Helen of Troy Ltd (HELE) 2004 Q3 法說會逐字稿

Good morning and welcome, ladies and gentlemen, to the Helen of Troy third quarter earnings conference call for fiscal 2004.

女士們先生們，早上好，歡迎來到海倫特洛伊公司 2004 財年第三季度收益電話會議。

At this time, I would like to inform you that all participants are in a listen-only mode.

此時，我想通知您，所有參與者都處於只聽模式。

At the request of the Company, we will open the conference up for questions and answers after the presentation.

應公司要求，我們將在介紹後開放會議進行問答。

Our speakers for this morning's conference call are Gerald Rubin, Chairman, Chief Executive Officer and President;

今天上午電話會議的發言人是董事長、首席執行官兼總裁 Gerald Rubin；

Christopher Carameros, Executive Vice President;

執行副總裁 Christopher Carameros；

Thomas Benson, Senior Vice President and Chief Financial Officer;

Thomas Benson，高級副總裁兼首席財務官；

Robert Spear, Senior Vice President and Chief Information Officer.

Robert Spear，高級副總裁兼首席信息官。

I will now turn the conference over to Robert Spear.

我現在將會議轉交給羅伯特斯皮爾。

Please go ahead, sir.

請繼續，先生。

Good morning everyone and welcome to Helen of Troy's third quarter earnings conference call for fiscal year 2004.

大家早上好，歡迎來到 Helen of Troy 的 2004 財年第三季度收益電話會議。

The agenda for this morning's conference call is as follows -- we'll have a brief forward-looking statement review, followed by Mr. Rubin, who will discuss our third quarter earnings release and related results of operations for Helen of Troy, followed by a financial review of our income statement and balance sheet for the quarter by Tom Benson, our Chief Financial Officer, and finally, we'll open it up for questions and answers for those of you with any further questions.

今天上午的電話會議議程如下——我們將進行簡短的前瞻性陳述審查，然後是魯賓先生，他將討論我們第三季度的收益發布和海倫特洛伊的相關運營結果，隨後是我們的首席財務官湯姆·本森 (Tom Benson) 對我們本季度的損益表和資產負債表進行了財務審查，最後，我們將公開提問和回答那些有任何進一步問題的人。

First, the Safe Harbor statement.

首先，安全港聲明。

This conference call may contain certain forward-looking statements that are based on management's current expectations with respect to future events or financial performance.

本次電話會議可能包含某些基於管理層當前對未來事件或財務業績的預期的前瞻性陳述。

A number of risks or uncertainties could cause actual results to differ (indiscernible) materially or historically anticipated results. (indiscernible) the words anticipates, believes, expects, or other similar words, identify forward-looking statements.

許多風險或不確定性可能導致實際結果與（音頻不清晰）重大或歷史預期結果不同。 （音頻不清晰）預期、相信、期望或其他類似詞語可識別前瞻性陳述。

The Company cautions listeners not to place undue reliance on forward-looking statements.

公司提醒聽眾不要過分依賴前瞻性陳述。

Forward-looking statements are subject to risks that could cause such statements to differ materially from actual results.

前瞻性陳述存在可能導致此類陳述與實際結果存在重大差異的風險。

Factors that could cause actual results to differ from those anticipated are described in the Company's Form 10-K filed with the Securities and Exchange Commission for the fiscal year ended February 28, 2003, and Form 10-Qs for the quarters ended May 31 and August 31, 2003.

公司向美國證券交易委員會提交的截至 2003 年 2 月 28 日的財政年度的 10-K 表格以及截至 5 月 31 日和 8 月的季度的 10-Q 表格中描述了可能導致實際結果與預期結果不同的因素2003 年 31 號。

Before I turn the conference call over to our Chairman, Mr. Rubin, I would like to inform all interested parties that a copy of today's earnings release has been posted to our Web site at www.Hotus.com.

在我將電話會議轉交給我們的董事長 Rubin 先生之前，我想通知所有感興趣的各方，今天的收益報告副本已發佈到我們的網站 www.Hotus.com 上。

The release can be accessed by selecting the investor relations tab on our homepage, and then the news tab.

可以通過選擇我們主頁上的投資者關係選項卡，然後選擇新聞選項卡來訪問該新聞稿。

I will now turn the conference over to Mr. Gerald Rubin, Chairman, CEO, and President of Helen of Troy.

我現在將會議轉交給海倫特洛伊的董事長、首席執行官兼總裁杰拉爾德魯賓先生。

Thank you, Bob.

謝謝你，鮑勃。

Good morning everyone, and welcome to Helen of Troy's third quarter conference call.

大家早上好，歡迎來到特洛伊的海倫第三季度電話會議。

Helen of Troy today reported record sales and earnings for the third quarter and nine months ended November 30, 2003.

Helen of Troy 今天報告了截至 2003 年 11 月 30 日的第三季度和九個月的創紀錄的銷售和收益。

With solid product performances in the U.S. and abroad, third quarter sales increased 25 percent to a record $179 million, versus sales of 143 million for the same period of the prior year.

憑藉在美國和海外的穩健產品表現，第三季度銷售額增長了 25%，達到創紀錄的 1.79 億美元，而去年同期的銷售額為 1.43 億美元。

Third quarter net earnings increased 49 percent to a record $25 million, or 78 cents per diluted share, from 16,791,000, or 57 cents per diluted share for the same period a year earlier.

第三季度淨收益增長 49%，達到創紀錄的 2500 萬美元，即每股攤薄收益 78 美分，而去年同期為 16,791,000 美元，即每股攤薄收益 57 美分。

Nine months sales climbed 13 percent to a record $401 million from sales of 357 million for last year's nine months.

九個月的銷售額從去年九個月的 3.57 億美元增長了 13%，達到創紀錄的 4.01 億美元。

Net earnings for the nine months ended November 30th, 2003 was $53 million, or $1.71 per diluted share, versus 32 million, or $1.09 per diluted share in the comparable period last year, representing a 64 percent increase in net earnings.

截至 2003 年 11 月 30 日止九個月的淨收益為 5300 萬美元，或稀釋後每股收益 1.71 美元，而去年同期為 3200 萬美元，或稀釋後每股收益 1.09 美元，淨收益增長了 64%。

I am very pleased to have delivered a strong financial performance for the quarter.

我很高興本季度取得了強勁的財務業績。

Sales and earnings reached record levels for our Company during the quarter, and based on continuing performance, we believe the fourth quarter will be a record-breaking fourth quarter as well.

本季度我們公司的銷售額和收益達到了創紀錄的水平，並且基於持續的表現，我們相信第四季度也將是創紀錄的第四季度。

Sales increased in every segment of our business except Tactica.

除 Tactica 外，我們業務的每個部門的銷售額都有所增長。

Our sales leaders continue to include retail personal care products, the professional division, the international division, and our Idelle Labs skin and hair care products.

我們的銷售主管繼續包括零售個人護理產品、專業部門、國際部門以及我們的 Idelle Labs 皮膚和頭髮護理產品。

Excluding the results for Tactica, third quarter sales increased by 33 percent to 165 million, with operating income of 31.7 million, or 19.2 percent of sales.

排除 Tactica 的業績，第三季度銷售額增長 33% 至 1.65 億美元，營業收入為 3170 萬美元，佔銷售額的 19.2%。

Excluding Tactica and our new Idelle Labs division, Helen of Troy sales increased by 24.1 percent, to 149.4 million versus 120.4 million for last year's third quarter.

不包括 Tactica 和我們新的 Idelle Labs 部門，Helen of Troy 的銷售額增長了 24.1%，達到 1.494 億，而去年第三季度為 1.204 億。

We are pleased that Tactica's performance has improved over the last quarter; however, we continue to explore strategic alternatives for our investment in Tactica, with a strong view towards maximizing shareholder value.

我們很高興 Tactica 的業績在上個季度有所改善；然而，我們繼續探索戰略替代方案來投資 Tactica，強烈希望實現股東價值最大化。

These alternatives include a possible sale of all or a partial interest in Tactica.

這些備選方案包括可能出售全部或部分 Tactica 權益。

There can be no assurance that any transaction involving Tactica will occur.

無法保證任何涉及 Tactica 的交易都會發生。

We expect to complete our analysis over the next several months and communicate the results at that time to our shareholders.

我們希望在接下來的幾個月內完成我們的分析，並在那時將結果傳達給我們的股東。

Due to the sales and earnings momentum we have experienced over the last quarter, we are raising our fiscal year ending February 29, 2004 earnings per diluted share guidance from $1.85 to $1.90 to $2.05 to $2.10, or a 56 to 60 percent increase from the prior fiscal year's diluted earnings per share of $1.31.

由於我們在上個季度經歷的銷售和盈利勢頭，我們將截至 2004 年 2 月 29 日的財政年度每股攤薄收益指導從 1.85 美元提高到 1.90 美元到 2.05 美元到 2.10 美元，或者比之前的增長 56% 到 60%財年每股攤薄收益為 1.31 美元。

We have also increased our projected earning per diluted share for the fiscal year beginning March 1st, 2004 from $2.15 to 2.25 to a range of $2.30 to $2.40.

我們還將 2004 年 3 月 1 日開始的財政年度的預計每股攤薄收益從 2.15 美元提高到 2.25 美元，提高到 2.30 美元到 2.40 美元之間。

Our business and financial performance continues to be strong and consistent.

我們的業務和財務業績繼續保持強勁和穩定。

This quarter marks 35 of the past 39 quarters with quarter-over-quarter increases in sales and net earnings.

本季度標誌著過去 39 個季度中有 35 個季度的銷售額和淨收益環比增長。

For the fourth quarter, we are projecting sales of 110 to 115 million, up from last year's 102 million.

對於第四季度，我們預計銷售額為 110 至 1.15 億，高於去年的 1.02 億。

Fourth quarter earnings per share are estimated to be between 34 and 39 cents, an increase from the 22 cents reported fourth quarter last year.

第四季度每股收益估計在 34 至 39 美分之間，高於去年第四季度報告的 22 美分。

Helen of Troy stock has increased from December 31st, 2002 to December 31st, 2003 -- this past year -- from $11.64 to $23.14, an increase of 99 percent.

特洛伊海倫的股票從 2002 年 12 月 31 日到 2003 年 12 月 31 日——過去一年——從 11.64 美元漲到 23.14 美元，漲幅達 99%。

If you compare Helen of Troy stock to the Dow Jones, the NASDAQ and the S&P, Helen of Troy has beat their increases for the last six months, one year, two years, five years, 12 years, and 14 year periods.

如果將海倫特洛伊股票與道瓊斯指數、納斯達克指數和標準普爾指數進行比較，海倫特洛伊指數在過去六個月、一年、兩年、五年、十二年和十四年期間的漲幅都超過了它們。

Helen of Troy has been a stock you can hold long-term and beat the Dow, the NASDAQ, and S&P.

特洛伊海倫是一隻可以長期持有並跑贏道瓊斯指數、納斯達克指數和標準普爾指數的股票。

Four years ago Helen of Troy earned 44 cents per share; this year we are projecting $2.05 to $2.10.

四年前，特洛伊的海倫每股收益 44 美分；今年我們預計 2.05 美元至 2.10 美元。

This has been an annualized growth rate of 47 percent.

這是 47% 的年化增長率。

Helen of Troy is projecting a 10 to 15 percent sales growth and a 15 to 20 percent earnings per share growth for the next four years.

特洛伊的海倫 (Helen of Troy) 預計未來四年的銷售額將增長 10% 至 15%，每股收益將增長 15% 至 20%。

At a minimum, Helen of Troy is projecting to double earnings per share to $4 in the next four years.

至少，特洛伊的海倫計劃在未來四年內將每股收益翻一番，達到 4 美元。

I would now like to turn this conference over to our CFO, Tom Benson, and then to our Executive VP, Chris Carameros.

我現在想將這次會議轉交給我們的首席財務官 Tom Benson，然後轉交給我們的執行副總裁 Chris Carameros。

Thank you, Jerry, and good morning.

謝謝你，傑里，早上好。

Needless to say, we are all very pleased with our operating performance for the third quarter.

不用說，我們對第三季度的經營業績都非常滿意。

Third quarter net sales grew 25.3 percent year-over-year.

第三季度淨銷售額同比增長 25.3%。

Quarter three 2004 net sales were 179.2 million compared to 143 million for quarter three 2003.

2004 年第三季度的淨銷售額為 1.792 億美元，而 2003 年第三季度為 1.43 億美元。

This represents an increase of 36.2 million, or 25.3 percent.

這意味著增加了 3620 萬，即 25.3%。

However, more importantly, our third quarter net earnings increased by 49.3 percent year-over-year.

然而，更重要的是，我們第三季度的淨收益同比增長了 49.3%。

Net earnings for quarter three 2004 was 25.1 million, 14 percent of net sales, compared to 16.8 million, or 11.7 percent of net sales quarter three 2003.

2004 年第三季度的淨利潤為 2510 萬美元，占淨銷售額的 14%，而 2003 年第三季度為 1680 萬美元，占淨銷售額的 11.7%。

This is an increase of $8.3 million; it represents a 49.3 percent increase, and the net earnings as a percentage of sales increased 2.3 percentage points.

這增加了 830 萬美元；增長了 49.3%，淨利潤佔銷售額的百分比增長了 2.3 個百分點。

Third quarter operating income also improved 45.3 percent year-over-year.

第三季度營業收入也同比增長 45.3%。

Quarter three 2004 operating income was $30.3 million, 16.9 percent of sales, compared to $20.9 million, 14.6 percent of sales quarter three 2003.

2004 年第三季度營業收入為 3030 萬美元，佔銷售額的 16.9%，而 2003 年第三季度為 2090 萬美元，佔銷售額的 14.6%。

This is a 45 percent increase, $9.5 million.

這是 45% 的增長，即 950 萬美元。

Third quarter earnings per diluted share increased 36.8 percent year-over-year.

第三季度每股攤薄收益同比增長 36.8%。

Diluted earnings per share are 78 cents for quarter three 2004, compared to 57 cents for quarter three 2003.

2004 年第三季度的稀釋後每股收益為 78 美分，而 2003 年第三季度為 57 美分。

This is a 21 cent per diluted share increased, or 36.8 percent.

這是每股攤薄收益增加 21 美分，即 36.8%。

Now I will provide a more detailed review of various components of our financial performance.

現在我將對我們財務業績的各個組成部分進行更詳細的審查。

Net sales.

淨銷售額。

The Company's quarterly net sales exclusive of Tactica were 165.4 million in quarter three 2004, compared to 124 million in quarter three 2003.

2004 年第三季度，公司不包括 Tactica 在內的季度淨銷售額為 1.654 億美元，而 2003 年第三季度為 1.24 億美元。

This represents an increase of 41.4 million, or 33.3 percent.

這意味著增加了 4140 萬，即 33.3%。

This portion of our business represents 92 percent of consolidated net sales for this quarter, while it was 87 percent the prior year quarter.

我們這部分業務佔本季度綜合淨銷售額的 92%，而去年同期為 87%。

By segments, our North American segments in quarter three 2004 had net sales of 141.7 million compared to 108.7 million in quarter three 2003.

按部門劃分，我們的北美部門在 2004 年第三季度的淨銷售額為 1.417 億美元，而 2003 年第三季度為 1.087 億美元。

This is an increase of $33 million, or 30.3 percent.

這增加了 3300 萬美元，即 30.3%。

Our international segments had sales of 23.7 million in quarter three 2004, compared to 15.3 million in quarter three 2003.

我們的國際部門在 2004 年第三季度的銷售額為 2370 萬，而 2003 年第三季度為 1530 萬。

This represents an increase of $8.4 million, or 54.6 percent.

這意味著增加了 840 萬美元，即 54.6%。

Tactica, however, had quarterly net sales of 13.8 million in quarter three 2004, versus 19 million in quarter three 2003.

然而，Tactica 在 2004 年第三季度的季度淨銷售額為 1380 萬，而 2003 年第三季度為 1900 萬。

This is a decrease of $5.1 million, or 27.1 percent.

這減少了 510 萬美元，即 27.1%。

Tactica's sales decrease is primarily due to the reduction in sales of (indiscernible) products that were such a large part of sales last year, and general softness of demand for products sold through television infomercials.

Tactica 的銷售額下降主要是由於佔去年銷售額很大一部分的（音頻不清晰）產品銷售額下降，以及對通過電視商業廣告銷售的產品的需求普遍疲軟。

Tactica is also transitioning from placement of products and promotional space in retailers to endline on-shelf placement.

Tactica 也在從零售商的產品放置和促銷空間過渡到終端貨架放置。

Growth in Company sales exclusive of Tactica is primarily due to personal care products with enhanced technology, new products and Idelle Labs.

公司銷售額的增長（不包括 Tactica）主要歸功於具有增強技術的個人護理產品、新產品和 Idelle Labs。

Idelle includes the following -- Sea Breeze, Vitalis, Ammens, Final Net, 3-in-1 Conditioner and Vitapointe, which we acquired from the Procter & Gamble Company in October 2002, and Brut, which we acquired from Unilever in September 2003.

Idelle 包括以下產品——我們於 2002 年 10 月從寶潔公司收購的 Sea Breeze、Vitalis、Ammens、Final Net、三合一護髮素和 Vitapointe，以及我們於 2003 年 9 月從聯合利華收購的 Brut。

These acquired brands accounted for 12.3 million, 30 percent of the 41 (technical difficulty) in quarter three fiscal 2004 sales growth, excluding Tactica.

這些被收購的品牌佔 2004 財年第三季度銷售額增長的 41 個（技術難度）的 1230 萬個（不包括 Tactica）的 30%。

Sales of existing product lines under the Revlon, Sunbeam, Wave Rage, Hot Tools, and Wigo brands, enhance with new technologies and features, have contributed to sales growth.

Revlon、Sunbeam、Wave Rage、Hot Tools 和 Wigo 品牌下現有產品線的銷售，隨著新技術和功能的增強，促進了銷售增長。

Examples include hair care appliances utilizing ionic and ceramic technology rather than traditional heating services.

示例包括使用離子和陶瓷技術而非傳統加熱服務的護髮器具。

We also had sales growth as a result of expanding our line of massagers under the Dr. Scholl's brand, and have new products marketed on infomercials that were also sold in retail outlets.

由於擴展了 Dr. Scholl's 品牌的按摩器系列，我們的銷售額也有所增長，新產品也在電視廣告上銷售，這些產品也在零售店銷售。

Also contributing to the sales growth has been the strengthening of the British pound and the euro versus the U.S. dollar.

英鎊和歐元兌美元的走強也促進了銷售額的增長。

Improvement in exchange rates provided approximately $1.6 million of additional sales benefit in quarter three 2004.

匯率的改善在 2004 年第三季度提供了大約 160 萬美元的額外銷售收益。

Gross profit.

毛利。

Consolidated gross profit for the third quarter was 82.8 million, 46.2 percent of net sales, compared to 65.4 million, 45.7 percent of net sales in quarter three 2003.

第三季度的綜合毛利為 8280 萬美元，占淨銷售額的 46.2%，而 2003 年第三季度為 6540 萬美元，占淨銷售額的 45.7%。

This represents an increase of 17.4 million, or 26.6 percent.

這意味著增加了 1740 萬，即 26.6%。

This increase is due to lower sourcing costs, a mix change to higher margin new products, and the benefit of strengthening foreign currencies against the dollar, partially offset by a reduction in gross profit dollars and gross profit percentage on Tactica sales.

這一增長是由於較低的採購成本、更高利潤的新產品的組合變化以及外幣兌美元走強的好處，部分被毛利潤美元和 Tactica 銷售毛利潤百分比的減少所抵消。

Gross profit without Tactica quarter three 2004 was 75.2 million, 45.5 percent of net sales, compared to 52.5 million, or 42.4 percent of net sales for quarter three 2003.

2004 年第三季度不含 Tactica 的毛利潤為 7520 萬美元，占淨銷售額的 45.5%，而 2003 年第三季度為 5250 萬美元，占淨銷售額的 42.4%。

This represents an increase of 22.7 million, a 43.2 percent increase.

這意味著增加了 2270 萬，增長了 43.2%。

Percentage increase, we had a 3.1 percent increase in gross profit margin.

百分比增長，我們的毛利率增長了 3.1%。

Selling, general and administrative expenses.

銷售、一般和管理費用。

For the third quarter, SG&A expense decreased as a percentage of sales.

第三季度，SG&A 費用佔銷售額的百分比有所下降。

For quarter three 2004, we had 52.5 million of SG&A expense, 29.3 percent of net sales, compared to 44.5 million, 31.1 percent in quarter three 2003.

2004 年第三季度，我們的 SG&A 費用為 5250 萬美元，占淨銷售額的 29.3%，而 2003 年第三季度為 4450 萬美元，占淨銷售額的 31.1%。

This is a percentage decrease of 1.8 percent.

這是 1.8% 的百分比下降。

This decrease in SG&A percentage is due to the change in the mix of segment sales.

SG&A 百分比的下降是由於分部銷售組合的變化。

Lower sales at the Tactica segment, which carries a higher SG&A cost as a percentage of sales compared to the North American and international segments, was a primary reason the overall SG&A percent fell.

Tactica 部門的銷售額下降，與北美和國際部門相比，SG&A 成本佔銷售額的百分比更高，這是整體 SG&A 百分比下降的主要原因。

Operating income.

營業收入。

Operating income without Tactica improved to 19.2 percent of net sales, 31.7 million for quarter three 2004, compared to 16.5 percent, 20.5 million for quarter three 2003.

不包括 Tactica 在內的營業收入提高到淨銷售額的 19.2%，2004 年第三季度為 3170 萬美元，而 2003 年第三季度為 16.5%，2050 萬美元。

Tactica had an operating loss of 1.4 million, 9.9 percent of net sales for quarter three 2004, compared to an operating profit of 419,000, 2.2 percent of net sales for quarter three 2003.

Tactica 的經營虧損為 140 萬英鎊，佔 2004 年第三季度淨銷售額的 9.9%，而營業利潤為 419,000 英鎊，佔 2003 年第三季度淨銷售額的 2.2%。

As mentioned before, Tactica had a sales decrease of 5.1 million for the quarter versus the prior year quarter three.

如前所述，與去年第三季度相比，Tactica 本季度的銷售額減少了 510 萬。

Tactica's quarter three 2004 operating loss of 1.4 million was an improvement from the operating loss of 3.3 million Tactica had in quarter two 2004.

Tactica 2004 年第三季度的經營虧損為 140 萬美元，比 2004 年第二季度 330 萬美元的經營虧損有所改善。

Other expense was a net expense of 403,000 for quarter three 2004, versus an income of 241,000 for quarter three 2003.

2004 年第三季度的其他支出為 403,000 美元的淨支出，而 2003 年第三季度的收入為 241,000 美元。

Interest income was reduced 136,000 due to less investible cash and reduced interest rates.

由於可投資現金減少和利率降低，利息收入減少了 136,000。

There was a reduction in gains both realized and unrealized on securities of 450,000 in quarter three 2004 versus quarter three 2003.

2004 年第三季度與 2003 年第三季度相比，已實現和未實現的證券收益減少了 450,000 美元。

Income tax expense.

所得稅費用。

Income tax expense for quarter three 2004 was $4.9 million, 16.2 percent of income before tax, compared to 4.3 million, 20.5 percent of income before tax for quarter three 2003.

2004 年第三季度的所得稅費用為 490 萬美元，佔稅前收入的 16.2%，而 2003 年第三季度為 430 萬美元，佔稅前收入的 20.5%。

The most significant reason for the reduction in tax rates is due to the tax benefit recognized on the Tactica loss that is at a much higher tax rate than the remainder of the Company's tax rate.

稅率降低的最重要原因是由於 Tactica 損失確認的稅收優惠比公司其餘部分的稅率高得多。

The last portion I will cover is our financial position.

我將介紹的最後一部分是我們的財務狀況。

Our cash balance was 10 million at the end of quarter three 2004, compared to 29.7 million at the end of quarter three 2003.

2004 年第三季度末我們的現金餘額為 1000 萬美元，而 2003 年第三季度末為 2970 萬美元。

The reduction in cash is primarily due to an increase in the inventory and receivables to support the sales growth in our business, the purchase of the Brut brand, advanced payment of royalties for one of our major license agreements, the purchase of our Mississippi distribution center, and capital expenditures for our new computer system, offset by cash generated from operations over the last year.

現金減少主要是由於庫存和應收賬款增加以支持我們業務的銷售增長、購買 Brut 品牌、為我們的一項主要許可協議預付特許權使用費、購買我們的密西西比配送中心，以及我們新計算機系統的資本支出，被去年運營產生的現金所抵消。

Receivables increased 18.5 million year-over-year on a quarterly sales increase of 36.2 million.

由於季度銷售額增長 3620 萬美元，應收賬款同比增長 1850 萬美元。

Inventories increased 13.1 million, or 11.7 percent from year end, and increased 19.4 million, or 18.4 percent compared to last year, with sales increasing 36.2 million, or 25.3 percent in quarter three 2004 compared to quarter three 2003.

2004 年第三季度存貨比上年末增加 1310 萬輛，即增加 11.7%，增加 1940 萬輛，即增加 18.4%，與 2003 年第三季度相比，銷售額增加 3620 萬輛，即增加 25.3%。

Inventories are now at 125.1 million compared to 147.1 million at August 31st, 2003.

與 2003 年 8 月 31 日的 1.471 億相比，現在的庫存為 1.251 億。

Stockholders equity is at 338.8 million at November 30th, 2003, compared to 282.9 million at November 30th, 2002, an increase of 55.9 million.

2003 年 11 月 30 日的股東權益為 3.388 億美元，與 2002 年 11 月 30 日的 2.829 億美元相比增加了 5590 萬。

During quarter three 2004 we purchased and retired a total of 231,800 shares of our common stock at a cost of 5.2 million, for a 22.55 per share average price.

在 2004 年第三季度，我們以每股 22.55 美元的平均價格，以 520 萬美元的成本購入並收回了總計 231,800 股普通股。

This concludes the review of the financial statements.

對財務報表的審閱到此結束。

I would now like to open the floor to questions, operator.

接線員，我現在想開始提問。

(OPERATOR INSTRUCTIONS).

（操作員說明）。

Doug Lane, Avondale Partners.

埃文代爾合夥公司的道格·萊恩 (Doug Lane)。

First question, detail question -- at Idelle Labs, how much of Idelle Labs is overseas now, or outside of North America?

第一個問題，詳細問題——在 Idelle Labs，現在有多少 Idelle Labs 在海外或北美以外？

We don't really separately say a lot of things about Idelle Labs, but we have a presence, I can say.

我們並沒有真正單獨說很多關於 Idelle Labs 的事情，但我可以說我們有存在感。

And generally -- this is Chris Carameros speaking -- we have a presence in Mexico, with a nice business with Ammens (indiscernible), and of course the new Brut brands.

總的來說——我是 Chris Carameros——我們在墨西哥有業務，與 Ammens（音頻不清晰），當然還有新的 Brut 品牌有良好的業務往來。

And we do have a presence in Germany with Final Net product, and to a limited extent in the UK with a little bit of the Final Net product along with Australia.

我們確實在德國有 Final Net 產品，在英國和澳大利亞也有少量 Final Net 產品。

So there is a good presence of Idelle outside the U.S.

因此，Idelle 在美國以外的市場佔有一席之地。

Just ballpark, is this is a 1 to $2 million business, or is it upwards of a quarter of the whole thing?

只是大概，這是一個 1 到 200 萬美元的業務，還是超過整個業務的四分之一？

You know, like --

你知道，就像——

It is in the, I would say, 15 to $18 million range.

我想說，它在 15 到 1800 萬美元的範圍內。

I mean -- okay.

我的意思是——好吧。

That's annually, right?

那是每年一次，對吧？

Right.

正確的。

Annually.

每年。

Secondly, on cash flow.

其次，關於現金流。

You talked a little bit about fiscal '05 going forward.

您談到了 05 財年的未來發展。

What are your capital expenditure expectations for fiscal '05?

您對 05 財年的資本支出預期是多少？

Have you got that hammered out yet?

你已經敲定了嗎？

This is Chris again.

這又是克里斯。

In our budgeting process we are going through we're in the 5 to $6 million range.

在我們的預算過程中，我們正在經歷 5 到 600 萬美元的範圍。

Ands if you're going to be -- I know you made that cash payment for the license agreement a year ago; anything like that on the horizon here, Chris?

如果你要——我知道你在一年前為許可協議支付了現金；克里斯，地平線上有類似的東西嗎？

I would say that we would have potentially maybe another $1 million payment, or 1 or $2 million payment; not significant, though.

我會說我們可能會再支付 100 萬美元，或者 1 或 200 萬美元；不過並不重要。

But nothing of the order of magnitude of last year?

但沒有去年的數量級？

(indiscernible) remember the ones that we pay, we don't have to pay, obviously, going forward.

（音頻不清晰）記住我們支付的那些，顯然，我們不必支付，繼續前進。

So we've actually prepaid, so our cash flow for the next two or three years is going to be pretty good because we've prepaid some of that expense.

所以我們實際上已經預付了，所以我們未來兩三年的現金流會非常好，因為我們已經預付了一些費用。

So that's an amortization now?

那現在是攤銷嗎？

Yes.

是的。

So what is the annual kind of D&A number if we're looking to next year?

那麼，如果我們期待明年，每年的 D&A 數字是多少？

About 5, 5 million.

大約五、五百萬。

(multiple speakers)

（多個揚聲器）

In line with capital spending.

符合資本支出。

Right.

正確的。

So you've got, even with all the cash outflows, the balance sheet still looks pretty conservative.

所以你有，即使有所有現金流出，資產負債表看起來仍然非常保守。

I'm just wondering, you know, it seems to me a pretty healthy free cash generator here.

我只是想知道，你知道，在我看來，這似乎是一個非常健康的免費現金生成器。

What do you plan to do with it?

你打算用它做什麼？

Any acceleration of the stock buyback, or build cash?

是否會加速股票回購或積累現金？

Well, we think that we should have somewhere around, 80, $85 million free cash for the next twelve months, besides what we have.

好吧，我們認為在接下來的十二個月裡，我們應該有大約 80、8500 萬美元的自由現金，除了我們擁有的。

We're looking at, certainly, all the alternatives.

當然，我們正在考慮所有替代方案。

We certainly will be buying back stock and looking for acquisitions.

我們當然會回購股票並尋求收購。

That 55 billion of debt is just -- that stays there?

那 550 億美元的債務只是——留在那裡？

Actually we started -- I believe the first year we started payment down at 10 million is in year 2005, our next fiscal year.

實際上我們開始了——我相信我們開始支付 1000 萬美元的第一年是在 2005 年，也就是我們的下一個財政年度。

Okay.

好的。

(indiscernible) in our Q; you'll see it.

（音頻不清晰）在我們的 Q 中；你會看到的。

We file our Q today, and you'll see that (indiscernible).

我們今天提交了我們的 Q，您會看到（音頻不清晰）。

Okay.

好的。

And on the business -- I wanted to save this for last, because Jerry, I would really like you to expand on the success you have had in the core Helen of Troy business.

關於業務——我想把它留到最後，因為傑里，我真的希望你擴大你在特洛伊海倫核心業務中取得的成功。

My experience has been year-in-year-out, despite the economic environment, it's been such a consistent, stable grower.

我的經歷年復一年，儘管經濟環境不佳，但它一直是一個始終如一、穩定的種植者。

And then here you have a quarter where it's up significantly from recent trends, and I would just like if you could elaborate and put a little more color on what types of products, what was really successful in this season?

然後在這裡，你有一個季度與最近的趨勢相比有顯著上升，我希望你能詳細說明並在哪些類型的產品上添加更多顏色，本季真正成功的是什麼？

As you know, we started last year off at the International Housewares show in Chicago in January, this year it will be in March, and we introduced, I don't know, 70 or 80 new products.

如您所知，我們從去年 1 月在芝加哥舉行的國際家庭用品展開始，今年將在 3 月，我們推出了 70 或 80 種新產品，我不知道。

And those products were placed in (indiscernible) starting in June/July.

這些產品從 6 月/7 月開始放置（音頻不清晰）。

And we saw the results of the sales in this last quarter, which was really our Christmas quarter, ending November 30th; that is when all our customers buy.

我們看到了最後一個季度的銷售結果，這實際上是我們的聖誕節季度，截至 11 月 30 日；那是我們所有客戶購買的時候。

You could just say it was across the board.

你可以說它是全面的。

Our Dr. Scholl's massager sold well, our Vidal Sassoon, our Revlon, Sunbeam products sold well.

我們Dr. Scholl的按摩器賣得很好，我們的Vidal Sassoon，我們的Revlon，Sunbeam的產品賣得很好。

We are a leader in the industry in ceramic and ionic products.

我們是陶瓷和離子產品行業的領導者。

And our professional business did very well.

我們的專業業務做得很好。

And of course, a lot of credit goes to the international division; they are doing very well in Europe, increasing sales.

當然，很多功勞都歸功於國際部門；他們在歐洲做得很好，增加了銷售額。

It's all based on new products, new technology that we have.

這一切都基於我們擁有的新產品和新技術。

We have a good group of new product development people and engineers here in the U.S. and in Hong Kong, and they did an excellent job this past year.

我們在美國和香港擁有一批優秀的新產品開發人員和工程師，他們在過去一年中表現出色。

This year, we are having our national sales meeting this week here in El Paso, and we'll be probably introducing at least that many products or more, also.

今年，我們本週將在埃爾帕索召開全國銷售會議，我們可能也會推出至少那麼多或更多的產品。

So that is why, you know -- we have a lot of new products, retailers are giving us more space and our products are selling better.

這就是為什麼，你知道——我們有很多新產品，零售商給了我們更多的空間，我們的產品賣得更好。

So we are increasing our market share.

所以我們正在增加我們的市場份額。

That is what I was going to ask you.

這就是我要問你的。

I guess the only unknown now, since your sales are to the Wal-Marts of the world and the big box retailers -- based on the data you have seen post-holiday, how do you think the sell-through went, just to gauge sort of what the inventories are at your bigger retailers?

我猜現在唯一的未知數，因為你的銷售對像是世界上的沃爾瑪和大型零售商——根據你在節後看到的數據，你認為銷售情況如何，只是為了衡量你的大型零售商的庫存是多少？

All the retailers based on POS.

所有基於 POS 的零售商。

They only buy what they sell; they don't overbuy.

他們只買他們賣的東西；他們不會過度購買。

And based on sales that we have seen since Christmas, our sales have been up at major retailers across the country.

根據我們自聖誕節以來看到的銷售情況，我們在全國主要零售商的銷售額一直在上升。

Thanks a lot.

多謝。

Very good quarter.

非常好的季度。

Joe Chandler, Stephens.

喬·錢德勒，斯蒂芬斯。

Thanks and congratulations on doubling your stock over the last year.

感謝並祝賀您的庫存在去年翻了一番。

Just a quick question on the North American segment.

只是關於北美部分的一個快速問題。

Was there any discounting going on in the quarter to retailers?

本季度是否有針對零售商的折扣活動？

Not on our part, no.

不是我們，不。

Okay.

好的。

(indiscernible) seems to be pretty steady.

（音頻不清晰）似乎非常穩定。

There's no price wars going on.

沒有價格戰在進行。

Okay.

好的。

And do you have the allowance for (indiscernible) accounts at quarter end, by chance?

您是否偶然在季度末獲得了（音頻不清晰）賬戶的津貼？

That will be in our Q that we're filing this afternoon.

這將在我們今天下午提交的 Q 中。

Okay.

好的。

Thank you.

謝謝。

I noticed over the holidays there were some Wal-Mart branded foot massagers at the Supercenters.

我注意到假期期間超市裡有一些沃爾瑪品牌的足部按摩器。

Could you just talk about home health and wellness and how that category is maybe experiencing some Wal-Mart sourced products, and if that's putting any pressure on the category?

您能否談談家庭健康和保健以及該類別可能如何體驗一些沃爾瑪採購的產品，以及是否對該類別造成任何壓力？

We do sell Wal-Mart a lot of wellness products from foot baths and massagers under the Dr. Scholl's brand.

我們確實在 Wal-Mart 出售許多健康產品，包括 Dr. Scholl 品牌的足浴和按摩器。

So we basically have the branded position at Wal-Mart and other retailers.

所以我們基本上在沃爾瑪和其他零售商處擁有品牌地位。

We also hopefully will announce in the next few weeks another brand, another major brand that we will have for the health and wellness category.

我們也希望在接下來的幾週內宣布另一個品牌，另一個我們將在健康和保健類別中擁有的主要品牌。

So we are very strong and getting stronger in that category.

因此，我們在該類別中非常強大並且越來越強大。

Okay.

好的。

I'm wondering also, your share price has gone up so much in the last year, and in your buying back stock it seems like almost it makes sense to issue stock instead and maybe do a sizable acquisition.

我也想知道，你的股價在去年上漲了這麼多，在你回購股票時，似乎發行股票而不是進行大規模收購似乎是有意義的。

Are there opportunities out there for you to do that?

你有機會這樣做嗎？

This is Chris Carameros speaking. (indiscernible) our balance sheet is way under leveraged, so we have a lot of borrowing power at this point in time.

我是克里斯·卡拉梅羅斯。 （音頻不清晰）我們的資產負債表槓桿率很低，所以我們此時有很多藉貸能力。

We still think and are very optimistic about the stock price as it is.

我們仍然認為並且對目前的股價非常樂觀。

You know, I understand your point; you can always go out and issue equity, but we have a lot of leverage within our own balance sheet.

你知道，我明白你的意思；你總是可以出去發行股票，但我們在自己的資產負債表中有很多槓桿。

And as Jerry mentioned to you before, with 85 to $85 million of cash flow, free cash flow, and a substantial amount of borrowing power, we should have excess cash besides what we're going to have on our balance sheet to be able to borrow with.

正如 Jerry 之前向您提到的那樣，擁有 85 到 8500 萬美元的現金流、自由現金流和大量的借貸能力，除了資產負債表上的現金外，我們還應該有多餘的現金，以便能夠借用。

So much of it (indiscernible) large acquisition, which we have traditionally not entertained but it is always possible.

這麼多（音頻不清晰）的大型收購，我們傳統上不接受，但它總是可能的。

I don't see an equity offering at this point in time.

我目前沒有看到股票發行。

When you see some of the larger consumer product companies like P&G and Unilever selling small categories, do you see them maybe looking to sell bigger pieces of business out there?

當您看到寶潔和聯合利華等一些較大的消費品公司銷售小品類時，您是否看到他們可能希望出售更大的業務？

Unilever actually offered a variety of different businesses for sale last year in an overall package, (indiscernible) houseware products along with some oral care products, and along with the Brut package that we bought.

聯合利華去年實際上以整體包裝的形式提供了多種不同的業務出售，（音頻不清晰）家庭用品產品以及一些口腔護理產品，以及我們購買的 Brut 包裝。

We obviously look for products that we think we can do well with within our existing structure and Idelle Labs management team, and along with our infrastructure we have here, (indiscernible) infrastructure, we're able account, bill, ship, and warehouse effectively to all the major retailers in the U.S.

我們顯然在尋找我們認為我們可以在現有結構和 Idelle Labs 管理團隊中做得很好的產品，以及我們在這裡擁有的基礎設施，（音頻不清晰）基礎設施，我們能夠有效地進行會計、賬單、運輸和倉庫到美國所有主要零售商

And to the extent that we can buy more products and put that through our same overhead base, that's why you're seeing some of the positive results that you will see in the last six months or nine months, and it hopefully will continue going forward.

就我們可以購買更多產品並將其通過我們相同的管理費用基礎而言，這就是為什麼你會看到你在過去六個月或九個月內看到的一些積極結果，並且希望它會繼續向前發展.

And that's part of the analysis we look at; size is significant, but also the ability to take (indiscernible) and utilize your existing overhead is also a significant item to increase earnings and margin.

這是我們所看到的分析的一部分；規模很大，但承擔（音頻不清晰）和利用現有管理費用的能力也是增加收入和利潤的重要項目。

Gary Giblen, CL King.

加里吉布倫，CL國王。

Did you take specific measures to reduce your inventory levels from the second quarter, or did that just happen because of strong sales and a more normal comparison versus last year, because it was getting beyond the longshoreman's strike and so forth?

您是否從第二季度開始採取了具體措施來降低庫存水平，或者只是因為銷售強勁以及與去年相比更正常的比較而發生，因為它已經超出了碼頭工人的罷工時間等等？

Gary, as I've always told on the conference calls every quarter, our inventory increases during the summer months because that's when our buildup of inventory -- it's because our third quarter is always our best quarter, which is September, October, November.

加里，正如我一直在每個季度的電話會議上所說的那樣，我們的庫存在夏季增加，因為那是我們增加庫存的時候——這是因為我們的第三季度始終是我們最好的季度，即 9 月、10 月、11 月。

In order to ship in September, October, November, most of that product has to be made during the summer months.

為了在 9 月、10 月、11 月發貨，大部分產品必須在夏季生產。

And that is why there's always a buildup and, of course, alarm a lot of people that our inventory is going up and our sales aren't there.

這就是為什麼總是有積壓，當然，這讓很多人擔心我們的庫存在增加，而我們的銷售卻沒有。

But that's going to happen every year.

但這種情況每年都會發生。

Third quarter, inventory goes down and the fourth quarter, inventory will go down.

第三季度，庫存下降，第四季度，庫存將下降。

We are projecting somewhere around 115 to $120 million worth of inventory, which we think is historically what we need to run the business going forward.

我們預計大約有 115 到 1.2 億美元的庫存，我們認為這在歷史上是我們未來經營業務所需要的。

The factories in China do close, as you know, for one month, which will start probably late January to late February.

如您所知，中國的工廠確實關閉了一個月，可能從一月下旬到二月下旬開始。

And we have to keep enough inventory to support all the major retailers.

我們必須保持足夠的庫存來支持所有主要零售商。

We are basically their warehouses; they buy from us every day, we ship to them every day, and they're looking for inventory turns.

我們基本上就是他們的倉庫；他們每天從我們這裡購買，我們每天向他們發貨，他們正在尋找庫存周轉率。

And as you know, we have won a lot of awards from major retailers because of inventory turns, delivery, and all the other things that we do for them.

如您所知，由於庫存周轉、交貨以及我們為他們所做的所有其他事情，我們贏得了主要零售商的許多獎項。

So you will always see the second quarter inventory higher, third quarter less, and then of course the fourth quarter will be the lowest.

所以你總是會看到第二季度庫存更高，第三季度庫存更少，然後當然第四季度會最低。

And that's the way it will be this y0ear also.

這也是今年的方式。

Thanks.

謝謝。

And on Tactica, are we closer to one month or six months away from divesting (indiscernible)?

在 Tactica 上，我們距離剝離（音頻不清晰）是接近一個月還是六個月？

This is Chris Carameros again, and again, we pursue every day the operations of the business.

我又是 Chris Carameros，我們每天都在追求業務的運作。

And that's why we're looking at -- you know, obviously we're pleased with reducing the loss.

這就是為什麼我們正在考慮 - 你知道，顯然我們很高興減少損失。

We're not happy with any kind of loss, but we are getting to that point where at least we are getting hopefully to the fourth quarter to a breakeven.

我們對任何形式的損失都不滿意，但我們已經到了這樣的地步，至少我們有希望在第四季度實現收支平衡。

But again, it's going to take several months, as Jerry said, to go through this as we have partners in this process.

但是，正如 Jerry 所說，這需要幾個月的時間才能完成，因為我們在此過程中有合作夥伴。

And what may be good for us may not be good for them.

對我們有利的可能對他們不利。

We have got to find a thing that is good for both of us together.

我們必須一起找到對我們雙方都有好處的事情。

And as we go through that process we will keep you updated.

在我們完成該過程時，我們會及時通知您。

So far have you had expressions of interest but you are apart on price?

到目前為止，你們有沒有表達過興趣，但你們在價格上有分歧？

Is that the status now?

現在是這個狀態嗎？

I don't really want to comment.

我真的不想發表評論。

I think I've said enough about that.

我想我已經說得夠多了。

Mimi Sokolowski, Sidoti & Co.

Mimi Sokolowski, Sidoti & Co.

I just have one real quick question.

我只有一個真正的快速問題。

I noticed that the current liability has picked up substantially, sequentially.

我注意到當前負債已連續大幅增加。

To what should I attribute that to?

我應該將其歸因於什麼？

I think you should attribute it to the (indiscernible) seasonality in our business.

我認為您應該將其歸因於我們業務中的（音頻不清晰）季節性。

The third quarter is the largest quarter and both our current assets and our current liabilities grew.

第三季度是最大的一個季度，我們的流動資產和流動負債都有所增長。

This is Chris speaking.

我是克里斯。

I think you can take -- a part of that is we are sourcing -- Idelle Labs within the USA, we can carry some payables on that.

我認為你可以——其中一部分是我們正在採購——美國的 Idelle Labs，我們可以為此支付一些款項。

And that is indicative of trying to source that inventory piece and that piece.

這表明試圖採購那個庫存件和那個件。

But an overall increase in the business, and there's nothing strange or unusual under that piece, but --

但是業務的整體增長，在這方面並沒有什麼奇怪或不尋常的，但是——

Also, we do have $21 million on our revolver still outstanding.

此外，我們的左輪手槍上確實還有 2100 萬美元未償還。

We have announced before when we did the Brut transaction, we borrowed 32 million; $21 million is in the current liabilities.

我們之前在做Brut交易的時候就已經公佈了，我們藉了3200萬；流動負債為 2100 萬美元。

As of today that number is down to $6 million.

截至今天，這個數字已降至 600 萬美元。

(indiscernible), Gates (ph) Capital.

（音頻不清晰），蓋茨 (ph) Capital。

Just had a question about a normalized tax rate.

只是有一個關於標準化稅率的問題。

What would it be if you excluded the Tactica credit?

如果您排除 Tactica 功勞會怎樣？

Again, Chris Carameros speaking.

再次，Chris Carameros 發言。

If you take a look at it, as I said last quarter, we are in accrual about in the 18 percent range.

如果你看一下，正如我上個季度所說，我們的應計利潤大約在 18% 的範圍內。

Mike Carlotti (ph), Palomar (ph) Capital.

Mike Carlotti (ph), Palomar (ph) Capital。

Just a couple of other balance sheet questions.

只是其他幾個資產負債表問題。

What was total debt including the 21 million in current debt?

包括 2100 萬流動債務在內的總債務是多少？

This is Tom Benson.

這是湯姆·本森。

The total debt, we have a 21 million piece at November 30th, and we also have 55 million long-term.

總債務，我們在 11 月 30 日有 2100 萬，還有 5500 萬長期。

And cash flow from operations for the quarter?

該季度的運營現金流量如何？

All that information will be in the Q that will be filed today.

所有這些信息都將在今天提交的 Q 中。

How about sales for Brut for the quarter; there were two months of sales?

本季度 Brut 的銷售額如何？有兩個月的銷售？

We do not specifically break out Brut.

我們沒有專門分解 Brut。

(OPERATOR INSTRUCTIONS).

（操作員說明）。

If there are no further questions, I will turn the conference back to Gerald Rubin to conclude.

如果沒有其他問題，我將把會議轉回杰拉爾德魯賓來結束。

Thank you, everyone, for listening in to our third quarter conference call and participating.

感謝大家收聽我們的第三季度電話會議並參與其中。

Our next one of course will be the fourth quarter and year end, which we will have after our February 29th fourth quarter ending.

我們的下一個當然是第四季度和年末，我們將在 2 月 29 日第四季度結束後進行。

I appreciate all the support that we get from everybody and look forward to talking to you at the next conference call.

我感謝大家對我們的支持，並期待在下一次電話會議上與您交談。

Thank you.

謝謝。

Ladies and gentlemen, if you wish to access the replay for this call you may do so by dialing 1-800-428-6051, or 973-709-2089, with an ID number of 321 679.

女士們，先生們，如果您想收聽此次通話的重播，可以撥打 1-800-428-6051 或 973-709-2089，ID 號碼為 321 679。

This concludes our conference call for today.

我們今天的電話會議到此結束。

Thank you all for participating and have a nice day.

感謝大家的參與，祝你有美好的一天。

All parties may now disconnect.

所有各方現在都可以斷開連接。