
|
|
$
|
18,669
|
|
$
|
67,553
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Non-cash share-based compensation (2)
|
|
|
1,156
|
|
|
2,399
|
|
|
-
|
|
|
3,242
|
|
|
6,797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-Related Expenses (4)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash asset impairment charges (5)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
12,049
|
|
|
12,049
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (1)
|
|
$
|
29,407
|
|
$
|
23,032
|
|
$
|
-
|
|
$
|
33,960
|
|
$
|
86,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Reported Net Income and Earnings Per Share
(EPS) to Adjusted Income and Adjusted EPS
|
|
(dollars in thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended August 31,
|
|
Basic EPS
|
|
Diluted EPS
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income as reported (GAAP)
|
|
$
|
18,839
|
|
$
|
23,318
|
|
$
|
0.66
|
|
$
|
0.73
|
|
$
|
0.65
|
|
$
|
0.72
|
|
Non-cash share-based compensation, net of tax (2)
|
|
|
1,671
|
|
|
2,733
|
|
|
0.06
|
|
|
0.09
|
|
|
0.06
|
|
|
0.08
|
|
Amortization of intangible assets, net of tax (3)
|
|
|
5,732
|
|
|
5,190
|
|
|
0.20
|
|
|
0.16
|
|
|
0.20
|
|
|
0.16
|
|
Acquisition-related expenses, net of tax (4)
|
|
|
2,306
|
|
|
-
|
|
|
0.08
|
|
|
-
|
|
|
0.08
|
|
|
-
|
|
Adjusted income (non-GAAP) (1)
|
|
$
|
28,548
|
|
$
|
31,241
|
|
$
|
1.00
|
|
$
|
0.98
|
|
$
|
0.99
|
|
$
|
0.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock used in computing basic
and diluted earnings per share
|
|
|
|
|
|
|
28,372
|
|
|
31,993
|
|
|
28,769
|
|
|
32,272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended August 31,
|
|
Basic EPS
|
|
Diluted EPS
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income as reported (GAAP)
|
|
$
|
35,237
|
|
$
|
37,709
|
|
$
|
1.23
|
|
$
|
1.18
|
|
$
|
1.21
|
|
$
|
1.17
|
|
Non-cash share-based compensation, net of tax (2)
|
|
|
2,839
|
|
|
5,386
|
|
|
0.10
|
|
|
0.17
|
|
|
0.10
|
|
|
0.17
|
|
Amortization of intangible assets, net of tax (3)
|
|
|
10,774
|
|
|
10,404
|
|
|
0.37
|
|
|
0.33
|
|
|
0.37
|
|
|
0.32
|
|
Acquisition-related expenses, net of tax (4)
|
|
|
2,306
|
|
|
-
|
|
|
0.08
|
|
|
-
|
|
|
0.08
|
|
|
-
|
|
Asset impairment charges, net of tax (5)
|
|
|
8,155
|
|
|
12,034
|
|
|
0.28
|
|
|
0.38
|
|
|
0.28
|
|
|
0.37
|
|
Adjusted income (non-GAAP) (1)
|
|
$
|
59,311
|
|
$
|
65,533
|
|
$
|
2.06
|
|
$
|
2.05
|
|
$
|
2.03
|
|
$
|
2.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock used in computing basic
and diluted earnings per share
|
|
|
|
|
|
|
28,738
|
|
|
31,951
|
|
|
29,192
|
|
|
32,226
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Fiscal Year 2015 Reported Diluted Earnings Per
Share (EPS) to Adjusted Diluted EPS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outlook for the
|
|
Outlook for the
|
|
|
|
First Six Months
|
|
Last Six Months
|
|
Fiscal Year
|
|
|
|
Ended
|
|
Ended
|
|
Ended
|
|
|
|
August 31, 2014
|
|
February 28, 2015 (8)
|
|
February 28, 2015 (8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS, as reported (GAAP)
|
|
$
|
1.21
|
|
$
|
2.33
|
|
-
|
|
$
|
2.47
|
|
$
|
3.54
|
|
-
|
|
$
|
3.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash share-based compensation expense, net of tax (2)
|
|
|
0.10
|
|
|
|
|
|
|
0.11
|
|
|
|
|
|
|
0.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible asset amortization expense, net of tax (3)
|
|
|
0.37
|
|
|
|
|
|
|
0.39
|
|
|
|
|
|
|
0.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related expenses, net of tax (4)
|
|
|
0.08
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash asset impairment charges, net of tax (5)
|
|
|
0.28
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted EPS (non-GAAP) (1)
|
|
$
|
2.03
|
|
$
|
2.83
|
|
-
|
|
$
|
2.97
|
|
$
|
4.87
|
|
-
|
|
$
|
5.01
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES
|
|
|
|
Notes to Press Release
|
|
|
|
(1)
|
|
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 Condensed 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, provide
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.
|
|
|
|
|
|
(2)
|
|
Adjustments consist of non-cash share-based compensation expense of
$1.92 million ($1.67 million after tax) and $3.21 million ($2.84
million after tax), respectively, for the second quarter and first
six months of fiscal year 2015, and $3.42 million ($2.73 million
after tax) and $6.80 million ($5.39 million after tax),
respectively, for the second quarter and first six months of fiscal
year 2014. Share-based compensation expense is recognized for
share-based awards outstanding under share-based compensation plans.
These awards consist of stock options granted to certain officers,
employees and new hires, restricted stock grants to certain members
of the Company’s Board of Directors, and performance based
restricted stock awards granted to management.
|
|
|
|
|
|
(3)
|
|
Adjustments consist of non-cash intangible asset amortization
expense of $6.32 million ($5.73 million after tax) and $11.57
million ($10.77 million after tax), respectively, for the second
quarter and first six months of fiscal year 2015, and $5.41 million
($5.19 million after tax) and $10.84 million ($10.40 million after
tax), respectively, for the second quarter and first six months of
fiscal year 2014.
|
|
|
|
|
|
(4)
|
|
Adjustment consists of expenses of $3.61 million ($2.31 million
after tax) incurred in connection with the Healthy Directions
acquisition in the second quarter of fiscal year 2015.
|
|
|
|
|
|
(5)
|
|
Adjustments consist of non-cash asset impairment charges of $9.00
million ($8.16 million after tax) and $12.05 million ($12.03 million
after tax) recorded during the first quarters of fiscal years 2015
and 2014, respectively, as a result of our annual evaluation of
goodwill and indefinite-lived intangible assets for impairment. 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.
|
|
|
|
|
|
(6)
|
|
Total tax effects of adjustments described in Notes 2 through 5, for
each of the periods presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended August 31,
|
|
Six Months Ended August 31,
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax Effects of Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash share-based compensation (2)
|
|
$
|
246
|
|
$
|
686
|
|
$
|
373
|
|
$
|
1,411
|
|
|
|
|
|
|
Amortization of intangible assets (3)
|
|
|
583
|
|
|
218
|
|
|
800
|
|
|
435
|
|
|
|
|
|
|
Acquisition-related expenses (4)
|
|
|
1,305
|
|
|
-
|
|
|
1,305
|
|
|
-
|
|
|
|
|
|
|
Asset impairment charges (5)
|
|
|
-
|
|
|
-
|
|
|
845
|
|
|
15
|
|
|
|
|
|
|
Total
|
|
$
|
2,134
|
|
$
|
904
|
|
$
|
3,323
|
|
$
|
1,861
|
|
|
|
|
|
(7)
|
|
The Nutritional Supplements segment includes two months of operating
results for the second quarter and first six months of fiscal year
2015 as the segment was acquired on June 30, 2014.
|
|
|
|
|
|
(8)
|
|
The diluted EPS outlook is based on an estimated weighted average
shares outstanding of 29.2 million for the full fiscal year 2015.
|
Source: Helen of Troy Limited
Investors:
ICR, Inc.
Allison Malkin, 203-682-8200
Anne
Rakunas, 310-954-1113