Helen Of Troy Ltd 8-K, filed Apr 19, 2023
Helen Of Troy Ltd (HELE)
8-K
2023-04-19
For: 2023-04-19
View Original
Added on
April 06, 2026
About this 8-K
Helen Of Troy Ltd filed this 8-K on April 19, 2023.
Items reported
- Item 2.02: Financial results
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
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) April 19, 2023
(Exact name of registrant as specified in its charter)
Commission File Number: 001-14669
| (State or other jurisdiction | (IRS Employer | |||||||
| of incorporation) | Identification No.) | |||||||
(Address of principal executive offices)
(Registrant's United States mailing address)
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
Item 7.01 Regulation FD Disclosure.
In its Form 10-Q for the quarterly period ended November 30, 2022, Helen of Troy Limited (the “Company”, “our”, “we” or “us”) announced that it made changes to the structure of the organization, during the fourth quarter of fiscal 2023, in connection with its global restructuring plan, Project Pegasus, that resulted in the previous Health & Wellness and Beauty operating segments being combined into a single reportable segment, which is referred to as “Beauty & Wellness.” In connection with these organizational structure changes, corresponding changes were made to how our business is managed, how results are reported internally and how our CEO, our chief operating decision maker, assesses performance and allocates resources. We believe that these changes better align internal resources and external go to market activities in order to create a more efficient and effective organizational structure. There were no changes to the products or brands included within our Home & Outdoor reportable segment as part of these organizational changes nor to the way in which our CEO assesses performance and allocates resources for the Home & Outdoor segment. As a result of these changes, our disclosures in our forthcoming fiscal 2023 Annual Report on Form 10-K will reflect two reportable segments, Home & Outdoor and Beauty & Wellness. Comparative prior period segment information in our fiscal 2023 Annual Report on Form 10-K will be recast to conform to this change in our reportable segments. Our external reportable segments will continue to align with our internal reporting to enable users of the financial statements to better understand our performance, better assess our future net cash flows, and
make more informed judgements about the Company as a whole. Exhibit 99.1 to this Current Report on Form 8-K provides a summary of the Company's historical segment results recast for the new reporting structure. The information contained in Exhibit 99.1 is being furnished in order to provide the financial community with historical financial information that is presented on a basis consistent with the new reporting structure. This historical segment financial information is also provided on the Investor Relations Page of our website at: http://www.helenoftroy.com. The information contained on this website is not included as a part of, or incorporated by reference into, this report.
Exhibit 99.1 includes or refers to certain information that the Company believes is non-GAAP Financial Information as contemplated by SEC Regulation G, Rule 100. Exhibit 99.1 contains tables that reconcile these measures to their corresponding GAAP based measures presented in the Company’s Consolidated Statements of Income. 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.
The information in this Item 2.02 and Item 7.01 of this Form 8-K and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, or any proxy statement or report or other document we may file with the SEC, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit Number | Description | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
2
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: April 19, 2023 | /s/ Matthew J. Osberg | ||||
| Matthew J. Osberg | |||||
| Chief Financial Officer, Principal Financial Officer and Principal Accounting Officer | |||||
3
Exhibit 99.1
HISTORICAL SEGMENT FINANCIAL INFORMATION
Fiscal 2023 Consolidated and Segment Net Sales Revenue
(Unaudited) (in thousands)
| Three Months Ended May 31, | |||||||||||||||||||||||||||||
| Home & Outdoor | Beauty & Wellness | Total | |||||||||||||||||||||||||||
| Fiscal 2022 sales revenue, net | $ | 193,644 | $ | 347,579 | $ | 541,223 | |||||||||||||||||||||||
| Organic business (1) | (8,604) | (75,503) | (84,107) | ||||||||||||||||||||||||||
| Impact of foreign currency | (2,024) | (1,507) | (3,531) | ||||||||||||||||||||||||||
| Acquisition (2) (3) | 51,247 | 3,246 | 54,493 | ||||||||||||||||||||||||||
| Change in sales revenue, net | 40,619 | (73,764) | (33,145) | ||||||||||||||||||||||||||
| Fiscal 2023 sales revenue, net | $ | 234,263 | $ | 273,815 | $ | 508,078 | |||||||||||||||||||||||
| Total net sales revenue growth (decline) | 21.0 | % | (21.2) | % | (6.1) | % | |||||||||||||||||||||||
| Organic business | (4.4) | % | (21.7) | % | (15.5) | % | |||||||||||||||||||||||
| Impact of foreign currency | (1.0) | % | (0.4) | % | (0.7) | % | |||||||||||||||||||||||
| Acquisition | 26.5 | % | 0.9 | % | 10.1 | % | |||||||||||||||||||||||
| Three Months Ended August 31, | |||||||||||||||||||||||||||||
| Home & Outdoor | Beauty & Wellness | Total | |||||||||||||||||||||||||||
| Fiscal 2022 sales revenue, net | $ | 215,218 | $ | 260,010 | $ | 475,228 | |||||||||||||||||||||||
| Organic business (1) | (19,320) | 12,093 | (7,227) | ||||||||||||||||||||||||||
| Impact of foreign currency | (2,735) | (1,469) | (4,204) | ||||||||||||||||||||||||||
| Acquisition (2) (3) | 47,396 | 10,207 | 57,603 | ||||||||||||||||||||||||||
| Change in sales revenue, net | 25,341 | 20,831 | 46,172 | ||||||||||||||||||||||||||
| Fiscal 2023 sales revenue, net | $ | 240,559 | $ | 280,841 | $ | 521,400 | |||||||||||||||||||||||
| Total net sales revenue growth (decline) | 11.8 | % | 8.0 | % | 9.7 | % | |||||||||||||||||||||||
| Organic business | (9.0) | % | 4.7 | % | (1.5) | % | |||||||||||||||||||||||
| Impact of foreign currency | (1.3) | % | (0.6) | % | (0.9) | % | |||||||||||||||||||||||
| Acquisition | 22.0 | % | 3.9 | % | 12.1 | % | |||||||||||||||||||||||
| Three Months Ended November 30, | |||||||||||||||||||||||||||||
| Home & Outdoor | Beauty & Wellness | Total | |||||||||||||||||||||||||||
| Fiscal 2022 sales revenue, net | $ | 246,135 | $ | 378,749 | $ | 624,884 | |||||||||||||||||||||||
| Organic business (1) | (57,262) | (58,288) | (115,550) | ||||||||||||||||||||||||||
| Impact of foreign currency | (3,191) | (3,883) | (7,074) | ||||||||||||||||||||||||||
| Acquisition (2) (3) | 43,255 | 13,091 | 56,346 | ||||||||||||||||||||||||||
| Change in sales revenue, net | (17,198) | (49,080) | (66,278) | ||||||||||||||||||||||||||
| Fiscal 2023 sales revenue, net | $ | 228,937 | $ | 329,669 | $ | 558,606 | |||||||||||||||||||||||
| Total net sales revenue growth (decline) | (7.0) | % | (13.0) | % | (10.6) | % | |||||||||||||||||||||||
| Organic business | (23.3) | % | (15.4) | % | (18.5) | % | |||||||||||||||||||||||
| Impact of foreign currency | (1.3) | % | (1.0) | % | (1.1) | % | |||||||||||||||||||||||
| Acquisition | 17.6 | % | 3.5 | % | 9.0 | % | |||||||||||||||||||||||
1
Fiscal 2022 Consolidated and Segment Net Sales Revenue
(Unaudited) (in thousands)
| Three Months Ended May 31, | |||||||||||||||||||||||||||||
| Home & Outdoor | Beauty & Wellness | Total | |||||||||||||||||||||||||||
| Fiscal 2021 sales revenue, net | $ | 140,628 | $ | 280,207 | $ | 420,835 | |||||||||||||||||||||||
| Organic business (1) | 52,127 | 62,755 | 114,882 | ||||||||||||||||||||||||||
| Impact of foreign currency | 889 | 4,617 | 5,506 | ||||||||||||||||||||||||||
| Change in sales revenue, net | 53,016 | 67,372 | 120,388 | ||||||||||||||||||||||||||
| Fiscal 2022 sales revenue, net | $ | 193,644 | $ | 347,579 | $ | 541,223 | |||||||||||||||||||||||
| Total net sales revenue growth | 37.7 | % | 24.0 | % | 28.6 | % | |||||||||||||||||||||||
| Organic business | 37.1 | % | 22.4 | % | 27.3 | % | |||||||||||||||||||||||
| Impact of foreign currency | 0.6 | % | 1.6 | % | 1.3 | % | |||||||||||||||||||||||
| Three Months Ended August 31, | |||||||||||||||||||||||||||||
| Home & Outdoor | Beauty & Wellness | Total | |||||||||||||||||||||||||||
| Fiscal 2021 sales revenue, net | $ | 201,863 | $ | 328,989 | $ | 530,852 | |||||||||||||||||||||||
| Organic business (1) | 13,084 | (70,765) | (57,681) | ||||||||||||||||||||||||||
| Impact of foreign currency | 271 | 1,786 | 2,057 | ||||||||||||||||||||||||||
| Change in sales revenue, net | 13,355 | (68,979) | (55,624) | ||||||||||||||||||||||||||
| Fiscal 2022 sales revenue, net | $ | 215,218 | $ | 260,010 | $ | 475,228 | |||||||||||||||||||||||
| Total net sales revenue growth (decline) | 6.6 | % | (21.0) | % | (10.5) | % | |||||||||||||||||||||||
| Organic business | 6.5 | % | (21.5) | % | (10.9) | % | |||||||||||||||||||||||
| Impact of foreign currency | 0.1 | % | 0.5 | % | 0.4 | % | |||||||||||||||||||||||
| Three Months Ended November 30, | |||||||||||||||||||||||||||||
| Home & Outdoor | Beauty & Wellness | Total | |||||||||||||||||||||||||||
| Fiscal 2021 sales revenue, net | $ | 222,400 | $ | 415,337 | $ | 637,737 | |||||||||||||||||||||||
| Organic business (1) | 23,601 | (37,652) | (14,051) | ||||||||||||||||||||||||||
| Impact of foreign currency | 134 | 1,064 | 1,198 | ||||||||||||||||||||||||||
| Change in sales revenue, net | 23,735 | (36,588) | (12,853) | ||||||||||||||||||||||||||
| Fiscal 2022 sales revenue, net | $ | 246,135 | $ | 378,749 | $ | 624,884 | |||||||||||||||||||||||
| Total net sales revenue growth (decline) | 10.7 | % | (8.8) | % | (2.0) | % | |||||||||||||||||||||||
| Organic business | 10.6 | % | (9.1) | % | (2.2) | % | |||||||||||||||||||||||
| Impact of foreign currency | 0.1 | % | 0.3 | % | 0.2 | % | |||||||||||||||||||||||
2
Fiscal 2022 Consolidated and Segment Net Sales Revenue
(Unaudited) (in thousands)
| Three Months Ended Last Day of February, | |||||||||||||||||||||||||||||
| Home & Outdoor | Beauty & Wellness | Total | |||||||||||||||||||||||||||
| Fiscal 2021 sales revenue, net | $ | 162,463 | $ | 346,912 | $ | 509,375 | |||||||||||||||||||||||
| Organic business (1) | 24,683 | 25,522 | 50,205 | ||||||||||||||||||||||||||
| Impact of foreign currency | (672) | (1,261) | (1,933) | ||||||||||||||||||||||||||
| Acquisition (2) | 24,373 | — | 24,373 | ||||||||||||||||||||||||||
| Change in sales revenue, net | 48,384 | 24,261 | 72,645 | ||||||||||||||||||||||||||
| Fiscal 2022 sales revenue, net | $ | 210,847 | $ | 371,173 | $ | 582,020 | |||||||||||||||||||||||
| Total net sales revenue growth (decline) | 29.8 | % | 7.0 | % | 14.3 | % | |||||||||||||||||||||||
| Organic business | 15.2 | % | 7.4 | % | 9.9 | % | |||||||||||||||||||||||
| Impact of foreign currency | (0.4) | % | (0.4) | % | (0.4) | % | |||||||||||||||||||||||
| Acquisition | 15.0 | % | — | % | 4.8 | % | |||||||||||||||||||||||
| Fiscal Year Ended Last Day of February, | |||||||||||||||||||||||||||||
| Home & Outdoor | Beauty & Wellness | Total | |||||||||||||||||||||||||||
| Fiscal 2021 sales revenue, net | $ | 727,354 | $ | 1,371,445 | $ | 2,098,799 | |||||||||||||||||||||||
| Organic business (1) | 113,495 | (20,140) | 93,355 | ||||||||||||||||||||||||||
| Impact of foreign currency | 622 | 6,206 | 6,828 | ||||||||||||||||||||||||||
| Acquisition (2) | 24,373 | — | 24,373 | ||||||||||||||||||||||||||
| Change in sales revenue, net | 138,490 | (13,934) | 124,556 | ||||||||||||||||||||||||||
| Fiscal 2022 sales revenue, net | $ | 865,844 | $ | 1,357,511 | $ | 2,223,355 | |||||||||||||||||||||||
| Total net sales revenue growth (decline) | 19.0 | % | (1.0) | % | 5.9 | % | |||||||||||||||||||||||
| Organic business | 15.6 | % | (1.5) | % | 4.4 | % | |||||||||||||||||||||||
| Impact of foreign currency | 0.1 | % | 0.5 | % | 0.3 | % | |||||||||||||||||||||||
| Acquisition | 3.4 | % | — | % | 1.2 | % | |||||||||||||||||||||||
3
Fiscal 2023 Consolidated and Segment Net Sales from Core and Non-Core Business (4)
(Unaudited) (in thousands)
| Three Months Ended May 31, | |||||||||||||||||||||||||||||
| Home & Outdoor | Beauty & Wellness | Total | |||||||||||||||||||||||||||
| Fiscal 2022 sales revenue, net | $ | 193,644 | $ | 347,579 | $ | 541,223 | |||||||||||||||||||||||
| Core business | 40,619 | (53,645) | (13,026) | ||||||||||||||||||||||||||
| Non-Core business (Personal Care) | — | (20,119) | (20,119) | ||||||||||||||||||||||||||
| Change in sales revenue, net | 40,619 | (73,764) | (33,145) | ||||||||||||||||||||||||||
| Fiscal 2023 sales revenue, net | $ | 234,263 | $ | 273,815 | $ | 508,078 | |||||||||||||||||||||||
| Total net sales revenue growth (decline) | 21.0 | % | (21.2) | % | (6.1) | % | |||||||||||||||||||||||
| Core business | 21.0 | % | (15.4) | % | (2.4) | % | |||||||||||||||||||||||
| Non-Core business (Personal Care) | — | % | (5.8) | % | (3.7) | % | |||||||||||||||||||||||
| Three Months Ended August 31, | |||||||||||||||||||||||||||||
| Home & Outdoor | Beauty & Wellness | Total | |||||||||||||||||||||||||||
| Fiscal 2022 sales revenue, net | $ | 215,218 | $ | 260,010 | $ | 475,228 | |||||||||||||||||||||||
| Core business | 25,341 | 26,574 | 51,915 | ||||||||||||||||||||||||||
| Non-Core business (Personal Care) | — | (5,743) | (5,743) | ||||||||||||||||||||||||||
| Change in sales revenue, net | 25,341 | 20,831 | 46,172 | ||||||||||||||||||||||||||
| Fiscal 2023 sales revenue, net | $ | 240,559 | $ | 280,841 | $ | 521,400 | |||||||||||||||||||||||
| Total net sales revenue growth (decline) | 11.8 | % | 8.0 | % | 9.7 | % | |||||||||||||||||||||||
| Core business | 11.8 | % | 10.2 | % | 10.9 | % | |||||||||||||||||||||||
| Non-Core business (Personal Care) | — | % | (2.2) | % | (1.2) | % | |||||||||||||||||||||||
| Three Months Ended November 30, | |||||||||||||||||||||||||||||
| Home & Outdoor | Beauty & Wellness | Total | |||||||||||||||||||||||||||
| Fiscal 2022 sales revenue, net | $ | 246,135 | $ | 378,749 | $ | 624,884 | |||||||||||||||||||||||
| Core business | (17,198) | (44,705) | (61,903) | ||||||||||||||||||||||||||
| Non-Core business (Personal Care) | — | (4,375) | (4,375) | ||||||||||||||||||||||||||
| Change in sales revenue, net | (17,198) | (49,080) | (66,278) | ||||||||||||||||||||||||||
| Fiscal 2023 sales revenue, net | $ | 228,937 | $ | 329,669 | $ | 558,606 | |||||||||||||||||||||||
| Total net sales revenue growth (decline) | (7.0) | % | (13.0) | % | (10.6) | % | |||||||||||||||||||||||
| Core business | (7.0) | % | (11.8) | % | (9.9) | % | |||||||||||||||||||||||
| Non-Core business (Personal Care) | — | % | (1.2) | % | (0.7) | % | |||||||||||||||||||||||
4
Fiscal 2022 Consolidated and Segment Net Sales from Core and Non-Core Business (4)
(Unaudited) (in thousands)
| Three Months Ended May 31, | |||||||||||||||||||||||||||||
| Home & Outdoor | Beauty & Wellness | Total | |||||||||||||||||||||||||||
| Fiscal 2021 sales revenue, net | $ | 140,628 | $ | 280,207 | $ | 420,835 | |||||||||||||||||||||||
| Core business | 53,016 | 68,569 | 121,585 | ||||||||||||||||||||||||||
| Non-Core business (Personal Care) | — | (1,197) | (1,197) | ||||||||||||||||||||||||||
| Change in sales revenue, net | 53,016 | 67,372 | 120,388 | ||||||||||||||||||||||||||
| Fiscal 2022 sales revenue, net | $ | 193,644 | $ | 347,579 | $ | 541,223 | |||||||||||||||||||||||
| Total net sales revenue growth (decline) | 37.7 | % | 24.0 | % | 28.6 | % | |||||||||||||||||||||||
| Core business | 37.7 | % | 24.5 | % | 28.9 | % | |||||||||||||||||||||||
| Non-Core business (Personal Care) | — | % | (0.4) | % | (0.3) | % | |||||||||||||||||||||||
| Three Months Ended August 31, | |||||||||||||||||||||||||||||
| Home & Outdoor | Beauty & Wellness | Total | |||||||||||||||||||||||||||
| Fiscal 2021 sales revenue, net | $ | 201,863 | $ | 328,989 | $ | 530,852 | |||||||||||||||||||||||
| Core business | 13,355 | (53,580) | (40,225) | ||||||||||||||||||||||||||
| Non-Core business (Personal Care) | — | (15,399) | (15,399) | ||||||||||||||||||||||||||
| Change in sales revenue, net | 13,355 | (68,979) | (55,624) | ||||||||||||||||||||||||||
| Fiscal 2022 sales revenue, net | $ | 215,218 | $ | 260,010 | $ | 475,228 | |||||||||||||||||||||||
| Total net sales revenue growth (decline) | 6.6 | % | (21.0) | % | (10.5) | % | |||||||||||||||||||||||
| Core business | 6.6 | % | (16.3) | % | (7.6) | % | |||||||||||||||||||||||
| Non-Core business (Personal Care) | — | % | (4.7) | % | (2.9) | % | |||||||||||||||||||||||
| Three Months Ended November 30, | |||||||||||||||||||||||||||||
| Home & Outdoor | Beauty & Wellness | Total | |||||||||||||||||||||||||||
| Fiscal 2021 sales revenue, net | $ | 222,400 | $ | 415,337 | $ | 637,737 | |||||||||||||||||||||||
| Core business | 23,735 | (20,992) | 2,743 | ||||||||||||||||||||||||||
| Non-Core business (Personal Care) | — | (15,596) | (15,596) | ||||||||||||||||||||||||||
| Change in sales revenue, net | 23,735 | (36,588) | (12,853) | ||||||||||||||||||||||||||
| Fiscal 2022 sales revenue, net | $ | 246,135 | $ | 378,749 | $ | 624,884 | |||||||||||||||||||||||
| Total net sales revenue growth (decline) | 10.7 | % | (8.8) | % | (2.0) | % | |||||||||||||||||||||||
| Core business | 10.7 | % | (5.1) | % | 0.4 | % | |||||||||||||||||||||||
| Non-Core business (Personal Care) | — | % | (3.8) | % | (2.4) | % | |||||||||||||||||||||||
5
Fiscal 2022 Consolidated and Segment Net Sales from Core and Non-Core Business (4)
(Unaudited) (in thousands)
| Three Months Ended Last Day of February, | |||||||||||||||||||||||||||||
| Home & Outdoor | Beauty & Wellness | Total | |||||||||||||||||||||||||||
| Fiscal 2021 sales revenue, net | $ | 162,463 | $ | 346,912 | $ | 509,375 | |||||||||||||||||||||||
| Core business | 48,384 | 36,299 | 84,683 | ||||||||||||||||||||||||||
| Non-Core business (Personal Care) | — | (12,038) | (12,038) | ||||||||||||||||||||||||||
| Change in sales revenue, net | 48,384 | 24,261 | 72,645 | ||||||||||||||||||||||||||
| Fiscal 2022 sales revenue, net | $ | 210,847 | $ | 371,173 | $ | 582,020 | |||||||||||||||||||||||
| Total net sales revenue growth (decline) | 29.8 | % | 7.0 | % | 14.3 | % | |||||||||||||||||||||||
| Core business | 29.8 | % | 10.5 | % | 16.6 | % | |||||||||||||||||||||||
| Non-Core business (Personal Care) | — | % | (3.5) | % | (2.4) | % | |||||||||||||||||||||||
| Fiscal Year Ended Last Day of February, | |||||||||||||||||||||||||||||
| Home & Outdoor | Beauty & Wellness | Total | |||||||||||||||||||||||||||
| Fiscal 2021 sales revenue, net | $ | 727,354 | $ | 1,371,445 | $ | 2,098,799 | |||||||||||||||||||||||
| Core business | 138,490 | 30,296 | 168,786 | ||||||||||||||||||||||||||
| Non-Core business (Personal Care) | — | (44,230) | (44,230) | ||||||||||||||||||||||||||
| Change in sales revenue, net | 138,490 | (13,934) | 124,556 | ||||||||||||||||||||||||||
| Fiscal 2022 sales revenue, net | $ | 865,844 | $ | 1,357,511 | $ | 2,223,355 | |||||||||||||||||||||||
| Total net sales revenue growth (decline) | 19.0 | % | (1.0) | % | 5.9 | % | |||||||||||||||||||||||
| Core business | 19.0 | % | 2.2 | % | 8.0 | % | |||||||||||||||||||||||
| Non-Core business (Personal Care) | — | % | (3.2) | % | (2.1) | % | |||||||||||||||||||||||
6
Reconciliation of Non-GAAP Financial Measures – Fiscal 2023 GAAP Operating Income and Operating Margin to Adjusted Operating Income and Adjusted Operating Margin (Non-GAAP) (5)
(Unaudited) (in thousands)
| Three Months Ended May 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Home & Outdoor (2) | Beauty & Wellness (3) | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating income, as reported (GAAP) | $ | 29,793 | 12.7 | % | $ | 4,146 | 1.5 | % | $ | 33,939 | 6.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition-related expenses | 78 | — | % | 2,676 | 1.0 | % | 2,754 | 0.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| EPA compliance costs | — | — | % | 11,644 | 4.3 | % | 11,644 | 2.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring charges | — | — | % | 2 | — | % | 2 | — | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Subtotal | 29,871 | 12.8 | % | 18,468 | 6.7 | % | 48,339 | 9.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of intangible assets | 1,746 | 0.7 | % | 2,615 | 1.0 | % | 4,361 | 0.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-cash share-based compensation | 5,998 | 2.6 | % | 10,621 | 3.9 | % | 16,619 | 3.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted operating income (non-GAAP) | $ | 37,615 | 16.1 | % | $ | 31,704 | 11.6 | % | $ | 69,319 | 13.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended August 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Home & Outdoor (2) | Beauty & Wellness (3) | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating income, as reported (GAAP) | $ | 42,082 | 17.5 | % | $ | 4,864 | 1.7 | % | $ | 46,946 | 9.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition-related expenses | 41 | — | % | (11) | — | % | 30 | — | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| EPA compliance costs | — | — | % | 8,354 | 3.0 | % | 8,354 | 1.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring charges | 472 | 0.2 | % | 4,304 | 1.5 | % | 4,776 | 0.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Subtotal | 42,595 | 17.7 | % | 17,511 | 6.2 | % | 60,106 | 11.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of intangible assets | 1,753 | 0.7 | % | 2,896 | 1.0 | % | 4,649 | 0.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-cash share-based compensation | 2,640 | 1.1 | % | 4,855 | 1.7 | % | 7,495 | 1.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted operating income (non-GAAP) | $ | 46,988 | 19.5 | % | $ | 25,262 | 9.0 | % | $ | 72,250 | 13.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended November 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Home & Outdoor (2) | Beauty & Wellness (3) | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating income, as reported (GAAP) | $ | 30,847 | 13.5 | % | $ | 46,346 | 14.1 | % | $ | 77,193 | 13.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition-related expenses | (2) | — | % | 2 | — | % | — | — | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| EPA compliance costs | — | — | % | 2,103 | 0.6 | % | 2,103 | 0.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain from insurance recoveries | — | — | % | (9,676) | (2.9) | % | (9,676) | (1.7) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring charges | 5,090 | 2.2 | % | 5,373 | 1.6 | % | 10,463 | 1.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Subtotal | 35,935 | 15.7 | % | 44,148 | 13.4 | % | 80,083 | 14.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of intangible assets | 1,756 | 0.8 | % | 2,896 | 0.9 | % | 4,652 | 0.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-cash share-based compensation | 2,169 | 0.9 | % | 5,772 | 1.8 | % | 7,941 | 1.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted operating income (non-GAAP) | $ | 39,860 | 17.4 | % | $ | 52,816 | 16.0 | % | $ | 92,676 | 16.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||
7
Reconciliation of Non-GAAP Financial Measures – Fiscal 2022 GAAP Operating Income and Operating Margin to Adjusted Operating Income and Adjusted Operating Margin (Non-GAAP) (5)
(Unaudited) (in thousands)
| Three Months Ended May 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Home & Outdoor | Beauty & Wellness | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating income, as reported (GAAP) | $ | 27,143 | 14.0 | % | $ | 37,692 | 10.8 | % | $ | 64,835 | 12.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| EPA compliance costs | — | — | % | 13,112 | 3.8 | % | 13,112 | 2.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring charges | — | — | % | 6 | — | % | 6 | — | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Subtotal | 27,143 | 14.0 | % | 50,810 | 14.6 | % | 77,953 | 14.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of intangible assets | 518 | 0.3 | % | 2,465 | 0.7 | % | 2,983 | 0.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-cash share-based compensation | 5,551 | 2.9 | % | 8,469 | 2.4 | % | 14,020 | 2.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted operating income (non-GAAP) | $ | 33,212 | 17.2 | % | $ | 61,744 | 17.8 | % | $ | 94,956 | 17.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended August 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Home & Outdoor | Beauty & Wellness | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating income, as reported (GAAP) | $ | 41,921 | 19.5 | % | $ | 25,370 | 9.8 | % | $ | 67,291 | 14.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| EPA compliance costs | — | — | % | 2,960 | 1.1 | % | 2,960 | 0.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring charges | 369 | 0.2 | % | — | — | % | 369 | 0.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Subtotal | 42,290 | 19.6 | % | 28,330 | 10.9 | % | 70,620 | 14.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of intangible assets | 519 | 0.2 | % | 2,467 | 0.9 | % | 2,986 | 0.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-cash share-based compensation | 3,157 | 1.5 | % | 4,623 | 1.8 | % | 7,780 | 1.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted operating income (non-GAAP) | $ | 45,966 | 21.4 | % | $ | 35,420 | 13.6 | % | $ | 81,386 | 17.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended November 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Home & Outdoor | Beauty & Wellness | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating income, as reported (GAAP) | $ | 43,239 | 17.6 | % | $ | 46,801 | 12.4 | % | $ | 90,040 | 14.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition-related expenses | 1,605 | 0.7 | % | — | — | % | 1,605 | 0.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| EPA compliance costs | — | — | % | 4,926 | 1.3 | % | 4,926 | 0.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring charges | — | — | % | 5 | — | % | 5 | — | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Subtotal | 44,844 | 18.2 | % | 51,732 | 13.7 | % | 96,576 | 15.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of intangible assets | 525 | 0.2 | % | 2,469 | 0.7 | % | 2,994 | 0.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-cash share-based compensation | 2,339 | 1.0 | % | 4,210 | 1.1 | % | 6,549 | 1.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted operating income (non-GAAP) | $ | 47,708 | 19.4 | % | $ | 58,411 | 15.4 | % | $ | 106,119 | 17.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||
8
Reconciliation of Non-GAAP Financial Measures – Fiscal 2022 GAAP Operating Income and Operating Margin to Adjusted Operating Income and Adjusted Operating Margin (Non-GAAP) (5)
(Unaudited) (in thousands)
| Three Months Ended February 28, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Home & Outdoor (2) | Beauty & Wellness | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating income, as reported (GAAP) | $ | 22,622 | 10.7 | % | $ | 27,762 | 7.5 | % | $ | 50,384 | 8.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition-related expenses | 819 | 0.4 | % | — | — | % | 819 | 0.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| EPA compliance costs | — | — | % | 11,356 | 3.1 | % | 11,356 | 2.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Subtotal | 23,441 | 11.1 | % | 39,118 | 10.5 | % | 62,559 | 10.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of intangible assets | 1,329 | 0.6 | % | 2,472 | 0.7 | % | 3,801 | 0.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-cash share-based compensation | 2,765 | 1.3 | % | 3,504 | 0.9 | % | 6,269 | 1.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted operating income (non-GAAP) | $ | 27,535 | 13.1 | % | $ | 45,094 | 12.1 | % | $ | 72,629 | 12.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Fiscal Year Ended February 28, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Home & Outdoor (2) | Beauty & Wellness | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating income, as reported (GAAP) | $ | 134,925 | 15.6 | % | $ | 137,625 | 10.1 | % | $ | 272,550 | 12.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition-related expenses | 2,424 | 0.3 | % | — | — | % | 2,424 | 0.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| EPA compliance costs | — | — | % | 32,354 | 2.4 | % | 32,354 | 1.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring charges | 369 | — | % | 11 | — | % | 380 | — | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Subtotal | 137,718 | 15.9 | % | 169,990 | 12.5 | % | 307,708 | 13.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of intangible assets | 2,891 | 0.3 | % | 9,873 | 0.7 | % | 12,764 | 0.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-cash share-based compensation | 13,812 | 1.6 | % | 20,806 | 1.5 | % | 34,618 | 1.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted operating income (non-GAAP) | $ | 154,421 | 17.8 | % | $ | 200,669 | 14.8 | % | $ | 355,090 | 16.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||
9
Reconciliation of Non-GAAP Financial Measures – Fiscal 2023 EBITDA
(Earnings Before Interest, Taxes, Depreciation and Amortization) and Adjusted EBITDA (5)
(Unaudited) (in thousands)
| Three Months Ended May 31, 2022 | |||||||||||||||||||||||||||||
| Home & Outdoor (2) | Beauty & Wellness (3) | Total | |||||||||||||||||||||||||||
| Operating income, as reported (GAAP) | $ | 29,793 | $ | 4,146 | $ | 33,939 | |||||||||||||||||||||||
| Depreciation and amortization | 4,495 | 6,003 | 10,498 | ||||||||||||||||||||||||||
| Non-operating income, net | — | 67 | 67 | ||||||||||||||||||||||||||
| EBITDA (non-GAAP) | 34,288 | 10,216 | 44,504 | ||||||||||||||||||||||||||
| Add: Acquisition-related expenses | 78 | 2,676 | 2,754 | ||||||||||||||||||||||||||
| EPA compliance costs | — | 11,644 | 11,644 | ||||||||||||||||||||||||||
| Restructuring charges | — | 2 | 2 | ||||||||||||||||||||||||||
| Non-cash share-based compensation | 5,998 | 10,621 | 16,619 | ||||||||||||||||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 40,364 | $ | 35,159 | $ | 75,523 | |||||||||||||||||||||||
| Three Months Ended August 31, 2022 | |||||||||||||||||||||||||||||
| Home & Outdoor (2) | Beauty & Wellness (3) | Total | |||||||||||||||||||||||||||
| Operating income, as reported (GAAP) | $ | 42,082 | $ | 4,864 | $ | 46,946 | |||||||||||||||||||||||
| Depreciation and amortization | 4,493 | 6,626 | 11,119 | ||||||||||||||||||||||||||
| Non-operating income, net | — | 113 | 113 | ||||||||||||||||||||||||||
| EBITDA (non-GAAP) | 46,575 | 11,603 | 58,178 | ||||||||||||||||||||||||||
| Add: Acquisition-related expenses | 41 | (11) | 30 | ||||||||||||||||||||||||||
| EPA compliance costs | — | 8,354 | 8,354 | ||||||||||||||||||||||||||
| Restructuring charges | 472 | 4,304 | 4,776 | ||||||||||||||||||||||||||
| Non-cash share-based compensation | 2,640 | 4,855 | 7,495 | ||||||||||||||||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 49,728 | $ | 29,105 | $ | 78,833 | |||||||||||||||||||||||
| Three Months Ended November 30, 2022 | |||||||||||||||||||||||||||||
| Home & Outdoor (2) | Beauty & Wellness (3) | Total | |||||||||||||||||||||||||||
| Operating income, as reported (GAAP) | $ | 30,847 | $ | 46,346 | $ | 77,193 | |||||||||||||||||||||||
| Depreciation and amortization | 4,716 | 6,997 | 11,713 | ||||||||||||||||||||||||||
| Non-operating income, net | — | 5 | 5 | ||||||||||||||||||||||||||
| EBITDA (non-GAAP) | 35,563 | 53,348 | 88,911 | ||||||||||||||||||||||||||
| Add: Acquisition-related expenses | (2) | 2 | — | ||||||||||||||||||||||||||
| EPA compliance costs | — | 2,103 | 2,103 | ||||||||||||||||||||||||||
| Gain from insurance recoveries | — | (9,676) | (9,676) | ||||||||||||||||||||||||||
| Restructuring charges | 5,090 | 5,373 | 10,463 | ||||||||||||||||||||||||||
| Non-cash share-based compensation | 2,169 | 5,772 | 7,941 | ||||||||||||||||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 42,820 | $ | 56,922 | $ | 99,742 | |||||||||||||||||||||||
10
Reconciliation of Non-GAAP Financial Measures – Fiscal 2022 EBITDA
(Earnings Before Interest, Taxes, Depreciation and Amortization) and Adjusted EBITDA (5)
(Unaudited) (in thousands)
| Three Months Ended May 31, 2021 | |||||||||||||||||||||||||||||
| Home & Outdoor | Beauty & Wellness | Total | |||||||||||||||||||||||||||
| Operating income, as reported (GAAP) | $ | 27,143 | $ | 37,692 | $ | 64,835 | |||||||||||||||||||||||
| Depreciation and amortization | 2,548 | 6,165 | 8,713 | ||||||||||||||||||||||||||
| Non-operating income, net | — | 102 | 102 | ||||||||||||||||||||||||||
| EBITDA (non-GAAP) | 29,691 | 43,959 | 73,650 | ||||||||||||||||||||||||||
| Add: EPA compliance costs | — | 13,112 | 13,112 | ||||||||||||||||||||||||||
| Restructuring charges | — | 6 | 6 | ||||||||||||||||||||||||||
| Non-cash share-based compensation | 5,551 | 8,469 | 14,020 | ||||||||||||||||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 35,242 | $ | 65,546 | $ | 100,788 | |||||||||||||||||||||||
| Three Months Ended August 31, 2021 | |||||||||||||||||||||||||||||
| Home & Outdoor | Beauty & Wellness | Total | |||||||||||||||||||||||||||
| Operating income, as reported (GAAP) | $ | 41,921 | $ | 25,370 | $ | 67,291 | |||||||||||||||||||||||
| Depreciation and amortization | 2,815 | 5,913 | 8,728 | ||||||||||||||||||||||||||
| Non-operating income, net | — | 31 | 31 | ||||||||||||||||||||||||||
| EBITDA (non-GAAP) | 44,736 | 31,314 | 76,050 | ||||||||||||||||||||||||||
| Add: EPA compliance costs | — | 2,960 | 2,960 | ||||||||||||||||||||||||||
| Restructuring charges | 369 | — | 369 | ||||||||||||||||||||||||||
| Non-cash share-based compensation | 3,157 | 4,623 | 7,780 | ||||||||||||||||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 48,262 | $ | 38,897 | $ | 87,159 | |||||||||||||||||||||||
| Three Months Ended November 30, 2021 | |||||||||||||||||||||||||||||
| Home & Outdoor | Beauty & Wellness | Total | |||||||||||||||||||||||||||
| Operating income, as reported (GAAP) | $ | 43,239 | $ | 46,801 | $ | 90,040 | |||||||||||||||||||||||
| Depreciation and amortization | 2,894 | 5,747 | 8,641 | ||||||||||||||||||||||||||
| Non-operating income, net | — | 52 | 52 | ||||||||||||||||||||||||||
| EBITDA (non-GAAP) | 46,133 | 52,600 | 98,733 | ||||||||||||||||||||||||||
| Add: Acquisition-related expenses | 1,605 | — | 1,605 | ||||||||||||||||||||||||||
| EPA compliance costs | — | 4,926 | 4,926 | ||||||||||||||||||||||||||
| Restructuring charges | — | 5 | 5 | ||||||||||||||||||||||||||
| Non-cash share-based compensation | 2,339 | 4,210 | 6,549 | ||||||||||||||||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 50,077 | $ | 61,741 | $ | 111,818 | |||||||||||||||||||||||
11
Reconciliation of Non-GAAP Financial Measures – Fiscal 2022 EBITDA
(Earnings Before Interest, Taxes, Depreciation and Amortization) and Adjusted EBITDA (5)
(Unaudited) (in thousands)
| Three Months Ended February 28, 2022 | |||||||||||||||||||||||||||||
| Home & Outdoor (2) | Beauty & Wellness | Total | |||||||||||||||||||||||||||
| Operating income, as reported (GAAP) | $ | 22,622 | $ | 27,762 | $ | 50,384 | |||||||||||||||||||||||
| Depreciation and amortization | 3,855 | 5,892 | 9,747 | ||||||||||||||||||||||||||
| Non-operating income, net | — | 75 | 75 | ||||||||||||||||||||||||||
| EBITDA (non-GAAP) | 26,477 | 33,729 | 60,206 | ||||||||||||||||||||||||||
| Add: Acquisition-related expenses | 819 | — | 819 | ||||||||||||||||||||||||||
| EPA compliance costs | — | 11,356 | 11,356 | ||||||||||||||||||||||||||
| Non-cash share-based compensation | 2,765 | 3,504 | 6,269 | ||||||||||||||||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 30,061 | $ | 48,589 | $ | 78,650 | |||||||||||||||||||||||
| Fiscal Year Ended February 28, 2022 | |||||||||||||||||||||||||||||
| Home & Outdoor (2) | Beauty & Wellness | Total | |||||||||||||||||||||||||||
| Operating income, as reported (GAAP) | $ | 134,925 | $ | 137,625 | $ | 272,550 | |||||||||||||||||||||||
| Depreciation and amortization | 12,112 | 23,717 | 35,829 | ||||||||||||||||||||||||||
| Non-operating income, net | — | 260 | 260 | ||||||||||||||||||||||||||
| EBITDA (non-GAAP) | 147,037 | 161,602 | 308,639 | ||||||||||||||||||||||||||
| Add: Acquisition-related expenses | 2,424 | — | 2,424 | ||||||||||||||||||||||||||
| EPA compliance costs | — | 32,354 | 32,354 | ||||||||||||||||||||||||||
| Restructuring charges | 369 | 11 | 380 | ||||||||||||||||||||||||||
| Non-cash share-based compensation | 13,812 | 20,806 | 34,618 | ||||||||||||||||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 163,642 | $ | 214,773 | $ | 378,415 | |||||||||||||||||||||||
12
HELEN OF TROY LIMITED AND SUBSIDIARIES
Notes to Historical Segment Financial Information
(1)Organic business refers to net sales revenue associated with product lines or brands after the first twelve months from the date the product line or brand is acquired, excluding the impact that foreign currency remeasurement had on reported net sales revenue. Net sales revenue from internally developed brands or product lines is considered Organic business activity.
(2)On December 29, 2021, we completed the acquisition of Osprey, which has been included within the Home & Outdoor segment. As such, the three months ended February 28, 2022 and fiscal 2022 include approximately nine weeks of operating results from Osprey and fiscal 2023 includes a full year of operating results. Osprey sales prior to the first annual anniversary of the acquisition are reported in Acquisition. Sales from Osprey subsequent to the first annual anniversary of the acquisition are reported in Organic business.
(3)On April 22, 2022, we completed the acquisition of Curlsmith, which has been included within the Beauty & Wellness segment. As such, the three months ended May 31, 2022 includes approximately six weeks of operating results from Curlsmith and fiscal 2023 includes approximately forty-five weeks of operating results. Curlsmith sales are reported in Acquisition.
(4)The Company defines Core business as strategic business that it expects to be an ongoing part of its operations, and Non-Core business as business or net assets (including net assets held for sale) that it expects to divest within a year of its designation as Non-Core.
(5)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. This historical segment financial information contains non-GAAP financial measures. Adjusted Operating Income, Adjusted Operating Margin, EBITDA, and Adjusted EBITDA (“Non-GAAP Financial Measures”) that are in the preceding tables may be considered non-GAAP financial information as contemplated by SEC Regulation G, Rule 100. Accordingly, the Company is providing the preceding tables that reconcile these measures to their corresponding GAAP-based measures. 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 financial measures, in combination with the Company’s financial results calculated in accordance with GAAP, provide investors with additional perspective regarding the impact of certain charges and benefits on applicable income and margin measures. The Company also believes that these non-GAAP measures facilitate a more direct comparison of the Company’s performance with its competitors. The Company further believes that including the excluded charges and benefits would not accurately reflect the underlying performance of the Company’s operations for the period in which the charges and benefits are incurred, even though such charges and benefits may be incurred and reflected in the Company’s GAAP financial results in the near future. The material limitation associated with the use of the non-GAAP 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.
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