Helen of Troy Limited Reports Record Net Sales Revenue and Record Net Income for the Third Quarter and Fiscal Year-to-Date

 Helen of Troy Limited Reports Record Net Sales Revenue and Record Net Income
            for the Third Quarter and Fiscal Year-to-Date Periods

PR Newswire

EL PASO, Texas, Jan. 9, 2013

EL PASO, Texas, Jan. 9, 2013 /PRNewswire/ -- Helen of Troy Limited (NASDAQ,
NM: HELE), designer, developer and worldwide marketer of brand-name
household, personal care and healthcare/home environment consumer products,
today reported record net sales revenue and record net income for the three
and nine month periods ended November 30, 2012.

Fiscal 2013 third quarter net sales revenue was $374,599,000 compared to
$338,785,000 in the same period of the prior year, an increase of $35,814,000,
or 10.6 percent. Net sales revenue for the nine months ended November 30,
2012 was $962,221,000 versus net sales revenue of $887,672,000 in the same
period of the prior year, an increase of $74,549,000, or 8.4 percent.

Housewares. Fiscal 2013 third quarter net sales revenue in the Housewares
segment was $67,787,000 compared to $61,223,000 for the same period last year,
an increase of $6,564,000, or 10.7 percent. For the nine months ended
November 30, 2012, net sales revenue in the Housewares segment was
$192,606,000 compared to $178,017,000 for the same period last year, an
increase of $14,589,000, or 8.2 percent.

Personal Care. Fiscal 2013 third quarter net sales revenue in the Personal
Care segment was $148,638,000 compared to $148,984,000 for the same period
last year, a decrease of $346,000, or 0.2 percent. For the nine months ended
November 30, 2012, net sales revenue in the Personal Care segment was
$378,554,000 compared with $386,998,000 for the same period last year, a
decrease of $8,444,000, or 2.2 percent.

Healthcare/Home Environment. Fiscal 2013 third quarter net sales revenue in
the Healthcare/Home Environment segment was $158,174,000 compared to
$128,578,000 for the same period last year, an increase of $29,596,000, or
23.0 percent, reflecting $28,076,000 of incremental net sales revenue from our
acquisition of the PUR® water filtration business on December 30, 2011. For
the nine months ended November 30, 2012, net sales revenue in the
Healthcare/Home Environment segment was $391,061,000 compared with
$322,657,000 for the same period last year, an increase of $68,404,000, or
21.2 percent, reflecting $78,619,000 of incremental net sales revenue from
PUR®.

Net income for the third quarter of fiscal 2013 was $37,719,000, or $1.18 per
fully diluted share, compared to $32,879,000, or $1.04 per fully diluted
share, in the prior year third quarter, an increase in net income of
$4,840,000 or 14.7 percent. For the nine month period ended November 30,
2012, net income was $84,159,000, or $2.64 per fully diluted share, compared
to $81,077,000, or $2.56 per fully diluted share, in the same period last
year, an increase in net income of $3,082,000 or 3.8 percent.

Consolidated gross profit margin as a percentage of net sales revenue for the
fiscal quarter ended November 30, 2012 was 39.6 percent compared to 39.3
percent for the same period last year, an increase of 0.3 percentage points.
The consolidated gross profit margin as a percentage of net sales revenue for
the nine months ended November 30, 2012 was 40.2 percent compared to 40.0
percent for the same period last year, an increase of 0.2 percentage points. 

Selling, general and administrative expense as a percentage of net sales
revenue was 27.1 percent for the three months ended November 30, 2012 compared
to 27.0 percent for the same period last year, an increase of 0.1 percentage
point. Selling, general and administrative expense as a percentage of net
sales revenue was 28.8 percent for the nine months ended November 30, 2012
compared to 28.5 percent for the same period last year, an increase of 0.3
percentage points.

Operating income for the third quarter of fiscal 2013 was a record $47,052,000
compared to $41,828,000 in the same period last year, an increase of
$5,224,000, or 12.5%. Operating income for the nine month period ended
November 30, 2012 was a record $109,041,000 compared to $102,831,000 in the
same period last year, an increase of $6,210,000, or 6.0%. EBITDA without
share-based compensation for the third quarter of fiscal 2013 was $57,107,000
compared to $50,376,000 in the same period last year, an increase of
$6,731,000, or 13.4%. EBITDA without share-based compensation for the nine
month period ended November 30, 2012 was $140,032,000 compared to $125,524,000
in the same period last year, an increase of $14,508,000, or 11.6%.

Gerald J. Rubin, Chairman, Chief Executive Officer and President, commenting
on the Company's fiscal 2013 third quarter results, stated "During the third
quarter, we achieved record net sales revenue and record net income. In fact,
this was the best quarter in the Company's history in terms of net sales and
net income. We are pleased that we were able to achieve growth in net sales
revenue, net income and EBITDA without share-based compensation in such a
challenging retail sales environment. We believe the positive results in the
third fiscal quarter validate the strategic vision of Helen of Troy as a
leading global consumer product company built on a portfolio of brands that
are well-recognized and trusted, and products that are innovative and address
the needs and desires of consumers.

"We are particularly pleased with the performance of the Housewares segment,
where the steady influx of new, innovative quality products under the OXO
banner led to double-digit organic sales growth during the third quarter. The
Healthcare/Home Environment segment also saw improvements, as the current
winter weather and the early, strong cold and flu season have lessened the
previously felt impact of high inventory levels at retail due to the previous
warm winter and mild cold and flu season. The Personal Care segment
continues to make a positive contribution to the Company's earnings, but net
sales in this segment have been weaker than expected.

"As a result primarily of the changing product mix resulting from the addition
of the PUR® business, our gross margin increased 30 basis points compared to
the third quarter last year. With our SG&A remaining relatively flat, our
operating income also increased 30 basis points compared to last year's third
quarter. Finally, our net income as a percentage of net sales was up 40
basis points, marking a significant improvement over the third quarter of the
prior year.

"As a Company, we continue to have a very strong balance sheet and generate a
significant amount of cash, which can be used to further innovate our
businesses and make future acquisitions. One year after acquiring PUR® we are
pleased with the progress we have made integrating the PUR® business.

"As part of our strategic initiatives to prepare the necessary infrastructure
for planned future growth, we are excited about the recently announced plans
to construct a new 1.3 million square foot distribution facility in Olive
Branch, Mississippi. This new facility will be owned and managed by Helen of
Troy and will replace currently leased space in the area. The facility will
supplement the 1.2 million square foot distribution center we already own and
manage in Southaven, Mississippi (giving us a total of 2.5 million square feet
of distribution capacity in DeSoto County, Mississippi), and will accommodate
future growth, both organic and through acquisitions.

"Like other companies, we continue to do all we can to contain costs and
achieve maximum efficiencies. I am pleased to report that a higher percentage
of our goods are currently being made outside Asia than has been the case in
the past.

"While we are very pleased with our results for the third quarter of fiscal
2013, we continue to see challenges ahead and are uncertain of the potential
impact of changes in consumer spending patterns resulting from recent and
pending domestic tax changes and Federal legislation. While we still expect
earnings per fully diluted share for the full fiscal year to be in the range
of $3.50 to $3.60, we now expect net sales revenue to be in the range of
$1.275 billion to $1.3 billion," Rubin concluded.

The Company will conduct a teleconference in conjunction with today's earnings
release. The teleconference begins at 11 a.m. ET today, Wednesday, January 9,
2013. Members of the news media, investors and the general public are invited
to access a live broadcast of the conference call via the Investor Relations
page of the Company's website at www.hotus.com. The event will be archived
and available for replay through February 28, 2013.

About Helen of Troy Limited: Helen of Troy Limited is a leading global
consumer products company offering creative solutions for its customers
through a strong portfolio of well-recognized and widely-trusted brands,
including: Housewares: OXO®, OXO Good Grips®, OXO Soft Works®, OXO tot® and
OXO Steel®; Personal Care: Revlon®, Vidal Sassoon®, Dr. Scholl's®, Pro Beauty
Tools®, Sure®, Pert Plus®, Infusium23®, Brut®, Ammens®, Hot Tools®, Bed Head®,
Karina®, Ogilvie® and Gold 'N Hot®; and Healthcare/Home Environment: Vicks®,
Braun®, Honeywell®, PUR®, Febreze®, Stinger®, Duracraft® and SoftHeat®. The
Revlon® trademark is used under license from Revlon. The Vidal Sassoon®,
Vicks®, Braun® and Febreze® trademarks are used under license from The Procter
& Gamble Company. The Dr. Scholl's® trademark is used under license from
Merck. The Honeywell® trademark is used under license from Honeywell. The Bed
Head® trademark is used under license from Unilever.

For more information, please visit www.hotus.com .

The Company reports and discusses its operating results using financial
measures consistent with accounting principles generally accepted in the
United States of America ("GAAP"). To supplement its presentation, the Company
discloses certain financial measures that may be considered non-GAAP financial
measures, such as EBITDA and EBITDA without share-based compensation, which
are presented in an accompanying table to this press release along with a
reconciliation of these financial measures to their corresponding GAAP based
measures presented in the Company's consolidated condensed statements of
income.

This press release may contain forward-looking statements, which are subject
to change. The forward-looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Any or all
of the forward-looking statements may turn out to be wrong. They can be
affected by inaccurate assumptions or by known or unknown risks and
uncertainties. Many of these factors will be important in determining the
Company's actual future results. Consequently, no forward-looking statement
can be guaranteed. Actual future results may vary materially from those
expressed or implied in any forward-looking statements. The forward-looking
statements are qualified in their entirety by a number of risks that could
cause actual results to differ materially from historical or anticipated
results. Generally, the words "anticipates", "estimates", "believes",
"expects", "plans", "may", "will", "should", "seeks", "project", "predict",
"potential", "continue", "intends", and other similar words identify
forward-looking statements. The Company cautions readers not to place undue
reliance on forward-looking statements. The Company intends its
forward-looking statements to speak only as of the time of such statements,
and does not undertake to update or revise them as more information becomes
available. The forward-looking statements contained in this press release
should be read in conjunction with, and are subject to and qualified by, the
risks described in the Company's Form10-K for the year ended February 29,
2012 and in our other filings with the SEC. Investors are urged to refer to
the risk factors referred to above for a description of these risks. Such
risks include, among others, the departure and recruitment of key personnel,
the Company's ability to deliver products to our customers in a timely manner,
the Company's geographic concentration of certain U.S. distribution
facilities, which increases our exposure to significant shipping disruptions
and added shipping and storage costs, the Company's projections of product
demand, sales, net income and earnings per share are highly subjective and our
future net sales revenue, net income and earnings per share could vary in a
material amount from such projections, expectations regarding acquisitions and
the integration of acquired businesses, the Company's relationship with key
customers and licensors, the costs of complying with the business demands and
requirements of large sophisticated customers, the Company's dependence on
foreign sources of supply and foreign manufacturing, the impact of changing
costs of raw materials and energy on cost of goods sold and certain operating
expenses, circumstances that may contribute to future impairment of goodwill,
intangible or other long-lived assets, the risks associated with the use of
trademarks licensed from and to third parties, our dependence on the strength
of retail economies and vulnerabilities to an economic downturn, the Company's
ability to develop and introduce innovative new products to meet changing
consumer preferences, disruptions in U.S., European and other international
credit markets, exchange rate risks, trade barriers, exchange controls,
expropriations, and other risks associated with foreign operations, the
Company's leverage and the constraints it may impose, the costs, complexity
and challenges of upgrading and managing our global information systems, the
risks associated with information security breaches, the risks associated with
tax audits and related disputes with taxing authorities, potential changes in
laws, including tax laws, and the Company's ability to continue to avoid
classification as a controlled foreign corporation.

HELEN OF TROY LIMITED AND SUBSIDIARIES
Consolidated Condensed Statements of Income
(unaudited)
(in thousands, except per share data)
               Three Months Ended November 30,  Nine Months Ended November 30,
               2012            2011             2012            2011
Sales revenue, $       100.0%  $       100.0%  $       100.0%  $       100.0%
net            374,599         338,785         962,221         887,672
Cost of goods  226,146 60.4%   205,603  60.7%   575,590 59.8%   532,295  60.0%
sold
Gross profit   148,453 39.6%   133,182  39.3%   386,631 40.2%   355,377  40.0%
Selling,
general and    101,401 27.1%   91,354   27.0%   277,590 28.8%   252,546  28.5%
administrative
expense
Operating      47,052  12.6%   41,828   12.3%   109,041 11.3%   102,831  11.6%
income
Other income
(expense):
Nonoperating
income         (16)    0.0%    190      0.1%    38      0.0%    (325)    0.0%
(expense), net
Interest       (3,232) -0.9%   (2,958)  -0.9%   (9,674) -1.0%   (9,652)  -1.1%
expense
Total other    (3,248) -0.9%   (2,768)  -0.8%   (9,636) -1.0%   (9,977)  -1.1%
expense
Income before  43,804  11.7%   39,060   11.5%   99,405  10.3%   92,854   10.5%
income taxes
Income tax     6,085   1.6%    6,181    1.8%    15,246  1.6%    11,777   1.3%
expense
Net income     $      10.1%   $      9.7%    $      8.7%    $      9.1%
               37,719         32,879          84,159         81,077
Diluted        $            $             $            $   
earnings per   1.18            1.04          2.64            2.56
share
Weighted average
shares of common stock
used
in computing
diluted        31,970          31,666           31,885          31,685
earnings per
share

HELEN OF TROY LIMITED AND SUBSIDIARIES
Selected Consolidated Balance Sheet Information
(unaudited)
(in thousands)
                            11/30/2012    11/30/2011
Cash and cash equivalents   $   16,122 $   35,419
Receivables                 258,124       229,221
Inventory                   306,290       251,760
Total assets, current       605,660       540,383
Total assets                1,534,347     1,300,979
Total liabilities, current  388,627       311,085
Total long-term liabilities 255,453       225,689
Stockholders' equity        890,267       764,205

SELECTED OTHER DATA (in thousands) (unaudited)
Reconciliation of Non-GAAP Financial Measure - EBITDA (Earnings Before
Interest, Taxes, Depreciation and Amortization) and EBITDA withoutshare-based
compensation
                        Three Months Ended       Nine Months Ended November
                        November 30,             30,
                        2012          2011       2012              2011
Net income              $           $        $               $  
                        37,719       32,879    84,159           81,077
Interest expense, net   3,219         2,873      9,619             9,373
Income tax expense      6,085         6,181      15,246            11,777
Depreciation and        8,796         7,375      26,591            21,066
amortization
EBITDA (Earnings before
interest, taxes,        $           $        $  135,615      $ 
depreciation and        55,819       49,308                      123,293
amortization)
EBITDA without
share-based
compensation
EBITDA, as calculated   $           $        $  135,615      $ 
above                   55,819       49,308                      123,293
Add: Share-based       1,288         1,068      4,417             2,231
compensation
EBITDA without          $           $                          $ 
share-based             57,107       50,376    $  140,032      125,524
compensation

The above table of SELECTED OTHER DATA and the accompanying press release
include non-GAAP measures. EBITDA and EBITDA without share-based compensation
that are discussed in the accompanying press release or in the preceding table
may be considered non-GAAP financial information as contemplated by SEC
Regulation G, Rule 100. Accordingly, we are providing the preceding table that
reconciles these measures to their corresponding GAAP based measures presented
in our Consolidated Condensed Statements of Income in the accompanying table
to the press release. The Company believes that these non-GAAP 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 measures, in combination
with the Company's financial results calculated in accordance with GAAP,
provides investors with additional perspective. The Company further believes
that the items excluded from certain non-GAAP measures do not accurately
reflect the underlying performance of its continuing operations for the period
in which they are incurred, even though some of these excluded items may be
incurred and reflected in the Company's GAAP financial results in the
foreseeable future. The material limitation associated with the use of the
non-GAAP financial measures is that the non-GAAP measures do not reflect the
full economic impact of the Company's activities. These non-GAAP measures are
not prepared in accordance with GAAP, are not an alternative to GAAP financial
information, and may be calculated differently than non-GAAP financial
information disclosed by other companies. Accordingly, undue reliance should
not be placed on non-GAAP information.

SOURCE Helen of Troy Limited

Website: http://www.hotus.com
Contact: John Boomer, Senior Vice President, +1-915-225-8050,
jboomer@hotus.com
 
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