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EXHIBIT 99.1
FOR IMMEDIATE RELEASE
HELEN OF TROY LIMITED
REPORTS RECORD SALES AND INCREASED EARNINGS
FOR 4TH QUARTER/YEAR END
YEAR'S NET INCOME RISES 32% ON 21% INCREASE IN SALES
WITH CONTINUED GROWTH FORECAST FOR CURRENT FISCAL YEAR
EL PASO, TEXAS, MAY 08, 2001 - Helen of Troy, Ltd. (NASDAQ, NM: HELE) designer,
developer and worldwide marketer of brand-name personal care products, today
reported record sales and increased earnings for the fourth quarter and year
ended Feb. 28, 2001.
Net sales climbed 21 percent to a record $361.4 million in fiscal 2001. Net
income of $17.3 million was 32 percent higher than the $13.1 million reported in
fiscal 2000. Net income per diluted share increased 36 percent to $0.60 compared
to $.44 per diluted share in 2000.
Fourth quarter sales increased 18 percent to a record $77.9 million from $66.2
million in the similar period of the prior year. Net income for the quarter was
$3.3 million or $.12 per diluted share, compared with a net loss of $6.9 million
or $.23 per diluted share for the same period a year earlier, which included
approximately $9 million, or $.31 per diluted share in year-end after tax
adjustments. Excluding these adjustments, fourth quarter net income last year
would have been $2.3 million, or $.08 per diluted share.
Gerald J. Rubin, Chairman, Chief Executive Officer and President, stated, "We
are very pleased with the results of our operations for the fourth quarter and
year ended Feb. 28, 2001. We have made improvements in virtually all aspects of
our business and are pleased to have accomplished those improvements in a market
place that is currently experiencing economic difficulties. The business
improvements include year-over-year sales growth above 20 percent, improvement
in gross margins for the year from 38 percent to 39 percent, as well as reduced
selling, general and administrative expenses for the year to 32.7 percent from
34.9 percent for last year.
"Sales increases were 18 and 21 percent respectively, for the fourth quarter and
full year ended Feb. 28, 2001. These sales increases were driven primarily by
increased sales of personal care products, consumer health and wellness products
and international personal care products. The personal care products include
Revlon, Vidal Sassoon and Sunbeam hair care appliances as well as the new
Sunbeam clipper lines and personal care products from our Professional Division.
Health and wellness products include spa and massager products as well as the
related product sales of Dr. Scholl's and Tactica International.
"International sales include personal care products sold outside of North
America, with our largest presence in the United Kingdom. Sales of brush, comb
and accessory products appear to have stabilized this past year and
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we are expecting to see increases in these lines during the coming year. New
products introduced at the January 2001 International Housewares Show in Chicago
are expected to drive sales this coming year, with emphasis on our unique new
Ion hair dryer, our new product offerings in the spa, health and wellness
product categories and our existing quiet dryers.
"Based on our most recent performance and the expectation of continued
improvements in our business model going forward, we are increasing our sales
and earnings projections for the current year. This fiscal year we expect
overall sales growth in the 10 to 15 percent range, with earnings per share
expected to be in the $.75 to $.85 range, or a 25 to 42 percent increase from
this past year. We believe that there may be continuing opportunities for
improving gross margins during the year, as well as continued SG&A expense
reductions. Operating income last year was 6 percent of sales. This year we
believe operating income could increase by as much as 33 percent to 8 percent
for the year." Rubin concluded.
Russell Gibson, Senior Vice President and Chief Financial Officer commented, "We
are optimistic that fiscal year 2002 will be another strong year for Helen of
Troy. The company has a healthy balance sheet, with approximately $28 million in
cash and marketable securities. Shareholders' equity is approximately $220
million after the repurchase of 1,342,431 shares of the Company's common stock
at a total cost of $8,699,196, or an average price per share of $6.48. The
Company's current book value is approximately $7.83 per share. With increasing
market share in the markets we serve, a strong cash position and nominal
long-term debt, we are in an excellent position to take further advantage of
acquisition opportunities, which would provide even stronger growth."
The Company will conduct a teleconference in conjunction with today's release.
The teleconference begins at 11 a.m. EDT today, Tuesday, May 08, 2001. Members
of the news media, investors and the general public are invited to access a live
broadcast of the conference call via the Investor's Relations page of the
Company's website at www.hotus.com or via StreetFusion, at www.streetfusion.com.
The event will be archived and available for replay through June 30, 2001.
Helen of Troy Limited is a leading designer, producer and marketer of brand name
consumer products. The Company's products include hair dryers, curling irons,
hair setters, women's shavers, brushes, combs, hair accessories, home hair
clippers, mirrors, foot baths, body massagers, depilatories and paraffin baths.
The Company's products are sold by mass merchandisers, drug chains, warehouse
clubs and grocery stores under the licensed trade names of Vidal Sassoon,
licensed from Procter & Gamble Co., the trademark Revlon(R), licensed from
Revlon Consumer Products Corporation, Dr. Scholl's(R), licensed from
Schering-Plough HealthCare Products, Inc., the trademark BARBIE(TM), owned by
and used under license from Mattel, Inc., and Sunbeam(R) and Oster(R) brands,
licensed from Sunbeam Corporation. Helen of Troy's owned trade names include
Dazey, Caruso, Karina and DCNL. The Company also markets hair and beauty care
products under the Helen of Troy, Hot Tools, Hot Spa, Salon Edition, Gallery
Series, Wigo and Ecstasy trademarks to the professional beauty salon industry.
This press release may contain certain forward-looking statements,
which are subject to change. The actual results may differ materially from those
described in any forward-looking statements. Additional information concerning
potential factors that could affect the Company's financial results are included
in the Company's Form 10-K for the year ended February 29, 2000.
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HELEN OF TROY LIMITED COMPARATIVE INCOME STATEMENT ANALYSIS (IN THOUSANDS,
EXCEPT SHARES AND EARNING PER SHARE)
FOR THE THREE MONTHS ENDED FOR THE YEAR ENDED
02/28/01 02/29/00 02/28/01 02/29/00
------------ ------------ ------------ ------------
Net Sales $ 77,948 $ 66,203 $ 361,398 $ 299,513
Cost of Sales 46,224 41,971(1) 220,530 185,685
------------ ------------ ------------ ------------
Gross profit 31,724 24,232 140,868 113,828
Selling, general and administrative expenses 28,023 33,880(2) 118,306 104,409
------------ ------------ ------------ ------------
Operating Income/(loss) 3,701 (9,648) 22,562 9,419
Other income/(expenses):
Interest Expense (985) (1,027) (3,989) (3,530)
Interest Income 127 231 931 987
Other Income, Net 1,009 123 1,386 6,221
------------ ------------ ------------ ------------
Earnings/(loss) before income taxes 3,852 (10,321) 20,890 13,097
Income tax expense/(benefit) 540 (3,468) 3,558 (14)
Net earnings/(loss) $ 3,312 $ (6,853) $ 17,332 $ 13,111
============ ============ ============ ============
Net earnings/(loss) per share $ .12 $ (.23) $ .60 $ .44
Weighted average shares
used in computation 28,370,000 29,485,000 28,729,000 29,885,000
(1) Includes $2,781,000 primarily related to discontinuation of non-core
products
(2) Includes $10,601,000 primarily related to discontinuation of non-core
products
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SELECTED CONSOLIDATED
BALANCE SHEET INFORMATION
AS OF: AS OF:
02/28/01 02/29/00
------------ ------------
Cash and Reserves $ 25,937,000 $ 34,265,000
Short Term Market Investments 1,956,000 994,000
Accounts receivable 64,310,000 52,916,000
Inventory 118,544,000 96,959,000
Total current assets 220,381,000 194,023,000
Total assets 337,319,000 304,252,000
Total current liabilities 62,572,000 39,628,000
Total long term liabilities 55,000,000 55,000,000
Stockholders' equity $219,747,000 $209,624,000
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2001