hele_Current folio_Ex_99

hele_Current folio_Ex_99_3

Exhibit 99.3

HELEN OF TROY LIMITED AND SUBSIDIARIES

SELECTED OTHER DATA

Consolidated Condensed Statements of Income and Reconciliation of Non-GAAP Financial Measures – Adjusted Operating Income, Adjusted Diluted Earnings Per Share (“EPS”) from Continuing Operations(1)

(Unaudited)

(in thousands, except per share data)


	Three Months Ended May 31, 2017							Three Months Ended May 31, 2016
	As Reported					Adjusted		As Reported					Adjusted
	(GAAP)		Adjustments			(Non-GAAP)		(GAAP)		Adjustments			(Non-GAAP)
Sales revenue, net:
Housewares	$	98,428	$	-		$	98,428	$	84,603	$	-		$	84,603
Health & Home		150,266		-			150,266		146,355		-			146,355
Beauty		79,292		-			79,292		81,040		-			81,040
Total sales revenue, net		327,986		-			327,986		311,998		-			311,998
Cost of goods sold		193,921		-			193,921		185,365		-			185,365
Gross profit		134,065		-			134,065		126,633		-			126,633

SG&A		99,482		(4,848)	(5)		91,496		96,588		(1,468)	(8)		84,915
				(3,138)	(6)						(5,633)	(5)
											(4,572)	(6)
Asset impairment charges		4,000		(4,000)			-		2,400		(2,400)			-
Operating income		30,583		11,986			42,569		27,645		14,073			41,718

Nonoperating income, net		166		-			166		151		-			151
Interest expense		(3,725)		-			(3,725)		(3,524)		-			(3,524)
Income before income tax		27,024		11,986			39,010		24,272		14,073			38,345

Income tax expense (benefit)		(284)		1,006			722		626		1,287			1,913
Income from continuing operations		27,308		10,980			38,288		23,646		12,786			36,432


Diluted EPS from continuning operations	$	1.00	$	0.40		$	1.41	$	0.84	$	0.45		$	1.29

Weighted average shares of common stock used in computing diluted EPS		27,245					27,245		28,147					28,147


	Three Months Ended August 31, 2017							Three Months Ended August 31, 2016
	As Reported					Adjusted		As Reported					Adjusted
	(GAAP)		Adjustments			(Non-GAAP)		(GAAP)		Adjustments			(Non-GAAP)
Sales revenue, net:
Housewares	$	114,720	$	-		$	114,720	$	105,976	$	-		$	105,976
Health & Home		147,861		-			147,861		144,453		-			144,453
Beauty		84,624		-			84,624		84,629		-			84,629
Total sales revenue, net		347,205		-			347,205		335,058		-			335,058
Cost of goods sold		201,472		-			201,472		195,668		-			195,668
Gross profit		145,733		-			145,733		139,390		-			139,390

SG&A		106,026		(4,691)	(5)		94,647		101,644		(5,651)	(5)		92,772
				(3,092)	(6)						(3,221)	(6)
				(3,596)	(7)
Operating income		39,707		11,379			51,086		37,746		8,872			46,618

Nonoperating income, net		81		-			81		88		-			88
Interest expense		(3,754)		-			(3,754)		(3,739)		-			(3,739)
Income before income tax		36,034		11,379			47,413		34,095		8,872			42,967

Income tax expense		1,462		744			2,206		4,630		818			5,448
Income from continuing operations		34,572		10,635			45,207		29,465		8,054			37,519


Diluted EPS from continuning operations	$	1.26	$	0.39		$	1.66	$	1.04	$	0.29		$	1.33

Weighted average shares of common stock used in computing diluted EPS		27,401					27,401		28,224					28,224

(Unaudited)

(in thousands, except per share data)


	Three Months Ended November 30, 2017							Three Months Ended November 30, 2016
	As Reported					Adjusted		As Reported					Adjusted
	(GAAP)		Adjustments			(Non-GAAP)		(GAAP)		Adjustments			(Non-GAAP)
Sales revenue, net:
Housewares	$	128,017	$	-		$	128,017	$	124,723	$	-		$	124,723
Health & Home		190,975		-			190,975		179,842		-			179,842
Beauty		104,717		-			104,717		107,686		-			107,686
Total sales revenue, net		423,709		-			423,709		412,251		-			412,251
Cost of goods sold		242,704		-			242,704		240,324		-			240,324
Gross profit		181,005		-			181,005		171,927		-			171,927

SG&A		112,500		(4,659)	(5)		103,452		109,154		(5,628)	(5)		100,878
				(4,389)	(6)						(2,648)	(6)
Restructuring charges		1,166		(1,166)	(4)		-		-		-			-
Operating income		67,339		10,214			77,553		62,773		8,276			71,049

Nonoperating income, net		33		-			33		105		-			105
Interest expense		(3,504)		-			(3,504)		(3,498)		-			(3,498)
Income before income tax		63,868		10,214			74,082		59,380		8,276			67,656

Income tax expense		5,244		777			6,021		2,606		744			3,350
Income from continuing operations		58,624		9,437			68,061		56,774		7,532			64,306


Diluted EPS from continuning operations	$	2.15	$	0.35		$	2.50	$	2.04	$	0.27		$	2.31

Weighted average shares of common stock used in computing diluted EPS		27,267					27,267		27,802					27,802


	Three Months Ended February 28, 2018							Three Months Ended February 28, 2017
	As Reported					Adjusted		As Reported					Adjusted
	(GAAP)		Adjustments			(Non-GAAP)		(GAAP)		Adjustments			(Non-GAAP)
Sales revenue, net:
Housewares	$	116,654	$	-		$	116,654	$	102,826	$	-		$	102,826
Health & Home		193,503		-			193,503		162,119		-			162,119
Beauty		80,690		-			80,690		82,424		-			82,424
Total sales revenue, net		390,847		-			390,847		347,369		-			347,369
Cost of goods sold		229,549		-			229,549		202,762		-			202,762
Gross profit		161,298		-			161,298		144,607		-			144,607

SG&A		117,727		(4,656)	(5)		108,636		102,607		(5,112)	(5)		94,075
				(4,435)	(6)						(3,420)	(6)
Asset impairment charges		11,447		(11,447)			-		500		(500)			-
Restructuring charges		691		(691)	(4)		-		-		-			-
Operating income		31,433		21,229			52,662		41,500		9,032			50,532

Nonoperating income, net		47		-			47		70		-			70
Interest expense		(2,968)		-			(2,968)		(3,600)		-			(3,600)
Income before income tax		28,512		21,229			49,741		37,970		9,032			47,002

Income tax expense		20,134		(16,061)			4,073		3,545		809			4,354
Income from continuing operations		8,378		37,290			45,668		34,425		8,223			42,648


Diluted EPS from continuning operations	$	0.31	$	1,38		$	1.69	$	1.25	$	0.30		$	1.55

Weighted average shares of common stock used in computing diluted EPS		27,102					27,102		27,550					27,550

Reconciliation of Non-GAAP Financial Measures – GAAP Operating Income
to Adjusted Operating Income (non-GAAP)(1)

(Unaudited)

(in thousands)


	Three Months Ended May 31, 2017
	Housewares				Health & Home				Beauty				Total
Operating income (loss), as reported (GAAP)	$	17,936	18.2	%	$	14,244	9.5	%	$	(1,597)	(2.0)	%	$	30,583	9.3	%
Asset impairment charges		-	-	%		-	-	%		4,000	5.0	%		4,000	1.2	%
Subtotal		17,936	18.2	%		14,244	9.5	%		2,403	3.0	%		34,583	10.5	%
Amortization of intangible assets		644	0.7	%		2,786	1.9	%		1,418	1.8	%		4,848	1.5	%
Non-cash share-based compensation		971	1.0	%		1,128	0.8	%		1,039	1.3	%		3,138	1.0	%
Adjusted operating income (non-GAAP)	$	19,551	19.9	%	$	18,158	12.1	%	$	4,860	6.1	%	$	42,569	13.0	%


	Three Months Ended August 31, 2017
	Housewares				Health & Home				Beauty				Total
Operating income, as reported (GAAP)	$	23,340	20.3	%	$	7,415	5.0	%	$	8,952	10.6	%	$	39,707	11.4	%
TRU bankruptcy charge		956	0.7	%		2,640	1.4	%		-	-	%		3,596	0.8	%
Subtotal		24,296	21.2	%		10,055	6.8	%		8,952	10.6	%		43,303	12.5	%
Amortization of intangible assets		485	0.4	%		2,790	1.9	%		1,416	1.7	%		4,691	1.4	%
Non-cash share-based compensation		970	0.8	%		1,132	0.8	%		990	1.2	%		3,092	0.9	%
Adjusted operating income (non-GAAP)	$	25,751	22.4	%	$	13,977	9.5	%	$	11,358	13.4	%	$	51,086	14.7	%


	Three Months Ended November 30, 2017
	Housewares				Health & Home				Beauty				Total
Operating income, as reported (GAAP)	$	29,808	23.3	%	$	27,584	14.4	%	$	9,947	9.5	%	$	67,339	15.9	%
Restructuring charges(4)		-	-	%		-	-	%		1,166	1.1	%		1,166	0.3	%
Subtotal		29,808	23.3	%		27,584	14.4	%		11,113	10.6	%		68,505	16.2	%
Amortization of intangible assets		489	0.4	%		2,796	1.5	%		1,374	1.3	%		4,659	1.1	%
Non-cash share-based compensation		1,439	1.1	%		1,711	0.9	%		1,239	1.2	%		4,389	1.0	%
Adjusted operating income (non-GAAP)	$	31,736	24.8	%	$	32,091	16.8	%	$	13,726	13.1	%	$	77,553	18.3	%


	Three Months Ended February 28, 2018
	Housewares				Health & Home				Beauty				Total
Operating income, as reported (GAAP)	$	18,235	15.6	%	$	12,856	6.6	%	$	342	0.4	%	$	31,433	8.0	%
Asset impairment charges		-	-	%		-	-	%		11,447	14.2	%		11,447	2.9	%
Restructuring charges(4)		220	0.2	%		-	-	%		471	0.6	%		691	0.2	%
Subtotal		18,455	15.8	%		12,856	6.6	%		12,260	15.2	%		43,571	11.1	%
Amortization of intangible assets		608	0.5	%		2,728	1.4	%		1,320	1.6	%		4,656	1.2	%
Non-cash share-based compensation		1,321	1.1	%		1,750	0.9	%		1,364	1.7	%		4,435	1.1	%
Adjusted operating income (non-GAAP)	$	20,384	17.5	%	$	17,334	9.0	%	$	14,944	18.5	%	$	52,662	13.5	%

Reconciliation of Non-GAAP Financial Measures – GAAP Operating Income
to Adjusted Operating Income (non-GAAP)(1)

(Unaudited)

(in thousands)


	Three Months Ended May 31, 2016
	Housewares				Health & Home				Beauty				Total
Operating income, as reported (GAAP)	$	15,369	18.2	%	$	9,344	6.4	%	$	2,932	3.6	%	$	27,645	8.9	%
Asset impairment charges		-	-	%		-	-	%		2,400	3.0	%		2,400	0.8	%
Patent litigation charges		-	-	%		1,468	-	%		-	-	%		1,468	0.5	%
Subtotal		15,369	18.2	%		10,812	7.4	%		5,332	6.6	%		31,513	10.1	%
Amortization of intangible assets		657	0.8	%		3,538	2.4	%		1,438	1.8	%		5,633	1.8	%
Non-cash share-based compensation		1,040	1.2	%		1,945	1.3	%		1,587	2.0	%		4,572	1.5	%
Adjusted operating income (non-GAAP)	$	17,066	20.2	%	$	16,295	11.1	%	$	8,357	10.3	%	$	41,718	13.4	%


	Three Months Ended August 31, 2016
	Housewares				Health & Home				Beauty				Total
Operating income, as reported (GAAP)	$	24,007	22.7	%	$	8,955	6.2	%	$	4,784	5.7	%	$	37,746	11.3	%
Amortization of intangible assets		671	0.6	%		3,542	2.5	%		1,438	1.7	%		5,651	1.7	%
Non-cash share-based compensation		822	0.8	%		1,194	0.8	%		1,205	1.4	%		3,221	1.0	%
Adjusted operating income (non-GAAP)	$	25,500	24.1	%	$	13,691	9.5	%	$	7,427	8.8	%	$	46,618	13.9	%


	Three Months Ended November 30, 2016
	Housewares				Health & Home				Beauty				Total
Operating income, as reported (GAAP)	$	29,090	23.3	%	$	19,896	11.1	%	$	13,787	12.8	%	$	62,773	15.2	%
Amortization of intangible assets		658	0.5	%		3,546	2.0	%		1,424	1.3	%		5,628	1.4	%
Non-cash share-based compensation		704	0.6	%		945	0.5	%		999	0.9	%		2,648	0.6	%
Adjusted operating income (non-GAAP)	$	30,452	24.4	%	$	24,387	13.6	%	$	16,210	15.1	%	$	71,049	17.2	%

	Three Months Ended February 28, 2017
	Housewares				Health & Home				Beauty				Total
Operating income, as reported (GAAP)	$	20,554	20.0	%	$	12,877	7.9	%	$	8,069	9.8	%	$	41,500	11.9	%
Asset impairment charges		-	-	%		-	-	%		500	0.6	%		500	0.1	%
Subtotal		20,554	20.0	%		12,877	7.9	%		8,569	10.4	%		42,000	12.1	%
Amortization of intangible assets		657	0.6	%		3,037	1.9	%		1,418	1.7	%		5,112	1.5	%
Non-cash share-based compensation		842	0.8	%		1,366	0.8	%		1,212	1.5	%		3,420	1.0	%
Adjusted operating income (non-GAAP)	$	22,053	21.4	%	$	17,280	10.7	%	$	11,199	13.6	%	$	50,532	14.5	%

Notes to Supplemental Addendum of Fiscal 2018 and 2017 Quarterly GAAP and non-GAAP Information on a Continuing Operations Basis After the Divestiture of the Nutritional Supplements Segment

⁽¹⁾

This addendum contains non-GAAP financial measures adjusted operating income, adjusted operating margin, adjusted income, and adjusted diluted earnings per share (“Non-GAAP measures”) that are discussed in the preceding tables may be 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 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. We believe 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 such charges on net income and earnings per share. We also believe that these non-GAAP measures facilitate a more direct comparison of the Company’s performance with its competitors. Additionally, the non-GAAP financial measures are used by management for measuring and evaluating the Company’s performance. 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 periods 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.

⁽⁴⁾

Charges incurred in conjunction with the Company’s restructuring plan (Project Refuel) for the three - and twelve - months ended February 28, 2018, with no comparable charges in the same periods last year.

⁽⁵⁾

Amortization of intangible assets.

⁽⁶⁾

Non-cash share-based compensation.

⁽⁷⁾

Charge related to the bankruptcy of Toys “R” Us, Inc., with no comparable charges in the same period last year.

⁽⁸⁾

Patent litigation charge.