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Helen of Troy Limited Reports Results For the First Quarter of Fiscal Year 2014



  Helen of Troy Limited Reports Results For the First Quarter of Fiscal Year
  2014

  * GAAP Diluted EPS of $0.45 includes $0.37 per share in non-cash asset
    impairment charges
  * Adjusted Diluted EPS rises 10.8% to $0.82 from $0.74 per diluted share
    last year

Business Wire

EL PASO, Texas -- July 9, 2013

Helen of Troy Limited (NASDAQ, NM: HELE), designer, developer and worldwide
marketer of brand-name houseware, healthcare/home environment and personal
care consumer products, today reported results for the three month period
ended May 31, 2013 (“First Quarter of Fiscal Year 2014”).

Gerald J. Rubin, Chairman, Chief Executive Officer and President, commenting
on the Company's fiscal year 2014 first quarter results, stated, “We are off
to a solid start in fiscal year 2014. Growth in our Housewares and
Healthcare/Home Environment segments led to a net sales revenue increase for
the Company, and we managed expenses well to deliver a 6.5% increase in
adjusted EBITDA (EBITDA without non-cash asset impairment charges and non-cash
share-based compensation) and a 10.8% increase in adjusted diluted EPS
(diluted earnings per share without non-cash asset impairment charges). We
continue to focus on innovation and are excited about our upcoming product
launches in the baking and food storage categories in our Housewares segment
and in the water filtration portion of our Healthcare/Home Environment
segment. Our balance sheet remains strong and provides us with excellent
flexibility to pursue our growth strategies. We remain comfortable with our
outlook and in our ability to deliver on the objectives we have set for
ourselves this year.”

First Quarter of Fiscal Year 2014 Consolidated Operating Results

  * Net sales revenue increased 1.4% to $304.5 million compared to $300.2
    million in the first quarter of fiscal year 2013.
  * Gross profit margin was 39.5% compared to 40.4% for the same period last
    year, reflecting increased promotional program costs, the effect of
    foreign currency exchange rates and product cost increases across all
    segments.
  * Selling, general and administrative expense was 28.7% as a percent of net
    sales compared to 30.0% for the same period last year, a decrease of 1.3
    percentage points. The decrease primarily reflects lower outbound freight
    costs, third party transition service expenses related to the PUR
    acquisition incurred last year, but not repeated this year, reduced
    advertising costs, a gain from a litigation settlement and the favorable
    revaluation impact of foreign currency exchange rate fluctuations,
    partially offset by higher incentive compensation costs.
  * Operating income was $20.6 million, which includes the impact of $12.05
    million in non-cash asset impairment charges related to certain trademarks
    in the Company’s Personal Care segment, compared to operating income of
    $31.1 million in the same period last year.
  * Net income was $14.4 million, or $0.45 per fully diluted share on 32.2
    million weighted average shares outstanding, which compares to net income
    in the first quarter of fiscal year 2013 of $23.5 million, or $0.74 per
    fully diluted share on 31.8 million weighted average shares outstanding.
  * Adjusted operating income (operating income without non-cash asset
    impairment charges) was $32.7 million compared to $31.1 million for the
    same period last year, an increase of 4.9%.
  * Adjusted income (net income without non-cash asset impairment charges) was
    $26.4 million, or $0.82 per fully diluted share, compared to $23.5
    million, or $0.74 per fully diluted share, in the first quarter of fiscal
    year 2013. This represents an increase in adjusted income of 12.6% and in
    adjusted diluted EPS of 10.8%.
  * Adjusted EBITDA was $44.6 million compared to $41.8 million in the same
    period last year, an increase of 6.5%.

Balance Sheet Highlights

  * Cash and equivalents totaled $12.1 million compared to $20.9 million at
    May 31, 2012.
  * Total short and long-term debt declined by $111.2 million to $224.8
    million compared to $336.0 million at May 31, 2012.
  * Accounts receivables turnover was 61 days at May 31, 2013, which is flat
    with the same period last year.
  * Inventory was $288.4 million compared to $260.0 million at May 31, 2012,
    and primarily reflects the inclusion of PUR inventory, which had not yet
    been purchased at the same time last year, a build-up of PUR inventory in
    connection with the relocation of production to a new manufacturer, higher
    insect control inventory due to a cool spring season and higher Personal
    Care appliance inventory. The Company remains comfortable with the
    composition of its inventory at quarter end.

Fiscal Year 2014 Annual Outlook

For fiscal year 2014, the Company expects net sales revenue in the range of
$1.29 billion to $1.32 billion, and GAAP diluted EPS in the range of $3.13 to
$3.23, which includes the non-cash asset impairment charges of $0.37 per share
recorded in the first quarter of fiscal year 2014. The Company expects
adjusted diluted EPS to be in the range of $3.50 to $3.60, which is consistent
with the Company’s previous guidance. The earnings guidance reflects the
negative impact of the difficult retail environment, a conservative approach
to the cold/cough/flu season, product cost increases across all segments and
an increase in non-cash compensation expense for the Company’s CEO. The
Company expects capital expenditures for fiscal year 2014 to be in the range
of $40 million to $45 million, with approximately $33 million related to the
completion of the Company’s new 1.3 million square foot distribution center in
Olive Branch, Mississippi.

Conference Call and Webcast

The Company will conduct a teleconference in conjunction with today's earnings
release. The teleconference begins at 4:45 pm Eastern Time today, Tuesday,
July 9, 2013. Institutional investors and analysts interested in participating
in the call are invited to dial (888) 510-1765. The conference call will also
be available to interested parties through a live webcast at www.hotus.com.
Please visit the website and select the “Investor Relations” link at least 15
minutes prior to the start of the call to register and download any necessary
software.

A telephone replay of the call will be available until 11:59 pm Eastern Time
on July 16, 2013, by dialing (877) 870-5176 (domestic) or (858) 384-5517
(international) and entering the conference replay number: 8728656. Please
note participants must enter the conference identification number in order to
access the replay.

About Helen of Troy Limited:

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®, Good Grips®, Soft Works®, OXO tot® and OXO
Steel®; Healthcare/Home Environment: Vicks®, Braun®, Honeywell®, PUR®,
Febreze®, Stinger®, Duracraft® and SoftHeat®; and Personal Care: Revlon®,
Vidal Sassoon®, Dr. Scholl's®, Pro Beauty Tools®, Sure®, Pert®, Infusium23®,
Brut®, Ammens®, Hot Tools®, Bed Head®, Karina®, Ogilvie® and Gold 'N Hot®. The
Honeywell® trademark is used under license from Honeywell International Inc.
The Vicks®, Braun®, Febreze® and Vidal Sassoon® trademarks are used under
license from The Procter & Gamble Company. The Revlon® trademark is used under
license from Revlon Consumer Products Corporation. The Bed Head® trademark is
used under license from Unilever PLC. The Dr. Scholl's® trademark is used
under license from MSD Consumer Care, Inc.

For in-depth information about Helen of Troy, please visit www.hotus.com.

Non-GAAP Financial Measures:

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 adjusted operating income, adjusted income, adjusted diluted
EPS, EBITDA and adjusted EBITDA, 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.

Forward Looking Statements:

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 Form 10-K for the year ended February 28,
2013 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, delays in construction of the Company’s
new distribution facility or difficulties encountered during the transition to
the new facility could interrupt the Company’s logistical systems and cause
shipping disruptions, 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 debt 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)
                    
                   Quarters ended
                   May 31, 2013                                                        May 31, 2012
                   As Reported                 Adjustments     Adjusted                As Reported                 Adjustments     Adjusted
                   (GAAP)                        (1)           (non-GAAP)(1)(2)        (GAAP)                         (1)          (non-GAAP)(1)(2)
Sales revenue,       304,516       100.0 %       -               304,516   100.0 %       300,211       100.0 %        -              300,211       100.0 %
net
Cost of goods        184,351       60.5  %       -               184,351   60.5  %       179,063       59.6  %        -              179,063       59.6  %
sold
Gross profit         120,165       39.5  %       -               120,165   39.5  %       121,148       40.4  %        -              121,148       40.4  %
                                                                                                                                                    
Selling,
general and          87,490        28.7  %       -               87,490    28.7  %       90,000        30.0  %        -              90,000        30.0  %
administrative
expense
Asset
impairment           12,049        4.0   %       (12,049 )       -         0.0   %       -             0.0   %        -              -             0.0   %
charges
Operating            20,626        6.8   %       12,049          32,675    10.7  %       31,148        10.4  %        -              31,148        10.4  %
income
                                                                                                                                                    
Other income
(expense):
Nonoperating         84            0.0   %       -               84        0.0   %       23            0.0   %        -              23            0.0   %
income, net
Interest             (2,942  )     -1.0  %       -               (2,942  ) -1.0  %       (3,312  )     -1.1  %        -              (3,312  )     -1.1  %
Expense
Total other          (2,858  )     -0.9  %       -               (2,858  ) -0.9  %       (3,289  )     -1.1  %        -              (3,289  )     -1.1  %
expense
Income before        17,768        5.8   %       12,049          29,817    9.8   %       27,859        9.3   %        -              27,859        9.3   %
income taxes
                                                                                                                                                    
Income tax           3,376         1.1   %       15              3,391     1.1   %       4,387         1.5   %        -              4,387         1.5   %
expense
Net income           14,392        4.7   %       12,034          26,426    8.7   %       23,472        7.8   %        -              23,472        7.8   %
                                                                                                                                                    
Diluted
earnings per       $ 0.45                      $ 0.37          $ 0.82                  $ 0.74                      $  -            $ 0.74
share
                                                                                                                                                    
Weighted
average shares       32,180                      32,180          32,180                  31,840                       31,840         31,840
of common
stock
used in
computing
diluted
earnings per
share
                                                                                                                                                    

                                                                                 
HELEN OF TROY LIMITED AND SUBSIDIARIES
                                                                                   
Net Sales Revenue by Segment
(unaudited)
(in thousands)
                                                                                   
                                                                                   
                Three Months Ended May                                % of Sales Revenue,
                31,                                                   net
                2013          2012          $ Change       %          2013        2012
                                                           Change
                                                                                   
Sales
revenue by
segment,
net
Housewares      $ 63,530      $ 60,249        3,281        5.4  %     20.9  %     20.1  %
Healthcare
/ Home            125,602       122,410       3,192        2.6  %     41.2  %     40.8  %
Environment
Personal          115,384       117,552       (2,168 )     -1.8 %     37.9  %     39.2  %
Care
Total sales
revenue,        $ 304,516     $ 300,211       4,305        1.4  %     100.0 %     100.0 %
net
                                                                                         

                                               
HELEN OF TROY LIMITED AND SUBSIDIARIES
Selected Consolidated Balance Sheet Information
(unaudited)
(in thousands)
                                                 
                                5/31/2013       5/31/2012
                                                 
Cash and cash equivalents       $ 12,130        $ 20,880
Receivables                       206,021         188,264
Inventory                         288,382         259,989
Total assets, current             539,547         491,950
Total assets                      1,460,561       1,433,278
Total liabilities, current        270,863         348,747
Total long-term liabilities       245,376         257,061
Stockholders' equity              944,322         827,470
                                                   

                                                               
SELECTED OTHER DATA (in thousands) (unaudited)
Reconciliation of Non-GAAP Financial Measure - EBITDA (Earnings Before
Interest, Taxes, Depreciation and Amortization) and Adjusted EBITDA
                                                                   
                                                                   
                                         Three Months Ended May 31,
                                         2013                     2012
                                                                   
Net income                               $   14,392               $   23,472
Interest expense, net                        2,920                    3,285
Income tax expense                           3,376                    4,387
Depreciation and amortization                8,447                    9,100
                                                                   
EBITDA (Earnings before
interest, taxes, depreciation            $   29,135               $   40,244
and amortization)
                                                                   
Adjusted EBITDA:
                                                                   
EBITDA, as calculated above              $   29,135               $   40,244
                                                                   
Add: Non-cash asset impairment               12,049                   -
charges ^(1) (2)
Non-cash share-based                         3,378                    1,602
compensation ^ (2) (3)
                                                                   
Adjusted EBITDA                          $   44,562               $   41,846
                                                                       

 
Reconciliation of Fiscal Year 2014 Reported Diluted Earnings Per Share (EPS)
to Adjusted Diluted EPS to Exclude
Non-Cash Asset Impairment Charges
                                                                
                                                                   
                                              Guidance for        Guidance for
                                              the                 the
                           Quarter            Nine Months         Fiscal Year
                           Ended              Ended               Ended
                           May 31, 2013       February 28,        February 28,
                                              2014                2014
Diluted EPS, as            $0.45              $2.68 - $2.78       $3.13 -
reported (GAAP)                                                   $3.23
                                                                   
Non-cash asset
impairment charges         $0.37              -                   $0.37
(1)
Adjusted Diluted EPS       $0.82              $2.68 - $2.78       $3.50 -
(non-GAAP) (2)                                                    $3.60
                                                                   

HELEN OF TROY LIMITED AND SUBSIDIARIES
Notes to Press Release

(1) Adjustments relate to items that are excluded from the “As Reported”
results to arrive at the “Adjusted” results for the quarters ended May 31,
2013. There were no comparable adjustments for the quarter ended May 31, 2012.
For the quarter ended May 31, 2013, the adjustments consist of non-cash asset
impairment charges of $12.05 million ($12.03 million after tax) as a result of
our annual evaluation of goodwill and indefinite-lived intangible assets for
impairment during the first quarter of fiscal year 2014. The charge relates to
certain trademarks in our Personal Care segment, which were written down to
their estimated fair value, determined on the basis of future discounted cash
flows using the relief from royalty valuation method.

(2) This press release contains non-GAAP financial measures. Adjusted
operating income, adjusted income, adjusted diluted EPS, EBITDA and adjusted
EBITDA (“Non-GAAP measures”) that are discussed in the accompanying press
release or in the preceding tables are considered non-GAAP financial
information as contemplated by SEC Regulation G, Rule 100. Accordingly, we are
providing the preceding tables that reconcile these measures to their
corresponding GAAP based measures presented in our Consolidated Condensed
Statements of Income in the accompanying tables 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.

(3) Adjustment consists of non-cash share-based compensation expense
associated with share based awards outstanding under two expired and three
active share-based compensation plans. These awards consist of stock options
granted to certain officers, employees and new hires, restricted stock grants
to certain members of the Company’s Board of Directors and performance based
restricted stock awards and units granted to our Chief Executive Officer under
the terms of his employment agreement.

Contact:

Helen of Troy Limited
John Boomer, 915-225-8050
Senior Vice President
or
Investors:
ICR, Inc.
Allison Malkin / Anne Rakunas
203-682-8200 / 310-954-1113
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