Consolidated Net Sales Growth of 15.1% Despite Adverse February Winter Storm Impact Organic Business Net Sales Growth of 12.2%; Leadership Brand Net Sales Growth of 20.2% GAAP Diluted Earnings Per Share (“EPS”) of $0.90; Includes Impairment Charge of $0.30Adjusted Diluted EPS of $1.57 Despite Adverse February Winter Storm Impact Full Year Consolidated Net Sales Growth of 22.9% Full Year GAAP Diluted EPS of $10.08Full Year Adjusted Diluted EPS Growth of 25.3% to $11.65Full Year Operating Cash Flow Growth of 15.8% to $314.1 million
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, 2021.
Executive Summary – Fourth Quarter of Fiscal 2021
Executive Summary - Fiscal 2021
Julien R. Mininberg, Chief Executive Officer, stated: “Our fourth quarter results cap off an extraordinary year for Helen of Troy and an outstanding second year of our Phase II Transformation. I am very proud of the agility our organization demonstrated as we worked together with even more passion to address COVID-19’s unprecedented challenges to all aspects of the business. These efforts drove us past the $2 billion sales milestone, grew our market share for several key brands, and delivered outstanding operating cash flow, adjusted operating income, and adjusted EPS growth in fiscal 2021. During the year, our Leadership Brands once again led the way, now making up more than 81% of our sales and online sales grew to now represent 26% of total sales. Our strategic focus on international continued to bear fruit. The diversified nature of our portfolio provided consistency, with some categories benefiting from changed consumer behavior and some of our categories posting another year of strong growth based on the timeless power of consumer-centric innovation and outstanding execution. We were not shy about using this strength to further invest in projects intended to power our value creation flywheel, such as new product innovations for fiscal 2022 and beyond, IT, Direct-to-Consumer, expanded production and distribution capacity, and investments in much healthier inventory levels.”
“As we look to fiscal 2022, our all-weather portfolio of Leadership Brands is well suited to continue serving consumers. As COVID-19 lingers it favors our health-related brands. Other brands such as Hydro Flask, Drybar, Revlon, and HOT Tools are expected to benefit further as the post-pandemic landscape takes shape, and OXO is positioned to succeed in most environments. We have taken steps to address the uncertainties from the continued path of COVID-19 and emerging inflationary environment. We are working with our supply chain partners and have implemented cost mitigation measures to help offset expected inflation and will make pricing decisions to further address the situation as it evolves. We believe these actions will help us deliver on our Phase II average annual growth targets from our new elevated base and that adjusted EPS growth in fiscal 2022 is achievable. Our balance sheet has never been stronger, and we have ample liquidity and operational capability to fuel growth with a combination of organic expansion and acquisition. We believe our key strategic initiatives position us well to create significant additional shareholder value over the course of the remaining three years of Phase II.”
| Three Months Ended Last Day of February, | ||||||||||||||
(in thousands) | Housewares |
| Health & Home |
| Beauty |
| Total | ||||||||
Fiscal 2020 sales revenue, net | $ | 144,948 |
|
| $ | 185,854 |
|
| $ | 111,563 |
|
| $ | 442,365 |
|
Organic business (1) | 17,113 |
|
| 40,648 |
|
| (3,836) |
|
| 53,925 |
| ||||
Impact of foreign currency | 402 |
|
| 2,121 |
|
| 195 |
|
| 2,718 |
| ||||
Acquisition (2) | — |
|
| — |
|
| 10,367 |
|
| 10,367 |
| ||||
Change in sales revenue, net | 17,515 |
|
| 42,769 |
|
| 6,726 |
|
| 67,010 |
| ||||
Fiscal 2021 sales revenue, net | $ | 162,463 |
|
| $ | 228,623 |
|
| $ | 118,289 |
|
| $ | 509,375 |
|
|
|
|
|
|
|
|
| ||||||||
Total net sales revenue growth (decline) | 12.1 | % |
| 23.0 | % |
| 6.0 | % |
| 15.1 | % | ||||
Organic business | 11.8 | % |
| 21.9 | % |
| (3.4) | % |
| 12.2 | % | ||||
Impact of foreign currency | 0.3 | % |
| 1.1 | % |
| 0.2 | % |
| 0.6 | % | ||||
Acquisition | — | % |
| — | % |
| 9.3 | % |
| 2.3 | % | ||||
|
|
|
|
|
|
|
| ||||||||
Operating margin (GAAP) |
|
|
|
|
|
|
| ||||||||
Fiscal 2021 | 10.0 | % |
| (0.7) | % |
| 8.5 | % |
| 4.8 | % | ||||
Fiscal 2020 | 9.6 | % |
| 8.8 | % |
| (29.6) | % |
| (0.6) | % | ||||
Adjusted operating margin (non-GAAP) |
|
|
|
|
|
|
| ||||||||
Fiscal 2021 | 11.7 | % |
| 0.7 | % |
| 18.9 | % |
| 8.4 | % | ||||
Fiscal 2020 | 11.8 | % |
| 11.2 | % |
| 14.4 | % |
| 12.2 | % |
Consistent with its strategy of focusing on its Leadership Brands, the Company committed to a plan to divest certain assets within its global mass channel personal care business (“Personal Care”). The assets to be divested include intangible assets, inventory, net trade receivables and fixed assets related to the Company's mass channel liquids, powder and aerosol products under brands such as Pert, Brut, Sure and Infusium. The Company entered into exclusive negotiations with a selected bidder at the end of February and have largely agreed to the broader terms. The Company is currently working through the detailed negotiation of the various agreements and complexities needed to complete the transaction and hopes to have more to announce very soon. The Company defines Core as strategic business that it expects to be an ongoing part of its operations, and Non-Core as business or assets (including assets held for sale) that it expects to divest within a year of its designation as Non-Core.
| Three Months Ended Last Day of February, | ||||||||||||||
(in thousands) | Housewares |
| Health & Home |
| Beauty |
| Total | ||||||||
Fiscal 2020 sales revenue, net | $ | 144,948 |
|
| $ | 185,854 |
|
| $ | 111,563 |
|
| $ | 442,365 |
|
Core business (3) | 17,515 |
|
| 42,769 |
|
| 11,534 |
|
| 71,818 |
| ||||
Non-Core business (Personal Care) (3) | — |
|
| — |
|
| (4,808) |
|
| (4,808) |
| ||||
Change in sales revenue, net | 17,515 |
|
| 42,769 |
|
| 6,726 |
|
| 67,010 |
| ||||
Fiscal 2021 sales revenue, net | $ | 162,463 |
|
| $ | 228,623 |
|
| $ | 118,289 |
|
| $ | 509,375 |
|
|
|
|
|
|
|
|
| ||||||||
Total net sales revenue growth (decline) | 12.1 | % |
| 23.0 | % |
| 6.0 | % |
| 15.1 | % | ||||
Core business | 12.1 | % |
| 23.0 | % |
| 10.3 | % |
| 16.2 | % | ||||
Non-Core business (Personal Care) | — | % |
| — | % |
| (4.3) | % |
| (1.1) | % |
Consolidated Results - Fourth Quarter Fiscal 2021 Compared to Fourth Quarter Fiscal 2020
On an adjusted basis for the fourth quarters of fiscal 2021 and 2020, excluding acquisition-related expenses, non-cash asset impairment charges, restructuring charges, amortization of intangible assets, and non-cash share-based compensation, as applicable:
Segment Results - Fourth Quarter Fiscal 2021 Compared to Fourth Quarter Fiscal 2020
Housewares net sales revenue increased $17.5 million, or 12.1%, to $162.5 million, compared to $144.9 million. The increase was driven by an Organic business increase of $17.1 million, or 11.8%, primarily due to higher demand for OXO brand products as COVID-19 continued to keep consumers at home cooking, baking and organizing, which resulted in increases in online, brick and mortar, and international sales. These factors were partially offset by an adverse impact from Winter Storm Uri, the COVID-19 related impact of reduced store traffic at certain retail brick and mortar stores, increased competitive activity and strong new product releases in the prior year period. Operating income increased 16.0% to $16.2 million, or 10.0% of segment net sales revenue, compared to $14.0 million, or 9.6% of segment net sales revenue. The 0.4 percentage point increase was primarily due to favorable operating leverage, a more favorable channel mix, lower marketing expenses, and travel expense reductions due to COVID-19. These factors were partially offset by a less favorable product mix, higher inbound and outbound freight and distribution expense, and higher annual incentive compensation. Adjusted operating income increased 10.7% to $19.0 million, or 11.7% of segment net sales revenue, compared to $17.1 million, or 11.8% of segment net sales revenue.
Health & Home net sales revenue increased $42.8 million, or 23.0%, to $228.6 million, compared to $185.9 million. The increase was driven by an Organic business increase of $40.6 million, or 21.9%, primarily due to continued strong consumer demand for healthcare and healthy living products in domestic and international markets, primarily in thermometry and air purification, in both brick and mortar and online channels, mainly attributable to COVID-19. These factors were partially offset by declines in non-strategic product categories, a far below average cough/cold/flu season due to social distancing and remote schooling related to COVID-19, and an adverse impact from Winter Storm Uri on end-of-quarter shipments. Operating loss was $1.7 million, or 0.7% of segment net sales revenue, compared to operating income of $16.3 million, or 8.8% of segment net sales revenue. The 9.5 percentage point decrease in segment operating margin was primarily due to increased marketing and new product development expense, higher inbound freight expense, higher distribution costs, higher annual incentive compensation, and increased legal and other professional fees. These factors were partially offset by favorable operating leverage and a more favorable product mix. Adjusted operating income decreased 92.6% to $1.5 million, or 0.7% of segment net sales revenue, compared to $20.8 million, or 11.2% of segment net sales revenue in the same period last year.
Beauty net sales revenue increased $6.7 million, or 6.0%, to $118.3 million, compared to $111.6 million. The increase was driven by the incremental net sales revenue contribution from Drybar Products of $10.4 million, or 9.3% growth, for the eight week period prior to the first anniversary of the acquisition. Sales for the five week period subsequent to the acquisition anniversary date are included in Organic business sales. These factors were partially offset by an Organic business decrease of $3.8 million, or 3.4% due to a decline in Personal Care and an adverse impact from Winter Storm Uri on end-of-quarter shipments. Operating income was $10.0 million, or 8.5% of segment net sales revenue compared to an operating loss of $33.0 million, or 29.6% of segment net sales revenue. The 38.1 percentage point increase in operating margin reflects the favorable comparative impact of lower non-cash asset impairment charges, lower restructuring charges and lower acquisition-related expenses year-over-year. The increase in operating margin also reflects a more favorable product mix, reduced royalty expense as a result of the extension of the Revlon trademark license, lower amortization expense, lower bad debt expense, and travel expense reductions due to COVID-19. These factors were partially offset by increased marketing expense, increased inbound and outbound freight expense, higher personnel expense related to the acquisition of Drybar Products, and higher legal and other professional fees. Adjusted operating income increased 39.6% to $22.4 million, or 18.9% of segment net sales revenue, compared to $16.0 million, or 14.4% of segment net sales revenue.
Balance Sheet and Cash Flow Highlights - Fiscal 2021 Compared to Fiscal 2020
Fiscal 2022 Business Update
Due to the high level of business uncertainty related to the unpredictable path of the evolving COVID-19 pandemic, ongoing disruption in global supply chains, and the volatility in the cost and availability of commodities, freight and other resources, the Company is not providing an Outlook for fiscal 2022 at this time. The extent of the impact of COVID-19 on the Company's business and financial results will depend largely on future developments that are impossible to predict at this juncture and outside the Company's control, including the duration of the spread of the COVID-19 outbreak, the availability, adoption and effectiveness of the COVID-19 vaccine, the impact on capital and financial markets and the related impact on consumer confidence and spending. Additionally, surges in demand for certain products and shifts in shopping patterns related to COVID-19, as well as other factors, have strained the global freight network, resulting in higher costs, less capacity, and longer lead times across nearly all industries. With continued increases in demand and limited supply for containers, the market rates for inbound freight have increased several fold compared to calendar year 2020 averages. In order to adjust to the difficult and uncertain environment, the Company has implemented a number of mitigation and cost reduction measures that will remain in place until there is greater certainty and less variability. While we have not yet made all our pricing decisions, price increases are being considered, along with our other cost mitigation and reduction strategies.
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, Wednesday, April 28, 2021. Investors and analysts interested in participating in the call are invited to dial (877) 407-3982 approximately ten minutes prior to the start of the call. The conference call will also be webcast live at: http://investor.helenoftroy.com. A telephone replay of this call will be available at 12:00 p.m. Eastern Time on April 28, 2021 until 11:59 p.m. Eastern Time on May 5, 2021 and can be accessed by dialing (844) 512-2921 and entering replay pin number 13718414. 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 such as Adjusted Operating Income, Adjusted Operating Margin, Adjusted Income, Adjusted Diluted Earnings per Share (“EPS”), Core and Non-Core Adjusted Diluted EPS, EBITDA, Adjusted EBITDA, and Free Cash Flow, which are presented in accompanying tables to this press release along with a reconciliation of these financial measures to their corresponding GAAP-based measures presented in the Company’s consolidated statements of income and cash flows. For additional information see Note 10 to the accompanying tables to this press release.
About Helen of Troy Limited
Helen of Troy Limited (NASDAQ: HELE) is a leading global consumer products company offering creative products and solutions for its customers through a diversified portfolio of well-recognized and widely-trusted brands, including OXO, Hydro Flask, Vicks, Braun, Honeywell, PUR, Hot Tools and Drybar. We sometimes refer to these brands as our Leadership Brands. All trademarks herein belong to Helen of Troy Limited (or its subsidiaries) and/or are used under license from their respective licensors.
For more information about Helen of Troy, please visithttp://investor.helenoftroy.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, 2021, 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 successfully manage the demand, supply, and operational challenges associated with the actual or perceived effects of COVID-19 and any similar future public health crisis, pandemic or epidemic, the Company's ability to deliver products to its customers in a timely manner and according to their fulfillment standards, actions taken by large customers that may adversely affect the Company's gross profit and operating results, the Company's dependence on the strength of retail economies and vulnerabilities to any prolonged economic downturn, including from the effects of COVID-19, the Company's dependence on sales to several large customers and the risks associated with any loss of, or substantial decline in, sales to top customers, expectations regarding recent acquisitions and any future acquisitions or divestitures, including the Company's ability to realize related synergies along with its ability to effectively integrate acquired businesses or disaggregate divested businesses, the Company's reliance on its Chief Executive Officer and a limited number of other key senior officers to operate its business, obsolescence or interruptions in the operation of the Company's central global Enterprise Resource Planning (“ERP”) systems and other peripheral information systems, occurrence of cyber incidents or failure by the Company or its third-party service providers to maintain cybersecurity and the integrity of confidential internal or customer data, the Company's dependence on third-party manufacturers, most of which are located in the Far East, and any inability to obtain products from such manufacturers, risks associated with weather conditions, the duration and severity of the cold and flu season and other related factors, the geographic concentration and peak season capacity of certain U.S. distribution facilities which increase its risk to disruptions that could affect the Company's ability to deliver products in a timely manner, risks associated with the use of licensed trademarks from or to third parties, the Company's ability to develop and introduce a continuing stream of innovative new products to meet changing consumer preferences, the risks associated with trade barriers, exchange controls, expropriations, and other risks associated with domestic and foreign operations, the risks associated with significant changes in regulations, interpretations or product certification requirements, the risks associated with global legal developments regarding privacy and data security that could result in changes to its business practices, penalties, increased cost of operations, or otherwise harm the business, the risks associated with accounting for tax positions and the resolution of tax disputes, the risks of potential changes in laws and regulations, including environmental, health and safety and tax laws, and the costs and complexities of compliance with such laws, the Company's ability to continue to avoid classification as a Controlled Foreign Corporation, the risks associated with legislation enacted in Bermuda and Barbados in response to the European Union’s review of harmful tax competition, the risks of significant tariffs or other restrictions being placed on imports from China or Mexico or any retaliatory trade measures taken by China or Mexico, the risks associated with product recalls, product liability and other claims against the Company, and associated financial risks including but not limited to, significant impairment of the Company's goodwill, indefinite-lived and definite-lived intangible assets or other long-lived assets, risks associated with foreign currency exchange rate fluctuations, increased costs of raw materials, energy and transportation, projections of product demand, sales and net income, which are highly subjective in nature, and from which future sales and net income could vary in a material amount, the risks to the Company's liquidity or cost of capital which may be materially adversely affected by constraints or changes in the capital and credit markets and limitations under its financing arrangements. The Company undertakes no obligation to publicly update or revise any forward-looking statements as a result of new information, future events or otherwise.
HELEN OF TROY LIMITED AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) (in thousands, except per share data) | |||||||||||||
| Three Months Ended Last Day of February, | ||||||||||||
| 2021 |
| 2020 | ||||||||||
Sales revenue, net | $ | 509,375 |
|
| 100.0 | % |
| $ | 442,365 |
|
| 100.0 | % |
Cost of goods sold | 279,037 |
|
| 54.8 | % |
| 249,750 |
|
| 56.5 | % | ||
Gross profit | 230,338 |
|
| 45.2 | % |
| 192,615 |
|
| 43.5 | % | ||
Selling, general and administrative expense (“SG&A”) | 197,366 |
|
| 38.7 | % |
| 152,108 |
|
| 34.4 | % | ||
Asset impairment charges | 8,452 |
|
| 1.7 | % |
| 41,000 |
|
| 9.3 | % | ||
Restructuring charges | (5) |
|
| — | % |
| 2,252 |
|
| 0.5 | % | ||
Operating income (loss) | 24,525 |
|
| 4.8 | % |
| (2,745) |
|
| (0.6) | % | ||
Non-operating income, net | 119 |
|
| — | % |
| 81 |
|
| — | % | ||
Interest expense | 3,049 |
|
| 0.6 | % |
| 3,414 |
|
| 0.8 | % | ||
Income (loss) before income tax | 21,595 |
|
| 4.2 | % |
| (6,078) |
|
| (1.4) | % | ||
Income tax benefit | (577) |
|
| (0.1) | % |
| (2,923) |
|
| (0.7) | % | ||
Net income (loss) | $ | 22,172 |
|
| 4.4 | % |
| $ | (3,155) |
|
| (0.7) | % |
|
|
|
|
|
|
|
| ||||||
Diluted earnings (loss) per share (“EPS”) | $ | 0.90 |
|
|
|
| $ | (0.13) |
|
|
| ||
|
|
|
|
|
|
|
| ||||||
Weighted average shares of common stock used in computing diluted EPS | 24,737 |
|
|
|
| 25,175 |
|
|
|
| Fiscal Year Ended Last Day of February, | ||||||||||||
| 2021 |
| 2020 | ||||||||||
Sales revenue, net | $ | 2,098,799 |
|
| 100.0 | % |
| $ | 1,707,432 |
|
| 100.0 | % |
Cost of goods sold | 1,171,497 |
|
| 55.8 | % |
| 972,966 |
|
| 57.0 | % | ||
Gross profit | 927,302 |
|
| 44.2 | % |
| 734,466 |
|
| 43.0 | % | ||
SG&A | 637,012 |
|
| 30.4 | % |
| 511,902 |
|
| 30.0 | % | ||
Asset impairment charges | 8,452 |
|
| 0.4 | % |
| 41,000 |
|
| 2.4 | % | ||
Restructuring charges | 350 |
|
| — | % |
| 3,313 |
|
| 0.2 | % | ||
Operating income | 281,488 |
|
| 13.4 | % |
| 178,251 |
|
| 10.4 | % | ||
Non-operating income, net | 559 |
|
| — | % |
| 394 |
|
| — | % | ||
Interest expense | 12,617 |
|
| 0.6 | % |
| 12,705 |
|
| 0.7 | % | ||
Income before income tax | 269,430 |
|
| 12.8 | % |
| 165,940 |
|
| 9.7 | % | ||
Income tax expense | 15,484 |
|
| 0.7 | % |
| 13,607 |
|
| 0.8 | % | ||
Net income | $ | 253,946 |
|
| 12.1 | % |
| $ | 152,333 |
|
| 8.9 | % |
|
|
|
|
|
|
|
| ||||||
Diluted EPS | $ | 10.08 |
|
|
|
| $ | 6.02 |
|
|
| ||
|
|
|
|
|
|
|
| ||||||
Weighted average shares of common stock used in computing diluted EPS | 25,196 |
|
|
|
| 25,322 |
|
|
|
Consolidated Statements of Income and Reconciliation of Non-GAAP Financial Measures – Adjusted Operating Income, Adjusted Income and Adjusted Diluted EPS (2) (10) (Unaudited) (in thousands, except per share data) | |||||||||||||||||
| Three Months Ended February 28, 2021 | ||||||||||||||||
| As Reported (GAAP) |
| Adjustments |
| Adjusted (Non-GAAP) | ||||||||||||
Sales revenue, net | $ | 509,375 |
|
| 100.0 | % |
| $ | — |
|
| $ | 509,375 |
|
| 100.0 | % |
Cost of goods sold | 279,037 |
|
| 54.8 | % |
| — |
|
| 279,037 |
|
| 54.8 | % | |||
Gross profit | 230,338 |
|
| 45.2 | % |
| — |
|
| 230,338 |
|
| 45.2 | % | |||
SG&A | 197,366 |
|
| 38.7 | % |
| (4,116) |
| (4) | 187,486 |
|
| 36.8 | % | |||
|
|
|
|
| (5,764) |
| (5) |
|
|
| |||||||
Asset impairment charges | 8,452 |
|
| 1.7 | % |
| (8,452) |
| (6) | — |
|
| — | % | |||
Restructuring charges | (5) |
|
| — | % |
| 5 |
| (7) | — |
|
| — | % | |||
Operating income | 24,525 |
|
| 4.8 | % |
| 18,327 |
|
| 42,852 |
|
| 8.4 | % | |||
Non-operating income, net | 119 |
|
| — | % |
| — |
|
| 119 |
|
| — | % | |||
Interest expense | 3,049 |
|
| 0.6 | % |
| — |
|
| 3,049 |
|
| 0.6 | % | |||
Income before income tax | 21,595 |
|
| 4.2 | % |
| 18,327 |
|
| 39,922 |
|
| 7.8 | % | |||
Income tax (benefit) expense | (577) |
|
| (0.1) | % |
| 1,743 |
|
| 1,166 |
|
| 0.2 | % | |||
Net Income | $ | 22,172 |
|
| 4.4 | % |
| $ | 16,584 |
|
| $ | 38,756 |
|
| 7.6 | % |
|
|
|
|
|
|
|
|
|
| ||||||||
Diluted EPS | $ | 0.90 |
|
|
|
| $ | 0.67 |
|
| $ | 1.57 |
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||||||||
Weighted average shares of common stock used in computing diluted EPS | 24,737 |
|
|
|
|
|
| 24,737 |
|
|
|
| Three Months Ended February 29, 2020 | ||||||||||||||||
| As Reported (GAAP) |
| Adjustments |
| Adjusted (Non-GAAP) | ||||||||||||
Sales revenue, net | $ | 442,365 |
|
| 100.0 | % |
| $ | — |
|
| $ | 442,365 |
|
| 100.0 | % |
Cost of goods sold | 249,750 |
|
| 56.5 | % |
| — |
|
| 249,750 |
|
| 56.5 | % | |||
Gross profit | 192,615 |
|
| 43.5 | % |
| — |
|
| 192,615 |
|
| 43.5 | % | |||
SG&A | 152,108 |
|
| 34.4 | % |
| (8,142) |
| (4) | 138,709 |
|
| 31.4 | % | |||
|
|
|
|
| (4,186) |
| (5) |
|
|
| |||||||
|
|
|
|
| (1,071) |
| (8) |
|
|
| |||||||
Asset impairment charges | 41,000 |
|
| 9.3 | % |
| (41,000) |
| (6) | — |
|
| — | % | |||
Restructuring charges | 2,252 |
|
| 0.5 | % |
| (2,252) |
| (7) | — |
|
| — | % | |||
Operating (loss) income | (2,745) |
|
| (0.6) | % |
| 56,651 |
|
| 53,906 |
|
| 12.2 | % | |||
Non-operating income, net | 81 |
|
| — | % |
| — |
|
| 81 |
|
| — | % | |||
Interest expense | 3,414 |
|
| 0.8 | % |
| — |
|
| 3,414 |
|
| 0.8 | % | |||
(Loss) income before income tax | (6,078) |
|
| (1.4) | % |
| 56,651 |
|
| 50,573 |
|
| 11.4 | % | |||
Income tax (benefit) expense | (2,923) |
|
| (0.7) | % |
| 5,676 |
|
| 2,753 |
|
| 0.6 | % | |||
Net (loss) income | $ | (3,155) |
|
| (0.7) | % |
| $ | 50,975 |
|
| $ | 47,820 |
|
| 10.8 | % |
|
|
|
|
|
|
|
|
|
| ||||||||
Diluted EPS | $ | (0.13) |
|
|
|
| $ | 2.01 |
|
| $ | 1.88 |
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||||||||
Weighted average shares of common stock used in computing diluted EPS | 25,175 |
|
|
|
|
|
| 25,403 |
|
|
|
Consolidated Statements of Income and Reconciliation of Non-GAAP Financial Measures – Adjusted Operating Income, Adjusted Income and Adjusted Diluted EPS (2) (10) (Unaudited) (in thousands, except per share data) | |||||||||||||||||
| Fiscal Year Ended February 28, 2021 | ||||||||||||||||
| As Reported (GAAP) |
| Adjustments |
| Adjusted (Non-GAAP) | ||||||||||||
Sales revenue, net | $ | 2,098,799 |
|
| 100.0 | % |
| $ | — |
|
| $ | 2,098,799 |
|
| 100.0 | % |
Cost of goods sold | 1,171,497 |
|
| 55.8 | % |
| — |
|
| 1,171,497 |
|
| 55.8 | % | |||
Gross profit | 927,302 |
|
| 44.2 | % |
| — |
|
| 927,302 |
|
| 44.2 | % | |||
SG&A | 637,012 |
|
| 30.4 | % |
| (17,643) |
| (4) | 592,951 |
|
| 28.3 | % | |||
|
|
|
|
| (26,418) |
| (5) |
|
|
| |||||||
Asset impairment charges | 8,452 |
|
| 0.4 | % |
| (8,452) |
| (6) | — |
|
| — | % | |||
Restructuring charges | 350 |
|
| — | % |
| (350) |
| (7) | — |
|
| — | % | |||
Operating income | 281,488 |
|
| 13.4 | % |
| 52,863 |
|
| 334,351 |
|
| 15.9 | % | |||
Non-operating income, net | 559 |
|
| — | % |
| — |
|
| 559 |
|
| — | % | |||
Interest expense | 12,617 |
|
| 0.6 | % |
| — |
|
| 12,617 |
|
| 0.6 | % | |||
Income before income tax | 269,430 |
|
| 12.8 | % |
| 52,863 |
|
| 322,293 |
|
| 15.4 | % | |||
Income tax expense | 15,484 |
|
| 0.7 | % |
| 13,159 |
|
| 28,643 |
|
| 1.4 | % | |||
Net Income | $ | 253,946 |
|
| 12.1 | % |
| $ | 39,704 |
|
| $ | 293,650 |
|
| 14.0 | % |
|
|
|
|
|
|
|
|
|
| ||||||||
Diluted EPS | $ | 10.08 |
|
|
|
| $ | 1.58 |
|
| $ | 11.65 |
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||||||||
Weighted average shares of common stock used in computing diluted EPS | 25,196 |
|
|
|
|
|
| 25,196 |
|
|
|
| Fiscal Year Ended February 29, 2020 | ||||||||||||||||
| As Reported (GAAP) |
| Adjustments |
| Adjusted (Non-GAAP) | ||||||||||||
Sales revenue, net | $ | 1,707,432 |
|
| 100.0 | % |
| $ | — |
|
| $ | 1,707,432 |
|
| 100.0 | % |
Cost of goods sold | 972,966 |
|
| 57.0 | % |
| — |
|
| 972,966 |
|
| 57.0 | % | |||
Gross profit | 734,466 |
|
| 43.0 | % |
| — |
|
| 734,466 |
|
| 43.0 | % | |||
SG&A | 511,902 |
|
| 30.0 | % |
| (21,271) |
| (4) | 465,156 |
|
| 27.2 | % | |||
|
|
|
|
| (22,929) |
| (5) |
|
|
| |||||||
|
|
|
|
| (2,546) |
| (8) |
|
|
| |||||||
Asset impairment charges | 41,000 |
|
| 2.4 | % |
| (41,000) |
| (6) | — |
|
| — | % | |||
Restructuring charges | 3,313 |
|
| 0.2 | % |
| (3,313) |
| (7) | — |
|
| — | % | |||
Operating income | 178,251 |
|
| 10.4 | % |
| 91,059 |
|
| 269,310 |
|
| 15.8 | % | |||
Non-operating income, net | 394 |
|
| — | % |
| — |
|
| 394 |
|
| — | % | |||
Interest expense | 12,705 |
|
| 0.7 | % |
| — |
|
| 12,705 |
|
| 0.7 | % | |||
Income before income tax | 165,940 |
|
| 9.7 | % |
| 91,059 |
|
| 256,999 |
|
| 15.1 | % | |||
Income tax expense | 13,607 |
|
| 0.8 | % |
| 7,821 |
|
| 21,428 |
|
| 1.3 | % | |||
Net Income | $ | 152,333 |
|
| 8.9 | % |
| $ | 83,238 |
|
| $ | 235,571 |
|
| 13.8 | % |
|
|
|
|
|
|
|
|
|
| ||||||||
Diluted EPS | $ | 6.02 |
|
|
|
| $ | 3.29 |
|
| $ | 9.30 |
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||||||||
Weighted average shares of common stock used in computing diluted EPS | 25,322 |
|
|
|
|
|
| 25,322 |
|
|
|
Consolidated and Segment Net Sales Revenue (Unaudited) (in thousands) | |||||||||||||||
| Three Months Ended Last Day of February, | ||||||||||||||
| Housewares |
| Health & Home |
| Beauty |
| Total | ||||||||
Fiscal 2020 sales revenue, net | $ | 144,948 |
|
| $ | 185,854 |
|
| $ | 111,563 |
|
| $ | 442,365 |
|
Organic business (1) | 17,113 |
|
| 40,648 |
|
| (3,836) |
|
| 53,925 |
| ||||
Impact of foreign currency | 402 |
|
| 2,121 |
|
| 195 |
|
| 2,718 |
| ||||
Acquisition (2) | — |
|
| — |
|
| 10,367 |
|
| 10,367 |
| ||||
Change in sales revenue, net | 17,515 |
|
| 42,769 |
|
| 6,726 |
|
| 67,010 |
| ||||
Fiscal 2021 sales revenue, net | $ | 162,463 |
|
| $ | 228,623 |
|
| $ | 118,289 |
|
| $ | 509,375 |
|
|
|
|
|
|
|
|
| ||||||||
Total net sales revenue growth (decline) | 12.1 | % |
| 23.0 | % |
| 6.0 | % |
| 15.1 | % | ||||
Organic business | 11.8 | % |
| 21.9 | % |
| (3.4) | % |
| 12.2 | % | ||||
Impact of foreign currency | 0.3 | % |
| 1.1 | % |
| 0.2 | % |
| 0.6 | % | ||||
Acquisition | — | % |
| — | % |
| 9.3 | % |
| 2.3 | % |
| Fiscal Year Ended Last Day of February, | ||||||||||||||
| Housewares |
| Health & Home |
| Beauty |
| Total | ||||||||
Fiscal 2020 sales revenue, net | $ | 640,965 |
|
| $ | 685,397 |
|
| $ | 381,070 |
|
| $ | 1,707,432 |
|
Organic business (1) | 85,916 |
|
| 202,786 |
|
| 57,110 |
|
| 345,812 |
| ||||
Impact of foreign currency | 473 |
|
| 2,008 |
|
| (2,926) |
|
| (445) |
| ||||
Acquisition (2) | — |
|
| — |
|
| 46,000 |
|
| 46,000 |
| ||||
Change in sales revenue, net | 86,389 |
|
| 204,794 |
|
| 100,184 |
|
| 391,367 |
| ||||
Fiscal 2021 sales revenue, net | $ | 727,354 |
|
| $ | 890,191 |
|
| $ | 481,254 |
|
| $ | 2,098,799 |
|
|
|
|
|
|
|
|
| ||||||||
Total net sales revenue growth (decline) | 13.5 | % |
| 29.9 | % |
| 26.3 | % |
| 22.9 | % | ||||
Organic business | 13.4 | % |
| 29.6 | % |
| 15.0 | % |
| 20.3 | % | ||||
Impact of foreign currency | 0.1 | % |
| 0.3 | % |
| (0.8) | % |
| — | % | ||||
Acquisition | — | % |
| — | % |
| 12.1 | % |
| 2.7 | % |
Leadership Brand and Other Net Sales Revenue (2) (Unaudited) (in thousands) | ||||||||||||||
| Three Months Ended Last Day of February, | |||||||||||||
| 2021 |
| 2020 |
| $ Change |
| % Change | |||||||
Leadership Brand sales revenue, net (9) | $ | 417,931 |
|
| $ | 347,713 |
|
| $ | 70,218 |
|
| 20.2 | % |
All other sales revenue, net | 91,444 |
|
| 94,652 |
|
| (3,208) |
|
| (3.4) | % | |||
Total sales revenue, net | $ | 509,375 |
|
| $ | 442,365 |
|
| $ | 67,010 |
|
| 15.1 | % |
| Fiscal Year Ended Last Day of February, | |||||||||||||
| 2021 |
| 2020 |
| $ Change |
| % Change | |||||||
Leadership Brand sales revenue, net (9) | $ | 1,706,545 |
|
| $ | 1,360,059 |
|
| $ | 346,486 |
|
| 25.5 | % |
All other sales revenue, net | 392,254 |
|
| 347,373 |
|
| 44,881 |
|
| 12.9 | % | |||
Total sales revenue, net | $ | 2,098,799 |
|
| $ | 1,707,432 |
|
| $ | 391,367 |
|
| 22.9 | % |
Consolidated and Segment Net Sales from Core and Non-Core Business (3) (Unaudited) (in thousands) | |||||||||||||||
| Three Months Ended Last Day of February, | ||||||||||||||
| Housewares |
| Health & Home |
| Beauty |
| Total | ||||||||
Fiscal 2020 sales revenue, net | $ | 144,948 |
|
| $ | 185,854 |
|
| $ | 111,563 |
|
| $ | 442,365 |
|
Core business | 17,515 |
|
| 42,769 |
|
| 11,534 |
|
| 71,818 |
| ||||
Non-Core business (Personal Care) | — |
|
| — |
|
| (4,808) |
|
| (4,808) |
| ||||
Change in sales revenue, net | 17,515 |
|
| 42,769 |
|
| 6,726 |
|
| 67,010 |
| ||||
Fiscal 2021 sales revenue, net | $ | 162,463 |
|
| $ | 228,623 |
|
| $ | 118,289 |
|
| $ | 509,375 |
|
|
|
|
|
|
|
|
| ||||||||
Total net sales revenue growth (decline) | 12.1 | % |
| 23.0 | % |
| 6.0 | % |
| 15.1 | % | ||||
Core business | 12.1 | % |
| 23.0 | % |
| 10.3 | % |
| 16.2 | % | ||||
Non-Core business (Personal Care) | — | % |
| — | % |
| (4.3) | % |
| (1.1) | % |
| Fiscal Year Ended Last Day of February, | ||||||||||||||
| Housewares |
| Health & Home |
| Beauty |
| Total | ||||||||
Fiscal 2020 sales revenue, net | $ | 640,965 |
|
| $ | 685,397 |
|
| $ | 381,070 |
|
| $ | 1,707,432 |
|
Core business | 86,389 |
|
| 204,794 |
|
| 114,176 |
|
| 405,359 |
| ||||
Non-Core business (Personal Care) | — |
|
| — |
|
| (13,992) |
|
| (13,992) |
| ||||
Change in sales revenue, net | 86,389 |
|
| 204,794 |
|
| 100,184 |
|
| 391,367 |
| ||||
Fiscal 2021 sales revenue, net | $ | 727,354 |
|
| $ | 890,191 |
|
| $ | 481,254 |
|
| $ | 2,098,799 |
|
|
|
|
|
|
|
|
| ||||||||
Total net sales revenue growth (decline) | 13.5 | % |
| 29.9 | % |
| 26.3 | % |
| 22.9 | % | ||||
Core business | 13.5 | % |
| 29.9 | % |
| 30.0 | % |
| 23.7 | % | ||||
Non-Core business (Personal Care) | — | % |
| — | % |
| (3.7) | % |
| (0.8) | % |
Reconciliation of Non-GAAP Financial Measures – GAAP Operating Income to Adjusted Operating Income (Non-GAAP) (10) (Unaudited) (in thousands) | |||||||||||||||||||||||||||
| Three Months Ended February 28, 2021 | ||||||||||||||||||||||||||
| Housewares |
| Health & Home |
| Beauty (2) |
| Total | ||||||||||||||||||||
Operating income (loss), as reported (GAAP) | $ | 16,193 |
|
| 10.0 | % |
| $ | (1,679) |
|
| (0.7) | % |
| $ | 10,011 |
|
| 8.5 | % |
| $ | 24,525 |
|
| 4.8 | % |
Asset impairment charges | — |
|
| — | % |
| — |
|
| — | % |
| 8,452 |
|
| 7.1 | % |
| 8,452 |
|
| 1.7 | % | ||||
Restructuring charges | (2) |
|
| — | % |
| (6) |
|
| — | % |
| 3 |
|
| — | % |
| (5) |
|
| — | % | ||||
Subtotal | 16,191 |
|
| 10.0 | % |
| (1,685) |
|
| (0.7) | % |
| 18,466 |
|
| 15.6 | % |
| 32,972 |
|
| 6.5 | % | ||||
Amortization of intangible assets | 514 |
|
| 0.3 | % |
| 1,196 |
|
| 0.5 | % |
| 2,406 |
|
| 2.0 | % |
| 4,116 |
|
| 0.8 | % | ||||
Non-cash share-based compensation | 2,254 |
|
| 1.4 | % |
| 2,025 |
|
| 0.9 | % |
| 1,485 |
|
| 1.3 | % |
| 5,764 |
|
| 1.1 | % | ||||
Adjusted operating income (non-GAAP) | $ | 18,959 |
|
| 11.7 | % |
| $ | 1,536 |
|
| 0.7 | % |
| $ | 22,357 |
|
| 18.9 | % |
| $ | 42,852 |
|
| 8.4 | % |
| Three Months Ended February 29, 2020 | ||||||||||||||||||||||||||
| Housewares |
| Health & Home |
| Beauty (2) |
| Total | ||||||||||||||||||||
Operating income (loss), as reported (GAAP) | $ | 13,965 |
|
| 9.6 | % |
| $ | 16,330 |
|
| 8.8 | % |
| $ | (33,040) |
|
| (29.6) | % |
| $ | (2,745) |
|
| (0.6) | % |
Acquisition-related expenses (8) | — |
|
| — | % |
| — |
|
| — | % |
| 1,071 |
|
| 1.0 | % |
| 1,071 |
|
| 0.2 | % | ||||
Asset impairment charges | — |
|
| — | % |
| — |
|
| — | % |
| 41,000 |
|
| 36.8 | % |
| 41,000 |
|
| 9.3 | % | ||||
Restructuring charges | 1,261 |
|
| 0.9 | % |
| 93 |
|
| 0.1 | % |
| 898 |
|
| 0.8 | % |
| 2,252 |
|
| 0.5 | % | ||||
Subtotal | 15,226 |
|
| 10.5 | % |
| 16,423 |
|
| 8.8 | % |
| 9,929 |
|
| 8.9 | % |
| 41,578 |
|
| 9.4 | % | ||||
Amortization of intangible assets | 543 |
|
| 0.4 | % |
| 2,451 |
|
| 1.3 | % |
| 5,148 |
|
| 4.6 | % |
| 8,142 |
|
| 1.8 | % | ||||
Non-cash share-based compensation | 1,365 |
|
| 0.9 | % |
| 1,878 |
|
| 1.0 | % |
| 943 |
|
| 0.8 | % |
| 4,186 |
|
| 0.9 | % | ||||
Adjusted operating income (non-GAAP) | $ | 17,134 |
|
| 11.8 | % |
| $ | 20,752 |
|
| 11.2 | % |
| $ | 16,020 |
|
| 14.4 | % |
| $ | 53,906 |
|
| 12.2 | % |
| Fiscal Year Ended February 28, 2021 | ||||||||||||||||||||||||||
| Housewares |
| Health & Home |
| Beauty (2) |
| Total | ||||||||||||||||||||
Operating income, as reported (GAAP) | $ | 122,487 |
|
| 16.8 | % |
| $ | 94,103 |
|
| 10.6 | % |
| $ | 64,898 |
|
| 13.5 | % |
| $ | 281,488 |
|
| 13.4 | % |
Asset impairment charges | — |
|
| — | % |
| — |
|
| — | % |
| 8,452 |
|
| 1.8 | % |
| 8,452 |
|
| 0.4 | % | ||||
Restructuring charges | 249 |
|
| — | % |
| (6) |
|
| — | % |
| 107 |
|
| — | % |
| 350 |
|
| — | % | ||||
Subtotal | 122,736 |
|
| 16.9 | % |
| 94,097 |
|
| 10.6 | % |
| 73,457 |
|
| 15.3 | % |
| 290,290 |
|
| 13.8 | % | ||||
Amortization of intangible assets | 2,055 |
|
| 0.3 | % |
| 8,611 |
|
| 1.0 | % |
| 6,977 |
|
| 1.4 | % |
| 17,643 |
|
| 0.8 | % | ||||
Non-cash share-based compensation | 10,278 |
|
| 1.4 | % |
| 9,191 |
|
| 1.0 | % |
| 6,949 |
|
| 1.4 | % |
| 26,418 |
|
| 1.3 | % | ||||
Adjusted operating income (non-GAAP) | $ | 135,069 |
|
| 18.6 | % |
| $ | 111,899 |
|
| 12.6 | % |
| $ | 87,383 |
|
| 18.2 | % |
| $ | 334,351 |
|
| 15.9 | % |
| Fiscal Year Ended February 29, 2020 | ||||||||||||||||||||||||||
| Housewares |
| Health & Home |
| Beauty (2) |
| Total | ||||||||||||||||||||
Operating income (loss), as reported (GAAP) | $ | 123,135 |
|
| 19.2 | % |
| $ | 68,166 |
|
| 9.9 | % |
| $ | (13,050) |
|
| (3.4) | % |
| $ | 178,251 |
|
| 10.4 | % |
Acquisition-related expenses (8) | — |
|
| — | % |
| — |
|
| — | % |
| 2,546 |
|
| 0.7 | % |
| 2,546 |
|
| 0.1 | % | ||||
Asset impairment charges | — |
|
| — | % |
| — |
|
| — | % |
| 41,000 |
|
| 10.8 | % |
| 41,000 |
|
| 2.4 | % | ||||
Restructuring charges | 1,351 |
|
| 0.2 | % |
| 93 |
|
| — | % |
| 1,869 |
|
| 0.5 | % |
| 3,313 |
|
| 0.2 | % | ||||
Subtotal | 124,486 |
|
| 19.4 | % |
| 68,259 |
|
| 10.0 | % |
| 32,365 |
|
| 8.5 | % |
| 225,110 |
|
| 13.2 | % | ||||
Amortization of intangible assets | 2,055 |
|
| 0.3 | % |
| 10,539 |
|
| 1.5 | % |
| 8,677 |
|
| 2.3 | % |
| 21,271 |
|
| 1.2 | % | ||||
Non-cash share-based compensation | 7,218 |
|
| 1.1 | % |
| 9,717 |
|
| 1.4 | % |
| 5,994 |
|
| 1.6 | % |
| 22,929 |
|
| 1.3 | % | ||||
Adjusted operating income (non-GAAP) | $ | 133,759 |
|
| 20.9 | % |
| $ | 88,515 |
|
| 12.9 | % |
| $ | 47,036 |
|
| 12.3 | % |
| $ | 269,310 |
|
| 15.8 | % |
Reconciliation of Non-GAAP Financial Measures - EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) and Adjusted EBITDA (10) (Unaudited) (in thousands) | |||||||||||||||
| Three Months Ended February 28, 2021 | ||||||||||||||
| Housewares |
| Health & Home |
| Beauty (2) |
| Total | ||||||||
Operating income (loss), as reported (GAAP) | $ | 16,193 |
|
| $ | (1,679) |
|
| $ | 10,011 |
|
| $ | 24,525 |
|
Depreciation and amortization | 2,590 |
|
| 3,122 |
|
| 4,011 |
|
| 9,723 |
| ||||
Non-operating income, net | — |
|
| — |
|
| 119 |
|
| 119 |
| ||||
EBITDA (non-GAAP) | 18,783 |
|
| 1,443 |
|
| 14,141 |
|
| 34,367 |
| ||||
Add: Restructuring charges | (2) |
|
| (6) |
|
| 3 |
|
| (5) |
| ||||
Asset impairment charges | — |
|
| — |
|
| 8,452 |
|
| 8,452 |
| ||||
Non-cash share-based compensation | 2,254 |
|
| 2,025 |
|
| 1,485 |
|
| 5,764 |
| ||||
Adjusted EBITDA (non-GAAP) | $ | 21,035 |
|
| $ | 3,462 |
|
| $ | 24,081 |
|
| $ | 48,578 |
|
| Three Months Ended February 29, 2020 | ||||||||||||||
| Housewares |
| Health & Home |
| Beauty (2) |
| Total | ||||||||
Operating income (loss), as reported (GAAP) | $ | 13,965 |
|
| $ | 16,330 |
|
| $ | (33,040) |
|
| $ | (2,745) |
|
Depreciation and amortization | 2,006 |
|
| 3,791 |
|
| 6,736 |
|
| 12,533 |
| ||||
Non-operating income, net | — |
|
| — |
|
| 81 |
|
| 81 |
| ||||
EBITDA (non-GAAP) | 15,971 |
|
| 20,121 |
|
| (26,223) |
|
| 9,869 |
| ||||
Add: Acquisition-related expenses (8) | — |
|
| — |
|
| 1,071 |
|
| 1,071 |
| ||||
Restructuring charges | 1,261 |
|
| 93 |
|
| 898 |
|
| 2,252 |
| ||||
Asset impairment charges | — |
|
| — |
|
| 41,000 |
|
| 41,000 |
| ||||
Non-cash share-based compensation | 1,365 |
|
| 1,878 |
|
| 943 |
|
| 4,186 |
| ||||
Adjusted EBITDA (non-GAAP) | $ | 18,597 |
|
| $ | 22,092 |
|
| $ | 17,689 |
|
| $ | 58,378 |
|
| Fiscal Year Ended February 28, 2021 | ||||||||||||||
| Housewares |
| Health & Home |
| Beauty (2) |
| Total | ||||||||
Operating income, as reported (GAAP) | $ | 122,487 |
|
| $ | 94,103 |
|
| $ | 64,898 |
|
| $ | 281,488 |
|
Depreciation and amortization | 9,333 |
|
| 15,453 |
|
| 12,932 |
|
| 37,718 |
| ||||
Non-operating income, net | — |
|
| — |
|
| 559 |
|
| 559 |
| ||||
EBITDA (non-GAAP) | 131,820 |
|
| 109,556 |
|
| 78,389 |
|
| 319,765 |
| ||||
Add: Restructuring charges | 249 |
|
| (6) |
|
| 107 |
|
| 350 |
| ||||
Asset impairment charges | — |
|
| — |
|
| 8,452 |
|
| 8,452 |
| ||||
Non-cash share-based compensation | 10,278 |
|
| 9,191 |
|
| 6,949 |
|
| 26,418 |
| ||||
Adjusted EBITDA (non-GAAP) | $ | 142,347 |
|
| $ | 118,741 |
|
| $ | 93,897 |
|
| $ | 354,985 |
|
| Fiscal Year Ended February 29, 2020 | ||||||||||||||
|
Housewares |
| Health & Home |
| Beauty (2) |
| Total | ||||||||
Operating income (loss), as reported (GAAP) | $ | 123,135 |
|
| $ | 68,166 |
|
| $ | (13,050) |
|
| $ | 178,251 |
|
Depreciation and amortization | 7,298 |
|
| 16,113 |
|
| 13,998 |
|
| 37,409 |
| ||||
Non-operating income, net | — |
|
| — |
|
| 394 |
|
| 394 |
| ||||
EBITDA (non-GAAP) | 130,433 |
|
| 84,279 |
|
| 1,342 |
|
| 216,054 |
| ||||
Add: Acquisition-related expenses (8) | — |
|
| — |
|
| 2,546 |
|
| 2,546 |
| ||||
Restructuring charges | 1,351 |
|
| 93 |
|
| 1,869 |
|
| 3,313 |
| ||||
Asset impairment charges | — |
|
| — |
|
| 41,000 |
|
| 41,000 |
| ||||
Non-cash share-based compensation | 7,218 |
|
| 9,717 |
|
| 5,994 |
|
| 22,929 |
| ||||
Adjusted EBITDA (non-GAAP) | $ | 139,002 |
|
| $ | 94,089 |
|
| $ | 52,751 |
|
| $ | 285,842 |
|
Reconciliation of GAAP Income (Loss) and Diluted EPS to Adjusted Income and Adjusted Diluted EPS (Non-GAAP) (10) (Unaudited) (in thousands, except per share data) | |||||||||||||||||||||||
| Three Months Ended February 28, 2021 | ||||||||||||||||||||||
| Income |
| Diluted EPS | ||||||||||||||||||||
| Before Tax |
| Tax |
| Net of Tax |
| Before Tax |
| Tax |
| Net of Tax | ||||||||||||
As reported (GAAP) | $ | 21,595 |
|
| $ | (577) |
|
| $ | 22,172 |
|
| $ | 0.87 |
|
| $ | (0.02) |
|
| $ | 0.90 |
|
Asset impairment charges | 8,452 |
|
| 1,009 |
|
| 7,443 |
|
| 0.34 |
|
| 0.04 |
|
| 0.30 |
| ||||||
Restructuring charges | (5) |
|
| — |
|
| (5) |
|
| — |
|
| — |
|
| — |
| ||||||
Subtotal | 30,042 |
|
| 432 |
|
| 29,610 |
|
| 1.21 |
|
| 0.02 |
|
| 1.20 |
| ||||||
Amortization of intangible assets | 4,116 |
|
| 214 |
|
| 3,902 |
|
| 0.17 |
|
| 0.01 |
|
| 0.16 |
| ||||||
Non-cash share-based compensation | 5,764 |
|
| 520 |
|
| 5,244 |
|
| 0.23 |
|
| 0.02 |
|
| 0.21 |
| ||||||
Adjusted (non-GAAP) | $ | 39,922 |
|
| $ | 1,166 |
|
| $ | 38,756 |
|
| $ | 1.61 |
|
| $ | 0.05 |
|
| $ | 1.57 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Weighted average shares of common stock used in computing diluted EPS |
| 24,737 |
|
| Three Months Ended February 29, 2020 | ||||||||||||||||||||||
| (Loss) Income |
| Diluted EPS | ||||||||||||||||||||
| Before Tax |
| Tax |
| Net of Tax |
| Before Tax |
| Tax |
| Net of Tax | ||||||||||||
As reported (GAAP) | $ | (6,078) |
|
| $ | (2,923) |
|
| $ | (3,155) |
|
| $ | (0.24) |
|
| $ | (0.12) |
|
| $ | (0.13) |
|
Acquisition-related expenses (8) | 1,071 |
|
| 16 |
|
| 1,055 |
|
| 0.04 |
|
| — |
|
| 0.04 |
| ||||||
Asset impairment charges | 41,000 |
|
| 4,574 |
|
| 36,426 |
|
| 1.61 |
|
| 0.18 |
|
| 1.43 |
| ||||||
Restructuring charges | 2,252 |
|
| 93 |
|
| 2,159 |
|
| 0.09 |
|
| — |
|
| 0.08 |
| ||||||
Subtotal | 38,245 |
|
| 1,760 |
|
| 36,485 |
|
| 1.51 |
|
| 0.07 |
|
| 1.44 |
| ||||||
Amortization of intangible assets | 8,142 |
|
| 624 |
|
| 7,518 |
|
| 0.32 |
|
| 0.02 |
|
| 0.30 |
| ||||||
Non-cash share-based compensation | 4,186 |
|
| 369 |
|
| 3,817 |
|
| 0.16 |
|
| 0.01 |
|
| 0.15 |
| ||||||
Adjusted (non-GAAP) | $ | 50,573 |
|
| $ | 2,753 |
|
| $ | 47,820 |
|
| $ | 1.99 |
|
| $ | 0.11 |
|
| $ | 1.88 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Weighted average shares of common stock used in computing diluted EPS |
| 25,403 |
|
| Fiscal Year Ended February 28, 2021 | ||||||||||||||||||||||
| Income |
| Diluted EPS | ||||||||||||||||||||
| Before Tax |
| Tax |
| Net of Tax |
| Before Tax |
| Tax |
| Net of Tax | ||||||||||||
As reported (GAAP) | $ | 269,430 |
|
| $ | 15,484 |
|
| $ | 253,946 |
|
| $ | 10.69 |
|
| $ | 0.61 |
|
| $ | 10.08 |
|
Asset impairment charges | 8,452 |
|
| 1,009 |
|
| 7,443 |
|
| 0.34 |
|
| 0.04 |
|
| 0.30 |
| ||||||
Restructuring charges | 350 |
|
| 2 |
|
| 348 |
|
| 0.01 |
|
| — |
|
| 0.01 |
| ||||||
Tax reform | — |
|
| 9,357 |
|
| (9,357) |
|
| — |
|
| 0.37 |
|
| (0.37) |
| ||||||
Subtotal | 278,232 |
|
| 25,852 |
|
| 252,380 |
|
| 11.04 |
|
| 1.03 |
|
| 10.02 |
| ||||||
Amortization of intangible assets | 17,643 |
|
| 865 |
|
| 16,778 |
|
| 0.70 |
|
| 0.03 |
|
| 0.67 |
| ||||||
Non-cash share-based compensation | 26,418 |
|
| 1,926 |
|
| 24,492 |
|
| 1.05 |
|
| 0.08 |
|
| 0.97 |
| ||||||
Adjusted (non-GAAP) | $ | 322,293 |
|
| $ | 28,643 |
|
| $ | 293,650 |
|
| $ | 12.79 |
|
| $ | 1.14 |
|
| $ | 11.65 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Weighted average shares of common stock used in computing diluted EPS |
| 25,196 |
|
| Fiscal Year Ended February 29, 2020 | ||||||||||||||||||||||
| Income |
| Diluted EPS | ||||||||||||||||||||
| Before Tax |
| Tax |
| Net of Tax |
| Before Tax |
| Tax |
| Net of Tax | ||||||||||||
As reported (GAAP) | $ | 165,940 |
|
| $ | 13,607 |
|
| $ | 152,333 |
|
| $ | 6.55 |
|
| $ | 0.54 |
|
| $ | 6.02 |
|
Acquisition-related expenses (8) | 2,546 |
|
| 38 |
|
| 2,508 |
|
| 0.10 |
|
| — |
|
| 0.10 |
| ||||||
Asset impairment charges | 41,000 |
|
| 4,574 |
|
| 36,426 |
|
| 1.62 |
|
| 0.18 |
|
| 1.44 |
| ||||||
Restructuring charges | 3,313 |
|
| 161 |
|
| 3,152 |
|
| 0.13 |
|
| 0.01 |
|
| 0.12 |
| ||||||
Subtotal | 212,799 |
|
| 18,380 |
|
| 194,419 |
|
| 8.40 |
|
| 0.73 |
|
| 7.68 |
| ||||||
Amortization of intangible assets | 21,271 |
|
| 1,245 |
|
| 20,026 |
|
| 0.84 |
|
| 0.05 |
|
| 0.79 |
| ||||||
Non-cash share-based compensation | 22,929 |
|
| 1,803 |
|
| 21,126 |
|
| 0.91 |
|
| 0.07 |
|
| 0.83 |
| ||||||
Adjusted (non-GAAP) | $ | 256,999 |
|
| $ | 21,428 |
|
| $ | 235,571 |
|
| $ | 10.15 |
|
| $ | 0.85 |
|
| $ | 9.30 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Weighted average shares of common stock used in computing diluted EPS |
| 25,322 |
|
Consolidated Core and Non-Core Net Sales and Reconciliation of Core and Non-Core Diluted EPS to Core and Non-Core Adjusted Diluted EPS (Non-GAAP) (3) (10) (Unaudited) (in thousands, except per share data) | ||||||||||||||
| Three Months Ended Last Day of February, | |||||||||||||
| 2021 |
| 2020 |
| $ Change |
| % Change | |||||||
Sales revenue, net |
|
|
|
|
|
|
| |||||||
Core | $ | 493,458 |
|
| $ | 421,640 |
|
| $ | 71,818 |
|
| 17.0 | % |
Non-Core | 15,917 |
|
| 20,725 |
|
| (4,808) |
|
| (23.2) | % | |||
Total | $ | 509,375 |
|
| $ | 442,365 |
|
| $ | 67,010 |
|
| 15.1 | % |
| Three Months Ended Last Day of February, | |||||||||||||
| 2021 |
| 2020 |
| $ Change |
| % Change | |||||||
Adjusted Diluted EPS (non-GAAP) |
|
|
|
|
|
|
| |||||||
Core | $ | 1.42 |
|
| $ | 1.73 |
|
| $ | (0.31) |
|
| (17.9) | % |
Non-Core | 0.15 |
|
| 0.15 |
|
| — |
|
| — | % | |||
Total | $ | 1.57 |
|
| $ | 1.88 |
|
| $ | (0.31) |
|
| (16.5) | % |
| Three Months Ended Last Day of February, | |||||||
Core Business: | 2021 |
| 2020 | |||||
Diluted EPS, as reported | $ | 1.05 |
|
| $ | 1.31 |
| |
Acquisition-related expenses, net of tax | — |
|
| 0.04 |
| |||
Restructuring charges, net of tax | — |
|
| 0.08 |
| |||
Subtotal | 1.05 |
|
| 1.43 |
| |||
Amortization of intangible assets, net of tax | 0.16 |
|
| 0.15 |
| |||
Non-cash share-based compensation, net of tax | 0.21 |
|
| 0.15 |
| |||
Adjusted Diluted EPS (non-GAAP) | $ | 1.42 |
|
| $ | 1.73 |
| |
| ||||||||
| Three Months Ended Last Day of February, | |||||||
Non-Core Business: | 2021 |
| 2020 | |||||
Diluted EPS, as reported | $ | (0.15) |
|
| $ | (1.44) |
| |
Asset impairment charges, net of tax | 0.30 |
|
| 1.43 |
| |||
Subtotal | 0.15 |
|
| (0.01) |
| |||
Amortization of intangible assets, net of tax | — |
|
| 0.15 |
| |||
Adjusted Diluted EPS (non-GAAP) | $ | 0.15 |
|
| $ | 0.15 |
| |
|
|
|
| |||||
Diluted EPS, as reported (GAAP) | $ | 0.90 |
|
| $ | (0.13) |
|
Consolidated Core and Non-Core Net Sales and Reconciliation of Core and Non-Core Diluted EPS to Core and Non-Core Adjusted Diluted EPS (Non-GAAP) (3) (10) (Unaudited) (in thousands, except per share data) | ||||||||||||||
| Fiscal Years Ended Last Day of February, | |||||||||||||
| 2021 |
| 2020 |
| $ Change |
| % Change | |||||||
Sales revenue, net |
|
|
|
|
|
|
| |||||||
Core | $ | 2,020,453 |
|
| $ | 1,615,094 |
|
| $ | 405,359 |
|
| 25.1 | % |
Non-Core | 78,346 |
|
| 92,338 |
|
| (13,992) |
|
| (15.2) | % | |||
Total | $ | 2,098,799 |
|
| $ | 1,707,432 |
|
| $ | 391,367 |
|
| 22.9 | % |
| Fiscal Years Ended Last Day of February, | |||||||||||||
| 2021 |
| 2020 |
| $ Change |
| % Change | |||||||
Adjusted Diluted EPS (non-GAAP) |
|
|
|
|
|
|
| |||||||
Core | $ | 11.03 |
|
| $ | 8.72 |
|
| $ | 2.31 |
|
| 26.5 | % |
Non-Core | 0.62 |
|
| 0.58 |
|
| 0.04 |
|
| 6.9 | % | |||
Total | $ | 11.65 |
|
| $ | 9.30 |
|
| $ | 2.35 |
|
| 25.3 | % |
| Fiscal Years Ended Last Day of February, | |||||||
Core Business: | 2021 |
| 2020 | |||||
Diluted EPS, as reported | $ | 9.76 |
|
| $ | 7.16 |
| |
Acquisition-related expenses, net of tax | — |
|
| 0.10 |
| |||
Restructuring charges, net of tax | 0.01 |
|
| 0.11 |
| |||
Tax Reform | (0.37) |
|
| — |
| |||
Subtotal | 9.40 |
|
| 7.37 |
| |||
Amortization of intangible assets, net of tax | 0.67 |
|
| 0.53 |
| |||
Non-cash share-based compensation, net of tax | 0.97 |
|
| 0.82 |
| |||
Adjusted Diluted EPS (non-GAAP) | $ | 11.03 |
|
| $ | 8.72 |
| |
| ||||||||
| Fiscal Years Ended Last Day of February, | |||||||
Non-Core Business: | 2021 |
| 2020 | |||||
Diluted EPS, as reported | $ | 0.32 |
|
| $ | (1.14) |
| |
Asset impairment charges, net of tax | 0.30 |
|
| 1.44 |
| |||
Restructuring charges, net of tax | — |
|
| 0.01 |
| |||
Subtotal | 0.62 |
|
| 0.31 |
| |||
Amortization of intangible assets, net of tax | — |
|
| 0.26 |
| |||
Non-cash share-based compensation, net of tax | — |
|
| 0.01 |
| |||
Adjusted Diluted EPS (non-GAAP) | $ | 0.62 |
|
| $ | 0.58 |
| |
|
|
|
| |||||
Diluted EPS, as reported (GAAP) | $ | 10.08 |
|
| $ | 6.02 |
|
Selected Consolidated Balance Sheet, Cash Flow and Liquidity Information (Unaudited) (in thousands) | |||||||
| Last Day of February, | ||||||
| 2021 |
| 2020 | ||||
Balance Sheet: |
|
|
| ||||
Cash and cash equivalents | $ | 45,120 |
|
| $ | 24,467 |
|
Receivables, net | 382,449 |
|
| 348,023 |
| ||
Inventory, net | 481,611 |
|
| 256,311 |
| ||
Assets held for sale | 39,867 |
|
| 44,806 |
| ||
Total assets, current | 971,937 |
|
| 682,836 |
| ||
Total assets | 2,263,488 |
|
| 1,903,883 |
| ||
Total liabilities, current | 614,892 |
|
| 338,896 |
| ||
Total long-term liabilities | 409,249 |
|
| 403,264 |
| ||
Total debt | 343,630 |
|
| 339,305 |
| ||
Stockholders' equity | 1,239,347 |
|
| 1,161,723 |
| ||
Liquidity: |
|
|
| ||||
Working capital | $ | 357,045 |
|
| $ | 343,940 |
|
| Fiscal Years Ended Last Day of February, | ||||||
| 2021 |
| 2020 | ||||
Cash Flow: |
|
|
| ||||
Depreciation and amortization | $ | 37,718 |
|
| $ | 37,409 |
|
Net cash provided by operating activities | 314,106 |
|
| 271,293 |
| ||
Capital and intangible asset expenditures | 98,668 |
|
| 17,759 |
| ||
Net debt proceeds | 7,100 |
|
| 16,900 |
| ||
Payments for repurchases of common stock | 203,294 |
|
| 10,169 |
|
Reconciliation of GAAP Net Cash Provided by Operating Activities to Free Cash Flow (Non-GAAP) (10) (Unaudited) (in thousands) | |||||||
| Fiscal Years Ended Last Day of February, | ||||||
| 2021 |
| 2020 | ||||
Net cash provided by operating activities (GAAP) | $ | 314,106 |
|
| $ | 271,293 |
|
Less: Capital and intangible asset expenditures | (98,668) |
|
| (17,759) |
| ||
Free cash flow (non-GAAP) | $ | 215,438 |
|
| $ | 253,534 |
|
HELEN OF TROY LIMITED AND SUBSIDIARIES
Notes to Press Release
View source version on businesswire.com: https://www.businesswire.com/news/home/20210428005265/en/
Investor Contact: Helen of Troy LimitedAnne Rakunas, Director, External Communications (915) 225-4841 ICR, Inc.Allison Malkin, Partner (203) 682-8200
Source: Helen of Troy Limited