-
GAAP Diluted Earnings Per Share (EPS) of $2.07; Non-GAAP Adjusted
Diluted EPS of $2.37
-
Updates Net Sales Revenue Outlook
-
Raises GAAP Diluted EPS and Non-GAAP Adjusted Diluted EPS Outlook
EL PASO, Texas--(BUSINESS WIRE)--Jan. 5, 2017--
Helen of Troy Limited (NASDAQ, NM: 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 November 30, 2016.
Executive Summary
-
Consolidated net sales decline of 0.2%, which includes the negative
impacts of approximately 1.6 percentage points from Venezuela
re-measurement, 0.8 percentage points from foreign currency
fluctuations and 2.4 percentage points from business rationalization
-
Hydro Flask net sales of $34.3 million and diluted EPS of $0.38
-
Beauty, Housewares and Nutritional Supplements net sales in line
with Company expectations despite unfavorable currency impacts of
1.5 and 0.9 percentage points in Beauty and Housewares,
respectively
-
Health & Home net sales below expectations driven by a below
average start to the cough/cold/flu season and unfavorable currency
-
Consolidated gross profit margin expansion of 2.7 percentage points;
1.2 percentage point expansion from the core business
-
Reported operating income of $63.3 million, or 14.2% of net sales,
including an unfavorable impact of 0.5 percentage points from
Venezuela, compared to $55.6 million, or 12.5% of net sales in the
same period last year
-
Non-GAAP adjusted operating income of $73.4 million compared to $71.4
million in the same period last year, an increase in adjusted
operating margin of 0.5 percentage points, including an unfavorable
impact of 0.4 percentage points from Venezuela
-
Cash flow from operations increase of $32.0 million, or 149%, to $53.5
million from $21.5 million in the same period last year
-
Reported diluted EPS of $2.07, an increase of 27.0% from $1.63 in the
same period last year
-
Non-GAAP adjusted diluted EPS of $2.37, an increase of 14.5% from
$2.07 in the same period last year
-
Updates fiscal year 2017 net sales revenue guidance to a range of
$1.520 to $1.550 billion from a range of $1.550 to $1.590 billion due
primarily to expected continued weakness of the cough/cold/flu season
-
Raises fiscal year 2017 GAAP diluted EPS guidance to a range of $4.72
to $4.92 from a range of $4.37 to $4.77
-
Raises fiscal year 2017 non-GAAP adjusted diluted EPS to a range of
$6.20 to $6.50 from a range of $5.85 to $6.35
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|
|
Net Sales Revenue
|
|
Operating Margin
|
|
Adj Operating Margin
|
|
|
Q3 FY2017
|
|
Q3 FY2016
|
|
$ Change
|
|
% Change
|
|
Q3 FY2017
|
|
Q3 FY2016
|
|
Q3 FY2017
|
|
Q3 FY2016
|
|
Housewares
|
$
|
124,723
|
|
$
|
87,816
|
|
$
|
36,907
|
|
42.0
|
%
|
|
23.4
|
%
|
|
17.7
|
%
|
|
24.5
|
%
|
|
19.9
|
%
|
|
Health & Home
|
|
179,842
|
|
|
186,418
|
|
|
(6,576)
|
|
(3.5)
|
%
|
|
11.2
|
%
|
|
9.7
|
%
|
|
13.7
|
%
|
|
13.4
|
%
|
|
Nutritional Supplements
|
|
32,163
|
|
|
37,492
|
|
|
(5,329)
|
|
(14.2)
|
%
|
|
(0.2)
|
%
|
|
8.1
|
%
|
|
5.8
|
%
|
|
15.2
|
%
|
|
Beauty
|
|
107,686
|
|
|
133,777
|
|
|
(26,091)
|
|
(19.5)
|
%
|
|
13.0
|
%
|
|
14.2
|
%
|
|
15.3
|
%
|
|
17.4
|
%
|
|
Total
|
$
|
444,414
|
|
$
|
445,503
|
|
|
(1,089)
|
|
(0.2)
|
%
|
|
14.2
|
%
|
|
12.5
|
%
|
|
16.5
|
%
|
|
16.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
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In addition, the Company:
-
repurchased 922,731 shares of its common stock in the open market
during the quarter for $75 million;
-
recently expanded the commitment under its revolving credit facility
from $650 million to $1.0 billion and increased its leverage capacity
for acquisitions;
-
announced that Thurman Case has joined the Helen of Troy Board as of
January 1, 2017; and
-
announces that Jay Caron will join the Company as Chief Supply Chain
Officer effective January 9, 2017.
Julien R. Mininberg, Chief Executive Officer, stated: “Our
transformation strategy, combined with the ongoing benefits of our
diversified business model, led to a strong quarter of profitability
highlighted by a 270 basis point increase in gross profit margin and a
14.5% increase in adjusted EPS. We were pleased to achieve this
performance on slightly lower consolidated net revenue, driven by the
continued strength of our Hydro Flask business, our efforts to sweeten
our core business sales mix and further operational efficiencies from
our shared services platform. Our focus on the disciplined management of
our business and balance sheet resulted in a 149% increase in cash flow
from operations, allowing us to repurchase $75 million of our common
shares with only a small increase in leverage. Hydro Flask contributed
$34.3 million of net sales to our Housewares segment and was accretive
to the segment’s operating margin. Housewares also grew sales and
expanded operating margin in its core business. Health & Home continued
its trend of margin expansion even as a below average start to the
cough/cold/flu season weighed on sales. Beauty segment sales declined in
line with our guidance, but reflected a sequential improvement from the
second quarter. Beauty’s sales performance continues to be impacted by
our efforts to rationalize lower margin and non-strategic business,
Venezuela re-measurement, unexpected retail holiday inventory reductions
and even further deterioration in foreign currency, which have
overshadowed the success of new innovations. In Nutritional Supplements,
sales declined in line with guidance as we continue the strategic
transition from offline channels to online, while investing in system
upgrades and a significant range of new marketing initiatives to attract
and convert a broader base of consumers.”
Mr. Mininberg continued: “Just after quarter end, we expanded the
commitment under our revolving credit facility to $1 billion, adding
$350 million in additional borrowing capacity. The amended credit
agreement also increases the debt leverage allowed for acquisitions. We
believe the increase to this facility on favorable terms positions us
well for additional acquisition opportunities that meet our disciplined
criteria.
“We are pleased to have delivered three strong quarters of profitability
so far this fiscal year and are now raising our adjusted EPS guidance
for the full year to a range of $6.20 to $6.50,” Mr. Mininberg stated
further. “This increase comes even as we make additional investments in
key brands such as PUR, OXO, and Hydro Flask in the fourth quarter. As
we enter the final quarter of the year, we now believe it is prudent to
lower our annual consolidated net revenue range to reflect the
expectation that the cough/cold/flu season will remain below average and
the unfavorable currency environment will remain at current levels. We
remain confident in our strategies and believe our continued focus on
product innovation, market share gains and margin expansion will lead to
long term growth in sales at increasing rates of profitability. We
believe this has us poised to increase value for Helen of Troy
stakeholders.”
Third Quarter Fiscal Year 2017 Consolidated
Operating Results
-
Net sales revenue decreased 0.2% to $444.4 million compared to $445.5
million in the third quarter of fiscal year 2016. Core business net
sales revenue decreased $35.4 million, or 8.0%, which includes
negative year-over-year impacts from Venezuela and foreign currency
fluctuations of 1.6 and 0.8 percentage points, respectively. The core
business decline also includes strategic decisions to rationalize
certain lower margin business to improve long-term profitability,
which negatively impacted net sales by approximately 2.4 percentage
points year-over-year.
-
Gross profit margin increased 2.7 percentage points to 43.7% compared
to 41.0% for the same period last year. The increase in consolidated
gross profit margin is primarily due to favorable shifts in our core
business sales mix, product rationalization efforts, margin accretion
from Hydro Flask, and reductions in product costs, partially offset by
the unfavorable impact of foreign currency fluctuations.
-
SG&A was 29.5% of net sales compared to 28.5% of net sales for the
same period last year. The increase is primarily due to: (i) higher
compensation costs due to hourly wage increases; (ii) higher
share-based incentive compensation expense; (iii) higher advertising
expense; and (iv) the impact that lower net sales had on operating
leverage in our core business. These factors were partially offset by
improved distribution and logistics efficiency and lower outbound
freight costs and the comparative impact of $6.7 million of CEO
succession costs recorded last year.
-
Operating income increased 13.8% to $63.3 million compared to $55.6
million for the same period last year primarily reflecting the overall
improvement in core business gross profit margin, accretion from the
Hydro Flask acquisition, lower foreign currency revaluation losses,
improved distribution and logistics efficiency and lower outbound
freight costs, and the comparative impact of $6.7 million of CEO
succession costs recorded last year. The increase was partially offset
by: (i) a $3.1 million decline from the Company’s Venezuela
operations, due almost entirely to the adoption of the DICOM exchange
rate; (ii) an increase in compensation expense; and, (iii) the
negative impact of foreign currency fluctuations on net sales and
gross profit.
-
Income tax expense as a percentage of pretax income was 3.7% compared
to 11.8% for the same period last year. The year-over-year decrease in
the Company’s effective tax rate was primarily due to shifts in the
mix of taxable income in the Company’s various tax jurisdictions,
benefits from the finalization of certain tax returns and a change in
an accounting standard.
-
Net income was $57.6 million, or $2.07 per diluted share on 27.8
million weighted average diluted shares outstanding, compared to $46.8
million, or $1.63 per diluted share on 28.6 million weighted average
diluted shares outstanding in the same period last year.
-
Adjusted EBITDA (EBITDA excluding non-cash asset impairment charges,
non-cash share-based compensation, CEO succession costs and patent
litigation charges, as applicable) increased $2.2 million to $77.5
million.
On an adjusted basis for the third quarter of fiscal years 2017 and
2016, excluding non-cash asset impairment charges, non-cash amortization
of intangible assets, non‐cash share based compensation, CEO succession
costs and patent litigation charges, as applicable:
-
Adjusted operating income was $73.4 million, or 16.5% of net sales,
compared to $71.4 million, or 16.0% of net sales, in the prior year,
reflecting the overall improvement in core business gross profit
margin, the accretive impact of the Hydro Flask acquisition, and
improved distribution and logistics efficiency and lower outbound
freight costs, partially offset by the unfavorable impact of foreign
currency fluctuations and a decline in operating income from the
Company’s Venezuela operations of $3.1 million, which negatively
impacted consolidated adjusted operating margin by 0.4 percentage
points.
-
Adjusted income was $66.0 million, or $2.37 per diluted share,
compared to $59.2 million, or $2.07 per diluted share, in the prior
year, primarily reflecting the improvement in adjusted operating
income and lower tax expense, partially offset by higher interest
expense.
Third Quarter Fiscal Year 2017 Segment Results
Housewares net sales increased by 42.0% driven by net sales growth of
39.1% from Hydro Flask and a 2.9% increase in core business net sales
revenue. In the core business, growth was fueled by new products and
expansion in the club channel, partially offset by a decline in EMEA
sales due to the negative impact of the weakened British Pound. Adjusted
operating margin improved 4.6 percentage points primarily due to the
accretive impact of the Hydro Flask acquisition and margin expansion in
the core business. Margin improvement in the core business came from
greater operating leverage, improvements in sales mix, and lower
distribution, logistics and outbound freight costs, partially offset by
higher advertising expenses and margin compression from new product
categories.
Health & Home net sales declined 3.5% reflecting the Company’s
de-emphasis of lower margin hot/cold therapy business and declines in
humidification due to retailers exiting last year’s below average
cough/cold/flu season with higher inventory levels. These declines were
partially offset by strong sales gains in PUR water filtration, early
seasonal shipments of thermometry products, and growth in air
purification. Adjusted operating margin improved 0.3 percentage points
to 13.7% due to product cost reductions, a better product sales mix, and
lower outbound freight costs, partially offset by higher advertising
expense.
Beauty net sales decreased 19.5%, which includes anticipated declines of
5.3% and 2.0%, respectively, from the Company’s Venezuelan and North
American personal care businesses, and the negative impact of
approximately 1.5% from foreign currency fluctuations. Another 2.0% of
the decline is due to our de-emphasis of the foot care category, as it
has become commoditized. Additionally, rationalization of lower margin
business negatively impacted net sales by approximately 3.1%. The
remaining decline is primarily due to a softer than expected retail
environment, tighter retail inventory management and an overall decline
in point of sale activity for the broader retail beauty appliances
category. Adjusted operating margin declined 2.1 percentage points
reflecting an improvement in gross profit margin that was more than
offset by a 1.7 percentage point decline from Venezuela re-measurement,
unfavorable foreign currency and lower operating leverage from the
decline in sales.
Nutritional Supplements net sales decreased 14.2%, primarily reflecting
lower response rates in the offline channel, lower average order values,
an increase in discounts to promote buyer file growth, and a decline in
the legacy newsletter subscription business, as the Company continues to
implement a strategic transition from offline to online channels.
Adjusted operating margin decreased by 9.4 percentage points due
primarily to the impact of the net sales decline on operating leverage
and higher promotion, advertising, customer acquisition and online
channel development costs.
Balance Sheet Highlights
-
Cash and cash equivalents totaled $16.8 million at November 30, 2016,
compared to $21.1 million at November 30, 2015. During the third
quarter, the Company repurchased 922,731 million shares for a total of
$75.0 million.
-
Total short- and long-term debt increased to $564.9 million at
November 30, 2016, compared to $470.4 million at November 30, 2015, a
net increase of $94.5 million. The increase primarily reflects $210.0
million drawn to fund the Hydro Flask acquisition in March 2016 and
$75 million drawn for share repurchases in the third quarter.
-
Accounts receivable turnover was 57.8 days at November 30, 2016,
compared to 58.8 days at November 30, 2015.
-
Inventory was $301.1 million at November 30, 2016, compared to $339.4
million at November 30, 2015. Inventory turnover was 2.8 times,
unchanged from the same period last year.
Subsequent Event – Amendment to Credit Agreement
On December 7, 2016, the Company entered into a First Amendment to the
Credit Agreement (the “Amendment”) with Bank of America, N.A., as
administrative agent and the other lenders party thereto. The Amendment
increases the unsecured revolving commitment of the Credit Agreement
from $650 million to $1 billion, subject to the terms and limitations
described in the Credit Agreement. The maturity of the commitment under
the Credit Agreement was extended from January 16, 2020 to December 7,
2021. The Amendment also increased the leverage ratio for acquisitions.
In addition, the amount the Company may request to increase the
aggregate revolving loan commitment under the accordion was increased
from $150 million to $200 million, subject to lender approval and the
satisfaction of certain other conditions.
Fiscal Year 2017 Annual Outlook
For fiscal year 2017, the Company now expects consolidated net sales
revenue in the range of $1.520 to $1.550 billion compared to the
previous range of $1.55 to $1.59 billion. The Company is raising
expectations for consolidated GAAP diluted EPS in the range of $4.72 to
$4.92. The Company is also raising its adjusted diluted EPS (non-GAAP)
outlook in the range of $6.20 to $6.50, which excludes after-tax
non-cash asset impairment charges, patent litigation charges,
share-based compensation expense and intangible asset amortization
expense and includes incremental adjusted diluted EPS from the Hydro
Flask acquisition.
The Company’s outlook assumes that the severity of the cough/cold/flu
season will remain below historical averages. In addition, the Company’s
sales outlook now includes expected fiscal year 2017 net sales revenue
for the Health & Home segment in line with the prior year and expected
growth in Housewares’ core business net sales revenue for fiscal year
2017 in the low-single digits. The guidance also reflects the Company’s
outlook for the retail environment and the broader market and the
assumption that unfavorable currency environment will remain at current
levels for the remainder of the fiscal year.
The diluted EPS outlook is based on an estimated weighted average shares
outstanding of 28.0 million and an expected effective tax rate of 10% to
12% for the full fiscal year 2017. The likelihood and potential impact
of any fiscal year 2017 acquisitions, 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 4:45 pm Eastern Time
today, Thursday, January 5, 2017. Institutional investors and analysts
interested in participating in the call are invited to dial (877)
545-1402 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 January 5, 2017 until 11:59 p.m. Eastern Time on January 12,
2017 and can be accessed by dialing 877-870-5176 and entering replay pin
number 1840483. 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, NM: 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 29, 2016 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, our relationships with key
customers and licensors, the costs of complying with the business
demands and requirements of large sophisticated customers, our
dependence on the strength of retail economies and vulnerabilities to
any prolonged economic downturn, the retention and recruitment of key
personnel, expectations regarding our recent and future acquisitions,
including our ability to realize anticipated cost savings, synergies and
other benefits along with our ability to effectively integrate acquired
businesses, foreign currency exchange rate fluctuations, disruptions in
U.S., U.K., Euro zone, Venezuela, 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, circumstances which 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, 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 foreign operations, debt
leverage and the constraints it may impose 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 a number of new government regulations as a result of
adding vitamins, minerals and supplements to the Company’s portfolio of
products, the risks associated with product recalls, product liability,
other claims, and related litigation against us, the risks associated
with tax audits and related disputes with taxing authorities, the risks
of potential changes in laws, including tax laws, health insurance laws
and regulations related to conflict minerals 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.
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|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES
|
|
Consolidated Condensed Statements of Income
|
|
(Unaudited)
|
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended November 30,
|
|
|
|
2016
|
|
2015
|
|
Sales revenue, net
|
|
$
|
444,414
|
|
100.0
|
%
|
|
$
|
445,503
|
|
100.0
|
%
|
|
Cost of goods sold
|
|
|
250,199
|
|
56.3
|
%
|
|
|
262,979
|
|
59.0
|
%
|
|
Gross profit
|
|
|
194,215
|
|
43.7
|
%
|
|
|
182,524
|
|
41.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expense ("SG&A")
|
|
|
130,896
|
|
29.5
|
%
|
|
|
126,891
|
|
28.5
|
%
|
|
Asset impairment charges
|
|
|
-
|
|
-
|
%
|
|
|
-
|
|
-
|
%
|
|
Operating income
|
|
|
63,319
|
|
14.2
|
%
|
|
|
55,633
|
|
12.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income, net
|
|
|
106
|
|
-
|
%
|
|
|
142
|
|
-
|
%
|
|
Interest expense
|
|
|
(3,625)
|
|
(0.8)
|
%
|
|
|
(2,741)
|
|
(0.6)
|
%
|
|
Income before income taxes
|
|
|
59,800
|
|
13.5
|
%
|
|
|
53,034
|
|
11.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
2,188
|
|
0.5
|
%
|
|
|
6,256
|
|
1.4
|
%
|
|
Net income
|
|
$
|
57,612
|
|
13.0
|
%
|
|
$
|
46,778
|
|
10.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
$
|
2.07
|
|
|
|
|
$
|
1.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock used in computing diluted EPS
|
|
|
27,802
|
|
|
|
|
|
28,634
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended November 30,
|
|
|
|
2016
|
|
2015
|
|
Sales revenue, net
|
|
$
|
1,160,522
|
|
100.0
|
%
|
|
$
|
1,159,977
|
|
100.0
|
%
|
|
Cost of goods sold
|
|
|
650,912
|
|
56.1
|
%
|
|
|
686,129
|
|
59.2
|
%
|
|
Gross profit
|
|
|
509,610
|
|
43.9
|
%
|
|
|
473,848
|
|
40.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expense ("SG&A")
|
|
|
378,506
|
|
32.6
|
%
|
|
|
356,240
|
|
30.7
|
%
|
|
Asset impairment charges
|
|
|
7,400
|
|
0.6
|
%
|
|
|
3,000
|
|
0.3
|
%
|
|
Operating income
|
|
|
123,704
|
|
10.7
|
%
|
|
|
114,608
|
|
9.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income, net
|
|
|
343
|
|
-
|
%
|
|
|
233
|
|
-
|
%
|
|
Interest expense
|
|
|
(11,142)
|
|
(1.0)
|
%
|
|
|
(8,135)
|
|
(0.7)
|
%
|
|
Income before income taxes
|
|
|
112,905
|
|
9.7
|
%
|
|
|
106,706
|
|
9.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
7,912
|
|
0.7
|
%
|
|
|
15,066
|
|
1.3
|
%
|
|
Net income
|
|
$
|
104,993
|
|
9.0
|
%
|
|
$
|
91,640
|
|
7.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
$
|
3.74
|
|
|
|
|
$
|
3.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock used in computing diluted EPS
|
|
|
28,058
|
|
|
|
|
|
28,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES
|
|
Net Sales Revenue by Segment (7)
|
|
(Unaudited)
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended November 30,
|
|
|
|
|
|
|
|
% of Sales Revenue, net
|
|
|
|
|
2016
|
|
2015
|
|
$ Change
|
|
% Change
|
|
|
2016
|
|
|
2015
|
|
|
Sales revenue by segment, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Housewares
|
|
$
|
124,723
|
|
$
|
87,816
|
|
$
|
36,907
|
|
42.0
|
%
|
|
28.1
|
%
|
|
19.7
|
%
|
|
Health & Home
|
|
|
179,842
|
|
|
186,418
|
|
|
(6,576)
|
|
(3.5)
|
%
|
|
40.5
|
%
|
|
41.8
|
%
|
|
Nutritional Supplements
|
|
|
32,163
|
|
|
37,492
|
|
|
(5,329)
|
|
(14.2)
|
%
|
|
7.2
|
%
|
|
8.4
|
%
|
|
Beauty
|
|
|
107,686
|
|
|
133,777
|
|
|
(26,091)
|
|
(19.5)
|
%
|
|
24.2
|
%
|
|
30.0
|
%
|
|
Total sales revenue, net
|
|
$
|
444,414
|
|
$
|
445,503
|
|
$
|
(1,089)
|
|
(0.2)
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended November 30,
|
|
|
|
|
|
|
|
% of Sales Revenue, net
|
|
|
|
|
2016
|
|
2015
|
|
$ Change
|
|
% Change
|
|
|
2016
|
|
|
2015
|
|
|
Sales revenue by segment, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Housewares
|
|
$
|
315,302
|
|
$
|
231,850
|
|
$
|
83,452
|
|
36.0
|
%
|
|
27.2
|
%
|
|
20.0
|
%
|
|
Health & Home
|
|
|
470,650
|
|
|
472,714
|
|
|
(2,064)
|
|
(0.4)
|
%
|
|
40.6
|
%
|
|
40.8
|
%
|
|
Nutritional Supplements
|
|
|
101,215
|
|
|
114,980
|
|
|
(13,765)
|
|
(12.0)
|
%
|
|
8.7
|
%
|
|
9.9
|
%
|
|
Beauty
|
|
|
273,355
|
|
|
340,433
|
|
|
(67,078)
|
|
(19.7)
|
%
|
|
23.6
|
%
|
|
29.3
|
%
|
|
Total sales revenue, net
|
|
$
|
1,160,522
|
|
$
|
1,159,977
|
|
$
|
545
|
|
0.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES
|
|
Selected Consolidated Balance Sheet, Cash Flow and Liquidity
Information
|
|
(Unaudited)
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
November 30,
|
|
|
|
2016
|
|
2015 (a)
|
|
Balance Sheet:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
16,780
|
|
$
|
21,141
|
|
Receivables, net
|
|
|
289,943
|
|
|
288,979
|
|
Inventory, net
|
|
|
301,088
|
|
|
339,397
|
|
Total assets, current
|
|
|
620,062
|
|
|
659,702
|
|
Total assets
|
|
|
1,889,077
|
|
|
1,758,623
|
|
Total liabilities, current
|
|
|
327,503
|
|
|
292,832
|
|
Total long-term liabilities
|
|
|
581,696
|
|
|
497,859
|
|
Total debt
|
|
|
564,902
|
|
|
470,425
|
|
Stockholders' equity
|
|
|
979,878
|
|
|
967,932
|
|
|
|
|
|
|
|
|
|
Cash Flow:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
$
|
33,323
|
|
$
|
31,946
|
|
Net cash provided by operating activities
|
|
|
139,140
|
|
|
73,748
|
|
Capital and intangible asset expenditures
|
|
|
14,989
|
|
|
12,418
|
|
Payments to acquire businesses, net of cash received
|
|
|
209,258
|
|
|
42,750
|
|
Net amounts borrowed (repaid)
|
|
|
(55,800)
|
|
|
41,500
|
|
Payments for repurchases of common stock
|
|
|
75,000
|
|
|
50,000
|
|
|
|
|
|
|
|
|
|
Liquidity:
|
|
|
|
|
|
|
|
Working Capital
|
|
$
|
292,559
|
|
$
|
366,870
|
|
_________________________
|
|
(a)
|
|
As a result of the adoption of new accounting standards for fiscal
year 2017, amounts reported as of November 30, 2015 have be
reclassified to conform with current year’s presentation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OTHER DATA
|
|
Reconciliation of Non-GAAP Financial Measures – GAAP Operating
Income
|
|
to Adjusted Operating Income (non-GAAP) (1) (7)
|
|
(Unaudited)
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended November 30, 2016
|
|
|
|
|
Housewares
|
|
|
Health & Home
|
|
|
Nutritional
Supplements
|
|
|
Beauty
|
|
|
Total
|
|
|
Operating income, as reported (GAAP)
|
|
$
|
29,223
|
|
23.4
|
%
|
|
$
|
20,155
|
|
11.2
|
%
|
|
$
|
(80)
|
|
(0.2)
|
%
|
|
$
|
14,021
|
|
13.0
|
%
|
|
$
|
63,319
|
|
14.2
|
%
|
|
Non-cash share-based compensation (3)
|
|
|
671
|
|
0.5
|
%
|
|
|
872
|
|
0.5
|
%
|
|
|
369
|
|
1.1
|
%
|
|
|
991
|
|
0.9
|
%
|
|
|
2,903
|
|
0.7
|
%
|
|
Amortization of intangible assets (4)
|
|
|
658
|
|
0.5
|
%
|
|
|
3,546
|
|
2.0
|
%
|
|
|
1,571
|
|
4.9
|
%
|
|
|
1,424
|
|
1.3
|
%
|
|
|
7,199
|
|
1.6
|
%
|
|
Adjusted operating income (non-GAAP)
|
|
$
|
30,552
|
|
24.5
|
%
|
|
$
|
24,573
|
|
13.7
|
%
|
|
$
|
1,860
|
|
5.8
|
%
|
|
$
|
16,436
|
|
15.3
|
%
|
|
$
|
73,421
|
|
16.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended November 30, 2015
|
|
|
|
|
Housewares
|
|
|
Health & Home
|
|
|
Nutritional
Supplements
|
|
|
Beauty
|
|
|
Total
|
|
|
Operating income, as reported (GAAP)
|
|
$
|
15,536
|
|
17.7
|
%
|
|
$
|
18,072
|
|
9.7
|
%
|
|
$
|
3,034
|
|
8.1
|
%
|
|
$
|
18,991
|
|
14.2
|
%
|
|
$
|
55,633
|
|
12.5
|
%
|
|
CEO succession costs (2)
|
|
|
1,348
|
|
1.5
|
%
|
|
|
2,722
|
|
1.5
|
%
|
|
|
704
|
|
1.9
|
%
|
|
|
1,933
|
|
1.4
|
%
|
|
|
6,707
|
|
1.5
|
%
|
|
Subtotal
|
|
|
16,884
|
|
19.2
|
%
|
|
|
20,794
|
|
11.2
|
%
|
|
|
3,738
|
|
10.0
|
%
|
|
|
20,924
|
|
15.6
|
%
|
|
|
62,340
|
|
14.0
|
%
|
|
Non-cash share-based compensation (3)
|
|
|
303
|
|
0.3
|
%
|
|
|
657
|
|
0.4
|
%
|
|
|
398
|
|
1.1
|
%
|
|
|
851
|
|
0.6
|
%
|
|
|
2,209
|
|
0.5
|
%
|
|
Amortization of intangible assets (4)
|
|
|
326
|
|
0.4
|
%
|
|
|
3,532
|
|
1.9
|
%
|
|
|
1,564
|
|
4.2
|
%
|
|
|
1,439
|
|
1.1
|
%
|
|
|
6,861
|
|
1.5
|
%
|
|
Adjusted operating income (non-GAAP)
|
|
$
|
17,513
|
|
19.9
|
%
|
|
$
|
24,983
|
|
13.4
|
%
|
|
$
|
5,700
|
|
15.2
|
%
|
|
$
|
23,214
|
|
17.4
|
%
|
|
$
|
71,410
|
|
16.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended November 30, 2016
|
|
|
|
|
Housewares
|
|
|
Health & Home
|
|
|
Nutritional
Supplements
|
|
|
Beauty
|
|
|
Total
|
|
|
Operating income, as reported (GAAP)
|
|
$
|
68,956
|
|
21.9
|
%
|
|
$
|
39,156
|
|
8.3
|
%
|
|
$
|
(6,581)
|
|
(6.5)
|
%
|
|
$
|
22,173
|
|
8.1
|
%
|
|
$
|
123,704
|
|
10.7
|
%
|
|
Patent litigation charge (5)
|
|
|
-
|
|
-
|
%
|
|
|
1,468
|
|
0.3
|
%
|
|
|
-
|
|
-
|
%
|
|
|
-
|
|
-
|
%
|
|
|
1,468
|
|
0.1
|
%
|
|
Asset impairment charges (6)
|
|
|
-
|
|
-
|
%
|
|
|
-
|
|
-
|
%
|
|
|
5,000
|
|
4.9
|
%
|
|
|
2,400
|
|
0.9
|
%
|
|
|
7,400
|
|
0.6
|
%
|
|
Subtotal
|
|
|
68,956
|
|
21.9
|
%
|
|
|
40,624
|
|
8.6
|
%
|
|
|
(1,581)
|
|
(1.6)
|
%
|
|
|
24,573
|
|
9.0
|
%
|
|
|
132,572
|
|
11.4
|
%
|
|
Non-cash share-based compensation (3)
|
|
|
2,404
|
|
0.8
|
%
|
|
|
3,787
|
|
0.8
|
%
|
|
|
1,734
|
|
1.7
|
%
|
|
|
3,736
|
|
1.4
|
%
|
|
|
11,661
|
|
1.0
|
%
|
|
Amortization of intangible assets (4)
|
|
|
1,986
|
|
0.6
|
%
|
|
|
10,626
|
|
2.3
|
%
|
|
|
4,713
|
|
4.7
|
%
|
|
|
4,300
|
|
1.6
|
%
|
|
|
21,625
|
|
1.9
|
%
|
|
Adjusted operating income (non-GAAP)
|
|
$
|
73,346
|
|
23.3
|
%
|
|
$
|
55,037
|
|
11.7
|
%
|
|
$
|
4,866
|
|
4.8
|
%
|
|
$
|
32,609
|
|
11.9
|
%
|
|
$
|
165,858
|
|
14.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended November 30, 2015
|
|
|
|
|
Housewares
|
|
|
Health & Home
|
|
|
Nutritional
Supplements
|
|
|
Beauty
|
|
|
Total
|
|
|
Operating income, as reported (GAAP)
|
|
$
|
41,861
|
|
18.1
|
%
|
|
$
|
31,298
|
|
6.6
|
%
|
|
$
|
8,623
|
|
7.5
|
%
|
|
$
|
32,826
|
|
9.6
|
%
|
|
$
|
114,608
|
|
9.9
|
%
|
|
CEO succession costs (2)
|
|
|
1,348
|
|
0.6
|
%
|
|
|
2,722
|
|
0.6
|
%
|
|
|
704
|
|
0.6
|
%
|
|
|
1,933
|
|
0.6
|
%
|
|
|
6,707
|
|
0.6
|
%
|
|
Asset impairment charges (6)
|
|
|
-
|
|
-
|
%
|
|
|
-
|
|
-
|
%
|
|
|
-
|
|
-
|
%
|
|
|
3,000
|
|
0.9
|
%
|
|
|
3,000
|
|
0.3
|
%
|
|
Subtotal
|
|
|
43,209
|
|
18.6
|
%
|
|
|
34,020
|
|
7.2
|
%
|
|
|
9,327
|
|
8.1
|
%
|
|
|
37,759
|
|
11.1
|
%
|
|
|
124,315
|
|
10.7
|
%
|
|
Non-cash share-based compensation (3)
|
|
|
934
|
|
0.4
|
%
|
|
|
1,785
|
|
0.4
|
%
|
|
|
974
|
|
0.8
|
%
|
|
|
2,454
|
|
0.7
|
%
|
|
|
6,147
|
|
0.5
|
%
|
|
Amortization of intangible assets (4)
|
|
|
976
|
|
0.4
|
%
|
|
|
10,900
|
|
2.3
|
%
|
|
|
4,692
|
|
4.1
|
%
|
|
|
4,315
|
|
1.3
|
%
|
|
|
20,883
|
|
1.8
|
%
|
|
Adjusted operating income (non-GAAP)
|
|
$
|
45,119
|
|
19.5
|
%
|
|
$
|
46,705
|
|
9.9
|
%
|
|
$
|
14,993
|
|
13.0
|
%
|
|
$
|
44,528
|
|
13.1
|
%
|
|
$
|
151,345
|
|
13.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OTHER DATA
|
|
Reconciliation of Non-GAAP Financial Measures - EBITDA
|
|
(Earnings Before Interest, Taxes, Depreciation and Amortization)
and Adjusted EBITDA (1) (7)
|
|
(Unaudited)
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
November 30,
|
|
Nine Months Ended
November 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Net income (GAAP)
|
|
$
|
57,612
|
|
$
|
46,778
|
|
$
|
104,993
|
|
$
|
91,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
3,604
|
|
|
2,698
|
|
|
11,052
|
|
|
8,066
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
2,188
|
|
|
6,256
|
|
|
7,912
|
|
|
15,066
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization, excluding amortized interest
|
|
|
11,225
|
|
|
10,719
|
|
|
33,323
|
|
|
31,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
74,629
|
|
|
66,451
|
|
|
157,280
|
|
|
146,718
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: CEO succession costs (2)
|
|
|
-
|
|
|
6,707
|
|
|
-
|
|
|
6,707
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash share-based compensation (3)
|
|
|
2,903
|
|
|
2,209
|
|
|
11,661
|
|
|
6,147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patent litigation charge (5)
|
|
|
-
|
|
|
-
|
|
|
1,468
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash asset impairment charges (6)
|
|
|
-
|
|
|
-
|
|
|
7,400
|
|
|
3,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (non-GAAP)
|
|
$
|
77,532
|
|
$
|
75,367
|
|
$
|
177,809
|
|
$
|
162,572
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OTHER DATA
|
|
Reconciliation of Non-GAAP Financial Measures - EBITDA
|
|
(Earnings Before Interest, Taxes, Depreciation and Amortization)
and Adjusted EBITDA by Segment (1) (7)
|
|
(Unaudited)
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended November 30, 2016
|
|
|
|
Housewares
|
|
Health &
Home
|
|
Nutritional
Supplements
|
|
Beauty
|
|
Total
|
|
Operating Income (GAAP)
|
|
$
|
29,223
|
|
$
|
20,155
|
|
$
|
(80)
|
|
$
|
14,021
|
|
$
|
63,319
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization, excluding amortized interest
|
|
|
1,429
|
|
|
5,221
|
|
|
2,108
|
|
|
2,467
|
|
|
11,225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income, net
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
85
|
|
|
85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
30,652
|
|
|
25,376
|
|
|
2,028
|
|
|
16,573
|
|
|
74,629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Non-cash share-based compensation (3)
|
|
|
671
|
|
|
872
|
|
|
369
|
|
|
991
|
|
|
2,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (non-GAAP)
|
|
$
|
31,323
|
|
$
|
26,248
|
|
$
|
2,397
|
|
$
|
17,564
|
|
$
|
77,532
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended November 30, 2015
|
|
|
|
Housewares
|
|
Health &
Home
|
|
Nutritional
Supplements
|
|
Beauty
|
|
Total
|
|
Operating Income (GAAP)
|
|
$
|
15,536
|
|
$
|
18,072
|
|
$
|
3,034
|
|
$
|
18,991
|
|
$
|
55,633
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization, excluding amortized interest
|
|
|
1,065
|
|
|
5,281
|
|
|
1,956
|
|
|
2,417
|
|
|
10,719
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income, net
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
99
|
|
|
99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
16,601
|
|
|
23,353
|
|
|
4,990
|
|
|
21,507
|
|
|
66,451
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: CEO succession costs (2)
|
|
|
1,348
|
|
|
2,722
|
|
|
704
|
|
|
1,933
|
|
|
6,707
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash share-based compensation (3)
|
|
|
303
|
|
|
657
|
|
|
398
|
|
|
851
|
|
|
2,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (non-GAAP)
|
|
$
|
18,252
|
|
$
|
26,732
|
|
$
|
6,092
|
|
$
|
24,291
|
|
$
|
75,367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OTHER DATA
|
|
Reconciliation of Non-GAAP Financial Measures - EBITDA
|
|
(Earnings Before Interest, Taxes, Depreciation and Amortization)
and Adjusted EBITDA by Segment (1) (7)
|
|
(Unaudited)
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended November 30, 2016
|
|
|
|
Housewares
|
|
Health &
Home
|
|
Nutritional
Supplements
|
|
Beauty
|
|
Total
|
|
Operating income (GAAP)
|
|
$
|
68,956
|
|
$
|
39,156
|
|
$
|
(6,581)
|
|
$
|
22,173
|
|
$
|
123,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization, excluding amortized interest
|
|
|
4,200
|
|
|
15,738
|
|
|
6,242
|
|
|
7,143
|
|
|
33,323
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income, net
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
253
|
|
|
253
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
73,156
|
|
|
54,894
|
|
|
(339)
|
|
|
29,569
|
|
|
157,280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Non-cash share-based compensation (3)
|
|
|
2,404
|
|
|
3,787
|
|
|
1,734
|
|
|
3,736
|
|
|
11,661
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patent litigation charge (5)
|
|
|
-
|
|
|
1,468
|
|
|
-
|
|
|
-
|
|
|
1,468
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash asset impairment charges (6)
|
|
|
-
|
|
|
-
|
|
|
5,000
|
|
|
2,400
|
|
|
7,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (non-GAAP)
|
|
$
|
75,560
|
|
$
|
60,149
|
|
$
|
6,395
|
|
$
|
35,705
|
|
$
|
177,809
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended November 30, 2015
|
|
|
|
Housewares
|
|
Health &
Home
|
|
Nutritional
Supplements
|
|
Beauty
|
|
Total
|
|
Operating income (GAAP)
|
|
$
|
41,861
|
|
$
|
31,298
|
|
$
|
8,623
|
|
$
|
32,826
|
|
$
|
114,608
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization, excluding amortized interest
|
|
|
3,148
|
|
|
15,858
|
|
|
5,889
|
|
|
7,051
|
|
|
31,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income, net
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
164
|
|
|
164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
45,009
|
|
|
47,156
|
|
|
14,512
|
|
|
40,041
|
|
|
146,718
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: CEO succession costs (2)
|
|
|
1,348
|
|
|
2,722
|
|
|
704
|
|
|
1,933
|
|
|
6,707
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash share-based compensation (3)
|
|
|
934
|
|
|
1,785
|
|
|
974
|
|
|
2,454
|
|
|
6,147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash asset impairment charges (6)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,000
|
|
|
3,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (non-GAAP)
|
|
$
|
47,291
|
|
$
|
51,663
|
|
$
|
16,190
|
|
$
|
47,428
|
|
$
|
162,572
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) (7) (8)
|
|
(Unaudited)
|
|
(dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended November 30,
|
|
Basic EPS
|
|
Diluted EPS
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Net income as reported (GAAP)
|
|
$
|
57,612
|
|
$
|
46,778
|
|
$
|
2.10
|
|
$
|
1.66
|
|
$
|
2.07
|
|
$
|
1.63
|
|
CEO succession costs, net of tax (2)
|
|
|
-
|
|
|
4,645
|
|
|
-
|
|
|
0.17
|
|
|
-
|
|
|
0.16
|
|
Subtotal
|
|
|
57,612
|
|
|
51,423
|
|
|
2.10
|
|
|
1.83
|
|
|
2.07
|
|
|
1.80
|
|
Non-cash share-based compensation, net of tax (3)
|
|
|
2,197
|
|
|
1,813
|
|
|
0.08
|
|
|
0.06
|
|
|
0.08
|
|
|
0.06
|
|
Amortization of intangible assets, net of tax (4)
|
|
|
6,190
|
|
|
5,936
|
|
|
0.23
|
|
|
0.22
|
|
|
0.22
|
|
|
0.21
|
|
Adjusted income (non-GAAP)
|
|
$
|
65,999
|
|
$
|
59,172
|
|
$
|
2.40
|
|
$
|
2.10
|
|
$
|
2.37
|
|
$
|
2.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock used in computing basic
and diluted EPS
|
|
|
|
|
|
|
|
|
27,484
|
|
|
28,129
|
|
|
27,802
|
|
|
28,634
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended November 30,
|
|
Basic EPS
|
|
Diluted EPS
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Net income as reported (GAAP)
|
|
$
|
104,993
|
|
$
|
91,640
|
|
$
|
3.79
|
|
$
|
3.23
|
|
$
|
3.74
|
|
$
|
3.17
|
|
CEO succession costs, net of tax (2)
|
|
|
-
|
|
|
4,645
|
|
|
-
|
|
|
0.16
|
|
|
-
|
|
|
0.16
|
|
Patent litigation charge, net of tax (5)
|
|
|
1,464
|
|
|
-
|
|
|
0.05
|
|
|
-
|
|
|
0.05
|
|
|
-
|
|
Asset impairment charges, net of tax (6)
|
|
|
5,097
|
|
|
2,656
|
|
|
0.18
|
|
|
0.09
|
|
|
0.18
|
|
|
0.09
|
|
Subtotal
|
|
|
111,554
|
|
|
98,941
|
|
|
4.03
|
|
|
3.49
|
|
|
3.98
|
|
|
3.42
|
|
Non-cash share-based compensation, net of tax (3)
|
|
|
8,741
|
|
|
5,158
|
|
|
0.32
|
|
|
0.18
|
|
|
0.31
|
|
|
0.18
|
|
Amortization of intangible assets, net of tax (4)
|
|
|
18,620
|
|
|
18,108
|
|
|
0.67
|
|
|
0.64
|
|
|
0.66
|
|
|
0.63
|
|
Adjusted income (non-GAAP)
|
|
$
|
138,915
|
|
$
|
122,207
|
|
$
|
5.01
|
|
$
|
4.31
|
|
$
|
4.95
|
|
$
|
4.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock used in computing basic
and diluted EPS
|
|
|
|
|
|
|
|
|
27,700
|
|
|
28,361
|
|
|
28,058
|
|
|
28,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES
|
|
Reconciliation of Fiscal Year 2017 Outlook for GAAP Diluted EPS
|
|
to Adjusted Diluted EPS (non-GAAP) (1) (8) (9)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended February 28, 2017
|
|
|
|
Nine Months Ended
November 30, 2016
|
|
Outlook for the
Balance of the
Fiscal
Year
(Three Months)
|
|
Outlook for the
Fiscal Year
(Twelve
Months)
|
|
Diluted EPS, as reported (GAAP)
|
|
$
|
3.74
|
|
$
|
0.97
|
|
-
|
|
$
|
1.17
|
|
$
|
4.72
|
|
-
|
|
$
|
4.92
|
|
Patent litigation charge, net of tax (5)
|
|
|
0.05
|
|
|
-
|
|
-
|
|
|
-
|
|
|
0.05
|
|
-
|
|
|
0.05
|
|
Asset impairment charges, net of tax (6)
|
|
|
0.18
|
|
|
-
|
|
-
|
|
|
-
|
|
|
0.18
|
|
-
|
|
|
0.18
|
|
Subtotal
|
|
|
3.98
|
|
|
0.97
|
|
-
|
|
|
1.17
|
|
|
4.95
|
|
-
|
|
|
5.15
|
|
Non-cash share-based compensation, net of tax (3)
|
|
|
0.31
|
|
|
0.09
|
|
-
|
|
|
0.13
|
|
|
0.40
|
|
-
|
|
|
0.44
|
|
Amortization of intangible assets, net of tax (4)
|
|
|
0.66
|
|
|
0.19
|
|
-
|
|
|
0.25
|
|
|
0.85
|
|
-
|
|
|
0.91
|
|
Adjusted diluted EPS (non-GAAP)
|
|
$
|
4.95
|
|
$
|
1.25
|
|
-
|
|
$
|
1.55
|
|
$
|
6.20
|
|
-
|
|
$
|
6.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. 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. 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 CEO succession costs of $6.71 million
($4.64 million after tax) incurred in connection with the
settlement of a dispute with our former CEO for the three- and
nine-months ended November 30, 2015.
|
|
|
|
|
|
(3)
|
|
Adjustments consist of non-cash share-based compensation expense of
$2.90 million ($2.12 million after tax) and $2.21 million ($1.81
million after tax) for the three months ended November 30, 2016 and
2015, respectively, and $11.66 million ($8.74 million after tax) and
$6.15 million ($5.16 million after tax), for the nine months ended
November 30, 2016 and 2015, respectively.
|
|
|
|
|
|
(4)
|
|
Adjustments consist of non-cash intangible asset amortization
expense of $7.20 million ($6.19 million after tax) and $6.86 million
($5.94 million after tax) for the three months ended November 30,
2016 and 2015, respectively, and $21.63 million ($18.62 million
after tax) and $20.88 million ($18.11 million after tax) for the
nine months ended November 30, 2016 and 2015, respectively.
|
|
|
|
|
|
(5)
|
|
Adjustment consists of a patent litigation charge of $1.47 million
($1.46 million after tax) for the nine months ended November 30,
2016.
|
|
|
|
|
|
(6)
|
|
Adjustments consist of non-cash asset impairment charges of $7.40
million ($5.10 million after tax) and $3.00 million ($2.66 million
after tax) for the nine months ended November 30, 2016 and 2015,
respectively. The non-cash charges relate to certain brand assets
and trademarks in our Nutritional Supplements and Beauty segments,
which were written down to their estimated fair values, determined
on the basis of future discounted cash flows using the relief from
royalty valuation method.
|
|
|
|
|
|
(7)
|
|
The VapoSteam business was acquired on March 31, 2015 and its
operations are reported in the Health & Home segment. Results
reported for the nine months ended November 30, 2016 include one
incremental month of operating results compared to the same period
last year.
|
|
|
|
|
|
|
|
The Hydro Flask business was acquired on March 18, 2016 and its
operations are reported in the Housewares segment. Results reported
for the three- and nine-months ended November 30, 2016 include three
months and approximately eight and a half months of operating
results, respectively, with no comparable results for the same
periods last year.
|
|
|
|
|
|
(8)
|
|
Total tax effects of adjustments described in Notes 2 through 6, for
each of the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
November 30,
|
|
Nine Months Ended
November 30,
|
|
(In thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
CEO succession costs (2)
|
|
$
|
-
|
|
$
|
(2,062)
|
|
$
|
-
|
|
$
|
(2,062)
|
|
Non-cash share-based compensation (3)
|
|
|
(706)
|
|
|
(396)
|
|
|
(2,920)
|
|
|
(989)
|
|
Amortization of intangible assets (4)
|
|
|
(1,009)
|
|
|
(925)
|
|
|
(3,005)
|
|
|
(2,775)
|
|
Patent litigation charge (5)
|
|
|
-
|
|
|
-
|
|
|
(4)
|
|
|
-
|
|
Asset impairment charges (6)
|
|
|
-
|
|
|
-
|
|
|
(2,303)
|
|
|
(344)
|
|
Total
|
|
$
|
(1,715)
|
|
$
|
(3,383)
|
|
$
|
(8,232)
|
|
$
|
(6,170)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(9)
|
|
The diluted EPS outlook is based on an estimated weighted average
shares outstanding of 28.00 million for fiscal year 2017.
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170105006385/en/
Source: Helen of Troy Limited
Investors:
ICR, Inc.
Allison Malkin, 203-682-8200