News Releases
For the Quarter, EPS of
Net revenues from continuing operations for the second fiscal quarter
were
Operating income from continuing operations for the second fiscal
quarter was
Income from continuing operations for the second fiscal quarter was
Total net income for the second quarter, including that related to the
discontinued operations, was
Earnings per share from continuing operations were
Commentary
“Overall we are pleased with the results of the second quarter and
remain cautiously optimistic for the balance of the year,” said
First Half of Fiscal 2010
Net revenues from continuing operations for the first six months of
fiscal 2010 were
Free Cash Flow and Debt Repayment
Free cash flow is a “non-GAAP” financial measure as that term is defined
by the
The Company’s free cash flow for the second quarter ended
The Company’s continued strong cash flow resulted in debt repayments of
Second Quarter Results by Segment
Net revenues for the
Net revenues for the Household Cleaning products segment were
Net revenues from continuing operations for the Personal Care segment
were
Conference Call
The Company will host a conference call to review its second quarter and
six month results on
About
The Company markets and distributes brand name over-the-counter
healthcare, personal care and household cleaning products throughout the
U.S.,
Forward-Looking Statements
This news release contains “forward-looking statements” within the
meaning of the federal securities laws and is intended to qualify for
the Safe Harbor from liability established by the Private Securities
Litigation Reform Act of 1995. “Forward-looking statements” generally
can be identified by the use of forward-looking terminology such as
“assumptions,” “target,” “guidance,” “outlook,” “plans,” “projection,”
“may,” “will," “would," “expect,” “intend,” “estimate,” “anticipate,”
”believe,” “potential,” “continue” (or the negative or other derivatives
of each of these terms) or similar terminology. The “forward-looking
statements” include, without limitation, statements regarding the
outlook for the Company’s market and the demand for its products, future
revenues, future debt retirement and our ability to manage costs and
expenses, including those associated with interest rate risk. These
projections and statements are based on management’s estimates and
assumptions with respect to future events and financial performance and
are believed to be reasonable, though are inherently uncertain and
difficult to predict. Actual results could differ materially from those
projected as a result of certain factors. A discussion of factors that
could cause actual results to vary is included in the Company’s Annual
Report on Form 10-K and other periodic reports filed with the
Prestige Brands Holdings, Inc. |
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Consolidated Statements of Operations |
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(Unaudited) |
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Three Months Ended September 30 |
Six Months Ended September 30 |
|||||||
(In thousands, except share data) | 2009 | 2008 | 2009 | 2008 | ||||
Revenues | ||||||||
Net sales | $ 83,737 | $ 84,858 | $ 154,133 | $ 155,237 | ||||
Other revenues | 444 | 682 | 1,060 | 1,300 | ||||
Total revenues | 84,181 | 85,540 | 155,193 | 156,537 | ||||
Cost of Sales | ||||||||
Cost of sales | 39,847 | 40,402 | 73,029 | 73,309 | ||||
Gross profit | 44,334 | 45,138 | 82,164 | 83,228 | ||||
Operating Expenses | ||||||||
Advertising and promotion | 9,782 | 13,543 | 18,547 | 20,780 | ||||
General and administrative | 10,481 | 9,363 | 18,675 | 17,336 | ||||
Depreciation and amortization | 2,841 | 2,308 | 5,186 | 4,615 | ||||
Total operating expenses | 23,104 | 25,214 | 42,408 | 42,731 | ||||
Operating income | 21,230 | 19,924 | 39,756 | 40,497 | ||||
Other (income) expense | ||||||||
Interest income | - | (56) | - | (129) | ||||
Interest expense | 5,642 | 6,835 | 11,295 | 15,591 | ||||
Total other (income) expense | 5,642 | 6,779 | 11,295 | 15,462 | ||||
Income from continuing operations before income taxes |
15,588 |
13,145 |
28,461 |
25,035 |
||||
Provision for income taxes | 5,908 | 4,982 | 10,787 | 9,488 | ||||
Income from continuing operations | 9,680 | 8,163 | 17,674 | 15,547 | ||||
Discontinued Operations | ||||||||
Income from operations of assets held for sale, net of income tax |
243 |
359 |
574 |
756 |
||||
Net income | $ 9,923 | $ 8,522 | $ 18,248 | $ 16,303 | ||||
Basic earnings per share: | ||||||||
Income from continuing operations | $ 0.19 | $ 0.16 | $ 0.35 | $ 0.31 | ||||
Net income | $ 0.20 | $ 0.17 | $ 0.36 | $ 0.33 | ||||
Diluted earnings per share: | ||||||||
Income from continuing operations | $ 0.19 | $ 0.16 | $ 0.35 | $ 0.31 | ||||
Net income | $ 0.20 | $ 0.17 | $ 0.36 | $ 0.33 | ||||
Weighted average shares outstanding: | ||||||||
Basic | 50,012 | 49,924 | 49,997 | 49,902 | ||||
Diluted | 50,055 | 50,037 | 50,080 | 50,036 |
Prestige Brands Holdings, Inc. |
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Consolidated Balance Sheets |
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(Unaudited) |
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(In thousands) |
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Assets |
September 30, 2009 |
March 31, 2009 |
||||
Current assets | ||||||
Cash and cash equivalents | $ | 34,829 | $ | 35,181 | ||
Accounts receivable | 39,152 | 36,025 | ||||
Inventories | 24,955 | 25,939 | ||||
Deferred income tax assets | 5,362 | 4,022 | ||||
Prepaid expenses and other current assets |
2,460 | 1,358 | ||||
Inventories of operations held for sale | 1,535 | 1,038 | ||||
Total current assets | 108,293 | 103,563 | ||||
Property and equipment | 1,291 | 1,367 | ||||
Goodwill | 114,240 | 114,240 | ||||
Intangible assets | 564,259 | 569,137 | ||||
Other long-term assets | 3,646 | 4,602 | ||||
Intangible assets of operations held for sale | 7,574 | 8,472 | ||||
Total Assets | $ | 799,303 | $ | 801,381 | ||
Liabilities and Stockholders’ Equity |
||||||
Current liabilities | ||||||
Accounts payable | $ | 21,444 | $ | 15,898 | ||
Accrued interest payable | 5,360 | 5,371 | ||||
Other accrued liabilities | 17,951 | 9,407 | ||||
Current portion of long-term debt | 3,550 | 3,550 | ||||
Total current liabilities | 48,305 | 34,226 | ||||
Long-term debt | 334,787 | 374,787 | ||||
Deferred income tax liabilities | 103,231 | 97,983 | ||||
Total Liabilities | 486,323 | 506,996 | ||||
Stockholders’ Equity |
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Preferred stock - $0.01 par value | ||||||
Authorized - 5,000 shares | ||||||
Issued and outstanding - None | ||||||
Common stock - $0.01 par value | ||||||
Authorized - 250,000 shares | ||||||
Issued - 50,154 shares at September 30, 2009 and 50,060 shares at March 31, 2009 |
502 | 501 | ||||
Additional paid-in capital | 382,790 | 382,803 | ||||
Treasury stock, at cost - 124 shares at September 30, 2009 and March 31, 2009 |
(63) |
(63) |
||||
Accumulated other comprehensive loss |
(975) |
(1,334) |
||||
Retained deficit |
(69,274) |
(87,522) |
||||
Total stockholders’ equity | 312,980 | 294,385 | ||||
Total Liabilities and Stockholders’ Equity | $ | 799,303 | $ | 801,381 |
Prestige Brands Holdings, Inc. |
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Consolidated Statements of Cash Flows |
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(Unaudited) |
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Six Months Ended September 30 | ||||
(In thousands) | 2009 | 2008 | ||
Operating Activities | ||||
Net income | $ 18,248 | $ 16,303 | ||
Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization | 6,084 | 5,513 | ||
Deferred income taxes | 3,687 | 5,042 | ||
Amortization of deferred financing costs | 956 | 1,159 | ||
Stock-based compensation | 848 | 1,577 | ||
Changes in operating assets and liabilities | ||||
Accounts receivable | (3,127) | 1,725 | ||
Inventories | 984 | 4,011 | ||
Inventories held for sale | (497) | 313 | ||
Prepaid expenses and other current assets | (1,102) | (828) | ||
Accounts payable | 5,546 | (1,582) | ||
Accrued liabilities | 8,253 | 3,443 | ||
Net cash provided by operating activities | 39,880 | 36,676 | ||
Investing Activities | ||||
Purchases of equipment | (232) | (109) | ||
Business acquisition purchase price adjustments | - | (4,000) | ||
Net cash used for investing activities | (232) | (4,109) | ||
Financing Activities | ||||
Repayment of long-term debt | (40,000) | (26,000) | ||
Purchase of common stock for treasury | - | (15) | ||
Net cash used for financing activities | (40,000) | (26,015) | ||
Increase (Decrease) in cash | (352) | 6,552 | ||
Cash - beginning of period | 35,181 | 6,078 | ||
Cash - end of period | $ 34,829 | $ 12,630 | ||
Interest paid | $ 10,350 | $ 14,775 | ||
Income taxes paid | $ 6,307 | $ 4,761 |
|
Three Months Ended September 30, 2009 |
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|
Over-the-Counter |
Household |
Personal |
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|
Healthcare |
Cleaning |
Care |
Consolidated |
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(In thousands) |
||||||||||||
Net sales | $ | 51,368 | $ | 28,602 | $ | 3,767 | $ | 83,737 | ||||
Other revenues |
|
9 |
411 | 24 | 444 | |||||||
Total revenues | 51,377 | 29,013 | 3,791 | 84,181 | ||||||||
Cost of sales | 19,217 | 18,483 | 2,147 | 39,847 | ||||||||
Gross profit | 32,160 | 10,530 | 1,644 | 44,334 | ||||||||
Advertising and promotion | 7,378 | 2,285 | 119 | 9,782 | ||||||||
Contribution margin | $ | 24,782 | $ | 8,245 | $ | 1,525 | 34,552 | |||||
Other operating expenses | 13,322 | |||||||||||
Operating income | 21,230 | |||||||||||
Other (income) expense | 5,642 | |||||||||||
Provision for income taxes | 5,908 | |||||||||||
Income from continuing operations | 9,680 | |||||||||||
Income from discontinued operations | ||||||||||||
(assets held for sale), net of income tax | 243 | |||||||||||
Net income | $ | 9,923 |
Six Months Ended September 30,2009 |
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|
Over-the-Counter |
|
Household |
|
Personal |
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|
Healthcare |
|
Cleaning |
|
Care |
|
Consolidated |
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(In thousands) |
||||||||||||
Net sales | $ | 91,640 | $ | 55,443 | $ | 7,050 | $ | 154,133 | ||||
Other revenues | 20 | 1,017 | 23 | 1,060 | ||||||||
Total revenues | 91,660 | 56,460 | 7,073 | 155,193 | ||||||||
Cost of sales | 32,745 | 36,284 | 4,000 | 73,029 | ||||||||
Gross profit | 58,915 | 20,176 | 3,073 | 82,164 | ||||||||
Advertising and promotion | 14,118 | 4,204 | 225 | 18,547 | ||||||||
Contribution margin | $ | 44,797 | $ | 15,972 | $ | 2,848 | 63,617 | |||||
Other operating expenses | 23,861 | |||||||||||
Operating income | 39,756 | |||||||||||
Other (income) expense | 11,295 | |||||||||||
Provision for income taxes | 10,787 | |||||||||||
Income from continuing operations | 17,674 | |||||||||||
Income from discontinued operations | ||||||||||||
(assets held for sale), net of income tax | 574 | |||||||||||
Net income | $ | 18,248 |
|
|
Three Months Ended September 30, 2008 |
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|
Over-the-Counter |
Household |
Personal |
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|
Healthcare |
Cleaning |
Care |
Consolidated |
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(In thousands) |
||||||||||||
Net sales | $ | 50,318 | $ | 31,482 | $ | 3,058 | $ | 84,858 | ||||
Other revenues | 24 | 658 | -- | 682 | ||||||||
Total revenues | 50,342 | 32,140 | 3,058 | 85,540 | ||||||||
Cost of sales | 17,567 | 20,937 | 1,898 | 40,402 | ||||||||
Gross profit | 32,775 | 11,203 | 1,160 | 45,138 | ||||||||
Advertising and promotion | 10,654 | 2,731 | 158 | 13,543 | ||||||||
Contribution margin | $ | 22,121 | $ | 8,472 | $ | 1,002 | 31,595 | |||||
Other operating expenses | 11,671 | |||||||||||
Operating income | 19,924 | |||||||||||
Other (income) expense | 6,779 | |||||||||||
Provision for income taxes | 4,982 | |||||||||||
Income from continuing operations | 8,163 | |||||||||||
Income from discontinued operations | ||||||||||||
(assets held for sale), net of income tax | 359 | |||||||||||
Net income | $ | 8,522 |
|
Six Months Ended September 30, 2008 |
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|
Over-the-Counter |
Household |
Personal |
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|
Healthcare |
Cleaning |
Care |
Consolidated |
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(In thousands) |
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Net sales | $ | 89,564 | $ | 59,886 | $ | 5,787 | $ | 155,237 | ||||
Other revenues | 24 | 1,276 | -- | 1,300 | ||||||||
Total revenues | 89,588 | 61,162 | 5,787 | 156,537 | ||||||||
Cost of sales | 30,775 | 38,860 | 3,674 | 73,309 | ||||||||
Gross profit |
58,813 |
22,302 |
2,113 | 83,228 | ||||||||
Advertising and promotion | 15,691 | 4,801 | 288 | 20,780 | ||||||||
Contribution margin | $ | 43,122 | $ | 17,501 | $ | 1,825 | 62,448 | |||||
Other operating expenses | 21,951 | |||||||||||
Operating income | 40,497 | |||||||||||
Other (income) expense | 15,462 | |||||||||||
Provision for income taxes | 9,488 | |||||||||||
Income from continuing operations | 15,547 | |||||||||||
Income from discontinued operations | ||||||||||||
(assets held for sale), net of income tax | 756 | |||||||||||
Net income | $ | 16,303 |
Source:
Prestige Brands Holdings, Inc.
Dean Siegal, 914-524-6819