IRVINGTON, N.Y., May 13, 2010 (BUSINESS WIRE) --Prestige Brands Holdings, Inc.(NYSE: PBH) today reported results for the fourth fiscal quarter and fiscal year ended March 31, 2010.

Revenues for the fourth fiscal quarter were $71.4 million, which were $2.8 million, or 4% greater than the fourth quarter of fiscal 2009. These results reflect revenue increases in the over-the-counter healthcare and household cleaning products segments, and a decline in the personal care products segment. Contributing to the over-the-counter healthcare results was an increase in other revenues which reflects royalty revenue received as a result of a legal settlement.

Reported net income for the fourth fiscal quarter was $3.3 million, or $0.07 per diluted share, compared to a loss of $211.1 million or ($4.22) per diluted share in the prior year comparable quarter. Excluding charges for the impairment of intangible assets and loss on extinguishment of debt, net income (adjusted) would have been $7.4 million or $0.15 per diluted share during the 2010 fourth quarter compared to $9.0 million or $0.18 per diluted share in the prior year comparable period. Net income (adjusted) is a "non-GAAP financial measure." A table is included with the financial statements at the end of this news release which reconciles net income (adjusted) to net income, the most directly comparable measure presented in accordance with generally accepted accounting principles.

The decline in net income (adjusted) from 2009 to 2010 was primarily due to increased advertising and promotion (A&P) and general and administrative (G&A) expenses.

Commenting on the results, Matthew Mannelly, President and CEO said, "We are pleased with our revenue growth for the fourth quarter. Our results reflect our commitment to investing in, and growing our core OTC brands. Our focus will continue to be against these core brands as we build upon the fourth quarter momentum in fiscal year 2011. In addition, we successfully completed our debt refinancing which we expect to provide us with ample liquidity through 2018, and additional borrowing capacity should an appropriate acquisition opportunity arise."

Results by Segment for Fourth Fiscal Quarter

Over-The-Counter Healthcare

Net revenues for the OTC segment were $42.6 million, $2.8 million or 7% greater than the prior year comparable period. Net sales were $39.5 million, 1% below last year's net sales of $39.8 million. Increases in sales of Clear Eyes(R), Murine(R), Compound W(R), Dermoplast(R) and The Doctor's(R) NightGuard(TM) were offset by sales declines in Chloraseptic(R), Little Remedies(R), and the Allergen Block products. Other revenue increased compared to the prior year due to the favorable outcome of a legal dispute.

Household Cleaning Products

This segment reported net revenues of $27.0 million, $300 thousand greater than the prior year comparable period. Sales increases in the Spic and Span(R) and Chore Boy(R) brands were offset by a slight decline in the Comet(R) brand.

Personal Care Products

Net revenues for the personal care segment were $1.8 million, $300 thousand or 14% below last year's fourth fiscal quarter. The sales decline was primarily due to decreases in sales of Cutex(R).

Fiscal Year 2010

The Company reported total revenues of $302.0 million for the fiscal year ended March 31, 2010, slightly below fiscal 2009 total revenues of $303.1 million. Reported net income of $32.1 million, or $0.64 per diluted share for 2010, compared to a loss of $186.8 million, or ($3.74) per diluted share in 2009. Excluding charges for the impairment of intangible assets and loss on extinguishment of debt, and the effects of an increase in deferred tax liabilities related to the divestiture of the shampoo brands, net income (adjusted) was $37.2 million or $0.74 per diluted share in 2010, compared to $33.3 million or $0.67 per diluted share during 2009. Net income (adjusted) is a "non-GAAP financial measure." A table is included with the financial statements at the end of this news release which reconciles net income (adjusted) to net income, the most directly comparable measure presented in accordance with generally accepted accounting principles.

Free Cash Flow

Free cash flow is a "non-GAAP financial measure" and is presented here because management believes it is a commonly used measure of liquidity, indicative of cash available for debt repayment and acquisitions. The company defines "free cash flow" as operating cash flow minus capital expenditures.

The company's free cash flow for the fourth quarter ended March 31, 2010 was $8.7 million, a decrease of 34% from free cash flow of $13.2 million in the fourth fiscal quarter of 2009. The decrease in free cash flow is largely a result of payment of interest incurred by early retirement of certain debt in connection with the company's recent refinancing and an increase in corporate tax receivables. For fiscal year 2010, free cash flow totaled $58.7 million, composed of operating cash flow of $59.4 million minus capital expenditures of $0.7 million. This compared to free cash flow of $66.2 million for fiscal year 2009, composed of operating cash flow of $66.7 million less capital expenditures of $0.5 million.

Conference Call

The Company will host a conference call today at 8:30 a.m. EDT. To access the call, listeners calling from within North America may dial 866-730-5764 at least 15 minutes prior to the start of the call. To access the call from outside North America, callers should dial 857-350-1588. The conference passcode is "prestige". The Company will provide a live internet webcast as well as an archived replay, which can be accessed from the Investor Relations page of http://prestigebrandsinc.com. Telephonic replays will be available for two weeks following the completion of the call and can be accessed at 888-286-8010 within North America, and at 617-801-6888 from outside North America. The passcode is 98000111.

About Prestige Brands Holdings, Inc.

Located in Irvington, New York, Prestige Brands Holdings, Inc. is a marketer and distributor of brand name over-the-counter healthcare, household and personal care products sold throughout the U.S., Canada and certain international markets. Key brands include Compound W(R) wart remover, Chloraseptic(R) sore throat and allergy treatment, New-Skin(R) liquid bandage, Clear Eyes(R) and Murine(R) eye and ear care products, The Doctor's(R) NightGuard(TM) dental protector, Little Remedies(R) pediatric over-the-counter products, Cutex(R) nail polish remover, Comet(R) and Spic and Span(R) household products, and other well-known brands.

Forward-Looking Statements

Note: This news release contains "forward-looking statements" within the meaning of the federal securities laws and that are 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," or "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 liquidity and borrowing capacity of Prestige Brands Holdings. These 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 expected as a result of a variety of factors. A discussion of factors that could cause results to vary is included in the Company's Annual Report on Form 10-K and other periodic and other reports filed with the Securities and Exchange Commission.

SOURCE: Prestige Brands Holdings, Inc.

Prestige Brands Holdings, Inc.
Dean Siegal, 914-524-6819