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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): May 11, 2000
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.)
ONE HELEN OF TROY PLAZA
EL PASO, TEXAS 79912
(Address of principal executive offices) (ZIP Code)
Registrant's telephone number, including area code: (915) 225-8000
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ITEM 5. OTHER EVENTS.
On Thursday, May 11, 2000, 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 May 11, 2000.
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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: May 12, 2000 By: /s/ Gerald J. Rubin
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Gerald J. Rubin
Chairman and Chief Executive Officer
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EXHIBIT INDEX
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EXHIBIT
NUMBER DESCRIPTION
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99.1 -- Press Release of the Company dated May 11, 2000.
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EXHIBIT 99.1
HELEN OF TROY, LTD. REPORTS
4 TH QUARTER/YEAR END SALES AND EARNINGS
EL PASO, TEXAS, MAY 11 - Helen of Troy, Ltd. (NASDAQ, NM: HELE), a designer,
developer and worldwide marketer of brand-name personal care products, today
reported sales and earnings for the fourth quarter and year ended Feb. 29, 2000.
In reporting such earnings, Helen of Troy reaffirmed its business plan,
which contemplates eliminating unprofitable products, pursuing new product
development, and making acquisitions that have an accretive impact on the
Company's earnings. In implementing this business plan, the Company's fourth
quarter results were negatively impacted by approximately $9 million, or 31
cents per diluted share in year-end after-tax adjustments, including primarily
charges related to the discontinuation of non-core products. Also during the
fourth quarter, the Company implemented several major organizational changes.
These changes realigned organizational responsibilities, restructured various
departments and streamlined certain functions within the Company. This
restructuring should allow the Company to operate more efficiently and improve
overall market responsiveness.
Fourth quarter net loss was $6,853,000 or 23 cents per diluted share,
compared with net income of $4,860,000 or 16 cents per diluted share for the
same period a year earlier. Excluding the above adjustments, fourth quarter net
income would have been $2,290,000 or 8 cents per diluted share. Fourth quarter
sales were $66,203,000 down 4 percent from sales of $69,045,000 in the similar
period of the prior year.
Net income for the year was $13,111,000 or 44 cents per diluted share,
compared to $28,330,000 or 96 cents per diluted share in the comparable period
last year. Fiscal year 2000 sales increased 2 percent to $299,513,000 from sales
of $294,487,000 last year.
Gerald J. Rubin, chairman and chief executive officer, stated that, "In
spite of the difficulties encountered over the past fiscal year, our core
business market share remains strong and we feel confident that we have worked
through the short-term warehouse and distribution issues which impacted the last
three quarters. As part of our long-term strategy, we have added to our core
business during the last quarter with the acquisition of the Sunbeam and Oster
trade names for home hair clippers and Sunbeam for hair care appliances.
Subsequently, we have completed a strategic investment in Tactica International,
Inc. of New York. We believe both of these long-term initiatives complement
Helen of Troy's business strategy.
With our new product development process now in place, Helen of Troy
will pursue more innovative new products and reduced time lines for new product
introductions. We believe this will allow us to deliver top quality personal
care products to the marketplace and to our consumers, faster and more
efficiently than in the past. The impact of these changes have already become
evident with the new products launched at the January 2000 International
Housewares Show where we introduced over 30 new appliances, including the
quietest 1875 watt hairdryer under the Revlon brand name and 11 new massagers
under the Dr. Scholl's brand name." Rubin concluded.
The decline in fourth quarter sales was affected by reduced infomercial
sales of the Caruso Molecular Steam Hairsetter. The Caruso products, which sold
via infomercials in the third and fourth quarters of last year, have become
regular stock items this year in retail outlets with sales more evenly
distributed throughout the year.
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Helen of Troy, Ltd. designs, produces and markets brand-name consumer
products including hair dryers, curling irons, hair setters, women's shavers,
brushes, combs, hair accessories, home hair clippers, mirrors, foot baths and
body massagers. The Company's products are sold primarily through mass
merchandisers, drug chains, warehouse clubs and grocery stores under the
licensed trade names of Vidal Sassoon, licensed from Procter & Gamble Co., the
trademark Revlon(R), licensed from Revlon Consumer Products Corporation, Dr.
Scholl's, licensed from Schering-Plough HealthCare Products, Inc., the trademark
BARBIE (TM), owned by and used under license from Mattel, Inc., and Sunbeam(R)
and Oster(R) brands, licensed from Sunbeam Corporation. Helen of Troy's owned
trade names include Dazey, Caruso, Karina and DCNL, with its Kurl*Mi, Heat*Mi,
Detangle*Mi and Wrap*Mi lines of brushes and rollers. The Company also markets
products under the Helen of Troy, Hot Tools, Hot Spa, Salon Edition, Gallery
Series, Wigo and Ecstasy trade names 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, 1999.
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HELEN OF TROY LIMITED COMPARATIVE ANALYSIS
(IN THOUSANDS, EXCEPT SHARES AND EARNING PER SHARE)
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FOR THE THREE MONTHS ENDED FOR THE YEAR ENDED
02/29/00 02/28/99 02/29/00 02/28/99
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<S> <C> <C> <C> <C>
Net Sales $ 66,203 $ 69,045 $ 299,513 $ 294,487
Cost of Sales 41,971(1) 39,594 185,685 175,293
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Gross profit 24,232 29,451 113,828 119,194
Selling, general and administrative expenses 33,880(2) 23,331 104,409 82,862
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Operating Income (9,648) 6,120 9,419 36,332
Other income (expenses):
Interest Expense (1,027) (756) (3,530) (3,337)
Interest Income 231 166 987 1,496
Other Income, Net 123 545 6,221 922
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Earnings before income taxes (10,321) 6,075 13,097 35,413
Income tax expense (3,468) 1,215 (14) 7,083
Net earnings/(loss) $ (6,853) $ 4,860 $ 13,111 $ 28,330
============ ============ ============ ============
Net earnings/(loss) per share $ (.23) $ .16 $ .44 $ .96
Weighted average shares
used in computation 29,484,950 30,074,715 29,885,260 29,596,189
</TABLE>
(1) Includes $2,781,000 primarily related to discontinuation of non-core
products
(2) Includes $10,601,000 primarily related to discontinuation of non-core
products
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SELECTED CONSOLIDATED BALANCE SHEET INFORMATION
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FOR THE YEAR ENDED
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02/29/00 02/28/99
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Cash $ 34,265,000 $ 33,691,000
Short Term Market Investments 994,000 --
Accounts receivable 52,916,000 59,799,000
Inventory 96,959,000 90,288,000
Total current assets 194,023,000 189,684,000
Total assets 304,252,000 294,036,000
Total current liabilities 39,628,000 38,744,000
Total long term liabilities 55,000,000 55,450,000
Stockholders' equity $209,624,000 $199,842,000
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