Helen of Troy Limited Reports Solid Fourth Quarter Fiscal 2024 Results
Consolidated Net Sales Growth of 1.0%
GAAP Diluted EPS Growth of 19.3% to
GAAP Operating Margin Expansion of
Adjusted EBITDA Margin Expansion of
Initiates Fiscal 2025 Outlook:
Consolidated
GAAP Diluted EPS of
Adjusted EBITDA of
Further Net Leverage Ratio(1)(3) Reduction to Between 1.25X and 1.00X by the End of Fiscal 2025
Executive Summary – Fourth Quarter of Fiscal 2024 Compared to Fiscal 2023
-
Consolidated net sales revenue of
$489.2 million , an increase of 1.0% - Gross profit margin improvement of 570 basis points to 49.0% compared to 43.3%
- Operating margin improvement of 240 basis points to 13.5% compared to 11.1%
- Non-GAAP adjusted operating margin improvement of 320 basis points to 17.0% compared to 13.8%
-
GAAP diluted EPS of
$1.79 compared to$1.50 -
Non-GAAP adjusted diluted EPS of
$2.45 compared to$2.01 -
Net cash provided by operating activities of
$73.6 million compared to$158.7 million - Non-GAAP adjusted EBITDA margin improvement of 410 basis points to 19.3% compared to 15.2%
Executive Summary - Fiscal 2024 Compared to Fiscal 2023
-
Consolidated net sales revenue of
$2.005 billion , a decrease of 3.3% - Gross profit margin improvement of 390 basis points to 47.3% compared to 43.4%
- Operating margin improvement of 280 basis points to 13.0% compared to 10.2%
- Non-GAAP adjusted operating margin of 15.0% compared to 14.5%
-
GAAP diluted EPS of
$7.03 compared to$5.95 -
Non-GAAP adjusted diluted EPS of
$8.91 compared to$9.45 -
Net cash provided by operating activities of
$306.1 million compared to$208.2 million - Non-GAAP adjusted EBITDA margin of 16.8% compared to 15.8%
|
Three Months Ended Last Day of February, |
||||||||||
(in thousands) (unaudited) |
Home & Outdoor |
|
Beauty & Wellness |
|
Total |
||||||
Fiscal 2023 sales revenue, net |
$ |
211,926 |
|
|
$ |
272,657 |
|
|
$ |
484,583 |
|
Organic business (4) |
|
10,818 |
|
|
|
(7,618 |
) |
|
|
3,200 |
|
Impact of foreign currency |
|
568 |
|
|
|
850 |
|
|
|
1,418 |
|
Change in sales revenue, net |
|
11,386 |
|
|
|
(6,768 |
) |
|
|
4,618 |
|
Fiscal 2024 sales revenue, net |
$ |
223,312 |
|
|
$ |
265,889 |
|
|
$ |
489,201 |
|
|
|
|
|
|
|
||||||
Total net sales revenue growth (decline) |
|
5.4 |
% |
|
|
(2.5 |
)% |
|
|
1.0 |
% |
Organic business |
|
5.1 |
% |
|
|
(2.8 |
)% |
|
|
0.7 |
% |
Impact of foreign currency |
|
0.3 |
% |
|
|
0.3 |
% |
|
|
0.3 |
% |
|
|
|
|
|
|
||||||
Operating margin (GAAP) |
|
|
|
|
|
||||||
Fiscal 2024 |
|
15.7 |
% |
|
|
11.7 |
% |
|
|
13.5 |
% |
Fiscal 2023 |
|
14.8 |
% |
|
|
8.2 |
% |
|
|
11.1 |
% |
Adjusted operating margin (non-GAAP) (1) |
|
|
|
|
|
||||||
Fiscal 2024 |
|
18.7 |
% |
|
|
15.6 |
% |
|
|
17.0 |
% |
Fiscal 2023 |
|
17.1 |
% |
|
|
11.2 |
% |
|
|
13.8 |
% |
|
Three Months Ended Last Day of February, |
|
% Change |
|
4-Year CAGR |
||||||
(in thousands, except per share data) (unaudited) |
|
2024 |
|
|
2023 |
|
FY24/FY23 |
|
|||
Consolidated net sales revenue |
$ |
489,201 |
|
$ |
484,583 |
|
1.0 |
% |
|
2.5 |
% |
Net income |
|
42,734 |
|
|
36,180 |
|
18.1 |
% |
|
* |
|
Adjusted EBITDA (non-GAAP) (1) |
|
94,308 |
|
|
73,421 |
|
28.4 |
% |
|
12.7 |
% |
Net cash provided by operating activities |
|
73,608 |
|
|
158,719 |
|
(53.6 |
)% |
|
(18.9 |
)% |
|
|
|
|
|
|
|
|
||||
Diluted EPS |
$ |
1.79 |
|
$ |
1.50 |
|
19.3 |
% |
|
* |
|
Adjusted Diluted EPS (non-GAAP) (1) |
|
2.45 |
|
|
2.01 |
|
21.9 |
% |
|
6.8 |
% |
* Calculation is not meaningful. |
|
Fiscal Year Ended Last Day of February, |
|
% Change |
|
4-Year CAGR |
||||||
(in thousands, except per share data) (unaudited) |
|
2024 |
|
|
2023 |
|
FY24/FY23 |
|
|||
Consolidated net sales revenue |
$ |
2,005,050 |
|
$ |
2,072,667 |
|
(3.3 |
)% |
|
4.1 |
% |
Net income |
|
168,594 |
|
|
143,273 |
|
17.7 |
% |
|
2.6 |
% |
Adjusted EBITDA (non-GAAP) (1) |
|
336,213 |
|
|
327,519 |
|
2.7 |
% |
|
4.1 |
% |
Net cash provided by operating activities |
|
306,067 |
|
|
208,242 |
|
47.0 |
% |
|
3.1 |
% |
|
|
|
|
|
|
|
|
||||
Diluted EPS |
$ |
7.03 |
|
$ |
5.95 |
|
18.2 |
% |
|
4.0 |
% |
Adjusted Diluted EPS (non-GAAP) (1) |
|
8.91 |
|
|
9.45 |
|
(5.7 |
)% |
|
(1.1 |
)% |
Consolidated Results - Fourth Quarter Fiscal 2024 Compared to Fourth Quarter Fiscal 2023
-
Consolidated net sales revenue increased
$4.6 million , or 1.0%, to$489.2 million , compared to$484.6 million , primarily driven by an increase from Organic business of$3.2 million , or 0.7%. The Organic business increase was primarily due to growth in the consolidated online channel lead by the travel tumbler in Home & Outdoor and hair appliances in Beauty & Wellness, international gains driven by thermometry, hair appliances, and strong demand for travel packs, an increase in the club and closeout channels in Home & Outdoor, and prestige hair care growth in Beauty & Wellness. These factors were partially offset by declines in air purifiers, fans, and heaters primarily driven by SKU rationalization and softer consumer demand, and a decline in humidification reflecting a cough/cold/flu season illness incidence below the prior year and pre-Covid historical averages. - Consolidated gross profit margin increased 570 basis points to 49.0%, compared to 43.3%. The increase was primarily due to a decrease in inventory obsolescence expense, lower inbound freight and commodity costs, lower overall customer discount and program expense, and a more favorable product mix within Beauty & Wellness including the favorable impact of SKU rationalization efforts. These factors were partially offset by a less favorable customer and product mix within Home & Outdoor.
-
Consolidated selling, general and administrative expense (“SG&A”) ratio increased 490 basis points to 34.7%, compared to 29.8%. The increase was primarily due to higher share-based compensation expense, increased marketing investment, higher annual incentive compensation expense, and an increase in depreciation and distribution expense primarily due to the scale up of the Company's new distribution facility in
Gallaway, Tennessee . These factors were partially offset by cost savings from Project Pegasus and the favorable comparative impact ofEPA compliance costs of$1.5 million incurred in the prior year period. -
Consolidated operating income was
$66.2 million , or 13.5% of net sales revenue, compared to$53.7 million , or 11.1% of net sales revenue. The 240 basis point increase in consolidated operating margin was primarily due to a decrease in inventory obsolescence expense, a decrease in restructuring charges of$8.3 million , lower inbound freight and commodity costs, lower trade discount and program expense, a more favorable product mix within Beauty & Wellness including the favorable impact of SKU rationalization efforts, and the favorable comparative impact ofEPA compliance costs of$1.5 million incurred in the prior year period. These factors were partially offset by higher share-based compensation expense, increased marketing investment, higher annual incentive compensation expense, an increase in depreciation and distribution expense primarily due to a new distribution facility, and a less favorable customer and product mix within Home & Outdoor. -
Interest expense was
$12.5 million , compared to$14.1 million . The decrease in interest expense was primarily due to lower average borrowings outstanding, partially offset by a higher average effective interest rate compared to the same period last year. - Income tax expense as a percentage of income before income tax was 21.9%, compared to 8.9%, primarily due to shifts in the mix of income in various tax jurisdictions and the unfavorable comparative impact of changes in estimated income used to calculate the annual effective tax rate in the same period last year.
-
Net income was
$42.7 million , compared to$36.2 million . Diluted EPS was$1.79 , compared to$1.50 . Diluted EPS increased primarily due to higher operating income in both Beauty & Wellness and Home & Outdoor, lower interest expense, an increase in interest income, and lower weighted average diluted shares outstanding, partially offset by an increase in the effective income tax rate. -
Non-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased 28.4% to
$94.3 million , compared to$73.4 million . Non-GAAP adjusted EBITDA margin improved to 19.3% compared to 15.2%.
On an adjusted basis (non-GAAP) for the fourth quarters of fiscal 2024 and 2023, excluding
-
Adjusted operating income increased
$16.6 million , or 24.9%, to$83.3 million , or 17.0% of net sales revenue, compared to$66.7 million , or 13.8% of net sales revenue. The 320 basis point increase in adjusted operating margin was primarily driven by a decrease in inventory obsolescence expense, lower inbound freight and commodity costs, lower overall trade discount and program expense, and a more favorable product mix within Beauty & Wellness including the favorable impact of SKU rationalization efforts. These factors were partially offset by increased marketing investment, higher annual incentive compensation expense, an increase in depreciation and distribution expense primarily due to a new distribution facility, and a less favorable customer and product mix within Home & Outdoor. -
Adjusted income increased
$10.1 million , or 20.8%, to$58.6 million , compared to$48.5 million . Adjusted diluted EPS increased 21.9% to$2.45 , compared to$2.01 . The increase in adjusted diluted EPS was primarily due to higher adjusted operating income in both Beauty & Wellness and Home & Outdoor, lower interest expense, an increase in interest income, and lower weighted average diluted shares outstanding, partially offset by an increase in the adjusted effective income tax rate.
Segment Results - Fourth Quarter Fiscal 2024 Compared to Fourth Quarter Fiscal 2023
Home & Outdoor net sales revenue increased
Home & Outdoor operating income was
Beauty & Wellness net sales revenue decreased
Beauty & Wellness operating income was
Balance Sheet and Cash Flow - Fiscal 2024 Compared to Fiscal 2023
-
Cash and cash equivalents totaled
$18.5 million , compared to$29.1 million . - Accounts receivable turnover was 66.2 days, compared to 69.4 days.
-
Inventory was
$396.0 million , compared to$455.5 million . Inventory turnover was 2.5 times, compared to 2.1 times. -
Total short- and long-term debt was
$665.7 million , compared to$934.4 million as a result of strong cash flow in fiscal 2024. -
Net cash provided by operating activities for fiscal 2024 was
$306.1 million , compared to$208.2 million . -
Free cash flow(1)(2) for fiscal 2024 was
$269.4 million , compared to$33.4 million , which includes$19.3 million and$147 million of capital expenditures for the newTennessee distribution facility, respectively.
Pegasus Restructuring Plan
The Company previously announced a global restructuring plan intended to expand operating margins through initiatives designed to improve efficiency and effectiveness and reduce costs (collectively referred to as “Project Pegasus”). Project Pegasus includes multiple workstreams to further optimize the Company's brand portfolio, streamline and simplify the organization, accelerate cost of goods savings projects, enhance the efficiency of its supply chain network, optimize its indirect spending and improve its cash flow and working capital, as well as other activities. The Company anticipates these initiatives will create operating efficiencies, as well as provide a platform to fund future growth investments.
The Company has updated its expectations regarding Project Pegasus charges and savings. The Company has lowered its total estimate of one-time pre-tax restructuring charges to approximately
-
Pre-tax restructuring charges to be comprised of approximately
$15 million to$19 million of severance and employee related costs,$28 million of professional fees,$3 million to$4 million of contract termination costs, and$4 million of other exit and disposal costs. -
All of the Company's operating segments and shared services will be impacted by the plan and pre-tax restructuring charges include approximately
$16 million to$17 million in Home & Outdoor and$34 million to$38 million in Beauty & Wellness. - Pre-tax restructuring charges represent primarily cash expenditures, which the Company continues to expect to be substantially paid by the end of fiscal 2025.
The Company has the following expectations regarding Project Pegasus savings:
-
The Company continues to expect targeted annualized pre-tax operating profit improvements of approximately
$75 million to$85 million , which began in fiscal 2024 and which the Company now expects to be substantially achieved by the end of fiscal 2027. - The Company has updated its expectations regarding the estimated cadence of the recognition of the savings to be approximately 25% in fiscal 2024, which was achieved, approximately 35% in fiscal 2025, approximately 25% in fiscal 2026, and approximately 15% in fiscal 2027. The Company previously estimated recognition of the savings to be approximately 25% in fiscal 2024, approximately 50% in fiscal 2025 and approximately 25% in 2026.
- The Company continues to expect total profit improvements to be realized approximately 60% through reduced cost of goods sold and 40% through lower SG&A.
Fiscal 2025 Annual Outlook
The Company expects consolidated net sales revenue in the range of
The Company's fiscal year net sales outlook reflects the following expectations by segment:
- Home & Outdoor net sales growth of 1.0% to 4.0%; and
- Beauty & Wellness net sales decline of 4.5% to 1.5%, which includes a year-over-year headwind of approximately 1.0% related to the expiration of an out-license relationship in Wellness.
The Company expects GAAP diluted EPS of
The Company expects adjusted EBITDA of
The Company expects free cash flow in the range of
In terms of the quarterly cadence of sales, the Company expects a decline of approximately 7% to 5% in the first quarter of fiscal 2025, and a range of flat to 3% growth for each of the remaining quarters. The Company expects a slight decline in adjusted diluted EPS for the first half of fiscal 2025, with a decline of approximately 15% to 20% in the first quarter and nearly offsetting growth in the second quarter. The Company expects an adjusted EPS range of flat to 5% growth in the second half of fiscal 2025.
The Company's consolidated net sales and EPS outlook also reflects the following assumptions:
- the severity of the cough/cold/flu season will be in line with pre-COVID historical averages;
-
April 2024 foreign currency exchange rates will remain constant for the remainder of the fiscal year; -
expected interest expense in the range of
$34.0 million to$36.0 million ; - a reported GAAP effective tax rate range of 19.0% to 21.0% for the full fiscal year 2025 and an adjusted effective tax rate range of 17.2% to 18.3%; and
- an estimated weighted average diluted shares outstanding of 23.7 million for the full year.
The likelihood, timing and potential impact of a significant or prolonged recession, any fiscal 2025 acquisitions and divestitures, future asset impairment charges, future foreign currency fluctuations, additional interest rate increases, or share repurchases are unknown and cannot be reasonably estimated; therefore, they are not included in the Company's outlook.
Conference Call and Webcast
The Company will conduct a teleconference in conjunction with today's earnings release. The teleconference begins at
Non-GAAP Financial Measures
The Company reports and discusses its operating results using financial measures consistent with accounting principles generally accepted in
About
For more information about Helen of Troy, please visit http://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, in other filings with the
HELEN OF TROY LIMITED AND SUBSIDIARIES Consolidated Statements of Income (5) (Unaudited) (in thousands, except per share data) |
|||||||||||
|
Three Months Ended Last Day of February, |
||||||||||
|
2024 |
|
2023 |
||||||||
Sales revenue, net |
$ |
489,201 |
|
100.0 |
% |
|
$ |
484,583 |
|
100.0 |
% |
Cost of goods sold |
|
249,606 |
|
51.0 |
% |
|
|
274,525 |
|
56.7 |
% |
Gross profit |
|
239,595 |
|
49.0 |
% |
|
|
210,058 |
|
43.3 |
% |
Selling, general and administrative expense (“SG&A”) |
|
169,569 |
|
34.7 |
% |
|
|
144,224 |
|
29.8 |
% |
Restructuring charges |
|
3,850 |
|
0.8 |
% |
|
|
12,121 |
|
2.5 |
% |
Operating income |
|
66,176 |
|
13.5 |
% |
|
|
53,713 |
|
11.1 |
% |
Non-operating income, net |
|
1,053 |
|
0.2 |
% |
|
|
64 |
|
— |
% |
Interest expense |
|
12,500 |
|
2.6 |
% |
|
|
14,063 |
|
2.9 |
% |
Income before income tax |
|
54,729 |
|
11.2 |
% |
|
|
39,714 |
|
8.2 |
% |
Income tax expense |
|
11,995 |
|
2.5 |
% |
|
|
3,534 |
|
0.7 |
% |
Net income |
$ |
42,734 |
|
8.7 |
% |
|
$ |
36,180 |
|
7.5 |
% |
|
|
|
|
|
|
|
|
||||
Diluted earnings per share (“EPS”) |
$ |
1.79 |
|
|
|
$ |
1.50 |
|
|
||
|
|
|
|
|
|
|
|
||||
Weighted average shares of common stock used in computing diluted EPS |
|
23,891 |
|
|
|
|
24,103 |
|
|
|
Fiscal Year Ended Last Day of February, |
||||||||||
|
2024 |
|
2023 |
||||||||
Sales revenue, net |
$ |
2,005,050 |
|
100.0 |
% |
|
$ |
2,072,667 |
|
100.0 |
% |
Cost of goods sold |
|
1,056,390 |
|
52.7 |
% |
|
|
1,173,316 |
|
56.6 |
% |
Gross profit |
|
948,660 |
|
47.3 |
% |
|
|
899,351 |
|
43.4 |
% |
SG&A |
|
669,359 |
|
33.4 |
% |
|
|
660,198 |
|
31.9 |
% |
Restructuring charges |
|
18,712 |
|
0.9 |
% |
|
|
27,362 |
|
1.3 |
% |
Operating income |
|
260,589 |
|
13.0 |
% |
|
|
211,791 |
|
10.2 |
% |
Non-operating income, net |
|
1,518 |
|
0.1 |
% |
|
|
249 |
|
— |
% |
Interest expense |
|
53,065 |
|
2.6 |
% |
|
|
40,751 |
|
2.0 |
% |
Income before income tax |
|
209,042 |
|
10.4 |
% |
|
|
171,289 |
|
8.3 |
% |
Income tax expense |
|
40,448 |
|
2.0 |
% |
|
|
28,016 |
|
1.4 |
% |
Net income |
$ |
168,594 |
|
8.4 |
% |
|
$ |
143,273 |
|
6.9 |
% |
|
|
|
|
|
|
|
|
||||
Diluted EPS |
$ |
7.03 |
|
|
|
$ |
5.95 |
|
|
||
|
|
|
|
|
|
|
|
||||
Weighted average shares of common stock used in computing diluted EPS |
|
23,970 |
|
|
|
|
24,090 |
|
|
Consolidated and Segment Net Sales Revenue (Unaudited) (in thousands) |
|||||||||||
|
Three Months Ended Last Day of February, |
||||||||||
|
Home & Outdoor |
|
Beauty & Wellness |
|
Total |
||||||
Fiscal 2023 sales revenue, net |
$ |
211,926 |
|
|
$ |
272,657 |
|
|
$ |
484,583 |
|
Organic business (4) |
|
10,818 |
|
|
|
(7,618 |
) |
|
|
3,200 |
|
Impact of foreign currency |
|
568 |
|
|
|
850 |
|
|
|
1,418 |
|
Change in sales revenue, net |
|
11,386 |
|
|
|
(6,768 |
) |
|
|
4,618 |
|
Fiscal 2024 sales revenue, net |
$ |
223,312 |
|
|
$ |
265,889 |
|
|
$ |
489,201 |
|
|
|
|
|
|
|
||||||
Total net sales revenue growth (decline) |
|
5.4 |
% |
|
|
(2.5 |
)% |
|
|
1.0 |
% |
Organic business |
|
5.1 |
% |
|
|
(2.8 |
)% |
|
|
0.7 |
% |
Impact of foreign currency |
|
0.3 |
% |
|
|
0.3 |
% |
|
|
0.3 |
% |
|
Fiscal Year Ended Last Day of February, |
||||||||||
|
Home & Outdoor |
|
Beauty & Wellness |
|
Total |
||||||
Fiscal 2023 sales revenue, net |
$ |
915,685 |
|
|
$ |
1,156,982 |
|
|
$ |
2,072,667 |
|
Organic business (4) |
|
(2,499 |
) |
|
|
(78,066 |
) |
|
|
(80,565 |
) |
Impact of foreign currency |
|
3,195 |
|
|
|
3,651 |
|
|
|
6,846 |
|
Acquisition (5) |
|
— |
|
|
|
6,102 |
|
|
|
6,102 |
|
Change in sales revenue, net |
|
696 |
|
|
|
(68,313 |
) |
|
|
(67,617 |
) |
Fiscal 2024 sales revenue, net |
$ |
916,381 |
|
|
$ |
1,088,669 |
|
|
$ |
2,005,050 |
|
|
|
|
|
|
|
||||||
Total net sales revenue growth (decline) |
|
0.1 |
% |
|
|
(5.9 |
)% |
|
|
(3.3 |
)% |
Organic business |
|
(0.3 |
)% |
|
|
(6.7 |
)% |
|
|
(3.9 |
)% |
Impact of foreign currency |
|
0.3 |
% |
|
|
0.3 |
% |
|
|
0.3 |
% |
Acquisition |
|
— |
% |
|
|
0.5 |
% |
|
|
0.3 |
% |
Consolidated (Unaudited) (in thousands) |
|||||||||||
|
Three Months Ended Last Day of February, |
||||||||||
|
2024 |
|
2023 |
||||||||
Domestic sales revenue, net |
$ |
384,066 |
|
78.5 |
% |
|
$ |
392,723 |
|
81.0 |
% |
International sales revenue, net |
|
105,135 |
|
21.5 |
% |
|
|
91,860 |
|
19.0 |
% |
Total sales revenue, net |
$ |
489,201 |
|
100.0 |
% |
|
$ |
484,583 |
|
100.0 |
% |
|
Fiscal Year Ended Last Day of February, |
||||||||||
|
2024 |
|
2023 |
||||||||
Domestic sales revenue, net |
$ |
1,560,256 |
|
77.8 |
% |
|
$ |
1,647,268 |
|
79.5 |
% |
International sales revenue, net |
|
444,794 |
|
22.2 |
% |
|
|
425,399 |
|
20.5 |
% |
Total sales revenue, net |
$ |
2,005,050 |
|
100.0 |
% |
|
$ |
2,072,667 |
|
100.0 |
% |
Reconciliation of Non-GAAP Financial Measures – GAAP Operating Income and Operating Margin to Adjusted Operating Income and Adjusted Operating Margin (Non-GAAP) (1) (Unaudited) (in thousands) |
|||||||||||||||||
|
Three Months Ended |
||||||||||||||||
|
Home & Outdoor |
|
Beauty & Wellness |
|
Total |
||||||||||||
Operating income, as reported (GAAP) |
$ |
35,003 |
|
15.7 |
% |
|
$ |
31,173 |
|
11.7 |
% |
|
$ |
66,176 |
|
13.5 |
% |
Restructuring charges |
|
500 |
|
0.2 |
% |
|
|
3,350 |
|
1.3 |
% |
|
|
3,850 |
|
0.8 |
% |
Subtotal |
|
35,503 |
|
15.9 |
% |
|
|
34,523 |
|
13.0 |
% |
|
|
70,026 |
|
14.3 |
% |
Amortization of intangible assets |
|
1,735 |
|
0.8 |
% |
|
|
2,732 |
|
1.0 |
% |
|
|
4,467 |
|
0.9 |
% |
Non-cash share-based compensation |
|
4,473 |
|
2.0 |
% |
|
|
4,294 |
|
1.6 |
% |
|
|
8,767 |
|
1.8 |
% |
Adjusted operating income (non-GAAP) |
$ |
41,711 |
|
18.7 |
% |
|
$ |
41,549 |
|
15.6 |
% |
|
$ |
83,260 |
|
17.0 |
% |
|
Three Months Ended |
|||||||||||||||||||
|
Home & Outdoor |
|
Beauty & Wellness |
|
Total |
|||||||||||||||
Operating income, as reported (GAAP) |
$ |
31,331 |
|
|
14.8 |
% |
|
$ |
22,382 |
|
|
8.2 |
% |
|
$ |
53,713 |
|
|
11.1 |
% |
|
|
— |
|
|
— |
% |
|
|
1,472 |
|
|
0.5 |
% |
|
|
1,472 |
|
|
0.3 |
% |
Restructuring charges |
|
3,127 |
|
|
1.5 |
% |
|
|
8,994 |
|
|
3.3 |
% |
|
|
12,121 |
|
|
2.5 |
% |
Subtotal |
|
34,458 |
|
|
16.3 |
% |
|
|
32,848 |
|
|
12.0 |
% |
|
|
67,306 |
|
|
13.9 |
% |
Amortization of intangible assets |
|
1,765 |
|
|
0.8 |
% |
|
|
2,895 |
|
|
1.1 |
% |
|
|
4,660 |
|
|
1.0 |
% |
Non-cash share-based compensation |
|
(56 |
) |
|
— |
% |
|
|
(5,246 |
) |
|
(1.9 |
)% |
|
|
(5,302 |
) |
|
(1.1 |
)% |
Adjusted operating income (non-GAAP) |
$ |
36,167 |
|
|
17.1 |
% |
|
$ |
30,497 |
|
|
11.2 |
% |
|
$ |
66,664 |
|
|
13.8 |
% |
|
Fiscal Year Ended |
|||||||||||||||||||
|
Home & Outdoor |
|
Beauty & Wellness (5) |
|
Total |
|||||||||||||||
Operating income, as reported (GAAP) |
$ |
142,732 |
|
|
15.6 |
% |
|
$ |
117,857 |
|
|
10.8 |
% |
|
$ |
260,589 |
|
|
13.0 |
% |
|
|
3,087 |
|
|
0.3 |
% |
|
|
1,126 |
|
|
0.1 |
% |
|
|
4,213 |
|
|
0.2 |
% |
Gain on sale of distribution and office facilities (8) |
|
(16,175 |
) |
|
(1.8 |
)% |
|
|
(18,015 |
) |
|
(1.7 |
)% |
|
|
(34,190 |
) |
|
(1.7 |
)% |
Restructuring charges |
|
5,144 |
|
|
0.6 |
% |
|
|
13,568 |
|
|
1.2 |
% |
|
|
18,712 |
|
|
0.9 |
% |
Subtotal |
|
134,788 |
|
|
14.7 |
% |
|
|
114,536 |
|
|
10.5 |
% |
|
|
249,324 |
|
|
12.4 |
% |
Amortization of intangible assets |
|
7,057 |
|
|
0.8 |
% |
|
|
11,269 |
|
|
1.0 |
% |
|
|
18,326 |
|
|
0.9 |
% |
Non-cash share-based compensation |
|
16,319 |
|
|
1.8 |
% |
|
|
17,553 |
|
|
1.6 |
% |
|
|
33,872 |
|
|
1.7 |
% |
Adjusted operating income (non-GAAP) |
$ |
158,164 |
|
|
17.3 |
% |
|
$ |
143,358 |
|
|
13.2 |
% |
|
$ |
301,522 |
|
|
15.0 |
% |
|
Fiscal Year Ended |
||||||||||||||||||
|
Home & Outdoor |
|
Beauty & Wellness (5) |
|
Total |
||||||||||||||
Operating income, as reported (GAAP) |
$ |
134,053 |
|
14.6 |
% |
|
$ |
77,738 |
|
|
6.7 |
% |
|
$ |
211,791 |
|
|
10.2 |
% |
Acquisition-related expenses |
|
117 |
|
— |
% |
|
|
2,667 |
|
|
0.2 |
% |
|
|
2,784 |
|
|
0.1 |
% |
|
|
— |
|
— |
% |
|
|
23,573 |
|
|
2.0 |
% |
|
|
23,573 |
|
|
1.1 |
% |
Gain from insurance recoveries (9) |
|
— |
|
— |
% |
|
|
(9,676 |
) |
|
(0.8 |
)% |
|
|
(9,676 |
) |
|
(0.5 |
)% |
Restructuring charges |
|
8,689 |
|
0.9 |
% |
|
|
18,673 |
|
|
1.6 |
% |
|
|
27,362 |
|
|
1.3 |
% |
Subtotal |
|
142,859 |
|
15.6 |
% |
|
|
112,975 |
|
|
9.8 |
% |
|
|
255,834 |
|
|
12.3 |
% |
Amortization of intangible assets |
|
7,020 |
|
0.8 |
% |
|
|
11,302 |
|
|
1.0 |
% |
|
|
18,322 |
|
|
0.9 |
% |
Non-cash share-based compensation |
|
10,751 |
|
1.2 |
% |
|
|
16,002 |
|
|
1.4 |
% |
|
|
26,753 |
|
|
1.3 |
% |
Adjusted operating income (non-GAAP) |
$ |
160,630 |
|
17.5 |
% |
|
$ |
140,279 |
|
|
12.1 |
% |
|
$ |
300,909 |
|
|
14.5 |
% |
Reconciliation of Non-GAAP Financial Measures – GAAP Net Income to EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), Adjusted EBITDA and Adjusted EBITDA Margin (Non-GAAP) (1) (Unaudited) (in thousands) |
||||||||||||
|
Three Months Ended Last Day of February, |
|||||||||||
|
2024 |
|
2023 |
|||||||||
Net income, as reported (GAAP) |
$ |
42,734 |
|
8.7 |
% |
|
$ |
36,180 |
|
|
7.5 |
% |
Interest expense |
|
12,500 |
|
2.6 |
% |
|
|
14,063 |
|
|
2.9 |
% |
Income tax expense |
|
11,995 |
|
2.5 |
% |
|
|
3,534 |
|
|
0.7 |
% |
Depreciation and amortization |
|
14,462 |
|
3.0 |
% |
|
|
11,353 |
|
|
2.3 |
% |
EBITDA (non-GAAP) |
|
81,691 |
|
16.7 |
% |
|
|
65,130 |
|
|
13.4 |
% |
Add: |
|
— |
|
— |
% |
|
|
1,472 |
|
|
0.3 |
% |
Restructuring charges |
|
3,850 |
|
0.8 |
% |
|
|
12,121 |
|
|
2.5 |
% |
Non-cash share-based compensation |
|
8,767 |
|
1.8 |
% |
|
|
(5,302 |
) |
|
(1.1 |
)% |
Adjusted EBITDA (non-GAAP) |
$ |
94,308 |
|
19.3 |
% |
|
$ |
73,421 |
|
|
15.2 |
% |
|
Fiscal Year Ended Last Day of February, |
||||||||||||
|
2024 |
|
2023 |
||||||||||
Net income, as reported (GAAP) |
$ |
168,594 |
|
|
8.4 |
% |
|
$ |
143,273 |
|
|
6.9 |
% |
Interest expense |
|
53,065 |
|
|
2.6 |
% |
|
|
40,751 |
|
|
2.0 |
% |
Income tax expense |
|
40,448 |
|
|
2.0 |
% |
|
|
28,016 |
|
|
1.4 |
% |
Depreciation and amortization |
|
51,499 |
|
|
2.6 |
% |
|
|
44,683 |
|
|
2.2 |
% |
EBITDA (non-GAAP) |
|
313,606 |
|
|
15.6 |
% |
|
|
256,723 |
|
|
12.4 |
% |
Add: Acquisition-related expenses |
|
— |
|
|
— |
% |
|
|
2,784 |
|
|
0.1 |
% |
|
|
4,213 |
|
|
0.2 |
% |
|
|
— |
|
|
— |
% |
|
|
— |
|
|
— |
% |
|
|
23,573 |
|
|
1.1 |
% |
Gain from insurance recoveries |
|
— |
|
|
— |
% |
|
|
(9,676 |
) |
|
(0.5 |
)% |
Gain on sale of distribution and office facilities |
|
(34,190 |
) |
|
(1.7 |
)% |
|
|
— |
|
|
— |
% |
Restructuring charges |
|
18,712 |
|
|
0.9 |
% |
|
|
27,362 |
|
|
1.3 |
% |
Non-cash share-based compensation |
|
33,872 |
|
|
1.7 |
% |
|
|
26,753 |
|
|
1.3 |
% |
Adjusted EBITDA (non-GAAP) |
$ |
336,213 |
|
|
16.8 |
% |
|
$ |
327,519 |
|
|
15.8 |
% |
Reconciliation of Non-GAAP Financial Measures – GAAP Operating Income to EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), Adjusted EBITDA and Adjusted EBITDA Margin (Non-GAAP) (1) (Unaudited) (in thousands) |
|||||||||||||||||
|
Three Months Ended |
||||||||||||||||
|
Home & Outdoor |
|
Beauty & Wellness |
|
Total |
||||||||||||
Operating income, as reported (GAAP) |
$ |
35,003 |
|
15.7 |
% |
|
$ |
31,173 |
|
11.7 |
% |
|
$ |
66,176 |
|
13.5 |
% |
Depreciation and amortization |
|
7,562 |
|
3.4 |
% |
|
|
6,900 |
|
2.6 |
% |
|
|
14,462 |
|
3.0 |
% |
Non-operating income, net |
|
— |
|
— |
% |
|
|
1,053 |
|
0.4 |
% |
|
|
1,053 |
|
0.2 |
% |
EBITDA (non-GAAP) |
|
42,565 |
|
19.1 |
% |
|
|
39,126 |
|
14.7 |
% |
|
|
81,691 |
|
16.7 |
% |
Add: Restructuring charges |
|
500 |
|
0.2 |
% |
|
|
3,350 |
|
1.3 |
% |
|
|
3,850 |
|
0.8 |
% |
Non-cash share-based compensation |
|
4,473 |
|
2.0 |
% |
|
|
4,294 |
|
1.6 |
% |
|
|
8,767 |
|
1.8 |
% |
Adjusted EBITDA (non-GAAP) |
$ |
47,538 |
|
21.3 |
% |
|
$ |
46,770 |
|
17.6 |
% |
|
$ |
94,308 |
|
19.3 |
% |
|
Three Months Ended |
|||||||||||||||||||
|
Home & Outdoor |
|
Beauty & Wellness |
|
Total |
|||||||||||||||
Operating income, as reported (GAAP) |
$ |
31,331 |
|
|
14.8 |
% |
|
$ |
22,382 |
|
|
8.2 |
% |
|
$ |
53,713 |
|
|
11.1 |
% |
Depreciation and amortization |
|
4,660 |
|
|
2.2 |
% |
|
|
6,693 |
|
|
2.5 |
% |
|
|
11,353 |
|
|
2.3 |
% |
Non-operating income, net |
|
— |
|
|
— |
% |
|
|
64 |
|
|
— |
% |
|
|
64 |
|
|
— |
% |
EBITDA (non-GAAP) |
|
35,991 |
|
|
17.0 |
% |
|
|
29,139 |
|
|
10.7 |
% |
|
|
65,130 |
|
|
13.4 |
% |
Add: |
|
— |
|
|
— |
% |
|
|
1,472 |
|
|
0.5 |
% |
|
|
1,472 |
|
|
0.3 |
% |
Restructuring charges |
|
3,127 |
|
|
1.5 |
% |
|
|
8,994 |
|
|
3.3 |
% |
|
|
12,121 |
|
|
2.5 |
% |
Non-cash share-based compensation |
|
(56 |
) |
|
— |
% |
|
|
(5,246 |
) |
|
(1.9 |
)% |
|
|
(5,302 |
) |
|
(1.1 |
)% |
Adjusted EBITDA (non-GAAP) |
$ |
39,062 |
|
|
18.4 |
% |
|
$ |
34,359 |
|
|
12.6 |
% |
|
$ |
73,421 |
|
|
15.2 |
% |
|
Fiscal Year Ended |
|||||||||||||||||||
|
Home & Outdoor |
|
Beauty & Wellness (5) |
|
Total |
|||||||||||||||
Operating income, as reported (GAAP) |
$ |
142,732 |
|
|
15.6 |
% |
|
$ |
117,857 |
|
|
10.8 |
% |
|
$ |
260,589 |
|
|
13.0 |
% |
Depreciation and amortization |
|
24,595 |
|
|
2.7 |
% |
|
|
26,904 |
|
|
2.5 |
% |
|
|
51,499 |
|
|
2.6 |
% |
Non-operating income, net |
|
— |
|
|
— |
% |
|
|
1,518 |
|
|
0.1 |
% |
|
|
1,518 |
|
|
0.1 |
% |
EBITDA (non-GAAP) |
|
167,327 |
|
|
18.3 |
% |
|
|
146,279 |
|
|
13.4 |
% |
|
|
313,606 |
|
|
15.6 |
% |
Add: |
|
3,087 |
|
|
0.3 |
% |
|
|
1,126 |
|
|
0.1 |
% |
|
|
4,213 |
|
|
0.2 |
% |
Gain on sale of distribution of office facilities |
|
(16,175 |
) |
|
(1.8 |
)% |
|
|
(18,015 |
) |
|
(1.7 |
)% |
|
|
(34,190 |
) |
|
(1.7 |
)% |
Restructuring charges |
|
5,144 |
|
|
0.6 |
% |
|
|
13,568 |
|
|
1.2 |
% |
|
|
18,712 |
|
|
0.9 |
% |
Non-cash share-based compensation |
|
16,319 |
|
|
1.8 |
% |
|
|
17,553 |
|
|
1.6 |
% |
|
|
33,872 |
|
|
1.7 |
% |
Adjusted EBITDA (non-GAAP) |
$ |
175,702 |
|
|
19.2 |
% |
|
$ |
160,511 |
|
|
14.7 |
% |
|
$ |
336,213 |
|
|
16.8 |
% |
|
Fiscal Year Ended |
||||||||||||||||||
|
Home & Outdoor |
|
Beauty & Wellness (5) |
|
Total |
||||||||||||||
Operating income, as reported (GAAP) |
$ |
134,053 |
|
14.6 |
% |
|
$ |
77,738 |
|
|
6.7 |
% |
|
$ |
211,791 |
|
|
10.2 |
% |
Depreciation and amortization |
|
18,364 |
|
2.0 |
% |
|
|
26,319 |
|
|
2.3 |
% |
|
|
44,683 |
|
|
2.2 |
% |
Non-operating income, net |
|
— |
|
— |
% |
|
|
249 |
|
|
— |
% |
|
|
249 |
|
|
— |
% |
EBITDA (non-GAAP) |
|
152,417 |
|
16.6 |
% |
|
|
104,306 |
|
|
9.0 |
% |
|
|
256,723 |
|
|
12.4 |
% |
Add: Acquisition-related expenses |
|
117 |
|
— |
% |
|
|
2,667 |
|
|
0.2 |
% |
|
|
2,784 |
|
|
0.1 |
% |
|
|
— |
|
— |
% |
|
|
23,573 |
|
|
2.0 |
% |
|
|
23,573 |
|
|
1.1 |
% |
Gain on insurance recoveries |
|
— |
|
— |
% |
|
|
(9,676 |
) |
|
(0.8 |
)% |
|
|
(9,676 |
) |
|
(0.5 |
)% |
Restructuring charges |
|
8,689 |
|
0.9 |
% |
|
|
18,673 |
|
|
1.6 |
% |
|
|
27,362 |
|
|
1.3 |
% |
Non-cash share-based compensation |
|
10,751 |
|
1.2 |
% |
|
|
16,002 |
|
|
1.4 |
% |
|
|
26,753 |
|
|
1.3 |
% |
Adjusted EBITDA (non-GAAP) |
$ |
171,974 |
|
18.8 |
% |
|
$ |
155,545 |
|
|
13.4 |
% |
|
$ |
327,519 |
|
|
15.8 |
% |
Reconciliation of Non-GAAP Financial Measures – GAAP Income and Diluted EPS to Adjusted Income and Adjusted Diluted EPS (Non-GAAP) (1) (Unaudited) (in thousands, except per share data) |
|||||||||||||||||
|
Three Months Ended |
||||||||||||||||
|
Income |
|
Diluted EPS |
||||||||||||||
|
Before Tax |
|
Tax |
|
Net of Tax |
|
Before Tax |
|
Tax |
|
Net of Tax |
||||||
As reported (GAAP) |
$ |
54,729 |
|
$ |
11,995 |
|
$ |
42,734 |
|
$ |
2.29 |
|
$ |
0.50 |
|
$ |
1.79 |
Restructuring charges |
|
3,850 |
|
|
49 |
|
|
3,801 |
|
|
0.16 |
|
|
— |
|
|
0.16 |
Subtotal |
|
58,579 |
|
|
12,044 |
|
|
46,535 |
|
|
2.45 |
|
|
0.50 |
|
|
1.95 |
Amortization of intangible assets |
|
4,467 |
|
|
628 |
|
|
3,839 |
|
|
0.19 |
|
|
0.03 |
|
|
0.16 |
Non-cash share-based compensation |
|
8,767 |
|
|
552 |
|
|
8,215 |
|
|
0.37 |
|
|
0.02 |
|
|
0.34 |
Adjusted (non-GAAP) |
$ |
71,813 |
|
$ |
13,224 |
|
$ |
58,589 |
|
$ |
3.01 |
|
$ |
0.55 |
|
$ |
2.45 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Weighted average shares of common stock used in computing diluted EPS |
|
|
23,891 |
|
Three Months Ended |
||||||||||||||||||||||
|
Income |
|
Diluted EPS |
||||||||||||||||||||
|
Before Tax |
|
Tax |
|
Net of Tax |
|
Before Tax |
|
Tax |
|
Net of Tax |
||||||||||||
As reported (GAAP) |
$ |
39,714 |
|
|
$ |
3,534 |
|
|
$ |
36,180 |
|
|
$ |
1.65 |
|
|
$ |
0.15 |
|
|
$ |
1.50 |
|
|
|
1,472 |
|
|
|
22 |
|
|
|
1,450 |
|
|
|
0.06 |
|
|
|
— |
|
|
|
0.06 |
|
Restructuring charges |
|
12,121 |
|
|
|
196 |
|
|
|
11,925 |
|
|
|
0.50 |
|
|
|
0.01 |
|
|
|
0.49 |
|
Subtotal |
|
53,307 |
|
|
|
3,752 |
|
|
|
49,555 |
|
|
|
2.21 |
|
|
|
0.16 |
|
|
|
2.06 |
|
Amortization of intangible assets |
|
4,660 |
|
|
|
694 |
|
|
|
3,966 |
|
|
|
0.19 |
|
|
|
0.03 |
|
|
|
0.16 |
|
Non-cash share-based compensation |
|
(5,302 |
) |
|
|
(298 |
) |
|
|
(5,004 |
) |
|
|
(0.22 |
) |
|
|
(0.01 |
) |
|
|
(0.21 |
) |
Adjusted (non-GAAP) |
$ |
52,665 |
|
|
$ |
4,148 |
|
|
$ |
48,517 |
|
|
$ |
2.18 |
|
|
$ |
0.17 |
|
|
$ |
2.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average shares of common stock used in computing diluted EPS |
|
|
24,103 |
|
|
Fiscal Year Ended |
||||||||||||||||||||||
|
Income |
|
Diluted EPS |
||||||||||||||||||||
|
Before Tax |
|
Tax |
|
Net of Tax |
|
Before Tax |
|
Tax |
|
Net of Tax |
||||||||||||
As reported (GAAP) |
$ |
209,042 |
|
|
$ |
40,448 |
|
|
$ |
168,594 |
|
|
$ |
8.72 |
|
|
$ |
1.69 |
|
|
$ |
7.03 |
|
|
|
4,213 |
|
|
|
53 |
|
|
|
4,160 |
|
|
|
0.18 |
|
|
|
— |
|
|
|
0.17 |
|
Gain on sale of distribution and office facilities |
|
(34,190 |
) |
|
|
(8,787 |
) |
|
|
(25,403 |
) |
|
|
(1.43 |
) |
|
|
(0.37 |
) |
|
|
(1.06 |
) |
Restructuring charges |
|
18,712 |
|
|
|
234 |
|
|
|
18,478 |
|
|
|
0.78 |
|
|
|
0.01 |
|
|
|
0.77 |
|
Subtotal |
|
197,777 |
|
|
|
31,948 |
|
|
|
165,829 |
|
|
|
8.25 |
|
|
|
1.33 |
|
|
|
6.92 |
|
Amortization of intangible assets |
|
18,326 |
|
|
|
2,447 |
|
|
|
15,879 |
|
|
|
0.76 |
|
|
|
0.10 |
|
|
|
0.66 |
|
Non-cash share-based compensation |
|
33,872 |
|
|
|
2,110 |
|
|
|
31,762 |
|
|
|
1.41 |
|
|
|
0.09 |
|
|
|
1.33 |
|
Adjusted (non-GAAP) |
$ |
249,975 |
|
|
$ |
36,505 |
|
|
$ |
213,470 |
|
|
$ |
10.43 |
|
|
$ |
1.52 |
|
|
$ |
8.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average shares of common stock used in computing diluted EPS |
|
|
23,970 |
|
Reconciliation of Non-GAAP Financial Measures – GAAP Income and Diluted EPS to Adjusted Income and Adjusted Diluted EPS (Non-GAAP) (1) (Unaudited) (in thousands, except per share data) |
|||||||||||||||||||||||
|
Fiscal Year Ended |
||||||||||||||||||||||
|
Income |
|
Diluted EPS |
||||||||||||||||||||
|
Before Tax |
|
Tax |
|
Net of Tax |
|
Before Tax |
|
Tax |
|
Net of Tax |
||||||||||||
As reported (GAAP) |
$ |
171,289 |
|
|
$ |
28,016 |
|
|
$ |
143,273 |
|
|
$ |
7.11 |
|
|
$ |
1.16 |
|
|
$ |
5.95 |
|
Acquisition-related expenses |
|
2,784 |
|
|
|
2 |
|
|
|
2,782 |
|
|
|
0.12 |
|
|
|
— |
|
|
|
0.12 |
|
|
|
23,573 |
|
|
|
354 |
|
|
|
23,219 |
|
|
|
0.98 |
|
|
|
0.01 |
|
|
|
0.96 |
|
Gain from insurance recoveries |
|
(9,676 |
) |
|
|
(121 |
) |
|
|
(9,555 |
) |
|
|
(0.40 |
) |
|
|
(0.01 |
) |
|
|
(0.40 |
) |
Restructuring charges |
|
27,362 |
|
|
|
388 |
|
|
|
26,974 |
|
|
|
1.14 |
|
|
|
0.02 |
|
|
|
1.12 |
|
Subtotal |
|
215,332 |
|
|
|
28,639 |
|
|
|
186,693 |
|
|
|
8.94 |
|
|
|
1.19 |
|
|
|
7.75 |
|
Amortization of intangible assets |
|
18,322 |
|
|
|
2,275 |
|
|
|
16,047 |
|
|
|
0.76 |
|
|
|
0.09 |
|
|
|
0.67 |
|
Non-cash share-based compensation |
|
26,753 |
|
|
|
1,830 |
|
|
|
24,923 |
|
|
|
1.11 |
|
|
|
0.08 |
|
|
|
1.03 |
|
Adjusted (non-GAAP) |
$ |
260,407 |
|
|
$ |
32,744 |
|
|
$ |
227,663 |
|
|
$ |
10.81 |
|
|
$ |
1.36 |
|
|
$ |
9.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average shares of common stock used in computing diluted EPS |
|
|
24,090 |
|
Selected Consolidated Balance Sheet, Liquidity and Cash Flow Information (Unaudited) (in thousands) |
|||||
|
Last Day of February, |
||||
|
|
2024 |
|
|
2023 |
Balance Sheet: |
|
|
|
||
Cash and cash equivalents |
$ |
18,501 |
|
$ |
29,073 |
Receivables, net |
|
394,536 |
|
|
377,604 |
Inventory |
|
395,995 |
|
|
455,485 |
Total assets, current |
|
843,918 |
|
|
892,041 |
Total assets |
|
2,838,622 |
|
|
2,913,715 |
Total liabilities, current |
|
450,811 |
|
|
412,158 |
Total long-term liabilities |
|
750,369 |
|
|
1,012,746 |
Total debt |
|
665,671 |
|
|
934,412 |
Stockholders' equity |
|
1,637,442 |
|
|
1,488,811 |
|
Fiscal Years Ended Last Day of February, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Accounts receivable turnover (days) (10) |
|
66.2 |
|
|
|
69.4 |
|
Inventory turnover (times) (10) |
|
2.5 |
|
|
|
2.1 |
|
Working capital |
$ |
393,107 |
|
|
$ |
479,883 |
|
Current ratio |
1.9:1 |
|
2.2:1 |
||||
Ending debt to ending equity ratio |
|
40.7 |
% |
|
|
62.8 |
% |
Return on average equity (10) |
|
10.9 |
% |
|
|
10.2 |
% |
|
Fiscal Years Ended Last Day of February, |
|||||
|
|
2024 |
|
|
|
2023 |
Cash Flow: |
|
|
|
|||
Depreciation and amortization |
$ |
51,499 |
|
|
$ |
44,683 |
Net cash provided by operating activities |
|
306,067 |
|
|
|
208,242 |
Capital and intangible asset expenditures |
|
36,644 |
|
|
|
174,864 |
Net debt (repayments) proceeds |
|
(269,076 |
) |
|
|
120,668 |
Payments for repurchases of common stock |
|
55,222 |
|
|
|
18,365 |
Reconciliation of Non-GAAP Financial Measures – GAAP Net Cash Provided by Operating Activities to Free Cash Flow (Non-GAAP) (1) (2) (Unaudited) (in thousands) |
|||||||
|
Fiscal Years Ended Last Day of February, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Net cash provided by operating activities (GAAP) |
$ |
306,067 |
|
|
$ |
208,242 |
|
Less: Capital and intangible asset expenditures |
|
(36,644 |
) |
|
|
(174,864 |
) |
Free cash flow (non-GAAP) |
$ |
269,423 |
|
|
$ |
33,378 |
|
Reconciliation of Non-GAAP Financial Measures – Net Leverage Ratio (Non-GAAP) (1) (3) (Unaudited) (in thousands) |
|||
|
Fiscal Year Ended |
||
|
|||
Adjusted EBITDA (non-GAAP) (11) |
$ |
336,213 |
|
|
|
(4,213 |
) |
Adjusted EBITDA per the credit agreement |
$ |
332,000 |
|
|
|
||
Total borrowings under the credit agreement, as reported (GAAP) |
$ |
671,950 |
|
Add: Outstanding letters of credit |
|
15,485 |
|
Less: Unrestricted cash and cash equivalents |
|
(23,481 |
) |
Net debt |
$ |
663,954 |
|
|
|
||
Net leverage ratio (non-GAAP) (3) |
|
2.00 |
|
Fiscal 2025 Outlook for Net Sales Revenue (Unaudited) (in thousands) |
||||||||||||
Consolidated: |
Fiscal 2024 |
|
Outlook Fiscal 2025 |
|||||||||
Net sales revenue |
$ |
2,005,050 |
|
$ |
1,965,000 |
|
|
— |
|
$ |
2,025,000 |
|
Net sales revenue (decline) growth |
|
|
|
(2.0 |
)% |
|
— |
|
|
1.0 |
% |
Reconciliation of Non-GAAP Financial Measures – Fiscal 2025 Outlook for GAAP Net Income to EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) and Adjusted EBITDA (Non-GAAP) (1) (Unaudited) (in thousands) |
|||||||||||||
|
Fiscal Year Ended |
|
Outlook Fiscal 2025 |
||||||||||
Net income, as reported (GAAP) |
$ |
168,594 |
|
|
$ |
158,560 |
|
|
— |
|
$ |
176,251 |
|
Interest expense |
|
53,065 |
|
|
|
36,000 |
|
|
— |
|
|
34,000 |
|
Income tax expense |
|
40,448 |
|
|
|
42,109 |
|
|
— |
|
|
41,437 |
|
Depreciation and amortization |
|
51,499 |
|
|
|
53,500 |
|
|
— |
|
|
51,510 |
|
EBITDA (non-GAAP) |
|
313,606 |
|
|
|
290,169 |
|
|
— |
|
|
303,198 |
|
Add: |
|
4,213 |
|
|
|
— |
|
|
— |
|
|
— |
|
Gain on sale of distribution and office facilities |
|
(34,190 |
) |
|
|
— |
|
|
— |
|
|
— |
|
Restructuring charges |
|
18,712 |
|
|
|
8,926 |
|
|
— |
|
|
3,926 |
|
Non-cash share-based compensation |
|
33,872 |
|
|
|
24,905 |
|
|
— |
|
|
23,876 |
|
Adjusted EBITDA (non-GAAP) |
$ |
336,213 |
|
|
$ |
324,000 |
|
|
— |
|
$ |
331,000 |
|
|
|
|
|
|
|
|
|
||||||
Adjusted EBITDA (non-GAAP) decline |
|
|
|
(3.6 |
)% |
|
— |
|
|
(1.6 |
)% |
Reconciliation of Non-GAAP Financial Measures – Fiscal 2025 Outlook for GAAP Diluted EPS to Adjusted Diluted EPS (Non-GAAP) and GAAP Effective Tax Rate to Adjusted Effective Tax Rate (Non-GAAP) (1)(Unaudited) |
|||||||||||||||||||||
|
Fiscal Year Ended |
|
Outlook Fiscal 2025 |
|
Tax Rate Outlook Fiscal 2025 |
||||||||||||||||
Diluted EPS, as reported (GAAP) |
$ |
7.03 |
|
|
$ |
6.68 |
|
|
— |
|
$ |
7.45 |
|
|
21.0 |
% |
|
— |
|
19.0 |
% |
|
|
0.18 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
||
Gain on sale of distribution and office facilities |
|
(1.43 |
) |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
||
Restructuring charges |
|
0.78 |
|
|
|
0.38 |
|
|
— |
|
|
0.17 |
|
|
|
|
|
|
|
||
Amortization of intangible assets |
|
0.76 |
|
|
|
0.76 |
|
|
— |
|
|
0.74 |
|
|
|
|
|
|
|
||
Non-cash share-based compensation |
|
1.41 |
|
|
|
1.05 |
|
|
— |
|
|
1.01 |
|
|
|
|
|
|
|
||
Income tax effect of adjustments |
|
0.18 |
|
|
|
(0.17 |
) |
|
— |
|
|
(0.17 |
) |
|
(2.7 |
)% |
|
— |
|
(1.8 |
)% |
Adjusted diluted EPS (non-GAAP) |
$ |
8.91 |
|
|
$ |
8.70 |
|
|
— |
|
$ |
9.20 |
|
|
18.3 |
% |
|
— |
|
17.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted diluted EPS (non-GAAP) (decline) growth |
|
|
|
(2.4 |
)% |
|
— |
|
|
3.3 |
% |
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures – Fiscal 2025 Outlook for GAAP Net Cash Provided by Operating Activities to Free Cash Flow (Non-GAAP) (1) (2) (Unaudited) (in thousands) |
|||||||||||||
|
Fiscal Year Ended |
|
Outlook Fiscal 2025 |
||||||||||
Net cash provided by operating activities (GAAP) |
$ |
306,067 |
|
|
$ |
290,000 |
|
|
— |
|
$ |
305,000 |
|
Less: Capital and intangible asset expenditures |
|
(36,644 |
) |
|
|
(35,000 |
) |
|
— |
|
|
(30,000 |
) |
Free cash flow (non-GAAP) |
$ |
269,423 |
|
|
$ |
255,000 |
|
|
— |
|
$ |
275,000 |
|
|
|
|
|
|
|
|
|
||||||
Free cash flow (non-GAAP) (decline) growth |
|
|
|
(5.4 |
)% |
|
— |
|
|
2.1 |
% |
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, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Net Leverage Ratio (“Non-GAAP Financial Measures”) that are discussed in the accompanying press release or in the preceding tables may be considered non-GAAP financial measures as defined by SEC Regulation G, Rule 100. Accordingly, the Company is providing the preceding tables that reconcile these measures to their corresponding GAAP-based financial measures. The Company is unable to present a quantitative reconciliation of forward-looking expected net leverage ratio to its most directly comparable forward-looking GAAP financial measure because such information is not available, and management cannot reliably predict all of the necessary components of such GAAP financial measure without unreasonable effort or expense. In addition, the Company believes such reconciliation would imply a degree of precision that would be confusing or misleading to investors. The Company believes that these Non-GAAP Financial 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 and benefits on applicable income, margin and earnings per share measures. The Company also believes that these Non-GAAP Financial Measures facilitate a more direct comparison of the Company's performance with its competitors. The Company further believes that including the excluded charges and benefits would not accurately reflect the underlying performance of the Company's operations for the period in which the charges and benefits were incurred and reflected in the Company's GAAP financial results. The material limitation associated with the use of the Non-GAAP Financial Measures is that the Non-GAAP Financial Measures do not reflect the full economic impact of the Company's activities. These Non-GAAP Financial Measures are not prepared in accordance with GAAP, are not an alternative to GAAP financial measures, and may be calculated differently than non-GAAP financial measures disclosed by other companies. Accordingly, undue reliance should not be placed on non-GAAP financial measures. |
|
|
|
(2) |
|
Free cash flow represents net cash provided by operating activities less capital and intangible asset expenditures. |
|
|
|
(3) |
|
Net leverage ratio is calculated as (a) total borrowings under the Company's credit agreement plus outstanding letters of credit, net of unrestricted cash and cash equivalents, including readily marketable obligations issued, guaranteed or insured by the |
|
|
|
(4) |
|
Organic business refers to net sales revenue associated with product lines or brands after the first twelve months from the date the product line or brand is acquired, excluding the impact that foreign currency remeasurement had on reported net sales revenue. Net sales revenue from internally developed brands or product lines is considered Organic business activity. |
|
|
|
(5) |
|
On |
|
|
|
(6) |
|
Charges incurred in conjunction with |
|
|
|
(7) |
|
Represents a charge for uncollectible receivables due to the bankruptcy of |
|
|
|
(8) |
|
Gain on the sale of distribution and office facilities in |
|
|
|
(9) |
|
Gain from insurance recoveries on damaged inventory resulting from a severe weather-related incident that impacted a third-party warehouse facility that the Company used for the Beauty & Wellness segment. |
|
|
|
(10) |
|
Accounts receivable turnover, inventory turnover and return on average equity computations use 12 month trailing net sales revenue, cost of goods sold or net income components as required by the particular measure. The current and four prior quarters' ending balances of trade accounts receivable, inventory and equity are used for the purposes of computing the average balance component as required by the particular measure. |
|
|
|
(11) |
|
See reconciliation of Adjusted EBITDA to the most directly comparable GAAP-based financial measure (net income) in the accompanying tables to this press release. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240424283933/en/
Investor Contact:
(915) 225-4841
(203) 682-8200
Source: