[October 08, 2015] |
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Helen of Troy Limited Reports Second Quarter Fiscal Year 2016 Results
Helen of Troy Limited (NASDAQ, NM: HELE), designer, developer and
worldwide marketer of consumer brand-name housewares, healthcare/home
environment, nutritional supplement and beauty products, today reported
results for the three-month period ended August 31, 2015.
Julien R. Mininberg, Chief Executive Officer, stated: "We had a strong
second quarter, with year-over-year revenue growth of 15.4% and core
business revenue growth of 10.9%, both of which include a foreign
currency drag of 2.7%. All business segments grew in the second quarter,
including Beauty. We continue to make progress on our key initiatives in
product innovation, brand marketing, talent development, shared services
and collaboration across our business segments, positioning us well to
accomplish the goals we have set for this full fiscal year. With capital
allocation representing a key component of our strategic plan, we
returned capital to shareholders by repurchasing $50.0 million of our
common stock on the open market. Since the second quarter of last year,
we have invested $92.8 million in acquisition and share repurchase,
while reducing our total debt by $125.3 million.
For the first six months of fiscal year 2016, revenue grew 13.1%
year-over-year, and core business revenue increased 4.5%, despite a
foreign currency drag of 2.6%. Our Healthcare/Home Environment segment
saw revenue growth of 6.5% for the first half of fiscal 2016, driven by
successful new product introductions and strong retail sell-through of
seasonal products. The Nutritional Supplements segment contributed over
$77 million to revenue for the first half of fiscal 2016. Housewares
grew revenue by 5.6% for the first half of fiscal 2016, driven by strong
point-of-sale activity, and new product introductions, partially offset
by a shift in timing of customer orders into the fourth quarter of
fiscal year 2015. Beauty segment sales increased 2.3% for the first half
of fiscal 2016 despite a foreign currency drag of 2.4%, supported by new
distribution in foot care and new product introductions. We believe the
Beauty segment results reflect further progress toward stabilization.
We expect continued progress in the second half of the fiscal year. Our
outlook reflects further progress on our key initiatives, as well as our
cautious view on the upcoming cold and flu season, retail inventory
levels, upward pressure on hourly wages, foreign currency and the global
economic environment."
Key Highlights for the Second Quarter of Fiscal
Year 2016 Compared to the Second Quarter of Fiscal Year 2015
-
Net sales revenue increased $49.2 million, or 15.4%, which includes a
10.9% increase in core business net sales revenue (excluding
incremental sales from Nutritional Supplements and VapoSteam). The
increase in net sales revenue includes a negative impact of 2.7% from
foreign currency fluctuations.
-
Healthcare/Home Environment rose 13.5%, driven by successful new
product introductions, strong retail sell-through of fans due to
the sustained high summer temperatures in many regions, partially
offset by declines in water filtration and air purification and a
negative impact of $5.7 million, or 4.5% from foreign currency
fluctuations.
-
Housewares increased 13.2%, primarily due to successful new
product introductions and strong point-of-sale activity.
-
Beauty increased 9.6%, which included a negative impact of $2.6
million, or 2.6%, from foreign currency fluctuations. Growth was
driven by new product distribution in foot care, increases in the
professional curling iron category, the resolution of the West
Coast port disruption that pushed sales from the first quarter
into the second quarter of fiscal year 2016, and the comparative
impact of inventory reductions by a major retailer in the same
period last year.
-
The Nutritional Supplements segment contributed net sales revenue
of $38.1 million for the three months of results included in the
second quarter of fiscal year 2016, compared to $24.6 million for
the two months of results included in the same period last year.
-
The Company repurchased 556,591 shares of outstanding common stock on
the open market at a total cost of $50.0 million in the second quarter.
-
Diluted EPS was $0.84 and adjusted diluted EPS was $1.12 on 29.0
million diluted shares outstanding.
-
Adjusted EBITDA increased $4.9 million to $45.1 million.
Second Quarter of Fiscal Year 2016 Consolidated
Operating Results
-
Net sales revenue increased 15.4% to $369.1 million compared to $319.9
million in the second quarter of fiscal year 2015. Net sales revenue
includes one additional month of Nutritional Supplements results
compared to the same period last year, and three months of operations
of the VapoSteam business, which was acquired on March 31, 2015. Core
business net sales revenue increased $34.9 million, or 10.9%. Foreign
currency fluctuations negatively impacted consolidated U.S. Dollar
reported net sales revenue by $8.6 million, or 2.7%, year-over-year.
-
Gross profit margin decreased 1.7 percentage points to 40.1% compared
to 41.8% for the same period last year. The decrease in consolidated
gross profit margin is primarily due to the unfavorable impact of
foreign currency fluctuations and a lower margin product and channel
sales mix, partially offset by the favorable incremental impact of the
Nutritional Supplements segment.
-
SG&A was 31.3% of net sales compared to 34.1% of net sales for the
same period last year. The decrease is primarily due to operating
leverage on higher net sales revenue, partially offset by a higher
relative SG&A ratio in the Nutritional Supplements segment, higher
compensation expense and investments in advertising, marketing and
product development.
-
Operating income was $32.4 million compared to $24.6 million for the
same period last year.
-
Income tax expense as a percentage of pretax income was 18.2% compared
to 9.0% for the same period last year. The year-over-year comparison
of our effective tax rate was primarily impacted by shifts in the mix
of taxable income in our various tax jurisdictions and the comparative
impact of a tax benefit of $2.1 million recorded in the same period
last year related to the resolution of an uncertain tax position with
a foreign tax authority.
-
Net income was $24.5 million, or $0.84 per diluted share on 29.0
million weighted average diluted shares outstanding. This compares to
net income in the second quarter of fiscal year 2015 of $18.8 million,
or $0.65 per diluted share on 28.8 million weighted average diluted
shares outstanding.
-
Adjusted EBITDA (EBITDA excluding non-cash asset impairment charges,
acquisition-related expenses, and non-cash share-based compensation,
as applicable) was $45.1 million compared to $40.2 million in the same
period last year.
On an adjusted basis for the second quarter of fiscal years 2016 and
2015, excluding non-cash amortization of intangible assets,
acquisition-related expenses, and non-cash share based compensation, as
applicable:
-
Adjusted operating income was $41.5 million compared to $36.4 million
for the second quarter of fiscal year 2015.
-
Adjusted income was $32.3 million, or $1.12 per diluted share,
compared to $28.5 million, or $0.99 per diluted share, for the second
quarter of fiscal year 2015.
First Six Months of Fiscal Year 2016
Consolidated Operating Results
-
Net sales revenue increased 13.1% to $714.5 million compared to $631.7
million in the first six months of fiscal year 2015. Net sales revenue
includes four additional months of Nutritional Supplements results
compared to the same period last year and five months of results from
the VapoSteam business, which was acquired on March 31, 2015. Core
business net sales revenue increased $28.4 million, or 4.5%. Foreign
currency fluctuations negatively impacted consolidated U.S. Dollar
reported net sales revenue by $16.4 million, or 2.6%, year-over-year.
-
Gross profit margin increased 0.7 percentage points to 40.8% compared
to 40.1% for the same period last year. The increase in consolidated
gross profit margin is primarily due to the favorable incremental
impact of the Nutritional Supplements segment, partially offset by the
unfavorable impact of foreign currency fluctuations and a lower margin
product and channel sales mix.
-
SG&A was 32.1% of net sales compared to 31.1% of net sales for the
same period last year. The addition of the Nutritional Supplements and
VapoSteam acquisitions increased the SG&A ratio by 1.0 percentage
point in the first six months of the fiscal year 2016 compared to the
prior year period.
-
Operating income was $59.0 million compared to $47.7 million for the
same period last year. Operating income for the first six months of
fiscal year 2016 includes non-cash asset impairment charges of $3.0
million, compared to $9.0 million for the same period last year.
-
Income tax expense as a percentage of pretax income was 16.4% compared
to 12.9% for the same period last year. The year-over-year comparison
of our effective tax rate was primarily impacted by shifts in the mix
of taxable income in our various tax jurisdictions and the comparative
impact of a tax benefit of $2.1 million recorded in the same period
last year related to the resolution of an uncertain tax position with
a foreign tax authority.
-
Net income was $44.9 million, or $1.54 per diluted share on 29.0
million weighted average diluted shares outstanding. This compares to
net income in the first six months of fiscal year 2015 of $35.2
million, or $1.21 per diluted share on 29.2 million weighted average
diluted shares outstanding. Net income for the first six months of
fiscal year 2016 includes after-tax non-cash asset impairment charges
of $2.7 million, compared to $8.2 million for the same period last
year.
-
Adjusted EBITDA (EBITDA excluding non-cash asset impairment charges,
acquisition-related expenses, and non-cash share-based compensation,
as applicable) was $87.2 million compared to $82.2 million in the same
period last year.
On an adjusted basis for the first six months of fiscal years 2016 and
2015, excluding non-cash asset impairment charges, non-cash amortization
of intangible assets, acquisition-related expenses, and non-cash share
based compensation, as applicable:
-
Adjusted operating income was $79.9 million compared to $75.1 million
for the first six months of fiscal year 2015.
-
Adjusted income was $63.0 million, or $2.17 per diluted share,
compared to $59.3 million, or $2.03 per diluted share, for the first
six months of fiscal year 2015.
Balance Sheet Highlights
-
Cash and cash equivalents totaled $19.4 million at August 31, 2015,
compared to $24.7 million at August 31, 2014.
-
Total short- and long-term debt decreased to $479.3 million at August
31, 2015, compared to $604.6 million at August 31, 2014, a net
reduction of $125.3 million after making the VapoSteam acquisition for
$42.8 million in March 2015 and share repurchases of $50.0 million in
August 2015.
-
Accounts receivable turnover was 55.7 days at August 31, 2015,
compared to 63.8 days at August 31, 2014.
-
Inventory was $348.5 million at August 31, 2015, compared to $351.8
million at August 31, 2014.
Share Repurchases
During the fiscal quarter ended August 31, 2015, the Company repurchased
556,591 shares of outstanding common stock on the open market at a total
cost of $50.0 million, primarily funded with borrowings under its
revolving credit facility.
Fiscal Year 2016 Annual Outlook
For fiscal year 2016, the Company now expects consolidated net sales
revenue in the range of $1.500 to $1.536 billion and diluted EPS (GAAP)
in the range of $4.43 to $4.73. The Company now expects consolidated
adjusted diluted EPS (non-GAAP) to be in the range of $5.50 to $5.85,
which excludes after-tax non-cash asset impairment charges, non-cash
share-based compensation expense and intangible asset amortization
expense.
The Company's fiscal year 2016 outlook assumes current foreign currency
exchange rates for the remainder of the fiscal year. The diluted EPS
outlook is based on an estimated weighted average shares outstanding of
28.8 million for the full fiscal year 2016. Further, the Company's
guidance assumes that the severity of the cold/flu season will be in
line with historical averages. The likelihood and potential impact of
any fiscal year 2016 acquisitions other than VapoSteam, future asset
impairment charges, future foreign currency fluctuations, including any
potential currency devaluation in Venezuela, or further share
repurchases are unknown and cannot be reasonably estimated; therefore,
they are not included in the Company's sales and earnings outlook.
As previously disclosed, in fiscal year 2015 the Company benefited from
an after-tax gain of $0.24 per share from the amendment of a license
agreement, an after-tax decrease in product liability estimates of $0.05
per share and tax benefits of $0.15 per share that are not expected to
repeat in fiscal year 2016. These items negatively impact the
year-over-year comparison of adjusted diluted EPS by a combined $0.44.
Conference Call and Webcast
The Company will conduct a teleconference in conjunction with today's
earnings release. The teleconference begins at 4:45 pm Eastern Time
today, Thursday, October 8, 2015. Institutional investors and analysts
interested in participating in the call are invited to dial (888)
471-3843 approximately ten minutes prior to the start of the call. The
conference call will also be webcast live at: www.hotus.com.
A telephone replay of this call will be available at 7:45 p.m. Eastern
Time on October 8, 2015 until 11:59 p.m. Eastern Time on October 15,
2015 and can be accessed by dialing (877) 870-5176 and entering replay
pin number 311918. 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 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 is a leading global consumer products company
offering creative solutions for its customers through a strong portfolio
of well-recognized and widely-trusted brands, including: Housewares:
OXO®, Good Grips®, Soft Works®, OXO tot® and OXO Steel®; Healthcare/Home
Environment: Vicks®, Braun®, Honeywell®, PUR®, Febreze®, Stinger®,
Duracraft® and SoftHeat®; and Beauty: Revlon®, Vidal Sassoon®, Dr.
Scholl's®, Pro Beauty Tools®, Sure®, Pert®, Infusium23®, Brut®, Ammens®,
Hot Tools®, Bed Head®, Karina®, Ogilvie® and Gold 'N Hot®. The
Nutritional Supplements segment was formed with the acquisition of
Healthy Directions, a U.S. market leader in premium doctor-branded
vitamins, minerals and supplements, as well as other health products
sold directly to consumers. The Honeywell® trademark is used under
license from Honeywell International Inc. The Vicks®, Braun®, Febreze®
and Vidal Sassoon® trademarks are used under license from The Procter &
Gamble Company. The Revlon® trademark is used under license from Revlon
Consumer Products Corporation. The Bed Head® trademark is used under
license from Unilever PLC. The Dr. Scholl's® trademark is used under
license from MSD Consumer Care, Inc.
For more information about Helen of Troy, please visit www.hotus.com.
Forward Looking Statements:
This press release may contain forward-looking statements, which are
subject to change. The forward-looking statements are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Any or all of the forward-looking statements may turn out
to be wrong. They can be affected by inaccurate assumptions or by known
or unknown risks and uncertainties. Many of these factors will be
important in determining the Company's actual future results.
Consequently, no forward-looking statement can be guaranteed. Actual
future results may vary materially from those expressed or implied in
any forward-looking statements. The forward-looking statements are
qualified in their entirety by a number of risks that could cause actual
results to differ materially from historical or anticipated results.
Generally, the words "anticipates", "estimates", "believes", "expects",
"plans", "may", "will", "should", "seeks", "project", "predict",
"potential", "continue", "intends", and other similar words identify
forward-looking statements. The Company cautions readers not to place
undue reliance on forward-looking statements. The Company intends its
forward-looking statements to speak only as of the time of such
statements, and does not undertake to update or revise them as more
information becomes available. The forward-looking statements contained
in this press release should be read in conjunction with, and are
subject to and qualified by, the risks described in the Company's Form
10-K for the year ended February 28, 2015 and in our other filings with
the SEC. Investors are urged to refer to the risk factors referred to
above for a description of these risks. Such risks include, among
others, the departure and recruitment of key personnel, the Company's
ability to deliver products to our customers in a timely manner, the
costs of complying with the business demands and requirements of large
sophisticated customers, the Company's relationship with key customers
and licensors, our dependence on the strength of retail economies and
vulnerabilities to an economic downturn, expectations regarding
acquisitions and the integration of acquired businesses, exchange rate
risks, disruptions in U.S., European and other international credit
markets, risks associated with weather conditions, the Company's
dependence on foreign sources of supply and foreign manufacturing, risks
associated with the availability, purity and integrity of materials used
in nutritional supplements, the impact of changing costs of raw
materials and energy on cost of goods sold and certain operating
expenses, the Company's geographic concentration of certain U.S.
distribution facilities, which increases our exposure to
significant shipping disruptions and added shipping and storage costs,
the Company's projections of product demand, sales, net income and
earnings per share are highly subjective and our future net sales
revenue and net income could vary in a material amount from such
projections, circumstances that may contribute to future impairment of
goodwill, intangible or other long-lived assets, the risks associated
with the use of trademarks licensed from and to third parties, the
Company's ability to develop and introduce innovative new products to
meet changing consumer preferences, increased product liability and
reputational risks associated with the formulation and distribution of
nutritional supplements, risks associated with adverse publicity and
negative public perception regarding the use of nutritional supplements,
trade barriers, exchange controls, expropriations, and other risks
associated with foreign operations, the Company's debt leverage and the
constraints it may impose, the costs, complexity and challenges of
upgrading and managing our global information systems, the risks
associated with information security breaches, the increased complexity
of compliance with a number of new government regulations as a result of
adding nutritional supplements to the Company's portfolio of products,
the risks associated with tax audits and related disputes with taxing
authorities, potential changes in laws, including tax laws, and the
Company's ability to continue to avoid classification as a controlled
foreign corporation.
HELEN OF TROY LIMITED AND SUBSIDIARIES
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Consolidated Condensed Statements of Income and Reconciliation
of Non-GAAP Financial Measures -
Adjusted Operating Income, Adjusted Income and Adjusted Diluted
Earnings per Share ("EPS") (1)
(Unaudited)
(in thousands, except per share data)
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Three Months Ended August 31,
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2015
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2014
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As Reported (GAAP)
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Adjustments
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Adjusted
(non-GAAP)
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As Reported (GAAP)
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Adjustments
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Adjusted
(non-GAAP)
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Sales revenue, net
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$
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369,129
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100.0
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%
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$
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-
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$
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369,129
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100.0
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%
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$
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319,949
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100.0
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%
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$
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-
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$
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319,949
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100.0
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%
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Cost of goods sold
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221,124
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59.9
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%
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-
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221,124
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59.9
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%
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186,205
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58.2
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%
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-
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186,205
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58.2
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%
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Gross profit
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148,005
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40.1
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%
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-
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148,005
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40.1
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%
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133,744
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41.8
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%
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-
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133,744
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41.8
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%
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Selling, general, and administrative expense
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115,573
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31.3
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%
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(1,877
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)
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(2
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)
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106,488
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28.8
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%
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109,141
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34.1
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%
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(1,917
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)
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(2
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)
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97,298
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30.4
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%
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(7,208
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)
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(3
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)
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(6,315
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)
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(3
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)
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-
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(3,611
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)
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(4
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)
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Asset impairment charges
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-
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-
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%
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-
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-
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|
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-
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%
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|
|
-
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-
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%
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|
|
-
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|
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|
|
-
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|
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-
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%
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Operating income
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32,432
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8.8
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%
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9,085
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41,517
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11.2
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%
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24,603
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7.7
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%
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11,843
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36,446
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11.4
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%
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Nonoperating income (expense), net
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(46
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)
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-
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%
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-
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(46
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)
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-
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%
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97
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-
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%
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-
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97
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-
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%
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Interest expense
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(2,503
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(0.7
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)
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%
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-
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(2,503
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)
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(0.7
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)
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%
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(3,998
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)
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(1.2
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)
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%
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-
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(3,998
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)
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(1.2
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)
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%
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Total other expense
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(2,549
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(0.7
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)
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%
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-
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(2,549
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)
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(0.7
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%
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(3,901
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(1.2
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%
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-
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(3,901
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(1.2
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%
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Income before income taxes
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29,883
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8.1
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%
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9,085
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38,968
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10.6
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%
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20,702
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6.5
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%
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11,843
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32,545
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10.2
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%
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Income tax expense
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5,431
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1.5
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%
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1,204
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(6
|
)
|
|
|
6,635
|
|
|
1.8
|
|
%
|
|
|
|
1,863
|
|
|
0.6
|
|
%
|
|
|
2,134
|
|
(6
|
)
|
|
|
3,997
|
|
|
1.2
|
|
%
|
Net income
|
|
|
$
|
24,452
|
|
|
6.6
|
|
%
|
|
$
|
7,881
|
|
|
|
$
|
32,333
|
|
|
8.8
|
|
%
|
|
|
$
|
18,839
|
|
|
5.9
|
|
%
|
|
$
|
9,709
|
|
|
|
$
|
28,548
|
|
|
8.9
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
|
$
|
0.84
|
|
|
|
|
|
$
|
0.28
|
|
|
|
$
|
1.12
|
|
|
|
|
|
|
$
|
0.65
|
|
|
|
|
|
$
|
0.34
|
|
|
|
$
|
0.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
used in computing diluted EPS
|
|
|
|
28,986
|
|
|
|
|
|
|
-
|
|
|
|
|
28,986
|
|
|
|
|
|
|
|
28,769
|
|
|
|
|
|
|
-
|
|
|
|
|
28,769
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended August 31,
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
As Reported (GAAP)
|
|
|
Adjustments
|
|
|
Adjusted
(non-GAAP)
|
|
|
|
As Reported (GAAP)
|
|
|
Adjustments
|
|
|
Adjusted
(non-GAAP)
|
|
Sales revenue, net
|
|
|
$
|
714,474
|
|
|
100.0
|
|
%
|
|
$
|
-
|
|
|
|
$
|
714,474
|
|
|
100.0
|
|
%
|
|
|
$
|
631,727
|
|
|
100.0
|
|
%
|
|
$
|
-
|
|
|
|
$
|
631,727
|
|
|
100.0
|
|
%
|
Cost of goods sold
|
|
|
|
423,150
|
|
|
59.2
|
|
%
|
|
|
-
|
|
|
|
|
423,150
|
|
|
59.2
|
|
%
|
|
|
|
378,463
|
|
|
59.9
|
|
%
|
|
|
-
|
|
|
|
|
378,463
|
|
|
59.9
|
|
%
|
Gross profit
|
|
|
|
291,324
|
|
|
40.8
|
|
%
|
|
|
-
|
|
|
|
|
291,324
|
|
|
40.8
|
|
%
|
|
|
|
253,264
|
|
|
40.1
|
|
%
|
|
|
-
|
|
|
|
|
253,264
|
|
|
40.1
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expense
|
|
|
|
229,349
|
|
|
32.1
|
|
%
|
|
|
(3,938
|
)
|
(2
|
)
|
|
|
211,389
|
|
|
29.6
|
|
%
|
|
|
|
196,538
|
|
|
31.1
|
|
%
|
|
|
(3,212
|
)
|
(2
|
)
|
|
|
178,141
|
|
|
28.2
|
|
%
|
|
|
|
|
|
|
|
|
|
|
(14,022
|
)
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(11,574
|
)
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,611
|
)
|
(4
|
)
|
|
|
|
|
|
|
Asset impairment charges
|
|
|
|
3,000
|
|
|
0.4
|
|
%
|
|
|
(3,000
|
)
|
(5
|
)
|
|
|
-
|
|
|
-
|
|
%
|
|
|
|
9,000
|
|
|
1.4
|
|
%
|
|
|
(9,000
|
)
|
(5
|
)
|
|
|
-
|
|
|
-
|
|
%
|
Operating income
|
|
|
|
58,975
|
|
|
8.3
|
|
%
|
|
|
20,960
|
|
|
|
|
79,935
|
|
|
11.2
|
|
%
|
|
|
|
47,726
|
|
|
7.6
|
|
%
|
|
|
27,397
|
|
|
|
|
75,123
|
|
|
11.9
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income, net
|
|
|
|
91
|
|
|
-
|
|
%
|
|
|
-
|
|
|
|
|
91
|
|
|
-
|
|
%
|
|
|
|
147
|
|
|
-
|
|
%
|
|
|
-
|
|
|
|
|
147
|
|
|
-
|
|
%
|
Interest expense
|
|
|
|
(5,394
|
)
|
|
(0.8
|
)
|
%
|
|
|
-
|
|
|
|
|
(5,394
|
)
|
|
(0.8
|
)
|
%
|
|
|
|
(7,415
|
)
|
|
(1.2
|
)
|
%
|
|
|
-
|
|
|
|
|
(7,415
|
)
|
|
(1.2
|
)
|
%
|
Total other expense
|
|
|
|
(5,303
|
)
|
|
(0.7
|
)
|
%
|
|
|
-
|
|
|
|
|
(5,303
|
)
|
|
(0.7
|
)
|
%
|
|
|
|
(7,268
|
)
|
|
(1.2
|
)
|
%
|
|
|
-
|
|
|
|
|
(7,268
|
)
|
|
(1.2
|
)
|
%
|
Income before income taxes
|
|
|
|
53,672
|
|
|
7.5
|
|
%
|
|
|
20,960
|
|
|
|
|
74,632
|
|
|
10.4
|
|
%
|
|
|
|
40,458
|
|
|
6.4
|
|
%
|
|
|
27,397
|
|
|
|
|
67,855
|
|
|
10.7
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
8,810
|
|
|
1.2
|
|
%
|
|
|
2,787
|
|
(6
|
)
|
|
|
11,597
|
|
|
1.6
|
|
%
|
|
|
|
5,221
|
|
|
0.8
|
|
%
|
|
|
3,323
|
|
(6
|
)
|
|
|
8,544
|
|
|
1.4
|
|
%
|
Net income
|
|
|
$
|
44,862
|
|
|
6.3
|
|
%
|
|
$
|
18,173
|
|
|
|
$
|
63,035
|
|
|
8.8
|
|
%
|
|
|
$
|
35,237
|
|
|
5.6
|
|
%
|
|
$
|
24,074
|
|
|
|
$
|
59,311
|
|
|
9.4
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
|
$
|
1.54
|
|
|
|
|
|
$
|
0.63
|
|
|
|
$
|
2.17
|
|
|
|
|
|
|
$
|
1.21
|
|
|
|
|
|
$
|
0.82
|
|
|
|
$
|
2.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
used in computing diluted EPS
|
|
|
|
29,037
|
|
|
|
|
|
|
-
|
|
|
|
|
29,037
|
|
|
|
|
|
|
|
29,192
|
|
|
|
|
|
|
-
|
|
|
|
|
29,192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES
|
|
Net Sales Revenue by Segment (7)
(Unaudited)
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended August 31,
|
|
|
|
|
|
|
|
% of Sales Revenue, net
|
|
|
|
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
|
|
2015
|
|
|
2014
|
|
Sales revenue by segment, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Housewares
|
|
|
$
|
78,848
|
|
$
|
69,637
|
|
$
|
9,211
|
|
13.2
|
%
|
|
21.4
|
%
|
|
21.8
|
%
|
Healthcare / Home Environment
|
|
|
|
143,254
|
|
|
126,218
|
|
|
17,036
|
|
13.5
|
%
|
|
38.8
|
%
|
|
39.4
|
%
|
Nutritional Supplements
|
|
|
|
38,048
|
|
|
24,634
|
|
|
13,414
|
|
54.5
|
%
|
|
10.3
|
%
|
|
7.7
|
%
|
Beauty
|
|
|
|
108,979
|
|
|
99,460
|
|
|
9,519
|
|
9.6
|
%
|
|
29.5
|
%
|
|
31.1
|
%
|
Total sales revenue, net
|
|
|
$
|
369,129
|
|
$
|
319,949
|
|
$
|
49,180
|
|
15.4
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended August 31,
|
|
|
|
|
|
|
|
% of Sales Revenue, net
|
|
|
|
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
|
|
2015
|
|
|
2014
|
|
Sales revenue by segment, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Housewares
|
|
|
$
|
144,034
|
|
$
|
136,393
|
|
$
|
7,641
|
|
5.6
|
%
|
|
20.2
|
%
|
|
21.6
|
%
|
Healthcare / Home Environment
|
|
|
|
286,296
|
|
|
268,707
|
|
|
17,589
|
|
6.5
|
%
|
|
40.1
|
%
|
|
42.5
|
%
|
Nutritional Supplements
|
|
|
|
77,488
|
|
|
24,634
|
|
|
52,854
|
|
*
|
|
|
10.8
|
%
|
|
3.9
|
%
|
Beauty
|
|
|
|
206,656
|
|
|
201,993
|
|
|
4,663
|
|
2.3
|
%
|
|
28.9
|
%
|
|
32.0
|
%
|
Total sales revenue, net
|
|
|
$
|
714,474
|
|
$
|
631,727
|
|
$
|
82,747
|
|
13.1
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
______________________________________
|
|
|
|
|
|
|
|
|
|
|
|
|
* Calculation is not meaningful or comparable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES
|
|
Selected Consolidated Balance Sheet, Cash Flow and Liquidity
Information
(Unaudited)
(in thousands)
|
|
|
|
|
|
|
|
|
|
August 31,
|
|
|
2015
|
|
2014
|
Balance Sheet:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
19,405
|
|
$
|
24,726
|
|
Receivables, net
|
|
|
227,147
|
|
|
217,066
|
|
Inventory, net
|
|
|
348,463
|
|
|
351,823
|
|
Total assets, current
|
|
|
633,929
|
|
|
635,081
|
|
Total assets
|
|
|
1,746,986
|
|
|
1,740,985
|
|
Total liabilities, current
|
|
|
311,066
|
|
|
769,021
|
|
Total long-term liabilities
|
|
|
524,654
|
|
|
170,154
|
|
Total debt
|
|
|
479,307
|
|
|
604,607
|
|
Stockholders' equity
|
|
|
911,266
|
|
|
801,810
|
|
|
|
|
|
|
|
|
Cash Flow:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
$
|
21,227
|
|
$
|
18,493
|
|
Net cash provided by operating activities
|
|
|
51,618
|
|
|
17,995
|
|
Capital and intangible asset expenditures
|
|
|
5,946
|
|
|
3,688
|
|
Payments to acquire businesses, net of cash received
|
|
|
42,750
|
|
|
195,943
|
|
Net amounts borrowed
|
|
|
46,100
|
|
|
412,000
|
|
|
|
|
|
|
|
|
Liquidity:
|
|
|
|
|
|
|
Working Capital
|
|
$
|
322,863
|
|
$
|
(133,940
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 August 31,
|
|
Six Months Ended August 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net income
|
|
$
|
24,452
|
|
$
|
18,839
|
|
$
|
44,862
|
|
$
|
35,237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
2,495
|
|
|
3,986
|
|
|
5,368
|
|
|
7,382
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
5,431
|
|
|
1,863
|
|
|
8,810
|
|
|
5,221
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization, excluding amortized interest
|
|
|
10,873
|
|
|
9,993
|
|
|
21,227
|
|
|
18,493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (Earnings before interest, taxes, depreciation and
amortization)
|
|
$
|
43,251
|
|
$
|
34,681
|
|
$
|
80,267
|
|
$
|
66,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as calculated above
|
|
$
|
43,251
|
|
$
|
34,681
|
|
$
|
80,267
|
|
$
|
66,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash share-based compensation (2)
|
|
|
1,877
|
|
|
1,917
|
|
|
3,938
|
|
|
3,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related expenses (4)
|
|
|
-
|
|
|
3,611
|
|
|
-
|
|
|
3,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash asset impairment charges (5)
|
|
|
-
|
|
|
-
|
|
|
3,000
|
|
|
9,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$
|
45,128
|
|
$
|
40,209
|
|
$
|
87,205
|
|
$
|
82,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 August 31, 2015
|
|
|
Housewares
|
|
Healthcare / Home Environment
|
|
Nutritional Supplements
|
|
Beauty
|
|
Total
|
Operating Income
|
|
$
|
15,142
|
|
$
|
4,808
|
|
$
|
2,969
|
|
$
|
9,513
|
|
|
$
|
32,432
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization, excluding amortized interest
|
|
|
1,075
|
|
|
5,514
|
|
|
1,965
|
|
|
2,319
|
|
|
|
10,873
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income / (expense)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(54
|
)
|
|
|
(54
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (Earnings before interest, taxes, depreciation and
amortization)
|
|
$
|
16,217
|
|
$
|
10,322
|
|
$
|
4,934
|
|
$
|
11,778
|
|
|
$
|
43,251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as calculated above
|
|
$
|
16,217
|
|
$
|
10,322
|
|
$
|
4,934
|
|
$
|
11,778
|
|
|
$
|
43,251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Non-cash share-based compensation (2)
|
|
|
325
|
|
|
533
|
|
|
273
|
|
|
746
|
|
|
|
1,877
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related expenses (4)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash asset impairment charges (5)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$
|
16,542
|
|
$
|
10,855
|
|
$
|
5,207
|
|
$
|
12,524
|
|
|
$
|
45,128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended August 31, 2014
|
|
|
Housewares
|
|
Healthcare / Home Environment
|
|
Nutritional Supplements
|
|
Beauty
|
|
Total
|
Operating Income
|
|
$
|
13,891
|
|
$
|
4,508
|
|
$
|
110
|
|
$
|
6,094
|
|
|
$
|
24,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization, excluding amortized interest
|
|
|
889
|
|
|
5,027
|
|
|
1,359
|
|
|
2,718
|
|
|
|
9,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income / (expense)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
85
|
|
|
|
85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (Earnings before interest, taxes, depreciation and
amortization)
|
|
$
|
14,780
|
|
$
|
9,535
|
|
$
|
1,469
|
|
$
|
8,897
|
|
|
$
|
34,681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as calculated above
|
|
$
|
14,780
|
|
$
|
9,535
|
|
$
|
1,469
|
|
$
|
8,897
|
|
|
$
|
34,681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Non-cash share-based compensation (2)
|
|
|
260
|
|
|
81
|
|
|
-
|
|
|
1,576
|
|
|
|
1,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related expenses (4)
|
|
|
-
|
|
|
-
|
|
|
3,611
|
|
|
-
|
|
|
|
3,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash asset impairment charges (5)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$
|
15,040
|
|
$
|
9,616
|
|
$
|
5,080
|
|
$
|
10,473
|
|
|
$
|
40,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
Six Months Ended August 31, 2015
|
|
|
Housewares
|
|
Healthcare / Home Environment
|
|
Nutritional Supplements
|
|
Beauty
|
|
Total
|
Operating income
|
|
$
|
26,325
|
|
$
|
13,226
|
|
$
|
5,589
|
|
$
|
13,835
|
|
$
|
58,975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization, excluding amortized interest
|
|
|
2,083
|
|
|
10,577
|
|
|
3,933
|
|
|
4,634
|
|
|
21,227
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income / (expense)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
65
|
|
|
65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (Earnings before interest, taxes, depreciation and
amortization)
|
|
$
|
28,408
|
|
$
|
23,803
|
|
$
|
9,522
|
|
$
|
18,534
|
|
$
|
80,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as calculated above
|
|
$
|
28,408
|
|
$
|
23,803
|
|
$
|
9,522
|
|
$
|
18,534
|
|
$
|
80,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Non-cash share-based compensation (2)
|
|
|
631
|
|
|
1,128
|
|
|
576
|
|
|
1,603
|
|
|
3,938
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related expenses (4)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash asset impairment charges (5)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,000
|
|
|
3,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$
|
29,039
|
|
$
|
24,931
|
|
$
|
10,098
|
|
$
|
23,137
|
|
$
|
87,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended August 31, 2014
|
|
|
Housewares
|
|
Healthcare / Home Environment
|
|
Nutritional Supplements
|
|
Beauty
|
|
Total
|
Operating income
|
|
$
|
26,926
|
|
$
|
13,225
|
|
$
|
110
|
|
$
|
7,465
|
|
$
|
47,726
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization, excluding amortized interest
|
|
|
1,777
|
|
|
10,259
|
|
|
1,359
|
|
|
5,098
|
|
|
18,493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income / (expense)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
114
|
|
|
114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (Earnings before interest, taxes, depreciation and
amortization)
|
|
$
|
28,703
|
|
$
|
23,484
|
|
$
|
1,469
|
|
$
|
12,677
|
|
$
|
66,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as calculated above
|
|
$
|
28,703
|
|
$
|
23,484
|
|
$
|
1,469
|
|
$
|
12,677
|
|
$
|
66,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Non-cash share-based compensation (2)
|
|
|
534
|
|
|
662
|
|
|
-
|
|
|
2,016
|
|
|
3,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related expenses (4)
|
|
|
-
|
|
|
-
|
|
|
3,611
|
|
|
-
|
|
|
3,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash asset impairment charges (5)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
9,000
|
|
|
9,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$
|
29,237
|
|
$
|
24,146
|
|
$
|
5,080
|
|
$
|
23,693
|
|
$
|
82,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
(dollars in thousands, except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended August 31,
|
|
Basic EPS
|
|
Diluted EPS
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net income as reported (GAAP)
|
|
$
|
24,452
|
|
$
|
18,839
|
|
$
|
0.86
|
|
$
|
0.66
|
|
$
|
0.84
|
|
$
|
0.65
|
Acquisition-related expenses, net of tax (4)
|
|
|
-
|
|
|
2,306
|
|
|
-
|
|
|
0.08
|
|
|
-
|
|
|
0.08
|
Subtotal
|
|
|
24,452
|
|
|
21,145
|
|
|
0.86
|
|
|
0.75
|
|
|
0.84
|
|
|
0.73
|
Non-cash share-based compensation, net of tax (2)
|
|
|
1,603
|
|
|
1,671
|
|
|
0.06
|
|
|
0.06
|
|
|
0.06
|
|
|
0.06
|
Amortization of intangible assets, net of tax (3)
|
|
|
6,278
|
|
|
5,732
|
|
|
0.22
|
|
|
0.20
|
|
|
0.22
|
|
|
0.20
|
Adjusted income (non-GAAP)
|
|
$
|
32,333
|
|
$
|
28,548
|
|
$
|
1.14
|
|
$
|
1.00
|
|
$
|
1.12
|
|
$
|
0.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock used in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
computing basic and diluted earnings per share (GAAP)
|
|
|
|
|
|
|
|
|
28,435
|
|
|
28,372
|
|
|
28,986
|
|
|
28,769
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended August 31,
|
|
Basic EPS
|
|
Diluted EPS
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net income as reported (GAAP)
|
|
$
|
44,862
|
|
$
|
35,237
|
|
$
|
1.58
|
|
$
|
1.23
|
|
$
|
1.54
|
|
$
|
1.21
|
Acquisition-related expenses, net of tax (4)
|
|
|
-
|
|
|
2,306
|
|
|
-
|
|
|
0.08
|
|
|
-
|
|
|
0.08
|
Asset impairment charges, net of tax (5)
|
|
|
2,656
|
|
|
8,155
|
|
|
0.09
|
|
|
0.28
|
|
|
0.09
|
|
|
0.28
|
Subtotal
|
|
|
47,518
|
|
|
45,698
|
|
|
1.67
|
|
|
1.59
|
|
|
1.64
|
|
|
1.57
|
Non-cash share-based compensation, net of tax (2)
|
|
|
3,345
|
|
|
2,839
|
|
|
0.12
|
|
|
0.10
|
|
|
0.12
|
|
|
0.10
|
Amortization of intangible assets, net of tax (3)
|
|
|
12,172
|
|
|
10,774
|
|
|
0.43
|
|
|
0.37
|
|
|
0.42
|
|
|
0.37
|
Adjusted income (non-GAAP)
|
|
$
|
63,035
|
|
$
|
59,311
|
|
$
|
2.21
|
|
$
|
2.06
|
|
$
|
2.17
|
|
$
|
2.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock used in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
computing basic and diluted earnings per share (non-GAAP)
|
|
|
|
|
|
|
|
|
28,478
|
|
|
28,738
|
|
|
29,037
|
|
|
29,192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES
|
|
Reconciliation of Fiscal Year 2016 GAAP Outlook for GAAP
Diluted Earnings Per Share (EPS)
to Adjusted Diluted EPS (non-GAAP) (1) (8)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended February 29, 2016
|
|
|
Period Ended August 31, 2015 (Six Months)
|
|
Outlook for the Balance of the Fiscal Year (Six
Months)
|
|
Outlook for the Fiscal Year (Twelve Months)
|
Diluted EPS, as reported (GAAP)
|
|
$
|
1.54
|
|
$
|
2.80
|
-
|
$
|
3.10
|
|
|
4.34
|
-
|
$
|
4.64
|
Asset impairment charges, net of tax (5)
|
|
|
0.09
|
|
|
-
|
-
|
|
-
|
|
|
0.09
|
-
|
|
0.09
|
Subtotal
|
|
|
1.63
|
|
|
2.80
|
-
|
|
3.10
|
|
|
4.43
|
-
|
|
4.73
|
Non-cash share-based compensation, net of tax (2)
|
|
|
0.12
|
|
|
0.13
|
-
|
|
0.16
|
|
|
0.25
|
-
|
|
0.28
|
Amortization of intangible assets, net of tax (3)
|
|
|
0.42
|
|
|
0.40
|
-
|
|
0.42
|
|
|
0.82
|
-
|
|
0.84
|
Adjusted diluted EPS (non-GAAP)
|
|
$
|
2.17
|
|
$
|
3.33
|
-
|
$
|
3.68
|
|
$
|
5.50
|
-
|
$
|
5.85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES
|
____________________________
|
Notes to Press Release
|
|
|
|
(1)
|
|
This press release contains non-GAAP financial measures. Adjusted
operating income, adjusted income, adjusted diluted EPS, EBITDA
and adjusted EBITDA ("Non-GAAP measures") that are discussed in
the accompanying press release or in the preceding tables are
considered non-GAAP financial information as contemplated by SEC
Regulation G, Rule 100. Accordingly, we are providing the
preceding tables that reconcile these measures to their
corresponding GAAP-based measures presented in our Consolidated
Condensed Statements of Income in the accompanying tables to the
press release. The Company believes that these non-GAAP measures
provide useful information to management and investors regarding
financial and business trends relating to its financial condition
and results of operations. The Company believes that these
non-GAAP measures, in combination with the Company's financial
results calculated in accordance with GAAP, provides investors
with additional perspective. The Company further believes that the
items excluded from certain non-GAAP measures do not accurately
reflect the underlying performance of its continuing operations
for the 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 for the three months ended August 31, 2015 and 2014
consist of non-cash share-based compensation expense of $1.88
million ($1.60 million after tax) and $1.92 million ($1.67 million
after tax), respectively. Adjustments for the six months ended
August 31, 2015 and 2014 consist of non-cash share-based
compensation expense of $3.94 million ($3.35 million after tax)
and $3.21 million ($2.84 million after tax), respectively.
Share-based compensation expense is recognized for share-based
awards outstanding under share-based compensation plans.
|
|
|
|
(3)
|
|
Adjustments for the three months ended August 31, 2015 and 2014
consist of non-cash intangible asset amortization expense of $7.21
million ($6.28 million after tax) and $6.32 million ($5.73 million
after tax), respectively. Adjustments for the six months ended
August 31, 2015 and 2014 consist of non-cash intangible asset
amortization expense of $14.02 million ($12.17 million after tax)
and $11.57 million ($10.77 million after tax), respectively.
|
|
|
|
(4)
|
|
Adjustment consists of expenses of $3.61 million ($2.31 million
after tax) incurred in connection with the Healthy Directions
acquisition in the second quarter of fiscal year 2015.
|
|
|
|
(5)
|
|
Adjustments for the six months ended August 31, 2015 and 2014
consist of non-cash asset impairment charges of $3.00 million
($2.66 million after tax) and $9.00 million ($8.16 million after
tax) recorded as a result of our annual evaluation of goodwill and
indefinite-lived intangible assets for impairment. The non-cash
charges relate to certain trademarks in our Beauty segment, which
were written down to their estimated fair value, determined on the
basis of future discounted cash flows using the relief from
royalty valuation method.
|
|
|
|
(6)
|
|
Total tax effects of adjustments described in Notes 2 through 5,
for each of the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended August 31,
|
|
Six Months Ended August 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Tax Effects of Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash share-based compensation (2)
|
|
$
|
(274
|
)
|
|
$
|
(246
|
)
|
|
$
|
(593
|
)
|
|
$
|
(373
|
)
|
Amortization of intangible assets (3)
|
|
|
(930
|
)
|
|
|
(583
|
)
|
|
|
(1,850
|
)
|
|
|
(800
|
)
|
Acquisition-related expenses (4)
|
|
|
-
|
|
|
|
(1,305
|
)
|
|
|
-
|
|
|
|
(1,305
|
)
|
Asset impairment charges (5)
|
|
|
-
|
|
|
|
-
|
|
|
|
(344
|
)
|
|
|
(845
|
)
|
Total
|
|
$
|
(1,204
|
)
|
|
$
|
(2,134
|
)
|
|
$
|
(2,787
|
)
|
|
$
|
(3,323
|
)
|
(7)
|
|
Healthy Directions was acquired on June 30, 2014 and its operations
are reported under the Nutritional Supplements segment. Results
reported include three- and two- months respectively, and six- and
two-months, respectively for the fiscal quarter and year-to-date
periods ended August 31, 2015 and 2014.
|
|
|
|
|
|
The VapoSteam business was acquired on March 31, 2015 and its
operations are reported under the Healthcare / Home environment
segment. Results reported include three- and five- months,
respectively, for the fiscal quarter and year-to-date periods ended
August 31, 2015.
|
|
|
|
(8)
|
|
The diluted EPS outlook is based on an estimated weighted average
shares outstanding of 28.8 million for fiscal year 2016.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151008006451/en/
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