EXHIBIT 99.1
[HELEN OF TROY LETTER HEAD]
FOR IMMEDIATE RELEASE
HELEN OF TROY LIMITED REPORTS
RECORD SALES AND RECORD EARNINGS
FOR FIRST QUARTER
QUARTERLY NET INCOME INCREASES 125%
QUARTERLY EARNINGS PER SHARE INCREASE 127%
EPS GUIDANCE FOR FISCAL YEAR RAISED TO $1.75 TO $1.80 FROM $1.45 TO
$1.50
BOARD OF DIRECTORS APPROVES STOCK REPURCHASE PLAN
EL PASO, Texas JUL. 9 - Helen of Troy Limited (NASDAQ, NM: HELE)
designer, developer and worldwide marketer of brand-name personal care products,
today reported record sales and earnings for the quarter ended May 31, 2003.
Sales increased 4 percent to a first quarter record of $106,500,000
versus sales of $102,483,000 in the same period of the prior year. First quarter
net income increased 125 percent to a record $14,844,000 or 50 cents per diluted
share, compared with $6,591,000 or 22 cents per diluted share for the same
period a year earlier. On June 17, 2003, Helen of Troy settled pending
litigation and included the proceeds from this settlement in Other Income. The
effect of the settlement was to increase earnings by approximately 8 cents per
share. Earnings for the quarter were 42 cents per share, excluding this
transaction.
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Gerald J. Rubin, Helen of Troy's Chairman, Chief Executive Officer and
President, commenting on the result of the Company's first quarter, stated "This
marks our tenth consecutive year of first quarter sales increases, and we are
extremely pleased with the results achieved in this difficult retail sales
environment. Sales increased in every segment of our business, excluding
Tactica. Our sales leaders include the International division, the Professional
division, retail personal care products and Idelle Labs skin and hair care
products. First quarter sales excluding Tactica increased by 20 percent to $91.2
million. Excluding Tactica and our new Idelle Labs division, Helen of Troy sales
increased by 7.9 percent to $82.1 million versus $76.1 million for last year's
first quarter.
"Gross margins increased to 49.6 percent from 48.3 percent last year.
First quarter operating income increased 5.4 percentage points to 15.2 percent
of net sales from 9.8 percent a year ago. First quarter net income increased 7.5
percentage points to 13.9 percent from 6.4 percent a year ago.
"Helen of Troy has a strong balance sheet which includes cash of $33
million and stockholders' equity of $304 million, an increase of $47 million in
stockholders' equity from the comparable period last year. Accounts receivable
at quarter-end was $72 million, and inventory was $137 million. Inventory
increased $25 million, or 22 percent, from $112 million last quarter.
Year-over-year inventory increased $52 million or 61 percent from last year's
$85 million level, while sales for the quarter excluding Tactica increased 20
percent. The year-over-year inventory increase is due to increased sales during
the quarter, early build up of inventory for anticipated sales increases the
remainder of the year, expected ocean freight increases beginning at mid-year,
and our business inventory of skin and hair care products for the new Idelle
Labs Division. We also felt that it would be prudent to increase orders for
product inventory during the quarter to accommodate for any possible impact that
may have resulted from the SARS epidemic in Asia.
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"For the fiscal year ending February 28, 2004, we expect overall sales
to increase 9 to 12 percent, to a range of $500 to $515 million. We are raising
our fiscal year earnings per share guidance to $1.75 to $1.80, from $1.45 to
$1.50, or 34 to 37 percent increase from prior fiscal year's earnings per share
of $1.31. Year-over-year sales have increased in 34 of the past 37 quarters,
with net income increasing in 33 of these 37 quarters, which we believe
demonstrates a consistent financial performance during the past nine years.
Because of our continuing confidence in the future performance of the company,
our Board of Directors' has authorized a Stock Repurchase Program consisting of
3,000,000 shares, effective immediately," Rubin concluded.
The Company will conduct a teleconference in conjunction with today's
release. The teleconference begins at 11 a.m. ET today, July 9, 2003. Members of
the news media, investors and the general public are invited to access a live
broadcast of the conference call via the Investor Relations page of the
Company's website at www.hotus.com or via CCBN's Investor Distribution Network
at www.companyboardroom.com for individual investors and www.streetevents.com
for institutional investors. The event will be archived and available for replay
through August 31, 2003.
Helen of Troy Limited is a leading designer, producer and marketer of
brand name personal care 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, paraffin
baths, liquid hair styling products, body powder and skin care products. The
Company's products are sold by mass merchandisers, drug chains, warehouse clubs
and grocery stores under licensed trade marks including Vidal Sassoon(R),
licensed from The Procter & Gamble Company, Revlon(R), licensed from Revlon
Consumer Products Corporation, Dr. Scholl's(R), licensed from Schering-Plough
HealthCare Products, Inc., Sunbeam(R) licensed from American Household, Inc.,
Sea Breeze(R), licensed from Shisheido Corporation, and Vitapointe(R) licensed
from Sara Lee
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Household and Body Care UK Limited. Helen of Troy's owned trade names include
Dazey(R), Caruso(R), Karina(R), DCNL(TM), Nandi (TM), Isobel(TM), WaveRage(R),
Vitalis(R), Final Net(R), Ammens(R), and Condition 3-in-1(R). The Company also
markets hair and beauty care products under the Helen of Troy(R), Hot Tools(R),
Hot Spa(R), Salon Edition(R), Gallery Series(R), Wigo(R) and Ecstasy(R)
trademarks to the professional beauty salon industry.
This press release may contain certain forward-looking statements,
which are subject to change. These forward-looking statements include the
Company's expectation regarding overall sales increases and earnings per share
increases for the fiscal year ending February 28, 2004. A number of risks or
uncertainties could cause actual results to differ materially from historical or
anticipated results. Generally, the words "anticipates," "believes", "expects"
and other similar words identify forward-looking statements. The Company
cautions readers to not place undue reliance on forward-looking statements. The
actual results may differ materially from those described in any forward-looking
statements. The Company intends its forward-looking statements to speak only as
of the time of such statements, and does not undertake to update or revise them
as more information becomes available. 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 28, 2003.
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HELEN OF TROY LIMITED COMPARATIVE ANALYSIS (UNAUDITED)
(IN THOUSANDS, EXCEPT SHARES AND EARNINGS PER SHARE)
FOR THE THREE MONTHS ENDED
--------------------------
05/31/03 05/31/02
----------- ----------
Net Sales $ 106,500 $ 102,483
Cost of Sales 53,705 52,968
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Gross profit 52,795 49,515
Selling, general and administrative expenses 36,599 39,504
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Operating Income 16,196 10,011
Other income (expense):
Interest expense (1,009) (1,067)
Interest Income 242 308
Other income (expense), net 2,646 5
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Total other income (expense) 1,879 (754)
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Earnings before income taxes 18,075 9,257
Income tax expense 3,231 2,666
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Net earnings $ 14,844 $ 6,591
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Net earnings per share - diluted $ .50 $ .22
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Weighted average shares
used in computation 29,899,000 29,746,000
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SELECTED CONSOLIDATED BALANCE SHEET INFORMATION
05/31/03 05/31/02
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Cash $ 32,606,000 $ 88,410,000
Trading Securities, at market value 1,591,000 145,000
Accounts receivable 71,951,000 66,069,000
Inventory 137,271,000 85,237,000
Total current assets 256,755,000 249,022,000
Total assets 427,233,000 362,610,000
Total current liabilities 67,866,000 50,562,000
Total long term liabilities 55,000,000 55,000,000
Stockholders' equity $304,367,000 $257,048,000
SELECTED SEGMENT INFORMATION
Sales by Operating Segment:
FOR THE THREE MONTHS ENDED
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05/31/03 05/31/02
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Segment
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North America $ 81,387 $ 71,929
International 9,849 4,204
Tactica 15,264 26,350
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$ 106,500 $ 102,483
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SELECTED OTHER DATA
Reconciliation of Non-GAAP Financial Measure - EBITDA (Earnings Before Interest,
Taxes, Depreciation and Amortization) to Net Earnings:
FOR THE THREE MONTHS ENDED
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05/31/03 05/31/02
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Net Earnings $ 14,844 $ 6,591
Interest Income / Expense, Net 767 759
Income Tax Expense 3,231 2,666
Depreciation & Amortization 1,432 1,868
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EBITDA (Earnings Before Interest, $ 20,274 $ 11,884
Taxes, Depreciation and Amortization) ========= ========
This information is being provided because management believes it is a key
metric to the investment community and assists in the understanding and analysis
of period-to-period operating performance. EBITDA should be considered in
addition to, not as a substitute for, or superior to, measures of financial
performance prepared in accordance with GAAP.
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2003