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Helen of Troy Ltd.$159.06$.18.11%

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 Helen of Troy Limited Reports Fourth Quarter Fiscal 2019 Results
   Friday, April 26, 2019 6:45:00 AM ET

Consolidated Net Sales Decline of 0.7%; Core Business Net Sales Flat

Fiscal 2019 Consolidated Net Sales Growth of 5.8%

GAAP Diluted Earnings Per Share ("EPS") from Continuing Operations of $1.47

Adjusted Diluted EPS from Continuing Operations Growth of 7.7% to $1.82

Fiscal 2019 GAAP Diluted EPS from Continuing Operations Growth of 40% to $6.62

Fiscal 2019 Adjusted Diluted EPS from Continuing Operations Growth of 11.3% to $8.06

Initiates Fiscal 2020 GAAP Diluted EPS from Continuing Operations Outlook of $6.83 - $7.00

Initiates Fiscal 2020 Adjusted Diluted EPS from Continuing Operations Outlook of $8.25 - $8.50

Initiates Fiscal 2020 Consolidated Net Sales Growth Outlook of 1% - 3%



EL PASO, Texas--(BUSINESS WIRE)-- 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, 2019. Following the divestiture of Healthy Directions on December 20, 2017, the Company no longer consolidates the Nutritional Supplements segment’s operating results. That former segment’s operating results are included in the Company’s financial statements and classified as discontinued operations for all periods presented.

  • Consolidated net sales revenue decrease of 0.7%, including:
    • A decrease in Leadership Brand net sales of approximately 1.6%
    • An increase in online channel net sales of approximately 36%
    • Core business flat with the fourth quarter of fiscal 2018
  • GAAP operating income of $44.1 million, or 11.5% of net sales, which includes pre-tax restructuring charges of $1.0 million, compared to GAAP operating income of $31.4 million, or 8.1% of net sales, for the same period last year, which included pre-tax asset impairment charges of $11.4 million and pre-tax restructuring charges of $0.7 million
  • Non-GAAP adjusted operating income increase of 1.6% to $53.5 million, or 13.9% of net sales, compared to $52.7 million, or 13.6% of net sales, for the same period last year
  • GAAP diluted EPS from continuing operations of $1.47, which includes a restructuring charge of $0.04 per share, compared to GAAP diluted EPS of $0.31 for the same period last year, which included a total of $1.07 per share in tax reform, impairment and restructuring charges
  • Non-GAAP adjusted diluted EPS from continuing operations increase of 7.7% to $1.82, compared to $1.69 for the same period last year
  • Repurchased 654,748 shares of common stock in the open market during the quarter for $75.0 million, or an average price of $114.57 per share

  • Consolidated net sales revenue increase of 5.8% including:
    • An increase in Leadership Brand net sales of approximately 8.9%
    • An increase in online channel net sales of approximately 28%
    • Core business growth of 5.9%
  • GAAP operating income of $199.4 million, or 12.7% of net sales, which includes pre-tax restructuring charges of $3.6 million, compared to GAAP operating income of $169.1 million, or 11.4% of net sales, for the same period last year, which included pre-tax non-cash impairment charges of $15.4 million, a pre-tax charge of $3.6 million related to the bankruptcy of Toys "R" Us ("TRU"), and pre-tax restructuring charges of $1.9 million
  • Non-GAAP adjusted operating income increase of 6.9% to $239.2 million, or 15.3% of net sales, compared to $223.9 million, or 15.1% of net sales, for the same period last year
  • GAAP diluted EPS from continuing operations of $6.62, which includes a restructuring charge of $0.13 per share, compared to GAAP diluted EPS of $4.73 for the same period last year, which included a total of $1.36 per share in tax reform charges, impairment charges, the TRU bankruptcy charge, and restructuring charges
  • Non-GAAP adjusted diluted EPS from continuing operations growth of 11.3% to $8.06 compared to $7.24
  • Net cash provided by operating activities of $200.6 million, compared to $218.6 million
  • Repurchased 1,875,469 shares of common stock in the open market during the fiscal year for $212.1 million, or an average price of $113.08 per share

During the first quarter of fiscal 2020, the Company announced that it is in the process of exploring the possibility of divesting its Personal Care business, a subset of its Beauty segment. The Personal Care business includes liquid, powder and aerosol products under brands such as Pert, Brut, Sure and Infusium. This potential divestiture would advance the Company's strategy to focus its resources on its Leadership Brands.

Julien R. Mininberg, Chief Executive Officer, stated: “The fourth quarter finished well ahead of our expectations. Online sales led the way, up approximately 36% year-over-year. We are also pleased to report Beauty net sales were particularly strong, with hair appliances continuing to grow, and Housewares grew over its high year-ago base. These factors offset lower sales in our Health & Home segment, which faced a tough comparison to last year’s robust cough, cold and flu season. We improved our adjusted operating margin by 30 basis points and grew adjusted diluted EPS 7.7%, even as we continued to make incremental investment behind our Leadership Brands and felt the impact of tariff increases and higher transportation costs.”

“This quarter caps great fiscal 2019 results. Net sales for the full fiscal year grew 5.8%, Leadership Brand net sales grew 8.9%, online sales grew approximately 28%, and adjusted diluted EPS grew 11.3%. Inventory turns improved to 3.3 times and return on invested capital, net of restructuring, was a healthy 14.6%. During the fiscal year, we also returned $212 million to our shareholders through share repurchases.”

“Fiscal 2019 also marks the successful completion of Phase I of our multi-year transformation strategy, which delivered excellent performance across a wide range of measures. We improved core sales growth by focusing on our Leadership Brands, made strategic acquisitions, became a more efficient operating company with strong global shared services, upgraded our organization and culture, improved inventory turns and return on invested capital, and returned capital to shareholders. Over the past five fiscal years, our net sales CAGR improved to 3.7% (accelerating to 4.2% in the past 3 years), adjusted operating margin expanded by 1.3 percentage points, and adjusted diluted EPS grew at a CAGR of 12.4%. Our global team of passionate associates deserves all the credit as they embraced a more collaborative culture, and are eager to continue winning in Phase II.”

“Our strategic focus in Phase II of our transformation is designed to drive the next five years of progress. The long-term objectives include improved organic sales growth, continued margin expansion, and strategic and effective capital deployment. We expect Phase II will include continued investment in our Leadership Brands, with a focus on growing them through consumer-centric innovation, expanding them more aggressively outside the United States, and adding new brands through acquisition. We anticipate building further shared service capability and operating efficiency, as well as attracting, retaining, unifying and training the best people. We believe Phase II can deliver a bright future for Helen of Troy. We look forward to sharing our plans in more detail during our Investor Day event next month.”

   

Three Months Ended February 28,

Housewares     Health & Home     Beauty     Total
Fiscal 2018 sales revenue, net $ 116,954 $ 190,470 $ 80,140 $ 387,564
Core business growth (decline) 9,472 (20,597 ) 11,004 (121 )
Impact of foreign currency (357 ) (1,733 ) (510 ) (2,600 )
Change in sales revenue, net 9,115   (22,330 ) 10,494   (2,721 )
Fiscal 2019 sales revenue, net $ 126,069   $ 168,140   $ 90,634   $ 384,843  
 
Total net sales revenue growth (decline) 7.8 % (11.7 )% 13.1 % (0.7 )%
Core business growth (decline) 8.1 % (10.8 )% 13.7 % %
Impact of foreign currency (0.3 )% (0.9 )% (0.6 )% (0.7 )%
 
Operating margin (GAAP)
Fiscal 2019 16.2 % 9.5 % 8.6 % 11.5 %
Fiscal 2018 15.6 % 6.7 % 0.4 % 8.1 %
Adjusted operating margin (non-GAAP)
Fiscal 2019 18.1 % 12.6 % 10.4 % 13.9 %
Fiscal 2018 17.4 % 9.1 % 18.6 % 13.6 %
 

  • Consolidated net sales revenue decreased 0.7% to $384.8 million compared to $387.6 million, driven by the unfavorable impact from foreign currency fluctuations of approximately $2.6 million, or 0.7%. Core business net sales were flat, reflecting an increase in consolidated online sales, point of sale strength in brick and mortar and growth in the Beauty appliance category. These factors were offset by declines in the Personal Care business and the Health & Home segment. The Health & Home decline was primarily due to the unfavorable comparison to the fourth quarter of fiscal 2018, which benefited from strong cough/cold/flu incidence along with unseasonably cold fall and winter weather. The Company reclassified $3.3 million of expense from selling, general and administrative expense ("SG&A") to a reduction of net sales revenue for the fourth quarter of fiscal 2018 to conform with ASU 2014-09 “Revenue from Contracts with Customers”.
  • Consolidated gross profit margin increased 0.1 percentage point to 40.9%, compared to 40.8%. The increase is primarily due to a more favorable product mix and negotiated product cost decreases, partially offset by the unfavorable margin impact from a decline in overall Leadership Brand sales, higher freight costs, and the net impact of tariff increases.
  • Consolidated SG&A as a percentage of sales decreased by 0.3 percentage points to 29.2% of net sales compared to 29.5%. The decrease is primarily due to the favorable comparative impact of foreign currency exchange and forward contract settlements and lower amortization expense, partially offset by higher freight costs, increased share-based compensation expense, and higher advertising expense.
  • Consolidated operating income was $44.1 million, or 11.5% of net sales, compared to $31.4 million, or 8.1% of net sales. The increase in consolidated operating margin reflects the favorable year-over-year comparative net impact of pre-tax non-cash asset impairment charges and pre-tax restructuring charges of 2.9 percentage points, an improvement in gross profit margin, and lower SG&A as a percentage of sales.
  • The effective tax rate was 7.9%, compared to 70.6% for the same period last year. The year-over-year decline in the effective tax rate is primarily due to the favorable comparative impact of a one-time charge of $17.9 million last year related to 2018 U.S. tax reform.
  • Income from continuing operations was $37.7 million, or $1.47 per diluted share on 25.6 million weighted average shares outstanding, compared to $8.4 million, or $0.31 per diluted share on 27.1 million weighted average diluted shares outstanding. Income from continuing operations for the fourth quarter of fiscal 2019 includes $0.04 per share in after-tax restructuring charges, compared to a total of $1.07 per share in tax reform, impairment, and restructuring charges in the same period last year.
  • Loss from discontinued operations was $0.4 million, or $0.02 of loss per diluted share, compared to net income of $51.7 million, or $1.91 of income per diluted share, for the same period last year.
  • Adjusted EBITDA increased 1.9% to $57.7 million compared to $56.6 million.

On an adjusted basis for the fourth quarters of fiscal 2019 and 2018, excluding restructuring charges, the TRU bankruptcy charge, non-cash asset impairment charges, non-cash share-based compensation, and non-cash amortization of intangible assets, as applicable:

  • Adjusted operating income increased $0.8 million, or 1.6%, to $53.5 million, or 13.9% of net sales, compared to $52.7 million, or 13.6% of net sales. The increase in adjusted operating margin primarily reflects a favorable product mix, product cost decreases, the favorable comparative impact of foreign currency exchange and forward contract settlements and lower amortization expense. These factors were partially offset by higher advertising expense, the impact of tariff increases, higher freight expense and increased share-based compensation expense.
  • Adjusted income from continuing operations increased $0.9 million, or 1.9%, to $46.6 million, or $1.82 per diluted share, compared to $45.7 million, or $1.69 per diluted share. The 7.7% increase in adjusted diluted EPS from continuing operations was primarily due to higher adjusted operating income and the impact of lower weighted average diluted shares outstanding. These factors were partially offset by higher interest expense.

Housewares net sales increased 7.8%, or $9.1 million, primarily due to growth in the online channel, higher club channel sales, new product introductions and growth in international sales. These factors were partially offset by lower closeout channel sales. Operating margin was 16.2% compared to 15.6%. The increase was primarily due to the margin impact of more favorable product mix and lower product costs. These factors were partially offset by higher rent expense related to new office space, an increase in advertising expense and higher freight expense. Housewares adjusted operating income increased 11.8% to $22.8 million, or 18.1% of segment net sales, compared to $20.4 million, or 17.4% of segment net sales.

Health & Home net sales decreased 11.7%, primarily due to a core business decline of 10.8%. The core business decline primarily reflects the unfavorable comparison to the fourth quarter of fiscal 2018, which benefited from particularly strong cough/cold/flu incidence along with unseasonably cold fall and winter weather. Segment net sales were also unfavorably impacted by net foreign currency fluctuations of $1.7 million, or 0.9%. These factors were partially offset by seasonal category growth including incremental distribution and shelf space gains with existing domestic customers, and new product introductions. Operating margin was 9.5% compared to 6.7%. The increase was primarily due to lower advertising expense, lower incentive compensation expense, and favorable foreign currency exchange and forward contract settlements. These factors were partially offset by a less favorable product mix, the net impact of tariff increases, and higher freight expense. Health & Home adjusted operating income increased 22.6% to $21.2 million, or 12.6% of segment net sales, compared to $17.3 million, or 9.1% of segment net sales.

Beauty net sales increased 13.1%, or $10.5 million, primarily due to growth in the online channel, new product introductions in the retail appliance category, and an increase in international sales, partially offset by the discontinuation of certain brands and products, and a consumption decline in the Personal Care business. Segment net sales were unfavorably impacted by net foreign currency fluctuations of approximately $0.5 million, or 0.6%. Operating margin was 8.6% compared to 0.4%. The increase is primarily due to the favorable comparative impact of pre-tax impairment charges of $11.4 million in the same period last year and lower amortization expense. These factors were partially offset by the unfavorable margin impact of the decline in the Personal Care business, higher advertising expense and higher freight expense. Beauty adjusted operating income decreased 36.8% to $9.4 million, or 10.4% of segment net sales, compared to $14.9 million, or 18.6% of segment net sales.

  • Cash and cash equivalents totaled $11.9 million, compared to $20.7 million
  • Total short- and long-term debt was $320.8 million, compared to $289.9 million, a net increase of $30.9 million
  • Accounts receivable turnover for the fiscal year was 68.3 days, compared to 62.7 days
  • Inventory was $302.3 million, compared to $251.5 million. Inventory turnover for the fiscal year was 3.3 times compared to 3.0 times.
  • Net cash provided by operating activities from continuing operations for fiscal 2019 decreased $18.0 million to $200.6 million. The decrease was primarily driven by an increase in cash used for inventory and a dispute settlement payment of $15.0 million. These factors were partially offset by an increase in income from continuing operations and higher non-cash share-based compensation.

For fiscal 2020, the Company expects consolidated net sales revenue in the range of $1.580 to $1.611 billion, which implies consolidated sales growth of 1% to 3%.

The Company’s net sales outlook reflects the following expectations by segment:

  • Housewares net sales growth of 4% to 6%;
  • Health & Home net sales growth of 2% to 3%; and
  • Beauty net sales decline in the low-single digits.

The Company expects consolidated GAAP diluted EPS from continuing operations of $6.83 to $7.00, and non-GAAP adjusted diluted EPS from continuing operations in the range of $8.25 to $8.50, which excludes any asset impairment charges, restructuring charges, share-based compensation expense and intangible asset amortization expense.

The Company’s net sales and EPS outlook assumes the severity of the cough/cold/flu season will be in line with historical averages. The Company’s net sales and EPS outlook also assumes that March 2019 foreign currency exchange rates will remain constant for the remainder of the fiscal year. The year-over-year comparison of adjusted diluted EPS from continuing operations is impacted by an expected increase in growth investments of 10% to 15% in fiscal 2020. The diluted earnings per share outlook is based on an estimated weighted average diluted shares outstanding of 25.4 million.

The Company expects adjusted EPS growth for fiscal 2020 to be concentrated in the second half of the year due to the strong performance comparison and specific events in the first half of fiscal 2019. The Company expects a decline in adjusted EPS for the first half of fiscal 2020 of 4% to 8% year-over-year. The decline is expected to be heavily concentrated in the first quarter primarily due to:

  • strong prior year cough/cold/flu incidence that had a favorable impact into the first quarter of fiscal 2019, which is not expected in fiscal 2020;
  • strong international e-commerce sales in the first quarter of fiscal 2019 that the Company expects to grow more evenly across fiscal 2020;
  • club channel pipeline fill-in sales during the first quarter of fiscal 2019, which is not expected to repeat in the first quarter of fiscal 2020;
  • the acceleration of Hydro Flask orders into the first quarter of fiscal 2019 in advance of the integration into the Company's ERP system; and
  • the unfavorable comparative impact of year-over-year advertising and new product development expenditures.

The Company expects a reported GAAP effective tax rate range of 9.5% to 11.5%, and an adjusted effective tax rate range of 8.8% to 10.5% for the full fiscal year 2020. 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 2020 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.

The Company will conduct a teleconference in conjunction with today’s earnings release. The teleconference begins at 9:00 a.m. Eastern Time today, Friday, April 26, 2019. Investors and analysts interested in participating in the call are invited to dial (888) 204-4368 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, 2019 until 11:59 p.m. Eastern Time on May 3, 2019 and can be accessed by dialing (844) 512-2921 and entering replay pin number 9625670. A replay of the webcast will remain available on the website for one year.

The Company reports and discusses its operating results using financial measures consistent with accounting principles generally accepted in the United States of America (“GAAP”). To supplement its presentation, the Company discloses certain financial measures that may be considered non-GAAP financial measures, such as adjusted operating income, adjusted operating margin, adjusted 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 condensed consolidated statements of income. All references to the Company's continuing operations exclude the Nutritional Supplements segment.

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 the Company and subsidiaries of the 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 the Company expects or anticipates 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 its current expectations and various assumptions. The Company believes there is a reasonable basis for these expectations and assumptions, but there can be no assurance that the Company will realize these expectations or that these assumptions will prove correct. Forward-looking statements are subject to risks that could cause them to differ materially from actual results. Accordingly, the Company cautions readers not to place undue reliance on forward-looking statements. The forward-looking statements contained in this press release should be read in conjunction with, and are subject to and qualified by, the risks described in the Company’s Form 10-K for the year ended February 28, 2019, and in the Company's 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 Company's ability to deliver products to its 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, the Company's relationships with key customers and licensors, its dependence on the strength of retail economies and vulnerabilities to any prolonged economic downturn, its 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, its recent and future acquisitions or divestitures, including its ability to realize anticipated cost savings, synergies and other benefits along with its 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, risks associated with weather conditions, the duration and severity of the cold and flu season and other related factors, its 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 risks associated with significant tariffs or other restrictions on imports from China or any retaliatory trade measures taken by China, the geographic concentration and peak season capacity of certain U.S. distribution facilities increases its exposure to significant shipping disruptions and added shipping and storage costs, its 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, its 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 its liquidity as a result of changes to capital and credit market conditions, limitations under its financing arrangements and other constraints or events that impose constraints on its cash resources and ability to operate its business, the costs, complexity and challenges of upgrading and managing its global information systems, the risks associated with cybersecurity and information security breaches, the risks associated with global legal developments regarding privacy and data security could result in changes to our business practices, penalties, increased cost of operations, or otherwise harm our business, 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, its ability to continue to avoid classification as a controlled foreign corporation, and legislation enacted in Bermuda and Barbados in response to the European Union’s review of harmful tax competition could adversely affect our operations. The Company undertakes no obligation to publicly update or revise any forward-looking statements as a result of new information, future events or otherwise.

   

Condensed Consolidated Statements of Income

(Unaudited)

(in thousands, except per share data)

 
Three Months Ended February 28,
2019   2018
Sales revenue, net (9) $ 384,843   100.0 % $ 387,564   100.0 %
Cost of goods sold 227,313   59.1 % 229,550   59.2 %
Gross profit 157,530 40.9 % 158,014 40.8 %
Selling, general and administrative expense ("SG&A") (9) 112,457 29.2 % 114,443 29.5 %
Asset impairment charges (8) % 11,447 3.0 %
Restructuring charges (3) 977   0.3 % 692   0.2 %
Operating income 44,096 11.5 % 31,432 8.1 %
Nonoperating income, net 165 % 46 %
Interest expense (3,306 ) (0.9 )% (2,967 ) (0.8 )%
Income before income tax 40,955 10.6 % 28,511 7.4 %
Income tax expense 3,241   0.8 % 20,133   5.2 %
Income from continuing operations 37,714 9.8 % 8,378 2.2 %
Gain (loss) from discontinued operations, net of tax (448 ) (0.1 )% 51,703   13.3 %
Net income $ 37,266   9.7 % $ 60,081   15.5 %
Earnings (loss) per share - diluted:
Continuing operations $ 1.47 $ 0.31
Discontinued operations (0.02 ) 1.91  

Total earnings per share - diluted

$ 1.45   $ 2.22  
 
Weighted average shares of common stock used in computing diluted earnings per share 25,638 27,102
 
    Fiscal Year Ended February 28,
2019   2018
Sales revenue, net (9) $ 1,564,151   100.0 % $ 1,478,845   100.0 %
Cost of goods sold 923,045   59.0 % 867,646   58.7 %
Gross profit 641,106 41.0 % 611,199 41.3 %
SG&A (9) 438,141 28.0 % 424,833 28.7 %
Asset impairment charges (8) % 15,447 1.0 %
Restructuring charges (3) 3,586   0.2 % 1,857   0.1 %
Operating income 199,379 12.7 % 169,062 11.4 %
Nonoperating income, net 340 % 327 %
Interest expense (11,719 ) (0.7 )% (13,951 ) (0.9 )%
Income before income tax 188,000 12.0 % 155,438 10.5 %
Income tax expense 13,776   0.9 % 26,556   1.8 %
Income from continuing operations 174,224 11.1 % 128,882 8.7 %
Loss from discontinued operations, net of tax (5,679 ) (0.4 )% (84,436 ) (5.7 )%
Net income $ 168,545   10.8 % $ 44,446   3.0 %
Earnings (loss) per share - diluted:
Continuing operations $ 6.62 $ 4.73
Discontinued operations (0.22 ) (3.10 )

Total earnings per share - diluted

$ 6.41   $ 1.63  
 
Weighted average shares of common stock used in computing diluted earnings per share 26,303 27,254
 

Condensed Consolidated Statements of Income and Reconciliation of Non-GAAP Financial
Measures – Adjusted Operating Income, Adjusted Income from Continuing Operations and
Adjusted Diluted Earnings Per Share (“EPS”) from Continuing Operations (1)

(Unaudited)

(in thousands, except per share data)

   
Three Months Ended February 28, 2019
As Reported

(GAAP)

  Adjustments Adjusted

(Non-GAAP)

Sales revenue, net (9) $ 384,843   100.0 % $ $ 384,843   100.0 %
Cost of goods sold 227,313   59.1 %   227,313   59.1 %
Gross profit 157,530 40.9 % 157,530 40.9 %
SG&A (9) 112,457 29.2 % (3,382 ) (4) 104,051 27.0 %
(5,024 ) (5)
Restructuring charges (3) 977   0.3 % (977 ) (3)   %
Operating income 44,096 11.5 % 9,383 53,479 13.9 %
Nonoperating income, net 165 % 165 %
Interest expense (3,306 ) (0.9 )%   (3,306 ) (0.9 )%
Income before income tax 40,955 10.6 % 9,383 50,338 13.1 %
Income tax expense 3,241   0.8 % 540   3,781   1.0 %
Income from continuing operations 37,714   9.8 % 8,843   46,557   12.1 %
Diluted EPS from continuing operations $ 1.47   $ 0.35   $ 1.82  
Weighted average shares of common stock used in computing diluted EPS 25,638 25,638
 
    Three Months Ended February 28, 2018
As Reported

(GAAP)

  Adjustments Adjusted

(Non-GAAP)

Sales revenue, net (9) $ 387,564   100.0 % $ $ 387,564   100.0 %
Cost of goods sold 229,550   59.2 %   229,550   59.2 %
Gross profit 158,014 40.8 % 158,014 40.8 %
SG&A (9) 114,443 29.5 % (4,656 ) (4) 105,352 27.2 %
(4,435 ) (5)
Asset impairment charges (8) 11,447 3.0 % (11,447 ) (8) %
Restructuring charges (3) 692   0.2 % (692 ) (3)   %
Operating income 31,432 8.1 % 21,230 52,662 13.6 %
Nonoperating income, net 46 % 46 %
Interest expense (2,967 ) (0.8 )%   (2,967 ) (0.8 )%
Income before income tax 28,511 7.4 % 21,230 49,741 12.8 %
Income tax expense 20,133   5.2 % (16,060 ) 4,073   1.1 %
Income from continuing operations 8,378   2.2 % 37,290   45,668   11.8 %
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
 

Condensed Consolidated Statements of Income and Reconciliation of Non-GAAP Financial
Measures – Adjusted Operating Income, Adjusted Income from Continuing Operations and
Adjusted Diluted Earnings Per Share (“EPS”) from Continuing Operations (1)

(Unaudited)

(in thousands, except per share data)

   
Fiscal Year Ended February 28, 2019
As Reported

(GAAP)

  Adjustments Adjusted

(Non-GAAP)

Sales revenue, net (9) $ 1,564,151   100.0 % $ $ 1,564,151   100.0 %
Cost of goods sold 923,045   59.0 %   923,045   59.0 %
Gross profit 641,106 41.0 % 641,106 41.0 %
SG&A (9) 438,141 28.0 % (14,204 ) (4) 401,884 25.7 %
(22,053 ) (5)
Asset impairment charges (8) % %
Restructuring charges (3) 3,586   0.2 % (3,586 ) (3)   %
Operating income 199,379 12.7 % 39,843 239,222 15.3 %
Nonoperating income, net 340 % 340 %
Interest expense (11,719 ) (0.7 )%   (11,719 ) (0.7 )%
Income before income tax 188,000 12.0 % 39,843 227,843 14.6 %
Income tax expense 13,776   0.9 % 1,982   15,758   1.0 %
Income from continuing operations 174,224   11.1 % 37,861   212,085   13.6 %
Diluted EPS from continuing operations $ 6.62   $ 1.44   $ 8.06  
Weighted average shares of common stock used in computing diluted EPS 26,303 26,303
 
    Fiscal Year Ended February 28, 2018
As Reported

(GAAP)

  Adjustments Adjusted

(Non-GAAP)

Sales revenue, net (9) $ 1,478,845   100.0 % $ $ 1,478,845   100.0 %
Cost of goods sold 867,646   58.7 %   867,646   58.7 %
Gross profit 611,199 41.3 % 611,199 41.3 %
SG&A (9) 424,833 28.7 % (18,854 ) (4) 387,329 26.2 %
(15,054 ) (5)
(3,596 ) (7)
Asset impairment charges (8) 15,447 1.0 % (15,447 ) (8) %
Restructuring charges (3) 1,857   0.1 % (1,857 ) (3)   %
Operating income 169,062 11.4 % 54,808 223,870 15.1 %
Nonoperating income, net 327 % 327 %
Interest expense (13,951 ) (0.9 )%   (13,951 ) (0.9 )%
Income before income tax 155,438 10.5 % 54,808 210,246 14.2 %
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   13.3 %
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
 

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 2018 sales revenue, net $ 116,954 $ 190,470 $ 80,140 $ 387,564
Core business growth (decline) 9,472 (20,597 ) 11,004 (121 )
Impact of foreign currency (357 ) (1,733 ) (510 ) (2,600 )
Change in sales revenue, net 9,115   (22,330 ) 10,494   (2,721 )
Fiscal 2019 sales revenue, net $ 126,069   $ 168,140   $ 90,634   $ 384,843  
Total net sales revenue growth (decline) 7.8 % (11.7 )% 13.1 % (0.7 )%
Core business growth (decline) 8.1 % (10.8 )% 13.7 % %
Impact of foreign currency (0.3 )% (0.9 )% (0.6 )% (0.7 )%
Operating margin (GAAP)
Fiscal 2019 16.2 % 9.5 % 8.6 % 11.5 %
Fiscal 2018 15.6 % 6.7 % 0.4 % 8.1 %
Adjusted operating margin (non-GAAP)
Fiscal 2019 18.1 % 12.6 % 10.4 % 13.9 %
Fiscal 2018 17.4 % 9.1 % 18.6 % 13.6 %
 
    Fiscal Year Ended February 28,
Housewares   Health & Home   Beauty   Total
Fiscal 2018 sales revenue, net $ 459,004 $ 674,062 $ 345,779 $ 1,478,845
Core business growth 64,886 21,061 572 86,519
Impact of foreign currency (83 ) 94   (1,224 ) (1,213 )
Change in sales revenue, net 64,803   21,155   (652 ) 85,306  
Fiscal 2019 sales revenue, net $ 523,807   $ 695,217   $ 345,127   $ 1,564,151  
Total net sales revenue growth (decline) 14.1 % 3.1 % (0.2 )% 5.8 %
Core business growth 14.1 % 3.1 % 0.2 % 5.9 %
Impact of foreign currency % % (0.4 )% (0.1 )%
Operating margin (GAAP)
Fiscal 2019 19.2 % 9.8 % 8.7 % 12.7 %
Fiscal 2018 19.5 % 9.2 % 5.1 % 11.4 %
Adjusted operating margin (non-GAAP)
Fiscal 2019 21.3 % 12.8 % 11.1 % 15.3 %
Fiscal 2018 21.2 % 12.1 % 13.0 % 15.1 %
 

Leadership Brand Net Sales Revenue (2)

(Unaudited)

(in thousands)

     
Three Months Ended February 28, Fiscal Year Ended February 28,
2019   2018 2019   2018
Leadership Brand sales revenue, net $ 300,432 $ 305,190 $ 1,243,600   $ 1,142,183
All other sales revenue, net 84,411   82,374   320,551     336,662
Total sales revenue, net $ 384,843   $ 387,564   $ 1,564,151     $ 1,478,845
 

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, 2019
Housewares   Health & Home   Beauty   Total
Operating income, as reported (GAAP) $ 20,392     16.2 % $ 15,947     9.5 % $ 7,757     8.6 % $ 44,096     11.5 %
Restructuring charges (3) 186   0.1 % 328   0.2 % 463   0.5 % 977   0.3 %
Subtotal 20,578 16.3 % 16,275 9.7 % 8,220 9.1 % 45,073 11.7 %
Amortization of intangible assets 506 0.4 % 2,796 1.7 % 80 0.1 % 3,382 0.9 %
Non-cash share-based compensation 1,701   1.3 % 2,174   1.3 % 1,149   1.3 % 5,024   1.3 %
Adjusted operating income (non-GAAP) $ 22,785   18.1 % $ 21,245   12.6 % $ 9,449   10.4 % $ 53,479   13.9 %
 
    Three Months Ended February 28, 2018
Housewares   Health & Home   Beauty   Total
Operating income, as reported (GAAP) $ 18,234     15.6 % $ 12,856     6.7 % $ 342     0.4 % $ 31,432     8.1 %
Asset impairment charges (8) % % 11,447 14.3 % 11,447 3.0 %
Restructuring charges (3) 220   0.2 %   % 472   0.6 % 692   0.2 %

Subtotal

18,454 15.8 % 12,856 6.7 % 12,261 15.3 % 43,571 11.2 %
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) $ 20,383   17.4 % $ 17,334   9.1 % $ 14,945   18.6 % $ 52,662   13.6 %
    Fiscal Year Ended February 28, 2019
Housewares   Health & Home   Beauty   Total
Operating income, as reported (GAAP) $ 100,743     19.2 % $ 68,448     9.8 % $ 30,188     8.7 % $ 199,379     12.7 %
Restructuring charges (3) 926   0.2 % 686   0.1 % 1,974   0.6 % 3,586   0.2 %

Subtotal

101,669 19.4 % 69,134 9.9 % 32,162 9.3 % 202,965 13.0 %
Amortization of intangible assets 1,980 0.4 % 10,925 1.6 % 1,299 0.4 % 14,204 0.9 %
Non-cash share-based compensation 7,974   1.5 % 9,204   1.3 % 4,875   1.4 % 22,053   1.4 %
Adjusted operating income (non-GAAP) $ 111,623   21.3 % $ 89,263   12.8 % $ 38,336   11.1 % $ 239,222   15.3 %
 
    Fiscal Year Ended February 28, 2018
Housewares   Health & Home   Beauty   Total
Operating income, as reported (GAAP) $ 89,319     19.5 % $ 62,099     9.2 % $ 17,644     5.1 % $ 169,062     11.4 %
Asset impairment charges (8) 15,447 4.5 % 15,447 1.0 %
Restructuring charges (3) 220 % % 1,637 0.5 % 1,857 0.1 %
TRU bankruptcy charge (7) 956     0.2 %   2,640     0.4 %       %   3,596     0.2 %

Subtotal

90,495 19.7 % 64,739 9.6 % 34,728 10.0 % 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   21.2 % $ 81,561   12.1 % $ 44,887   13.0 % $ 223,870   15.1 %
 

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, 2019
Housewares   Health & Home   Beauty   Total
Operating income, as reported (GAAP) $ 20,392 $ 15,947 $ 7,757 $ 44,096
Depreciation and amortization, excluding amortized interest 1,634 4,355 1,448 7,437
Nonoperating income, net     165   165
EBITDA (non-GAAP) 22,026 20,302 9,370 51,698
Add: Restructuring charges (3) 186 328 463 977
Non-cash share-based compensation 1,701   2,174   1,149   5,024
Adjusted EBITDA (non-GAAP) $ 23,913   $ 22,804   $ 10,982   $ 57,699
 
    Three Months Ended February 28, 2018
Housewares   Health & Home   Beauty   Total
Operating income, as reported (GAAP) $ 18,234 $ 12,856 $ 342 $ 31,432
Depreciation and amortization, excluding amortized interest 1,643 4,198 2,745 8,586
Nonoperating income, net     46   46
EBITDA (non-GAAP) 19,877 17,054 3,133 40,064
Add: Restructuring charges (3) 220 472 692
Non-cash asset impairment charges 11,447 11,447
Non-cash share-based compensation 1,321   1,750   1,364   4,435
Adjusted EBITDA (non-GAAP) $ 21,418   $ 18,804   $ 16,416   $ 56,638
 
    Fiscal Year Ended February 28, 2019
Housewares   Health & Home   Beauty   Total
Operating income, as reported (GAAP) $ 100,743 $ 68,448 $ 30,188 $ 199,379
Depreciation and amortization, excluding amortized interest 6,048 17,058 6,821 29,927
Nonoperating income, net     340   340
EBITDA (non-GAAP) 106,791 85,506 37,349 229,646
Add: Restructuring charges (3) 926 686 1,974 3,586
Non-cash share-based compensation 7,974   9,204   4,875   22,053
Adjusted EBITDA (non-GAAP) $ 115,691   $ 95,396   $ 44,198   $ 255,285
 
    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: TRU bankruptcy charge (7) 956 2,640 3,596
Restructuring charges (3) 220 1,637 1,857
Non-cash asset impairment charges 15,447 15,447
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
 

Reconciliation of GAAP Income and Diluted Earnings Per Share (“EPS”) from Continuing
Operations to Adjusted Income and Adjusted Diluted EPS from Continuing Operations
(non-GAAP) (1) (Unaudited) (dollars in thousands, except per share data)

   
Three Months Ended February 28, 2019
Income from Continuing Operations   Diluted EPS
      Before Tax   Tax   Net of Tax Before Tax   Tax   Net of Tax
As reported (GAAP) $ 40,955 $ 3,241 $ 37,714 $ 1.60 $ 0.13 $ 1.47
Restructuring charges (3)     977   30   947   0.04     0.04

Subtotal

41,932 3,271 38,661 1.64 0.13 1.51
Amortization of intangible assets 3,382 136 3,246 0.13 0.01 0.13
Non-cash share-based compensation     5,024   374   4,650   0.20   0.01   0.18
Adjusted (non-GAAP) $ 50,338   $ 3,781   $ 46,557   $ 1.96   $ 0.15   $ 1.82
 
Weighted average shares of common stock used in computing diluted EPS 25,638
 
    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) $ 28,511 $ 20,133 $ 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 (3)     692     1     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
 
    Fiscal Year Ended February 28, 2019
Income from Continuing Operations   Diluted EPS
      Before Tax   Tax   Net of Tax Before Tax   Tax   Net of Tax
As reported (GAAP) $ 188,000 $ 13,776 $ 174,224 $ 7.15 $ 0.52 $ 6.62
Restructuring charges (3)     3,586   215   3,371   0.14   0.01   0.13
Subtotal 191,586 13,991 177,595 7.28 0.53 6.75
Amortization of intangible assets 14,204 372 13,832 0.54 0.01 0.53
Non-cash share-based compensation     22,053   1,395   20,658   0.84   0.05   0.79
Adjusted (non-GAAP) $ 227,843   $ 15,758   $ 212,085   $ 8.66   $ 0.60   $ 8.06
 
Weighted average shares of common stock used in computing diluted EPS 26,303
 
    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 (3) 1,857 69 1,788 0.07 0.07
TRU bankruptcy charge (7)     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
 

Selected Consolidated Balance Sheet, Cash Flow and Liquidity Information (6)

(Unaudited)

(in thousands)

   
February 28,
2019   2018
Balance Sheet:
Cash and cash equivalents $ 11,871 $ 20,738
Receivables, net 280,280 275,565
Inventory, net 302,339 251,511
Total assets, current 604,859 557,708
Total assets 1,649,535 1,623,717
Total liabilities, current 312,031 299,486
Total long-term liabilities 340,867 309,772
Total debt 320,784 289,869
Consolidated stockholders' equity 996,637 1,014,459
Liquidity:
Working capital $ 292,828 $ 258,222
 
    Fiscal Year Ended February 28
2019   2018
Cash Flow from continuing operations:
Depreciation and amortization $ 29,927 $ 33,730
Net cash provided by operating activities 200,568 218,609
Capital and intangible asset expenditures 26,385 13,605
Net debt proceeds (repayments) 29,900 (197,000 )
Payments for repurchases of common stock 217,493 73,053
 

Reconciliation of GAAP Net Cash Provided by Operating Activities

to Free Cash Flow (Non-GAAP) (1)

(Unaudited) (in thousands)

   
Fiscal Year Ended February 28
2019   2018
Net cash provided by operating activities - continuing operations (GAAP) $ 200,568   $ 218,609
Less: Capital and intangible asset expenditures (26,385 )   (13,605 )
Free cash flow - continuing operations (Non-GAAP) $ 174,183     $ 205,004  
 

Fiscal 2020 Updated Outlook for Net Sales Revenue

(Unaudited)

(in thousands)

     
Fiscal 2019 Actual Outlook for Fiscal 2020
Net sales revenue $ 1,564,151 $ 1,580,000     $ 1,611,000
 
1.0 % 3.0 %
 

Reconciliation of Fiscal 2020 Outlook for GAAP Diluted Earnings Per Share (“EPS”) from
Continuing Operations to Adjusted Diluted EPS from Continuing Operations (non-GAAP) (1)
(Unaudited)

   
Outlook Fiscal 2020
Diluted EPS from continuing operations, as reported (GAAP) $ 6.83       $ 7.00
Restructuring charges, net of tax 0.04   0.05
Subtotal 6.87 7.05
Amortization of intangible assets, net of tax 0.52 0.54
Non-cash share-based compensation, net of tax 0.86       0.91
Adjusted diluted EPS from continuing operations (non-GAAP) $ 8.25       $ 8.50
 

Effective Tax Rate (GAAP) and Adjusted Effective Tax Rate (Non-GAAP) (1)
(Unaudited)

 
Outlook Fiscal 2020
Effective tax rate, as reported (GAAP) 9.5 %     11.5 %
Restructuring charges 0.1 % 0.1 %
Subtotal 9.6 % 11.6 %
Amortization of intangible assets (0.5 )% (0.6 )%
Non-cash share based compensation (0.3 )% (0.5 )%
Adjusted effective tax rate 8.8 % 10.5 %
 

HELEN OF TROY LIMITED AND SUBSIDIARIES

Notes to Press Release

(1)   This press release contains non-GAAP financial measures. Adjusted operating income, adjusted operating margin, adjusted effective tax rate, 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 may be considered non-GAAP financial information as contemplated by SEC Regulation G, Rule 100. Accordingly, the Company is providing the preceding tables that reconcile these measures to their corresponding GAAP-based measures presented in the Company's Condensed Consolidated 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 financial measures, in combination with the Company’s financial results calculated in accordance with GAAP, provide investors with additional perspective regarding the impact of certain charges on applicable income, margin and earnings per share measures. The Company also believes that these non-GAAP measures facilitate a more direct comparison of the Company’s performance with its competitors. The Company further believes 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 measures are used by management for measuring and evaluating the Company’s performance. The material limitation associated with the use of the non-GAAP 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) Charges incurred in conjunction with the Company’s restructuring plan (Project Refuel) for the three and twelve months ended February 28, 2019 and 2018.
(4) Amortization of intangible assets.
(5) Non-cash share-based compensation.
(6) Amounts presented are from continuing operations with the exception of stockholders’ equity, which is presented on a consolidated basis and includes discontinued operations.
(7) During fiscal 2018, the Company recorded a charge of $3.6 million ($3.4 million after tax) related to the Toys “R” Us, Inc. (“TRU”) bankruptcy.
(8) During fiscal 2018, the Company recorded pre-tax non-cash asset impairment charges in the Beauty segment.
(9) The Company adopted ASU 2014-09 in the first quarter of fiscal 2019 and has reclassified amounts in the prior year’s statements of income to conform to the current period’s presentation, as follows:
   

Before
Reclassification

   

After
Reclassification

Statement of Income (in thousands)    

Three Months
Ended February 28,
2018

  Reclassification  

Three Months
Ended February
28, 2018

Sales revenue, net $ 390,847 $ (3,283 ) $ 387,564
SG&A     $ 117,726   $ (3,283 ) $ 114,443
 
   

Before
Reclassification

   

After
Reclassification

Statement of Income (in thousands)    

Year Ended
February 28, 2018

  Reclassification  

Year Ended
February 28, 2018

Sales revenue, net $ 1,489,747 $ (10,902 ) $ 1,478,845
SG&A $ 435,735     $ (10,902 )   $ 424,833

Investor Contact:
Helen of Troy Limited
Anne Rakunas, Director, External Communications
(915) 225-4841

ICR, Inc.
Allison Malkin, Partner
(203) 682-8200

Source: Helen of Troy Limited



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