-
Delivers Consolidated Net Sales Revenue Growth of 3.4%; Core
Business Increase of 2.2%
-
Delivers GAAP Diluted Earnings Per Share (EPS) of $0.22; Non-GAAP
Adjusted Diluted EPS of $1.37
-
Fiscal 2018 GAAP Diluted EPS Outlook of $4.54 to $4.87
-
Reiterates non-GAAP Adjusted Diluted EPS Outlook of $6.50 to $6.90
-
Reiterates Fiscal 2018 Outlook of Consolidated Net Sales of $1.56
to $1.60 billion; Growth of 1.5% to 4.1%
EL PASO, Texas--(BUSINESS WIRE)--
Helen of Troy Limited (NASDAQ:HELE), designer, developer and
worldwide marketer of consumer brand-name housewares, health and home,
nutritional supplement and beauty products, today reported results for
the three-month period ended May 31, 2017.
Executive Summary
-
Consolidated net sales revenue increase of 3.4% driven by a core
business increase of 2.2% and growth from acquisitions of 1.8%,
partially offset by a decline of 0.6% from foreign currency
fluctuations
-
Consolidated gross profit margin decrease of 0.3 percentage points
-
Consolidated SG&A as a percentage of sales improvement of 0.7
percentage points
-
Pre-tax non-cash asset impairment charges of $36.0 million, compared
to $7.4 million in the same period last year
-
GAAP operating loss of $3.2 million, or (0.9)% of net sales, compared
to operating income of $22.9 million, or 6.6% of net sales in the same
period last year
-
Non-GAAP adjusted operating income of $42.6 million, or 11.9% of net
sales, compared to $44.6 million, or 12.8% of net sales in the same
period last year
-
Cash flow from operations of $41.7 million
-
GAAP diluted EPS of $0.22 compared to $0.68 in the same period last
year
-
Non-GAAP adjusted diluted EPS of $1.37 compared to $1.27 in the same
period last year
Julien R. Mininberg, Chief Executive Officer, stated: “We are pleased to
report a solid start to our current fiscal year. Strong focus on our
strategic choices delivered net sales revenue growth of 3.4% and
adjusted diluted EPS growth of 7.9%. Core business net sales for our
leadership brands increased over 8% in the quarter, driven by
incremental growth investments, successful new product introductions,
online channel growth of over 30%, incremental distribution, and growth
in international sales. The quarter was led by our Housewares segment,
which increased sales by 16.3%, including growth in both Hydro Flask and
OXO. Health & Home grew core business net sales by 3.4% and improved its
profitability. In Beauty, core business net sales declined 1.4%, which
was better than our expectations, as product innovation contributed to
market share growth in the U.S. retail appliance category. In
Nutritional Supplements, while quarterly revenue was down 12% due
primarily to the transition to new systems, we believe we are now past
the majority of the system transition challenges and are encouraged by
the progress we are seeing from our omni-channel strategy. We are seeing
consistent improvement in many underlying leading indicators since
February such as a growing active buyer file, rising reactivation
purchases and climbing average daily sales.”
Mr. Mininberg continued: “We are pleased with our profit progress for
the quarter and believe we remain on track to achieve our full year
outlook. Our top line growth drove operating leverage which, combined
with tax benefits, more than offset a slight decline in gross profit
margin. Our business continues to generate solid adjusted diluted EPS
growth, even as we have made incremental investments in product
development, marketing and brand building to support growth in the
longer-term.”
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended May 31, 2017
|
|
|
|
|
|
|
Housewares
|
|
|
Health &
Home
|
|
|
Nutritional
Supplements
|
|
|
Beauty
|
|
|
Total
|
|
|
First quarter fiscal 2017 sales revenue, net
|
|
|
$
|
84,603
|
|
$
|
146,355
|
|
$
|
35,940
|
|
$
|
81,040
|
|
$
|
347,938
|
|
|
Core business
|
|
|
|
8,165
|
|
|
5,017
|
|
|
(4,321)
|
|
|
(1,117)
|
|
|
7,744
|
|
|
Impact of foreign currency
|
|
|
|
(488)
|
|
|
(1,106)
|
|
|
-
|
|
|
(631)
|
|
|
(2,225)
|
|
|
Acquisitions
|
|
|
|
6,148
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
6,148
|
|
|
Change in sales revenue, net
|
|
|
|
13,825
|
|
|
3,911
|
|
|
(4,321)
|
|
|
(1,748)
|
|
|
11,667
|
|
|
First quarter fiscal 2018 sales revenue, net
|
|
|
$
|
98,428
|
|
$
|
150,266
|
|
$
|
31,619
|
|
$
|
79,292
|
|
$
|
359,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net sales revenue growth
|
|
|
|
16.3
|
%
|
|
2.7
|
%
|
|
(12.0)
|
%
|
|
(2.2)
|
%
|
|
3.4
|
%
|
|
Core business
|
|
|
|
9.7
|
%
|
|
3.4
|
%
|
|
(12.0)
|
%
|
|
(1.4)
|
%
|
|
2.2
|
%
|
|
Impact of foreign currency
|
|
|
|
(0.6)
|
%
|
|
(0.8)
|
%
|
|
0.0
|
%
|
|
(0.8)
|
%
|
|
(0.6)
|
%
|
|
Acquisitions
|
|
|
|
7.3
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
1.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin (GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First quarter fiscal 2018
|
|
|
|
18.4
|
%
|
|
9.7
|
%
|
|
(109.4)
|
%
|
|
(1.6)
|
%
|
|
(0.9)
|
%
|
|
First quarter fiscal 2017
|
|
|
|
18.3
|
%
|
|
6.6
|
%
|
|
(14.7)
|
%
|
|
3.8
|
%
|
|
6.6
|
%
|
|
Adjusted operating margin (non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First quarter fiscal 2018
|
|
|
|
20.1
|
%
|
|
12.3
|
%
|
|
(1.8)
|
%
|
|
6.3
|
%
|
|
11.9
|
%
|
|
First quarter fiscal 2017
|
|
|
|
20.3
|
%
|
|
11.3
|
%
|
|
6.5
|
%
|
|
10.5
|
%
|
|
12.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Operating Results - First Quarter
Fiscal 2018 Compared to First Quarter Fiscal 2017
-
Consolidated net sales revenue increased 3.4% to $359.6 million
compared to $347.9 million, reflecting an increase in core business
net sales revenue of 2.2% and growth from acquisitions of 1.8%,
partially offset by a decline of 0.6% from foreign currency
fluctuations. The core business increase includes the contribution
from new product introductions, strong online channel growth,
incremental distribution, and growth in international sales, partially
offset by a decline in the Nutritional Supplements segment of 12.0%, a
decrease in the personal care category within Beauty, and the impact
of lower store traffic and soft consumer spending at traditional brick
and mortar retail.
-
Consolidated gross profit margin decreased 0.3 percentage points to
43.5% compared to 43.8%. The decline in consolidated gross profit
margin is primarily due to higher promotional spending with customers
and the unfavorable impact of foreign currency fluctuations.
-
Consolidated SG&A improved by 0.7 percentage points to 34.4% of net
sales compared to 35.1%. The improvement is primarily due to: (i) the
favorable comparative impact of a $1.5 million patent litigation
charge in the same period last year; (ii) lower share-based
compensation expense; (iii) lower license royalty expense; and (iv)
improved distribution and logistics efficiency and lower outbound
freight costs. These factors were partially offset by higher overall
marketing, advertising and new product development expense in support
of the Company’s leadership brands.
-
GAAP operating loss was $3.2 million, or (0.9)% of net sales, compared
to operating income of $22.9 million, or 6.6% of net sales in the same
period last year. Operating income (loss) includes pre-tax non-cash
impairment charges of $36.0 million compared to $7.4 million recorded
in the same period last year.
-
Income taxes provided a benefit of $12.8 million, compared to tax
expense of $0.4 million for the same period last year. Income taxes
for the three months ended May 31, 2017 include $12.9 million in tax
benefits from asset impairment charges, a $2.5 million benefit from
the recognition of excess tax benefits from share-based compensation
settlements and exercises and a $0.6 million benefit from the lapse of
the statute of limitations related to an uncertain tax position.
Income taxes for the three months ended May 31, 2016 include a $1.1
million tax benefit from the recognition of excess tax benefits from
share-based compensation settlements and exercises and a $1.4 million
benefit from the resolution of an uncertain tax position.
-
Net income was $5.9 million, or $0.22 per diluted share on 27.2
million weighted average diluted shares outstanding, compared to $19.0
million, or $0.68 per diluted share on 28.1 million weighted average
diluted shares outstanding. Net income includes after-tax non-cash
asset impairment charges of $23.1 million for the three months ended
May 31, 2017, compared to $5.1 million for the same period last year.
-
Adjusted EBITDA (EBITDA excluding non-cash asset impairment charges,
non‐cash share based compensation, and patent litigation charges, as
applicable) was $46.9 million compared to $48.4 million.
On an adjusted basis for the first quarters of fiscal 2018 and 2017,
excluding non-cash asset impairment charges, non‐cash share based
compensation, non-cash amortization of intangible assets, and patent
litigation charges, as applicable:
-
Adjusted operating income was $42.6 million, or 11.9% of net sales,
compared to $44.6 million, or 12.8% of net sales, primarily
reflecting: (i) lower operating leverage in the Nutritional
Supplements and Beauty segments; (ii) higher marketing, advertising
and new product development expense in support of the Company’s
leadership brands; and (iii) the unfavorable impact from foreign
currency fluctuations. These factors were partially offset by: (i) a
higher mix of Housewares sales at a higher operating margin; (ii)
lower license royalty expense; and (iii) improved distribution and
logistics efficiency and lower outbound freight costs.
-
Adjusted income increased to $37.4 million, or $1.37 per diluted
share, compared to $35.9 million, or $1.27 per diluted share,
primarily reflecting favorable tax expense and lower diluted shares
outstanding year-over-year.
Segment Operating Results - First Quarter
Fiscal 2018 Compared to First Quarter Fiscal 2017
Housewares net sales increased by 16.3% driven by a 9.7% increase in
core business net sales revenue, and a 7.3% contribution from
acquisitions. The core business increase reflects growth for both Hydro
Flask and OXO brands, with strong online channel sales, growth in bath,
infant, and kitchen organization categories, and expanded international
distribution, partially offset by lower promotional programs in the club
channel, and a reduction in the kitchen electrics product line
offerings. Segment growth from acquisitions represents an incremental
half-month of operating results from Hydro Flask compared to the same
period last year. Segment net sales were negatively impacted by
approximately 0.6% from foreign currency fluctuations. GAAP operating
margin was 18.4% compared to 18.3%. Adjusted operating margin decreased
0.2 percentage points primarily due to higher marketing, advertising and
new product development expense, and the unfavorable impact of foreign
currency fluctuations.
Health & Home core business net sales increased 3.4% reflecting
incremental distribution and shelf space gains with existing customers,
as well as growth in international sales. Growth was partially offset by
lower sales in certain categories due to unseasonal weather, and the
unfavorable impact of net foreign currency fluctuations of approximately
0.8%. GAAP operating margin was 9.7% compared to 6.6%. Adjusted
operating margin increased 1.0 percentage point reflecting improved
operating leverage, lower royalty expense, improved distribution and
logistics efficiency and lower outbound freight costs, and lower legal
fee expense. The increase was partially offset by an increase in new
product development expense and the unfavorable impact of foreign
currency fluctuations.
Beauty core business net sales decreased 1.4% primarily reflecting
declines in the personal care category due to competitive conditions,
partially offset by solid growth in professional appliance sales,
particularly in the online channel. GAAP operating margin was (1.6%)
compared to 3.8%. GAAP operating margin includes an asset impairment
charge of 5.0% of net sales compared to 3.0% in the same period last
year. Adjusted operating margin declined 4.2 percentage points
reflecting the net sales decline in personal care and its unfavorable
impact on sales mix and operating leverage, higher marketing and
advertising expense, and the unfavorable impact of foreign currency
fluctuations.
Nutritional Supplements core business net sales decreased 12.0%,
reflecting a decline in auto delivery revenues resulting primarily from
the transition to new order management and customer relationship
management systems, partially offset by increases in direct mail, online
and brick and mortar sales. The segment’s operating loss was $34.6
million compared to $5.3 million in the same period last year. The
Company recorded pre-tax non-cash asset impairment charges of $32.0
million compared to $5.0 million in the same period last year. Segment
adjusted operating loss was $0.6 million compared to adjusted operating
income of $2.3 million in the same period last year. The decrease in
adjusted operating income is primarily due to the net sales decline and
its unfavorable impact on operating leverage, and higher promotion,
advertising and customer acquisition costs, partially offset by lower
personnel expense. The Company continues to evaluate strategic
alternatives for this segment, which could include divestiture,
investments in online interface and e-commerce platforms, restructuring
or realignment programs, and consolidating operations and functions. The
Company believes that these alternatives are designed to enhance revenue
growth and profitability over the long term; however, in the short term,
certain of these alternatives may result in other charges or losses.
Balance Sheet Highlights - First Quarter Fiscal
2018 Compared to First Quarter Fiscal 2017
-
Cash and cash equivalents totaled $16.5 million, compared to $23.1
million
-
Total short- and long-term debt was $453.8 million, compared to $587.5
million, a net decrease of $133.7 million
-
Accounts receivable turnover was 54.4 days, compared to 54.1 days
-
Inventory was $312.0 million, compared to $319.2 million; inventory
turnover was 2.8 times in both periods
Fiscal 2018 Annual Outlook
For fiscal 2018, the Company continues to expect consolidated net sales
revenue in the range of $1.56 to $1.60 billion, which implies
consolidated sales growth of 1.5% to 4.1%. The Company’s net sales
outlook assumes that June 2017 foreign currency exchange rates will
remain constant for the remainder of the fiscal year, which is expected
to negatively impact year-over-year net sales revenue by approximately
$3 million, or 0.2 percentage points, and that the severity of the
cough/cold/flu season will be in line with long-term historical
averages. Finally, the Company’s net sales outlook reflects the
following expectations by segment:
-
Housewares net sales growth of 11% to 13%;
-
Health & Home net sales growth in the mid-single digits;
-
Beauty net sales decline in the mid-single digits; and
-
Nutritional Supplements net sales in line with fiscal 2017.
The Company expects consolidated GAAP diluted EPS of $4.54 to $4.87 and
adjusted diluted EPS (non-GAAP) in the range of $6.50 to $6.90, which
excludes after-tax asset impairment charges, share-based compensation
expense and intangible asset amortization expense. The Company’s diluted
EPS outlook assumes that June 2017 foreign currency exchange rates will
remain constant for the remainder of the fiscal year, which is expected
to negatively impact the year-over-year comparison by approximately
$0.07 per diluted share.
Consistent with the Company’s strategies of investing in core business
growth and consumer centric innovation, its outlook includes
approximately $0.90 per share year-over-year in incremental after-tax
growth investments expanding digital marketing, advertising, new product
development and e-commerce, primarily behind the Company’s leadership
brands. The diluted EPS outlook is based on an estimated weighted
average diluted shares outstanding of 27.4 million and an expected
effective tax rate of 10% to 12% for the remainder of fiscal year 2018.
The likelihood and potential impact of any fiscal 2018 acquisitions and
divestitures, future asset impairment charges, future foreign currency
fluctuations, or further 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 9:00 am Eastern Time
today, Monday, July 10, 2017. Investors and analysts interested in
participating in the call are invited to dial (877) 681-3372
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 12:00 p.m. Eastern
Time on July 10, 2017 until 11:59 p.m. Eastern Time on July 17, 2017 and
can be accessed by dialing (844) 512-2921 and entering replay pin number
9988726. A replay of the webcast will remain available on the website
for 60 days.
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 operating margin, 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.
About Helen of Troy Limited:
Helen of Troy Limited (NASDAQ: HELE) 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
OXO®, OXO Tot®, Hydro Flask®, Vicks®, Braun®, Honeywell®, PUR®,
Febreze®; Revlon®, Pro Beauty Tools®, Sure®, Pert®, Infusium23®, Brut®,
Ammens®, Hot Tools®, Bed Head®, Dr. Sinatra®, Dr. David Williams®, and
Dr. Whitaker®. All trademarks herein belong to Helen of Troy Limited (or
its affiliates) and/or are used under license from their respective
licensors.
For more information about Helen of Troy, please visit www.hotus.com.
Forward Looking Statements:
Certain written and oral statements made by our Company and
subsidiaries of our Company may constitute "forward-looking statements"
as defined under the Private Securities Litigation Reform Act of 1995.
This includes statements made in this press release. Generally, the
words "anticipates", "believes", "expects", "plans", "may", "will",
"should", "seeks", "estimates", "project", "predict", "potential",
"continue", "intends", and other similar words identify forward-looking
statements. All statements that address operating results, events or
developments that we expect or anticipate will occur in the future,
including statements related to sales, earnings per share results, and
statements expressing general expectations about future operating
results, are forward-looking statements and are based upon our current
expectations and various assumptions. We believe there is a reasonable
basis for our expectations and assumptions, but there can be no
assurance that we will realize our expectations or that our assumptions
will prove correct. Forward-looking statements are subject to risks that
could cause them to differ materially from actual results. Accordingly,
we caution readers not to place undue reliance on forward-looking
statements. 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, 2017 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, our
ability to deliver products to our customers in a timely manner and
according to their fulfillment standards, the costs of complying with
the business demands and requirements of large sophisticated customers,
our relationships with key customers and licensors, our dependence on
the strength of retail economies and vulnerabilities to any prolonged
economic downturn, our dependence on sales to several large customers
and the risks associated with any loss or substantial decline in sales
to top customers, expectations regarding our recent and future
acquisitions or divestitures, including our ability to realize
anticipated cost savings, synergies and other benefits along with our
ability to effectively integrate acquired businesses or separate
divested businesses, circumstances which may contribute to future
impairment of goodwill, intangible or other long-lived assets, the
retention and recruitment of key personnel, foreign currency exchange
rate fluctuations, disruptions in U.S., U.K., Euro zone, and other
international credit markets, risks associated with weather conditions,
the duration and severity of the cold and flu season and other related
factors, our dependence on foreign sources of supply and foreign
manufacturing, and associated operational risks including, but not
limited to, long lead times, consistent local labor availability and
capacity, and timely availability of sufficient shipping carrier
capacity, risks to the Nutritional Supplements segment associated with
the availability, purity and integrity of materials used in the
manufacture of vitamins, minerals and supplements, the impact of
changing costs of raw materials, labor and energy on cost of goods sold
and certain operating expenses, the geographic concentration and peak
season capacity of certain U.S. distribution facilities increases our
exposure to significant shipping disruptions and added shipping and
storage costs, our projections of product demand, sales and net income
are highly subjective in nature and future sales and net income could
vary in a material amount from such projections, the risks associated
with the use of trademarks licensed from and to third parties, our
ability to develop and introduce a continuing stream of new products to
meet changing consumer preferences, increased product liability and
reputational risks associated with the formulation and distribution of
vitamins, minerals and supplements, the risks associated with potential
adverse publicity and negative public perception regarding the use of
vitamins, minerals and supplements, trade barriers, exchange controls,
expropriations, and other risks associated with U.S. and foreign
operations, the risks to our liquidity as a result of changes to capital
market conditions and other constraints or events that impose
constraints on our cash resources and ability to operate our business,
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 new
government regulations covering vitamins, minerals and supplements, the
risks associated with product recalls, product liability, other claims,
and related litigation against us, the risks associated with accounting
for tax positions, tax audits and related disputes with taxing
authorities, the risks of potential changes in laws in the U.S. or
abroad, including tax laws, regulations or treaties, employment and
health insurance laws and regulations, and laws relating to
environmental policy, financial regulation, transportation policy and
infrastructure policy along with the costs and complexities of
compliance with such laws, and our ability to continue to avoid
classification as a controlled foreign corporation. We undertake no
obligation to publicly update or revise any forward-looking statements
as a result of new information, future events or otherwise.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES
|
|
|
|
Consolidated Condensed Statements of Income
|
|
(Unaudited)
|
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended May 31,
|
|
|
|
|
|
2017
|
|
|
2016
|
|
Sales revenue, net
|
|
|
|
$
|
359,605
|
|
100.0
|
%
|
|
|
$
|
347,938
|
|
100.0
|
%
|
|
Cost of goods sold
|
|
|
|
|
203,156
|
|
56.5
|
%
|
|
|
|
195,511
|
|
56.2
|
%
|
|
Gross profit
|
|
|
|
|
156,449
|
|
43.5
|
%
|
|
|
|
152,427
|
|
43.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expense ("SG&A")
|
|
|
|
|
123,683
|
|
34.4
|
%
|
|
|
|
122,129
|
|
35.1
|
%
|
|
Asset impairment charges
|
|
|
|
|
36,000
|
|
10.0
|
%
|
|
|
|
7,400
|
|
2.1
|
%
|
|
Operating income (loss)
|
|
|
|
|
(3,234)
|
|
(0.9)
|
%
|
|
|
|
22,898
|
|
6.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income, net
|
|
|
|
|
166
|
|
-
|
%
|
|
|
|
149
|
|
-
|
%
|
|
Interest expense
|
|
|
|
|
(3,839)
|
|
(1.1)
|
%
|
|
|
|
(3,651)
|
|
(1.0)
|
%
|
|
Income (loss) before income taxes
|
|
|
|
|
(6,907)
|
|
(1.9)
|
%
|
|
|
|
19,396
|
|
5.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit)
|
|
|
|
|
(12,775)
|
|
(3.6)
|
%
|
|
|
|
370
|
|
0.1
|
%
|
|
Net income
|
|
|
|
$
|
5,868
|
|
1.6
|
%
|
|
|
$
|
19,026
|
|
5.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
|
|
$
|
0.22
|
|
|
|
|
|
$
|
0.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock used in computing diluted EPS
|
|
|
|
|
27,245
|
|
|
|
|
|
|
28,147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES
|
|
|
|
Net Sales Revenue by Segment
|
|
(Unaudited)
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended May 31,
|
|
|
|
|
|
|
|
% of Sales Revenue, net
|
|
|
|
|
|
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|
|
2017
|
|
|
2016
|
|
|
Sales revenue by segment, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Housewares
|
|
|
|
$
|
98,428
|
|
$
|
84,603
|
|
$
|
13,825
|
|
16.3
|
%
|
|
27.4
|
%
|
|
24.3
|
%
|
|
Health & Home
|
|
|
|
|
150,266
|
|
|
146,355
|
|
|
3,911
|
|
2.7
|
%
|
|
41.8
|
%
|
|
42.1
|
%
|
|
Nutritional Supplements
|
|
|
|
|
31,619
|
|
|
35,940
|
|
|
(4,321)
|
|
(12.0)
|
%
|
|
8.8
|
%
|
|
10.3
|
%
|
|
Beauty
|
|
|
|
|
79,292
|
|
|
81,040
|
|
|
(1,748)
|
|
(2.2)
|
%
|
|
22.0
|
%
|
|
23.3
|
%
|
|
Total sales revenue, net
|
|
|
|
$
|
359,605
|
|
$
|
347,938
|
|
$
|
11,667
|
|
3.4
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES
|
|
|
|
Consolidated and Segment Net Sales
|
|
(Unaudited)
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended May 31, 2017
|
|
|
|
|
|
|
|
Housewares (a)
|
|
|
Health &
Home
|
|
|
Nutritional
Supplements
|
|
|
Beauty
|
|
|
Total
|
|
|
First quarter fiscal 2017 sales revenue, net
|
|
|
|
$
|
84,603
|
|
$
|
146,355
|
|
$
|
35,940
|
|
$
|
81,040
|
|
$
|
347,938
|
|
|
Core business
|
|
|
|
|
8,165
|
|
|
5,017
|
|
|
(4,321)
|
|
|
(1,117)
|
|
|
7,744
|
|
|
Impact of foreign currency
|
|
|
|
|
(488)
|
|
|
(1,106)
|
|
|
-
|
|
|
(631)
|
|
|
(2,225)
|
|
|
Acquisitions
|
|
|
|
|
6,148
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
6,148
|
|
|
Change in sales revenue, net
|
|
|
|
|
13,825
|
|
|
3,911
|
|
|
(4,321)
|
|
|
(1,748)
|
|
|
11,667
|
|
|
First quarter fiscal 2018 sales revenue, net
|
|
|
|
$
|
98,428
|
|
$
|
150,266
|
|
$
|
31,619
|
|
$
|
79,292
|
|
$
|
359,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net sales revenue growth
|
|
|
|
|
16.3
|
%
|
|
2.7
|
%
|
|
(12.0)
|
%
|
|
(2.2)
|
%
|
|
3.4
|
%
|
|
Core business
|
|
|
|
|
9.7
|
%
|
|
3.4
|
%
|
|
(12.0)
|
%
|
|
(1.4)
|
%
|
|
2.2
|
%
|
|
Impact of foreign currency
|
|
|
|
|
(0.6)
|
%
|
|
(0.8)
|
%
|
|
0.0
|
%
|
|
(0.8)
|
%
|
|
(0.6)
|
%
|
|
Acquisitions
|
|
|
|
|
7.3
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
1.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin (GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First quarter fiscal 2018
|
|
|
|
|
18.4
|
%
|
|
9.7
|
%
|
|
(109.4)
|
%
|
|
(1.6)
|
%
|
|
(0.9)
|
%
|
|
First quarter fiscal 2017
|
|
|
|
|
18.3
|
%
|
|
6.6
|
%
|
|
(14.7)
|
%
|
|
3.8
|
%
|
|
6.6
|
%
|
|
Adjusted operating margin (non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First quarter fiscal 2018
|
|
|
|
|
20.1
|
%
|
|
12.3
|
%
|
|
(1.8)
|
%
|
|
6.3
|
%
|
|
11.9
|
%
|
|
First quarter fiscal 2017
|
|
|
|
|
20.3
|
%
|
|
11.3
|
%
|
|
6.5
|
%
|
|
10.5
|
%
|
|
12.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
___________________________
|
|
(a)
|
|
Includes approximately one-half month of incremental operating
results from Hydro Flask, which was acquired on March 18, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES
|
|
|
|
Selected Consolidated Balance Sheet, Cash Flow and Liquidity
Information
|
|
(Unaudited)
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May 31,
|
|
|
|
|
|
2017
|
|
2016
|
|
Balance Sheet:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
16,508
|
|
$
|
23,115
|
|
Receivables, net
|
|
|
|
|
207,795
|
|
|
204,544
|
|
Inventory, net
|
|
|
|
|
312,025
|
|
|
319,249
|
|
Total assets, current
|
|
|
|
|
551,144
|
|
|
560,409
|
|
Total assets
|
|
|
|
|
1,774,683
|
|
|
1,841,516
|
|
Total liabilities, current
|
|
|
|
|
290,798
|
|
|
277,386
|
|
Total long-term liabilities
|
|
|
|
|
459,446
|
|
|
607,659
|
|
Total debt
|
|
|
|
|
453,841
|
|
|
587,491
|
|
Stockholders' equity
|
|
|
|
|
1,024,439
|
|
|
956,471
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity:
|
|
|
|
|
|
|
|
|
|
Working capital
|
|
|
|
$
|
260,346
|
|
$
|
283,023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended May 31,
|
|
|
|
|
|
2017
|
|
2016
|
|
Cash Flow:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
$
|
10,797
|
|
$
|
10,956
|
|
Net cash provided by operating activities
|
|
|
|
|
41,743
|
|
|
41,736
|
|
Capital and intangible asset expenditures
|
|
|
|
|
13,027
|
|
|
5,154
|
|
Payments to acquire businesses, net of cash received
|
|
|
|
|
-
|
|
|
209,258
|
|
Net amounts repaid
|
|
|
|
|
(32,100)
|
|
|
(32,700)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OTHER DATA
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures – GAAP Operating
Income (Loss)
|
|
|
to Adjusted Operating Income (non-GAAP) (1)
|
|
|
(Unaudited)
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended May 31, 2017
|
|
|
|
|
|
|
Housewares
|
|
|
Health & Home
|
|
|
Nutritional
Supplements
|
|
|
Beauty
|
|
|
Total
|
|
|
Operating income (loss), as reported (GAAP)
|
|
|
|
$
|
18,106
|
|
18.4
|
%
|
|
$
|
14,560
|
|
9.7
|
%
|
|
$
|
(34,599)
|
|
(109.4)
|
%
|
|
$
|
(1,301)
|
|
(1.6)
|
%
|
|
$
|
(3,234)
|
|
(0.9)
|
%
|
|
Asset impairment charges (2)
|
|
|
|
|
-
|
|
-
|
%
|
|
|
-
|
|
-
|
%
|
|
|
32,000
|
|
101.2
|
%
|
|
|
4,000
|
|
5.0
|
%
|
|
|
36,000
|
|
10.0
|
%
|
|
Subtotal
|
|
|
|
|
18,106
|
|
18.4
|
%
|
|
|
14,560
|
|
9.7
|
%
|
|
|
(2,599)
|
|
(8.2)
|
%
|
|
|
2,699
|
|
3.4
|
%
|
|
|
32,766
|
|
9.1
|
%
|
|
Amortization of intangible assets (4)
|
|
|
|
|
644
|
|
0.7
|
%
|
|
|
2,786
|
|
1.9
|
%
|
|
|
1,838
|
|
5.8
|
%
|
|
|
1,417
|
|
1.8
|
%
|
|
|
6,685
|
|
1.9
|
%
|
|
Non-cash share-based compensation (5)
|
|
|
|
|
1,024
|
|
1.0
|
%
|
|
|
1,080
|
|
0.7
|
%
|
|
|
181
|
|
0.6
|
%
|
|
|
906
|
|
1.1
|
%
|
|
|
3,191
|
|
0.9
|
%
|
|
Adjusted operating income (loss) (non-GAAP)
|
|
|
|
$
|
19,774
|
|
20.1
|
%
|
|
$
|
18,426
|
|
12.3
|
%
|
|
$
|
(580)
|
|
(1.8)
|
%
|
|
$
|
5,022
|
|
6.3
|
%
|
|
$
|
42,642
|
|
11.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended May 31, 2016
|
|
|
|
|
|
|
Housewares
|
|
|
Health & Home
|
|
|
Nutritional
Supplements
|
|
|
Beauty
|
|
|
Total
|
|
|
Operating income (loss), as reported (GAAP)
|
|
|
|
$
|
15,500
|
|
18.3
|
%
|
|
$
|
9,604
|
|
6.6
|
%
|
|
$
|
(5,272)
|
|
(14.7)
|
%
|
|
$
|
3,066
|
|
3.8
|
%
|
|
$
|
22,898
|
|
6.6
|
%
|
|
Asset impairment charges (2)
|
|
|
|
|
-
|
|
-
|
%
|
|
|
-
|
|
-
|
%
|
|
|
5,000
|
|
13.9
|
%
|
|
|
2,400
|
|
3.0
|
%
|
|
|
7,400
|
|
2.1
|
%
|
|
Patent litigation charge (3)
|
|
|
|
|
-
|
|
-
|
%
|
|
|
1,468
|
|
1.0
|
%
|
|
|
-
|
|
-
|
%
|
|
|
-
|
|
-
|
%
|
|
|
1,468
|
|
0.4
|
%
|
|
Subtotal
|
|
|
|
|
15,500
|
|
18.3
|
%
|
|
|
11,072
|
|
7.6
|
%
|
|
|
(272)
|
|
(0.8)
|
%
|
|
|
5,466
|
|
6.7
|
%
|
|
|
31,766
|
|
9.1
|
%
|
|
Amortization of intangible assets (4)
|
|
|
|
|
657
|
|
0.8
|
%
|
|
|
3,538
|
|
2.4
|
%
|
|
|
1,571
|
|
4.4
|
%
|
|
|
1,438
|
|
1.8
|
%
|
|
|
7,204
|
|
2.1
|
%
|
|
Non-cash share-based compensation (5)
|
|
|
|
|
1,028
|
|
1.2
|
%
|
|
|
1,910
|
|
1.3
|
%
|
|
|
1,032
|
|
2.9
|
%
|
|
|
1,644
|
|
2.0
|
%
|
|
|
5,614
|
|
1.6
|
%
|
|
Adjusted operating income (non-GAAP)
|
|
|
|
$
|
17,185
|
|
20.3
|
%
|
|
$
|
16,520
|
|
11.3
|
%
|
|
$
|
2,331
|
|
6.5
|
%
|
|
$
|
8,548
|
|
10.5
|
%
|
|
$
|
44,584
|
|
12.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OTHER DATA
|
|
|
|
Reconciliation of Non-GAAP Financial Measures - EBITDA
|
|
(Earnings Before Interest, Taxes, Depreciation and Amortization)
and Adjusted EBITDA (1)
|
|
(Unaudited)
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended May 31,
|
|
|
|
|
|
2017
|
|
2016
|
|
Net income (GAAP)
|
|
|
|
$
|
5,868
|
|
$
|
19,026
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
|
3,786
|
|
|
3,608
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit)
|
|
|
|
|
(12,775)
|
|
|
370
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization, excluding amortized interest
|
|
|
|
|
10,797
|
|
|
10,956
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (non-GAAP)
|
|
|
|
|
7,676
|
|
|
33,960
|
|
|
|
|
|
|
|
|
|
|
|
Add: Non-cash asset impairment charges (2)
|
|
|
|
|
36,000
|
|
|
7,400
|
|
|
|
|
|
|
|
|
|
|
|
Patent litigation charge (3)
|
|
|
|
|
-
|
|
|
1,468
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash share-based compensation (4)
|
|
|
|
|
3,191
|
|
|
5,614
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (non-GAAP)
|
|
|
|
$
|
46,867
|
|
$
|
48,442
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OTHER DATA
|
|
|
|
Reconciliation of Non-GAAP Financial Measures - EBITDA
|
|
(Earnings Before Interest, Taxes, Depreciation and Amortization)
and Adjusted EBITDA by Segment (1)
|
|
(Unaudited)
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended May 31, 2017
|
|
|
|
|
|
Housewares
|
|
Health &
Home
|
|
Nutritional
Supplements
|
|
Beauty
|
|
Total
|
|
Operating Income (loss) (GAAP)
|
|
|
|
$
|
18,106
|
|
$
|
14,560
|
|
$
|
(34,599)
|
|
$
|
(1,301)
|
|
$
|
(3,234)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization, excluding amortized interest
|
|
|
|
|
1,427
|
|
|
4,138
|
|
|
2,456
|
|
|
2,776
|
|
|
10,797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income, net
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
113
|
|
|
113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (non-GAAP)
|
|
|
|
|
19,533
|
|
|
18,698
|
|
|
(32,143)
|
|
|
1,588
|
|
|
7,676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Non-cash asset impairment charges (2)
|
|
|
|
|
-
|
|
|
-
|
|
|
32,000
|
|
|
4,000
|
|
|
36,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash share-based compensation (4)
|
|
|
|
|
1,024
|
|
|
1,080
|
|
|
181
|
|
|
906
|
|
|
3,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (non-GAAP)
|
|
|
|
$
|
20,557
|
|
$
|
19,778
|
|
$
|
38
|
|
$
|
6,494
|
|
$
|
46,867
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended May 31, 2016
|
|
|
|
|
|
Housewares
|
|
Health &
Home
|
|
Nutritional
Supplements
|
|
Beauty
|
|
Total
|
|
Operating Income (loss) (GAAP)
|
|
|
|
$
|
15,500
|
|
$
|
9,604
|
|
$
|
(5,272)
|
|
$
|
3,066
|
|
$
|
22,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization, excluding amortized interest
|
|
|
|
|
1,329
|
|
|
5,233
|
|
|
1,960
|
|
|
2,434
|
|
|
10,956
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income, net
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
106
|
|
|
106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (non-GAAP)
|
|
|
|
|
16,829
|
|
|
14,837
|
|
|
(3,312)
|
|
|
5,606
|
|
|
33,960
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Non-cash asset impairment charges (2)
|
|
|
|
|
-
|
|
|
-
|
|
|
5,000
|
|
|
2,400
|
|
|
7,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patent litigation charge (3)
|
|
|
|
|
-
|
|
|
1,468
|
|
|
-
|
|
|
-
|
|
|
1,468
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash share-based compensation (4)
|
|
|
|
|
1,028
|
|
|
1,910
|
|
|
1,032
|
|
|
1,644
|
|
|
5,614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (non-GAAP)
|
|
|
|
$
|
17,857
|
|
$
|
18,215
|
|
$
|
2,720
|
|
$
|
9,650
|
|
$
|
48,442
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES
|
|
|
|
Reconciliation of GAAP Net Income and Earnings Per Share (EPS)
to Adjusted Income and Adjusted EPS (non-GAAP) (1) (6)
|
|
(Unaudited)
|
|
(dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended May 31,
|
|
Basic EPS
|
|
Diluted EPS
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Net income as reported (GAAP)
|
|
|
|
$
|
5,868
|
|
$
|
19,026
|
|
$
|
0.22
|
|
$
|
0.69
|
|
$
|
0.22
|
|
$
|
0.68
|
|
Asset impairment charges, net of tax (2)
|
|
|
|
|
23,128
|
|
|
5,097
|
|
|
0.85
|
|
|
0.18
|
|
|
0.85
|
|
|
0.18
|
|
Patent litigation charge, net of tax (3)
|
|
|
|
|
-
|
|
|
1,464
|
|
|
-
|
|
|
0.05
|
|
|
-
|
|
|
0.05
|
|
Subtotal
|
|
|
|
|
28,996
|
|
|
25,587
|
|
|
1.07
|
|
|
0.92
|
|
|
1.06
|
|
|
0.91
|
|
Amortization of intangible assets, net of tax (4)
|
|
|
|
|
5,742
|
|
|
6,202
|
|
|
0.21
|
|
|
0.22
|
|
|
0.21
|
|
|
0.22
|
|
Non-cash share-based compensation, net of tax (5)
|
|
|
|
|
2,701
|
|
|
4,093
|
|
|
0.10
|
|
|
0.15
|
|
|
0.10
|
|
|
0.15
|
|
Adjusted income (non-GAAP)
|
|
|
|
$
|
37,439
|
|
$
|
35,882
|
|
$
|
1.38
|
|
$
|
1.29
|
|
$
|
1.37
|
|
$
|
1.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock used in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
computing basic and diluted EPS
|
|
|
|
|
|
|
|
|
|
|
27,076
|
|
|
27,773
|
|
|
27,245
|
|
|
28,147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES
|
|
|
|
Reconciliation of Fiscal Year 2018 Outlook for GAAP Diluted EPS
|
|
to Adjusted Diluted EPS (non-GAAP) (1) (6) (7)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended February 28, 2018
|
|
|
|
|
|
Three Months
Ended May 31, 2017
|
|
Outlook for the
Balance of the
Fiscal
Year
(Nine Months)
|
|
Outlook for the
Fiscal Year
(Twelve
Months)
|
|
Diluted EPS, as reported (GAAP)
|
|
|
|
$
|
0.22
|
|
$
|
4.32
|
-
|
$
|
4.65
|
|
$
|
4.54
|
-
|
$
|
4.87
|
|
Asset impairment charges, net of tax (2)
|
|
|
|
|
0.85
|
|
|
-
|
-
|
|
-
|
|
|
0.85
|
-
|
|
0.85
|
|
Subtotal
|
|
|
|
|
1.06
|
|
|
4.32
|
-
|
|
4.65
|
|
|
5.38
|
-
|
|
5.71
|
|
Amortization of intangible assets, net of tax (4)
|
|
|
|
|
0.21
|
|
|
0.58
|
-
|
|
0.60
|
|
|
0.79
|
-
|
|
0.81
|
|
Non-cash share-based compensation, net of tax (5)
|
|
|
|
|
0.10
|
|
|
0.23
|
-
|
|
0.28
|
|
|
0.33
|
-
|
|
0.38
|
|
Adjusted diluted EPS (non-GAAP)
|
|
|
|
$
|
1.37
|
|
$
|
5.13
|
-
|
$
|
5.53
|
|
$
|
6.50
|
-
|
$
|
6.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES
|
____________________
|
|
Notes to Press Release
|
|
|
|
(1)
|
|
This press release contains non-GAAP financial measures. Adjusted
operating income, adjusted operating margin, 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. We believe that these
non-GAAP financial measures, in combination with the Company’s
financial results calculated in accordance with GAAP, provide
investors with additional perspective regarding the impact of such
charges on net income and earnings per share. We also believe that
these non-GAAP measures facilitate a more direct comparison of the
Company’s performance with its competitors. We further believe that
including the excluded charges would not accurately reflect the
underlying performance of the Company’s continuing operations for
the period in which the charges are incurred, even though such
charges may be incurred and reflected in the Company’s GAAP
financial results in the near future. Additionally, the non-GAAP
financial measures are used by management for measuring and
evaluating the Company’s performance. 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 periods 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 asset impairment charges of $36.0
million ($23.1 million after tax) and $7.4 million ($5.1 million
after tax) for the three months ended May 31, 2017 and 2016,
respectively.
|
|
|
|
(3)
|
|
Adjustments consist of patent litigation charges of $1.5 million
(before and after tax) recorded during the three months ended May
31, 2016.
|
|
|
|
(4)
|
|
Adjustments consist of non-cash intangible asset amortization
expense of $6.7 million ($5.7 million after tax) and $7.2 million
($6.2 million after tax) for the three months ended May 31, 2017 and
2016, respectively.
|
|
|
|
(5)
|
|
Adjustments consist of non-cash share-based compensation expense of
$3.2 million ($2.7 million after tax) and $5.6 million ($4.1 million
after tax) for the three months ended May 31, 2017 and 2016,
respectively.
|
|
|
|
(6)
|
|
Total tax effects of adjustments described in Notes 2 through 5, for
each of the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended May 31,
|
|
(In thousands)
|
|
|
|
2017
|
|
2016
|
|
Asset impairment charges (2)
|
|
|
|
$
|
(12,872)
|
|
$
|
(2,303)
|
|
Patent litigation charge (3)
|
|
|
|
|
-
|
|
|
(4)
|
|
Amortization of intangible assets (4)
|
|
|
|
|
(943)
|
|
|
(1,002)
|
|
Non-cash share-based compensation (5)
|
|
|
|
|
(490)
|
|
|
(1,521)
|
|
Total
|
|
|
|
$
|
(14,305)
|
|
$
|
(4,830)
|
|
|
|
|
|
|
|
|
|
|
|
(7)
|
|
The diluted EPS outlook is based on an estimated weighted average
shares outstanding of 27.4 million for fiscal year 2018.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170710005450/en/
Source: Helen of Troy Limited