<PAGE> 1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
- --- SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended November 30, 1999
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
- --- SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
------------ ------------
Commission file number 0-23312
HELEN OF TROY LIMITED
(Exact name of registrant as specified in its charter)
Bermuda 74-2692550
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Helen of Troy Plaza
El Paso, TX. 79912
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (915) 225-8000
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
--- ---
As of January 7, 2000 there were 28,811,717 shares of Common Stock, $.10
Par Value, outstanding.
<PAGE> 2
HELEN OF TROY LIMITED AND SUBSIDIARIES
INDEX
<TABLE>
<CAPTION>
Page No.
<S> <C> <C>
PART I. FINANCIAL INFORMATION
Item 1 Consolidated Condensed Balance
Sheets as of November 30, 1999 and
February 28, 1999..................................3
Consolidated Condensed Statements
of Income for the Three and Nine
Months Ended November 30, 1999 and
November 30, 1998..................................5
Consolidated Condensed Statements
of Cash Flows for the Nine Months
ended November 30, 1999 and
November 30, 1998..................................6
Notes to Consolidated Condensed
Financial Statements...............................8
Item 2 Management's Discussion and Analysis of
Financial Condition and Results of
Operations... ....................................10
PART II. OTHER INFORMATION
Item 6 Exhibits and Reports on Form 8-K............................15
SIGNATURES...................................................................16
</TABLE>
2
<PAGE> 3
PART I. FINANCIAL INFORMATION
HELEN OF TROY LIMITED AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands, except shares)
<TABLE>
<CAPTION>
November 30, February 28,
1999 1999
------------ ------------
(unaudited)
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 24,982 $ 33,691
Marketable securities, at market value 1,266 --
Receivables, principally trade, less allowance for
doubtful receivables of $718 at November 30,
1999 and $1,756 at February 28, 1999 75,916 59,799
Inventories 98,447 90,288
Prepaid expenses 2,761 2,048
Deferred income tax benefits 4,923 3,858
------------ ------------
Total current assets 208,295 189,684
Property and equipment, net of accumulated depreciation of
$8,057 at November 30, 1999 and $6,905 at February
28, 1999
47,304 42,464
Goodwill, net of accumulated amortization of $3,613 at
November 30, 1999 and $2,224 at February 28, 1999 39,293 39,052
License agreements, at cost less accumulated amortization of
$9,847 at November 30, 1999 and $9,085 at February
28, 1999
7,205 7,967
Other assets, net of accumulated amortization 17,171 14,869
------------ ------------
$ 319,268 $ 294,036
============ ============
</TABLE>
(continued)
3
<PAGE> 4
HELEN OF TROY LIMITED AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands, except shares)
<TABLE>
<CAPTION>
November 30, February 28,
1999 1999
------------ ------------
(unaudited)
<S> <C> <C>
Liabilities and Stockholders' Equity
Current liabilities:
Notes payable to banks $ 4,800 $ 10,000
Accounts payable, principally trade 4,745 1,592
Accrued expenses:
Advertising and promotional 5,541 4,935
Other 13,502 8,563
Income taxes payable 16,818 13,654
------------ ------------
Total current liabilities 45,406 38,744
Long-term debt 55,450 55,450
------------ ------------
Total liabilities 100,856 94,194
Stockholders' equity:
Preference shares, non-voting, $1.00 par value.
Authorized 2,000,000 shares; none issued -- --
Common stock, $.10 par value. Authorized
50,000,000 shares; 29,087,885 and 29,047,332
shares issued and outstanding at November 30,
1999 and February 28, 1999, respectively 2,909 2,905
Additional paid-in capital 53,697 53,750
Retained earnings 161,806 143,187
------------ ------------
Total stockholders' equity 218,412 199,842
------------ ------------
Commitments and contingencies
$ 319,268 $ 294,036
============ ============
</TABLE>
See accompanying notes to consolidated condensed financial statements.
4
<PAGE> 5
HELEN OF TROY LIMITED AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(unaudited)
(in thousands, except shares and earnings per share)
<TABLE>
<CAPTION>
Three months ended Nine months ended
November 30, November 30,
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net sales $ 89,601 $ 89,144 $ 233,310 $ 225,442
Cost of sales 55,950 53,085 143,714 135,699
------------ ------------ ------------ ------------
Gross profit 33,651 36,059 89,596 89,743
Selling, general and administrative expenses 25,697 21,719 70,529 59,531
------------ ------------ ------------ ------------
Operating income 7,954 14,340 19,067 30,212
Other income (expense):
Interest expense (1,122) (817) (2,503) (2,581)
Other income (net) 450 340 6,854 1,707
------------ ------------ ------------ ------------
Total other income (expense) (672) (477) 4,351 (874)
------------ ------------ ------------ ------------
Earnings before income taxes 7,282 13,863 23,418 29,338
Income tax expense (benefit):
Current 2,096 3,069 4,316 6,603
Deferred (792) (296) (862) (735)
------------ ------------ ------------ ------------
Net earnings $ 5,978 $ 11,090 $ 19,964 $ 23,470
============ ============ ============ ============
Earnings per share:
Basic $ .21 $ .39 $ .69 $ .84
Diluted .20 .37 .67 .80
Weighted average number of shares used in
computing earnings per share:
Basic 29,146,580 28,665,065 29,092,439 28,026,758
Diluted 29,768,370 29,784,645 30,017,525 29,440,416
</TABLE>
See accompanying notes to consolidated condensed financial statements.
5
<PAGE> 6
HELEN OF TROY LIMITED AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
<TABLE>
<CAPTION>
Nine months ended
November 30,
1999 1998
-------- --------
<S> <C> <C>
Cash flows from operating activities:
Net earnings $ 19,964 $ 23,470
Adjustments to reconcile net income to cash provided
(used) by operating activities
Depreciation and amortization 4,823 3,405
Provision for doubtful receivables 850 444
Deferred taxes, net (862) (735)
Purchases of marketable securities (16,340) --
Proceeds from sales of marketable securities 21,377 --
Realized gain - trading securities (6,263) --
Unrealized gain - trading securities (40) --
Loss due to impairment of assets held for sale 650 --
Changes in operating assets and liabilities:
Accounts receivable (17,513) (29,730)
Inventory (8,688) (23,865)
Prepaid expenses (621) 598
Accounts payable 3,176 (792)
Accrued expenses 4,417 6,478
Income taxes payable 3,164 7,460
-------- --------
Net cash provided (used) by operating activities 8,094 (13,267)
Cash flows from investing activities:
Capital and license expenditures (7,274) (13,376)
Other assets (3,277) (14,930)
Acquisitions, net of cash acquired -- (2,234)
-------- --------
Net cash used by investing activities (10,551) (30,540)
</TABLE>
(continued)
6
<PAGE> 7
HELEN OF TROY LIMITED AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
<TABLE>
<CAPTION>
Nine months ended
November 30,
1999 1998
-------- --------
<S> <C> <C>
Cash flows from financing activities:
Net borrowings (repayments) on revolving line of
credit (5,200) 4,814
Common stock repurchases (1,750) --
Payments on long-term debt -- (1,634)
Payment of payroll tax and income tax withholding
associated with stock options exercised -- (6,669)
Exercise of stock options 698 1,059
-------- --------
Net cash used by financing activities (6,252) (2,430)
Net decrease in cash equivalents (8,709) (46,237)
Cash equivalents, beginning of period 33,691 55,670
-------- --------
Cash equivalents, end of period $ 24,982 $ 9,433
======== ========
Supplemental cash flow disclosures:
Interest paid $ 3,211 $ 2,949
Income taxes paid, net of refunds 695 --
Capital stock issued for acquisitions -- 21,700
- ---------------------------------------------------------------------------------------
Details of Acquisitions:
Fair value of assets acquired -- 30,783
Liabilities assumed -- 6,362
Stock issued -- 21,700
Cash paid -- 2,721
Less: cash acquired -- (487)
Net cash paid for acquisitions $ -- $ 2,234
</TABLE>
See accompanying notes to consolidated condensed financial statements.
7
<PAGE> 8
HELEN OF TROY LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
November 30, 1999
Note 1 - In the opinion of the Company, the accompanying consolidated
condensed financial statements contain all adjustments
(consisting of only normal recurring adjustments) necessary to
present fairly its financial condition as of November 30, 1999
and February 28, 1999 and the results of its operations for the
three-month and nine-month periods ended November 30, 1999 and
1998. While the Company believes that the disclosures presented
are adequate to make the information not misleading, it is
suggested that these statements be read in conjunction with the
financial statements and the notes included in the Company's
latest annual report on Form 10-K.
Certain reclassifications were made to information for the
three months and nine months ended November 30, 1998 in order
to conform to the presentation for the three months and nine
months ended November 30, 1999.
Note 2 - The Company is involved in various claims and legal actions
arising in the ordinary course of business. In the opinion of
management, the ultimate disposition of such claims and legal
actions will not have a material adverse effect on the
financial position, results of operations or liquidity of the
Company.
Note 3 - Basic earnings per share is computed based upon the weighted
average number of common shares outstanding during the period.
Diluted earnings per share is computed based upon the weighted
average number of common shares plus the effects of dilutive
securities. The number of dilutive securities was 621,790 and
1,119,580, respectively, for the three months ended November
30, 1999 and 1998, and 925,086 and 1,413,658, respectively, for
the nine months ended November 30, 1999 and 1998. Dilutive
securities for the three months ended November 30, 1999 were
comprised of 596,033 dilutive stock options and 25,757 shares
contingently issuable as part of an acquisition. For the nine
months ended November 30, 1999, dilutive securities included
839,109 shares for dilutive stock options and 85,977 shares
contingently issuable as part of an acquisition. Dilutive
securities for the three months ended November 30, 1998
included 1,087,490 shares for dilutive stock options and 32,090
shares contingently issuable as part of an acquisition. For the
nine months ended November 30, 1998, dilutive securities
included 1,402,962 shares attributable to dilutive stock
options and 10,696 shares contingently issuable as part of an
acquisition. All dilutive securities are included in the
calculations of diluted earnings per share.
Note 4 - Marketable securities consist of shares of common stock of
several publicly traded companies and are stated at market
value, as determined by the most recent trading price of each
security as of the balance sheet date. Management determines
the appropriate classification of the Company's investments
when those investments are
8
<PAGE> 9
purchased and reevaluates those determinations at each balance
sheet date. At November 30, 1999, the Company held its
investments in equity securities of unaffiliated companies for
the purpose of trading them in the near term (see Management's
Discussion and Analysis of Financial Condition and Results of
Operations - Information relating to forward looking
statements). Therefore, all investments in equity securities
are classified as trading securities, with all unrealized gains
and losses attributable to such securities included in
earnings. Included in the heading "Other income" on the
Consolidated Condensed Statements of Income for the three
months and nine months ended November 30, 1999 are $763,000 and
$6,303,000, respectively, in net gains from sales and changes
in the market values of trading securities. For the nine months
ended November 30, 1999 the gains on marketable securities
include realized gains of $6,263,000 and net unrealized gains
of $40,000. The net unrealized gain on marketable securities is
based on the differences between the market values of such
securities and the amounts that the Company paid for them.
Note 5 - Helen of Troy Limited holds the consolidated group's
investments in trading securities and is not subject to any
capital gains tax or other tax on the sale of equity
securities. Therefore, no income tax expense was recognized on
$6,137,000 of the $6,303,000 of income reported on sales and
appreciation of trading securities during the three-month and
nine-month periods ended November 30, 1999. The remaining
$166,000 of income from securities was recognized by a U.S.
subsidiary of Helen of Troy Limited and is therefore subject to
income tax.
Note 6 - The Company recognized a $650,000 impairment charge during the
three months ended November 30, 1999, based on the excess of
the book value over an estimate of the net realizable value of
its former headquarters. The former headquarters is classified
as an asset held for sale and is included in the heading "Other
assets" on the November 30, 1999 Consolidated Condensed Balance
Sheet. The charge against the value of the former headquarters
is included in "Other income" on the Consolidated Condensed
Statement of Income.
Note 7 - On September 29, 1999, the Company's Board of Directors
approved a resolution authorizing the Company to purchase, in
open market or private transactions, up to 3,000,000 shares of
its common stock over a period extending to September 29, 2002.
As of November 30, 1999, the Company had repurchased 208,317 of
its shares under this resolution at a total cost of $1,750,000.
During the period December 1, 1999 to January 7, 2000 the
Company repurchased an additional 276,168 shares at a total
cost of $2,027,000, bringing the total number of shares
repurchased at January 7, 2000 and the total cost of those
shares to 484,485 and $3,777,000, respectively.
9
<PAGE> 10
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Results of Operations
Quarter ended November 30, 1999
Net sales for the quarter ended November 30, 1999 increased $457,000, or 0.5%,
when compared with the quarter ended November 30, 1998. Increased competition
and sluggish U.S. retail sales of some categories of the Company's products
constrained sales growth for the three months ended November 30, 1999.
Gross profit as a percentage of sales decreased to 37.6% for the quarter ended
November 30, 1999, compared to 40.5% for the quarter ended November 30, 1998.
Changes in the mix of products sold played a role in the decrease in gross
profit as a percentage of sales. An increase in transportation costs from the
Far East was another important factor in the reduction of gross profit as a
percentage of sales for the three months ended November 30, 1999, versus the
three months ended November 30, 1998.
Selling, general, and administrative expenses as a percentage of sales increased
to 28.7% of sales for the quarter ended November 30, 1999, compared to 24.4% for
the quarter ended November 30, 1998. Higher advertising and other selling
expenses during the quarter ended November 30, 1999 accounted for much of the
increase in selling, general and administrative expenses as a percentage of
sales, compared to the same period a year earlier.
Interest expense increased $305,000 or 37.3% for the three months ended November
30, 1999, compared to the same period in the prior fiscal year. The
capitalization of interest on the construction of the Company's new headquarters
during the quarter ended November 30, 1998 is the primary reason that interest
expense was lower during that period than during the quarter ended November 30,
1999. Since the new headquarters was in service during the entire quarter ended
November 30, 1999, no interest was capitalized during that period.
Other income for the three months ended November 30, 1999 includes $763,000 in
investment gains from equity securities classified as trading securities by the
Company. The Company's investment gains and investment policies are discussed
more fully below in the analysis of the nine months ended November 30, 1999.
Other income for the three months ended November 30, 1999 is reduced by a
$650,000 impairment charge taken against the book value of the Company's former
headquarters. The Company has not yet disposed of its former headquarters, the
value of which is included in "Other assets, net of accumulated amortization" on
the Consolidated Condensed Balance Sheet as of November 30, 1999.
The Company recorded income tax expense equal to 17.9% of pre-tax income for the
three months ended November 30, 1999, compared to 20.0% for the quarter ended
November 30, 1998. Helen of Troy Limited holds the consolidated group's
investments in marketable securities and is not subject
10
<PAGE> 11
to any capital gains tax or other income tax on the sale of equity securities.
Therefore the Company recognized no income tax expense on its $763,000 gain from
marketable securities, resulting in a lower-than-usual tax rate for the three
months ended November 30, 1999.
Nine-month period ended November 30, 1999
Net sales for the nine months ended November 30, 1999 increased $7,868,000, or
3.5%, compared to the nine months ended November 30, 1998. As was the case for
the three-month period ended November 30, 1999, increased competition and retail
sluggishness within some of the Company's product categories limited sales
growth.
Gross profit as a percentage of sales decreased to 38.4% during the nine-month
period ended November 30, 1999 from 39.8% for the same period a year earlier.
The mix of products sold by the Company negatively affected gross profit as a
percentage of sales. As was the case for the three months ended November 30,
1999, higher transportation costs also contributed to the decrease in gross
profit as a percentage of sales for the nine-month period ended November 30,
1999, compared to the nine-month period ended November 30, 1998.
Selling, general, and administrative expenses increased to 30.2% of sales for
the nine months ended November 30, 1999, compared to 26.4% for the same period a
year earlier. Higher cooperative and media advertising expenses accounted for a
portion of the increase in selling, general and administrative expenses as a
percentage of sales. Customer chargebacks in excess of those experienced in
prior years also contributed to the increase. The rise in customer chargebacks
was, in part, due to issues associated with the Company taking over the
operations of its El Paso warehouse from an outside contractor in January 1999.
Management has initiated steps to alleviate most of the difficulties associated
with the transition of warehouse operations and believes that those steps will
bring chargebacks down to historical levels in the near future.
Interest expense for the nine months ended November 30, 1999 remained relatively
constant, compared to the same period last year, decreasing $78,000, or 3.0%.
The fact that the Company discontinued the capitalization of interest on its new
headquarters building upon that building's completion increased interest
expense. That increase was largely offset as the Company capitalized greater
amounts of interest on the new headquarters during the first six months of the
nine-month period ended November 30, 1999 than in the same period the previous
year.
During the nine months ended November 30, 1999, the Company recorded $6,263,000
in net realized gains from sales of trading securities and net unrealized gains
of $40,000 on equity securities held by the Company at November 30, 1999. These
gains are included in "Other income" on the Condensed Consolidated Statements of
Income. The unrealized gains were based on the differences between the market
values of the marketable securities at November 30, 1999 and the Company's
purchase prices for those securities. The Company's marketable securities
consist of shares of common stock of several publicly traded companies and are
stated at market value, as determined by the most recent trading price of each
security as of the balance sheet date. Management determines the appropriate
classification of the Company's investments when those investments are purchased
and reevaluates
11
<PAGE> 12
those determinations at each balance sheet date. At November 30, 1999, the
Company held all of its investments in equity securities of unaffiliated
companies for the purpose of trading them in the near term. Therefore, all
investments in equity securities are classified as trading securities, with all
unrealized gains and losses attributable to such securities included in
earnings. The market risk associated with investments in equity securities is
summarized below in the "Liquidity and Capital Resources" section.
The Company recorded income tax expense equal to 14.8% of pre-tax income for the
nine months ended November 30, 1999, compared to 20.0% for the nine months ended
November 30, 1998. The lower tax rate for the nine months ended November 30,
1999 is due to the fact that no income tax expense was provided for most of the
Company's gains on its marketable securities. Helen of Troy Limited holds the
consolidated group's investments in marketable securities and is not subject to
any capital gains tax or other income tax on the sale of equity securities.
Therefore, no income tax expense was recognized on $6,137,000 of the $6,303,000
of income reported on sales and appreciation of equity securities during the
nine-month period ended November 30, 1999. The remaining $166,000 of income from
securities was recognized by a U.S. subsidiary of Helen of Troy Limited and is
therefore subject to income tax.
Liquidity and Capital Resources
The Company's working capital and current ratio were $162,889,000 and 4.6,
respectively, at November 30, 1999, compared to $150,940,000 and 4.9,
respectively, at February 28, 1999. The Company's cash balance decreased to
$24,982,000 at November 30, 1999, from $33,691,000 at February 28, 1999.
Increased accounts receivable and inventory balances, as well as the payment of
$5,200,000 on the Company's revolving line of credit, contributed to the
decrease in cash. The increase in accounts receivable is caused by seasonal
fluctuations and by slower payment patterns on the part of some of the Company's
customers. The Company's allowance for doubtful accounts receivable decreased
from $1,756,000 at February 28, 1999 to $718,000 at November 30, 1999, as the
Company wrote off the accounts of three customers who had financial difficulties
in late 1998 and early 1999. The $718,000 allowance at November 30, 1999 is
comparable to the Company's allowance for doubtful accounts receivable in the
recent past, while the $1,756,000 allowance at February 28, 1999 was unusually
high compared to the recent past. The increase in inventory is due, in part, to
lower-than-expected sales levels. The Company is pursuing strategies that
management feels will better allow it to assess its inventory and to take
actions necessary to maintain optimal inventory levels. Net income, including
income from the sales of investment securities, partially offset the uses of
cash discussed above.
The Company periodically invests or may invest in certain equity securities.
Investing in equity securities entails certain market risks. Should the stock
prices of one or more of the entities in which the Company has invested decline,
the Company could lose part or all of its investment in marketable equity
securities.
On September 29, 1999, the Company's Board of Directors approved a resolution
authorizing the Company to purchase, in open market or private transactions, up
to 3,000,000 shares of its common
12
<PAGE> 13
stock over the three-year period ending September 29, 2002, if management
determines that such actions would increase shareholder value. Pursuant to this
resolution, the Company repurchased 208,317 of its shares of common stock during
the three months ended November 30, 1999 at an average price of $8.40 per share.
During the period December 1, 1999 to January 7, 2000, the Company repurchased
276,168 additional shares of its common stock at an average price of $7.34 per
share.
The Company believes that its capital resources are adequate to finance its
short- and long-term liquidity requirements.
Year 2000
The Company experienced no significant difficulties as a result of the Year 2000
("Y2K") issue. The Company's sales, accounts receivable, inventory management,
accounts payable, general ledger, payroll and Electronic Data Interchange
systems, which comprise its critical information technology ("IT") systems, were
operational immediately after the change from 1999 to 2000. The Company's non-IT
systems, such as security and telephone systems, that facilitate operations of
its warehouses and corporate headquarters, were also operational.
The Company did not incur, nor does it expect to incur, material costs in
readying its computer applications for the Year 2000. The IT and non-IT systems
currently in place were not purchased specifically, nor was their installation
accelerated, because of the Y2K issue.
In preparing for the Y2K issue, the Company assessed communications from major
customers and suppliers, including disclosures in documents that some of its
customers filed with the Securities and Exchange Commission. Based on those
assessments and on events since January 1, 2000, the Company is not aware of any
significant problems with any of its key trading partners.
Although the Company currently knows of no significant Y2K problems affecting it
or its key trading partners, there can be no guarantee that the Company or its
trading and business partners will not experience Y2K compliance difficulties.
If the Company or its significant trading and business partners experience Y2K
compliance problems, adverse business consequences could result. The Company
believes that the most likely negative effects, if any, could include
disruptions in both shipments and receipts of products, delays in the Company's
receipt of payments from customers and delays in the ability to pay certain
suppliers.
Information relating to forward-looking statements
This report, some of the Company's press releases and some of the Company's
comments to the news media, contain certain forward-looking statements that are
based on management's current expectations with respect to future events or
financial performance. 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 not to place undue
reliance on forward-looking statements. Forward-looking statements are subject
to risks that could cause such statements to differ materially from actual
results. Factors that could cause actual results to differ from those
13
<PAGE> 14
anticipated include: (1) general industry conditions and competition, (2) credit
risks, (3) the Company's material reliance on individual customers or small
numbers of customers, (4) the Company's material reliance on certain trademarks,
(5) risks associated with inventory, including potential obsolescence, (6) risks
associated with operating in foreign jurisdictions, (7) worldwide and domestic
economic conditions, (8) the impact of current and future laws, including tax
laws and litigation, (9) uninsured losses, (10) reliance on computer systems,
(11) management's reliance on the representations of third parties, (12) risks
associated with newly acquired product lines and subsidiaries, (13) risks
associated with investments in equity securities, (14) risks associated with
management's strategies designed to remedy certain operational issues, (15)
technological issues associated with Year 2000 compliance efforts and (16) the
risks described from time to time in the Company's reports to the Securities and
Exchange Commission, including the Company's Annual Report on Form 10-K for the
year ended February 28, 1999.
14
<PAGE> 15
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
Exhibits
27. Financial Data Schedule
Reports on Form 8-K
The Company did not file any reports on Form 8-K during the third quarter of
fiscal 2000.
15
<PAGE> 16
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 thereunto duly authorized.
HELEN OF TROY LIMITED
----------------------------
(Registrant)
Date January 13, 2000 /s/ Gerald J. Rubin
----------------------------
Gerald J. Rubin
Chairman of the Board and
Chief Executive Officer
(Principal Executive Officer)
Date January 13, 2000 /s/ Dona Fisher
----------------------------
Dona Fisher
Senior Vice-President,
Finance, and Chief Financial Officer
(Principal Financial Officer)
16
<PAGE> 17
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit
No. Description
- ------- -----------
<S> <C>
27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE CONSOLIDATED FINANCIAL STATEMENTS OF HELEN OF TROY LIMITED AND
SUBSIDIARIES AS OF, AND FOR THE NINE MONTHS ENDED NOVEMBER 30, 1999, AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> FEB-28-2000
<PERIOD-END> NOV-30-1999
<CASH> 24,982,000
<SECURITIES> 1,266,000
<RECEIVABLES> 76,634,000
<ALLOWANCES> 718,000
<INVENTORY> 98,447,000
<CURRENT-ASSETS> 208,295,000
<PP&E> 55,361,000
<DEPRECIATION> 8,057,000
<TOTAL-ASSETS> 319,268,000
<CURRENT-LIABILITIES> 45,406,000
<BONDS> 55,450,000
0
0
<COMMON> 2,909,000
<OTHER-SE> 215,503,000
<TOTAL-LIABILITY-AND-EQUITY> 319,268,000
<SALES> 233,310,000
<TOTAL-REVENUES> 233,310,000
<CGS> 143,714,000
<TOTAL-COSTS> 143,714,000
<OTHER-EXPENSES> 70,529,000
<LOSS-PROVISION> 850,000
<INTEREST-EXPENSE> 2,503,000
<INCOME-PRETAX> 23,418,000
<INCOME-TAX> 3,454,000
<INCOME-CONTINUING> 19,964,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 19,464,000
<EPS-BASIC> .69
<EPS-DILUTED> .67
</TABLE>
