[April 26, 2018] |
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Helen of Troy Limited Reports Fourth Quarter Fiscal 2018 Results
Helen of Troy Limited (NASDAQ:HELE), designer, developer and
worldwide marketer of consumer brand-name housewares, health and home
and beauty products, today reported results for the three-month period
ended February 28, 2018. Following the divestiture of Healthy Directions
on December 20, 2017, the Company no longer consolidates the Nutritional
Supplements segment's operating results. The former segment's operating
results are included in the Company's financial statements and
classified as discontinued operations for all periods presented.
Executive Summary - Fourth Quarter of Fiscal
2018
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Consolidated net sales revenue increase of 12.5%, including:
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An increase in Leadership Brand net sales of approximately 16.0%
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An increase in online channel net sales of approximately 28.0%
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Core business growth of 11.3%
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GAAP operating income of $31.4 million, or 8.0% of net sales, which
includes $11.4 million in pre-tax non-cash asset impairment charges
and $0.7 million in restructuring charges, compared to $41.5 million,
or 11.9% of net sales, which includes $0.5 million in pre-tax non-cash
impairment charges, in the same period last year
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Non-GAAP adjusted operating income growth of 4.2% to $52.7 million, or
13.5% of net sales, compared to $50.5 million, or 14.5% of net sales
in the same period last year
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One-time provisional charge of $17.9 million related to
recently-passed U.S. tax reform
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GAAP diluted EPS from continuing operations of $0.31, which includes a
total of $1.07 per share in tax reform, impairment and restructuring
charges, compared to GAAP diluted EPS from continuing operations of
$1.25 in the same period last year, which includes $0.02 per share in
impairment charges
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Non-GAAP adjusted diluted EPS from continuing operations growth of
9.0% to $1.69, compared to $1.55 in the same period last year
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Repurchased 409,121 shares of common stock in the open market during
the quarter for $36.9 million
Executive Summary - Fiscal 2018
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Consolidated net sales revenue growth of 5.9%, including:
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An increase in Leadership Brand net sales of approximately 9.5%
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An increase in online channel net sales of approximately 32.5%
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Core business growth of 5.1%
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GAAP operating income of $169.1 million, or 11.3% of net sales, which
includes $15.4 million in pre-tax non-cash asset impairment charges,
$1.9 million in restructuring charges and a $3.6 million charge
related to the bankruptcy of Toys 'R' Us (TRU), compared to $169.7
million, or 12.1% of net sales, which includes $2.9 million in pre-tax
non-cash impairment charges and a patent litigation charge of $1.5
million, in the same period last year
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Non-GAAP adjusted operating income growth of 6.6% to $223.9 million,
or 15.0% of net sales, compared to $209.9 million, or 14.9% of net
sales in the same period last year
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One-time provisional charge of $17.9 million related to
recently-passed U.S. tax reform
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GAAP diluted EPS from continuing operations of $4.73, which includes a
total of $1.36 per share in tax reform, impairment, TRU bankruptcy and
restructuring charges, compared to GAAP diluted EPS from continuing
operations of $5.17 in the same period last year, which includes a
total of $0.14 per share in impairment and patent litigation charges
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Non-GAAP adjusted diluted EPS from continuing operations growth of
11.6% to $7.24, compared to $6.49 in the same period last year
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Net cash provided by operating activities of $218.6 million and free
cash flow of $205.0 million, which represents a yield of 8.9%, based
on our current market capitalization
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Repaid $197.0 million of debt and repurchased $65.8 million of common
stock
Julien R. Mininberg, Chief Executive Officer, stated: "I am very pleased
with our results in the fourth quarter, which rounded out a particularly
strong fiscal year performance, marking our fourth consecutive year of
executing well against our transformational strategy. During the fourth
quarter, we delivered a strong 12.5% increase in consolidated net sales
and adjusted diluted EPS from continuing operations growth of 9%, both
above our expectations. Better than expected momentum from all three of
our business segments helped us achieve a 16% increase in our Leadership
Brands' net sales and a 28% increase in online channel net sales. Our
Health & Home segment experienced one of its strongest quarters in
years, with sales up 19.4% as our products provided comfort and relief
to families around the world during a particularly severe, global cough,
cold and flu season and periods of unseasonably cold weather. Our
Housewares segment also demonstrated excellent growth, with sales up
13.4% and strength across both brands, online, and in brick and mortar.
Sales in our Beauty segment had a less than expected decline of 2.1%,
with solid growth in the online channel, partially offsetting a decline
in brick and mortar.
For the fiscal year we grew net sales 5.9%, increased adjusted diluted
EPS from continuing operations by 11.6%, and generated a free cash flow
yield of 8.9%, based on our current market capitalization. We improved
our return on invested capital with strong income growth and the
divestiture of Healthy Directions. Adhering to our strategies, we
invested in our core to grow our Leadership Brands, made further
efficiency gains in our shared services, initiated Project Refuel to
streamline the business, opportunistically repurchased stock and paid
down debt."
Mr. Mininberg continued: "Just four years ago we began our
transformation by focusing on strategies to unlock additional
shareholder value. Since then, on a continuing operations basis, we
increased sales at a 3.1% CAGR, expanded adjusted operating margin by
1.1 percentage points, improved asset efficiency, increased free cash
flow at a 15.9% CAGR, and grew adjusted diluted EPS at a 12.6% CAGR,
while making incremental investments in the long-term health of our
Leadership Brands. I am very proud of these results and of our
outstanding employees all around the world who have worked tirelessly to
achieve them. As I look to fiscal 2019, we are pleased to provide an
outlook that reflects continued top and bottom line growth on top of a
strong fiscal 2018, even as our industry faces challenges including
rising commodity costs and a fast-changing retail landscape. I am very
excited about our future prospects. Helen of Troy has become an
organization that is even more capable of winning with digital
marketing, adapting to change in our channels, and improving our
operations and other shared services to capitalize on future growth
opportunities. Our enhanced infrastructure is ready to add new
businesses and operate all our segments with greater efficiencies."
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Three Months Ended February 28,
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Housewares
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Health & Home
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Beauty
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Total
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Fiscal 2017 sales revenue, net
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$
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102,826
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$
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162,119
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$
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82,424
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$
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347,369
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Core business
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13,424
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28,573
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(2,636)
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39,361
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Impact of foreign currency
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404
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2,811
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902
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4,117
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Change in sales revenue, net
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13,828
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31,384
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(1,734)
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43,478
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Fiscal 2018 sales revenue, net
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$
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116,654
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$
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193,503
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$
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80,690
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$
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390,847
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Total net sales revenue growth
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13.4
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%
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19.4
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%
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(2.1)
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%
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12.5
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%
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Core business
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13.1
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%
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17.6
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%
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(3.2)
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%
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11.3
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%
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Impact of foreign currency
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0.4
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%
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1.7
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%
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1.1
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%
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1.2
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%
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Operating margin (GAAP)
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Fourth quarter fiscal 2018
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15.6
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%
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6.6
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%
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0.4
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%
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8.0
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%
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Fourth quarter fiscal 2017
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20.0
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%
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7.9
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%
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9.8
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%
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11.9
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%
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Adjusted operating margin (non-GAAP)
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Fourth quarter fiscal 2018
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17.5
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%
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9.0
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%
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18.5
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%
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13.5
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%
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Fourth quarter fiscal 2017
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21.4
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%
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10.7
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%
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13.6
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%
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14.5
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%
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Consolidated Operating Results - Fourth Quarter
Fiscal 2018 Compared to Fourth Quarter Fiscal 2017
Consolidated net sales revenue increased 12.5% to $390.8 million
compared to $347.4 million, which includes an increase of 1.2% from
foreign currency fluctuations. The net sales increase also includes the
contribution from new product introductions, online customer growth,
incremental distribution, and growth in international sales.
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Consolidated gross profit margin decreased 0.3 percentage points to
41.3% compared to 41.6%. The decrease in consolidated gross profit
margin is primarily due to an increase in promotional programs and
unfavorable channel mix, partially offset by favorable product mix,
growth in the Company's Leadership Brands and the favorable impact
from foreign currency fluctuations.
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Consolidated SG&A as a percentage of sales increased by 0.6 percentage
points to 30.1% of net sales compared to 29.5%. The increase is
primarily due to higher incentive compensation expense, the
unfavorable comparative impact of foreign currency exchange and
forward contract settlements, and higher advertising and new product
development expense. These factors were partially offset by improved
distribution efficiency, lower outbound freight costs, and the impact
that higher overall net sales had on operating leverage.
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Operating income was $31.4 million, or 8.0% of net sales, compared to
$41.5 million, or 11.9% of net sales, in the same period last year.
Operating income includes pre-tax non-cash asset impairment charges of
$11.4 million and pre-tax restructuring charges of $0.7 million,
compared to pre-tax non-cash asset impairment charges of $0.5 million
in the same period last year. These items unfavorably impacted the
year-over-year comparison of operating margin by 3.0 percentage
points. The remaining decrease in consolidated operating margin
primarily reflects the decline in gross profit margin, higher
incentive compensation expense, the unfavorable comparative impact of
foreign currency exchange and forward contract settlements, and higher
advertising and new product development expense. These decreases were
partially offset by a higher mix of Leadership Brand sales at a higher
operating margin, improved distribution efficiency, lower outbound
freight costs, and the impact that higher overall net sales had on
operating leverage.
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Income tax expense as a percentage of pre-tax income was 70.6%,
compared to income tax expense of 9.3% for the same period last year.
The increase in the Company's tax rate is primarily due to a one-time
provisional charge of $17.9 million related to recently-passed U.S.
tax reform, which increased the effective tax rate by 62.9 percentage
points.
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Income from continuing operations was $8.4 million, or $0.31 per
diluted share on 27.1 million weighted average shares outstanding,
compared to $34.4 million, or $1.25 per diluted share on 27.6 million
weighted average diluted shares outstanding. Income from continuing
operations for the fourth quarter of fiscal 2018 includes after-tax
non-cash asset impairment charges of $10.3 million ($0.38 per share),
a one-time tax reform charge of $17.9 million ($0.66 per share), and
after-tax restructuring charges of $0.7 million ($0.03 per share).
This compares to after tax non-cash asset impairment charges of $0.4
million ($0.02 per share) in the same period last year.
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Income from discontinued operations, net of tax, was $51.7 million,
compared to $1.3 million in the same period last year. Diluted EPS
from discontinued operations was $1.91 compared to $0.05 in the same
period last year. Fourth quarter fiscal 2018 income from discontinued
operations includes a tax benefit of $49.2 million related to non-cash
asset impairment charges.
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Adjusted EBITDA (EBITDA excluding non-cash asset impairment charges,
restructuring charges, and non-cash share based compensation, as
applicable) increased 4.1% to $56.6 million compared to $54.4 million.
On an adjusted basis for the fourth quarters of fiscal 2018 and 2017,
excluding non-cash asset impairment charges, restructuring charges, the
one-time tax reform charge, non-cash share based compensation, and
non-cash amortization of intangible assets, as applicable:
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Adjusted operating income was $52.7 million, or 13.5% of net sales,
compared to $50.5 million, or 14.5% of net sales. The 1.0 percentage
point decrease in adjusted operating margin primarily reflects the
decline in gross profit margin, higher incentive compensation expense,
the unfavorable comparative impact of foreign currency exchange and
forward contract settlements, and higher advertising and new product
development expense. These decreases were partially offset by a higher
mix of Leadership Brand sales at a higher operating margin, improved
distribution efficiency, lower outbound freight costs, and the impact
that higher overall net sales had on operating leverage.
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Adjusted income from continuing operations was $45.7 million, or $1.69
per diluted share, compared to $42.7 million, or $1.55 per diluted
share. The 9.0% increase in adjusted diluted EPS from continuing
operations primarily reflects the impact of higher adjusted operating
income, lower interest expense, and lower weighted average diluted
shares outstanding year-over-year.
Segment Operating Results - Fourth Quarter
Fiscal 2018 Compared to Fourth Quarter Fiscal 2017
Housewares net sales increased by 13.4% reflecting an increase in online
channel sales, incremental distribution with existing customers,
expanded domestic distribution, international growth, and new product
introductions for both Hydro Flask and OXO brands. This growth was
partially offset by the unfavorable comparative impact of strong sales
into the club channel in the same period last year. Segment net sales
also benefitted from the favorable impact of net foreign currency
fluctuations of approximately $0.4 million, or 0.4%. GAAP operating
margin was 15.6% compared to 20.0%. The decrease in operating margin is
primarily due to an increase in promotional programs, unfavorable
channel mix, higher marketing and new product development expense,
higher personnel costs, and restructuring charges of $0.2 million.
Health & Home net sales increased 19.4% reflecting growth in online
channel sales, expanded international distribution, and incremental
distribution with existing customers. Sales were favorably impacted by
unseasonably cold fall and winter weather, and significantly higher
cough/cold/flu incidence compared to the same period last year. Segment
net sales also benefitted from the favorable impact of net foreign
currency fluctuations of approximately $2.8 million, or 1.7%. GAAP
operating margin was 6.6% compared to 7.9%. The decrease in operating
margin reflects higher advertising expense, higher incentive
compensation expense, an increase in product liability expense, and the
unfavorable comparative impact of foreign currency exchange and forward
contract settlements. The decrease was partially offset by improved
distribution efficiency, lower outbound freight costs, increased
operating leverage from net sales growth, and the favorable impact of
net foreign currency fluctuations on net sales.
Beauty net sales decreased 2.1% primarily reflecting a decline in brick
and mortar, which offset solid growth in the online channel. Segment net
sales benefitted from the favorable impact of net foreign currency
fluctuations of approximately $0.9 million, or 1.1%. GAAP operating
margin was 0.4% compared to 9.8%. Operating margin was unfavorably
impacted by non-cash asset impairment charges of $11.4 million and
restructuring charges of $0.5 million, compared to asset impairment
charges of $0.5 million in the same period last year. These items
unfavorably impacted the year over year comparison of operating margin
by 14.2 percentage points. The remaining improvement in operating margin
is primarily due to a favorable margin mix, lower media advertising
expense, and cost savings from our restructuring plan, Project Refuel.
The improvement was partially offset by the net sales decline and its
unfavorable impact on operating leverage.
Balance Sheet and Cash Flow Highlights
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Cash and cash equivalents totaled $20.7 million, compared to $23.8
million
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Total short- and long-term debt was $289.9 million, compared to $485.6
million, a net decrease of $195.7 million
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Accounts receivable turnover was 61.3 days, compared to 60.4 days
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Inventory was $251.5 million, compared to $280.9 million, a net
decrease of 10.5%. Inventory turnover was 3.0 times compared to 2.8
times
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Net cash provided by operating activities of $218.6 million and free
cash flow of $205.0 million for fiscal 2018, compared to net cash
provided by operating activities of $212.5 million and free cash flow
of $197.0 million for fiscal 2017
Fiscal 2019 Annual Outlook
For fiscal 2019, the Company expects consolidated net sales revenue in
the range of $1.485 to $1.510 billion, which implies consolidated sales
growth of 0.4% to 2.1% after accounting for the expected impact from the
adoption of ASU 2014-09 "Revenue from Contracts with Customers" (Revenue
Recognition Standard) in fiscal 2019 with conforming reclassifications
to fiscal 2018. We expect the adoption of the Revenue Recognition
Standard to result in the reclassification of certain expenses from SG&A
to a reduction of net sales revenue in the amount of $13.0 million in
fiscal 2019, with a corresponding conforming reduction to net sales
revenue of $10.9 million in fiscal 2018. Please refer to the table
entitled "Fiscal Year 2019 Outlook for Net Sales Revenue After Adoption
of Revenue Recognition Standard" in the accompanying tables to this
press release for additional information.
The Company's net sales outlook assumes the severity of the
cough/cold/flu season will be in line with historical averages, which
unfavorably impacts the year-over-year comparison by 1.1%. The Company's
net sales outlook also assumes that March 2018 foreign currency exchange
rates will remain constant for the remainder of the fiscal year.
Finally, the Company's net sales outlook reflects the following
expectations by segment:
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Housewares net sales growth in the mid-single digits;
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Health & Home net sales growth in the low-single digits, with an
unfavorable impact of approximately 2.5% from the average
cough/cold/flu assumption; and
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Beauty net sales decline in the low- to mid-single digits.
The Company expects consolidated GAAP diluted EPS from continuing
operations of $6.30 to $6.50 and non-GAAP adjusted diluted EPS from
continuing operations in the range of $7.30 to $7.55, which excludes any
asset impairment charges, restructuring charges, share-based
compensation expense and intangible asset amortization expense.
The year-over-year comparison of adjusted diluted EPS is impacted by an
expected increase in growth investments in support of the Company's
Leadership Brands of 14% to 18% in fiscal 2019. The year-over-year
comparison is also unfavorably impacted by approximately $0.12 to $0.14
from the average cough/cold/flu assumption and approximately $0.15 from
fiscal 2018 tax benefits that are not expected to repeat in fiscal 2019.
The Company's diluted EPS from continuing operations outlook assumes
that March 2018 foreign currency exchange rates will remain constant for
the remainder of the fiscal year. The diluted earnings per share outlook
is based on an estimated weighted average diluted shares outstanding of
27.0 million.
The Company expects net cash provided by operating activities growth in
the range of 10% to 12% for fiscal 2019. The Company expects capital
expenditures in the range of $30.0 million to $35.0 million, which
includes approximately $15.0 million in expected leasehold improvements
from multiple office relocations not expected to repeat in the near
future.
As previously announced, the Company has initiated Project Refuel, which
continues to target annualized profit improvement of approximately $8.0
million over the duration of the plan. The plan is estimated to be
completed by the first quarter of fiscal 2020, and the Company expects
to incur total cumulative restructuring charges in the range of $3.2 to
$4.8 million over the same period.
The Company expects a reported GAAP effective tax rate range of 9.0% to
11.0%, and an adjusted effective tax rate range of 8.7% to 10.7% for the
full fiscal year 2019, which reflect an ongoing benefit from U.S. tax
reform of approximately 1.0 percentage point. The Company's outlook
assumes that tax benefits of approximately $4.1 million recorded in
fiscal 2018 will not repeat in fiscal 2019, which unfavorably impacts
the year over year tax rate comparison by approximately 2.1 percentage
points. Please refer to the schedule entitled "Effective Tax Rate (GAAP)
and Adjusted Effective Tax Rate (Non-GAAP)" in the accompanying tables
to this press release.
The likelihood and potential impact of any fiscal 2019 acquisitions and
divestitures, future asset impairment charges, future foreign currency
fluctuations, or further share repurchases are unknown and cannot be
reasonably estimated; therefore, they are not included in the Company's
sales and earnings outlook.
Conference Call and Webcast
The Company will conduct a teleconference in conjunction with today's
earnings release. The teleconference begins at 9:00 a.m. Eastern Time
today, Thursday, April 26, 2018. Investors and analysts interested in
participating in the call are invited to dial (888) 882-4478
approximately ten minutes prior to the start of the call. The conference
call will also be webcast live at: http://investor.hotus.com/.
A telephone replay of this call will be available at 12:00 p.m. Eastern
Time on April 26, 2018 until 11:59 p.m. Eastern Time on May 3, 2018 and
can be accessed by dialing (844) 512-2921 and entering replay pin number
3106767. A replay of the webcast will remain available on the website
for one year.
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 Leadership Brand net
sales, adjusted operating income, adjusted operating margin, free cash
flow, adjusted effective tax rate, adjusted income, adjusted diluted
earnings per share, 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 operations. All
references to our continuing operations exclude the Nutritional
Supplements segment.
About Helen of Troy Limited
Helen of Troy Limited (NASDAQ: HELE) is a leading global consumer
products company offering creative solutions for its customers through a
strong portfolio of well-recognized and widely-trusted brands, including
OXO®, Hydro Flask®, Vicks®, Braun®, Honeywell®, PUR®, and Hot Tools®.
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 http://investor.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
years ended February 28, 2018 and 2017, and in our other filings with
the SEC. Investors are urged to refer to the risk factors referred to
above for a description of these risks. Such risks include, among
others, our ability to deliver products to our customers in a timely
manner and according to their fulfillment standards, the costs of
complying with the business demands and requirements of large
sophisticated customers, our relationships with key customers and
licensors, our dependence on the strength of retail economies and
vulnerabilities to any prolonged economic downturn, our dependence on
sales to several large customers and the risks associated with any loss
or substantial decline in sales to top customers, expectations regarding
any proposed restructurings, our recent and future acquisitions or
divestitures, including our ability to realize anticipated cost savings,
synergies and other benefits along with our ability to effectively
integrate acquired businesses or separate divested businesses,
circumstances which may contribute to future impairment of goodwill,
intangible or other long-lived assets, the retention and recruitment of
key personnel, foreign currency exchange rate fluctuations, disruptions
in U.S., U.K., Eurozone, 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, labor and energy on cost of goods sold and
certain operating expenses, the geographic concentration and peak season
capacity of certain U.S. distribution facilities increases our exposure
to significant shipping disruptions and added shipping and storage
costs, our projections of product demand, sales and net income are
highly subjective in nature and future sales and net income could vary
in a material amount from such projections, the risks associated with
the use of trademarks licensed from and to third parties, our ability to
develop and introduce a continuing stream of new products to meet
changing consumer preferences, trade barriers, exchange controls,
expropriations, and other risks associated with U.S. and foreign
operations, the risks to our liquidity as a result of changes to capital
market conditions and other constraints or events that impose
constraints on our cash resources and ability to operate our business,
the costs, complexity and challenges of upgrading and managing our
global information systems, the risks associated with information
security breaches, the risks associated with product recalls, product
liability, other claims, and related litigation against us, the risks
associated with accounting for tax positions, tax audits and related
disputes with taxing authorities, the risks of potential changes in laws
in the U.S. or abroad, including tax laws, regulations or treaties,
employment and health insurance laws and regulations, and laws relating
to environmental policy, personal data, financial regulation,
transportation policy and infrastructure policy along with the costs and
complexities of compliance with such laws, and our ability to continue
to avoid classification as a controlled foreign corporation. We
undertake no obligation to publicly update or revise any forward-looking
statements as a result of new information, future events or otherwise.
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HELEN OF TROY LIMITED AND SUBSIDIARIES Consolidated
Condensed Statements of Income (Unaudited) (in
thousands, except per share data)
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Three Months Ended February 28,
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2018
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2017
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Sales revenue, net
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|
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$
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390,847
|
|
100.0
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%
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|
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$
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347,369
|
|
100.0
|
%
|
Cost of goods sold
|
|
|
|
229,549
|
|
58.7
|
%
|
|
|
|
202,762
|
|
58.4
|
%
|
Gross profit
|
|
|
|
161,298
|
|
41.3
|
%
|
|
|
|
144,607
|
|
41.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expense ("SG&A")
|
|
|
|
117,727
|
|
30.1
|
%
|
|
|
|
102,607
|
|
29.5
|
%
|
Asset impairment charges
|
|
|
|
11,447
|
|
2.9
|
%
|
|
|
|
500
|
|
0.1
|
%
|
Restructuring charges(4)
|
|
|
|
691
|
|
0.2
|
%
|
|
|
|
-
|
|
-
|
%
|
Operating income
|
|
|
|
31,433
|
|
8.0
|
%
|
|
|
|
41,500
|
|
11.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income, net
|
|
|
|
47
|
|
-
|
%
|
|
|
|
70
|
|
-
|
%
|
Interest expense
|
|
|
|
(2,968)
|
|
(0.8)
|
%
|
|
|
|
(3,600)
|
|
(1.0)
|
%
|
Income before income tax
|
|
|
|
28,512
|
|
7.3
|
%
|
|
|
|
37,970
|
|
10.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
20,134
|
|
5.2
|
%
|
|
|
|
3,545
|
|
1.0
|
%
|
Income from continuing operations
|
|
|
|
8,378
|
|
2.1
|
%
|
|
|
|
34,425
|
|
9.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations, net of tax
|
|
|
|
51,703
|
|
13.2
|
%
|
|
|
|
1,271
|
|
0.4
|
%
|
Net income
|
|
|
$
|
60,081
|
|
15.4
|
%
|
|
|
$
|
35,696
|
|
10.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
0.31
|
|
|
|
|
|
$
|
1.25
|
|
|
|
Discontinued operations
|
|
|
|
1.91
|
|
|
|
|
|
|
0.05
|
|
|
|
Total earnings per share - diluted
|
|
|
$
|
2.22
|
|
|
|
|
|
$
|
1.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock used in computing
diluted earnings per share
|
|
|
|
27,102
|
|
|
|
|
|
|
27,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended February 28,
|
|
|
|
2018
|
|
|
2017
|
Sales revenue, net
|
|
|
$
|
1,489,747
|
|
100.0
|
%
|
|
|
$
|
1,406,676
|
|
100.0
|
%
|
Cost of goods sold
|
|
|
|
867,646
|
|
58.2
|
%
|
|
|
|
824,119
|
|
58.6
|
%
|
Gross profit
|
|
|
|
622,101
|
|
41.8
|
%
|
|
|
|
582,557
|
|
41.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expense ("SG&A")
|
|
|
|
435,735
|
|
29.2
|
%
|
|
|
|
409,993
|
|
29.1
|
%
|
Asset impairment charges
|
|
|
|
15,447
|
|
1.0
|
%
|
|
|
|
2,900
|
|
0.2
|
%
|
Restructuring charges (4)
|
|
|
|
1,857
|
|
0.1
|
%
|
|
|
|
-
|
|
-
|
%
|
Operating income
|
|
|
|
169,062
|
|
11.3
|
%
|
|
|
|
169,664
|
|
12.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income, net
|
|
|
|
327
|
|
-
|
%
|
|
|
|
414
|
|
-
|
%
|
Interest expense
|
|
|
|
(13,951)
|
|
(0.9)
|
%
|
|
|
|
(14,361)
|
|
(1.0)
|
%
|
Income before income tax
|
|
|
|
155,438
|
|
10.4
|
%
|
|
|
|
155,717
|
|
11.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
26,556
|
|
1.8
|
%
|
|
|
|
11,407
|
|
0.8
|
%
|
Income from continuing operations
|
|
|
|
128,882
|
|
8.7
|
%
|
|
|
|
144,310
|
|
10.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of tax
|
|
|
|
(84,436)
|
|
(5.7)
|
%
|
|
|
|
(3,621)
|
|
(0.3)
|
%
|
Net income
|
|
|
$
|
44,446
|
|
3.0
|
%
|
|
|
$
|
140,689
|
|
10.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share - diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
4.73
|
|
|
|
|
|
$
|
5.17
|
|
|
|
Discontinued operations
|
|
|
|
(3.10)
|
|
|
|
|
|
|
(0.13)
|
|
|
|
Total earnings per share - diluted
|
|
|
$
|
1.63
|
|
|
|
|
|
$
|
5.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock used in computing
diluted earnings (loss) per share
|
|
|
|
27,254
|
|
|
|
|
|
|
27,891
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES Consolidated
and Segment Net Sales, Operating Margin and Adjusted Operating
Margin (non-GAAP)(1) (Unaudited) (in
thousands)
|
|
|
|
|
Three Months Ended February 28,
|
|
|
|
|
|
Housewares
|
|
|
Health & Home
|
|
|
Beauty
|
|
|
Total
|
|
Fiscal 2017 sales revenue, net
|
|
|
$
|
102,826
|
|
$
|
162,119
|
|
$
|
82,424
|
|
$
|
347,369
|
|
Core business
|
|
|
|
13,424
|
|
|
28,573
|
|
|
(2,636)
|
|
|
39,361
|
|
Impact of foreign currency
|
|
|
|
404
|
|
|
2,811
|
|
|
902
|
|
|
4,117
|
|
Change in sales revenue, net
|
|
|
|
13,828
|
|
|
31,384
|
|
|
(1,734)
|
|
|
43,478
|
|
Fiscal 2018 sales revenue, net
|
|
|
$
|
116,654
|
|
$
|
193,503
|
|
$
|
80,690
|
|
$
|
390,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net sales revenue growth
|
|
|
|
13.4
|
%
|
|
19.4
|
%
|
|
(2.1)
|
%
|
|
12.5
|
%
|
Core business
|
|
|
|
13.1
|
%
|
|
17.6
|
%
|
|
(3.2)
|
%
|
|
11.3
|
%
|
Impact of foreign currency
|
|
|
|
0.4
|
%
|
|
1.7
|
%
|
|
1.1
|
%
|
|
1.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin (GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter fiscal 2018
|
|
|
|
15.6
|
%
|
|
6.6
|
%
|
|
0.4
|
%
|
|
8.0
|
%
|
Fourth quarter fiscal 2017
|
|
|
|
20.0
|
%
|
|
7.9
|
%
|
|
9.8
|
%
|
|
11.9
|
%
|
Adjusted operating margin (non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter fiscal 2018
|
|
|
|
17.5
|
%
|
|
9.0
|
%
|
|
18.5
|
%
|
|
13.5
|
%
|
Fourth quarter fiscal 2017
|
|
|
|
21.4
|
%
|
|
10.7
|
%
|
|
13.6
|
%
|
|
14.5
|
%
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended February 28, 2018
|
|
|
|
|
Housewares
|
|
|
Health & Home
|
|
|
Beauty
|
|
|
Total
|
|
Fiscal 2017 sales revenue, net
|
|
|
$
|
418,128
|
|
$
|
632,769
|
|
$
|
355,779
|
|
$
|
1,406,676
|
|
Core business
|
|
|
|
33,467
|
|
|
45,937
|
|
|
(7,661)
|
|
|
71,743
|
|
Impact of foreign currency
|
|
|
|
76
|
|
|
3,899
|
|
|
1,205
|
|
|
5,180
|
|
Acquisitions(3)
|
|
|
|
6,148
|
|
|
-
|
|
|
-
|
|
|
6,148
|
|
Change in sales revenue, net
|
|
|
|
39,691
|
|
|
49,836
|
|
|
(6,456)
|
|
|
83,071
|
|
Fiscal 2018 sales revenue, net
|
|
|
$
|
457,819
|
|
$
|
682,605
|
|
$
|
349,323
|
|
$
|
1,489,747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net sales revenue growth
|
|
|
|
9.5
|
%
|
|
7.9
|
%
|
|
(1.8)
|
%
|
|
5.9
|
%
|
Core business
|
|
|
|
8.0
|
%
|
|
7.3
|
%
|
|
(2.2)
|
%
|
|
5.1
|
%
|
Impact of foreign currency
|
|
|
|
-
|
%
|
|
0.6
|
%
|
|
0.3
|
%
|
|
0.4
|
%
|
Acquisitions
|
|
|
|
1.5
|
%
|
|
-
|
%
|
|
-
|
%
|
|
0.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin (GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2018
|
|
|
|
19.5
|
%
|
|
9.1
|
%
|
|
5.1
|
%
|
|
11.3
|
%
|
Fiscal 2017
|
|
|
|
21.3
|
%
|
|
8.1
|
%
|
|
8.3
|
%
|
|
12.1
|
%
|
Adjusted operating margin (non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2018
|
|
|
|
21.3
|
%
|
|
11.9
|
%
|
|
12.8
|
%
|
|
15.0
|
%
|
Fiscal 2017
|
|
|
|
22.7
|
%
|
|
11.3
|
%
|
|
12.1
|
%
|
|
14.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leadership Brand Net Sales Revenue(1) (2) (Unaudited) (in
thousands)
|
|
|
|
|
Three Months Ended February 28,
|
|
Fiscal Year Ended February 28,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Leadership Brand sales revenue, net
|
|
|
$
|
307,958
|
|
$
|
265,415
|
|
$
|
1,151,128
|
|
$
|
1,051,203
|
All other sales revenue, net
|
|
|
|
82,889
|
|
|
81,954
|
|
|
338,619
|
|
|
355,473
|
Total sales revenue, net
|
|
|
$
|
390,847
|
|
$
|
347,369
|
|
$
|
1,489,747
|
|
$
|
1,406,676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES Selected
Consolidated Balance Sheet, Cash Flow and Liquidity Information (Unaudited) (in
thousands)
|
|
|
|
|
February 28,
|
|
|
|
2018
|
|
2017
|
Balance Sheet:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
20,738
|
|
$
|
23,848
|
Receivables, net
|
|
|
|
273,168
|
|
|
229,416
|
Inventory, net
|
|
|
|
251,511
|
|
|
280,877
|
Total assets, current
|
|
|
|
555,311
|
|
|
546,051
|
Total assets
|
|
|
|
1,621,320
|
|
|
1,613,942
|
Total liabilities, current
|
|
|
|
297,089
|
|
|
278,154
|
Total long-term liabilities
|
|
|
|
309,772
|
|
|
498,644
|
Total debt
|
|
|
|
289,869
|
|
|
485,615
|
Stockholders' equity
|
|
|
|
1,014,459
|
|
|
1,020,766
|
|
|
|
|
|
|
|
|
Liquidity:
|
|
|
|
|
|
|
|
Working capital
|
|
|
$
|
258,222
|
|
$
|
267,897
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended February 28,
|
|
|
|
2018
|
|
2017
|
Cash Flow:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
$
|
33,730
|
|
$
|
36,175
|
Net cash provided by operating activities
|
|
|
|
218,609
|
|
|
212,491
|
Capital and intangible asset expenditures
|
|
|
|
13,605
|
|
|
15,507
|
Payments to acquire businesses, net of cash received
|
|
|
|
-
|
|
|
209,267
|
Net debt repayments
|
|
|
|
197,000
|
|
|
133,200
|
Payments for repurchases of common stock
|
|
|
|
65,795
|
|
|
75,000
|
|
|
|
|
|
|
|
|
|
SELECTED OTHER DATA Reconciliation of Non-GAAP
Financial Measures - GAAP Operating Income to Adjusted
Operating Income (non-GAAP)(1) (Unaudited) (in
thousands)
|
|
|
|
Three Months Ended February 28, 2018
|
|
|
|
Housewares
|
|
|
Health & Home
|
|
|
Beauty
|
|
|
Total
|
|
Operating income as reported (GAAP)
|
|
$
|
18,235
|
|
15.6
|
%
|
|
$
|
12,856
|
|
6.6
|
%
|
|
$
|
342
|
|
0.4
|
%
|
|
$
|
31,433
|
|
8.0
|
%
|
Asset impairment charges
|
|
|
-
|
|
-
|
%
|
|
|
-
|
|
-
|
%
|
|
|
11,447
|
|
14.2
|
%
|
|
|
11,447
|
|
2.9
|
%
|
Restructuring charges(4)
|
|
|
220
|
|
0.2
|
%
|
|
|
-
|
|
-
|
%
|
|
|
471
|
|
0.6
|
%
|
|
|
691
|
|
0.2
|
%
|
Subtotal
|
|
|
18,455
|
|
15.8
|
%
|
|
|
12,856
|
|
6.6
|
%
|
|
|
12,260
|
|
15.2
|
%
|
|
|
43,571
|
|
11.1
|
%
|
Amortization of intangible assets
|
|
|
608
|
|
0.5
|
%
|
|
|
2,728
|
|
1.4
|
%
|
|
|
1,320
|
|
1.6
|
%
|
|
|
4,656
|
|
1.2
|
%
|
Non-cash share-based compensation
|
|
|
1,321
|
|
1.1
|
%
|
|
|
1,750
|
|
0.9
|
%
|
|
|
1,364
|
|
1.7
|
%
|
|
|
4,435
|
|
1.1
|
%
|
Adjusted operating income (non-GAAP)
|
|
$
|
20,384
|
|
17.5
|
%
|
|
$
|
17,334
|
|
9.0
|
%
|
|
$
|
14,944
|
|
18.5
|
%
|
|
$
|
52,662
|
|
13.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended February 28, 2017
|
|
|
Housewares
|
|
|
Health & Home
|
|
|
Beauty
|
|
|
Total
|
|
Operating income, as reported (GAAP)
|
|
$
|
20,554
|
|
20.0
|
%
|
|
$
|
12,877
|
|
7.9
|
%
|
|
$
|
8,069
|
|
9.8
|
%
|
|
$
|
41,500
|
|
11.9
|
%
|
Asset impairment charges
|
|
|
-
|
|
-
|
%
|
|
|
-
|
|
-
|
%
|
|
|
500
|
|
0.6
|
%
|
|
|
500
|
|
0.1
|
%
|
Subtotal
|
|
|
20,554
|
|
20.0
|
%
|
|
|
12,877
|
|
7.9
|
%
|
|
|
8,569
|
|
10.4
|
%
|
|
|
42,000
|
|
12.1
|
%
|
Amortization of intangible assets
|
|
|
657
|
|
0.6
|
%
|
|
|
3,037
|
|
1.9
|
%
|
|
|
1,418
|
|
1.7
|
%
|
|
|
5,112
|
|
1.5
|
%
|
Non-cash share-based compensation
|
|
|
842
|
|
0.8
|
%
|
|
|
1,366
|
|
0.8
|
%
|
|
|
1,212
|
|
1.5
|
%
|
|
|
3,420
|
|
1.0
|
%
|
Adjusted operating income (non-GAAP)
|
|
$
|
22,053
|
|
21.4
|
%
|
|
$
|
17,280
|
|
10.7
|
%
|
|
$
|
11,199
|
|
13.6
|
%
|
|
$
|
50,532
|
|
14.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended February 28, 2018
|
|
|
|
Housewares(3)
|
|
|
Health & Home
|
|
|
Beauty
|
|
|
Total
|
|
Operating income, as reported (GAAP)
|
|
$
|
89,319
|
|
19.5
|
%
|
|
$
|
62,099
|
|
9.1
|
%
|
|
$
|
17,644
|
|
5.1
|
%
|
|
$
|
169,062
|
|
11.3
|
%
|
Asset impairment charges
|
|
|
-
|
|
-
|
%
|
|
|
-
|
|
-
|
%
|
|
|
15,447
|
|
4.4
|
%
|
|
|
15,447
|
|
1.0
|
%
|
Restructuring charges(4)
|
|
|
220
|
|
-
|
%
|
|
|
-
|
|
-
|
%
|
|
|
1,637
|
|
2.0
|
%
|
|
|
1,857
|
|
0.5
|
%
|
TRU bankruptcy charge(7)
|
|
|
956
|
|
0.2
|
%
|
|
|
2,640
|
|
0.4
|
%
|
|
|
-
|
|
-
|
%
|
|
|
3,596
|
|
0.2
|
%
|
Subtotal
|
|
|
90,495
|
|
19.8
|
%
|
|
|
64,739
|
|
9.5
|
%
|
|
|
34,728
|
|
9.9
|
%
|
|
|
189,962
|
|
12.8
|
%
|
Amortization of intangible assets
|
|
|
2,226
|
|
0.5
|
%
|
|
|
11,101
|
|
1.6
|
%
|
|
|
5,527
|
|
1.6
|
%
|
|
|
18,854
|
|
1.3
|
%
|
Non-cash share-based compensation
|
|
|
4,701
|
|
1.0
|
%
|
|
|
5,721
|
|
0.8
|
%
|
|
|
4,632
|
|
1.3
|
%
|
|
|
15,054
|
|
1.0
|
%
|
Adjusted operating income (non-GAAP)
|
|
$
|
97,422
|
|
21.3
|
%
|
|
$
|
81,561
|
|
11.9
|
%
|
|
$
|
44,887
|
|
12.8
|
%
|
|
$
|
223,870
|
|
15.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended February 28, 2017
|
|
|
|
Housewares
|
|
|
Health & Home
|
|
|
Beauty
|
|
|
Total
|
|
Operating income, as reported (GAAP)
|
|
$
|
89,020
|
|
21.3
|
%
|
|
$
|
51,072
|
|
8.1
|
%
|
|
$
|
29,572
|
|
8.3
|
%
|
|
$
|
169,664
|
|
12.1
|
%
|
Asset impairment charges
|
|
|
-
|
|
-
|
%
|
|
|
-
|
|
-
|
%
|
|
|
2,900
|
|
0.8
|
%
|
|
|
2,900
|
|
0.2
|
%
|
Patent litigation charge
|
|
|
-
|
|
-
|
%
|
|
|
1,468
|
|
0.2
|
%
|
|
|
-
|
|
-
|
%
|
|
|
1,468
|
|
0.1
|
%
|
Subtotal
|
|
|
89,020
|
|
21.3
|
%
|
|
|
52,540
|
|
8.3
|
%
|
|
|
32,472
|
|
9.1
|
%
|
|
|
174,032
|
|
12.4
|
%
|
Amortization of intangible assets
|
|
|
2,643
|
|
0.6
|
%
|
|
|
13,663
|
|
2.2
|
%
|
|
|
5,718
|
|
1.6
|
%
|
|
|
22,024
|
|
1.6
|
%
|
Non-cash share-based compensation
|
|
|
3,409
|
|
0.8
|
%
|
|
|
5,449
|
|
0.9
|
%
|
|
|
5,003
|
|
1.4
|
%
|
|
|
13,861
|
|
1.0
|
%
|
Adjusted operating income (non-GAAP)
|
|
$
|
95,072
|
|
22.7
|
%
|
|
$
|
71,652
|
|
11.3
|
%
|
|
$
|
43,193
|
|
12.1
|
%
|
|
$
|
209,917
|
|
14.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OTHER DATA Reconciliation of Non-GAAP
Financial Measures - EBITDA (Earnings Before Interest,
Taxes, Depreciation and Amortization) and Adjusted EBITDA by
Segment(1) (Unaudited) (in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended February 28, 2018
|
|
|
|
Housewares
|
|
Health & Home
|
|
Beauty
|
|
Total
|
Operating income, as reported (GAAP)
|
|
|
$
|
18,235
|
|
$
|
12,856
|
|
$
|
342
|
|
$
|
31,433
|
Depreciation and amortization, excluding amortized interest
|
|
|
|
1,643
|
|
|
4,198
|
|
|
2,745
|
|
|
8,586
|
Nonoperating income, net
|
|
|
|
-
|
|
|
-
|
|
|
47
|
|
|
47
|
EBITDA (non-GAAP)
|
|
|
|
19,878
|
|
|
17,054
|
|
|
3,134
|
|
|
40,066
|
Add: Non-cash asset impairment charges
|
|
|
|
-
|
|
|
-
|
|
|
11,447
|
|
|
11,447
|
Restructuring charges(4)
|
|
|
|
220
|
|
|
-
|
|
|
471
|
|
|
691
|
Non-cash share-based compensation
|
|
|
|
1,321
|
|
|
1,750
|
|
|
1,364
|
|
|
4,435
|
Adjusted EBITDA (non-GAAP)
|
|
|
$
|
21,419
|
|
$
|
18,804
|
|
$
|
16,416
|
|
$
|
56,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended February 28, 2017
|
|
|
|
Housewares
|
|
Health & Home
|
|
Beauty
|
|
Total
|
Operating income, as reported (GAAP)
|
|
|
$
|
20,554
|
|
$
|
12,877
|
|
$
|
8,069
|
|
$
|
41,500
|
Depreciation and amortization, excluding amortized interest
|
|
|
|
1,040
|
|
|
4,194
|
|
|
3,689
|
|
|
8,923
|
Nonoperating income, net
|
|
|
|
-
|
|
|
-
|
|
|
70
|
|
|
70
|
EBITDA (non-GAAP)
|
|
|
|
21,594
|
|
|
17,071
|
|
|
11,828
|
|
|
50,493
|
Add: Non-cash asset impairment charges
|
|
|
|
-
|
|
|
-
|
|
|
500
|
|
|
500
|
Non-cash share-based compensation
|
|
|
|
842
|
|
|
1,366
|
|
|
1,212
|
|
|
3,420
|
Adjusted EBITDA (non-GAAP)
|
|
|
$
|
22,436
|
|
$
|
18,437
|
|
$
|
13,540
|
|
$
|
54,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended February 28, 2018
|
|
|
|
|
Housewares
|
|
Health & Home
|
|
Beauty
|
|
Total
|
Operating income, as reported (GAAP)
|
|
|
|
$
|
89,319
|
|
$
|
62,099
|
|
$
|
17,644
|
|
$
|
169,062
|
Depreciation and amortization, excluding amortized interest
|
|
|
|
|
5,825
|
|
|
16,750
|
|
|
11,155
|
|
|
33,730
|
Nonoperating income, net
|
|
|
|
|
-
|
|
|
-
|
|
|
327
|
|
|
327
|
EBITDA (non-GAAP)
|
|
|
|
|
95,144
|
|
|
78,849
|
|
|
29,126
|
|
|
203,119
|
Add: Non-cash asset impairment charges
|
|
|
|
|
-
|
|
|
-
|
|
|
15,447
|
|
|
15,447
|
Restructuring charges(4)
|
|
|
|
|
220
|
|
|
-
|
|
|
1,637
|
|
|
1,857
|
TRU bankruptcy charge(7)
|
|
|
|
|
956
|
|
|
2,640
|
|
|
-
|
|
|
3,596
|
Non-cash share-based compensation
|
|
|
|
|
4,701
|
|
|
5,721
|
|
|
4,632
|
|
|
15,054
|
Adjusted EBITDA (non-GAAP)
|
|
|
|
$
|
101,021
|
|
$
|
87,210
|
|
$
|
50,842
|
|
$
|
239,073
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended February 28, 2017
|
|
|
|
|
Housewares
|
|
Health & Home
|
|
Beauty
|
|
Total
|
Operating income, as reported (GAAP)
|
|
|
|
$
|
89,020
|
|
$
|
51,072
|
|
$
|
29,572
|
|
$
|
169,664
|
Depreciation and amortization, excluding amortized interest
|
|
|
|
|
5,795
|
|
|
20,483
|
|
|
9,897
|
|
|
36,175
|
Nonoperating income, net
|
|
|
|
|
-
|
|
|
-
|
|
|
414
|
|
|
414
|
EBITDA (non-GAAP)
|
|
|
|
|
94,815
|
|
|
71,555
|
|
|
39,883
|
|
|
206,253
|
Add: Non-cash asset impairment charges
|
|
|
|
|
-
|
|
|
-
|
|
|
2,900
|
|
|
2,900
|
Patent litigation charge
|
|
|
|
|
-
|
|
|
1,468
|
|
|
-
|
|
|
1,468
|
Non-cash share-based compensation
|
|
|
|
|
3,409
|
|
|
5,449
|
|
|
5,003
|
|
|
13,861
|
Adjusted EBITDA (non-GAAP)
|
|
|
|
$
|
98,224
|
|
$
|
78,472
|
|
$
|
47,786
|
|
$
|
224,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES Reconciliation
of GAAP Income and Diluted Earnings Per Share ("EPS") from
Continuing Operations to Adjusted Income and Adjusted
EPS from Continuing Operations (non-GAAP)(1) (Unaudited) (dollars
in thousands, except per share data)
|
|
|
|
Three Months Ended February 28, 2018
|
|
|
Income from Continuing Operations
|
|
Diluted EPS
|
|
|
Before Tax
|
|
Tax
|
|
Net of Tax
|
|
Before Tax
|
|
Tax
|
|
Net of Tax
|
As reported (GAAP)
|
|
$
|
28,512
|
|
$
|
20,134
|
|
$
|
8,378
|
|
$
|
1.05
|
|
$
|
0.74
|
|
$
|
0.31
|
Tax reform
|
|
|
-
|
|
|
(17,939)
|
|
|
17,939
|
|
|
-
|
|
|
(0.66)
|
|
|
0.66
|
Asset impairment charges
|
|
|
11,447
|
|
|
1,195
|
|
|
10,252
|
|
|
0.42
|
|
|
0.04
|
|
|
0.38
|
Restructuring charges(4)
|
|
|
691
|
|
|
-
|
|
|
691
|
|
|
0.03
|
|
|
-
|
|
|
0.03
|
Subtotal
|
|
|
40,650
|
|
|
3,390
|
|
|
37,260
|
|
|
1.50
|
|
|
0.13
|
|
|
1.37
|
Amortization of intangible assets
|
|
|
4,656
|
|
|
192
|
|
|
4,464
|
|
|
0.17
|
|
|
0.01
|
|
|
0.16
|
Non-cash share-based compensation
|
|
|
4,435
|
|
|
491
|
|
|
3,944
|
|
|
0.16
|
|
|
0.02
|
|
|
0.15
|
Adjusted (non-GAAP)
|
|
$
|
49,741
|
|
$
|
4,073
|
|
$
|
45,668
|
|
$
|
1.84
|
|
$
|
0.15
|
|
$
|
1.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock used in computing diluted
EPS
|
|
|
|
|
|
|
|
|
27,102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended February 28, 2017
|
|
|
Income from Continuing Operations
|
|
Diluted EPS
|
|
|
Before Tax
|
|
Tax
|
|
Net of Tax
|
|
Before Tax
|
|
Tax
|
|
Net of Tax
|
As reported (GAAP)
|
|
$
|
37,970
|
|
$
|
3,545
|
|
$
|
34,425
|
|
$
|
1.38
|
|
$
|
0.13
|
|
$
|
1.25
|
Asset impairment charges
|
|
|
500
|
|
|
60
|
|
|
440
|
|
|
0.02
|
|
|
-
|
|
|
0.02
|
Restructuring charges(4)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Subtotal
|
|
|
38,470
|
|
|
3,605
|
|
|
34,865
|
|
|
1.40
|
|
|
0.13
|
|
|
1.27
|
Amortization of intangible assets
|
|
|
5,112
|
|
|
316
|
|
|
4,796
|
|
|
0.19
|
|
|
0.01
|
|
|
0.17
|
Non-cash share-based compensation
|
|
|
3,420
|
|
|
433
|
|
|
2,987
|
|
|
0.12
|
|
|
0.02
|
|
|
0.11
|
Adjusted (non-GAAP)
|
|
$
|
47,002
|
|
$
|
4,354
|
|
$
|
42,648
|
|
$
|
1.71
|
|
$
|
0.16
|
|
$
|
1.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock used in computing diluted
EPS
|
|
|
|
|
|
|
|
|
27,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended February 28, 2018
|
|
|
Income from Continuing Operations
|
|
Diluted EPS
|
|
|
Before Tax
|
|
Tax
|
|
Net of Tax
|
|
Before Tax
|
|
Tax
|
|
Net of Tax
|
As reported (GAAP)
|
|
$
|
155,438
|
|
$
|
26,556
|
|
$
|
128,882
|
|
$
|
5.70
|
|
$
|
0.97
|
|
$
|
4.73
|
Tax reform
|
|
|
-
|
|
|
(17,939)
|
|
|
17,939
|
|
|
-
|
|
|
(0.66)
|
|
|
0.66
|
Asset impairment charges
|
|
|
15,447
|
|
|
1,613
|
|
|
13,834
|
|
|
0.57
|
|
|
0.06
|
|
|
0.51
|
Restructuring charges(4)
|
|
|
1,857
|
|
|
69
|
|
|
1,788
|
|
|
0.07
|
|
|
-
|
|
|
0.07
|
TRU bankruptcy charge
|
|
|
3,596
|
|
|
204
|
|
|
3,392
|
|
|
0.13
|
|
|
0.01
|
|
|
0.12
|
Subtotal
|
|
|
176,338
|
|
|
10,503
|
|
|
165,835
|
|
|
6.47
|
|
|
0.39
|
|
|
6.08
|
Amortization of intangible assets
|
|
|
18,854
|
|
|
850
|
|
|
18,004
|
|
|
0.69
|
|
|
0.03
|
|
|
0.66
|
Non-cash share-based compensation
|
|
|
15,054
|
|
|
1,669
|
|
|
13,385
|
|
|
0.55
|
|
|
0.06
|
|
|
0.49
|
Adjusted (non-GAAP)
|
|
$
|
210,246
|
|
$
|
13,022
|
|
$
|
197,224
|
|
$
|
7.71
|
|
$
|
0.48
|
|
$
|
7.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock used in computing diluted
EPS
|
|
27,254
|
|
|
|
|
|
|
|
|
Fiscal Year Ended February 28, 2017
|
|
|
Income from Continuing Operations
|
|
Diluted EPS
|
|
|
Before Tax
|
|
Tax
|
|
Net of Tax
|
|
Before Tax
|
|
Tax
|
|
Net of Tax
|
As reported (GAAP)
|
|
$
|
155,717
|
|
$
|
11,407
|
|
$
|
144,310
|
|
$
|
5.58
|
|
$
|
0.41
|
|
$
|
5.17
|
Asset impairment charges
|
|
|
2,900
|
|
|
354
|
|
|
2,546
|
|
|
0.10
|
|
|
0.01
|
|
|
0.09
|
Patent litigation charge
|
|
|
1,468
|
|
|
4
|
|
|
1,464
|
|
|
0.05
|
|
|
-
|
|
|
0.05
|
Subtotal
|
|
|
160,085
|
|
|
11,765
|
|
|
148,320
|
|
|
5.74
|
|
|
0.42
|
|
|
5.32
|
Amortization of intangible assets
|
|
|
22,024
|
|
|
1,538
|
|
|
20,486
|
|
|
0.79
|
|
|
0.06
|
|
|
0.73
|
Non-cash share-based compensation
|
|
|
13,861
|
|
|
1,762
|
|
|
12,099
|
|
|
0.50
|
|
|
0.06
|
|
|
0.44
|
Adjusted (non-GAAP)
|
|
$
|
195,970
|
|
$
|
15,065
|
|
$
|
180,905
|
|
$
|
7.03
|
|
$
|
0.54
|
|
$
|
6.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock used in computing diluted EPS
|
|
|
27,891
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES Consolidated
Condensed Statements of Income and Reconciliation of Non-GAAP
Financial Measures - Adjusted Operating Income,
Adjusted Diluted Earnings Per Share ("EPS") from Continuing
Operations(1) (Unaudited) (in
thousands, except per share data)
|
|
|
|
Three Months Ended February 28,
|
|
|
|
2018
|
|
|
|
As Reported
|
|
|
|
|
|
Adjusted
|
|
|
|
(GAAP)
|
|
|
Adjustments
|
|
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales revenue, net
|
|
$
|
390,847
|
|
100.0
|
%
|
|
$
|
-
|
|
$
|
390,847
|
|
100.0
|
%
|
Cost of goods sold
|
|
|
229,549
|
|
58.7
|
%
|
|
|
-
|
|
|
229,549
|
|
58.7
|
%
|
Gross profit
|
|
|
161,298
|
|
41.3
|
%
|
|
|
-
|
|
|
161,298
|
|
41.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A
|
|
|
117,727
|
|
30.1
|
%
|
|
|
(4,656)
|
(5)
|
|
108,636
|
|
27.8
|
%
|
|
|
|
|
|
|
|
|
|
(4,435)
|
(6)
|
|
|
|
|
|
Asset impairment charges
|
|
|
11,447
|
|
2.9
|
%
|
|
|
(11,447)
|
|
|
-
|
|
-
|
%
|
Restructuring charges
|
|
|
691
|
|
0.2
|
%
|
|
|
(691)
|
(4)
|
|
-
|
|
-
|
%
|
Operating income
|
|
|
31,433
|
|
8.0
|
%
|
|
|
21,229
|
|
|
52,662
|
|
13.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income, net
|
|
|
47
|
|
-
|
%
|
|
|
-
|
|
|
47
|
|
-
|
%
|
Interest expense
|
|
|
(2,968)
|
|
(0.8)
|
%
|
|
|
-
|
|
|
(2,968)
|
|
(0.8)
|
%
|
Income before income tax
|
|
|
28,512
|
|
7.3
|
%
|
|
|
21,229
|
|
|
49,741
|
|
12.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
20,134
|
|
5.2
|
%
|
|
|
(16,061)
|
|
|
4,073
|
|
1.0
|
%
|
Income from continuing operations
|
|
|
8,378
|
|
2.1
|
%
|
|
|
37,290
|
|
|
45,668
|
|
11.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS from continuing operations
|
|
$
|
0.31
|
|
|
|
|
$
|
1.38
|
|
$
|
1.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock used in computing diluted EPS
|
|
|
27,102
|
|
|
|
|
|
|
|
|
27,102
|
|
|
|
|
|
|
|
|
|
Three Months Ended February 28,
|
|
|
|
2017
|
|
|
|
As Reported
|
|
|
|
|
|
Adjusted
|
|
|
|
(GAAP)
|
|
|
Adjustments
|
|
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales revenue, net
|
|
$
|
347,369
|
|
100.0
|
%
|
|
$
|
-
|
|
$
|
347,369
|
|
100.0
|
%
|
Cost of goods sold
|
|
|
202,762
|
|
58.4
|
%
|
|
|
-
|
|
|
202,762
|
|
58.4
|
%
|
Gross profit
|
|
|
144,607
|
|
41.6
|
%
|
|
|
-
|
|
|
144,607
|
|
41.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A
|
|
|
102,607
|
|
29.5
|
%
|
|
|
(5,112)
|
(5)
|
|
94,075
|
|
27.1
|
%
|
|
|
|
|
|
|
|
|
|
(3,420)
|
(6)
|
|
|
|
|
|
Asset impairment charges
|
|
|
500
|
|
0.1
|
%
|
|
|
(500)
|
|
|
-
|
|
-
|
%
|
Operating income
|
|
|
41,500
|
|
11.9
|
%
|
|
|
9,032
|
|
|
50,532
|
|
14.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income, net
|
|
|
70
|
|
-
|
%
|
|
|
-
|
|
|
70
|
|
-
|
%
|
Interest expense
|
|
|
(3,600)
|
|
(1.0)
|
%
|
|
|
-
|
|
|
(3,600)
|
|
(1.0)
|
%
|
Income before income tax
|
|
|
37,970
|
|
10.9
|
%
|
|
|
9,032
|
|
|
47,002
|
|
13.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
3,545
|
|
1.0
|
%
|
|
|
809
|
|
|
4,354
|
|
1.3
|
%
|
Income from continuing operations
|
|
|
34,425
|
|
9.9
|
%
|
|
|
8,223
|
|
|
42,648
|
|
12.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS from continuing operations
|
|
$
|
1.25
|
|
|
|
|
$
|
0.30
|
|
$
|
1.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock used in computing diluted EPS
|
|
|
27,550
|
|
|
|
|
|
|
|
|
27,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES Consolidated
Condensed Statements of Income, and Reconciliation of Non-GAAP
Financial Measures - Adjusted Operating Income,
Adjusted Diluted Earnings Per Share ("EPS") from Continuing
Operations(1) (Unaudited) (in
thousands, except per share data)
|
|
|
|
|
|
|
Fiscal Year Ended February 28,
|
|
|
|
2018
|
|
|
|
As Reported
|
|
|
|
|
|
Adjusted
|
|
|
|
(GAAP)
|
|
|
Adjustments
|
|
(Non-GAAP)
|
|
Sales revenue, net
|
|
$
|
1,489,747
|
|
100.0
|
%
|
|
$
|
-
|
|
$
|
1,489,747
|
|
100.0
|
%
|
Cost of goods sold
|
|
|
867,646
|
|
58.2
|
%
|
|
|
-
|
|
|
867,646
|
|
58.2
|
%
|
Gross profit
|
|
|
622,101
|
|
41.8
|
%
|
|
|
-
|
|
|
622,101
|
|
41.8
|
%
|
SG&A
|
|
|
435,735
|
|
29.2
|
%
|
|
|
(3,596)
|
(7)
|
|
398,231
|
|
26.7
|
%
|
|
|
|
|
|
|
|
|
|
(18,854)
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(15,054)
|
(6)
|
|
|
|
|
|
Asset impairment charges
|
|
|
15,447
|
|
1.0
|
%
|
|
|
(15,447)
|
|
|
-
|
|
-
|
%
|
Restructuring charges
|
|
|
1,857
|
|
0.1
|
%
|
|
|
(1,857)
|
(4)
|
|
-
|
|
-
|
%
|
Operating income
|
|
|
169,062
|
|
11.3
|
%
|
|
|
54,808
|
|
|
223,870
|
|
15.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income, net
|
|
|
327
|
|
-
|
%
|
|
|
-
|
|
|
327
|
|
-
|
%
|
Interest expense
|
|
|
(13,951)
|
|
(0.9)
|
%
|
|
|
-
|
|
|
(13,951)
|
|
(0.9)
|
%
|
Income before income taxes
|
|
|
155,438
|
|
10.4
|
%
|
|
|
54,808
|
|
|
210,246
|
|
14.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
26,556
|
|
1.8
|
%
|
|
|
(13,534)
|
|
|
13,022
|
|
0.9
|
%
|
Income from continuing operations
|
|
|
128,882
|
|
8.7
|
%
|
|
|
68,342
|
|
|
197,224
|
|
13.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS from continuing operations
|
|
$
|
4.73
|
|
|
|
|
$
|
2.51
|
|
$
|
7.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock used in computing diluted EPS
|
|
|
27,254
|
|
|
|
|
|
|
|
|
27,254
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended February 28,
|
|
|
|
2017
|
|
|
|
As Reported
|
|
|
|
|
|
Adjusted
|
|
|
|
(GAAP)
|
|
|
Adjustments
|
|
(Non-GAAP)
|
|
Sales revenue, net
|
|
$
|
1,406,676
|
|
100.0
|
%
|
|
$
|
-
|
|
$
|
1,406,676
|
|
100.0
|
%
|
Cost of goods sold
|
|
|
824,119
|
|
58.6
|
%
|
|
|
-
|
|
|
824,119
|
|
58.6
|
%
|
Gross profit
|
|
|
582,557
|
|
41.4
|
%
|
|
|
-
|
|
|
582,557
|
|
41.4
|
%
|
SG&A
|
|
|
409,993
|
|
29.1
|
%
|
|
|
(1,468)
|
(8)
|
|
372,640
|
|
26.5
|
%
|
|
|
|
|
|
|
|
|
|
(22,024)
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(13,861)
|
(6)
|
|
|
|
|
|
Asset impairment charges
|
|
|
2,900
|
|
0.2
|
%
|
|
|
(2,900)
|
|
|
-
|
|
-
|
%
|
Restructuring charges
|
|
|
-
|
|
-
|
%
|
|
|
-
|
|
|
-
|
|
-
|
%
|
Operating income
|
|
|
169,664
|
|
12.1
|
%
|
|
|
40,253
|
|
|
209,917
|
|
14.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income, net
|
|
|
414
|
|
-
|
%
|
|
|
-
|
|
|
414
|
|
-
|
%
|
Interest expense
|
|
|
(14,361)
|
|
(1.0)
|
%
|
|
|
-
|
|
|
(14,361)
|
|
(1.0)
|
%
|
Income before income taxes
|
|
|
155,717
|
|
11.1
|
%
|
|
|
40,253
|
|
|
195,970
|
|
13.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
11,407
|
|
0.8
|
%
|
|
|
3,658
|
|
|
15,065
|
|
1.1
|
%
|
Income from continuing operations
|
|
|
144,310
|
|
10.3
|
%
|
|
|
36,595
|
|
|
180,905
|
|
12.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS from continuing operations
|
|
$
|
5.17
|
|
|
|
|
$
|
1.31
|
|
$
|
6.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock used in computing diluted EPS
|
|
|
27,891
|
|
|
|
|
|
|
|
|
27,891
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES Fiscal
2019 Outlook for Net Sales Revenue After Adoption of Revenue
Recognition Standard (Unaudited) (in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2018
|
|
|
Outlook Fiscal 2019
|
Net sales revenue prior to adoption
|
|
|
$
|
1,489,747
|
|
|
$
|
1,498,000
|
|
-
|
|
$
|
1,523,000
|
Reclassification of expense from SG&A to net sales revenue
|
|
|
|
(10,901)
|
|
|
|
(13,000)
|
|
-
|
|
|
(13,000)
|
Expected net sales revenue after adoption
|
|
|
$
|
1,478,846
|
|
|
$
|
1,485,000
|
|
-
|
|
$
|
1,510,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2019 net sales revenue growth after adoption'
|
|
|
|
|
|
|
|
0.4%
|
|
-
|
|
|
2.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Fiscal 2019 Outlook for GAAP Diluted Earnings
Per Share ("EPS") from Continuing Operations to
Adjusted Diluted EPS from Continuing Operations (non-GAAP)
(1) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outlook Fiscal 2019
|
Diluted EPS from continuing operations, as reported (GAAP)
|
|
|
$
|
6.30
|
|
-
|
|
$
|
6.50
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets, net of tax
|
|
|
|
0.50
|
|
-
|
|
|
0.50
|
|
|
|
|
|
|
|
|
|
|
Non-cash share-based compensation, net of tax
|
|
|
|
0.50
|
|
-
|
|
|
0.55
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS from continuing operations (non-GAAP)
|
|
|
$
|
7.30
|
|
-
|
|
$
|
7.55
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate (GAAP) and Adjusted Effective Tax Rate
(Non-GAAP)(1) (Unaudited)
|
|
|
|
Outlook Fiscal 2019
|
|
Effective tax rate, as reported (GAAP)
|
|
9.0
|
%
|
-
|
|
11.0
|
%
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
(0.5)
|
%
|
-
|
|
(0.5)
|
%
|
|
|
|
|
|
|
|
|
Non-cash share based compensation
|
|
0.2
|
%
|
-
|
|
0.2
|
%
|
|
|
|
|
|
|
|
|
Adjusted effective tax rate
|
|
8.7
|
%
|
-
|
|
10.7
|
%
|
|
|
|
|
|
|
|
|
|
SELECTED OTHER DATA Reconciliation of GAAP Diluted
Earnings Per Share ("EPS") to Adjusted Diluted EPS (non-GAAP)(1) (Unaudited)
|
|
|
|
Fiscal Years Ended the Last Day of February
|
(in thousands, except per share data)
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2017
|
Diluted EPS as reported (GAAP)
|
|
$
|
2.66
|
|
$
|
4.56
|
|
$
|
3.23
|
|
$
|
5.17
|
|
$
|
4.73
|
Tax reform
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.66
|
Asset impairment charges, net of tax
|
|
|
0.37
|
|
|
-
|
|
|
0.18
|
|
|
0.09
|
|
|
0.51
|
Restructuring charges, net of tax
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.07
|
TRU bankruptcy charges, net of tax
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.12
|
CEO succession costs, net of tax
|
|
|
0.51
|
|
|
-
|
|
|
0.16
|
|
|
-
|
|
|
-
|
Acquisition-related expenses, net of tax
|
|
|
-
|
|
|
0.08
|
|
|
0.02
|
|
|
-
|
|
|
-
|
Venezuela re-measurement related charges, net of tax
|
|
|
-
|
|
|
-
|
|
|
0.65
|
|
|
-
|
|
|
-
|
Patent litigation charge, net of tax
|
|
|
-
|
|
|
-
|
|
|
0.62
|
|
|
0.05
|
|
|
-
|
Subtotal
|
|
$
|
3.54
|
|
$
|
4.64
|
|
$
|
4.88
|
|
$
|
5.32
|
|
$
|
6.08
|
Amortization of intangible assets, net of tax
|
|
|
0.64
|
|
|
0.70
|
|
|
0.71
|
|
|
0.73
|
|
|
0.66
|
Non-cash share-based compensation, net of tax
|
|
|
0.32
|
|
|
0.16
|
|
|
0.22
|
|
|
0.44
|
|
|
0.49
|
Adjusted diluted EPS (non-GAAP)
|
|
$
|
4.50
|
|
$
|
5.50
|
|
$
|
5.81
|
|
$
|
6.49
|
|
$
|
7.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock used in computing diluted
EPS:
|
|
|
32,344
|
|
|
29,035
|
|
|
28,749
|
|
|
27,891
|
|
|
27,254
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OTHER DATA Reconciliation of Net Cash
Provided by Operating Activities (GAAP) to Free Cash Flow
(non-GAAP)(1) (Unaudited) (in
thousands)
|
|
|
|
Fiscal Years Ended the Last Day of February
|
(in thousands, except per share data)
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
Net cash provided by operating activities (GAAP)
|
|
$
|
154,165
|
|
$
|
171,742
|
|
$
|
170,263
|
|
$
|
212,491
|
|
$
|
218,609
|
Less: Capital and intangible asset expenditure
|
|
|
(40,463)
|
|
|
(5,908)
|
|
|
(16,676)
|
|
|
(15,507)
|
|
|
(13,605)
|
Free cash flow (non-GAAP)
|
|
$
|
113,702
|
|
$
|
165,834
|
|
$
|
153,587
|
|
$
|
196,984
|
|
$
|
205,004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HELEN OF TROY LIMITED AND SUBSIDIARIES
Notes to Press Release
|
|
|
(1)
|
|
This press release contains non-GAAP financial measures. Leadership
Brand net sales revenue, adjusted operating income, adjusted
operating margin, free cash flow, adjusted effective tax rate,
adjusted income, adjusted diluted earnings per share, EBITDA, and
adjusted EBITDA ("Non-GAAP measures") that are discussed in the
accompanying press release or in the preceding tables may be
considered non-GAAP financial information as contemplated by SEC
Regulation G, Rule 100. Accordingly, we are providing the preceding
tables that reconcile these measures to their corresponding
GAAP-based measures presented in our Consolidated Statements of
Income and our Consolidated Statements of Cash Flows in the
accompanying tables to the press release. The Company believes that
these non-GAAP measures provide useful information to management and
investors regarding financial and business trends relating to its
financial condition and results of operations. We believe that these
non-GAAP financial measures, in combination with the Company's
financial results calculated in accordance with GAAP, provide
investors with additional perspective regarding the impact of such
charges on net income and earnings per share. We also believe that
these non-GAAP measures facilitate a more direct comparison of the
Company's performance with its competitors. We further believe that
including the excluded charges would not accurately reflect the
underlying performance of the Company's continuing operations for
the period in which the charges are incurred, even though such
charges may be incurred and reflected in the Company's GAAP
financial results in the near future. Additionally, the non-GAAP
financial measures are used by management for measuring and
evaluating the Company's performance. The Company further believes
that the items excluded from certain non-GAAP measures do not
accurately reflect the underlying performance of its continuing
operations for the periods in which they are incurred, even though
some of these excluded items may be incurred and reflected in the
Company's GAAP financial results in the foreseeable future. The
material limitation associated with the use of the non-GAAP
financial measures is that the non-GAAP measures do not reflect the
full economic impact of the Company's activities. These non-GAAP
measures are not prepared in accordance with GAAP, are not an
alternative to GAAP financial information, and may be calculated
differently than non-GAAP financial information disclosed by other
companies. Accordingly, undue reliance should not be placed on
non-GAAP information.
|
|
|
|
(2)
|
|
Leadership Brand net sales consists of revenue from the OXO,
Honeywell, Braun, PUR, Hydro Flask, Vicks, and Hot Tools brands.
|
|
|
|
(3)
|
|
The Housewares segment includes approximately one-half month of
incremental operating results from Hydro Flask, which was acquired
on March 18, 2016.
|
|
|
|
(4)
|
|
Charges incurred in conjunction with the Company's restructuring
plan (Project Refuel) for the three- and twelve -months ended
February 28, 2018, with no comparable charges in the same periods
last year.
|
|
|
|
(5)
|
|
Amortization of intangible assets.
|
|
|
|
(6)
|
|
Non-cash share-based compensation.
|
|
|
|
(7)
|
|
Charge related to the bankruptcy of Toys "R" Us, Inc. (TRU), with no
comparable charges in the same period last year.
|
|
|
|
(8)
|
|
Patent litigation charge.
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180426005490/en/
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