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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 4, 1999
HELEN OF TROY LIMITED
(Exact name of registrant as specified in its charter)
BERMUDA 0-23312 74-2692550
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
6827 MARKET AVENUE
EL PASO, TEXAS 79915
(Address of principal executive offices) (ZIP Code)
Registrant's telephone number, including area code: (915) 779-6363
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ITEM 5. OTHER EVENTS.
On Monday, January 4, 1999, Helen of Troy Limited issued a press release,
which is filed herewith as Exhibit 99.1 and incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) EXHIBITS.
Exhibit No. Description.
99.1 Press Release of Helen of Troy Limited dated January 4, 1999.
2
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
HELEN OF TROY LIMITED
Date: January 4, 1999 By: /s/ Gerald J. Rubin
------------------------------------------
Gerald J. Rubin
Chairman and Chief Executive Officer
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EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
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<S> <C>
99.1 Press Release of the Company dated January 4, 1999.
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EXHIBIT 99.1
HELEN OF TROY, LTD. REPORTS RECORD 3RD QTR./9 MONTH RESULTS
EL PASO, Texas, JAN. 4 -- Helen of Troy Ltd. (NASDAQ, NM: HELE),
designer, developer and worldwide marketer of brand-name personal care products,
today reported record sales and earnings for the third quarter and nine months
ended Nov. 30, 1998.
Third quarter net income rose 20 percent, to a record $11,090,000 or 37
cents per diluted share, from $9,243,000 or 32 cents per diluted share for the
same quarter a year earlier. Third quarter sales were a record $89,144,000, up 8
percent from sales of $82,780,000 for the like period of the prior year. Net
income for the nine months increased 26 percent, to $23,470,000 or 80 cents per
diluted share from $18,692,000 or 65 cents per diluted share in the comparable
period last year. Nine month sales climbed 15 percent to a record $225,442,000
from sales of $196,137,000 for last year's nine months.
Gerald J. Rubin, chairman and chief executive officer, noted that sales
and net earnings for the three months and nine months ended November 30, 1998
were the highest in the company's 30 year history.
This quarter marks the company's 19th consecutive quarter of year over
year sales and earnings increases. For the full year ending February 28, 1999,
the company expects sales to be up approximately 17% and net earnings to be up
approximately 25% over the prior year. The company also expects the 4th quarter
to be the best 4th quarter in their history.
The company's expected strong cash position at year end, along with
existing credit lines, provide capital for continued pursuit of acquisition
opportunities that will contribute to their future growth. The company's
shareholder equity at year end is expected to be approximately $200 million.
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The company expects to complete the move of their recently acquired
subsidiaries Karina, Inc. of Wayne, New Jersey and DCNL, Inc. of San Leandro,
California to their El Paso distribution facility during January. The company
believes the synergies and efficiencies gained from the integration of these
businesses into the corporate enterprise will provide added contributions to
sales and earnings for next fiscal year.
This month the company will be debuting many exciting new products in
all of their product categories at the Chicago Housewares show and continue to
be pleased with brand increases in Caruso, Dr. Scholl's, Revlon, Vidal Sassoon
and their brush, comb and accessory lines of business. The company is also
pleased with the results of the Caruso infomercial and plan to continue that
program into the 4th quarter as well.
"Our broad customer base, extensive distribution channels, innovative
technologies and brand loyalty have enabled Helen of Troy to achieve a
leadership position in virtually every market we enter. We are pursuing a proven
growth plan that we are confident will enable us to maintain leadership in our
industry and enhance shareholder value," Rubin concluded.
Helen of Troy designs, produces and markets brand-name hair dryers,
curling irons, hair setters, women's shavers, brushes, combs, hair accessories,
mirrors, artificial fingernails and "comfort products" such as foot baths and
body massagers. Helen of Troy products are sold primarily through mass
merchandisers, drug chains, warehouse clubs and grocery stores under the
tradenames Vidal Sassoon, Revlon, Dr. Scholl's, Dazey, Caruso, Karina and DCNL
with the Kurl*Mi, Heat*Mi and Detangle*Mi lines of brushes and rollers. The
company also markets products under the Helen of Troy, Hot Tools, Hot Spa, Salon
Edition, Gallery Series and Wigo tradenames 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 28, 1998.
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HELEN OF TROY LIMITED Comparative Analysis (Unaudited)
(In thousands, except shares and earning per share)
<TABLE>
<CAPTION>
For the Three Months Ended For the Nine Months Ended
------------------------------ ------------------------------
11/30/98 11/30/97 11/30/98 11/30/97
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net Sales $ 89,144 $ 82,780 $ 225,442 $ 196,137
Cost of Sales 53,085 50,979 135,699 121,283
------------ ------------ ------------ ------------
Gross profit 36,059 31,801 89,743 74,854
Selling, general and administrative 21,719 19,398 59,531 49,858
------------ ------------ ------------ ------------
expenses
Operating Income 14,340 12,403 30,212 24,996
Other income (expenses)
Gain from land sale -- -- -- 289
Other expense, net (477) (466) (874) (1,156)
------------ ------------ ------------ ------------
Earnings before income taxes 13,863 11,937 29,338 24,129
Income tax expense 2,773 2,694 5,868 5,437
Net earnings $ 11,090 $ 9,243 $ 23,470 $ 18,692
============ ============ ============ ============
Earnings per share excluding gain on sale $ .37 $ .32 $ .80 $ .64
of land
Earnings per share associated with gain on -- -- -- .01
sale of land
Net earnings per share $ .37 $ .32(a) $ .80 $ .65(a)
Weighted average shares used in computation 29,784,645 29,285,932 29,440,416 28,809,121
</TABLE>
(a) adjusted for a 2-for-1 stock split paid Sept. 22, 1997, as a 100 percent
stock dividend on the company's common stock.
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SELECTED CONSOLIDATED BALANCE SHEET INFORMATION
<TABLE>
<CAPTION>
11/30/98 11/30/97
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<S> <C> <C>
Cash $ 9,433,000 $ 35,152,000
Accounts receivable 76,675,000 71,253,000
Inventory 98,524,000 68,358,000
Total current assets 193,334,000 179,469,000
Total assets 289,809,000 229,874,000
Total current liabilities 39,657,000 31,223,000
Total long term liabilities 55,479,000 55,450,000
Stockholders' equity $194,673,000 $143,201,000
</TABLE>
